Sen. Brad Hoylman wants to disclose owners of state LLCs

ALBANY — A Manhattan state senator wants to close a loophole that allows certain companies to shield the identities of those behind them.

Democrat State Sen. Brad Hoylman Monday said he will introduce the bill after a Wall Street Journal report found that about $300 million reported in a financial disclosure form filed by President Trump in 2016 came from assets held by 96 secretive limited liability companies.

"In the face of mounting investigations related to Trump's ties to Russia and near-daily revelations about potential impropriety by members of his administration, it's critical that we untangle the secret web of Trump's hidden business interests," Hoylman said. "This legislation will help accomplish that goal."

Hoylman's bill would require that LLCs created or doing business in New York disclose the names and current residential or business addresses of their “beneficial owners.”

It would also mandate that the state Department of State create a public database of registered LLCs and their owners. And the bill would make it a crime, with penalties of up to three years in prison and up to $10,000 in fines, to knowingly provide false or outdated LLC information.

"LLCs have operated in near total darkness for too long, and my legislation would shine a badly needed light on them,” Hoylman said. “For the super-rich, these shell companies can be used as a convenient way to move vast sums of money without detection.”

Government reform groups in New York have long sought to close what is known as the LLC loophole that allows corporations to skirt campaign financial restrictions by creating multiple limited liability companies that have significantly higher campaign donation limits.

Gov. Cuomo, the largest individual beneficiary from LLCs in the state, has called for the loophole’s closure, though critics complain that he has not pushed hard for it.

The Republican-led Senate has not acted on any LLC-reform bills. It’s not likely the chamber will start with Hoylman’s bill, insiders say.

A Senate GOP spokesman had no comment.

It’s not the first time Hoylman has introduced a bill directed at Trump.

He previously announced a measure that would require the state tax department to release five years of state tax returns filed in New York by those seeking major offices like the presidency, governor and state attorney general.

Trump during last year’s campaign refused to release his taxes, a standard practice of presidential candidates.

The measure did not pass the Senate.