S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2556
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 21, 2025
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Corporations,  Authorities
   and Commissions
 
 AN ACT to amend the public authorities law, in relation to disposals and
   contracts for disposal of property

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subparagraphs (v) and (vi) of paragraph c of subdivision  6
 of section 2897 of the public authorities law, as amended by chapter 506
 of the laws of 2009, are amended to read as follows:
   (v)  [under  those  circumstances]  THE DISPOSAL WILL BE FOR LESS THAN
 FAIR MARKET VALUE AS permitted by subdivision seven of this section; or
   (vi) [such action is otherwise authorized  by  law]  THE  DISPOSAL  IS
 EXPRESSLY  EXEMPTED FROM PROVISIONS OF PARAGRAPHS A AND B OF THIS SUBDI-
 VISION.
   § 2. Subdivision 6 of section 2897 of the public  authorities  law  is
 amended by adding a new paragraph g to read as follows:
   G. ANY DISPOSALS AND CONTRACTS FOR DISPOSAL OF PROPERTY THAT CONTAIN A
 RIGHT  OF  FIRST REFUSAL MUST ENSURE THAT THE PROPERTY IS TRANSFERRED AT
 OR ABOVE FAIR MARKET VALUE AT THE TIME WHEN SUCH RIGHT IS EXERCISED.
   § 3. Subdivision 7 of section 2897 of the public authorities  law,  as
 added by chapter 506 of the laws of 2009, is amended to read as follows:
   7.  Disposal  of property for less than fair market value. a. No asset
 owned, leased or otherwise in the control of a public authority  may  be
 sold, leased, or otherwise alienated for less than its fair market value
 except if:
   (i)  the  transferee  is  a government or other public entity, and the
 terms and conditions of the transfer require that the ownership and  use
 of the asset will remain with the government or any other public entity;
 OR

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05202-01-5
 S. 2556                             2
              

 
   (ii)  IT  IS  IN  THE PUBLIC INTEREST TO DO SO AND the [purpose of the
 transfer is within the purpose, mission  or  governing  statute  of  the
 public authority; or
   (iii)  in]  DISPOSAL  IS  MADE  IN COMPLIANCE WITH PARAGRAPH B OF THIS
 SUBDIVISION.
   B. IN the event a public authority seeks to transfer an asset for less
 than its fair market value to other than a governmental  entity,  [which
 disposal  would  not be consistent with the authority's mission, purpose
 or governing statutes,] such authority shall provide  written  notifica-
 tion  thereof  to  the  governor,  the  speaker of the assembly, and the
 temporary president of the senate, and such proposed transfer  shall  be
 subject  to denial by the governor, the senate, or the assembly.  Denial
 by the governor shall take the form of a  signed  certification  by  the
 governor.  Denial by either house of the legislature shall take the form
 of a resolution by such house. The governor and each house of the legis-
 lature shall take any such action within sixty days of receiving notifi-
 cation of such proposed transfer during the months  of  January  through
 June,  provided  that  if  the  legislature  receives  notification of a
 proposed transfer during the months of July through December, the legis-
 lature may take any such action within sixty days of  January  first  of
 the  following year. If no such resolution or certification is performed
 within sixty days of such notification of the proposed transfer  to  the
 governor, senate, and assembly, the public authority may effectuate such
 transfer.  Provided, however, that with respect to a below market trans-
 fer by a local authority [that is not within  the  purpose,  mission  or
 governing  statute  of  the  local  authority], if the governing statute
 provides for the approval of such transfer by the executive and legisla-
 tive branches of the political subdivision in which such local authority
 resides, and the transfer is of property obtained by the authority  from
 that  political  subdivision,  then such approval shall be sufficient to
 permit the transfer.
   [b.] C. In the event a below  fair  market  value  asset  transfer  is
 proposed,  the  following  information must be provided to the authority
 board and the public:
   (i) a full description of the asset;
   (ii) [an] A CURRENT appraisal of the fair market value  of  the  asset
 and  any  other information establishing the fair market value sought by
 the board;
   (iii) a description of the purpose of the transfer, and  a  reasonable
 statement  of the kind and amount of the benefit to the public resulting
 from the transfer, including  but  not  limited  to  the  kind,  number,
 location,  wages or salaries of jobs created or preserved as required by
 the transfer, the benefits, if any, to  the  communities  in  which  the
 asset is situated as are required by the transfer;
   (iv)  a  statement  of  the  value to be received compared to the fair
 market value;
   (v) the names AND OWNERSHIP INFORMATION of any private parties partic-
 ipating in the transfer, and if different than the statement required by
 subparagraph (iv) of this paragraph, a statement of the value  to  [the]
 EACH private party; and
   (vi)  the  names  of  other private parties who have made an offer for
 such asset, the value offered, and the purpose for which the  asset  was
 sought to be used.
   [c.]  D.  Before  approving the disposal of any property for less than
 fair market value, the board of an authority shall consider the informa-
 tion described in paragraph [b] C of this subdivision and make a written
 S. 2556                             3

 determination that there is no reasonable alternative  to  the  proposed
 below-market transfer that would achieve the same purpose of such trans-
 fer.
   §  4.  This  act  shall  take  effect  immediately  and shall apply to
 disposals and contracts for disposal of property  occurring  or  entered
 into on or after such date.