NY State Senate Bill S4280

Archive: Last Bill Status - In Senate Committee Rules Committee

Introduced
In Committee
On Floor Calendar
- Passed Senate
- Passed Assembly
Delivered to Governor
Signed/Vetoed by Governor

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Actions

view actions (14)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 20, 2018	committed to rules
May 22, 2018	advanced to third reading
May 16, 2018	2nd report cal.
May 15, 2018	1st report cal.1241
Jan 03, 2018	referred to corporations, authorities and commissions returned to senate died in assembly
May 15, 2017	referred to corporations, authorities and commissions delivered to assembly passed senate
Mar 30, 2017	advanced to third reading
Mar 29, 2017	2nd report cal.
Mar 28, 2017	1st report cal.527
Feb 08, 2017	referred to corporations, authorities and commissions

Votes

view votes

May 15, 2018 - Corporations, Authorities and Commissions committee Vote

S4280

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

May 15, 2017 - floor Vote

S4280

floor

Aye

Nay

Absent

Excused

Abstained

Mar 28, 2017 - Corporations, Authorities and Commissions committee Vote

S4280

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

Co-Sponsors

S4280 (ACTIVE) - Details

See Assembly Version of this Bill:: A7049
Current Committee:: Senate Rules
Law Section:: Public Authorities Law
Laws Affected:: Amd §2827-a, Pub Auth L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S3919, A4298
2011-2012: S4690, A3228
2013-2014: S1443, A1599
2015-2016: S2054, S6591, A4729
2019-2020: S3090, A3089
2021-2022: S5137, A4078
2023-2024: S979, A1768

S4280 (ACTIVE) - Summary

Prohibits the formation of a subsidiary of a public authority without prior approval of the legislature.

S4280 (ACTIVE) - Sponsor Memo

 BILL NUMBER:  S4280

 TITLE OF BILL :  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

 PURPOSE OR GENERAL IDEA OF BILL :

This bill seeks to prohibit the formation of a subsidiary of a public
authority or public benefit corporation without prior permission of
the legislature.

 SUMMARY OF SPECIFIC PROVISIONS :

This bill would amend section 2827-a of the Public Authorities Law, to
eliminate the exception to the general prohibition against public
authorities establishing any new subsidiary corporation without prior
statutory authority.

 JUSTIFICATION :

Public Authorities, the hybrid of a government agency and a private
corporation, were established to perform specific, focused missions on
behalf of the people of the state of New York. As finance, contracting
and operating entities, they have the flexibility and power to
accomplish great tasks. From bridge, edifice, infrastructure, school

and highway building, to the operation of transportation systems,
convention and sports centers, economic development programs and
public health and infrastructure facilities, these entities perform an
indispensable role and dramatically enhance the quality of the daily
lives of every New Yorker.

Due to their flexibility and efficiency of operation, their design for
speed, as well as their focused mission and specific purpose, New
York's public authorities have often been tasked with performing the
most challenging, difficult and controversial of state projects. From
the time they were used by Robert Moses to build the great bridges,
buildings, parks and edifices of early 20th century New York, to the
present day, there have been many questions and concerns raised
regarding their role and their lack of accountability. Without them,
however, so many of the things that make New York the Empire State,
from our Thruway, to our State University campuses, to our New York
City Transit systems, to the site for the 1980 Olympics where
America's famous Miracle on Ice occurred, to the very housing units
millions of New Yorkers now call home, simply would not exist today.

With the immense challenges and vast revenue streams which our public
authorities have been asked to oversee, there have been many
amendments to the Public Authorities Law to improve public
accountability without compromising their effectiveness or mission.
These reforms include the establishment of the Public Authorities
Control Board as well as the modernization of the state statutes
governing their debt issuance, capital expenditures, contracting
procedures, and reporting requirements. As we step firmly into the
realm of the new 21st century, we have again witnessed some problems
with certain operations within select public authorities. It is
therefore incumbent upon the Legislature to once again address these
issues with the same determination, and in the same manner, as to
promote increased accountability without diminishing the public
benefit which these governmentally-created corporations provide.

Financial, budget and accounting questions involving billions of
dollars of public monies, require reform. Uncertainty over the
fairness and propriety of procurement contract awards must be overcome
to again regain the public's confidence and trust.  Accountability and
operational soundness must be clearly demonstrated by these entities
through public disclosure and access, with the ultimate oversight,
resting with the people's elected representatives in the State Senate
and Assembly.

