Relates to the sale or transfer of certain real property by the state or public authorities; requires mandatory review by the attorney general and comptroller of the sale of certain real property; requires notice to members of the legislature and county executives in districts and counties in which land subject to transfer is located of the proposed transfer of state property between state departments, divisions, bureaus, agencies, state agencies, or to a public authority or public benefit corporation.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9562
SPONSOR: Zinerman
 
TITLE OF BILL:
An act to amend the public authorities law and the public lands law, in
relation to the sale or transfer of certain real property by the state
or public authorities
 
PURPOSE:
The legislation amends the public authorities law and public lands law
by mandating review and approval by the attorney general and the comp-
troller of all proposed sales of real property by the state or public
authorities to private entities with an estimated•fair market value in
excess of $250,000. The bill also requires review and approval from.
members of legislature in affected areas prior to the transfer of state
land to a public authority or public benefit corporation.
 
SUMMARY OF PROVISIONS:
Section 1 of the bill amends Section 2897 of the public authority's law
by adding a new subdivision 8 which will require the prior review and
approval by the comptroller and the attorney general of all negotiated
contracts for the disposal of real property with an estimated fair
market value in excess of two hundred and fifty thousand dollars to a
private entity. The bill requires that language informing parties of the
mandated review and approval must be included in the contract. This
section also sets forth that the comptroller and attorney general must
either approve or disapprove within 90 days of submission to their
respective offices otherwise the contract becomes valid and enforceable
without such approval.
Section 2 of the bill amends the public lands law by adding a new
section 33-a which will require the prior review and approval of the
comptroller and the attorney general of all private sale contracts where
a public sale is not otherwise required and the estimated fair market
value is in excess of two hundred and fifty thousand dollars. The bill
requires that language informing parties of the mandated review and
approval must be included in the contract. This section also sets forth
that the comptroller and attorney general must either approve or disap-
prove within 90 days of submission to their respective offices otherwise
the contract becomes valid and enforceable without such approval. The
provisions of this section will also supersede other statutes governing
disposal of state lands which are inconsistent with this section.
Section 3 of the bill amends subdivision 4 of section 3 of the public
lands law, as amended by chapter 785 of the laws of 1982, by renumbering
and 'adding a new subdivision 4 c that requires notice to Senators and
Members Of the Assembly in whose districts the proposed sale is to take
place prior to the transfer of and from the state to a public authority
or public benefit corporation. State Legislators have 30 days within
which to provide written notice of objection to the transfer with the
Commissioner of General Services. The Director of Budget,and the Secre-
tary of State shall review all objections and make a final decision to
affirm or reverse the proposed transfer within 6 months of the notice of
objection.
Section 4 of the bill provides for this act to take effect on the nine-
tieth day after it becomes law.
 
JUSTIFICATION:
Public authorities are given wide latitude in the management of publicly
owned real property and as a result have an important fiscal and fiduci-
ary responsibility to the taxpayers• of this state. Therefore, it is
important that a detailed review be completed by both the attorney
general and the comptroller prior to any sale of real property by a
public authority, or by the state (when a public sale is not required) -
to a private entity valued in excess of $250,000. It is equally impor-
tant that legislators be given notice and the opportunity to object to
transfers of state owned land to public authorities or public benefit
corporations that affect their constituencies. Principles of good
government, including transparency and accountability, call out for such
notice and review provisions to ensure that the taxpayers' interests are
being protected.
 
