https://www.timesunion.com/news/article/Molinaro-calls-for-pay-to-play-ban-LLC-12954348.php
Molinaro calls for 'pay-to-play' ban, LLC loophole closure
Updated 3:51 pm, Wednesday, May 30, 2018
ALBANY — The Republican candidate for governor, Marc Molinaro, on Wednesday called for a state law banning campaign contribution to state political candidates from individuals or businesses that have or may be pursuing state government contracts.
At an event in Buffalo, Molinaro, who is the Dutchess County executive, noted the upcoming corruption trial of five men accused of rigging bids in connection with the "Buffalo Billion" and other state-funded development initiatives. The alleged illegal actions took place amid heavy campaign contributions to Gov. Andrew Cuomo from the developers that are awaiting trial, although the campaign donations are not central to the criminal case.
Molinaro's campaign also highlighted the U.S. Justice Department's ongoing investigation of Crystal Run Healthcare, a major physician-owned health care provider in the Hudson Valley. Its executives, doctors or their spouses have given at least $400,000 to Cuomo's campaign, and this year, company employees received grand jury subpoenas from the U.S. attorney's office in Manhattan.
A spokesman for Cuomo said the administration has not been subpoenaed in the matter. But Molinaro's campaign noted that $25.4 million in state grants were awarded through competitive bidding to Crystal Run by the state Health Department — on projects that had already broken ground without taxpayer subsidies.
"Andrew Cuomo's Albany is a cesspool of corruption, and the people of this state no longer trust their government as a result, " Molinaro said in a statement. "If we are to begin restoring that trust – and we must – political donations from state vendors and contract holders must be permanently outlawed. This governor promised ethics reforms when he ran and then made a mockery of his promise, becoming the worst pay-to-play offender in state history."
Molinaro also stated on Wednesday that he would push for the closure of the so-called "LLC loophole" in state election law, which allows wealthy individuals to donate essentially unlimited sums to state political candidates using limited liability companies that often cannot be traced to the contributors.
Molinaro's campaign said the LLC loophole "permits individuals to donate to favored candidates under thinly-disguised corporate entities" and that he would close it.
The 1996 state Board of Elections decision allows each limited liability company owned by the same person to donate as if each entity were an individual, with annual donation limits for each LLC of $150,000. Senate Democrats have pushed a bill that would cap LLC contributions at $5,000 annually — the same limit already in place for corporations.
State Senate Republicans, whose conference currently holds a single-seat majority, have blocked the loophole's closure.
Molinaro told the Gotham Gazette in March that the "LLC loophole" should be closed only in combination with other reforms, such as curbing labor union spending in elections.
A state Senate Republican spokesman, Scott Reif, told the Times Union that, "We have always said we would consider" limiting LLC contributions "as part of a comprehensive package of reforms."
Senate Republicans benefit disproportionately from donations that flow from limited liability companies and have argued that efforts by Senate Democrats to only limit LLC contributions are a ploy to tilt the electoral playing field.
Cuomo has called for closure of the LLC loophole, but has not made it a major legislative priority and has been by far the biggest beneficiary of LLC campaign cash. As of January, Cuomo had $30.4 million in his campaign account, leaving him a towering advantage over any challengers.
Cuomo also faces a threat from his left in the Democratic primary from actress Cynthia Nixon, who is refusing to take LLC contributions.
A Cuomo campaign spokeswoman, Abbey Fashouer, maintained that campaign donations never impact Cuomo administration policies.
"Trump mini-me Marc Molinaro—who has an 'A' rating from the NRA and is the NY GOP's handpicked anti-woman, anti-immigrant, anti-LGBTQ candidate—is desperately trying to deflect from the sad state of his campaign," she said. "In fact, Molinaro is a hypocrite who has himself taken contributions from businesses with contracts before Dutchess County."
Cuomo's campaign has refused to answer questions from the Times Union about the circumstances surrounding a series of 10 different $25,000 donations made by Crystal Run officials or their spouses at a 2013 Cuomo campaign fundraiser.
