Bill Text: NY S00979 | 2023-2024 | General Assembly | Introduced

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Bill Title: Prohibits the formation of a subsidiary of a public authority without prior approval of the legislature; allows the formation of a subsidiary of a public authority without prior approval of the legislature if such public authority files a written notice sixty days prior to the organization of such subsidiary with the governor and the legislature.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed) 2024-01-03 - REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS [S00979 Detail]

Download: New_York-2023-S00979-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                           979

                               2023-2024 Regular Sessions

                    IN SENATE

                                     January 9, 2023
                                       ___________

        Introduced  by  Sen. MATTERA -- read twice and ordered printed, and when
          printed to be committed to the Committee on Corporations,  Authorities
          and Commissions

        AN  ACT  to amend the public authorities law, in relation to prohibiting
          the formation of a subsidiary of  a  public  authority  without  prior
          permission of the legislature

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Subdivision 1 of section 2827-a of the  public  authorities
     2  law,  as added by chapter 506 of the laws of 2009, is amended to read as
     3  follows:
     4    1. Notwithstanding any law to the contrary, no state  authority  shall
     5  hereafter  have  the power to organize any subsidiary corporation unless
     6  the legislature shall have enacted a law granting such  state  authority
     7  such  power  for  the  organization of a specific corporation, provided,
     8  however, that a state authority may organize  a  subsidiary  corporation
     9  [pursuant to the following requirements:
    10    a. the purpose for which the subsidiary corporation shall be organized
    11  shall  be  for  a  project or projects which the state authority has the
    12  power to pursue pursuant to its corporate purposes;
    13    b. the primary reason for which the subsidiary  corporation  shall  be
    14  organized  shall  be  to  limit  the  potential  liability impact of the
    15  subsidiary's project or projects on the authority or  because  state  or
    16  federal  law  requires  that  the  purpose of a subsidiary be undertaken
    17  through a specific corporate structure; and
    18    c. the] without the legislature enacting a  law  granting  such  state
    19  authority  such power if such  authority  provides  written notification
    20  of its intention to organize  such  subsidiary  corporation  sixty  days
    21  prior to such organization. Such written notice shall be provided to the
    22  governor,  the  speaker  of the assembly, and the temporary president of
    23  the senate and shall be  subject to denial by the governor, the  senate,

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03999-01-3
        S. 979                              2

     1  or the assembly.  Denial by the governor shall take the form of a signed
     2  certification   by the  governor. Denial by either house of the legisla-
     3  ture shall take the form of a resolution by such house. If the  governor
     4  and  each  house  of the legislature receives notification of a proposed
     5  organization during the months of January through  March,  the  governor
     6  and  each house of the legislature may take any such action within sixty
     7  days of receiving such notification, provided however, if  the  governor
     8  and  each  house of the legislature receives notification  of a proposed
     9  organization and there is not sixty days remaining during  the  legisla-
    10  tive session, the legislature may take any such action within sixty days
    11  of  January  first  of  the  following year. The state authority may not
    12  effectuate the proposed organization of the subsidiary until such  sixty
    13  day  period  has  elapsed.  Any  subsidiary  corporation  shall make the
    14  reports and other disclosures as  are  required  of  state  authorities,
    15  unless  the subsidiary corporation's operations and finances are consol-
    16  idated with those of the authority of which it is a subsidiary.
    17    § 2. This act shall take effect immediately.