It’s time to dismiss any pretense that Gov. Kathy Hochul is a friend of open government, especially after her latest action regarding the LLC Transparency Act.
The Act would have required public disclosure of the “beneficial owners” of Limited Liability Companies (LLCs).
The owners hide behind a gap in existing law that allows their identities to remain secret, even as they use their money and influence to support government officials, promote political campaigns and exceed campaign contribution limits; operate facilities regulated by the government like nursing homes and rehabilitation centers; violate building codes; launder money, discriminate against tenants and even support terrorist groups.
With their identities secret, these beneficial owners and the officials they target with their money can operate without public scrutiny from lawmakers, journalists, good government groups and the general public.
So state lawmakers passed the LLC Transparency Act, which would have mandated the creation of a searchable public database containing the names of the owners. That would have allowed anyone to check up on their activity with a simple internet search.
Last week, right before New Year’s weekend, the governor signed the bill.
Awesome right? Not at all.
What she signed was a modified version of the bill that eliminates the mandate for a public database and limits disclosure of LLC ownership to law enforcement and government officials looking into possible illegal activity.
By protecting the identities of these LLC owners from public disclosure, the governor stripped the word “Transparency” right out of the legislation. And in doing so, she deprived citizens of vital information.
And for what? Law enforcement officials investigating crimes can get access to this information now. And do you really trust this information in the hands of government officials - the very people vulnerable to influence?
The only way we’ll find out any thing about these business owners’ activities is if prosecutors decide to release it.
Remember, not all unethical conduct is illegal. Not all connections to politicians are necessarily crimes. The public has a right to decide for itself whether these LLC owners’ actions and that of the people they’re trying to influence is unethical or inappropriate.
The ultimate fate of the LLC Transparency Act is a travesty, in that it does absolutely nothing to make government more transparent.
Hochul: a friend of open government? Please.