Requires the commissioner of general services to maintain an inventory and audit of every state-owned real property or unappropriated state land that has been sold

BILL NUMBER:S7817

Title of bill

An act to amend the public lands law, in relation to the inventory of unappropriated state land sales

Purpose

The purpose of this bill is to create an auditing system to track the disposition of state-owned and unappropriated state land. This bill would require the Commissioner of General Services establish and maintain an inventory of all state-owned real property and unappropriated state land that has been sold, transferred, conveyed or exchanged and contain a reverter clause pursuant to the Public Lands Law or Unconsolidated Law.

Summary of provisions

Section 1: amends the opening paragraph of subdivision 2 of section 2 of the public lands law allowing the Commissioner of General Services to establish and maintain an inventory of all state-owned land which has been sold, transferred, conveyed or exchanged with a reverter clause and audit such transactions to ensure each met the requirements of article three of this chapter, or as provided in unconsolidated law within one year of the enactment of this bill and then every three years thereafter. The Commissioner will also report the Governor and the Legislature with a copy of the inventory and the audit status of each parcel and the audit finding.

Justification

The State has a limited supply of state-owned real property and unappropriated state land. Article 2 and 3 of the Public Lands Law provides for a structure in which State real property and unappropriated State land may be sold, transferred, conveyed and exchanged. In addition, provisions of the Unconsolidated Law permit certain state land to be sold, transferred, conveyed and exchanged.

Section 34 of the Public Lands Law and many chapters of the Unconsolidated Laws require conveyed, exchanged, sold or transferred land to be used for a specific public purpose. If the land is not used for the designated purpose, the land title reverts back to the State. There is no mechanism is in place to track if such land is being used for the designated public purpose. This presents an avenue for misuse of the land.

By requiring the Office of General Services to track and audit the land transfers permitted by the Public Lands Law and Unconsolidated Law, the State would be ensured that the conveyed land is being used for the designated purpose. If the land is not being used, it would revert back to the State.

Legislative history

2011: A.2305 (Destito) - Passed Assembly 2009-2010: A.1203 (Destito) - Passed Assembly

Fiscal implications

Minimal. Some costs would be associated with establishing a registry and auditing each property every three years.

Effective date

This act shall take effect immediately.