Asm. Jake Ryan Blumencranz

The Assembly debated A08662-A, sponsored by Assemblywoman Gallagher, which modifies LLC Law definitions of beneficial owner, reporting company, and exempt company by removing Federal Corporate Transparency Act cross-references and providing state-specific definitions. Gallagher characterized the measure as a technical fix clarifying existing law. However, the bill faced significant opposition. Assemblyman Lemondes argued it imposes $5 billion in compliance costs on small businesses, invades privacy, increases cyber security risks, and worsens out-migration—New York already ranks 50th nationally in business climate. Assemblyman Blumencranz questioned why the state would adopt language Federal courts found unconstitutional and the Federal Government abandoned after FinCEN rescinded the beneficial ownership reporting requirement in March 2025. He argued the bill creates two different compliance standards and lacks empirical evidence of crime deterrence. Gallagher maintained the bill is purely technical and does not change existing law.

The Assembly passed A8662-A, a technical amendment to the LLC Transparency Act that codifies Federal beneficial ownership definitions into state law. Sponsor Asm. Gallagher characterized the bill as a necessary fix to fill a gap created when Federal law changed, maintaining no new policy or exemptions were introduced. However, opponents including Asm. Blumencranz and Asm. Ra argued the bill represents substantive policy-making, not a technical fix, as it explicitly places into state law definitions previously referenced by Federal citation. Critics raised concerns about duplicative compliance burdens on small businesses, data security risks, and the bill's exemption of large financial institutions while targeting smaller LLCs. The Business Council strongly opposed the legislation, calling it regulatory overreach that will accelerate business exodus from New York. A procedural dispute arose over whether questions about Federal enforcement changes were germane; the Acting Speaker ruled they were not, and that ruling was upheld on appeal. The bill passed on a party-line vote, with the Republican Conference voting in opposition.

The Assembly passed legislation requiring advertisers to disclose when advertisements feature synthetic performers created by artificial intelligence, aiming to protect consumers from deception. Sponsored by Assemblywoman Linda Rosenthal, the bill mandates "conspicuous" disclosure that an ad uses synthetic humans, with civil penalties of $1,000 for first violations and $5,000 for subsequent violations. The measure exempts audio-only advertisements and expressive works like music videos and video games. However, the bill drew significant criticism during debate over vague definitions and enforcement challenges. Assemblyman Ra warned the law could disadvantage New York's $437 billion advertising industry by driving businesses to other states with less stringent regulations. Assemblyman Blumencranz questioned whether the Attorney General's office has adequate expertise to determine what constitutes a synthetic performer, noting the subjective nature of the standards and the lack of clear guidance for advertisers on compliance. The Minority Conference voted against the bill, while the Majority supported passage.

The Assembly passed legislation reducing minimum insurance requirements for peer-to-peer vehicle rental companies, lowering the threshold from $1.25 million to $75,000-$150,000. Sponsor Assemblymember Weprin argued the higher requirement was preventing market competition and that competitor Getaround left New York specifically citing the mandate. However, opponents including Assemblymembers Ra, Durso, Chang, and Jensen raised public safety concerns, noting that the online-only transaction model lacks the verification procedures of traditional rental companies and that unvetted drivers operating unverified vehicles warrant higher insurance coverage. The bill passed with support from the Majority Conference, though Republicans generally opposed it. Several members explained their votes, with Assemblymember Steck voting yes after determining that existing statute requires the company to defend vehicle owners against lawsuits, and Assemblymember Jensen voting no, arguing the change was premature given that Turo remains profitable.

The New York State Assembly passed the $63.6 billion State Operations Budget on May 8, though not without significant controversy over a $10 million legal defense fund for state employees, including the Attorney General. The provision allows the state to pay for legal defense of employees who claim to be targeted because of their position, even in cases unrelated to official duties. Republican Assemblyman Ra criticized the language as "extremely broad," arguing it could fund defense of personal financial dealings unrelated to state service. The budget also drew fire from Assemblyman Blumencranz for lacking specific funding to combat rising anti-Semitism at CUNY and SUNY campuses despite pending federal civil rights investigations. Supporters highlighted equity-focused investments including $8.5 million for the Queens Museum, $2.75 million for transgender wellness programs, and $64.4 million for immigrant legal services. Assemblywoman Walsh voted against the entire budget, citing a $101 billion increase in state spending since 2017.

