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Empire State Development Corporation

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New York state public-benefit corporations and authorities operate like quasi-private corporations, with boards of directors appointed by elected officials, overseeing both publicly operated and privately operated systems. Public-benefit nonprofit corporations share characteristics with government agencies, but they are exempt from many state and local regulations. Of particular importance, they can issue their own debt, allowing them to bypass limits on state debt contained in the New York State Constitution . This allows public authorities to make potentially risky capital and infrastructure investments without directly putting the credit of New York State or its municipalities on the line. As a result, public authorities have become widely used for financing public works, and they are now responsible for more than 90% of the state's debt.

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82-691: Empire State Development ( ESD ) is the umbrella organization for New York's two principal economic development public-benefit corporations , the New York State Urban Development Corporation (UDC) and the New York Job Development Authority (JDA). The New York State Department of Economic Development (DED) is a department of the New York government that has been operationally merged into ESD. ESD gives its mission as promoting

164-629: A balanced community of commercial, residential, retail, and park space within its designated 92-acre site on the southern tip of Manhattan. The Long Island Power Authority or LIPA ["lie-pah"], a municipal subdivision of the State of New York, was created under the Long Island Power Act of 1985 to acquire the Long Island Lighting Company (LILCO)'s assets and securities. A second Long Island Power Authority (LIPA),

246-672: A favorable lease on a building in Amsterdam, New York . This company closed down, but the Overcoat Development Corporation continues to exist to service the long-term lease it signed. The Roosevelt Island Operating Corporation 's responsibility is to develop Roosevelt Island , a small strip of land in the East River that is part of the borough of Manhattan . Some of the public benefit corporations outside of New York City's metropolitan area, or serving

328-575: A lesser extent, Latinos . In 2002, at age 46, Meile Rockefeller was arrested for protesting the Rockefeller drug laws. She was accompanied by her brother, Stuart Rockefeller, and was supported by other members of the family on the issue, including her grandfather's brother, Laurance Rockefeller . Due to the implementation of the Rockefeller drug laws, incarceration rates were said to have risen since their inception in 1973, 150,000 New Yorkers being imprisoned for non-violent drug offenses. Part of

410-614: A meeting in 1957 prove illustrative of findings of the committee. Arch Sayler, a probation officer in New York City, pointed to an overwhelming connection between drug users and the breaking of violations by those on parole or probation: On November 27 (1957), we had 921 persons under supervision for civilian offenses of all kinds. Of these, 107 of 11.6 percent had a history of drug use. . .We found that this small group of drug users accounts for approximately 60 percent of our probation and parole violations. In other words, 11.5 percent of

492-494: A misdemeanor. During a Terry stop , officers may falsely suggest that a suspect should voluntarily reveal contraband to avoid arrest, then arrest the suspect if he reveals cannabis to public view. In 2008, the New York Civil Liberties Union criticized the crackdown for its cost and scope, its reliance on stop-and-frisks and police coercion to escalate simple possession into an arrestable offense, and

574-514: A more complete list, see a list of New York State public-benefit corporations Below are some of the authorities operating in and around the New York City metropolitan area . Fully titled the Hugh L. Carey Battery Park City Authority , according to its official website, the authority is: a New York State public benefit corporation whose mission is to plan, create, co-ordinate and maintain

656-624: A period of mounting national anxiety about drug use and crime. Rockefeller, who pushed hard for the laws, was seen by some contemporary commentators as trying to build a " tough on crime " image in anticipation of a bid for the Republican presidential nomination in 1976 . The bill was signed into law by Governor Rockefeller on May 8, 1973. Under the Rockefeller drug laws, the penalty for selling two ounces (57  g ) or more of heroin , morphine , "raw or prepared opium ", cocaine , or cannabis or possessing four ounces (113 g) or more of

738-729: A staff of 76 people. Its staffing compensation exceeded its operating expenses in 2017 by almost $ 1.5 million in the 2018 New York State Authorities Budget Office report. The New York State Thruway Authority maintains the New York State Thruway , a system of limited-access highways within New York State. The New York State Environmental Facilities Corporation (EFC) provides low-cost capital, grants, and expert technical assistance for environmental projects in New York State. The EFC has issued more than $ 13 billion in both tax-exempt and taxable revenue bonds. In 2017,

