Authorizes the transfer of certain funds from the state comptroller to the natural heritage trust

Summary of specific provisions

Section 1 of the bill is the legislative intent.

Section 2 authorizes and directs the state comptroller to transfer three million dollars from the non-expendable trust fund of the fiduciary fund of the state, together with accrued interest at the time of transfer, to the natural heritage trust for investment as directed by this act.

Section 3 provides that upon transfer from the office of state comptroller, the funds shall be deposited into a dedicated account, to be administered as a permanent endowment and the Natural Heritage Trust shall invest such funds in accordance with its investment guidelines.

Section 3 further provides that the natural heritage trust shall transfer income and earnings from the endowment account to the office of parks, recreation and historic preservation to be used solely for the care and maintenance of the Rockefeller state park preserve, in accordance with the directions and restrictions established by the John D. Rockefeller III fund. In furtherance of such directions, no part of the endowment may be used for new capital construction, the principal shall not be invaded for any purpose, and any income and earnings in excess of that disbursed for the care and maintenance of the Rockefeller state park preserve shall accrue to the endowment account.

Section 4 is the effective date.

Justification

Rockefeller State Park Preserve (the "Preserve"), located in Westchester County, was created through gifts of land by members of the Rockefeller family. The Preserve is under the jurisdiction of the New York State Office of Parks, Recreation and Historic Preservation.

In 1983, the John D. Rockefeller III Fund made a gift of three million dollars to New York State, to create a permanent endowment (the "Endowment") to be used for the care and maintenance of the Preserve.

Under the terms of the donation, the Endowment is under the custody and management of the State Comptroller's office. By law, the State

Comptroller is required to invest the Endowment in a very conservative manner. As a result of the decline in interest rates on bonds and investment securities over the past decade, the income generated from the Endowment has decreased over the years from a high of $161,139 in 2006-07, to $4,555 in 2013-14.

The Natural Heritage Trust (NHT) was established in 1968 as a public benefit corporation pursuant to Article 55 of the Arts and Cultural Affairs Law. The NHT is governed by a Board of Directors comprised of the Commissioner of the Office of Parks, Recreation and Historic Preservation, the Commissioner of the Department of Environmental Conservation, the Secretary of State and the Chair of the State Council of Parks, a statewide parks, recreation and historic preservation advisory board. The NHT's mission is to receive and administer gifts, grants and contributions in support of parks, conservation, outdoor recreation and historic preservation purposes. The NHT manages more than $25 million of assets, including a number of endowments that benefit state parks.

Funds held in trust by the NHT are invested in a traditional approach commonly used by universities, hospitals, community foundations and nonprofit organizations, generating significantly higher returns than experienced by the Endowment. Based on the NHT's endowment investment policy it is expected that the Endowment for the Preserve will generate approximately 5 percent annually, or $150,000 in the first year (in comparison to the $4,555 generated in 2013-14 under the State Comptroller's conservative investment requirements).

Transferring the Endowment to the NHT will increase investment opportunities and income generation for the Endowment and provide much needed revenue for the maintenance and care of the Preserve.

This legislation is supported by the Friends of the Rockefeller State Park Preserve, established in 1997 to encourage public participation in protecting and maintaining the Preserve, the Alliance for New York State Parks - a statewide not-for-profit organization that protects and enhances state parks and historic sites, and members of the Rockefeller family. The legislative sponsors communicated with the Office of the State Comptroller and the Office of State Parks, Recreation and Historic Preservation in developing the legislation. The State Comptroller's office does not object to the transfer of the Endowment to the NHT.

Prior legislative history

New bill.

Fiscal implications

None.

Effective date

This act shall take effect immediately.