NY State Senate Bill 2015-S7589

Senate Bill S7589

Signed By Governor

2015-2016 Legislative Session

Authorizes holding title of real property of a land bank in the name of a subsidiary

download bill text pdf

Archive: Last Bill Status Via A7529 - Signed by Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Sep 29, 2016	signed chap.338
Sep 20, 2016	delivered to governor
Jun 16, 2016	returned to assembly passed senate 3rd reading cal.1942 substituted for s7589b
Jun 16, 2016	substituted by a7529b ordered to third reading cal.1942 committee discharged and committed to rules
May 27, 2016	print number 7589b
May 27, 2016	amend (t) and recommit to corporations, authorities and commissions
May 25, 2016	print number 7589a
May 25, 2016	amend and recommit to corporations, authorities and commissions
May 10, 2016	referred to corporations, authorities and commissions

Votes

- Jun 16, 2016 - Floor Vote
  A7529
  
  62
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 16, 2016
      
      aye (62)
      
      Addabbo Jr.
      
      Akshar
      
      Amedore
      
      Avella
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Carlucci
      
      Comrie
      
      Croci
      
      DeFrancisco
      
      Dilan
      
      Espaillat
      
      Farley
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Griffo
      
      Hamilton
      
      Hannon
      
      Hassell-Thompson
      
      Hoylman-Sigal
      
      Kaminsky
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Latimer
      
      Little
      
      Marcellino
      
      Marchione
      
      Martins
      
      Montgomery
      
      Murphy
      
      Nozzolio
      
      O'Mara
      
      Ortt
      
      Panepinto
      
      Parker
      
      Peralta
      
      Perkins
      
      Persaud
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Sanders Jr.
      
      Savino
      
      Serino
      
      Serrano
      
      Seward
      
      Squadron
      
      Stavisky
      
      Stewart-Cousins
      
      Valesky
      
      Venditto
      
      Young
      
      excused (1)
      
      Diaz
  Jun 16, 2016 - Rules Committee Vote
  S7589
  
  24
  
  Aye
  
  1
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 16, 2016
      
      aye (24)
      
      Bonacic
      
      Breslin
      
      Carlucci
      
      DeFrancisco
      
      Dilan
      
      Espaillat
      
      Farley
      
      Flanagan
      
      Gianaris
      
      Hannon
      
      Hassell-Thompson
      
      LaValle
      
      Lanza
      
      Larkin
      
      Little
      
      Marcellino
      
      Montgomery
      
      Nozzolio
      
      Parker
      
      Perkins
      
      Robach
      
      Seward
      
      Stewart-Cousins
      
      Valesky
      
      nay (1)
      
      Krueger

Bill Amendments

Original

B (Active)

2015-S7589 - Details

Law Section:: Not-for-Profit Corporation Law
Laws Affected:: Amd §§1607 & 1609, N-PC L

2015-S7589 - Summary

Authorizes holding title of real property of a land bank in the name of a subsidiary; grants additional powers to land banks.

2015-S7589 - Sponsor Memo

                                 BILL NUMBER:  S7589

 TITLE OF BILL :

An act to amend the not-for-profit corporation law, in relation to
powers and dissolution of land banks

 PURPOSE :

To authorize the land banks to lend money and make grants as well as
to allow land banks to organize subsidiaries and hold title to
property in the name of the subsidiaries.

 SUMMARY OF PROVISIONS :

Section one adds two sections to § 1607 of the Not-For-Profit
Corporation Law that would authorize the land banks to lend money and
make grants and to organize subsidiaries.

Section two amends § 1609 of the Not-For-Profit Corporation Law to
allow land banks to hold title to property in the name of the lawfully
organized subsidiaries.

Section three provides the immediate effective date.

 EXISTING LAW :

Article 16 of the Not-For-Profit Corporation Law provides for the
powers of land banks.

