Assembly Bill A2479

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2479
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 17, 2025
                                ___________
 
 Introduced  by  M.  of  A. COLTON, BRONSON, REYES, DINOWITZ, MAGNARELLI,
   ZINERMAN, SAYEGH, STIRPE,  ROSENTHAL,  SEAWRIGHT,  EPSTEIN,  GALLAHAN,
   KELLES,  OTIS -- Multi-Sponsored by -- M. of A. McDONOUGH -- read once
   and referred to the Committee on Corporations, Authorities and Commis-
   sions

 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
 PRIOR TO SUCH ORGANIZATION. SUCH WRITTEN NOTICE SHALL BE PROVIDED TO THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05888-01-5
              

 A. 2479                             2
 
 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.