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1. No grant or lease of any of the islands in Lake George, or of any land upon any of such islands, shall be made by the commissioner of general services. 2. No grant or lease of any lands under water in Lake George shall be made by the commissioner unless the conservation department of the state of New York shall, prior to the issuance of any such grant or lease, advise the commissioner, in writing, that such grant or lease, if made, will not result in a hazard to navigation, impair the scenic beauty of Lake George or otherwise interfere with the use and enjoyment of Lake George and its facilities by the people of the state. To assist the department in making its determination, the department may hold a public hearing at such time and place as it shall determine for the purpose of receiving testimony and evidence.