S8432

The Senate laid aside legislation to amend the Limited Liability Company Law. Sponsored by Sen. Hoylman-Sigal, the bill (S8432, Calendar No. 2030) was removed from consideration on a motion by Sen. Lanza, which was granted by Acting President Bailey.

The New York State Senate passed landmark legislation requiring limited liability companies to disclose beneficial ownership information to the state, with a 38-21 vote largely along party lines. Sponsored by Sen. Brad Hoylman-Sigal, the bill (S8432, Calendar 2030) would make New York the first state to establish such requirements after the Trump administration invalidated the federal Corporate Transparency Act. Beginning January 1, 2026, LLCs would be required to file beneficial owners' full legal names, dates of birth, addresses, and government-issued identification numbers with the Department of State. The measure includes 20 exemptions and allows the Attorney General to assess fines up to $500 per day for non-compliance, though the fine is discretionary. Hoylman-Sigal argued the transparency is essential for law enforcement to combat shell companies used for tax evasion, wage theft, housing violations, and other crimes. Sen. Chris Weber led Republican opposition, arguing the bill imposes excessive regulatory burden on small businesses already struggling under New York regulations and questioned the $3.9 million cost to establish the database. All 21 votes against the measure came from Republican senators.