The New York State Assembly passed the $63.6 billion State Operations Budget on May 8, with heated debate over a controversial $10 million legal defense fund for State employees. The provision, which allows the Governor to determine eligibility for the Attorney General's legal defense in investigations potentially unrelated to official duties, drew sharp criticism from minority members who called the language "extremely broad" and warned it could allow taxpayer funding for personal legal matters. Sponsor Asm. Pretlow defended the measure as protecting State officials from politically motivated investigations. The budget also faced criticism for lacking specific line items to combat anti-Semitism at SUNY and CUNY institutions, with members noting rising attacks on Jewish students. The bill passed on a party-line vote, with Republicans voting no and Democrats voting yes. The budget includes $500 million for clean water, $25 million for environmental protection, and significant funding for immigrant services and senior programs.

The New York State Assembly passed the $63.6 billion State Operations Budget for fiscal year 2025-26 on May 8, though not without significant controversy over a contentious legal defense fund provision. The budget, sponsored by Assemblyman Pretlow, authorizes $25 billion from the General Fund and $39.2 billion on an all-funds basis. The most heated debate centered on a new $10 million legal defense fund for state employees that allows the Governor to authorize payment of attorney's fees even for conduct unrelated to official duties, with broad language allowing individuals to claim they are being targeted because of their position. Assemblyman Ra argued this represents a dangerous departure from past practice and could allow the Attorney General to claim federal investigations are politically motivated. The provision passed despite Republican opposition. The budget also drew criticism from Assemblyman Blumencranz and others for lacking specific funding to combat rising anti-Semitism at CUNY and SUNY campuses. Supporters highlighted funding for immigrant legal services ($64.4 million), senior programs, and infrastructure investments. Assemblywoman Walsh voted against the entire budget, citing unsustainable spending increases of $101 billion since 2017.

The New York State Assembly passed a budget bill provision requiring businesses to disclose when they use algorithmic pricing based on personal consumer data, making New York the first state to implement such a standard. The measure, Part X of the broader budget bill A03007-C, mandates that companies inform customers when prices are set using algorithms that consider personal information such as search history, zip code, gender, or race. The provision exempts banks, insurance companies, and ride-share services like Uber and Lyft, as well as subsidiaries of financial institutions subject to federal banking regulations. During debate, Assemblymember Blumencranz questioned the bill's effectiveness and scope, arguing that major companies like Amazon and Ticketmaster could potentially avoid regulation through exemptions, and that disclosure alone may not change consumer behavior in markets with limited alternatives. Sponsor Assemblymember Pretlow defended the measure as promoting fairness and transparency. The Minority Conference voted against the bill, while the Majority Conference supported it. The bill passed with explanatory votes from Assemblymembers Rozic and Torres, who praised the consumer protections as a significant step forward in the digital marketplace.

The New York State Assembly passed a budget bill provision requiring businesses to disclose when they use algorithmic pricing based on consumers' personal data, making New York the first state to mandate such transparency. The measure, contained in Part X of the budget bill (A03007-C), sparked debate over its scope and effectiveness. Sponsor Assemblymember Pretlow defended the disclosure requirement as promoting fairness, while critics including Assemblymember Blumencranz argued the bill contained broad exemptions for financial institutions and their affiliates—potentially excluding major practitioners like Amazon and Ticketmaster—and questioned whether disclosure alone would meaningfully protect consumers in markets with limited alternatives. The Majority Conference voted in the affirmative; the Minority Conference voted in the negative. The bill passed with members including Rozic and Torres praising the consumer protections, which also include requirements for AI companions to disclose they are not human, clear return policies, and simple subscription cancellation methods.

The Assembly passed a budget bill provision requiring businesses to disclose when they use algorithmic pricing based on personal consumer data, making New York the first state to implement such a standard. The measure, part of a broader consumer protection package in the budget, mandates that companies inform customers when prices are set using algorithms that consider personal information such as search history, zip code, gender, or race. The bill exempts banks, insurance companies, and ride-share services like Uber and Lyft. During debate, Assemblymember Blumencranz questioned the bill's effectiveness, arguing that broad exemptions for financial institution affiliates—potentially including companies like Ticketmaster and Amazon—would undermine the measure's intent. He also raised concerns about vague definitions of "algorithm" and potential unintended consequences for small businesses using third-party pricing software. Sponsor Assemblymember Pretlow defended the disclosure requirement as promoting fairness and consumer awareness. The Minority Conference voted against the bill, while the Majority voted in favor. The measure passed as part of the broader budget bill.

