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A03832 Summary:

BILL NOA03832
 
SAME ASSAME AS S00983
 
SPONSORMcDonald
 
COSPNSRGalef, Stirpe, Fahy, Steck, Montesano, Crespo, Simon, Cahill, Miller MG, Colton, Blake, Gottfried, Morinello, Ashby, Pichardo, Arroyo, Lupardo, Otis
 
MLTSPNSRHyndman, Tague
 
Amd §3, Pub Bldg L
 
Relates to the authority of the commissioner of general services to lease public buildings.
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A03832 Actions:

BILL NOA03832
 
01/31/2019referred to governmental operations
02/27/2019reported
02/28/2019advanced to third reading cal.77
03/12/2019passed assembly
03/12/2019delivered to senate
03/12/2019REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
01/08/2020DIED IN SENATE
01/08/2020RETURNED TO ASSEMBLY
01/08/2020ordered to third reading cal.154
07/20/2020passed assembly
07/20/2020delivered to senate
07/20/2020REFERRED TO RULES
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A03832 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A3832
 
SPONSOR: McDonald
  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 in which 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 - Provides for the effective date.   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 very valuable and state government is generally 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 contrib- utions that are made through LLCs to candidates. In as much as there is no reason to believe that contributions 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: 2015-2016 A.9639/S7566 2017-2018 A.3242/S2206   FISCAL IMPLICATIONS: None.   EFFECTIVE DATE: This act shall take effect immediately, provided that the provisions of this act shall only apply to leases entered into after such effective date, and provided further that the amendments to subdivision 12 of section 3 of the public buildings law made by section one of this act shall be subject to the expiration and reversion of such subdivision 4 of section 27 of chapter 95 of the laws of 2000, as amended, when upon such date the provisions of section two of this act shall take effect.
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A03832 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          3832
 
                               2019-2020 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 31, 2019
                                       ___________
 
        Introduced  by M. of A. McDONALD, GALEF, STIRPE, FAHY, STECK, MONTESANO,
          CRESPO, SIMON, CAHILL, M. G. MILLER, COLTON, BLAKE,  GOTTFRIED,  MORI-
          NELLO  --  Multi-Sponsored  by  --  M.  of A. HYNDMAN -- read once and
          referred to the Committee on Governmental Operations
 
        AN ACT to amend the public buildings law, in relation to  the  authority
          of the commissioner of general services to  lease public buildings
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Subdivision 12 of section 3 of the public buildings law, as
     2  amended by section 47 of part T of chapter 57 of the laws  of  2007,  is
     3  amended to read as follows:
     4    12. Lease from time to time buildings, rooms or premises in the county
     5  of  Albany,  and  elsewhere as required, for providing space for depart-
     6  ments, commissions, boards and officers of the  state  government,  upon
     7  such  terms  and  conditions as he or she deems most advantageous to the
     8  state. Any such lease shall, however, be for a term  not  exceeding  ten
     9  years,  except that, the commissioner of general services may enter into
    10  leases for a term not exceeding fifteen years when, in the  judgment  of
    11  such  commissioner,  such  longer  term  is in the best interests of the
    12  state. Any such lease may provide for optional renewals on the  part  of
    13  the state, for terms of ten years or less. Each such lease shall contain
    14  a  clause  stating  that  the  contract of the state thereunder shall be
    15  deemed executory only to the extent of  moneys  available  therefor  and
    16  that no liability shall be incurred by the state beyond the money avail-
    17  able for such purpose.  Notwithstanding the provisions of any other law,
    18  except section sixteen hundred seventy-six of the public authorities law
    19  relating  to  use  of  dormitory  authority  facilities by the aged, the
    20  commissioner of general services shall have sole and exclusive authority
    21  to lease space for state departments, agencies, commissions, boards  and
    22  officers  within the county of Albany. Any buildings, rooms or premises,
    23  now or hereafter held by the  commissioner  of  general  services  under
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00709-01-9

