NY State Senate Bill 2017-S2206

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to investigations and government operations
Jan 12, 2017	referred to investigations and government operations

2017-S2206 (ACTIVE) - Details

See Assembly Version of this Bill:: A3242
Current Committee:: Senate Investigations And Government Operations
Law Section:: Public Buildings Law
Laws Affected:: Amd §3, Pub Bldg L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S7566, A9639
2019-2020: S983, A3832
2021-2022: S1501, A3203
2023-2024: S2694, A1628

2017-S2206 (ACTIVE) - Summary

Relates to the authority of the commissioner of general services to lease public buildings.

2017-S2206 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S2206

 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
buildings 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 - 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
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 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 :

New bill.
 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 pursuant to chapter 57 of the laws of
2007, as amended, when upon such date the provisions of section two of
this act shall take effect.

2017-S2206 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2206
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 12, 2017
                                ___________
 
 Introduced  by  Sen. BRESLIN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment 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:
 
   Section 1. Subdivision 12 of section 3 of the public buildings law, as
 amended by section 47 of part T of chapter 57 of the laws  of  2007,  is
 amended to read as follows:
   12. Lease from time to time buildings, rooms or premises in the county
 of  Albany,  and  elsewhere as required, for providing space for depart-
 ments, commissions, boards and officers of the  state  government,  upon
 such  terms  and  conditions as he or she deems most advantageous to the
 state. Any such lease shall, however, be for a term  not  exceeding  ten
 years,  except that, the commissioner of general services may enter into
 leases for a term not exceeding fifteen years when, in the  judgment  of
 such  commissioner,  such  longer  term  is in the best interests of the
 state. Any such lease may provide for optional renewals on the  part  of
 the state, for terms of ten years or less. Each such lease shall contain
 a  clause  stating  that  the  contract of the state thereunder shall be
 deemed executory only to the extent of  moneys  available  therefor  and
 that no liability shall be incurred by the state beyond the money avail-
 able for such purpose.  Notwithstanding the provisions of any other law,
 except section sixteen hundred seventy-six of the public authorities law
 relating  to  use  of  dormitory  authority  facilities by the aged, the
 commissioner of general services shall have sole and exclusive authority
 to lease space for state departments, agencies, commissions, boards  and
 officers  within the county of Albany. Any buildings, rooms or premises,
 now or hereafter held by the  commissioner  of  general  services  under
 lease, may be sublet, in part or in whole, provided that in the judgment
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD07529-01-7

 S. 2206                             2
 
 of  such  commissioner, and the occupying department, commission, board,
 and officers of the state government, such buildings, rooms or  premises
 are  not  for  a  time  needed. EACH SUCH LEASE WITH A LIMITED LIABILITY
 COMPANY  SHALL IDENTIFY THE NAMES AND RESIDENCE ADDRESSES OF ALL NATURAL
 PERSONS WHO ARE TO BE THE MEMBERS, MANAGERS AND ANY AUTHORIZED  PERSONS,
 IF  ANY,  OF  THE LIMITED LIABILITY COMPANY, AND THE NAMES AND RESIDENCE
 ADDRESSES OR, IF NONE, THE BUSINESS ADDRESS OF ALL SHAREHOLDERS,  DIREC-
 TORS,  OFFICERS, MEMBERS, MANAGERS AND PARTNERS OF ANY LIMITED LIABILITY
 COMPANY OR OTHER BUSINESS ENTITY THAT ARE TO BE THE MEMBERS, MANAGERS OR
 AUTHORIZED PERSONS, IF ANY, OF THE LIMITED LIABILITY COMPANY. THE  IDEN-
 TIFICATION  OF SUCH NAMES SHALL NOT BE DEEMED AN UNWARRANTED INVASION OF
 PERSONAL PRIVACY PURSUANT TO ARTICLE SIX OF THE PUBLIC OFFICERS LAW.  IF
 ANY  SUCH  MEMBER, MANAGER OR AUTHORIZED PERSON OF THE LIMITED LIABILITY
 COMPANY IS ITSELF A LIMITED LIABILITY COMPANY OR OTHER BUSINESS  ENTITY,
 THE  NAMES  AND  ADDRESSES  OF  THE  SHAREHOLDERS,  DIRECTORS, OFFICERS,
 MEMBERS, MANAGERS AND PARTNERS OF THE LIMITED LIABILITY COMPANY OR OTHER
 BUSINESS ENTITY SHALL ALSO BE DISCLOSED UNTIL FULL DISCLOSURE  OF  ULTI-
 MATE  OWNERSHIP  BY  NATURAL  PERSONS  IS ACHIEVED. FOR PURPOSES OF THIS
 SUBDIVISION,  THE  TERMS  "MEMBERS,"  "MANAGERS,"  "AUTHORIZED  PERSON,"
 "LIMITED  LIABILITY  COMPANY" AND "OTHER BUSINESS ENTITY" SHALL HAVE THE
 SAME MEANING AS THOSE TERMS ARE DEFINED IN SECTION ONE  HUNDRED  TWO  OF
 THE  LIMITED  LIABILITY COMPANY LAW. Notwithstanding any other provision
 of law to the contrary, if bonds or notes are issued pursuant to section
 sixteen hundred eighty-n of the public authorities law for  the  purpose
 of acquiring a building or other facility previously financed by a lease
 or  lease-purchase  obligation  as  authorized  herein, the state agency
 which is the tenant in  occupancy  shall  be  authorized  to  remit  tax
 payments  or  payments  in  lieu  of  thereof  to the appropriate taxing
 authority in a manner consistent with the process and  term  established
 under  the original lease or lease-purchase for the subject property for
 a period coincident with the term of the lease  as  established  at  the
 commencement  of  the term thereof. The state may undertake a certiorari
 review of assessments that may be imposed from time to time.
   § 2. Subdivision 12 of section 3  of  the  public  buildings  law,  as
 amended  by  section  48 of part T of chapter 57 of the laws of 2007, is
 amended to read as follows:
   12. Lease from time to time buildings, rooms or premises in the county
 of Albany, and elsewhere as required, for providing  space  for  depart-
 ments,  commissions,  boards  and officers of the state government, upon
 such terms and conditions as he or she deems most  advantageous  to  the
 state.  Any  such  lease shall, however, be for a term not exceeding ten
 years, but may provide for optional renewals on the part of  the  state,
 for  terms  of ten years or less. Each such lease shall contain a clause
 stating that the contract of the state thereunder shall be deemed execu-
 tory only to the extent of moneys available therefor and that no liabil-
 ity shall be incurred by the state beyond the money available  for  such
 purpose. EACH SUCH LEASE WITH A LIMITED LIABILITY COMPANY SHALL IDENTIFY
 THE  NAMES  AND RESIDENCE ADDRESSES OF ALL NATURAL PERSONS WHO ARE TO BE
 THE MEMBERS, MANAGERS AND ANY AUTHORIZED PERSONS, IF ANY, OF THE LIMITED
 LIABILITY COMPANY, AND THE NAMES AND RESIDENCE ADDRESSES  OR,  IF  NONE,
 THE BUSINESS ADDRESS OF ALL SHARE HOLDERS, DIRECTORS, OFFICERS, MEMBERS,
 MANAGERS AND PARTNERS OF ANY LIMITED LIABILITY COMPANY OR OTHER BUSINESS
 ENTITY  THAT  ARE  TO BE THE MEMBERS, MANAGERS OR AUTHORIZED PERSONS, IF
 ANY, OF THE LIMITED LIABILITY COMPANY. THE IDENTIFICATION OF SUCH  NAMES
 SHALL NOT BE DEEMED AN UNWARRANTED INVASION OF PERSONAL PRIVACY PURSUANT
 TO  ARTICLE  SIX OF THE PUBLIC OFFICERS LAW. IF ANY SUCH MEMBER, MANAGER

