STATE OF NEW YORK ________________________________________________________________________ 7049 2017-2018 Regular Sessions IN ASSEMBLY March 29, 2017 ___________ Introduced by M. of A. COLTON, ZEBROWSKI, JAFFEE, ABINANTI, BRONSON -- Multi-Sponsored by -- M. of A. LOPEZ, 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: 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 § 2. This act shall take effect immediately. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD05006-01-7