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Bill

Bill

S 8432

Relates to the scope of certain provisions relating to beneficial owners of limited liability companies

2025 Regular Session Introduced by Brad Hoylman-Sigal

Bill S 8432 enhances transparency by requiring LLCs to disclose beneficial owners, helping prevent fraud and money laundering through stricter reporting and compliance measures.

RETURNED TO SENATE
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WeVote Research Nonpartisan
Bill Summary · S 8432

Summary of Bill S 8432

Bill Overview

  • Bill Number: S 8432
  • Title: Relates to the scope of certain provisions relating to beneficial owners of limited liability companies
  • Status: Returned to Senate
  • Introduced On: June 10, 2025
  • Classification: Bill

Purpose and Intent

Bill S 8432 aims to clarify and expand the legal framework surrounding the identification and regulation of beneficial owners of limited liability companies (LLCs). The intent is to enhance transparency in business ownership, thereby aiding in the prevention of fraud, money laundering, and other illicit activities associated with opaque ownership structures.

Key Provisions

  • Definition of Beneficial Owners: The bill seeks to establish a clearer definition of who qualifies as a beneficial owner of an LLC, ensuring that all individuals who ultimately control or benefit from the company are disclosed.
  • Reporting Requirements: It introduces stricter reporting requirements for LLCs to disclose their beneficial owners to state authorities, thereby increasing accountability.
  • Compliance Measures: The bill outlines compliance measures for LLCs that fail to report beneficial ownership information, including potential penalties.

Affected Parties

  • Limited Liability Companies: The primary entities affected by this bill are LLCs operating within the jurisdiction. They will need to adjust their reporting practices to comply with the new requirements.
  • Business Owners: Individuals who are beneficial owners of LLCs will be required to provide their information, which may impact privacy considerations.
  • Regulatory Authorities: State regulatory bodies will have increased responsibilities in monitoring compliance and enforcing the new provisions.

Legislative Actions

  • June 10, 2025: Bill introduced and referred to rules.
  • June 12, 2025: Ordered to third reading.
  • June 13, 2025:
    • Passed in the Senate.
    • Delivered to the Assembly.
    • Substituted for A 8662A.
    • Referred to Ways and Means.
  • June 17, 2025:
    • Passed in the Assembly.
    • Returned to the Senate.

Related Bills

  • A 8662: This bill serves as a companion to S 8432, likely addressing similar issues regarding beneficial ownership in LLCs.

Conclusion

Bill S 8432 represents a significant step towards increasing transparency in business ownership structures. By establishing clearer definitions and stricter reporting requirements for beneficial owners of LLCs, the bill aims to combat financial crimes and enhance regulatory oversight. As it has been returned to the Senate, further discussions and potential amendments may occur before it is finalized.

Compiled from official sources — confirm details with the bill’s official record.

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