820-527: A time of mounting anxiety regarding drug addiction and crime, and arguments from some politicians that a draconian approach was needed. In 1971, President Richard Nixon declared in a White House briefing speech: America's public enemy No. 1 in the United States is drug abuse. In order to fight and defeat this enemy, it is necessary to wage a new, all-out offensive. However, reporter Dan Baum claimed, in 2016, that Nixon's former domestic-policy adviser,

902-538: A wholly-owned subsidiary of the first, acquired LILCO's transmission and distribution system in June 1998. The Lower Manhattan Development Corporation (LMDC) was formed after the September 11 attacks to plan the reconstruction of Lower Manhattan. It was founded by Governor George Pataki and then-Mayor Rudolph Giuliani. The LMDC is a joint State-City corporation governed by a 16-member Board of Directors, half appointed by

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984-832: Is a subsidiary of the New York Power Authority (it was a subsidiary of the Thruway Authority before 2017). It is responsible for the oversight, administration and maintenance of the New York State Canal System , which consists of the Erie Canal , Cayuga-Seneca Canal, Oswego Canal and Champlain Canal . It is also involved with the development and maintenance of the New York State Canalway Trail and with

1066-656: Is also attractive because their independent corporate structure theoretically makes them more flexible and efficient than state agencies. Many restrictions placed on state agencies do not apply to public authorities, including, for example, general public bidding requirements (some public bidding requirements do apply under the Public Authorities Law). See Plumbing, Heating, Piping & Air Conditioning Contr. Ass'n v. N.Y.S. Thruway Auth. , 5 N.Y.2d 420 (1959). Most public authorities may also make contracts , and because of public authorities' corporate status, there

1148-551: Is also listed on the New York State Comptroller 's website as a public benefit corporation that carries out functions that were formerly performed by NYSTAR. NYSTAR is now listed on the ESD website. The New York State Foundation for Science, Technology, and Innovation and NYSTAR are not listed in the 2018 New York State Authorities Budget Office report and so both might be dissolved or chose not to report. The UDC

1230-468: Is empowered to issue bonds and notes, grant loans and tax exemptions, acquire private property, exercise eminent domain , create subsidiaries, and exempt projects from/override local laws, ordinances, codes, charters or regulations (e.g., zoning). As with all New York state public-benefit corporations , it can issue bonds without a voter referendum, bypassing the NY's state constitution limits. As of May 2015

1312-495: Is generally, no remedy against the state for the breach of such contracts. John Grace & Co. v. State University Constr. Fund , 44 N.Y.2d 84 (1978). Many public authorities, such as industrial development agencies and the Empire State Development Corporation, can also condemn property. The New York State Public Authorities Control Board was created in 1976 to provide oversight for some of

1394-565: Is truly “One State”. The former Upstate and Downstate offices now work together to ensure that New York's economic development strategy benefits the entire State, while being mindful of the specific resources and special challenges of each region. In January 2011, Governor Andrew M. Cuomo appointed Kenneth Adams as ESD President & CEO and DED Commissioner. Mr. Adams was confirmed by the Legislature on April 5, 2011. In May 2011, Governor Cuomo appointed Julie Shimer as Chair of ESD. She

1476-574: The Apollo Theater . Among its projects was a doubling of the New York state prison system, improvements to Love Canal , construction of the Jacob K. Javits Convention Center, revitalization of 42nd Street (Manhattan) , revitalization of Niagara Falls, New York , construction of Battery Park City , development of Roosevelt Island , as well as planning for construction of a new Pennsylvania Station and for development of Governors Island . While

1558-650: The Governor of New York and half by the Mayor of New York City . The development corporation is a subsidiary of the Empire State Development Corporation. The Metropolitan Transportation Authority manages public transportation in the New York metropolitan area (this includes the New York City Subway and MTA Regional Bus Operations systems, as well as the Long Island Rail Road and

1640-611: The Metro-North Railroad ). The MTA includes the following subsidiaries: The New York City Economic Development Corporation was founded in 1966 as the New York City Public Development Corporation. It is New York City's official economic development corporation . The Overcoat Development Corporation was founded in the 1980s in an attempt to convince a men's outerwear company to relocate to New York from Indiana by offering

