Establishes a publicly available database of business entities in the state that enter into procurement contracts with procuring entities in the state; requires such database to include, among other things, the name of the business entity, the current business street address and county associated with each business street address, and the full name of each beneficial owner.
This bill would create a publicly available business entity database for companies that enter into certain New York State procurement contracts. It defines covered “procurement contracts” broadly to include contracts and agreements over $50,000, certain real property transactions with the state, and state office-space acquisitions. The bill also expands the circumstances under which beneficial ownership information may be disclosed by the Department of State when a reporting company enters into a procurement contract with a procuring entity.
The database would be maintained by the Secretary of State on the department’s website and would cover New York and authorized foreign business entities that are reporting companies and contract with state procuring entities. The database would include core entity information such as the business name, name history, address, county, formation or authority dates, filing history, and other information the Secretary of State determines appropriate. For limited liability companies and foreign limited liability companies, it would also list the full legal name of each beneficial owner, subject to a waiver process for certain privacy-sensitive situations. The bill provides examples of qualifying privacy interests, including participation in an address confidentiality program and involvement as a relator in a qui tam action.
The bill would amend the Limited Liability Company Law and the Executive Law, building on the state’s existing beneficial ownership disclosure framework. It would require the Department of State to maintain and disclose additional information for covered entities and to establish regulations for waiver requests, while also authorizing the creation of guidance on compliance and use of the disclosed information. The measure is set to take effect 365 days after enactment, with immediate authority for implementing regulations.
The overall sentiment reflected in the available record is neutral to supportive in policy design, with the bill presented as a transparency and accountability measure for state procurement. No committee debate or votes are provided, so there is no recorded opposition or endorsement in the supplied materials. Based on the text alone, the bill appears aimed at increasing public visibility into vendors doing business with the state and the ownership structures behind them.
The main point of potential contention is the balance between procurement transparency and privacy for beneficial owners. The bill requires public disclosure of beneficial owners for covered entities, but it also creates a waiver process for people with significant privacy interests and preserves some confidentiality protections. Another possible issue is the breadth of the procurement definition, which reaches beyond standard contracts to certain real estate and office-space transactions, potentially expanding the number of entities subject to public disclosure.
The bill would amend the Limited Liability Company Law and the Executive Law to expand disclosure obligations for reporting companies that contract with state procuring entities. It would require the Department of State to maintain a public database of covered business entities and to disclose beneficial owner names for LLCs and foreign LLCs, subject to limited waivers, thereby increasing public access to ownership and filing information for state contractors and related entities.
No committee transcripts or votes are available, so there is no recorded legislative debate or roll-call sentiment in the provided materials. On its face, the bill is framed as a transparency and accountability measure for state procurement, suggesting a generally pro-disclosure policy orientation, while also incorporating privacy exceptions that indicate an effort to balance competing interests.
The likely contention centers on whether public disclosure of beneficial owners is too intrusive for businesses and individuals, especially where privacy or safety concerns exist. The bill addresses this by allowing waivers for significant privacy interests, including address confidentiality program participants and qui tam relators, but opponents could still object to the breadth of the public database and the expanded definition of procurement contracts. Supporters would likely emphasize anti-corruption, vendor transparency, and public oversight of state contracting.