Statement from Assemblymember Emily Gallagher and Senator Brad Holyman-Sigal on Governor Hochul Signing the LLC Disclosure Act

On December 23, 2023, Governor Hochul signed the LLC Disclosure Act. Assemblymember Emily Gallagher and Senator Brad Hoylman-Sigal issued the following statement:

“When we introduced the LLC Transparency Act (S995B/A3484A) in March 2022, our goals were threefold: 1) to raise the issue of anonymous, unaccountable shell companies as a top policy concern in New York, 2) to provide local and state government access to previously hidden ownership information so they could effectively enforce laws and codes, and 3) to create a public database to hold accountable secretive companies exploiting tenants and workers.

With the Governor’s signature today, we have achieved two of these objectives.

For the first time, state agencies and local governments will know who owns anonymous LLCs operating in New York and be able to hold them accountable for violations of the law. Landlords who refuse to properly maintain their buildings, companies stealing wages from workers or abusing the environment, and sanctioned oligarchs buying up Manhattan real estate are now on notice. Today’s agreement also creates new state authority to pursue and penalize LLCs who refuse to disclose their true owner. New York joins the international community and now leads among the states in tackling the rise of secretive shell companies as a serious policy concern with consequences for tenants, workers, government, and business.

Unfortunately, this law does not create the publicly available database that we fought for and that the Legislature passed with significant majorities. Disclosure to state and local governments is an important first step but it is not transparency. Tenants deserve to know who they pay rent to, and employees should know who owns the companies mistreating them. That fight is not over.”