STATE OF NEW YORK
        ________________________________________________________________________
                                          1189
                               2019-2020 Regular Sessions
                    IN SENATE
                                    January 11, 2019
                                       ___________
        Introduced  by  Sen. RITCHIE -- 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  eliminating  any
          yearly fees associated with the use of docks on public waterways
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Paragraph (e) of subdivision 7 of section 75 of the  public
     2  lands  law,  as  added by chapter 791 of the laws of 1992, is amended to
     3  read as follows:
     4    (e)(i) The commissioner may impose a fee in connection with the  issu-
     5  ance  of  any such lease, easement, permit, or other interest, which fee
     6  shall be established by rule pursuant to paragraph (f) of this  subdivi-
     7  sion,  and  which  shall take into account other factors affecting value
     8  including but not limited to classes of structure, types of use (includ-
     9  ing whether the use is for public or  private  purposes),  location  and
    10  region,  size,  usefulness  of  the parcel standing alone and such other
    11  criteria as the commissioner may determine, but which shall exclude  the
    12  value  of improvements thereon constructed and maintained by the adjoin-
    13  ing upland owner. The commissioner shall  not  impose  yearly  fees  for
    14  leases, easements, or permits, and any application fee for such shall be
    15  subject  to the approval of the director of the budget. Application fees
    16  shall not exceed one hundred dollars. The rules and regulations required
    17  by paragraph (f) of this subdivision shall prescribe that in  the  event
    18  an  applicant  for  a lease, easement or other interest in real property
    19  shall dispute and request a reduction  of  the  commissioner's  determi-
    20  nation  of  the  value  of the interest to be conveyed, the commissioner
    21  shall, upon the applicant's submission of an appraisal of the  value  of
    22  such  property  interest  conducted in accord with standard and accepted
    23  appraisal  methodology  by  an  independent   appraiser   qualified   as
    24  prescribed  in  this paragraph and which appraisal varies in its conclu-
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04897-01-9

        S. 1189                             2
     1  sion as to value by ten percent or more of the value  previously  estab-
     2  lished  by  the  commissioner,  and upon the applicant's agreement to be
     3  bound thereby, contract with a second independent  appraiser,  qualified
     4  as  prescribed in this paragraph, to render an appraisal of the value of
     5  the interest proposed to be conveyed, the  results  of  which  appraisal
     6  shall be binding upon both the applicant and the commissioner of general
     7  services. Such appraiser shall be selected by the commissioner of gener-
     8  al  services  from among a group of at least three appraisers identified
     9  by the applicant all of whom must be qualified  as  prescribed  in  this
    10  paragraph and each of whom must agree to employ standard appraisal meth-
    11  odology.  For the purposes of this provision a qualified appraiser shall
    12  be certified by the secretary of state to transact business  as  a  real
    13  estate  general  appraiser  and  shall conduct a regular business of the
    14  appraisal of real property interests. In the event  that  the  appraisal
    15  contracted for in such manner shall conclude that the value of the prop-
    16  erty interest in question is equal to the value previously determined by
    17  the  commissioner  plus  or  minus  ten percent, the entire cost of such
    18  appraisal shall be borne by the applicant, otherwise,  the  entire  cost
    19  thereof shall be borne by the commissioner of general services.
    20    (ii)  [For  leases,  easements  and  conveyances of such interests for
    21  commercial use of structures on state-owned underwater lands, the annual
    22  fee imposed shall not exceed two percent of the user's net annual income
    23  for structures not in existence on the effective date of this paragraph.
    24  Nor, in connection with a structure in existence and in  commercial  use
    25  on  the  effective  date  of  this  paragraph,  shall the fee charged in
    26  connection with such a conveyance made after the effective date of  this
    27  subparagraph  exceed  annually  the  following  schedule  for five years
    28  following the effective date of the interest conveyed pursuant to subdi-
    29  vision (b) of this section provided timely application pursuant to  that
    30  subdivision  has been made: .2 (two-tenths) of one percent; second year:
    31  .4 (four-tenths) of one percent;  third-year:  .6  (six-tenths)  of  one
    32  percent;  fourth year: .8 (eight-tenths) of one percent; fifth year, and
    33  thereafter: one percent; provided that  all  such  percentages  in  this
    34  paragraph  shall  be  that percentage of the net income derived from the
    35  structure or structures on  state-owned  lands,  excluding  transactions
    36  involving sales or repair of boats, and sale of gasoline; and the dollar
    37  valuation  of  the interest conveyed shall not be increased from year to
    38  year during that five year period. The fee charged shall  be  discounted
    39  ten percent for annual permits.
