Relates to the sale or transfer of certain real property by the state or public authorities; requires mandatory review by the attorney general and comptroller of the sale of certain real property valued at over one hundred thousand dollars and not a part of a competitive bidding process by the state or a public authority; requires notice to members of the legislature and county executives in districts and counties in which land subject to transfer is located of the proposed transfer of state property between state departments, divisions, bureaus, agencies, state agencies, or to a public authority or public benefit corporation.

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S446-2013 Actions

• Jan 9, 2013: REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS

S446-2013 Memo

BILL NUMBER:S446

TITLE OF BILL:

An act
to amend
the public authorities law and the public lands law,
in relation to
the sale or transfer
of certain real
property by the state or
public authorities

PURPOSE OR GENERAL IDEA OF BILL:

The legislation amends the public authorities law and public lands law
by mandating review and approval by the attorney general and the
comptroller of all proposed sales of real property by the state or
public authorities to private entities with an estimated fair market
value in excess of $100,000. The bill also requires review and
approval from members of legislature and the county executive in
affected areas prior to the transfer of state land to a public
authority or public benefit corporation.

SUMMARY OF PROVISIONS:

Section 1 of the bill amends Section 2897 of the public authorities
law by adding a new subdivision 8 which will require the prior review
and approval by the comptroller and the attorney general of all
negotiated contracts for the disposal of real property with an
estimated fair market value in excess of one hundred thousand dollars
to a private entity. The bill requires that language informing
parties of the mandated review and approval must be included in the
contract. This section also sets forth that the comptroller and
attorney general must either approve or disapprove within 90 days of
submission to their respective offices otherwise the contract becomes
valid and enforceable without such approval.

Section 2 of the bill amends the public lands law by adding a new
section 33-a which will require the prior review and approval of the
comptroller and the attorney general of all private sale contracts
where a public sale is not otherwise required and the estimated fair
market value is in excess of one hundred thousand dollars. The bill
requires that language informing parties of the mandated review and
approval must be included in the contract.
This section also sets forth that the comptroller and attorney general
must either approve or disapprove within 90 days of submission to
their respective offices otherwise the contract becomes valid and
enforceable without such approval. The provisions of this section
will also supersede other statutes governing disposal of state lands
which are inconsistent with this section.

Section 3 of the bill amends subdivision 4 of section 3 of the public
lands law, as amended by chapter 785 of the laws of 1982, by
renumbering and adding a new subdivision 4 c that requires notice to
Senators, Members of the Assembly and County Executives in whose


districts the proposed sale is to take place prior to the transfer of
land from the state to a public authority or public benefit
corporation. State Legislators and country executives have 30 days
within which to provide written notice of objection to the transfer
with the Commissioner of General Services. The Director of Budget and
the Secretary of State shall review all objections and make a final
decision to affirm or reverse the proposed transfer within 6 months
of the notice of objection.

Section 4 of the bill provides for this act to take effect on the
ninetieth day after it becomes law.

JUSTIFICATION:

Public authorities are given wide latitude in the management of
publicly owned real property and as a result have an important fiscal
and fiduciary responsibility to the taxpayers of this state.

Therefore it is important that a detailed review be completed by both
the attorney general and the comptroller prior to any sale of real
property by a public authority, or by the state (when a public sale
is not required) to a private entity valued in excess of $100,000.

It is equally important that legislators and county executives be
given notice and the opportunity to object to transfers of state
owned land to public authorities or public benefit corporations that
affect their constituencies.

Principles of good government, including transparency and
accountability, call out for such notice and review provisions to
ensure that the taxpayers' interests are being protected.

PRIOR LEGISLATIVE HISTORY:

2011:  S.5908

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

To be determined.

EFFECTIVE DATE:

This act shall take effect on the ninetieth day after it shall have
become a law.

