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

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

New Bill.

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.