S T A T E O F N E W Y O R K
________________________________________________________________________
4078--A
2021-2022 Regular Sessions
I N A S S E M B L Y
February 1, 2021
___________
Introduced by M. of A. COLTON, ZEBROWSKI, ABINANTI, BRONSON, REYES,
NORRIS, DINOWITZ, DICKENS, MAGNARELLI, ENGLEBRIGHT, ZINERMAN, GALEF --
Multi-Sponsored by -- M. of A. McDONOUGH -- read once and referred to
the Committee on Consumer Affairs and Protection -- reference changed
to the Committee on Corporations, Authorities and Commissions --
recommitted to the Committee on Corporations, Authorities and Commis-
sions in accordance with Assembly Rule 3, sec. 2 -- 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:
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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05610-02-2
A. 4078--A 2
c. the] WITHOUT THE LEGISLATURE ENACTING A LAW GRANTING SUCH STATE
AUTHORITY SUCH POWER IF SUCH AUTHORITY PROVIDES WRITTEN NOTIFICATION
OF ITS INTENTION TO ORGANIZE SUCH SUBSIDIARY CORPORATION SIXTY DAYS
PRIOR TO SUCH ORGANIZATION. SUCH WRITTEN NOTICE SHALL BE PROVIDED TO THE
GOVERNOR, THE SPEAKER OF THE ASSEMBLY, AND THE TEMPORARY PRESIDENT OF
THE SENATE AND SHALL BE SUBJECT TO DENIAL BY THE GOVERNOR, THE SENATE,
OR THE ASSEMBLY. DENIAL BY THE GOVERNOR SHALL TAKE THE FORM OF A SIGNED
CERTIFICATION BY THE GOVERNOR. DENIAL BY EITHER HOUSE OF THE LEGISLA-
TURE SHALL TAKE THE FORM OF A RESOLUTION BY SUCH HOUSE. IF THE GOVERNOR
AND EACH HOUSE OF THE LEGISLATURE RECEIVES NOTIFICATION OF A PROPOSED
ORGANIZATION DURING THE MONTHS OF JANUARY THROUGH MARCH, THE GOVERNOR
AND EACH HOUSE OF THE LEGISLATURE MAY TAKE ANY SUCH ACTION WITHIN SIXTY
DAYS OF RECEIVING SUCH NOTIFICATION, PROVIDED HOWEVER, IF THE GOVERNOR
AND EACH HOUSE OF THE LEGISLATURE RECEIVES NOTIFICATION OF A PROPOSED
ORGANIZATION AND THERE IS NOT SIXTY DAYS REMAINING DURING THE LEGISLA-
TIVE SESSION, THE LEGISLATURE MAY TAKE ANY SUCH ACTION WITHIN SIXTY DAYS
OF JANUARY FIRST OF THE FOLLOWING YEAR. THE STATE AUTHORITY MAY NOT
EFFECTUATE THE PROPOSED ORGANIZATION OF THE SUBSIDIARY UNTIL SUCH SIXTY
DAY PERIOD HAS ELAPSED. 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 consol-
idated with those of the authority of which it is a subsidiary.
§ 2. This act shall take effect immediately.