NY State Senate Bill 2019-S3681

Senate Bill S3681

2019-2020 Legislative Session

Establishes a right of first refusal in municipalities for state land to be sold at public auction

download bill text pdf

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to investigations and government operations
Feb 12, 2019	referred to investigations and government operations

2019-S3681 (ACTIVE) - Details

See Assembly Version of this Bill:: A1598
Current Committee:: Senate Investigations And Government Operations
Law Section:: Public Lands Law
Laws Affected:: Amd §33, Pub Lds L
Versions Introduced in Other Legislative Sessions:: 2011-2012: A8806
2013-2014: A1226
2015-2016: A183
2017-2018: A346
2021-2022: S1212, A4812
2023-2024: S59, A6970

2019-S3681 (ACTIVE) - Summary

Establishes a right of first refusal in municipalities for state land to be sold at public auction.

2019-S3681 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S3681

SPONSOR: HARCKHAM
 
TITLE OF BILL:  An act to amend the public lands law, in relation to
establishing a right of first refusal in municipalities for state land
to be sold at public auction

 
PURPOSE OR GENERAL IDEA OF BILL:

Require that the local government where state land is located be given
the first opportunity to acquire the land when it is offered for sale.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 of the bill amends section 33 of the public lands law, as
amended, to provide that:

(1) when the state offers unappropriated state land for sale, the land
shall first be offered to the local governments in which the land is
located subject to certain conditions, including:

a. if the local government intends to use the land for park and/or
municipal recreation purposes, the land shall be offered to the local
government for one dollar;

b. if the local government intends to use the land for other municipal
purposes, the land shall be offered to the local government for the
lesser of the current appraised value or the amount for which it is
proposed to be sold;

c. the deed conveying unappropriated state land shall include a clause
specifying the purpose for which the land is being conveyed and revert-
ing the land to the state if it is not utilized for the specific purpose
enumerated or the specifically enumerated use ceases; and

d. the municipality shall exercise its right to purchase within ninety
days after receipt of the written offer;

(2) the unappropriated state land shall first be offered to the smallest
municipal government in which the land is located, then to the next
largest, as follows:

a. if the land is within an incorporated village, first to the village;

b. if the village declines or if the land is located outside of any
village but within a town, to the town;

c. if the town declines, to the county in which it is located;

d. if the land is within a city, first to the city. If the city
declines, then to the county in which the land is located;

(3) if none of the local governments purchase the land, then the land
may be disposed of in accordance with all applicable laws;

(4) the procedure set forth in this subdivision shall supplement any
other procedures in effect with regard to the sale of unappropriated
state land.

Section 2 of the bill is the effective date.

 
JUSTIFICATION:

Local governments face increasing difficulty in acquiring land for open
space, parks, and general municipal uses due to high cost and limited
availability. This bill will assist local governments to meet these
local needs.

Further, local communities often become accustomed to and rely on the
existing use of state lands when making land use decisions for the
surrounding community.

Finally, when the state determines land it owns is not needed for state
purposes and plans to dispose of such property, it should recognize the
traditional role of local government as purveyors of land use policy by
offering local governments the first right to purchase the land. This
affords the local government the opportunity to acquire open space that
enhances the community's quality of life and maintains the scenic beauty
and environmental integrity of the community or develop the land for
municipal or recreational purposes supported by and benefiting the local
community.

 
PRIOR LEGISLATIVE HISTORY:

2017-18: A346 referred to governmental operations;
2016: A183 referred to governmental operations;
2014: A1226 referred to governmental operations;
2012: A8806 referred to governmental operations;
2013: A1226 referred to governmental operations

 
FISCAL IMPLICATIONS:

Minimal

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S3681 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3681
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             February 12, 2019
                                ___________
 
 Introduced  by Sen. HARCKHAM -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 AN ACT to amend the public lands law,  in  relation  to  establishing  a
   right  of first refusal in municipalities for state land to be sold at
   public auction

