NY State Senate Bill S5137A

Archive: Last Bill Status - Passed Senate

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

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Actions

view actions (18)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 31, 2022	referred to corporations, authorities and commissions delivered to assembly passed senate
May 16, 2022	advanced to third reading
May 11, 2022	2nd report cal.
May 10, 2022	1st report cal.1187
Apr 28, 2022	print number 5137a
Apr 28, 2022	amend and recommit to corporations, authorities and commissions
Jan 05, 2022	referred to corporations, authorities and commissions returned to senate died in assembly
May 11, 2021	referred to consumer affairs and protection delivered to assembly passed senate
Apr 26, 2021	advanced to third reading
Apr 21, 2021	2nd report cal.
Apr 20, 2021	1st report cal.698
Feb 24, 2021	referred to corporations, authorities and commissions

Votes

view votes

May 31, 2022 - floor Vote

S5137A

floor

Aye

Nay

Absent

Excused

Abstained

May 10, 2022 - Corporations, Authorities and Commissions committee Vote

S5137A

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

show Corporations, Authorities and Commissions committee vote details

Corporations, Authorities and Commissions Committee Vote: May 10, 2022

aye (7)

May 11, 2021 - floor Vote

S5137

floor

Aye

Nay

Absent

Excused

Abstained

Apr 20, 2021 - Corporations, Authorities and Commissions committee Vote

S5137

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

Bill Amendments

Original

A (Active)

Original

A (Active)

S5137 - Details

See Assembly Version of this Bill:: A4078
Current Committee:: Assembly Corporations, Authorities And Commissions
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
2017-2018: S4280, A7049
2019-2020: S3090, A3089
2023-2024: S979, A1768

S5137 - Summary

Prohibits the formation of a subsidiary of a public authority without prior approval of the legislature; allows the formation of a subsidiary of a public authority without prior approval of the legislature if such public authority files a written notice sixty days prior to the organization of such subsidiary with the governor and the legislature.

S5137 - Sponsor Memo

 
BILL NUMBER: S5137

SPONSOR: MATTERA
 
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:

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 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 accom-
plish 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 chal-
lenging, 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, capi-
tal 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 prohibit-
ing 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 spir-
it 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 - CORPORATIONS/Corporations
2017: S.4280/A.7049 - PASSED SENATE/Corporations
2018: S.4280/A.7049 - RULES/Corporations

 
FISCAL IMPLICATIONS:

None noted.

 
EFFECTIVE DATE:
Immediately.

S5137 - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5137
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 24, 2021
                                ___________
 
 Introduced  by  Sen. MATTERA -- read twice and ordered printed, and when
   printed to be committed to the Committee 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. 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.
                                                            LBD05610-01-1

S5137A (ACTIVE) - Details

See Assembly Version of this Bill:: A4078
Current Committee:: Assembly Corporations, Authorities And Commissions
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
2017-2018: S4280, A7049
2019-2020: S3090, A3089
2023-2024: S979, A1768

S5137A (ACTIVE) - Summary

S5137A (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S5137A

SPONSOR: MATTERA
 
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:

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 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 accom-
plish 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 chal-
lenging, 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, capi-
tal 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 opera-
tional 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 prohibit-
ing 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 spir-
it 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 - CORPORATIONS/Corporations

2017: 5.4280/A.7049 - PASSED SENATE/Corporations

2018: 5.4280/A.7049 - RULES/Corporations

 
FISCAL IMPLICATIONS:

None noted.

 
EFFECTIVE DATE:
Immediately.

S5137A (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5137--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 24, 2021
                                ___________
 
 Introduced  by  Sen. MATTERA -- read twice and ordered printed, and when
   printed to be committed to the Committee on Corporations,  Authorities
   and  Commissions  --  recommitted  to  the  Committee on Corporations,
   Authorities and Commissions in accordance with Senate Rule 6,  sec.  8
   --  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
   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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05610-03-2

 S. 5137--A                          2
 
 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.

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The New York State Senate

senate Bill S5137A

Sponsored By

Archive: Last Bill Status - Passed Senate

Your Voice

Actions

Votes

May 31, 2022 - floor Vote

Floor Vote: May 31, 2022

May 10, 2022 - Corporations, Authorities and Commissions committee Vote

Corporations, Authorities and Commissions Committee Vote: May 10, 2022

May 11, 2021 - floor Vote

Floor Vote: May 11, 2021

Apr 20, 2021 - Corporations, Authorities and Commissions committee Vote

Committee Vote: Apr 20, 2021

Bill Amendments

S5137 - Details

S5137 - Summary

S5137 - Sponsor Memo

S5137 - Bill Text download pdf

S5137A (ACTIVE) - Details

S5137A (ACTIVE) - Summary

S5137A (ACTIVE) - Sponsor Memo

S5137A (ACTIVE) - Bill Text download pdf

Comments

senate Bill S5137A

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Sponsored By

Mario R. Mattera

Archive: Last Bill Status - Passed Senate

Your Voice

Actions

Votes

May 31, 2022 - floor Vote

Floor Vote: May 31, 2022

May 10, 2022 - Corporations, Authorities and Commissions committee Vote

Corporations, Authorities and Commissions Committee Vote: May 10, 2022

May 11, 2021 - floor Vote

Floor Vote: May 11, 2021

Apr 20, 2021 - Corporations, Authorities and Commissions committee Vote

Committee Vote: Apr 20, 2021

Bill Amendments

S5137 - Details

S5137 - Summary

S5137 - Sponsor Memo

S5137 - Bill Text download pdf

S5137A (ACTIVE) - Details

S5137A (ACTIVE) - Summary

S5137A (ACTIVE) - Sponsor Memo

S5137A (ACTIVE) - Bill Text download pdf

Comments