What's happening
This bill requires leases with limited liability companies for state use to disclose the names and addresses of all ultimate natural person owners.
Why it matters
Increases transparency in state leasing. By requiring disclosure of the ultimate natural person owners behind LLCs, the bill aims to prevent anonymous entities from leasing property to the state, which can help identify potential conflicts of interest or self-dealing.
Discourages use of complex ownership structures to hide beneficiaries. The requirement extends through all layers of ownership, mandating disclosure until actual human owners are named, not just shell companies or holding entities. This closes a loophole often used for secrecy.
Balances transparency with privacy law. The bill specifies that releasing this ownership information does not constitute an unwarranted invasion of personal privacy under state law, making clear that the public interest in disclosure outweighs privacy concerns in this context.
Applies only to new leases going forward. The changes affect only leases signed after the law takes effect, meaning existing agreements are not retroactively impacted—this provides clarity and limits disruption for current leaseholders.
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Who cares
Office of General Services
The commissioner would have to include detailed LLC ownership and management disclosures in new leases with limited liability companies.
LLC landlords leasing space to the state
New leases would have to identify members, managers and authorized persons, tracing ownership through business entities to the ultimate individual owners.
Individuals behind LLC landlords
Members, managers and other covered individuals would have their names and addresses identified in leases, and disclosure of their names could not be deemed an unwarranted invasion of personal privacy under the Freedom of Information Law.
Government transparency advocates and reporters
The required disclosures would help them identify the individuals behind LLCs leasing buildings or office space to the state.
Headline styles
Reveal LLC Landlords' Identities
Plain English, a few words. Used as the page title.
Sponsors
Assembly Member · Assembly District 108
13 Co-sponsors
2 Multi-sponsors
History
- Ordered to third reading cal.259
- Returned to assembly
- Died in senate
- Referred to investigations and government operations
- Delivered to senate
- Passed assembly
- Advanced to third reading cal.75
- Reported
- Referred to governmental operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Disclose LLC Owners for Leases
In Senate Committee · Investigations And Government Operations · Sponsor Neil D. Breslin
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3242
2017-2018 Regular Sessions
IN ASSEMBLY
January 27, 2017
Introduced by M. of A. McDONALD, GALEF, STIRPE, FAHY, STECK, MONTESANO, CRESPO, SIMON, CAHILL, M. G. MILLER, COLTON, BLAKE, GOTTFRIED -- Multi-Sponsored by -- M. of A. HYNDMAN, LOPEZ -- read once and referred to the Committee on Governmental Operations
AN ACT to amend the public buildings law, in relation to the authority of the commissioner of general services to lease public buildings
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 12 of section 3 of the public buildings law, as amended by section 47 of part T of chapter 57 of the laws of 2007, is amended to read as follows:
12. Lease from time to time buildings, rooms or premises in the county of Albany, and elsewhere as required, for providing space for departments, commissions, boards and officers of the state government, upon such terms and conditions as he or she deems most advantageous to the state. Any such lease shall, however, be for a term not exceeding ten years, except that, the commissioner of general services may enter into leases for a term not exceeding fifteen years when, in the judgment of such commissioner, such longer term is in the best interests of the state. Any such lease may provide for optional renewals on the part of the state, for terms of ten years or less. Each such lease shall contain a clause stating that the contract of the state thereunder shall be deemed executory only to the extent of moneys available therefor and that no liability shall be incurred by the state beyond the money available for such purpose. Notwithstanding the provisions of any other law, except section sixteen hundred seventy-six of the public authorities law relating to use of dormitory authority facilities by the aged, the commissioner of general services shall have sole and exclusive authority to lease space for state departments, agencies, commissions, boards and officers within the county of Albany. Any buildings, rooms or premises, now or hereafter held by the commissioner of general services under
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07529-01-7
A. 3242 2