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section 33 of the public lands law, as amended by chapter
 360 of the laws of 1983, subdivision 2 as amended by chapter 119 of  the
 laws  of  2000, paragraph (b) of subdivision 2 as amended by chapter 187
 of the laws of 2007, subdivision 3 as separately amended by chapters 360
 and 471 of the laws of 1983 and subdivision 5 as added by chapter 95  of
 the laws of 2000, is amended to read as follows:
   § 33. Sale  of  unappropriated  state  lands;  RIGHT OF FIRST REFUSAL;
 notice and place of public sales. 1. [The] (A) PRIOR TO THE PUBLIC  SALE
 OF  UNAPPROPRIATED STATE LAND, THE OFFICE OF GENERAL SERVICES MUST FIRST
 OFFER TO SELL SUCH LAND TO THE LOCAL GOVERNMENTS IN WHICH IT IS  LOCATED
 SUBJECT TO THE FOLLOWING CONDITIONS:
   (I) IF THE LOCAL GOVERNMENT INTENDS TO USE SUCH LAND IN PERPETUITY FOR
 PARK  AND/OR  MUNICIPAL RECREATION PURPOSES, THE COMMISSIONER OF GENERAL
 SERVICES SHALL OFFER THE LAND TO THE LOCAL GOVERNMENT FOR THE SUM OF ONE
 DOLLAR;
   (II) IF THE LOCAL GOVERNMENT INTENDS TO USE SUCH LAND FOR OTHER MUNIC-
 IPAL PURPOSES, THE COMMISSIONER OF GENERAL SERVICES SHALL OFFER THE LAND
 TO THE LOCAL GOVERNMENT FOR A SUM EQUAL TO THE CURRENT  APPRAISED  VALUE
 DETERMINED  BY  SUCH COMMISSIONER OR FOR NO MORE THAN THE SAME CONSIDER-
 ATION FOR WHICH IT IS PROPOSED TO BE SOLD TO A PERSON OR PRIVATE ENTITY,
 WHICHEVER IS LESS;
   (III) THE DEED CONVEYING UNAPPROPRIATED STATE LAND TO A LOCAL  GOVERN-
 MENT  PURSUANT  TO  SUBPARAGRAPH  (I)  OR  (II)  OF THIS PARAGRAPH SHALL
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD04358-01-9

