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.
STATE OF NEW YORK
________________________________________________________________________
2479
2025-2026 Regular Sessions
IN ASSEMBLY
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:
1 Section 1. Subdivision 1 of section 2827-a of the public authorities
2 law, as added by chapter 506 of the laws of 2009, is amended to read as
3 follows:
4 1. Notwithstanding any law to the contrary, no state authority shall
5 hereafter have the power to organize any subsidiary corporation unless
6 the legislature shall have enacted a law granting such state authority
7 such power for the organization of a specific corporation, provided,
8 however, that a state authority may organize a subsidiary corporation
9 [pursuant to the following requirements:
10 a. the purpose for which the subsidiary corporation shall be organized
11 shall be for a project or projects which the state authority has the
12 power to pursue pursuant to its corporate purposes;
13 b. the primary reason for which the subsidiary corporation shall be
14 organized shall be to limit the potential liability impact of the
15 subsidiary's project or projects on the authority or because state or
16 federal law requires that the purpose of a subsidiary be undertaken
17 through a specific corporate structure; and
18 c. the] without the legislature enacting a law granting such state
19 authority such power if such authority provides written notification
20 of its intention to organize such subsidiary corporation sixty days
21 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
1 governor, the speaker of the assembly, and the temporary president of
2 the senate and shall be subject to denial by the governor, the senate,
3 or the assembly. Denial by the governor shall take the form of a signed
4 certification by the governor. Denial by either house of the legisla-
5 ture shall take the form of a resolution by such house. If the governor
6 and each house of the legislature receives notification of a proposed
7 organization during the months of January through March, the governor
8 and each house of the legislature may take any such action within sixty
9 days of receiving such notification, provided however, if the governor
10 and each house of the legislature receives notification of a proposed
11 organization and there is not sixty days remaining during the legisla-
12 tive session, the legislature may take any such action within sixty days
13 of January first of the following year. The state authority may not
14 effectuate the proposed organization of the subsidiary until such sixty
15 day period has elapsed. Any subsidiary corporation shall make the
16 reports and other disclosures as are required of state authorities,
17 unless the subsidiary corporation's operations and finances are consol-
18 idated with those of the authority of which it is a subsidiary.
19 § 2. This act shall take effect immediately.
