New York Governor Kathy Hochul Signs RAISE Act to Regulate AI Safety

New York Governor Kathy Hochul has signed the RAISE Act, making New York the second U.S. state to enact significant legislation to regulate artificial intelligence safety.

State lawmakers approved the RAISE Act in June, but following lobbying by the technology industry, Hochul proposed revisions to narrow the bill's scope. According to The New York Times, Hochul ultimately agreed to sign the original version of the legislation, while lawmakers committed to addressing her requested changes in the next legislative session.

The law requires large AI developers to publicly disclose their safety protocols and report AI-related safety incidents to the state within 72 hours. It also establishes a new office within the New York Department of Financial Services to monitor AI development and compliance.

Companies that fail to submit required safety disclosures or provide false information may face fines of up to $1 million, with penalties increasing to $3 million for repeat violations.

California Governor Gavin Newsom signed similar AI safety legislation in September, which Hochul referenced in her announcement.

"This law builds on California's recently adopted framework, creating a unified benchmark among the country's leading tech states as the federal government lags behind, failing to implement common-sense regulations that protect the public," Hochul said.

State Senator Andrew Gounardes, one of the bill's sponsors, wrote in a post, "Big Tech thought they could weasel their way into killing our bill. We shut them down and passed the strongest AI safety law in the country."

Both OpenAI and Anthropic expressed support for New York's legislation and urged Congress to pass federal AI regulations. Anthropic's head of external affairs, Sarah Heck, told the New York Times, "The fact that two of the largest states in the country have now enacted AI transparency legislation signals the critical importance of safety and should inspire Congress to build on them."

However, not all voices in the tech industry have backed the bill. A super PAC supported by Andreessen Horowitz and OpenAI President Greg Brockman is reportedly preparing to challenge Assemblyman Alex Bores, who co-sponsored the legislation alongside Gounardes. Bores responded, "I appreciate how straightforward they're being about it."

The development follows President Donald Trump's signing of an executive order directing federal agencies to challenge state-level AI regulations. The order — supported by Trump's AI adviser David Sacks — represents the administration's latest effort to limit states' authority over AI oversight and is expected to face legal challenges.

The issue, including Trump's executive order and the role of Sacks and a16z in opposing state AI regulation, was also discussed in a recent episode of the Equity podcast.