Bill Text: NY A04729 | 2015-2016 | General Assembly | Introduced
Bill Title: Prohibits the formation of a subsidiary of a public authority without prior approval of the legislature.
Sponsorship: Slight Partisan Bill (Democrat 9-4)
Status: (Introduced - Dead) 2016-01-06 - referred to corporations, authorities and commissions [A04729 Detail]
Download: New_York-2015-A04729-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
4729
2015-2016 Regular Sessions
I N A S S E M B L Y
February 5, 2015
___________
Introduced by M. of A. COLTON, ZEBROWSKI, JAFFEE, ABINANTI, BRONSON --
Multi-Sponsored by -- M. of A. LOPEZ, 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]. 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 S 2. This act shall take effect immediately.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05205-01-5