 S. 2206                             3
 
 OR AUTHORIZED PERSON OF THE LIMITED LIABILITY COMPANY IS ITSELF A LIMIT-
 ED LIABILITY COMPANY OR OTHER BUSINESS ENTITY, THE NAMES  AND  ADDRESSES
 OF THE SHAREHOLDERS, DIRECTORS, OFFICERS, MEMBERS, MANAGERS AND PARTNERS
 OF  THE  LIMITED LIABILITY COMPANY OR ANOTHER BUSINESS ENTITY SHALL ALSO
 BE DISCLOSED UNTIL FULL DISCLOSURE  OF  ULTIMATE  OWNERSHIP  BY  NATURAL
 PERSONS  IS  ACHIEVED.  FOR  PURPOSES  OF  THIS  SUBDIVISION,  THE TERMS
 "MEMBERS," "MANAGERS," "AUTHORIZED PERSON," "LIMITED LIABILITY  COMPANY"
 AND  "OTHER  BUSINESS ENTITY" SHALL HAVE THE SAME MEANING AS THOSE TERMS
 ARE DEFINED IN SECTION ONE HUNDRED TWO OF THE LIMITED LIABILITY  COMPANY
 LAW.  Notwithstanding  the  provisions  of any other law, except section
 sixteen hundred seventy-six of the public authorities  law  relating  to
 use  of  dormitory authority facilities by the aged, the commissioner of
 general services shall have sole and exclusive authority to lease  space
 for state departments, agencies, commissions, boards and officers within
 the county of Albany. Any buildings, rooms or premises, now or hereafter
 held by the commissioner of general services under lease, may be sublet,
 in  part or in whole, provided that in the judgment of the commissioner,
 and the occupying department, commission, board,  and  officers  of  the
 state  government,  such buildings, rooms or premises are not for a time
 needed.
   § 3. This act shall take effect immediately, provided that:
   a. the provisions of this act shall only apply to leases entered  into
 after such effective date; and
   b.  the amendments to subdivision 12 of section 3 of the public build-
 ings law made by section one of this act shall be subject to the expira-
 tion and reversion of such subdivision  pursuant  to  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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Senate Bill S2206

Sponsored By

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

2017-S2206 (ACTIVE) - Details

2017-S2206 (ACTIVE) - Summary

2017-S2206 (ACTIVE) - Sponsor Memo

2017-S2206 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S2206

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Sponsored By

Neil D. Breslin

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

2017-S2206 (ACTIVE) - Details

2017-S2206 (ACTIVE) - Summary

2017-S2206 (ACTIVE) - Sponsor Memo

2017-S2206 (ACTIVE) - Bill Text download pdf

Comments