A Montgomery County senator wants to cut off state and local politicians from one of their biggest campaign funding sources.
The bill was heard during a marathon afternoon hearing Thursday before the Senate Education, Health and Environmental Affairs Committee.
Sen. Brian Frosh, D-Montgomery County, sponsored a bill that would prevent the owner of more than one limited liability company from contributing more than the legal limit for other corporate businesses ? $4,000 per candidate or $10,000 per election cycle.
Under current law, an owner of multiple limited liability companies can contribute up to the legal business limit for each individual limited liability.
Both candidates in last year?s gubernatorial election received thousands of dollars from limited liability companies.
“LLCs have been a conduit of literally millions of dollars of campaign contributions ? both Republicans and Democrats have benefited,” Frosh said. “There?s no policy reason why we would allow one type of corporate entity to make these contributions when we don?t allow it from others.”
Maryland State Prosecutor Robert Rohrbaugh said the proposed law would be unenforceable because the owners of limited liability companies are not required to identify themselves when they register with the state.
Tim Willard, who represented the Maryland Green Party, cited news stories from last fall that pointed to the heavy influence of limited liability companies connected to developers and gambling interest in the campaigns of state and local officials.
“It seems in both cases that the loophole was being used to buy influence,” Willard said. “Campaign contribution [limits] were enacted to prevent undue influence by special interests. I believe the LLC loophole effectively damages all these principles.”
But opponents argued that the bill would step on a business? right to participate in the political process.