 JUSTIFICATION :

The Authority Budget Office has taken the position that local public
authorities, which include land banks, do not have the power to lend
money or make grants unless expressly authorized to do so by enabling
legislation, even when such actions are in furtherance of an
enumerated purpose. An amendment is proposed to the Land Bank Act
granting land banks the power to make grants and loans for the
following reasons:

*The ability of land banks to offer grants and loans for
mission-related purposes will both enhance and accelerate the return
of tax delinquent, vacant and abandoned property to productive tax
paying use.
*Grants or loans made to the purchasers of land bank property will
provide an additional incentive to attract certain desired buyers
(e.g. owner-occupants) who might not otherwise be interested in the
subject property and grants and loans will also provide a method to
enhance development outcomes consistent with the land bank's mission
and purpose (e.g. a higher quality exterior renovation than the market
might otherwise bear in order to support neighborhood revitalization).
*The ability of land banks to offer grants and loans for exterior
improvements to property owners in the same neighborhood or area of
land bank owned properties will improve market-confidence in the
neighborhood or area and support revitalization.
*In recent years, municipalities have deliberately outsourced this
type of community revitalization work to more nimble not-for-profit
entities and no longer wish to be in the business of making grants and
loans directly. Land banks' financial assets include revenue from
sources other than the municipalities that created them, including
revenue from the sale or leasing of its properties, and, as such, the
funds used for grants and loans would not necessarily come from
appropriated funds of a municipality.
*Grants and loans made by a land bank would have to be approved by the
land bank's board of directors who have a fiduciary duty to make
prudent use of land banks' limited financial resources.
*Grants and loans made directly by a land bank (rather than by a
municipality) could be better coordinated with other land bank
projects for maximum impact and would allow for grants and loans to be
made in conjunction with the sale or leasing of land bank property.

The Authority Budget Office has taken the position that local public
authorities, which include land banks, do not have the power to
organize subsidiaries unless expressly authorized to do so by enabling
legislation, even when such actions are in furtherance of an
enumerated purpose. An amendment is proposed to the Land Bank Act
granting land banks the power to organize subsidiaries under limited
circumstances and hold title to real property in the name of lawfully
organized subsidiaries as follows:
*The primary reason for which a subsidiary may be organized must be to
limit the potential liability impact of the subsidiary's project on
the land bank or because state or federal law requires that the
project of a subsidiary be undertaken through a specific corporate or
business structure. These are the same reasons state authorities are
currently permitted to form subsidiaries.
*Land banks often acquire properties for the purpose of stabilizing
and marketing them for sale. Environmental studies and testing, which
requires site-control, might be conducted during the period that the
land bank holds title. With test results in hand, the property can be
more effectively marketed to buyers who will know the extent of
remediation the priority requires. However, without the ability to
hold potentially contaminated sites in a separate business entity,
land banks are less inclined to take title to these risky properties.
If the property could be held in a separate business entity, liability
associated with such properties would be segregated from the remainder
of the land bank's assets. Use of a subsidiary would be available for
other high risk properties as well (e.g. a condemned or structurally
compromised building). A land bank's board of directors would have to
utilize their discretion when deciding if the risk associated with the
property warrants the cost of forming a subsidiary.
*Land banks have found that a single-asset business entity must be
formed in order to borrow against certain property for renovation
expenses. Lenders require this so that liabilities associated with the
rest of the land bank's inventory do not affect the property serving
as collateral for their loan.
*To ensure that subsidiaries will not result in any loss of
transparency, land banks would have to include properties held by
subsidiaries in their property inventories required by the Land Bank
Act and subject to FOIL, and in all reports made annually to the
Authorizes Budget Office. The amendment further specifies that the
name of the subsidiary must be reasonably related to the name of the
land bank of which it is a subsidiary for ease of public
identification.
*The amendment states that lawfully formed subsidiaries and properties
held by such subsidiary shall be exempt from all taxation, just as
land banks are exempt.

 LEGISLATIVE HISTORY :

New bill

 FISCAL IMPLICATIONS :

To be determined

 LOCAL FISCAL IMPLICATIONS :

To be determined

 EFFECTIVE DATE :
Immediately

2015-S7589 - Bill Text download pdf

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

                                  7589

                            I N  S E N A T E

                              May 10, 2016
                               ___________

Introduced  by  Sen. VALESKY -- read twice and ordered printed, and when
  printed to be committed to the Committee on Corporations,  Authorities
  and Commissions

AN  ACT  to  amend  the  not-for-profit  corporation law, in relation to
  powers and dissolution of land banks

