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.
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.