 S. 3681                             2
 
 INCLUDE A CLAUSE SPECIFYING THE PURPOSE FOR  WHICH  THE  LAND  IS  BEING
 CONVEYED  AND  REVERTING THE LAND TO THE STATE IF IT IS NOT UTILIZED FOR
 THE SPECIFIC PURPOSE ENUMERATED OR THE SPECIFICALLY ENUMERATED USE CEAS-
 ES;
   (IV)  THE GOVERNING BODY OF SUCH MUNICIPALITY SHALL EXERCISE ITS RIGHT
 TO PURCHASE UNAPPROPRIATED STATE LAND FOR A PURPOSE SET FORTH IN SUBPAR-
 AGRAPH (I) OR (II) OF THIS PARAGRAPH WITHIN NINETY DAYS AFTER RECEIPT OF
 SUCH WRITTEN OFFER FROM THE OFFICE OF GENERAL  SERVICES  OR  WITHIN  ANY
 GREATER  LENGTH  OF TIME THAT MAY BE PROVIDED FOR IN A WRITTEN AGREEMENT
 BETWEEN THE OFFICE OF GENERAL SERVICES AND SUCH LOCAL GOVERNMENT;
   (V) THE OFFER TO PURCHASE ANY SUCH UNAPPROPRIATED STATE LAND  MADE  TO
 ANY  MUNICIPALITY  IN  WHICH  SUCH  REAL  PROPERTY IS SITUATED SHALL NOT
 CONSTITUTE A RIGHT TO PURCHASE AND SUCH OFFER MAY BE  WITHDRAWN  BY  THE
 COMMISSIONER OF GENERAL SERVICES AT ANY TIME.
   (B) IF THE UNAPPROPRIATED STATE LAND IS LOCATED WITHIN AN INCORPORATED
 VILLAGE,  THE  COMMISSIONER  OF  GENERAL SERVICES SHALL FIRST OFFER SUCH
 LAND TO THE INCORPORATED VILLAGE. THE GOVERNING  BODY  OF  SUCH  VILLAGE
 SHALL  EXERCISE  ITS RIGHT TO PURCHASE SUCH LAND FOR A PURPOSE SET FORTH
 IN SUBPARAGRAPH (I) OR (II) OF PARAGRAPH (A) OF THIS SUBDIVISION  WITHIN
 NINETY  DAYS  AFTER  RECEIPT  OF  SUCH  WRITTEN OFFER FROM THE OFFICE OF
 GENERAL SERVICES OR WITHIN ANY  GREATER  LENGTH  OF  TIME  THAT  MAY  BE
 PROVIDED  FOR  IN  A  WRITTEN  AGREEMENT  BETWEEN  THE OFFICE OF GENERAL
 SERVICES AND SUCH VILLAGE. IF THE INCORPORATED VILLAGE DOES NOT EXERCISE
 ITS RIGHT TO PURCHASE SUCH LAND WITHIN SAID TIME FRAME, THEN THE COMMIS-
 SIONER OF GENERAL SERVICES SHALL OFFER THE UNAPPROPRIATED LAND FOR  SALE
 TO THE TOWN IN WHICH SUCH LAND IS LOCATED.
   (C)  IF  THE  UNAPPROPRIATED  STATE  LAND IS LOCATED WITHIN A TOWN BUT
 OUTSIDE OF THE BORDERS OF ANY INCORPORATED VILLAGE OR IS  LOCATED  IN  A
 VILLAGE  BUT  THE  VILLAGE  DOES  NOT EXERCISE ITS RIGHT AS SET FORTH IN
 PARAGRAPH (B) OF THIS SUBDIVISION, THE COMMISSIONER OF GENERAL  SERVICES
 SHALL OFFER SUCH LAND TO THE TOWN. THE GOVERNING BODY OF SUCH TOWN SHALL
 EXERCISE  ITS  RIGHT  TO  PURCHASE  SUCH LAND FOR A PURPOSE SET FORTH IN
 SUBPARAGRAPH (I) OR (II) OF PARAGRAPH (A)  OF  THIS  SUBDIVISION  WITHIN
 NINETY  DAYS  AFTER  RECEIPT  OF  SUCH  WRITTEN OFFER FROM THE OFFICE OF
 GENERAL SERVICES OR WITHIN ANY  GREATER  LENGTH  OF  TIME  THAT  MAY  BE
 PROVIDED  FOR  IN  A  WRITTEN  AGREEMENT  BETWEEN  THE OFFICE OF GENERAL
 SERVICES AND SUCH TOWN. IF THE TOWN  DOES  NOT  EXERCISE  ITS  RIGHT  TO
 PURCHASE  SUCH  LAND  WITHIN  SAID  TIME FRAME, THEN THE COMMISSIONER OF
 GENERAL SERVICES SHALL OFFER THE UNAPPROPRIATED LAND  FOR  SALE  TO  THE
 COUNTY IN WHICH SUCH LAND IS LOCATED.
   (D)  IF  THE  UNAPPROPRIATED  STATE LAND IS LOCATED WITHIN A CITY, THE
 COMMISSIONER OF GENERAL SERVICES SHALL FIRST  OFFER  SUCH  LAND  TO  THE
 CITY.  THE  GOVERNING  BODY  OF  SUCH  CITY  SHALL EXERCISE ITS RIGHT TO
 PURCHASE SUCH LAND FOR A PURPOSE SET FORTH IN SUBPARAGRAPH (I)  OR  (II)
 OF PARAGRAPH (A) OF THIS SUBDIVISION WITHIN NINETY DAYS AFTER RECEIPT OF
 SUCH  WRITTEN  OFFER  FROM  THE OFFICE OF GENERAL SERVICES OR WITHIN ANY
 GREATER LENGTH OF TIME THAT MAY BE PROVIDED FOR IN A  WRITTEN  AGREEMENT
 BETWEEN  THE  OFFICE OF GENERAL SERVICES AND SUCH CITY. IF THE CITY DOES
 NOT EXERCISE ITS RIGHT TO PURCHASE THE UNAPPROPRIATED STATE LAND  WITHIN
 SAID  TIME  FRAME, THEN SUCH COMMISSIONER SHALL OFFER THE UNAPPROPRIATED
 LAND FOR SALE TO THE COUNTY IN WHICH SUCH LAND IS LOCATED.
   (E) THE GOVERNING BODY OF SUCH COUNTY  SHALL  EXERCISE  ITS  RIGHT  TO
 PURCHASE  UNAPPROPRIATED  STATE LAND FOR A PURPOSE SET FORTH IN SUBPARA-
 GRAPH (I) OR (II) OF PARAGRAPH (A) OF  THIS  SUBDIVISION  WITHIN  NINETY
 DAYS  AFTER  RECEIPT  OF  SUCH  WRITTEN OFFER FROM THE OFFICE OF GENERAL
 SERVICES OR WITHIN ANY GREATER LENGTH OF TIME THAT MAY BE  PROVIDED  FOR

