The New York State Senate

 
                     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.