A coalition of good-government advocates and State lawmakers has filed a lawsuit challenging the State's "LLC loophole," which allows political contributors to flout campaign-contribution limits by opening multiple limited liability companies.
The lawsuit, led by the Brennan Center for Justice and New York City-based law firm Emery Celli Binckerhoff & Abady LLP, challenges the State Board of Elections' deadlock in April when it was petitioned to reconsider how LLCs are viewed by the board.
The Board of Elections counts each LLC as an individual, which subjects it to a higher political contribution limit than those placed on corporations. Each LLC is treated as an independent entity, even if it was opened by the same person or business.
Practically speaking, the plaintiffs, which include SUNY New Paltz Professor Gerald Benjamin and five current and former lawmakers, are looking to overturn the loophole, which allows wealthy donors to easily exceed the state's contribution limits.
The lawsuit is filed as an Article 78 claim, which is the mechanism in State Court used to challenge an official action or decision by a State Agency.
Technically speaking, the lawsuit challenges the Board of Elections' split in April when it was asked to reconsider its 1994 opinion on how to treat LLCs. The four-member board deadlocked 2-2 on April 16 when asked to revisit the LLC classification, with the board's Democrats voting in favor of it and its Republicans opposing it.
Among the lawmakers involved in the effort are Sen. Daniel Squadron and Assemblyman Brian Kavanagh, New York City Democrats who have sponsored legislation that would reclassify LLCs. Others include former State Sen. John Dunne, a Long Island Republican.
CLICK HERE to read the court documents.
NYC Wins When Everyone Can Vote! Michael H. Drucker
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