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subparagraphs 20 and 21 of paragraph (a) of section 1607 of
the  not-for-profit corporation law, as added by chapter 257 of the laws
of 2011, are amended and two new subparagraphs 22 and 23  are  added  to
read as follows:
  (20)  to  enter in agreements with a foreclosing governmental unit for
the distribution of revenues to the foreclosing  governmental  unit  and
school district; [and]
  (21)  to  do  all other things necessary to achieve the objectives and
purposes of the land bank or other laws that relate to the purposes  and
responsibility of the land bank[.];
  (22) TO LEND MONEY, TO MAKE GRANTS AND TAKE AND HOLD REAL AND PERSONAL
PROPERTY  AS  SECURITY  FOR  THE  PAYMENT  OF FUNDS SO LOANED OR FOR THE
PERFORMANCE AND ENFORCEMENT OF GRANT AGREEMENTS; AND
  (23) TO ORGANIZE A SUBSIDIARY FOR A PROJECT OR PROJECTS WHICH THE LAND
BANK HAS THE POWER TO PURSUE HEREUNDER WHEN THE PRIMARY REASON FOR WHICH
THE SUBSIDIARY SHALL BE  ORGANIZED  SHALL  BE  TO  LIMIT  THE  POTENTIAL
LIABILITY  IMPACT  OF  THE  SUBSIDIARY'S PROJECT OR PROJECTS ON THE LAND
BANK OR BECAUSE STATE OR FEDERAL LAW REQUIRES  THAT  THE  PURPOSE  OF  A
SUBSIDIARY BE UNDERTAKEN THROUGH A SPECIFIC CORPORATE OR BUSINESS STRUC-
TURE.  ALL  REAL  PROPERTY  OF A SUBSIDIARY ORGANIZED HEREUNDER SHALL BE
MAINTAINED ON THE INVENTORY LISTS REQUIRED IN THIS ARTICLE OF  THE  LAND
BANK  OF  WHICH  IT  IS  A  SUBSIDIARY AND THE SUBSIDIARY SHALL MAKE ALL
REPORTS AND OTHER DISCLOSURES AS ARE REQUIRED OF LAND BANKS  UNDER  THIS
ARTICLE  AND  AS LOCAL PUBLIC AUTHORITIES, UNLESS THE SUBSIDIARY'S OPER-
ATIONS AND FINANCES ARE CONSOLIDATED WITH THOSE  OF  THE  LAND  BANK  OF
WHICH  IT  IS  A  SUBSIDIARY.  SUBSIDIARIES ORGANIZED HEREUNDER SHALL BE
ESTABLISHED IN THE FORM OF A NEW YORK CHARITABLE  NOT-FOR-PROFIT  CORPO-

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

                                                           LBD15351-01-6

S. 7589                             2

RATION  OR  A  NEW YORK SINGLE MEMBER LIMITED LIABILITY COMPANY. SUBSID-
IARIES SHALL NOT HAVE THE AUTHORITY  TO  ISSUE  BONDS,  NOTES  OR  OTHER
DEBTS,  PROVIDED,  HOWEVER,  THAT  SUCH  SUBSIDIARIES MAY ISSUE NOTES OR
OTHER  DEBT  TO THE LAND BANK OF WHICH IT IS A SUBSIDIARY. THE ORGANIZA-
TIONAL DOCUMENTS FILED TO CREATE A SUBSIDIARY HEREUNDER SHALL STATE THAT
THE LAND BANK IS ORGANIZING THE SUBSIDIARY FOR THE  PURPOSES  SET  FORTH
HEREIN AND THE NAME OF THE SUBSIDIARY SHALL BE REASONABLY RELATED TO THE
NAME  OF THE LAND BANK OF WHICH IT IS A SUBSIDIARY. THE REAL PROPERTY OF
A SUBSIDIARY ORGANIZED HEREUNDER  AND  ITS  INCOME  AND  OPERATIONS  ARE
EXEMPT  FROM  ALL  TAXATION  BY  THE STATE OF NEW YORK AND BY ANY OF ITS
POLITICAL SUBDIVISIONS.
  S 2. Paragraph (a) of section 1609 of the  not-for-profit  corporation
law,  as added by chapter 257 of the laws of 2011, is amended to read as
follows:
  (a) The land bank shall hold in its own name, OR  IN  THE  NAME  OF  A
LAWFULLY  ORGANIZED  SUBSIDIARY,  all real property acquired by the land
bank irrespective of the identity of the transferor of such property.
  S 3. This act shall take effect immediately.

