Bill Text: NY S03090 | 2019-2020 | General Assembly | Introduced


Bill Title: Prohibits the formation of a subsidiary of a public authority without prior approval of the legislature.

Spectrum: Bipartisan Bill

Status: (Engrossed - Dead) 2020-01-08 - REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS [S03090 Detail]

Download: New_York-2019-S03090-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          3090
                               2019-2020 Regular Sessions
                    IN SENATE
                                    February 1, 2019
                                       ___________
        Introduced  by  Sen.  RANZENHOFER -- read twice and ordered printed, and
          when printed to be committed to the Committee on Corporations, Author-
          ities 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].  Any subsidiary corporation shall make the reports and other
    19  disclosures as are required of state authorities, unless the  subsidiary
    20  corporation's operations and finances are consolidated with those of the
    21  authority of which it is a subsidiary.
    22    § 2. This act shall take effect immediately.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01731-01-9
feedback