        A. 3832                             2
 
     1  lease, may be sublet, in part or in whole, provided that in the judgment
     2  of  such  commissioner, and the occupying department, commission, board,
     3  and officers of the state government, such buildings, rooms or  premises
     4  are  not  for  a  time  needed. Each such lease with a limited liability
     5  company shall identify the names and residence addresses of all  natural
     6  persons  who are to be the members, managers and any authorized persons,
     7  if any, of the limited liability company, and the  names  and  residence
     8  addresses  or, if none, the business address of all shareholders, direc-
     9  tors, officers, members, managers and partners of any limited  liability
    10  company or other business entity that are to be the members, managers or
    11  authorized  persons, if any, of the limited liability company. The iden-
    12  tification of such names shall not be deemed an unwarranted invasion  of
    13  personal  privacy pursuant to article six of the public officers law. If
    14  any such member, manager or authorized person of the  limited  liability
    15  company  is itself a limited liability company or other business entity,
    16  the names  and  addresses  of  the  shareholders,  directors,  officers,
    17  members, managers and partners of the limited liability company or other
    18  business  entity  shall also be disclosed until full disclosure of ulti-
    19  mate ownership by natural persons is  achieved.  For  purposes  of  this
    20  subdivision,  the  terms  "members,"  "managers,"  "authorized  person,"
    21  "limited liability company" and "other business entity" shall  have  the
    22  same  meaning  as  those terms are defined in section one hundred two of
    23  the limited liability company law. Notwithstanding any  other  provision
    24  of law to the contrary, if bonds or notes are issued pursuant to section
    25  sixteen  hundred  eighty-n of the public authorities law for the purpose
    26  of acquiring a building or other facility previously financed by a lease
    27  or lease-purchase obligation as  authorized  herein,  the  state  agency
    28  which  is  the  tenant  in  occupancy  shall  be authorized to remit tax
    29  payments or payments in  lieu  of  thereof  to  the  appropriate  taxing
    30  authority  in  a manner consistent with the process and term established
    31  under the original lease or lease-purchase for the subject property  for
    32  a  period  coincident  with  the term of the lease as established at the
    33  commencement of the term thereof. The state may undertake  a  certiorari
    34  review of assessments that may be imposed from time to time.
    35    §  2.  Subdivision  12  of  section  3 of the public buildings law, as
    36  amended by section 48 of part T of chapter 57 of the laws  of  2007,  is
    37  amended to read as follows:
    38    12. Lease from time to time buildings, rooms or premises in the county
    39  of  Albany,  and  elsewhere as required, for providing space for depart-
    40  ments, commissions, boards and officers of the  state  government,  upon
    41  such  terms  and  conditions as he or she deems most advantageous to the
    42  state. Any such lease shall, however, be for a term  not  exceeding  ten
    43  years,  but  may provide for optional renewals on the part of the state,
    44  for terms of ten years or less. Each such lease shall contain  a  clause
    45  stating that the contract of the state thereunder shall be deemed execu-
    46  tory only to the extent of moneys available therefor and that no liabil-
    47  ity  shall  be incurred by the state beyond the money available for such
    48  purpose. Each such lease with a limited liability company shall identify
    49  the names and residence addresses of all natural persons who are  to  be
    50  the members, managers and any authorized persons, if any, of the limited
    51  liability  company,  and  the names and residence addresses or, if none,
    52  the business address of all share holders, directors, officers, members,
    53  managers and partners of any limited liability company or other business
    54  entity that are to be the members, managers or  authorized  persons,  if
    55  any,  of the limited liability company. The identification of such names
    56  shall not be deemed an unwarranted invasion of personal privacy pursuant

        A. 3832                             3
 
     1  to article six of the public officers law. If any such  member,  manager
     2  or authorized person of the limited liability company is itself a limit-
     3  ed  liability  company or other business entity, the names and addresses
     4  of the shareholders, directors, officers, members, managers and partners
     5  of  the  limited liability company or another business entity shall also
     6  be disclosed until full disclosure  of  ultimate  ownership  by  natural
     7  persons  is  achieved.  For  purposes  of  this  subdivision,  the terms
     8  "members," "managers," "authorized person," "limited liability  company"
     9  and  "other  business entity" shall have the same meaning as those terms
    10  are defined in section one hundred two of the limited liability  company
    11  law.  Notwithstanding  the  provisions  of any other law, except section
    12  sixteen hundred seventy-six of the public authorities  law  relating  to
    13  use  of  dormitory authority facilities by the aged, the commissioner of
    14  general services shall have sole and exclusive authority to lease  space
    15  for state departments, agencies, commissions, boards and officers within
    16  the county of Albany. Any buildings, rooms or premises, now or hereafter
    17  held by the commissioner of general services under lease, may be sublet,
    18  in  part or in whole, provided that in the judgment of the commissioner,
    19  and the occupying department, commission, board,  and  officers  of  the
    20  state  government,  such buildings, rooms or premises are not for a time
    21  needed.
    22    § 3. This act shall take effect immediately, provided that:
    23    a. the provisions of this act shall only apply to leases entered  into
    24  after such effective date; and
    25    b.  the amendments to subdivision 12 of section 3 of the public build-
    26  ings law made by section one of this act shall be subject to the expira-
    27  tion and reversion of such subdivision  pursuant  to  subdivision  4  of
    28  section 27 of chapter 95 of the laws of 2000, as amended, when upon such
    29  date the provisions of section two of this act shall take effect.
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