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Pennsylvania House of Representatives
05/18/2024 04:23 AM
Pennsylvania House of Representatives
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20230&cosponId=42637
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House of Representatives
Session of 2023 - 2024 Regular Session

MEMORANDUM

Posted: May 3, 2024 11:52 AM
From: Representative Rick Krajewski and Rep. Jessica Benham, Rep. P. Michael Sturla
To: All House members
Subject: LLC Transparency Act
 
I intend to introduce legislation outlining the creation and maintenance of a statewide Limited Liability Corporations (LLCs) database.
 
Since the 1990s, LLCs have become a popular structure to reduce the legal and debt liabilities of business owners. The LLC structure is attractive to blighted property owners and landlords, who benefit from anonymity and reduced liability. However, the effects of anonymity negatively impacts local communities’ revitalization efforts and renters, as LLC landlords harass tenants at higher rates and are less responsive compared to their “mom and pop” counterparts. LLC blighted property owners and landlords operate across the Commonwealth, affecting communities and renters in rural, suburban, and urban areas.
 
Currently, there is no standardized database that lists LLCs and their affiliated persons. This makes it incredibly difficult for local governments to contact LLC blighted property owners and law enforcement to contact LLC landlords who mistreat tenants or fail to respond to concerns. An LLC Transparency Act would create a beneficial ownership database that could be accessed by state, federal, and local law enforcement agencies. Beyond landlords, utilization of the database would address wage theft, worker abuse, and other transgressions associated with non-housing LLCs.
 
An LLC database is common-sense reform that would empower communities to better deal with blight and also enable Pennsylvanians to feel safe and secure in their homes and workplaces. Please join us in cosponsoring this crucial legislation.