GOP gubernatorial candidate Marc Molinaro is willing to do something his fellow Republicans in the state Legislature won’t: ban the “pay-to-play” loophole in state law that allows corporate titans to pump millions of dollars into campaign coffers.
Molinaro’s “2019 Accountability Act” would eliminate the law that allows big developers and other firms to make virtually unlimited donations through separate limited liability corporations or LLCs — often subsidiaries or shell companies — to get around $5,000 campaign contribution limits.
“The LLC loophole has allowed nearly unfettered donations from powerful interests and created an environment ripe for corruption. Scandal after scandal involve groups who use said loophole to curry favor with political leaders. 2018, the year of public corruption trials, has been chock full of examples of the negative impact of the LLC loophole,” Molinaro said.
He pointed out the example of Glenwood Management, the development firm that funneled $10 million to politicians since 2005 through 26 different LLCs.
“The development firm and its head Leonard Litwin, highlighting the nexus between LLC giving and corruption, popped up in the retrials of former Senate Majority Leader Dean Skelos and Former Assembly Speaker Sheldon Silver,” Molinaro said.
“Mr. Litwin was named as a co-conspirator in the original Skelos’ trial and was one of two developers Silver was involved with in a clear pay-to-play scheme involving pushing business to law firms for a fee in exchange for supporting legislation critical to Glenwood Management’s
operations.”
He also noted that Glenwood was one of Gov. Cuomo largest supporters by providing nearly $1 million in campaign funding through LLCs during his first term.
Cuomo has proposed closing the LLC loophole –but has kept taking LLC checks as the GOP-led state Senate refuses to block LLC contributions.
Senate Majority Leader John Flanagan (R-Smithtown) has called the push to close the loophole a “red herring” that fails to address the real problems in the campaign finance system that include lax enforcement.
Molinaro’s plan also calls for barring contributions from firm or individuals bidding on government projects, as well as reining in subsidies to individual businesses and improving oversight and disclosure of economic developments grants
He also supports term limits for statewide officeholders and state legislators and beefing up ethics and anti-corruption enforcement.
Molinaro is currently the Dutchess County executive.