From the Morning Memo:

The Brennan Center this week in a letter to the state Board of Elections urged commissioners to take action themselves on the so-called “LLC loophole.”

The provision in the state’s campaign finance regulations allows individual donors to contribute unlimited amounts of money as long as they are funneled through limited liability corporations.

Ending the practice — which Gov. Andrew Cuomo’s campaign used to its advantage in last year’s campaign — has been a perennial call from the state’s good government groups with title success.

The loophole has been traced back to a 1996 ruling from the Board of Elections that the Brennan Center says can be reversed.

“The Board’s current treatment of LLCs thwarts the underlying purpose of New York’s campaign finance system, making contribution limits and disclosure requirements extremely easy to evade,” the group wrote in the letter. “It is imperative that the Board close the LLC Loophole and faithfully adhere to New York’s Election Law.”

Good-government groups in general have been less than thrilled with the most recent ethics reform package agreed to in the state budget.

Galvanized in part by the arrest of now former Assembly Speaker Sheldon Silver, the budget created new requirements for disclosure of outside legal clients, reforms to the disbursement of per diems and campaign finance law changes.

Lawmakers are expected to finalize passage of a constitutional amendment that would require public officials convicted of a felony to surrender their pensions, while some personal uses of campaign funds is being restricted.

Not in the final agreement: Closing the LLC loophole.

BOE LLC Loophole 040915 by Nick Reisman