The Assembly passed A00433, a chapter amendment to expand transparency requirements for artificial intelligence used in state employment decisions. Sponsored by Assemblyman Otis, the bill requires the Office of Information Technology Services to maintain a public inventory of AI tools used by state agencies for hiring and employment decisions. State agencies must disclose on their websites when AI is being used for these purposes. Otis characterized the legislation as the first statute in the nation requiring such transparency and noted that the changes were negotiated with the Governor's office. Assemblyman Blumencranz, speaking in favor, said the bill represented substantial improvements from last year's version, though he called for continued collaborative work to ensure clarity in the language as the state navigates technological advancement.

The Assembly took up A2141, sponsored by Asm. Rosenthal and co-sponsored by 24 other members, which would establish comprehensive health data privacy protections for New Yorkers. The bill would regulate entities that process "regulated health information"—defined broadly to include data from fitness trackers, health apps, period trackers, and other wellness devices—and would require separate authorization from users before such information can be processed or shared beyond what is strictly necessary to provide requested services. During floor debate, Asm. Blumencranz raised extensive concerns about the bill's vague definitions, potential conflicts with telehealth and wellness app business models, and the delegation of rule-making authority to the Attorney General without legislative oversight. Rosenthal defended the bill's framework, arguing that the 24-hour waiting period applies only to secondary uses of data, not to immediate service delivery, and that the AG's rule-making authority is standard practice. The debate highlighted tensions between consumer privacy protections and the operational requirements of digital health services.

The Assembly passed A10355-A, sponsored by Assemblyman Stern, which amends the Private Housing Finance Law to authorize an additional real property tax exemption for certain redevelopment company projects within Nassau County. Members praised the bill as critical for seniors, with Assemblyman Durso noting that thousands of seniors will be able to afford to stay in their homes as a result. Assemblyman Blumencranz characterized the legislation as literally life or death for some seniors, underscoring the measure's importance to the elderly population.

The Assembly engaged in extensive debate on the Stop Addictive Feeds Exploitation (SAFE) for Kids Act (A08148-A/S07694-A), sponsored by Assemblywoman Rozic, which would restrict algorithmic feeds to minors without parental consent. The bill prohibits social media platforms from sending notifications to users under 18 from addictive feeds between midnight and 6 a.m. without verifiable parental consent, and authorizes the Attorney General to enforce compliance with civil penalties up to $5,000 per violation. Sponsor Rozic argued the bill addresses a documented public health crisis, citing studies linking social media to increased rates of anxiety, depression, and suicide among minors. She emphasized the bill's content-neutral approach, targeting only the algorithmic delivery mechanism rather than speech itself. Assemblymember Blumencranz raised significant concerns about the bill's definition of "addictive feed," arguing it is overly broad and could capture platforms like Spotify, Apple News, Netflix, Goodreads, and podcast applications that use algorithms to recommend content. He questioned whether the bill adequately addresses advertising and marketplace features, and expressed concern about delegating definitional authority to the Attorney General without legislative oversight. Assemblywoman Walsh acknowledged concerns but supported the bill as a necessary first step, though she cautioned against vesting excessive discretion in the Attorney General's office. Assemblymember Lemondes supported the bill as addressing a real crisis affecting child development and national security. The debate remained ongoing at the end of the transcript segment.

The Assembly passed A10355-A, sponsored by Assemblyman Stern, which amends the Private Housing Finance Law to authorize an additional real property tax exemption for certain redevelopment company projects within Nassau County. Members Durso and Blumencranz spoke in support, with Durso noting that thousands of seniors will be able to afford to stay in their homes because of the exemption. Blumencranz characterized the legislation as literally life or death for some seniors, underscoring the measure's significance for the elderly population.