1722-691: The United Nations with its real estate and development needs. There are public benefit corporations that oversee the operations of Erie County Medical Center in Buffalo (Erie County Medical Center Corporation), Nassau University Medical Center in East Meadow (Nassau Health Care Corporation), and Westchester Medical Center in Valhalla (Westchester County Health Care Corporation). Rockefeller drug laws The Rockefeller Drug Laws are

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1804-808: The 1930s and 40s. Much of Moses' power base resulted from his tight control of the Triborough Bridge Authority , which allowed him to earmark revenues from tolls on the bridge for other projects in New York City and around the state. He also served as president of the Jones Beach Parkway Authority (1933–1963), president of the Bethpage State Park Authority (1933–1963), and chairman of the New York Power Authority (1954–1962). Moses, through his control of these authorities,

1886-702: The 1980s, the drug laws were a major reason for increased incarceration in New York City, as the NYCPD started policing street-level drug markets much more intensively. While the Rockefeller Drug Laws went into effect in 1973, it had its roots in 1957. In that year, the Joint Legislative Committee on Narcotic Study commenced and would remain intact through the passage of the famous (or infamous, depending on one's point of view) Rockefeller Drug Laws in 1973. Testimony from minutes from

1968-423: The 1994 case Schulz v. State , 84 N.Y.2d 231. As the court explained, state debt limits were first enacted as a reaction to fiscal crises caused by the state's lending of its credit to "irresponsible" canal and railroad corporations in the early nineteenth century. The state was forced to assume these obligations, which amounted to more than three-fifths of the state's entire debt. In 1846, a referendum requirement

2050-570: The Authority Budget Office in order "to provide the governor and the legislator with conclusions and opinions concerning the performance of public authorities and to study, review and report on the operations, practices and finances of public authorities...." The ABO is intended to promote transparency and accountability and to improve authority governance. The New York State Constitution , Art. X, sec. 5, provides that public benefit corporations may only be created by special act of

2132-648: The Capital District of New York State ( Albany , Schenectady , and Rensselaer counties plus part of Saratoga). The function of CDTA is to operate public transportation as well as to operate the Amtrak stations in the service area (Albany-Rennselaer, Schenectady, and Saratoga Springs). It includes the following subsidies: The Central New York Regional Transportation Authority manages most public transportation in four Central New York counties - Onondaga, Oneida, Oswego and Cayuga. This includes bus service serving

2214-584: The Corporation loses track of its subsidiaries. At the time the corporation reported 70 active subsidiaries, but the audit showed there were 202 subsidiaries still legally on the books (98 of which were definitely inactive). The audit did not consider this a serious oversight but the corporation stated that it intended to dissolve the inactive corporations. In 2007, under Governor Eliot Spitzer , an Upstate ESD headquarters opened in Buffalo in recognition of

2296-536: The Court of Appeals held in Williamsburgh Savings Bank v. State , 243 N.Y. 231, that the state could disclaim any moral obligation for public authority debts. However, amendments to the 1938 Constitution overruled this case and completely disclaimed the state's responsibility for any public authority debt. The widespread use of public authorities in New York State was pioneered by Robert Moses in

2378-834: The DED is the chairman of the boards of UDC, JDA and STF, but those boards continue to operate as separate bodies. The UDC is allowed to operate through subsidiaries. Each subsidiary has its own board of directors. As of October 2015, there were nine subsidiaries of ESD:. ESD also has more than 120 inactive subsidiaries such as the Archive Preservation Corporation and the Governors Island Redevelopment Corporation. These subsidiaries are legal entities but are no longer used and have not been legally dissolved. The New York State Foundation for Science, Technology and Innovation

2460-587: The EFC had operating expenses of $ 442.35 million, an outstanding debt of $ 5.917 billion, and 115 employees. The EFC's 2009-2010 budget was in excess of $ 500 million. The statutory basis for substantially all EFC activity stems from Title 12 of Article 5 of the NYS Public Authorities Law (also called the "EFC Act") in 1970. The Capital District Transportation Authority (CDTA) is a public benefit organization which provides transportation services to

2542-1000: The Office of the State Comptroller had identified at least 640 state and local authorities. The current count stands at 1,098. Some of the most well known major public benefit corporations in New York State include the Port Authority of New York and New Jersey (actually a bi-state authority created by interstate compact ), the Metropolitan Transportation Authority , and the Empire State Development Corporation . New York has hundreds of lesser-known public benefit corporations, including industrial development agencies and local development corporations. The Public Authorities Accountability Act of 2005 created

