2006 New York Code - Public corporations; restrictions on creation and powers; accounts; obligations

 
    §  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.