2015-S7589A - Details

Law Section:: Not-for-Profit Corporation Law
Laws Affected:: Amd §§1607 & 1609, N-PC L

2015-S7589A - Summary

Authorizes holding title of real property of a land bank in the name of a subsidiary; grants additional powers to land banks.

2015-S7589A - Sponsor Memo

                                 BILL NUMBER:  S7589A

 TITLE OF BILL :

An act to amend the not-for-profit corporation law, in relation to
powers and dissolution of land banks

 PURPOSE :

To authorize the land banks to organize subsidiaries and hold title to
property in the name of the subsidiaries.

 SUMMARY OF PROVISIONS :

Section one adds two sections to § 1607 of the Not-For-Profit
Corporation Law that would authorize the land banks to organize
subsidiaries.

Section two amends § 1609 of the Not-For-Profit Corporation Law to
allow land banks to hold title to property in the name of the lawfully
organized subsidiaries.

Section three provides the immediate effective date.

 EXISTING LAW :

Article 16 of the Not-For-Profit Corporation Law provides for the
powers of land banks.

 JUSTIFICATION :

The Authority Budget Office has taken the position that local public
authorities, which include land banks, do not have the power to
organize subsidiaries unless expressly authorized to do so by enabling
legislation, even when such actions are in furtherance of an
enumerated purpose. An amendment is proposed to the Land Bank Act
granting land banks the power to organize subsidiaries under limited
circumstances and hold title to real property in the name of lawfully
organized subsidiaries as follows:

*The primary reason for which a subsidiary may be organized must be to
limit the potential liability impact of the subsidiary's project on
the land bank or because state or federal law requires that the
project of a subsidiary be undertaken through a specific corporate or
business structure. These are the same reasons state authorities are
currently permitted to form subsidiaries.

*Land banks often acquire properties for the purpose of stabilizing
and marketing them for sale. Environmental studies and testing, which
requires site-control, might be conducted during the period that the
land bank holds title. With test results in hand, the property can be
more effectively marketed to buyers who will know the extent of
remediation the priority requires. However, without the ability to
hold potentially contaminated sites in a separate business entity,
land banks are less inclined to take title to these risky properties.
If the property could be held in a separate business entity, liability
associated with such properties would be segregated from the remainder
of the land bank's assets. Use of a subsidiary would be available for
other high risk properties as well (e.g. a condemned or structurally
compromised building). A land bank's board of directors would have to
utilize their discretion when deciding if the risk associated with the
property warrants the cost of forming a subsidiary.

*Land banks have found that a single-asset business entity must be
formed in order to borrow against certain property for renovation
expenses. Lenders require this so that liabilities associated with the
rest of the land bank's inventory do not affect the property serving
as collateral for their loan.

*To ensure that subsidiaries will not result in any loss of
transparency, land banks would have to include properties held by
subsidiaries in their property inventories required by the Land Bank
Act and subject to FOIL, and in all reports made annually to the
Authorizes Budget Office. The amendment further specifies that the
name of the subsidiary must be reasonably related to the name of the
land bank of which it is a subsidiary for ease of public
identification.

*The amendment states that lawfully formed subsidiaries and properties
held by such subsidiary shall be exempt from all taxation, just as
land banks are exempt.

 LEGISLATIVE HISTORY :

New bill

 FISCAL IMPLICATIONS :

To be determined

 LOCAL FISCAL IMPLICATIONS :

To be determined

 EFFECTIVE DATE :
Immediately

2015-S7589A - Bill Text download pdf

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

                                 7589--A

                            I N  S E N A T E

                              May 10, 2016
                               ___________

Introduced  by  Sen. VALESKY -- read twice and ordered printed, and when
  printed to be committed to the Committee on Corporations,  Authorities
  and   Commissions  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the  not-for-profit  corporation  law,  in  relation  to
  powers and dissolution of land banks