 S. 3681                             3
 
 IN  A  WRITTEN  AGREEMENT BETWEEN THE OFFICE OF GENERAL SERVICES AND THE
 COUNTY. IF THE COUNTY DOES NOT EXERCISE ITS RIGHT TO PURCHASE THE  UNAP-
 PROPRIATED  STATE  LAND WITHIN SAID TIME FRAME, THEN THE COMMISSIONER OF
 GENERAL  SERVICES MAY DISPOSE OF SAID LAND IN ACCORDANCE WITH ALL APPLI-
 CABLE LAWS.
   (F) THE PROCEDURE SET FORTH IN THIS SUBDIVISION SHALL  SUPPLEMENT  ANY
 OTHER  PROCEDURES  IN  EFFECT  WITH REGARD TO THE SALE OF UNAPPROPRIATED
 STATE LAND.
   2. SUBJECT TO THE PROVISIONS OF SUBDIVISION ONE OF THIS  SECTION,  THE
 commissioner  of  general services may, from time to time, sell unappro-
 priated state lands at public auction or by sealed bids in such  parcels
 as he deems for the best interests of the state. Previous to every sale,
 he  OR  SHE  shall fix the lowest sum at which each lot may be sold, and
 shall designate at least one newspaper in the county where the lands  to
 be  sold  are  situated, in which the commissioner shall cause notice of
 the time, place and description of sale to be published, at least once a
 week for four weeks, successively, before the sale. Such notice need not
 be published in any other paper or papers,  and  any  statute  requiring
 additional publication of notices or advertisements by state officers or
 a  department,  board, bureau or commission of the state shall not apply
 to such notice. The commissioner may designate a representative  of  his
 OR  HER office to conduct such sale. All such sales shall be held at the
 county seat of the county where the property is situated, unless  other-
 wise directed by the commissioner.
   Upon  such  sales of unappropriated state land to a purchaser procured
 by any licensed real estate broker and the payment of the purchase price
 in the amount offered by such broker in behalf  of  the  purchaser,  the
 commissioner  of  general services is authorized to pay, subject to such
 terms and conditions as the commissioner may prescribe, a commission  to
 such  broker  out of monies available therefor. Uniform rates of commis-
 sion shall, from time to time, be fixed by the  commissioner  but  shall
 not  exceed  six percentum of the purchase price. No commission shall be
 paid for the procuring of any sale unless (1) written authority  of  the
 broker  to  make  such  offer  on a form acceptable to the commissioner,
 signed by the person for whom he OR SHE is acting, shall be  filed  with
 the  commissioner  before  the day of the sale and unless (2) the broker
 shall furnish to the commissioner evidence in such form and extent as he
 may require establishing that the purchaser was procured as  the  result
 of  the  broker's  services.  In  no  event shall a broker who is paid a
 commission by the commissioner  as  herein  provided  accept  any  other
 commission  or  fee  from  any  person  or source for brokerage services
 relating to the sale of such unappropriated state land.
   [2.] 3. (a) Whenever a street or highway, including any adjacent  land
 acquired or held by the state in connection with such street or highway,
 the  title  to the bed of which is in the state, shall have been legally
 abandoned or closed, in whole or in part, the  commissioner  of  general
 services  may sell and convey at public auction or by sealed bids at not
 less than the appraised value, in such parcels as he OR SHE directs, all
 the right, title and interest of the state in such abandoned  or  closed
 street  or highway, or the part so abandoned or closed, and in any adja-
 cent land acquired or held by the state in connection with  such  street
 or  highway;  and  where, in the judgment of such commissioner, a public
 auction is not for the best interests of the state the commissioner,  in
 his OR HER discretion, may sell and convey such parcels of said lands at
 private  sale  to the owners of adjacent lands for a price not less than

