Bill Text: NY S01443 | 2013-2014 | General Assembly | Introduced

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Bill Title: Prohibits the formation of a subsidiary of a public authority without prior approval of the legislature.

Spectrum: Bipartisan Bill

Status: (Engrossed - Dead) 2014-03-11 - referred to corporations, authorities and commissions [S01443 Detail]

Download: New_York-2013-S01443-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         1443
                              2013-2014 Regular Sessions
                                   I N  S E N A T E
                                      (PREFILED)
                                    January 9, 2013
                                      ___________
       Introduced by Sens. FLANAGAN, MARTINS -- 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:
    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].  ANY subsidiary corporation shall make the reports and other
   19  disclosures as are required of state authorities, unless the  subsidiary
   20  corporation's operations and finances are consolidated with those of the
   21  authority of which it is a subsidiary.
   22    S 2. This act shall take effect immediately.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD04171-01-3