Relates to the authority of the commissioner of general services to lease public buildings

Title of bill

An act to amend the public buildings law, in relation to the authority of the commissioner of general services to lease public buildings

Purpose or general idea of bill

To require the disclosure of the names and residential addresses of the natural persons who are members, managers, or other authorized persons of a limited liability company when such limited liability company executes a lease agreement in which the State of New York is the tenant.

Summary of specific provisions

Section 1- Amends subdivision 12 of section three of the public buildings law to require that any limited liability company (LLC) which executes a lease agreement in which the state of New York is the tenant disclose the names and residence addresses of any natural persons who are members, managers, or other authorized persons. This extends the same requirement to any LLCs which are members, partners, or other authorized persons within the LLC executing the lease agreement.

Section 2 - Amends the same section of law as amended by Section 1 of this act to account for a sunset provision. Section 2 of this act required that if the current law (as amended by section 1 of this act) were to expire, the law as reverted would include the same LLC lease language included in this act.

Section 3 - Effective date.

Justification

Leases of private properties to state government entities are abundant throughout New York. Often, state leases are highly sought after by landlords as they are very valuable and state government is generally a steady and reliable tenant.

By their nature, LLCs are created to conduct business while also protecting the individuals involved in the companies, and often times to protect another LLC within the LLC. The intent of these protections is appropriate; however at times it is hard to know who the driving or managing force behind the LLC is.

Additionally, LLCs have generated a large amount of media and good government group attention due to the large amount of political contributions that are made through LLCs to candidates. In as much as there is no reason to believe that contributions by LLCs would influence selection of potential sites for lease agreements, it is apparent that in today's atmosphere of challenges related to ethical transgressions committed by elected officials at all levels of government, that it is best to consider enhancing transparency when it comes to LLCs executing state leases.

This legislation, the LLC Landlord Transparency Bill, accomplishes the goal of requiring such state leases to disclose the names and residence addresses of LLC members, managers, and other authorized entities down to the natural persons. This bill will add sunlight to another process in government which is necessary to further enhance the public trust in government.

Prior legislative history

New bill. FISCAL IMPLICATIONS :

None.

Effective date

This act shall take effect immediately, provided that the provisions of this act shall only apply to leases entered into after such effective date, and provided further that the amendments to subdivision 12 of section 3 of the public buildings law made by section one of this act shall be subject to the expiration and reversion of such subdivision pursuant to chapter 57 of the laws of 2007, as amended, when upon such date the provisions of section two of this act shall take effect.