    40    (iii)  For  leases,  easements  and  conveyances of such interests for
    41  residential use of non-exempt structures in  existence  and  residential
    42  use  on  the  effective date of this paragraph, the annual fee shall not
    43  exceed the lesser of twenty dollars per slip or one hundred dollars.
    44    (iv)] Nothing in this paragraph shall  preclude  the  commissioner  of
    45  general services from agreeing, upon the request of and negotiation with
    46  the  owner  or  user  of  adjacent  upland, to such other conveyances or
    47  agreements consistent with this section providing for different periodic
    48  payments, or a more flexible payment structure, than the  fee  caps  and
    49  fees,  respectively, set forth for commercial and residential facilities
    50  herein. Moreover, notwithstanding the fee caps set in this section,  the
    51  commissioner  may  exceed those caps if required to cover the yearly pro
    52  rata share, over the term of the conveyance or interest, of the adminis-
    53  trative costs in connection with that conveyance or interest.
    54    § 2. Paragraph (f) of subdivision 7 of section 75 of the public  lands
    55  law,  as  amended by chapter 549 of the laws of 2013, is amended to read
    56  as follows:

        S. 1189                             3
     1    (f) The commissioner, in consultation with the commissioner  of  envi-
     2  ronmental  conservation,  the  secretary  of state, the office of parks,
     3  recreation and historic preservation and other interested state agencies
     4  administering state-owned lands underwater, shall promulgate pursuant to
     5  article  two  of  the state administrative procedure act such rules with
     6  respect to grants, leases, easements and lesser interests for the use of
     7  state-owned land underwater, and the cession of jurisdiction thereof, as
     8  in his or her judgment are  reasonable  and  necessary  to  protect  the
     9  interests of the people in such lands underwater. Such regulations shall
    10  include  without  being  limited  to: the fees to be charged, consistent
    11  with the provisions of this section, including mitigation of  such  fees
    12  in  the  event  of economic hardship on existing commercial enterprises;
    13  fee limitations to administrative expenses for municipal uses which  are
    14  public,  non-commercial and offer services free or for nominal fees, and
    15  for uses undertaken and operated for public and non-commercial  purposes
    16  by  not-for-profit corporations characterized as charitable corporations
    17  as defined in paragraph (a) of section one hundred two (Definitions)  of
    18  the not-for-profit corporation law, and for uses undertaken and operated
    19  for  public  purposes  by a corporation formed pursuant to the religious
    20  corporation law or by a corporation formed pursuant to a special act  of
    21  this  state  and which has as its principal purpose a religious purpose;
    22  such further exemptions for projects as the commissioner  determines  do
    23  not  represent significant encroachments; limitations on grants, includ-
    24  ing conversion grants, with respect to underwater lands consistent  with
    25  the  public  purposes  of  this  subdivision and limiting such grants to
    26  exceptional circumstances; and factors to be examined in considering  an
    27  application for a lease, easement or other interest. Those factors shall
    28  include  without  limitation the following: (i) the environmental impact
    29  of the project; (ii) the values for natural resource management,  recre-
    30  ational  uses,  and  commercial  uses  of the pertinent underwater land;
    31  (iii) the size, character and effects of  the  project  in  relation  to
    32  neighboring  uses;  (iv) the potential for interference with navigation,
    33  public uses of the waterway and rights of other riparian owners; (v) the
    34  effect of the project on the natural resource interests of the state  in
    35  the  lands;  (vi)  the  water-dependent nature of the use; (vii) and any
    36  adverse economic impact on existing commercial enterprises.  [The  final
    37  promulgation  of  rules  establishing  fees  or fee structures] Prior to
    38  their promulgation, any rules  or  regulations  describing  fees  to  be
    39  charged  by  the  commissioner  shall  be subject to the approval of the
    40  director of the budget; however, the director of the budget shall not be
    41  authorized to allow any yearly fee for a lease, or the  granting  of  an
    42  easement or permit for the use of state-owned land underwater.
    43    §  3.  This  act  shall take effect on the sixtieth day after it shall
    44  have become a law.    Effective  immediately,  the  addition,  amendment
    45  and/or  repeal of any rule or regulation by the commissioner of environ-
    46  mental conservation necessary for the implementation of this act on  its
    47  effective date are authorized to be made and completed on or before such
    48  effective date.