New York 2025-2026 Regular Session

New York Senate Bill S02377

Introduced
1/16/25  
Refer
1/16/25  
Engrossed
6/6/25  
Refer
6/6/25  

Caption

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.

Summary

Bill S02377 amends the public authorities law to require that any state authority must obtain legislative approval before forming a subsidiary corporation. The bill stipulates that a state authority can only organize a subsidiary if the legislature enacts a law granting such power. Alternatively, a state authority may organize a subsidiary without prior approval if it provides written notification to the governor and the legislature at least sixty days in advance of the intended organization. This notification process is designed to ensure legislative oversight of subsidiary formations.

Impact

The passage of this bill will enhance legislative oversight over the formation of subsidiary corporations by state authorities, thereby potentially limiting the autonomy of these authorities in corporate structuring. It aims to ensure that the interests of the state and its citizens are considered before any subsidiary is created, which may lead to increased accountability and transparency in public authority operations. This change could affect various public authorities that currently operate with more flexibility in forming subsidiaries.

Sentiment

The sentiment surrounding Bill S02377 appears to be largely supportive, as evidenced by its passage through the Senate Corporations, Authorities and Commissions Committee with a unanimous vote and a strong final passage in the Senate with only two dissenting votes. This indicates a general agreement among legislators on the importance of oversight in the formation of subsidiary corporations.

Contention

While the bill received broad support, there may be concerns from some public authorities about the potential delays and bureaucratic hurdles introduced by the requirement for legislative approval or advance notification. Opponents may argue that this could hinder the ability of public authorities to respond quickly to opportunities or challenges that require the formation of subsidiaries, thus impacting their operational efficiency.

Companion Bills

NY A02479

Same As 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.

Previously Filed As

NY S00979

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.

NY A01768

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.

NY A02479

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.

NY S07996

Requires the metropolitan transportation authority submit to the legislature and publish on its shared internet website an annual open data plan; requires the MTA to publish all customer surveys and complaint data, incident report data, police incident and arrest data collected by the authority or any of its affiliates and subsidiaries no later than January 1, 2026.

NY A02127

Establishes the Hudson Valley power authority to own and operate electricity service and to create or acquire one or more wholly owned subsidiaries or membership interests in subsidiaries; establishes energy observatory corporations for studying and enabling effective community governance of power authorities; makes related provisions.

NY S02026

Establishes the Hudson Valley power authority to own and operate electricity service and to create or acquire one or more wholly owned subsidiaries or membership interests in subsidiaries; establishes energy observatory corporations for studying and enabling effective community governance of power authorities; makes related provisions.

NY A08436

Requires subsidiaries of certain authorities and their employees to submit all unresolvable contract negotiations to binding arbitration.

NY A00574

Requires accessible buses to be available within a service area measuring three miles from any bus line of the authority or its subsidiaries.

NY S03144

Requires accessible buses to be available within a service area measuring three miles from any bus line of the authority or its subsidiaries.

NY HB05937

An Act Repealing The Authority To Impose A Public Benefits Charge Without Specific Legislative Approval.

Similar Bills

CA SB239

Crimes: criminal threats.

IL HB4728

DD FACILITY-ASSET MGMT COMPANY

IL SB3118

DD FACILITY-ASSET MGMT COMPANY

RI S0211

Requires that one of the seven (7) directors of the Rhode Island airport corporation be appointed by the governor after the governor gives due consideration to a list of individuals submitted by the mayor of the city of Warwick.

RI H5584

Requires that one of the seven (7) directors of the Rhode Island airport corporation be appointed by the governor from a list of individuals submitted by the mayor of the city of Warwick.

IN SB0225

Health matters.