FPPC to Require LLC's Provide More Political Spending Transparency - State and Federal Communications

June 19, 2020  •  

FPPC to Require LLC’s Provide More Political Spending Transparency

Sacramento, CA Skyline - Basil D Soufi

The Fair Political Practices Commission (FPPC) voted to require more transparency and disclosure of those who use limited liability companies (LLC’s) to make political contributions.

Aditionally, they would require campaigns to list the name of the actual person who directed the LLC political spending.

The first new regulation requires LLC’s involved in raising and spending money for political activity to name the person making the decisions.

The second new regulation requires campaigns receiving donations from LLC’s to also list the name of the person responsible for the political activity.

A 2019 FPPC Enforcement Division examination of LLC’s found it was relatively easy to find information about the type of business, its address and an agent for service of process.

However, it was extremely difficult to find the identities of the people behind the LLC’s owners or the true source of the political expenditures.

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