LEGISLATIVE HISTORY:
No Assembly sponsor history
2022: S3151
2017 -2018: S.1526.
2019-20: Passed thru Committee.
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become a law.
STATE OF NEW YORK
________________________________________________________________________
9562
IN ASSEMBLY
March 20, 2024
___________
Introduced by M. of A. ZINERMAN -- read once and referred to the Commit-
tee on Governmental Operations
AN ACT to amend the public authorities law and the public lands law, in
relation to the sale or transfer of certain real property by the state
or public authorities
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 2897 of the public authorities law is amended by
2 adding a new subdivision 8 to read as follows:
3 8. Comptroller and attorney general approval of contracts. a. Negoti-
4 ated contracts for the disposal of real property with an estimated fair
5 market value in excess of two hundred fifty thousand dollars to a
6 private entity shall require supervision in the form of prior review and
7 approval of such contracts and any such contract entered into shall be
8 submitted to the comptroller and the attorney general for their approval
9 and shall not be a valid enforceable contract unless it shall first have
10 been so approved. The comptroller, in consultation with the attorney
11 general, shall promulgate such rules and regulations as may be necessary
12 to carry out their responsibilities under this section, including but
13 not limited to the standards for approving contracts subject to this
14 subdivision.
15 b. Where a contract is subject to mandatory review by the comptroller
16 and the attorney general pursuant to paragraph a of this subdivision,
17 the vendor public authority shall include or cause to be included in
18 each such contract a provision informing the other party that such
19 contract is subject to the comptroller's and the attorney general's
20 approval pursuant to this subdivision and the comptroller's authority to
21 supervise the accounts of public corporations. If the comptroller and
22 the attorney general have not approved or disapproved any contract
23 subject to his or her approval within ninety days of submission to his
24 or her office, such contract shall become valid and enforceable without
25 such approval.
26 § 2. The public lands law is amended by adding a new section 33-a to
27 read as follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03336-01-3
A. 9562 2
1 § 33-a. Comptroller and attorney general approval of private sale
2 contracts. 1. To the extent a public sale is not required and a negoti-
3 ated contract for the disposal of unappropriated state lands with an
4 estimated fair market value in excess of one hundred thousand dollars to
5 a private entity is deemed authorized by the provisions of this article
6 or any other provision of law, rule or regulation, such negotiated
7 contract shall require supervision in the form of prior review and
8 approval of such contract and any such contract entered into shall be
9 submitted to the comptroller and the attorney general for their approval
10 and shall not be a valid enforceable contract unless it shall first
11 have been so approved. The comptroller, in consultation with the attor-
12 ney general, shall promulgate such rules and regulations as may be
13 necessary to carry out their responsibilities under this section,
14 including but not limited to the standards for approving contracts
15 subject to this subdivision.
16 2. Where a contract is subject to mandatory review by the comptroller
17 and the attorney general pursuant to subdivision one of this section,
18 the vendor shall include or cause to be included in each such contract a
19 provision informing the other party that such contract is subject to the
20 comptroller's and the attorney general's approval pursuant to this
21 section. If the comptroller and the attorney general have not approved
22 or disapproved any contract subject to his or her approval within ninety
23 days of submission to his or her office, such contract shall become
24 valid and enforceable without such approval.
25 3. The provisions of this section shall be effective notwithstanding
26 the provisions of any other general or special law relating to the
27 disposal of lands belonging to the state, and any such statute or parts
28 thereof relating to such disposal of state lands insofar as they are
29 inconsistent with the provisions of this section are hereby superseded.
30 § 3. Subdivision 4 of section 3 of the public lands law, as amended by
31 chapter 672 of the laws of 2019, is amended to read as follows:
32 4. a. Notwithstanding any other provision of this chapter or other
33 statute, the commissioner of general services, upon the application of
34 any state department, or a division, bureau or agency thereof, or upon
35 the application of any state agency, may transfer to such state depart-
36 ment, division, bureau, or agency, or state agency, the jurisdiction
37 over any lands, including lands under water, abandoned canal lands and
38 salt springs reservation land, upon such terms and conditions as the
39 commissioner may deem just and proper and upon the consent of the
40 department, or a division, bureau or agency thereof, or any state agen-
41 cy, already having jurisdiction over such lands and notwithstanding any
42 other provision of this chapter or other statute, authority to give such
43 consent is hereby conferred upon the head of any such state department,
44 or a division, bureau or agency thereof, or any state agency; provided,
45 however, that if the commissioner of general services determines that
46 any such land under the jurisdiction of any state department, or a divi-
47 sion, bureau or agency thereof, or any state agency other than a public
48 authority or public benefit corporation is under utilized or is not
49 being utilized in a manner consistent with the best interests of the
50 state, such commissioner may on his own initiative, and without the
51 application or consent referred to above but subject to the procedure
52 and review provided in section two-a of this article, transfer the
53 jurisdiction over such land to any other state department, or a divi-
54 sion, bureau or agency thereof, or any other state agency other than a
55 public authority or public benefit corporation.
A. 9562 3
1 b. Should such land be under the jurisdiction of the office of mental
2 health or the office for people with developmental disabilities upon
3 which a community residential facility for the disabled as defined in
4 section 41.34 of the mental hygiene law exists, the commissioner of
5 general services shall, prior to transferring the jurisdiction over such
6 land to any other state department, or a division, bureau or agency
7 thereof, or any other state agency other than a public authority or
8 public benefit corporation offer such land for sale at public auction
9 pursuant to section thirty-three of this chapter; provided, however,
10 that the provisions of section four hundred six of the eminent domain
11 procedure law shall apply to such property.
12 c. No transfer of land, as described in this subdivision, or grant or
13 conveyance of land to a public authority or public benefit corporation
14 shall be deemed valid unless notice is provided in writing to each
15 member of the legislature in whose district any portion of the land
16 subject to the proposed transfer is located. Such notice shall provide
17 a description of the land, identification of the proposed transferor and
18 transferee state departments, divisions, bureaus, agencies, state agen-
19 cies, public authorities or public benefit corporations and the terms
20 and conditions of the proposed transfer. Unless within thirty days from
21 the date such notice is given, a member of the legislature entitled to
22 notice pursuant to this paragraph objects to such proposed action, the
23 commissioner of general services may effect such transfer of jurisdic-
24 tion. If within thirty days of the giving of such notice, a member of
25 the legislature entitled to notice pursuant to this paragraph objects to
26 the action proposed by the commissioner of general services by filing
27 notice to such effect with the commissioner of general services, such
28 proposed action shall be reviewed by the director of the budget and the
29 secretary of state. They shall affirm or reverse the proposed action by
30 the commissioner and that decision shall be final. If they affirm the
31 proposed action or fail to render a determination within six months of
32 the date of the notice, the commissioner may thereupon effect such
33 transfer.
34 § 4. This act shall take effect on the ninetieth day after it shall
35 have become a law.