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subparagraphs 20 and 21 of paragraph (a) of section 1607 of
the not-for-profit corporation law, as added by chapter 257 of the  laws
of 2011, are amended to read as follows:
  (20)  to  enter in agreements with a foreclosing governmental unit for
the distribution of revenues to the foreclosing  governmental  unit  and
school district; [and]
  (21) TO ORGANIZE A SUBSIDIARY FOR A PROJECT OR PROJECTS WHICH THE LAND
BANK HAS THE POWER TO PURSUE HEREUNDER WHEN THE PRIMARY REASON FOR WHICH
THE  SUBSIDIARY  SHALL  BE  ORGANIZED  SHALL  BE  TO LIMIT THE POTENTIAL
LIABILITY IMPACT OF THE SUBSIDIARY'S PROJECT OR  PROJECTS  ON  THE  LAND
BANK  OR  BECAUSE  STATE  OR  FEDERAL LAW REQUIRES THAT THE PURPOSE OF A
SUBSIDIARY BE UNDERTAKEN THROUGH A SPECIFIC CORPORATE OR BUSINESS STRUC-
TURE. ALL REAL PROPERTY OF A SUBSIDIARY  ORGANIZED  HEREUNDER  SHALL  BE
MAINTAINED  ON  THE INVENTORY LISTS REQUIRED IN THIS ARTICLE OF THE LAND
BANK OF WHICH IT IS A SUBSIDIARY  AND  THE  SUBSIDIARY  SHALL  MAKE  ALL
REPORTS  AND  OTHER DISCLOSURES AS ARE REQUIRED OF LAND BANKS UNDER THIS
ARTICLE AND AS LOCAL PUBLIC AUTHORITIES, UNLESS THE  SUBSIDIARY'S  OPER-
ATIONS  AND  FINANCES  ARE  CONSOLIDATED  WITH THOSE OF THE LAND BANK OF
WHICH IT IS A SUBSIDIARY.  SUBSIDIARIES  ORGANIZED  HEREUNDER  SHALL  BE
ESTABLISHED  IN  THE FORM OF A NEW YORK CHARITABLE NOT-FOR-PROFIT CORPO-
RATION OR A NEW YORK SINGLE MEMBER LIMITED  LIABILITY  COMPANY.  SUBSID-
IARIES  SHALL  NOT  HAVE  THE  AUTHORITY  TO ISSUE BONDS, NOTES OR OTHER
DEBTS, PROVIDED, HOWEVER, THAT SUCH  SUBSIDIARIES  MAY  ISSUE  NOTES  OR
OTHER  DEBT  TO THE LAND BANK OF WHICH IT IS A SUBSIDIARY. THE ORGANIZA-
TIONAL DOCUMENTS FILED TO CREATE A SUBSIDIARY HEREUNDER SHALL STATE THAT
THE LAND BANK IS ORGANIZING THE SUBSIDIARY FOR THE  PURPOSES  SET  FORTH

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

                                                           LBD15351-02-6

S. 7589--A                          2

HEREIN AND THE NAME OF THE SUBSIDIARY SHALL BE REASONABLY RELATED TO THE
NAME  OF THE LAND BANK OF WHICH IT IS A SUBSIDIARY. THE REAL PROPERTY OF
A SUBSIDIARY ORGANIZED HEREUNDER  AND  ITS  INCOME  AND  OPERATIONS  ARE
EXEMPT  FROM  ALL  TAXATION  BY  THE STATE OF NEW YORK AND BY ANY OF ITS
POLITICAL SUBDIVISIONS; AND
  (22) to do all other things necessary to achieve  the  objectives  and
purposes  of the land bank or other laws that relate to the purposes and
responsibility of the land bank.
  S 2. Paragraph (a) of section 1609 of the  not-for-profit  corporation
law,  as added by chapter 257 of the laws of 2011, is amended to read as
follows:
  (a) The land bank shall hold in its own name, OR  IN  THE  NAME  OF  A
LAWFULLY  ORGANIZED  SUBSIDIARY,  all real property acquired by the land
bank irrespective of the identity of the transferor of such property.
  S 3. This act shall take effect immediately.

2015-S7589B (ACTIVE) - Details

Law Section:: Not-for-Profit Corporation Law
Laws Affected:: Amd §§1607 & 1609, N-PC L

2015-S7589B (ACTIVE) - Summary

Authorizes holding title of real property of a land bank in the name of a subsidiary; grants additional powers to land banks.

