Section 16.07. Approval of certain certificates of incorporation

(a)  No  certificate  of incorporation of a business or not-for-profit
  corporation shall hereafter be filed which includes among its  corporate
  purposes  or  powers  the  establishment  or operation of a facility for
  which an operating certificate is  required  by  this  article,  or  the
  solicitation  of  contributions  for  any  such purpose, except with the
  written approval of the commissioner and,  when  otherwise  required  by
  law,  the  approval  of  a  justice  of the supreme court endorsed on or
  annexed to the certificate of incorporation.
    (b) An  application  for  approval  of  the  proposed  certificate  of
  incorporation  shall  be  filed with the commissioner together with such
  other forms and information as shall be prescribed by, or acceptable to,
  the commissioner.
    The commissioner shall not  approve  a  certificate  of  incorporation
  unless he is satisfied, insofar as applicable, as to:
    (1) the public need for the facility or the service which the proposed
  corporation  is  empowered  to perform or maintain at the time and place
  and under the circumstances proposed;
    (2) the  character  and  competence  of  the  proposed  incorporators,
  directors, sponsors, or stockholders;
    (3)  the  financial  resources  of  the  proposed  corporation and its
  sources of future revenues;
    (4) the availability of facilities or  services  which  may  serve  as
  alternatives  or  substitutes  for  the  facility  or services which the
  proposed corporation is empowered to maintain or render;
    (5) such other matters as  he  shall  deem  pertinent  in  the  public
  interest.
    The   commissioner,   in   approving   the   proposed  certificate  of
  incorporation, may request and consider information and advice from  all
  available  sources  including local governmental units, the local health
  systems agency and  the  advisory  council  on  mental  retardation  and
  developmental  disabilities  as  to the matters set forth herein. If the
  commissioner proposes to disapprove the application he shall afford  the
  applicant an opportunity to request a public hearing.
    The  commissioner  shall not take any action contrary to the advice of
  the health systems agency for facilities other than community residences
  until he affords an opportunity  to  the  agency  to  request  a  public
  hearing  and,  if  so  requested,  a public hearing shall be held.   The
  commissioner, on his own motion,  may  hold  a  public  hearing  on  the
  application.  Any  public hearings held pursuant to this subdivision may
  be conducted by the commissioner or by an individual designated  by  the
  commissioner.
    (c) Where the approval required by subdivision (a) of this section has
  not been obtained, the commissioner may institute and maintain an action
  in  the supreme court through the attorney general to procure a judgment
  dissolving and vacating or annulling:
    (1) The certificate of incorporation of any such corporation;
    (2) The certificate of  incorporation  of  any  corporation  hereafter
  incorporated,  the  name, purposes, objective, or activities of which in
  any manner may reasonably  lead  to  the  belief  that  the  corporation
  possesses or may exercise any of such powers or purposes; or
    (3) Striking from such certificate any power or purpose over which the
  commissioner has approval authority pursuant to this section.