Relates to creation and dissolution of certain public corporations

1 Co-sponsor

• William Colton

BILL NUMBER:A9880

Title of bill

CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY proposing an amendment to section 5 of article 10 of the constitution, in relation to prohibiting the establishment of certain new public corporations and providing for the dissolution of certain public corporations

Purpose or general idea of bill

This amendment would eliminate public corporations, such as public authorities.

Summary of specific provisions

Amends Article X, section 5 of the New York State Constitution.

Specifically the amendment would:

* eliminate the power of the legislature to create new public corporations but allow localities to establish, and

* dissolve existing public corporations a year after the amendment's enactment.

Justification

Article X of the Constitution was the first attempt to regulate public authorities constitutionally. Public authorities are public corporations as defined in Article X, §5. The courts have stated that public authorities are independent autonomous public corporations created by special acts of the legislature. See Long Island R. Co. v. United Transportation Union 425 NYS 2d 518 (1980).

There are currently more than 700 public corporations. While public authorities have been able to create great public works, there has been a significant downside to the creation of public authorities throughout the State. In the failed convention of 1967, delegates realized that authorities lack any accountability and that authorities were able to circumvent restrictions placed upon them. The Citizen's Budget Commission's Report The Palisades Principles (issued in February of 2004) notes that there needs to be greater a financial accountability for public authorities. However, even with constitutional and statutory changes, public authorities find ways around law. Moreover, the power gained by Robert Moses embodies the fundamental problem with authorities--authorities have public missions but are able to isolate themselves from traditional democratic pressure.

Prior legislative history

A.11848-2004, A.600-2006

Fiscal implications

None.

Effective date

Resolved (if the Senate concur), That the foregoing amendment be referred to the first regular legislative session convening after the next succeeding general election of members of the assembly, and in conformity with section 1 of article 19 of the constitution, be published for 3 months previous to the time of such election.