2015-S7589B (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S7589B

 TITLE OF BILL :

An act to amend the not-for-profit corporation law, in relation to the
powers of a land bank

 PURPOSE :

To authorize the land banks to organize subsidiaries and hold title to
property in the name of the subsidiaries.

 SUMMARY OF PROVISIONS :

Section one adds two sections to § 1607 of the Not-For-Profit
Corporation Law that would authorize the land banks to organize
subsidiaries.

Section two amends § 1609 of the Not-For-Profit Corporation Law to
allow land banks to hold title to property in the name of the lawfully
organized subsidiaries.

Section three provides the immediate effective date.

 EXISTING LAW :

Article 16 of the Not-For-Profit Corporation Law provides for the
powers of land banks.

 JUSTIFICATION :

The Authority Budget Office has taken the position that local public
authorities, which include land banks, do not have the power to
organize subsidiaries unless expressly authorized to do so by enabling
legislation, even when such actions are in furtherance of an
enumerated purpose. An amendment is proposed to the Land Bank Act
granting land banks the power to organize subsidiaries under limited
circumstances and hold title to real property in the name of lawfully
organized subsidiaries as follows:

*The primary reason for which a subsidiary may be organized must be to
limit the potential liability impact of the subsidiary's project on
the land bank or because state or federal law requires that the
project of a subsidiary be undertaken through a specific corporate or
business structure. These are the same reasons state authorities are
currently permitted to form subsidiaries.

*Land banks often acquire properties for the purpose of stabilizing
and marketing them for sale. Environmental studies and testing, which
requires site-control, might be conducted during the period that the
land bank holds title. With test results in hand, the property can be
more effectively marketed to buyers who will know the extent of
remediation the priority requires. However, without the ability to
hold potentially contaminated sites in a separate business entity,
land banks are less inclined to take title to these risky properties.
If the property could be held in a separate business entity, liability
associated with such properties would be segregated from the remainder
of the land bank's assets. Use of a subsidiary would be available for
other high risk properties as well (e.g. a condemned or structurally
compromised building). A land bank's board of directors would have to
utilize their discretion when deciding if the risk associated with the
property warrants the cost of forming a subsidiary.

*Land banks have found that a single-asset business entity must be
formed in order to borrow against certain property for renovation
expenses. Lenders require this so that liabilities associated with the
rest of the land bank's inventory do not affect the property serving
as collateral for their loan.

*To ensure that subsidiaries will not result in any loss of
transparency, land banks would have to include properties held by
subsidiaries in their property inventories required by the Land Bank
Act and subject to FOIL, and in all reports made annually to the
Authorizes Budget Office. The amendment further specifies that the
name of the subsidiary must be reasonably related to the name of the
land bank of which it is a subsidiary for ease of public
identification.

*The amendment states that lawfully formed subsidiaries and properties
held by such subsidiary shall be exempt from all taxation, just as
land banks are exempt.

 LEGISLATIVE HISTORY :

New bill

 FISCAL IMPLICATIONS :

To be determined

 LOCAL FISCAL IMPLICATIONS :

To be determined

 EFFECTIVE DATE :
Immediately

2015-S7589B (ACTIVE) - Bill Text download pdf

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

                                 7589--B

                            I N  S E N A T E

                              May 10, 2016
                               ___________

Introduced  by  Sen. VALESKY -- read twice and ordered printed, and when
  printed to be committed to the Committee on Corporations,  Authorities
  and   Commissions  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said  committee  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN  ACT  to amend the not-for-profit corporation law, in relation to the
  powers of a land bank

