Bill > S02377

This bill modifies the existing law regarding how state authorities can create subsidiary corporations. Previously, state authorities needed specific legislative approval to form a subsidiary, with restrictions on the purpose and rationale for creating such subsidiaries. Under the new bill, state authorities can form a subsidiary without prior legislative approval, but must provide a written notification to the governor, speaker of the assembly, and senate president at least 60 days before organizing the subsidiary. During this 60-day period, the governor or either legislative house can deny the subsidiary's formation through a signed certification or resolution. The notification timing is specifically addressed for January through March notifications, with provisions for handling notifications near the end of a legislative session. The bill maintains a requirement that subsidiary corporations must make reports and disclosures similar to their parent state authorities, ensuring transparency. The changes aim to provide more flexibility for state authorities while maintaining legislative oversight of new subsidiary formations.