Assemblymember Phil Steck urges Governor Kathy Hochul to sign the LLC Transparency Act A3484A into law. Passed at the end of the legislative session, the LLC Transparency Act would end the practice of anonymous ownership of limited liability companies in New York. Upon the formation or registration of the company, beneficial owners would be required to disclose their identities and become searchable in New York’s searchable business entity database.
“I am proud to cosponsor this commonsense legislation that would reveal the identity of anonymous companies operating in New York State. White collar criminals often use anonymous LLCs to launder money, commit wage theft, and evade our campaign finance laws. This legislation would require owners of LLCs to become visible in a public database,” said Steck. “In the Assembly, I have always supported and advocated for legislation that would not only provide transparency for the public but would eliminate corruption in our financial system and government.”
In the past week, the Times Union reported that two dozen executives and operators of nursing homes and rehabilitation centers under investigation by the New York Attorney General’s Office contributed to Governor Hochul’s campaign. The Attorney General’s Office has accused these executives and owners of fraud and neglect at these facilities. New York State campaign finance laws currently do not clarify who and/or what entity is contributing to the campaigns of elected officials. The LLC Transparency Act would solve this by requiring corporations to disclose their owners.
“In light of the recent reporting by the Times Union, it is essential that the Governor immediately signs the LLC Transparency Act into law,” said Steck. “Without companies disclosing their owners, it may appear to the public that the owners are attempting to influence policy and regulatory action. By signing this legislation into law, the Governor can demonstrate that she differs from her predecessor in being committed to transparency and good government.”
If signed into law, New York State would become the first state to have a public registry of beneficial owners.