New York S 2377: Prohibits the formation of a subsidiary of a public authority without prior approval of the legislature

Bill Text

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S02377 Summary:

BILL NOS02377 

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SAME ASSAME AS A02479

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SPONSORMATTERA

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COSPNSRRHOADS

&nbsp

MLTSPNSR

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Amd §2827-a, Pub Auth L

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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.

Go to top S02377 Actions:

BILL NOS02377 

&nbsp

01/16/2025REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS

05/20/20251ST REPORT CAL.1183

05/21/20252ND REPORT CAL.

05/22/2025ADVANCED TO THIRD READING 

06/06/2025PASSED SENATE

06/06/2025DELIVERED TO ASSEMBLY

06/06/2025referred to corporations, authorities and commissions

01/07/2026died in assembly

01/07/2026returned to senate

01/07/2026REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS

05/19/20261ST REPORT CAL.1222

05/20/20262ND REPORT CAL.

05/21/2026ADVANCED TO THIRD READING 

06/04/2026PASSED SENATE

06/04/2026DELIVERED TO ASSEMBLY

06/04/2026referred to corporations, authorities and commissions

Go to topS02377 Committee&nbspVotes:

Go to topS02377 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS02377 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 2377

 2025-2026 Regular Sessions

 IN SENATE

 January 16, 2025
 ___________

 Introduced by Sen. MATTERA -- 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] 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
 22 governor, the speaker of the assembly, and the temporary president of
 23 the senate and shall be subject to denial by the governor, the senate,

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD05888-01-5

 S. 2377 2

 1 or the assembly. Denial by the governor shall take the form of a signed
 2 certification by the governor. Denial by either house of the legisla-
 3 ture shall take the form of a resolution by such house. If the governor
 4 and each house of the legislature receives notification of a proposed
 5 organization during the months of January through March, the governor
 6 and each house of the legislature may take any such action within sixty
 7 days of receiving such notification, provided however, if the governor
 8 and each house of the legislature receives notification of a proposed
 9 organization and there is not sixty days remaining during the legisla-
 10 tive session, the legislature m