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A03203 Summary:

COSPNSRGalef, Stirpe, Fahy, Steck, Montesano, Simon, Cahill, Miller M, Colton, Gottfried, Morinello, Ashby, Pichardo, Lupardo, Otis, DeStefano, Barron
MLTSPNSRHyndman, Tague
Amd §3, Pub Bldg L
Relates to the authority of the commissioner of general services to lease public buildings; authorizes the commissioner of general services to promulgate any necessary rules and regulations.
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A03203 Memo:

submitted in accordance with Assembly Rule III, Sec 1(f)
  TITLE OF BILL: An act to amend the public buildings law, in relation to the authority of the commissioner of general services to lease public buildings   PURPOSE OR GENERAL IDEA OF BILL: To require the disclosure of the names and residential addresses of the natural persons who are members, managers, or other authorized persons of a limited liability company when such limited liability company executes a lease agreement where the State of New York is-the tenant.   SUMMARY OF SPECIFIC PROVISIONS: Section 1 - Amends subdivision 12 of section three of the public build- ings law to require that any limited liability company (LLC) which executes a lease agreement in which the state of New York is the tenant disclose the names and residence addresses of any natural persons who are members, managers, or other authorized persons. This extends the same requirement to any LLCs which are members, partners, or other authorized persons within the LLC executing the lease agreement. Section 2 - Amends the same section of law as amended by Section 1 of this act to account for a sunset provision. Section 2 of this act required that if the current law (as amended by section. 1 of this act) were to expire, the law as reverted would include the same LLC lease language included in this act. Section 3- Authorizes the commissioner of general services to to promul- gate rules and regulations to effectuate the purposes of this act Section 4- Provides for the effective date.   DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION: The amendments to this bill clarify that the commissioner of general services is authorized to implement regulations for the implementation of this act. This is intended to offer the agency some flexibility with regard to managing these leases. The effective date is also extended to create time to promulgate any necessary regulations.   JUSTIFICATION: Leases of private properties to state government entities are abundant throughout New York. Often, state leases are highly sought after by landlords as they are deemed to be very valuable and state government is generally a steady and reliable tenant. By their nature, LLCs are created to conduct business while also protecting the individuals involved in the companies, and often times to protect another LLC within the LLC. The intent of these protections is appropriate; however, at times it is hard to know who the driving or managing force behind the LLC is. Additionally, LLCs have generated a large amount of media and good government group attention due to the large amount of political contributions that are made through LLCs to candidates. In as much as there is no reason to believe that contrib- utions by LLCs would influence selection of potential sites for lease agreements, it is apparent that in today's atmosphere of challenges related to ethical transgressions committed by elected officials at all levels of government, that it is best to consider enhancing transparency when it comes to LLCs executing state leases. This legislation, the LLC Landlord Transparency Bill, accomplishes the goal of requiring such state leases to disclose the names and residence addresses of LLC members, managers, and other authorized entities down to the natural persons. This bill will add sunlight to another process in government which is necessary to further enhance the public trust in government.   PRIOR LEGISLATIVE HISTORY: 2016 A.9639/S7566- Passed the Assembly 2017-2018 A.3242/S2206- Passed the Assembly 2019-2020 A.3832- Passed the Assembly   FISCAL IMPLICATIONS: None.   EFFECTIVE DATE: The sixtieth day after it shall become law.
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