What's happening
This bill requires full disclosure of the names and addresses of all individuals behind limited liability companies leasing state property.
Why it matters
Increases transparency. By requiring disclosure of all natural persons behind limited liability companies (LLCs) leasing state property, the bill aims to prevent anonymous ownership and hidden interests, making it harder for individuals to conceal their identity behind shell companies.
Reduces risk of conflicts of interest and corruption. Full disclosure of the real parties in interest helps state agencies identify potential conflicts of interest, unethical business practices, or inappropriate relationships between state officials and lessors.
Closes loopholes in ownership structures. The law mandates that if an LLC member is itself another company, disclosure must continue through all layers of ownership until the identities of the actual individual owners are revealed, ensuring that complex corporate structures can't be used to hide true owners.
Balances transparency and privacy. The bill specifically states that this level of disclosure is not considered an “unwarranted invasion of personal privacy,” clarifying the legal status of this requirement and aiming to withstand legal challenges from those who might argue against such transparency.
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Who cares
Headline styles
Disclose LLC Owners for Leases
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to investigations and government operations
- Referred to investigations and government 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.
Reveal LLC Landlords' Identities
Assembly Floor Calendar · Sponsor John T. McDonald III
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2206
2017-2018 Regular Sessions
IN SENATE
January 12, 2017
Introduced by Sen. BRESLIN -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government 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 lease, may be sublet, in part or in whole, provided that in the judgment
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07529-01-7
S. 2206 2
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 to article six of the public officers law. If any such member, manager
S. 2206 3
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.
Sponsor's memo
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.
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