The New York State Senate

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4298

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 3, 2009
                               ___________

Introduced  by M. of A. BRODSKY -- read once and referred to the Commit-
  tee 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:

  Section  1.  The  public  authorities  law  is amended by adding a new
section 2829 to read as follows:
  S 2829. SUBSIDIARIES OF PUBLIC AUTHORITIES.   1.  NOTWITHSTANDING  ANY
OTHER  PROVISION  OF  LAW TO THE CONTRARY, NO PUBLIC BENEFIT CORPORATION
SHALL ESTABLISH A SUBSIDIARY CORPORATION WITHOUT STATUTORY CODIFICATION.
  2. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION ONE OF THIS  SECTION,
ANY  SUBSIDIARY  OF A PUBLIC AUTHORITY DULY AND LAWFULLY FORMED PRIOR TO
THE FIRST DAY OF JULY, TWO THOUSAND TEN, SHALL BE DEEMED TO BE A  PUBLIC
AUTHORITY UNDER THE TERMS OF THIS CHAPTER, AND NOTWITHSTANDING ANY OTHER
PROVISION  OF  LAW TO THE CONTRARY, SHALL BE SUBJECT TO ALL THE REQUIRE-
MENTS, DUTIES AND RESPONSIBILITIES PROVIDED IN THIS CHAPTER.
  3. ON OR BEFORE THE THIRTY-FIRST DAY OF MARCH,  TWO  THOUSAND  ELEVEN,
ANY  SUBSIDIARY  PUBLIC  BENEFIT  CORPORATION,  IN  COOPERATION WITH ITS
PARENT PUBLIC BENEFIT CORPORATION, SHALL PROVIDE  TO  THE  CHAIRMAN  AND
RANKING MINORITY MEMBER OF THE SENATE FINANCE COMMITTEE AND THE CHAIRMAN
AND  RANKING MINORITY MEMBER OF THE ASSEMBLY WAYS AND MEANS COMMITTEE, A
REPORT ON THE SUBSIDIARY PUBLIC BENEFIT CORPORATION. SUCH  REPORT  SHALL
INCLUDE FOR EACH SUBSIDIARY:
  (A)  THE  COMPLETE  LEGAL NAME, ADDRESS AND CONTACT INFORMATION OF THE
SUBSIDIARY;
  (B) THE STRUCTURE OF THE ORGANIZATION OF THE SUBSIDIARY, INCLUDING THE
NAMES AND TITLES OF EACH OF ITS MEMBERS, DIRECTORS AND OFFICERS, AS WELL
AS A CHART OF ITS ORGANIZATIONAL STRUCTURE;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06521-01-9

A. 4298                             2

  (C) THE COMPLETE BYLAWS AND LEGAL ORGANIZATION PAPERS OF  THE  SUBSID-
IARY;
  (D) A COMPLETE REPORT OF THE PURPOSE, OPERATIONS, MISSION AND PROJECTS
OF  THE SUBSIDIARY, INCLUDING A STATEMENT OF JUSTIFICATION AS TO WHY THE
SUBSIDIARY IS NECESSARY TO CONTINUE ITS OPERATIONS FOR THE PUBLIC  BENE-
FIT FOR THE PEOPLE OF THE STATE OF NEW YORK; AND
  (E)  ANY  OTHER  INFORMATION THE SUBSIDIARY PUBLIC BENEFIT CORPORATION
DEEMS IMPORTANT TO INCLUDE IN SUCH REPORT.
  S 2. This act shall take effect immediately.