Bill S446-2013

Relates to the sale or transfer of certain real property by the state or public authorities

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.

Details

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  • Jan 8, 2014: REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • Jan 9, 2013: REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS

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.


Text

STATE OF NEW YORK ________________________________________________________________________ 446 2013-2014 Regular Sessions IN 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
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
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.

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