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A bill that would require business owners and landlords in California to disclose their identities is one step closer to becoming law.
Under the bill, LLCs and similar corporations would be required to list anyone who owns at least 25% of the company's assets, the Los Angeles Times reports.
"Some owners can abuse LLC to shield not only their assets but also their identities," says state Sen.
Maria Elana Durazo, who introduced the bill.
"This is a good governance bill."
But the bill faces opposition from business groups, including landlords, who say it will cost them millions of dollars to implement.
Last year, the Secretary of State estimated the new disclosure requirement would cost $9 million to implement and an additional $3.4 million annually in subsequent years to employ 28 support workers.
"It really doesn't make any sense to us," says an executive with the California Apartment Association.
A labor attorney says the state had to name 14 different companies in a lawsuit before the owners agreed to settle, and the investigation would have taken half a day if the bill was law at the time.
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