The Assembly engaged in extensive debate on the Stop Addictive Feeds Exploitation (SAFE) for Kids Act (A08148-A/S07694-A), sponsored by Assemblywoman Rozic, which would restrict algorithmic feeds to minors without parental consent. The bill prohibits social media platforms from sending addictive feed notifications to users under 18 between midnight and 6 a.m. without verifiable parental consent and authorizes the Attorney General to enforce compliance with civil penalties up to $5,000 per violation. Sponsor Rozic emphasized the bill targets the root cause of social media's harmful effects on children—algorithmic feeds designed to maximize engagement—in a content-neutral manner. She cited studies linking social media to increased rates of anxiety, depression, and suicide among minors, and noted the 2000 COPPA law is outdated for today's digital landscape. Assemblywoman Walsh expressed support despite concerns about concentrating regulatory authority in the Attorney General's Office, noting the broad bipartisan sponsorship reflects the bill's importance. However, Assemblymember Blumencranz raised significant concerns about the definition of "addictive feed," arguing it is so broad it could capture music streaming services, news aggregators like Apple News, book recommendation platforms like Goodreads, and podcast apps—none of which are social media platforms. He questioned whether the Attorney General has the technical expertise to implement vague standards like "commercially reasonable and technically feasible" methods for age verification, and expressed concern that the Legislature would have no oversight of future regulations. Rozic countered that the definition applies only to platforms where algorithmic feeds are a significant part of services, and that the Attorney General's office includes respected lawyers and technologists capable of crafting appropriate rules. The debate highlighted tensions between addressing a genuine public health concern and concerns about regulatory overreach and definitional ambiguity.

The Assembly passed A10355-A, sponsored by Assemblyman Stern, which amends the Private Housing Finance Law to authorize an additional real property tax exemption for certain redevelopment company projects within Nassau County. Members praised the bill as critical for seniors, with Assemblyman Durso noting that thousands of seniors will be able to afford to stay in their homes as a result. Assemblyman Blumencranz called the legislation literally life or death for some seniors, emphasizing the importance of the sponsor's efforts to secure passage.

The Assembly passed legislation sponsored by Assemblywoman Rosenthal clarifying that pharmacists may discuss prescription drug costs and pharmacy benefit manager reimbursement rates with patients without fear of contract penalties. The bill addresses concerns that PBMs are reimbursing independent and small chain pharmacies below the actual cost of medications, forcing some to operate at a loss. Supporters including Assemblyman McDonald cited real examples such as Ozempic costing pharmacies $1,000 per month but being reimbursed only $40-50 below cost, making it impossible for small pharmacies to remain viable. Assemblyman Jensen raised concerns that the bill duplicates existing federal and state protections against PBM gag orders and questioned whether it would be enforced against bad actors already violating current law. The bill passed without a recorded vote tally being announced.

The Assembly debated legislation sponsored by Assemblyman Otis to create oversight of automated decision-making systems used by state agencies, requiring agencies to submit assessments of high-stakes systems affecting public benefits and individual rights to the Legislature. The bill would require meaningful human review in governmental decision-making involving artificial intelligence and automated systems, and would make assessment materials publicly available on agency websites. Otis argued the measure is necessary to prevent discrimination and bias in automated systems while maintaining human oversight and transparency. Assemblyman Blumencranz raised concerns that the bill's broad definition of 'automated decision-making' to include supportive technologies could impose burdensome compliance requirements on understaffed agencies already facing historic backlogs in benefit processing. Blumencranz questioned whether agencies would have the technical expertise and funding to comply with reporting requirements. Otis countered that the bill does not prohibit technology use but ensures human involvement and legislative transparency regarding systems that affect people's rights and access to services.

The Assembly passed legislation requiring state agencies to conduct impact assessments and maintain human oversight of automated decision-making systems used in government services. Sponsor Assemblymember Otis argued the bill ensures transparency and prevents discrimination in algorithmic decisions affecting public benefits and services. The measure requires agencies to disclose existing AI systems within one year and report new systems within 30 days of deployment. Opponents, led by Assemblymember Blumencranz, contended the bill's proprietary data disclosure requirements would discourage vendors from bidding on state contracts and stifle innovation. Assemblymember Goodell opposed a provision prohibiting the use of technology to reduce overtime hours, calling it an impediment to operational efficiency. The Democratic majority supported the bill with some exceptions permitted; Republicans began with a party vote in the negative but the measure ultimately passed.

The Assembly passed legislation sponsored by Assemblywoman Rosenthal clarifying that pharmacists may discuss prescription drug costs and pharmacy benefit manager reimbursement rates with patients without fear of contract penalties. The bill addresses concerns that small independent pharmacies are being reimbursed 3-5% below actual drug costs by major PBMs, forcing some to operate at a loss. Supporters including Assemblyman McDonald cited real examples such as Ozempic costing pharmacies $1,000 per month but generating only $40-50 reimbursement above cost. Assemblyman Jensen opposed the measure, arguing it duplicates existing federal protections and lacks enforcement mechanisms. The bill passed without a recorded vote tally being announced.