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The New York State Constitution, Art.X, sec. 5, provides that public benefit corporations may only be created by special act of the legislature. In City of Rye v. MTA, 24 N.Y.2d 627 (1969), the court of appeals explained that "The debates of the 1938 Convention indicate that the proliferation of public authorities after 1927 was the reason for the enactment of section 5 of article X....
New York state public-benefit corporations are commonly used by the state government to perform a specific purpose, such as investment in infrastructure or regulation of horse racing. These corporations are frequently referred to as authorities .
New York's public services are heavily organized into public-benefit nonprofit corporations, known frequently as authorities or development corporations. New York State-chartered public benefit corporations exist all over the state, but the most famous examples are probably in New York City (the Metropolitan Transportation Authority and the ...
The New York State Urban Development Corporation (UDC) was created in 1968 by the New York State Urban Development Corporation Act. [1] [7] On August 31, 1987, the Omnibus Economic Development Act created the state Department of Economic Development (DED). [7]
A public-benefit nonprofit corporation [1] is a type of nonprofit corporation chartered by a U.S. state government, and organized primarily or exclusively for social, educational, recreational or charitable purposes by like-minded citizens.
The law focuses on for-profit corporations and limited liability companies (LLCs), but non-profit corporations like condominium, cooperative, and homeowners associations are not exempt from its ...
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