New York Governor Kathy Hochul has officially signed the RAISE Act into law, making New York the second state in the United States to implement significant AI safety regulations.
Although the RAISE Act was approved by state legislators in June, Governor Hochul initially suggested modifications to reduce its scope after intense lobbying from the technology sector. However, according to The New York Times, she eventually consented to sign the bill in its original form, with the understanding that lawmakers would incorporate her desired amendments in the upcoming year.
This legislation mandates that significant AI developers disclose details regarding their safety procedures and notify the state of any safety incidents within 72 hours. Furthermore, it establishes a new department within the Department of Financial Services dedicated to overseeing AI advancements.
Non-compliance, such as failing to submit required safety reports or providing inaccurate information, could result in fines of up to $1 million, with subsequent violations incurring penalties of up to $3 million.
In September, California Governor Gavin Newsom approved a comparable safety measure, a fact that Governor Hochul highlighted in her official statement.
Hochul stated, “This legislation extends California’s recently established framework, setting a consistent standard among America’s prominent technology states, particularly as the federal government has been slow to enact sensible regulations for public protection.”
State Senator Andrew Gounardes, a co-sponsor of the bill, declared, “Large tech companies believed they could manipulate their way into defeating our bill. We thwarted their efforts and passed the most robust AI safety legislation nationwide.”
OpenAI and Anthropic both voiced approval for New York’s bill, simultaneously advocating for federal oversight. Sarah Heck, Anthropic’s head of external affairs, informed The New York Times, “The enactment of AI transparency legislation by two of the nation’s largest states underscores the paramount importance of safety and ought to motivate Congress to expand upon these initiatives.”
However, not all within the tech sector have shown such endorsement. A super PAC, financially supported by Andreessen Horowitz and OpenAI President Greg Brockman, intends to contest Assemblyman Alex Bores, who co-sponsored the bill alongside Gounardes. (Bores remarked to reporters, “I value their directness.”)
This development follows former President Donald Trump’s issuance of an executive order instructing federal agencies to oppose state-level AI legislation. This order, supported by Trump’s AI advisor David Sacks, represents the Trump Administration’s most recent effort to limit states’ authority to regulate AI and is anticipated to face legal challenges.
Additionally, the most recent installment of the Equity podcast featured a discussion on Trump’s executive order and the involvement of Sacks and a16z in their resistance to state AI regulation.