N.Y. Public Authorities Law § 1196-c: Organization of authorities

§ 1196-c. Organization of authorities. 1. When an authority has been

established by special act of the legislature for the benefit of a

single sponsoring municipality, upon such establishment the governing

body of such municipality shall file within one year after the effective

date of such special act, in the office of the secretary of state, a

certificate setting forth (a) the date of passage of such special act;

(b) the name of the authority; (c) the names of the members and their

terms of office, specifying which member is the chairman; and (d) the

bounds of the district established by local law in which the authority

will deliver water to or transport sewage from the ultimate consumers or

dischargers thereof, provided, however, that unless otherwise provided

in such special act no such district may encompass any area contained

within another district established under this title or within any other

water authority district created by this chapter. Should such district

include all or any portion of a municipality or municipalities other

than the sponsoring municipality, such certificate shall be accompanied

by a copy of the intermunicipal contract or contracts under which the

authority will provide services within such other municipality or

municipalities, together with copies of the local law approving same.

Any changes in the bounds of such districts or to such contracts shall

be similarly filed within thirty days thereof.

2. Where an authority has been established by special act of the

legislature for the benefit of more than one sponsoring municipality,

upon such establishment the governing body of each such municipality

shall file within one year after the effective date of such special act,

in the office of the secretary of state, a certificate setting forth (a)

the date of passage of such special act; (b) the name of the authority;

(c) the name or names of the member or members appointed by such

governing body and their terms of office; and (d) the bounds of that

portion of the district established by local law within the applicable

municipality in which the authority will deliver water to or transport

sewage from the ultimate consumers or dischargers thereof, provided,

however, that unless otherwise provided by such special act no such

portion may encompass any area contained within another district

established under this title or within any other water district created

by this chapter. Each such certificate shall be accompanied by a copy of

the local law establishing such portion of the district and by a copy of

the intermunicipal agreement under which membership on the authority is

apportioned among the sponsoring municipalities and a copy of the local

law approving same.

3. An authority shall be deemed to be and shall be in existence upon

the satisfactory filing and receipt of the certificate or certificates

required by subdivision one or two hereof. An authority and its

corporate existence shall continue until terminated by law; provided,

however, that no such law shall take effect so long as the agency shall

have bonds or other obligations outstanding unless adequate provision

has been made for the payment or satisfaction thereof. Upon termination

of the existence of the authority, all of the rights and properties of

the authority then remaining shall pass to and vest in the sponsoring

municipality or municipalities, as the case may be.

4. An authority shall be a corporate governmental agency constituting

a public benefit corporation. Except as otherwise provided by special

act of the legislature where there is more than one sponsoring

municipality, an authority shall consist of not less than three nor more

than five members. Such members shall be appointed and the chairman

designated by the governing body of the sponsoring municipality,

provided that where there is more than one sponsoring municipality, the

apportionment of members between or among the sponsoring municipalities

and the manner of selection of a chairman shall be determined by

intermunicipal agreement. Members shall serve at the pleasure of the

appointing municipality, and each member shall continue to hold office

until his successor is appointed and has qualified. The governing body

shall file with the secretary of state a certificate of appointment or

reappointment of any member appointed or reappointed by it. Members

shall receive no compensation for their services but shall be entitled

to reimbursement of the necessary expenses, including traveling

expenses, incurred in the discharge of their duties.

5. No action shall be taken by an authority except pursuant to the

favorable vote of a majority of the members then in office.

6. Any one or more of the members of an authority may be an official

or an employee of a sponsoring municipality. In the event that an

official or an employee of such municipality shall be appointed as a

member of the agency, acceptance or retention of such appointment shall

not be deemed a forfeiture of his municipal office or employment, or

incompatible therewith or affect his tenure or compensation in any way.

The term of office of a member of an authority who is an official or an

employee of such municipality when appointed as a member thereof by

special act of the legislature creating the authority shall terminate at

the expiration of the term of his municipal office.

7. In addition to any powers granted to it by law, the governing body

of the sponsoring municipality or municipalities, from time to time, may

appropriate by resolution sums of money to defray project costs or any

other costs and expenses of the authority. Subject to the rights of

bondholders, the governing body may determine if the moneys so

appropriated shall be subject to repayment by the authority to the

municipality or municipalities, and in such event, the manner and time

or times for such repayment.

8. It is hereby determined and declared that an authority and the

carrying out of its powers, purposes and duties are in all respects for

the benefit of the people of the sponsoring municipality or

municipalities and the state, for the improvement of their health,

welfare and prosperity and that the said purposes are public purposes

and that an authority is and will be performing an essential

governmental function in the exercise of the powers conferred upon it by

this title.