California Lawmaker Pushes for Transparency in Business Ownership
In an effort to crack down on opaque ownership structures that allow some companies to evade state laws, California State Senator Maria Elana Durazo is pushing for legislation that would require business owners and landlords to disclose their identities. The bill would mandate that limited liability companies (LLCs) and similar corporations list anyone who owns at least 25% of the company’s assets on its registration with the state.
Durazo argues that the lack of transparency in corporate ownership has allowed individuals to shield their identities and assets, making it difficult for government officials and law enforcement agencies to hold them accountable for violations. The bill has garnered support from labor, housing, and environmental groups, but faces opposition from business groups, including those representing landlords.
Critics of the bill point to the costs associated with implementing the new disclosure requirement, estimated at $9 million upfront and an additional $3.4 million annually. However, proponents argue that the lack of transparency in corporate ownership has serious consequences, citing cases where landlords have evaded responsibility for unsafe living conditions and employers have cheated workers out of their pay.
The push for transparency in business ownership is not unique to California, as similar legislation has been passed at the federal level and in other states like New York. The debate over the bill in California highlights the ongoing tension between privacy concerns and the need for accountability in the business world.