Closing New York's LLC Loophole

In July 2015, the Brennan Center and Emery Celli Brinckheroff & Abady LLP, on behalf of several former and current state legislators and other plaintiffs, filed suit against the New York State Board of Elections (BOE) to close the state’s infamous “LLC Loophole.” Since being created by the BOE in 1996, the Loophole has allowed special interest groups to funnel tens of millions of dollars into political campaigns, sometimes in secret, circumventing both contribution limits and disclosure requirements. The BOE’s justification for creating the Loophole was a since-changed federal law treating LLCs as individuals rather than corporations or partnerships. Relevant state law in fact makes clear that LLCs should not be treated as individuals, meaning the loophole should be closed. In April the BOE had an opportunity to close the Loophole, but deadlocked at a 2-2 vote, perpetuating the rule and preventing reform. The Center's suit challenges that decision.

Six groups sent a letter to New York Gov. Cuomo urging him to support efforts to close the "LLC Loophole," which allows large donors to circumvent contribution limits and disclosure requirements.

In a letter to the New York Board of Elections, the Brennan Center for Justice and the law firm Emery Celli Brinckerhoff & Abady LLP called for the closure of a loophole that allows corporations and individuals to bypass campaign limits and donate millions of dollars in state elections.

Lawrence Norden joined New York 1 to discuss a recent letter the Brennan Center submitted to the New York state Board of Elections urging them to take action on what's commonly referred to as the LLC loophole.