N.Y. Const. art. X, § 5: Public corporations; restrictions on creation and powers; accounts; obligations 6. Liability of state for payment of bonds of public corporation to construct state thruways; use of state canal lands and properties

§ 5. No public corporation (other than a county, city, town, village,

school district or fire district or an improvement district established

in a town or towns) possessing both the power to contract indebtedness

and the power to collect rentals, charges, rates or fees for the

services or facilities furnished or supplied by it shall hereafter be

created except by special act of the legislature.

No such public corporation (other than a county or city) shall

hereafter be given both the power to contract indebtedness and the

power, within any city, to collect rentals, charges, rates or fees from

the owners of real estate, or the occupants of real estate (other than

the occupants of premises owned or controlled by such corporation or by

the state or any civil division thereof), for services or facilities

furnished or supplied in connection with such real estate, if such

services or facilities are of a character or nature then or formerly

furnished or supplied by the city, unless the electors of the city shall

approve the granting to such corporation of such powers by a majority

vote at a general or special election in such city; but this paragraph

shall not apply to a corporation created pursuant to an interstate

compact.

The accounts of every such public corporation heretofore or hereafter

created shall be subject to the supervision of the state comptroller,

or, if the member or members of such public corporation are appointed by

the mayor of a city, to the supervision of the comptroller of such city;

provided, however, that this provision shall not apply to such a public

corporation created pursuant to agreement or compact with another state

or with a foreign power, except with the consent of the parties to such

agreement or compact.

Neither the state nor any political subdivision thereof shall at any

time be liable for the payment of any obligations issued by such a

public corporation heretofore or hereafter created, nor may the

legislature accept, authorize acceptance of or impose such liability

upon the state or any political subdivision thereof; but the state or a

political subdivision thereof may, if authorized by the legislature,

acquire the properties of any such corporation and pay the indebtedness

thereof.