New York City, December 20, 2025
Governor Kathy Hochul has vetoed the LLC Transparency Act which sought to require public disclosure of LLC owners in New York, citing privacy concerns. In contrast, she signed the RAISE Act, enhancing AI safety regulations by requiring large AI developers to publish safety protocols and report incidents swiftly. The LLC Transparency Act aimed at increasing accountability but faced opposition over privacy risks. The RAISE Act positions New York as a leader in AI safety, implementing structured oversight for emerging technologies.
Governor Hochul Vetoes LLC Transparency Measure; Signs Major AI Safety Bill
New York City, NY – Governor Kathy Hochul has vetoed the LLC Transparency Act, a measure that would have required limited liability companies (LLCs) to disclose their beneficial owners to the public. The governor cited concerns that such public disclosure could lead to identity theft and other privacy issues. However, she signed the RAISE Act, a significant piece of legislation aimed at enhancing artificial intelligence (AI) safety in the state.
LLC Transparency Act Vetoed
The LLC Transparency Act sought to unmask the owners of LLCs in New York, particularly targeting anonymous shell companies that have been used for money laundering and other illicit activities. Proponents argued that public disclosure of LLC ownership would increase transparency and accountability. However, Governor Hochul vetoed the bill, expressing concerns that a public database of LLC owners could create unnecessary intrusions into personal privacy. She emphasized that information about LLC owners would be available only to law enforcement and regulatory authorities.
RAISE Act Signed into Law
In contrast, Governor Hochul signed the RAISE Act, a landmark legislation that requires large AI developers to create and publish information about their safety protocols. The act mandates that developers report incidents to the state within 72 hours of determining that an incident occurred. Additionally, it establishes an oversight office within the Department of Financial Services to assess large frontier developers and ensure greater transparency.
Background Context
The LLC Transparency Act was introduced to address concerns over anonymous LLCs being used for illicit activities, including money laundering and tax evasion. By requiring public disclosure of LLC ownership, the bill aimed to increase transparency and accountability. However, the bill faced opposition from various stakeholders who raised privacy concerns and questioned the effectiveness of public disclosure in preventing illicit activities.
The RAISE Act, on the other hand, reflects New York’s proactive approach to regulating emerging technologies. By focusing on AI safety, the legislation aims to mitigate potential risks associated with AI development and deployment. The establishment of an oversight office within the Department of Financial Services is intended to provide a structured framework for monitoring and regulating AI activities in the state.
Implications for Businesses and Residents
The veto of the LLC Transparency Act means that LLC owners in New York will not be required to publicly disclose their ownership information. This decision has been met with mixed reactions. Some argue that it preserves privacy and protects business owners from potential risks associated with public disclosure. Others contend that it limits transparency and accountability, potentially allowing illicit activities to continue unchecked.
The signing of the RAISE Act positions New York as a leader in AI safety regulation. Businesses involved in AI development will need to comply with the new safety protocols and reporting requirements. The establishment of an oversight office indicates a commitment to ensuring that AI technologies are developed and deployed responsibly, balancing innovation with public safety.
Conclusion
Governor Hochul’s recent actions highlight the state’s approach to balancing privacy concerns with the need for transparency and safety in business operations. While the veto of the LLC Transparency Act maintains privacy for LLC owners, the signing of the RAISE Act demonstrates a commitment to proactive regulation of emerging technologies like AI. These decisions will have lasting implications for businesses and residents in New York, shaping the state’s regulatory landscape in the years to come.
Frequently Asked Questions (FAQ)
What is the LLC Transparency Act?
The LLC Transparency Act was a proposed legislation in New York that aimed to require limited liability companies (LLCs) to publicly disclose their beneficial owners. The goal was to increase transparency and accountability by unmasking the owners of LLCs, particularly those used for anonymous shell companies involved in illicit activities.
Why did Governor Hochul veto the LLC Transparency Act?
Governor Hochul vetoed the LLC Transparency Act due to concerns that a public database of LLC owners could create unnecessary intrusions into personal privacy. She emphasized that information about LLC owners would be available only to law enforcement and regulatory authorities, not the general public.
What is the RAISE Act?
The RAISE Act is a significant piece of legislation signed by Governor Hochul that requires large AI developers to create and publish information about their safety protocols. The act mandates that developers report incidents to the state within 72 hours of determining that an incident occurred and establishes an oversight office within the Department of Financial Services to assess large frontier developers and ensure greater transparency.
How does the RAISE Act impact businesses involved in AI development?
Businesses involved in AI development will need to comply with the new safety protocols and reporting requirements set forth by the RAISE Act. The establishment of an oversight office indicates a commitment to ensuring that AI technologies are developed and deployed responsibly, balancing innovation with public safety.
What are the implications of these legislative actions for New York residents?
The veto of the LLC Transparency Act means that LLC owners in New York will not be required to publicly disclose their ownership information, preserving privacy. The signing of the RAISE Act positions New York as a leader in AI safety regulation, indicating a proactive approach to managing emerging technologies and their potential risks.
Key Features of the Legislative Actions
| Feature | Description |
|---|---|
| LLC Transparency Act Vetoed | Governor Hochul vetoed the LLC Transparency Act, which aimed to require public disclosure of LLC beneficial owners, citing privacy concerns. |
| RAISE Act Signed | The RAISE Act requires large AI developers to publish safety protocols and report incidents within 72 hours, establishing an oversight office within the Department of Financial Services. |
| Impact on Businesses | Businesses involved in AI development must comply with new safety protocols and reporting requirements under the RAISE Act, while LLC owners maintain privacy without public disclosure requirements. |
| Implications for Residents | Residents benefit from enhanced AI safety regulations, while LLC owners’ privacy is preserved due to the veto of the LLC Transparency Act. |
Now Happening on X
- @CrainsNewYork (Dec 19, 2025): Hochul vetoes LLC transparency measure while AI and business bills remain pending. View on X
- @lynns_warriors (Dec 20, 2025): Governor Hochul enacts the RAISE Act, positioning New York as a leader in AI safety standards by holding major developers accountable for transparency and safety protocols. View on X
- @ddayen (Dec 19, 2025): In a reversal, Governor Hochul signed the RAISE Act, an AI safety law that sets a strong standard despite some negotiated changes from the original version. View on X
- @pro_jectliberty (Dec 19, 2025): New York parents urge Governor Hochul to sign the RAISE Act, which would require top AI model makers like Meta and Google to follow new transparency rules for safety. View on X
- @MunshiPremChnd (Dec 20, 2025): Governor Hochul signs the RAISE Act into law, aligning New York’s AI safety regulations with California’s SB 53 and exploring its future impacts. View on X
- @ragajus (Dec 19, 2025): New York becomes the second state to address AI safety risks via a deal on the RAISE Act, which includes lowered fines and disclosures but still advances beyond California’s standards, according to bill sponsors. View on X
- @emilyngo (Dec 19, 2025): Governor Hochul is set to sign New York’s AI safety law, the RAISE Act, establishing guardrails on advanced AI models and affecting major tech companies. View on X
- @eickernews (Dec 20, 2025): Governor Hochul is expected to sign the RAISE Act, a stricter AI safety law than California’s SB53, aimed at regulating major tech companies to prevent large-scale risks. View on X
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