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Clauses 20 and 21 of paragraph (a) of section 1607 of the
not-for-profit corporation law, as added by chapter 257 of the  laws  of
2011, are amended to read as follows:
  (20)  to  enter in agreements with a foreclosing governmental unit for
the distribution of revenues to the foreclosing  governmental  unit  and
school district; [and]
  (21) TO ORGANIZE A SUBSIDIARY FOR A PROJECT OR PROJECTS WHICH THE LAND
BANK  HAS THE POWER TO PURSUE UNDER THIS ARTICLE WHEN THE PRIMARY REASON
FOR WHICH THE SUBSIDIARY SHALL BE ORGANIZED SHALL BE TO LIMIT THE POTEN-
TIAL LIABILITY IMPACT OF THE SUBSIDIARY'S PROJECT  OR  PROJECTS  ON  THE
LAND BANK OR BECAUSE STATE OR FEDERAL LAW REQUIRES THAT THE PURPOSE OF A
SUBSIDIARY BE UNDERTAKEN THROUGH A SPECIFIC CORPORATE OR BUSINESS STRUC-
TURE.  ALL  REAL  PROPERTY  OF A SUBSIDIARY ORGANIZED UNDER THIS ARTICLE
SHALL BE MAINTAINED ON THE INVENTORY LISTS REQUIRED IN THIS  ARTICLE  OF
THE  LAND BANK OF WHICH IT IS A SUBSIDIARY AND THE SUBSIDIARY SHALL MAKE
ALL REPORTS AND OTHER DISCLOSURES AS ARE REQUIRED OF  LAND  BANKS  UNDER
THIS  ARTICLE  AND  AS LOCAL PUBLIC AUTHORITIES, UNLESS THE SUBSIDIARY'S
OPERATIONS AND FINANCES ARE CONSOLIDATED WITH THOSE OF THE LAND BANK  OF
WHICH  IT  IS  A  SUBSIDIARY.  SUBSIDIARIES ORGANIZED UNDER THIS ARTICLE
SHALL BE ESTABLISHED IN THE FORM OF A NEW YORK CHARITABLE NOT-FOR-PROFIT
CORPORATION OR A NEW  YORK  SINGLE  MEMBER  LIMITED  LIABILITY  COMPANY.
SUBSIDIARIES SHALL NOT HAVE THE AUTHORITY TO ISSUE BONDS, NOTES OR OTHER
DEBTS,  PROVIDED,  HOWEVER,  THAT  SUCH  SUBSIDIARIES MAY ISSUE NOTES OR
OTHER DEBT TO THE LAND BANK OF WHICH IT IS A SUBSIDIARY.  THE  ORGANIZA-

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

                                                           LBD15351-03-6

S. 7589--B                          2

TIONAL  DOCUMENTS  FILED TO CREATE A SUBSIDIARY UNDER THIS ARTICLE SHALL
STATE THAT THE LAND BANK IS ORGANIZING THE SUBSIDIARY FOR  THE  PURPOSES
SET  FORTH  IN  THIS  ARTICLE  AND  THE  NAME OF THE SUBSIDIARY SHALL BE
REASONABLY RELATED TO THE NAME OF THE LAND BANK OF WHICH IT IS A SUBSID-
IARY. THE REAL PROPERTY OF A SUBSIDIARY ORGANIZED UNDER THIS ARTICLE AND
ITS  INCOME  AND OPERATIONS ARE EXEMPT FROM ALL TAXATION BY THE STATE OF
NEW YORK AND BY ANY OF ITS POLITICAL SUBDIVISIONS; AND
  (22) to do all other things necessary to achieve  the  objectives  and
purposes  of the land bank or other laws that relate to the purposes and
responsibility of the land bank.
  S 2. Paragraph (a) of section 1609 of the  not-for-profit  corporation
law,  as added by chapter 257 of the laws of 2011, is amended to read as
follows:
  (a) The land bank shall hold in its own name, OR  IN  THE  NAME  OF  A
LAWFULLY  ORGANIZED  SUBSIDIARY,  all real property acquired by the land
bank irrespective of the identity of the transferor of such property.
  S 3. This act shall take effect immediately.

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Senate Bill S7589

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Sponsored By

David J. Valesky

Archive: Last Bill Status Via A7529 - Signed by Governor

Bill Amendments

2015-S7589 - Details

2015-S7589 - Summary

2015-S7589 - Sponsor Memo

2015-S7589 - Bill Text download pdf

2015-S7589A - Details

2015-S7589A - Summary

2015-S7589A - Sponsor Memo

2015-S7589A - Bill Text download pdf

2015-S7589B (ACTIVE) - Details

2015-S7589B (ACTIVE) - Summary

2015-S7589B (ACTIVE) - Sponsor Memo

2015-S7589B (ACTIVE) - Bill Text download pdf

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