Bill Text: NY A01768 | 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: Moderate Partisan Bill (Democrat 15-3)

Status: (Introduced) 2024-01-03 - referred to ways and means [A01768 Detail]

Download: New_York-2023-A01768-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          1768

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    January 20, 2023
                                       ___________

        Introduced by M. of A. COLTON, ZEBROWSKI, BRONSON, REYES, NORRIS, DINOW-
          ITZ,  DICKENS,  MAGNARELLI,  ZINERMAN, SAYEGH, STIRPE, L. ROSENTHAL --
          Multi-Sponsored by -- M. of A. McDONOUGH -- read once and referred  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

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03999-01-3
        A. 1768                             2

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