NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3203A
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.
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
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
The sixtieth day after it shall become law.