S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1768
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 20, 2023
                                ___________
 
 Introduced by M. of A. COLTON, ZEBROWSKI, BRONSON, REYES, NORRIS, DINOW-
   ITZ,  DICKENS,  MAGNARELLI,  ZINERMAN, SAYEGH, STIRPE, L. ROSENTHAL --
   Multi-Sponsored by -- M. of A. McDONOUGH -- read once and referred  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] 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03999-01-3
              

 A. 1768                             2
 
 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.