California Lawmaker Pushes for Transparency in Business Ownership
State Senator Maria Elena Durazo of Los Angeles has introduced a bill aimed at increasing transparency in business ownership in California. The legislation would require business owners and landlords to disclose their identities, including 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 ownership structures has allowed some companies to skirt state laws without facing consequences. By hiding behind opaque ownership structures, some business owners have been able to shield their assets and identities from public scrutiny, government officials, and even law enforcement agencies.
Supporters of the bill, including labor, housing, and environmental groups, believe that increased transparency will help hold businesses accountable for their actions. They point to cases where anonymous ownership has hindered investigations into labor violations, wage theft, and environmental damage.
However, opponents, including business groups and landlords, argue that the new disclosure requirements would be costly to implement and unnecessary given existing reporting requirements. They also question the need for additional transparency when the federal government is already moving towards requiring similar disclosures.
Despite the opposition, Durazo’s bill has passed a key legislative committee and is moving forward in the legislative process. If successful, the legislation could have far-reaching implications for businesses operating in California, potentially making it harder for bad actors to hide behind anonymous ownership structures.