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LWVNYS STATE/ PROGRAM/ BLOG

The Local Program Positions for the LWVNYS well as the LWVNYS links and blog.

NYS Campaign Finance System: Closing the LLC Loophole

New York State's Campaign Finance System and Closing the LLC Loophole
LLCs are Limited Liability Corporations.

reprinted from the LWV Buffalo Niagara Voter

Companies create LLCs for many business reasons. But for some companies one reason alone is paramount + the ability to pour huge amounts of money into the coffers of candidates, elected officials, and political parties, frequently without revealing the names of the donors.

In 1996 the New York State Board of Elections decided to treat LLCs as "individuals" under the state's campaign finance laws, with spectacular results. When considered as a corporation, as under federal law, an LLC could contribute up to $5,000 to an elected official, political party, or a candidate running for office; but when considered as an individual under NYS law, an LLC could contribute up to $60,800! If this was not a sufficient pot of campaign money to make recipients happy, corporations and businesses could create any number of LLCs, each with the same outrageously high contribution limit. Each additional LLC is then given a different name and the names of the original donors remain hidden.

LLCs are equal opportunity donors. All political parties, candidates and elected officials benefit from the seemingly endless generosity of LLCs.

In 2015 Glenwood Management, a huge real estate company that figured prominently in the criminal corruption trial of former Assembly Speaker Sheldon Silver, created 22 separate LLCs, each with the ability to contribute the maximum amount to favored candidates and political parties. Another state corruption investigation that originated almost a decade ago, involving the Buffalo Billion, is unfolding now and demonstrates again how the LLC loophole works to benefit both donors and recipients at the public's expense.

We know from our Money In Politics study that quid pro quo corruption is difficult to prove. A wink and a nod can convey the intended message when money changes hands. Citizens are rightly suspicious when legislative favors are granted to certain interests and when constituent-supported legislation is defeated over and over or not even discussed in committee. The LLC loophole exemplifies a government failure in both fairness and transparency. Closing it is the goal of the League, of other reform groups and of many government officials.

Closing the LLC loophole through state legislation. In 2015 the New York State Assembly, with broad bipartisan support, passed legislation to close the loophole but the bill died in the Senate Corporations Committee chaired by Michael Ranzenhofer (Amherst).

This year the legislation has been reintroduced. The League strongly supports A.9758A (Simon) and S.27149 (Kavanagh) which will lower contribution limits to the federal level of $5,000 and require donor disclosure. The League urges members to call and write their legislators in support of the legislation + better still, come with us when we visit legislators in March and April 2018. Passage will occur only when enough citizens are alert to the problem and determined to correct it.

NY State League President Dare Thompson wrote, "Closing the LLC loophole is an obvious and long overdue fix to limit contributions by special interests and help end `dark money' in our electoral system. This one small step is just one of many reforms needed to reduce corruption in Albany."

Janet Massaro, Chair

Regional Training Meeting

League of Women Voters of NYS Regional Training Meeting March 17, 2018

The League of Women Voters of NYS invites all members to come to regional training workshops. All members are invited to attend any or all of the workshops. All local Leagues board members are strongly encouraged to attend at least part of the day. Lunch will be provided and will allow for informal networking among the attendees (no program). There is a $20 charge to cover other expenses.

March 17, 10:00-3:00, Unitarian Church of Schenectady, 1221 Wendall Ave, Schenectady, NY 12308)

Tentative Workshop Topics

  • Moderating Candidate Forums
  • Creatively Managing Your Local League
  • Getting your Members Active on Issues
  • Motivating Voters to Vote
  • Engaging Youth in Our Democracy
  • Social Media & Apps for Engaging New Members and the Public
  • Becoming a Player in Your Community: Observer Corps, Hot Topics & Collaboration
  • Raising Funds & Having Fun
  • Making the Most of Voter Service Activities
  • Civic Education & Engagement for Students & Communities

Register online

Or download and complete the registration form

Send completed form and $20 check: League of Women Voters of NYS 62 Grand St, Albany, NY 12207

The Power of Awareness

"Empowering All Through Education"

The League of Women Voters of New York State Education Foundation is the educational and fund-raising arm of The League of Women Voters of New York State which derives its strength from the energy and commitment of the women and men in about 60 local Leagues throughout the state. It is strictly nonpartisan, and works primarily on projects that enlighten the electorate i.e., empower through education.

The charitable support of individual people, corporations and foundations throughout New York State help us accomplish three central missions:

  • Educate people on the importance of their participation in government, in the political process and, most importantly, in the life of their home community.
  • Create awareness of the issues at the local, state and national levels and what average citizens can do to have an impact on their government.
  • Instill in young people and new citizens the knowledge of their role and responsibilities in managing their own government.

About the LWVNYS Education Foundation (EF)

Throughout its history the Foundation has produced and distributed nonpartisan, educational materials; funded activities which promote citizen responsibility in the democratic process; and facilitated communication between citizens and their government officials. It has a strong commitment to young people and to the promise of the continued success of democracy.

The League of Women Voters of New York State Education Foundation (LWVNYSEF) was established in 1950 as the Foundation for Citizen Education (FCE) to support the educational activities of the League of Women Voters of New York State. It is incorporated under the Not-for-Profit Corporation Law of New York and is classified as a public educational charitable organization under Section 501(c)(3) of the Internal Revenue Code. The Foundation is dedicated exclusively to the support and promotion of the educational programs of the League of Women Voters in New York State.

Give to LWVNYS Education Foundation Make a tax-deductible contribution to the Education Foundation using your credit card. If you prefer to write a check, please make them payable to the LWVNYS Education Foundation. If you have any questions, feel free to call the state League office directly at 518-465-4162.

League of Women Voters of New York State

Capitol Beat Blog

The League of Women Voters of NYS is pleased to announce the return of "Capitol Beat." This informative and entertaining column, written by the LWVNYS Legislative Director Barbara Bartoletti will contain legislative updates about League issues, as well as political gossip. We will also outline the budget and of course, will chronicle the always-lively end of session. We have created a blog page for "Capitol Beat" on our League website, and we welcome your comments posted on this blog page. We have also linked the Legislative Calendar so you have all the dates of the legislative session. So, check out the blog and continue to watch it for updates - we hope to keep it lively and current. Get all the latest legislative info right on our website and blog!