Bill Text: NY S05137 | 2021-2022 | General Assembly | Amended

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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 - Dead) 2022-05-31 - referred to corporations, authorities and commissions [S05137 Detail]

Download: New_York-2021-S05137-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         5137--A

                               2021-2022 Regular Sessions

                    IN SENATE

                                    February 24, 2021
                                       ___________

        Introduced  by  Sen. MATTERA -- read twice and ordered printed, and when
          printed to be committed to the Committee on Corporations,  Authorities
          and  Commissions  --  recommitted  to  the  Committee on Corporations,
          Authorities and Commissions in accordance with Senate Rule 6,  sec.  8
          --  committee  discharged,  bill amended, ordered reprinted as amended
          and recommitted to said committee

        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

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05610-03-2
        S. 5137--A                          2

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