S446-2013 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                     446

                         2013-2014 Regular Sessions

                              I N  SENATE

                                 (PREFILED)

                               January 9, 2013
                                 ___________

  Introduced  by  Sen.  AVELLA -- 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 and the public lands law, in
    relation to the sale or transfer of certain real property by the state
    or public authorities

    THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section  1.   Section 2897 of the public authorities law is amended by
  adding a new subdivision 8 to read as follows:

    8. COMPTROLLER AND ATTORNEY GENERAL APPROVAL OF CONTRACTS. A.  NEGOTI-
  ATED CONTRACTS FOR THE DISPOSAL OF REAL PROPERTY WITH AN ESTIMATED  FAIR
  MARKET  VALUE  IN  EXCESS  OF  ONE HUNDRED THOUSAND DOLLARS TO A PRIVATE
  ENTITY SHALL REQUIRE  SUPERVISION  IN  THE  FORM  OF  PRIOR  REVIEW  AND
  APPROVAL  OF  SUCH CONTRACTS AND ANY SUCH CONTRACT ENTERED INTO SHALL BE
  SUBMITTED TO THE COMPTROLLER AND THE ATTORNEY GENERAL FOR THEIR APPROVAL
  AND SHALL NOT BE A VALID ENFORCEABLE CONTRACT UNLESS IT SHALL FIRST HAVE
  BEEN SO APPROVED. THE COMPTROLLER, IN  CONSULTATION  WITH  THE  ATTORNEY
  GENERAL, SHALL PROMULGATE SUCH RULES AND REGULATIONS AS MAY BE NECESSARY
  TO  CARRY  OUT  THEIR RESPONSIBILITIES UNDER THIS SECTION, INCLUDING BUT
  NOT LIMITED TO THE STANDARDS FOR APPROVING  CONTRACTS  SUBJECT  TO  THIS
  SUBDIVISION.
    B.  WHERE A CONTRACT IS SUBJECT TO MANDATORY REVIEW BY THE COMPTROLLER
  AND THE ATTORNEY GENERAL PURSUANT TO PARAGRAPH A  OF  THIS  SUBDIVISION,
  THE  VENDOR  PUBLIC  AUTHORITY  SHALL INCLUDE OR CAUSE TO BE INCLUDED IN
  EACH SUCH CONTRACT A PROVISION  INFORMING  THE  OTHER  PARTY  THAT  SUCH
  CONTRACT  IS  SUBJECT  TO  THE  COMPTROLLER'S AND THE ATTORNEY GENERAL'S
  APPROVAL PURSUANT TO THIS SUBDIVISION AND THE COMPTROLLER'S AUTHORITY TO
  SUPERVISE THE ACCOUNTS OF PUBLIC CORPORATIONS. IF  THE  COMPTROLLER  AND
  THE  ATTORNEY  GENERAL  HAVE  NOT  APPROVED  OR DISAPPROVED ANY CONTRACT

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD03377-01-3

 S. 446                              2

  SUBJECT TO HIS OR HER APPROVAL WITHIN NINETY DAYS OF SUBMISSION  TO  HIS
  OR  HER OFFICE, SUCH CONTRACT SHALL BECOME VALID AND ENFORCEABLE WITHOUT
  SUCH APPROVAL.
    S  2.  The public lands law is amended by adding a new section 33-a to
  read as follows:

