Assemblyman Fred W. Thiele, Jr. (I, D, WF-Sag Harbor) announced that, in an effort to reduce the ability of deep-pocketed special interests to make nearly unlimited campaign donations, the Assembly passed legislation that would make limited liability corporations (LLCs) subject to the same contribution limits as other corporations (A.6975-B).

“Currently, LLCs provide a loophole for special interests to make unlimited political donations that drown out the voices of ordinary voters,” said Assemblyman Thiele. “Closing this loophole will prevent the rich and powerful from evading contribution limits and unfairly buying influence and access.”

Under existing election law, individuals and corporations can make multiple contributions to the same candidate, political party or campaign committee by creating an unlimited number of LLCs. The law treats each LLC as an individual donor, even though more than one LLC can be controlled by the same individual. This makes it extremely difficult to determine the true contributor. Further, the Supreme Court’s 2014 ruling in McCutcheon v. FEC removed aggregate limits on individual donations, effectively allowing LLCs to make unlimited political contributions.

The Assembly’s legislation would bring LLCs in line with other corporations by creating a uniform law that restricts LLCs to the same $5,000 aggregate contribution limit. This would increase transparency in elections and accountability in government by protecting against individuals contributing above the legal limits.

“Big money campaign contributions have a corrosive effect on our electoral system and can have a corrupting influence on our government,” Thiele said. “Candidates chasing large donations from well-heeled contributors looking for special access or influence are less able to represent all of their constituents. Our democracy will only suffer as a result. The Assembly’s legislation helps ensure that everyone is playing by the same rules when it comes to political contributions.”