NYC Proposes AI Legislation With Whistleblower Rewards and Mandatory Kill Switches
New York City Council Speaker Julie Menin introduced a legislative package targeting artificial intelligence that offers financial bounties to whistleblowers funded by fines collected from non-compliant AI companies. The proposed bills also mandate third-party safety audits, human-controlled emergency kill switches, and allow victims of AI harm to sue developers. This initiative represents one of the most aggressive municipal efforts to regulate AI safety and hold tech firms accountable for potential deployment hazards. By creating whistleblower bounties and establishing developer liability, New York City aims to set a precedent for local tech policy enforcement. The proposed regulations would require AI systems to pass third-party verification before being marketed or deployed within New York City. Additionally, Council Speaker Menin requested CEOs from major tech companies—including OpenAI, Anthropic, Google, and Meta—to attend an upcoming city hearing regarding AI risks.
## BACKGROUND
An AI kill switch is a safety mechanism designed to shut down or disable an artificial intelligence system if it behaves unpredictably or poses a threat to safety. Third-party AI audits involve independent evaluations of an AI model's safety claims, data privacy practices, and regulatory compliance prior to broad public deployment.