    S 33-A. COMPTROLLER AND ATTORNEY  GENERAL  APPROVAL  OF  PRIVATE  SALE
  CONTRACTS.  1. TO THE EXTENT A PUBLIC SALE IS NOT REQUIRED AND A NEGOTI-
  ATED CONTRACT FOR THE DISPOSAL OF UNAPPROPRIATED  STATE  LANDS  WITH  AN
  ESTIMATED FAIR MARKET VALUE IN EXCESS OF ONE HUNDRED THOUSAND DOLLARS TO
  A  PRIVATE ENTITY IS DEEMED AUTHORIZED BY THE PROVISIONS OF THIS ARTICLE
  OR ANY OTHER PROVISION OF  LAW,  RULE  OR  REGULATION,  SUCH  NEGOTIATED
  CONTRACT  SHALL  REQUIRE  SUPERVISION  IN  THE  FORM OF PRIOR REVIEW AND
  APPROVAL OF SUCH CONTRACT AND ANY SUCH CONTRACT ENTERED  INTO  SHALL  BE
  SUBMITTED TO THE COMPTROLLER AND THE ATTORNEY GENERAL FOR THEIR APPROVAL
  AND  SHALL  NOT  BE A VALID ENFORCEABLE   CONTRACT UNLESS IT SHALL FIRST
  HAVE BEEN SO APPROVED. THE COMPTROLLER, IN CONSULTATION WITH THE  ATTOR-
  NEY  GENERAL,  SHALL  PROMULGATE  SUCH  RULES  AND REGULATIONS AS MAY BE
  NECESSARY TO  CARRY  OUT  THEIR  RESPONSIBILITIES  UNDER  THIS  SECTION,
  INCLUDING  BUT  NOT  LIMITED  TO  THE  STANDARDS FOR APPROVING CONTRACTS
  SUBJECT TO THIS SUBDIVISION.
    2. WHERE A CONTRACT IS SUBJECT TO MANDATORY REVIEW BY THE  COMPTROLLER
  AND  THE  ATTORNEY  GENERAL PURSUANT TO SUBDIVISION ONE OF THIS SECTION,
  THE VENDOR SHALL INCLUDE OR CAUSE TO BE INCLUDED IN EACH SUCH CONTRACT A
  PROVISION INFORMING THE OTHER PARTY THAT SUCH CONTRACT IS SUBJECT TO THE
  COMPTROLLER'S AND THE  ATTORNEY  GENERAL'S  APPROVAL  PURSUANT  TO  THIS
  SECTION.  IF  THE COMPTROLLER AND THE ATTORNEY GENERAL HAVE NOT APPROVED
  OR DISAPPROVED ANY CONTRACT SUBJECT TO HIS OR HER APPROVAL WITHIN NINETY
  DAYS OF SUBMISSION TO HIS   OR HER OFFICE, SUCH  CONTRACT  SHALL  BECOME
  VALID AND ENFORCEABLE WITHOUT SUCH APPROVAL.
    3.  THE  PROVISIONS OF THIS SECTION SHALL BE EFFECTIVE NOTWITHSTANDING
  THE PROVISIONS OF ANY OTHER GENERAL  OR  SPECIAL  LAW  RELATING  TO  THE
  DISPOSAL  OF LANDS BELONGING TO THE STATE, AND ANY SUCH STATUTE OR PARTS
  THEREOF RELATING TO SUCH DISPOSAL OF STATE LANDS  INSOFAR  AS  THEY  ARE
  INCONSISTENT WITH THE PROVISIONS OF THIS SECTION ARE HEREBY SUPERSEDED.
    S 3. Subdivision 4 of section 3 of the public lands law, as amended by
  chapter 785 of the laws of 1982, is amended to read as follows:

    4.  A.  Notwithstanding  any  other provision of this chapter or other
  statute, the commissioner of general services, upon the  application  of
  any  state  department, or a division, bureau or agency thereof, or upon
  the application of any state agency, may transfer to such state  depart-
  ment,  division,  bureau,  or  agency, or state agency, the jurisdiction
  over any lands, including lands under water, abandoned canal  lands  and
  salt  springs  reservation  land,  upon such terms and conditions as the
  commissioner may deem just and  proper  and  upon  the  consent  of  the
  department,  or a division, bureau or agency thereof, or any state agen-
  cy, already having jurisdiction over such lands and notwithstanding  any
  other provision of this chapter or other statute, authority to give such
  consent  is hereby conferred upon the head of any such state department,
  or a division, bureau or agency thereof, or any state agency;  provided,
  however,  that  if  the commissioner of general services determines that
  any such land under the jurisdiction of any state department, or a divi-
  sion, bureau or agency thereof, or any state agency other than a  public
  authority  or  public  benefit  corporation  is under utilized or is not
  being utilized in a manner consistent with the  best  interests  of  the
  state,  such  commissioner  may  on  his own initiative, and without the
  application or consent referred to above but subject  to  the  procedure