 S. 3681                             4
 
 the appraised value and on such terms and conditions as the commissioner
 may impose.
   (b)  The  commissioner of general services may sell and convey parcels
 of unappropriated state land which (i) do not constitute legal  building
 lots  in  the  municipality  in  which they are located and (ii) have an
 appraised value of less than twenty thousand  dollars  each  at  private
 sale  to any owner of adjacent lands. Consideration for such sales shall
 be for a price not less than the appraised  value  and  such  additional
 terms and conditions as the commissioner may deem necessary.
   [3.]  4.  The commissioner of general services is authorized in his OR
 HER discretion to sell and convey at private sale upon  such  terms  and
 conditions as he OR SHE may deem proper, and to remise and quitclaim all
 the  right, title and interest of the state in and to any unappropriated
 state lands acquired by or through tax sale where it shall  appear  that
 such  lands  are  and  have been privately occupied under color of title
 continuously for ten years or where the applicant has, in good faith,  a
 continuous  chain  of title going back more than ten years from the date
 of application. Any such sale, if  made,  shall  be  to  the  person  or
 persons claiming title because of such occupation or under such chain of
 title,  and  shall  be for a consideration not less than the fair market
 value of the state's interest as determined by the commissioner.
   [4.] 5. Where a petition is presented to a surrogate's court  of  this
 state  for an order directing the sale of a decedent's real property for
 any of the purposes provided for in section one  thousand  nine  hundred
 two  of  the  surrogate's court procedure act or otherwise, and there is
 reason to believe that such real property  may  have  escheated  to  the
 people  of  the  state of New York, and a final judgment in an action by
 reason of such escheat, as provided for in section two hundred [and] one
 of the abandoned property law, has not been entered, the commissioner of
 general services may, if it is deemed to be in the best interests of the
 state, authorize the attorney general to consent to such order  for  the
 sale  of  such real property, either at public auction or by sealed bids
 or private sale. A deed thereupon executed and delivered pursuant to the
 terms and provisions of such order, upon such consent  of  the  attorney
 general,  shall  be  deemed a bar to any claim of title of the people of
 the state of New York, by virtue of such escheat,  in  the  property  so
 sold,  but  shall  not be deemed to affect any rights that the people of
 the state of New York may have in or  to  the  proceeds  of  such  sale.
 Consent,  however,  to such an order shall not be given in the event the
 price offered on a proposed private sale of such real property  is  less
 than  the  appraised  value thereof as determined by the commissioner of
 general services.
   [5.] 6. (a) The commissioner of general services may sell  and  convey
 improved,  unappropriated  state  lands  by  competitive solicitation of
 offers through a request for proposals or similar method where in his or
 her judgment, a public auction is not  in  the  best  interests  of  the
 state.  Such  solicitation  shall  document  the minimum qualitative and
 quantitative factors in addition to sale price to be used as criteria in
 the evaluation of offers and the general manner in which the  evaluation
 process  and selection of the most responsive and responsible offeror is
 to be conducted. Clarifications may be sought from offerors for purposes
 of assuring a full understanding of responsiveness to  the  solicitation
 requirements.  Where  provided for in the solicitation, revisions may be
 permitted from  all  offerors  determined  to  be  eligible  for  award.
 Disclosure  of  the  content of competing offers, other than statistical
 tabulations of offers received or of  any  clarifications  or  revisions

 S. 3681                             5
 
 thereto,  shall  be  prohibited  prior to award. All offers or separable
 parts thereof may be rejected.
   (b) Establishment of the minimum sale price for the competitive solic-
 itation shall be based upon a certified appraisal or certified appraisal
 report as defined in article six-E of the executive law.
   (c)  The commissioner of general services shall designate at least one
 newspaper in the county where the lands to be offered  are  situate,  in
 which he or she shall cause a notice of the solicitation to be published
 at  least  once  a  week for four weeks successively before the date set
 forth for receipt of offers.
   § 2. This act shall take effect immediately.

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