lease, may be sublet, in part or in whole, provided that in the judgment of such commissioner, and the occupying department, commission, board, and officers of the state government, such buildings, rooms or premises are not for a time needed. Each such lease with a limited liability company shall identify the names and residence addresses of all natural persons who are to be the members, managers and any authorized persons, if any, of the limited liability company, and the names and residence addresses or, if none, the business address of all shareholders, directors, officers, members, managers and partners of any limited liability company or other business entity that are to be the members, managers or authorized persons, if any, of the limited liability company. The identification of such names shall not be deemed an unwarranted invasion of personal privacy pursuant to article six of the public officers law. If any such member, manager or authorized person of the limited liability company is itself a limited liability company or other business entity, the names and addresses of the shareholders, directors, officers, members, managers and partners of the limited liability company or other business entity shall also be disclosed until full disclosure of ultimate ownership by natural persons is achieved. For purposes of this subdivision, the terms "members," "managers," "authorized person," "limited liability company" and "other business entity" shall have the same meaning as those terms are defined in section one hundred two of the limited liability company law. Notwithstanding any other provision of law to the contrary, if bonds or notes are issued pursuant to section sixteen hundred eighty-n of the public authorities law for the purpose of acquiring a building or other facility previously financed by a lease or lease-purchase obligation as authorized herein, the state agency which is the tenant in occupancy shall be authorized to remit tax payments or payments in lieu of thereof to the appropriate taxing authority in a manner consistent with the process and term established under the original lease or lease-purchase for the subject property for a period coincident with the term of the lease as established at the commencement of the term thereof. The state may undertake a certiorari review of assessments that may be imposed from time to time.
§ 2. Subdivision 12 of section 3 of the public buildings law, as amended by section 48 of part T of chapter 57 of the laws of 2007, is amended to read as follows:
12. Lease from time to time buildings, rooms or premises in the county of Albany, and elsewhere as required, for providing space for departments, commissions, boards and officers of the state government, upon such terms and conditions as he or she deems most advantageous to the state. Any such lease shall, however, be for a term not exceeding ten years, but may provide for optional renewals on the part of the state, for terms of ten years or less. Each such lease shall contain a clause stating that the contract of the state thereunder shall be deemed executory only to the extent of moneys available therefor and that no liability shall be incurred by the state beyond the money available for such purpose. Each such lease with a limited liability company shall identify the names and residence addresses of all natural persons who are to be the members, managers and any authorized persons, if any, of the limited liability company, and the names and residence addresses or, if none, the business address of all share holders, directors, officers, members, managers and partners of any limited liability company or other business entity that are to be the members, managers or authorized persons, if any, of the limited liability company. The identification of such names shall not be deemed an unwarranted invasion of personal privacy pursuant
A. 3242 3
to article six of the public officers law. If any such member, manager or authorized person of the limited liability company is itself a limited liability company or other business entity, the names and addresses of the shareholders, directors, officers, members, managers and partners of the limited liability company or another business entity shall also be disclosed until full disclosure of ultimate ownership by natural persons is achieved. For purposes of this subdivision, the terms "members," "managers," "authorized person," "limited liability company" and "other business entity" shall have the same meaning as those terms are defined in section one hundred two of the limited liability company law. Notwithstanding the provisions of any other law, except section sixteen hundred seventy-six of the public authorities law relating to use of dormitory authority facilities by the aged, the commissioner of general services shall have sole and exclusive authority to lease space for state departments, agencies, commissions, boards and officers within the county of Albany. Any buildings, rooms or premises, now or hereafter held by the commissioner of general services under lease, may be sublet, in part or in whole, provided that in the judgment of the commissioner, and the occupying department, commission, board, and officers of the state government, such buildings, rooms or premises are not for a time needed.
§ 3. This act shall take effect immediately, provided that:
a. the provisions of this act shall only apply to leases entered into after such effective date; and
b. 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 subdivision 4 of section 27 of chapter 95 of the laws of 2000, as amended, when upon such date the provisions of section two of this act shall take effect.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
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