 S. 446                              3

  and  review  provided  in  section  two-a  of this article, transfer the
  jurisdiction over such land to any other state department,  or  a  divi-
  sion,  bureau  or agency thereof, or any other state agency other than a
  public authority or public benefit corporation.
    B.  Should such land be under the jurisdiction of the office of mental
  health or the office of mental retardation and  developmental  disabili-
  ties  upon  which  a  community residential facility for the disabled as
  defined in section 41.34 of the mental hygiene law exists,  the  commis-
  sioner of general services shall, prior to transferring the jurisdiction
  over  such  land to any other state department, or a division, bureau or
  agency thereof, or any other state agency other than a public  authority
  or public benefit corporation offer such land for sale at public auction
  pursuant  to  section  thirty-three  of this chapter; provided, however,
  that the provisions of section four hundred six of  the  eminent  domain
  procedure law shall apply to such property.
    C.  NO TRANSFER OF LAND, AS DESCRIBED IN THIS SUBDIVISION, OR GRANT OR
  CONVEYANCE  OF  LAND TO A PUBLIC AUTHORITY OR PUBLIC BENEFIT CORPORATION
  SHALL BE DEEMED VALID UNLESS NOTICE  IS  PROVIDED  IN  WRITING  TO  EACH
  MEMBER  OF  THE  LEGISLATURE  IN  WHOSE DISTRICT ANY PORTION OF THE LAND
  SUBJECT TO THE PROPOSED TRANSFER IS  LOCATED  AND  THE  CHIEF  EXECUTIVE
  OFFICER  OR  OFFICERS  OF THE COUNTY IN WHICH ANY PORTION OF THE LAND IS
  LOCATED. SUCH NOTICE SHALL PROVIDE A DESCRIPTION OF THE LAND,  IDENTIFI-
  CATION  OF  THE  PROPOSED  TRANSFEROR  AND TRANSFEREE STATE DEPARTMENTS,
  DIVISIONS, BUREAUS, AGENCIES,  STATE  AGENCIES,  PUBLIC  AUTHORITIES  OR
  PUBLIC BENEFIT CORPORATIONS AND THE TERMS AND CONDITIONS OF THE PROPOSED
  TRANSFER.  UNLESS WITHIN THIRTY DAYS FROM THE DATE SUCH NOTICE IS GIVEN,
  A MEMBER OF THE LEGISLATURE OR A CHIEF EXECUTIVE  OFFICER  OF  A  COUNTY
  ENTITLED  TO  NOTICE PURSUANT TO THIS PARAGRAPH OBJECTS TO SUCH PROPOSED
  ACTION, THE COMMISSIONER OF GENERAL SERVICES MAY EFFECT SUCH TRANSFER OF
  JURISDICTION. IF WITHIN THIRTY DAYS OF THE  GIVING  OF  SUCH  NOTICE,  A
  MEMBER OF THE LEGISLATURE OR A CHIEF EXECUTIVE OFFICER OF A COUNTY ENTI-
  TLED TO NOTICE PURSUANT TO THIS PARAGRAPH OBJECTS TO THE ACTION PROPOSED
  BY  THE COMMISSIONER OF GENERAL SERVICES BY FILING NOTICE TO SUCH EFFECT
  WITH THE COMMISSIONER OF GENERAL SERVICES, SUCH PROPOSED ACTION SHALL BE
  REVIEWED BY THE DIRECTOR OF THE BUDGET AND THE SECRETARY OF STATE.  THEY
  SHALL AFFIRM OR REVERSE THE PROPOSED ACTION BY THE COMMISSIONER AND THAT
  DECISION  SHALL  BE FINAL. IF THEY AFFIRM THE PROPOSED ACTION OR FAIL TO
  RENDER A DETERMINATION WITHIN SIX MONTHS OF THE DATE OF THE NOTICE,  THE
  COMMISSIONER MAY THEREUPON EFFECT SUCH TRANSFER.
    S  4.  This  act shall take effect on the ninetieth day after it shall
  have become a law.