This bill seeks to accomplish an important and major reform by
prohibiting the formation of a subsidiary of a public authority
without prior permission of the Legislature. Several public
authorities have gotten themselves into trouble due to lack of
oversight and an express set of guidelines of their subsidiaries.

This bill seeks to correct this situation, and remain true to the
spirit of § 5 of Article 10 of the State Constitution which requires
that only the State Legislature may create a public authority. The
formation of a subsidiary by a public authority which itself must be
constitutionally created by the Legislature, should not be allowed to
be created by the parent public authority. To permit otherwise not
only violates the spirit of the constitution, but also permits a
questionable delegation and abrogation of state legislative authority.

 PRIOR LEGISLATIVE HISTORY :

2005-06: S.5102-A/A.6757 - Vetoed #369
2007: S.3847-A/A.1343-A -- PASSED SENATE/Corporations
2008: S.3847-A/A.1343-A -- PASSED SENATE/Ways and Means
2009-10: S.3919/A.4298 -- CORPORATIONS/Corporations
2011: S.4690-A/A.3228-A  -RULES/Corporations
2012: S.4690-A/A.3228-A -- PASSED SENATE/Corporations
2013-14: S.1443/A.1599 -- PASSED SENATE/Corporations
2015: S.2054 - PASSED SENATE/Corporations
2016: S.6591/A.4729

 FISCAL IMPLICATIONS :

None noted.

 EFFECTIVE DATE :
Immediately.

S4280 (ACTIVE) - Bill Text download pdf


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

                                  4280

                       2017-2018 Regular Sessions

                            I N  S E N A T E

                            February 8, 2017
                               ___________

Introduced  by  Sen.  RANZENHOFER -- read twice and ordered printed, and
  when printed to be committed to the Committee on Corporations, Author-
  ities 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.  Subdivision 1 of section 2827-a of the public authorities
law, as added by chapter 506 of the laws of 2009, is amended to read  as
follows:
  1.  Notwithstanding  any law to the contrary, no state authority shall
hereafter have the power to organize any subsidiary  corporation  unless
the  legislature  shall have enacted a law granting such state authority
such power for the organization of a  specific  corporation[,  provided,
however,  that  a  state authority may organize a subsidiary corporation
pursuant to the following requirements:
  a. the purpose for which the subsidiary corporation shall be organized
shall be for a project or projects which the  state  authority  has  the
power to pursue pursuant to its corporate purposes;
  b.  the  primary  reason for which the subsidiary corporation shall be
organized shall be to  limit  the  potential  liability  impact  of  the
subsidiary's  project  or  projects on the authority or because state or
federal law requires that the purpose  of  a  subsidiary  be  undertaken
through a specific corporate structure; and
  c.  the].  ANY subsidiary corporation shall make the reports and other
disclosures as are required of state authorities, unless the  subsidiary
corporation's operations and finances are consolidated with those of the
authority of which it is a subsidiary.
  § 2. This act shall take effect immediately.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05006-01-7

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The New York State Senate

senate Bill S4280

Sponsored By

Archive: Last Bill Status - In Senate Committee Rules Committee

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Votes

May 15, 2018 - Corporations, Authorities and Commissions committee Vote

Corporations, Authorities and Commissions Committee Vote: May 15, 2018

May 15, 2017 - floor Vote

Floor Vote: May 15, 2017

Mar 28, 2017 - Corporations, Authorities and Commissions committee Vote

Corporations, Authorities and Commissions Committee Vote: Mar 28, 2017

Co-Sponsors

S4280 (ACTIVE) - Details

S4280 (ACTIVE) - Summary

S4280 (ACTIVE) - Sponsor Memo

S4280 (ACTIVE) - Bill Text download pdf

Comments

senate Bill S4280

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Sponsored By

Michael H. Ranzenhofer

Archive: Last Bill Status - In Senate Committee Rules Committee

Your Voice

Actions

Votes

May 15, 2018 - Corporations, Authorities and Commissions committee Vote

Corporations, Authorities and Commissions Committee Vote: May 15, 2018

May 15, 2017 - floor Vote

Floor Vote: May 15, 2017

Mar 28, 2017 - Corporations, Authorities and Commissions committee Vote

Corporations, Authorities and Commissions Committee Vote: Mar 28, 2017

Co-Sponsors

William J. Larkin, Jr.

S4280 (ACTIVE) - Details

S4280 (ACTIVE) - Summary

S4280 (ACTIVE) - Sponsor Memo

S4280 (ACTIVE) - Bill Text download pdf

Comments