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2624-513: The Public Authorities Accountability Act of 2005. The New York State Authorities Budget Office , in their 2018 annual report, noted that there were 47 state authorities and 531 local authorities, including 109 IDAs and 292 not-for-profit corporations created locally, that they provided oversight for in New York State. According to this same ABO report, the operating expenses in 2017 for the 47 state authorities

2706-409: The Rockefeller Drug Laws were the most transparent where "high arrest rates and prison commitments for drug offenses continued to fill prison cells." Another criticism of the Rockefeller drug laws has also been its distinct targeting of young minority males for as of the year 2000, black and Hispanic males made up over 90% of the population incarcerated by the Rockefeller Drug Laws. Michigan's statute

2788-620: The Science and Technology Foundation (STF). UDC's directors decided that the corporation would do business as the Empire State Development Corporation (ESDC). Some functions of JDA and STF were folded into ESDC and DED, respectively, and the collective entity was branded as Empire State Development (ESD). In November 1999 the STF was abolished, and in 2011 the New York State Foundation for Science, Technology and Innovation (NYSTAR)

2870-503: The State". Because of this, the Court of Appeals has repeatedly affirmed that public authorities are distinct from the state and that the state carries no moral obligation to repay their debts. Although the Constitution prohibits the state from lending its credit to public authorities, it does allow the state to make gifts of money to authorities. As a practical result, this has resulted in some authorities receiving annual funding from

2952-684: The UDC reported outstanding debts of $ 11 billion. As of October 2015, major projects included the: A procurement opportunities newsletter, The New York State Contract Reporter , contains notices of procurement contract opportunities and is published by the Department of Economic Development. New York state public-benefit corporations The growing influence of public authorities over state and local financing, coupled with their ability to avoid regulations applicable to government agencies, has led to calls for reform. Some reforms were passed in

3034-426: The UDC ultimately was to have big successes with such projects as Roosevelt Island and Battery Park City it was to encounter major problems in its inner city developments and its efforts to build minority low-income housing in white middle-class neighborhoods. The Corporation still maintains a housing portfolio that currently includes mortgages for 20,200 housing units valued at $ 650 million in total. Mario Cuomo

3116-454: The UDC was "emerging as the most powerful state agency in the country for coping with urban growth." By 1974 the investment climate had cooled and in 1975 Governor Hugh Carey asked the Legislature to appropriate $ 178 million for the UDC, and by 1977 the UDC was able to reenter the financial markets. In 1975, the corporation was reorganized and its mission expanded from developing housing to economic development. The finances were reorganized and

3198-484: The UDC's construction of the Harlem State Office Building in 1969 aroused intense opposition from the neighborhood which wanted the resources applied in other ways. Ada Louise Huxtable called the fight "Rockefeller's Vietnam". The term "urban development" took on a negative connotation and in 1995 UDC was renamed the Empire State Development Corporation. During the coronavirus pandemic , ESD

3280-634: The authority. Ciulla v. State , 77 N.Y.S.2d 545 (N.Y. Ct. Cl. 1948). However, public authority employees are covered by the ethics regulations included in section 74 of the Public Officers Law, and the Public Authorities Accountability Act of 2005 imposed additional ethics requirements on board members of some public authorities. Importantly, authority board members are now required to attend training sessions on ethics and governance issues. The New York State Comptroller's Office lists four types of public benefit corporations and authorities: For

3362-740: The cities of Syracuse , Utica , Rome , Oswego and Auburn . The CNYRTA includes the following subsidiaries: The New York State Bridge Authority owns and operates five bridges on the Hudson River . The Olympic Regional Development Authority was designed to administer and manage the Whiteface Mountain Ski Center and the other Winter Olympic venues used during the Lake Placid 1980 Winter Olympics . The New York Power Authority provides electricity throughout New York State. The New York State Canal Corporation

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3444-414: The corporation as acting beyond its purview in determining what constitutes essential activities, particularly as it relates to religious practice. Since 1995, four entities have been operationally merged and referred to as Empire State Development (ESD): Although ESD officials have programmatically consolidated the DED, UDC, JDA and STF, they have not legally consolidated the agencies. The commissioner of

3526-463: The corporation assumed a less aggressive development stance, and its mission was refocused to finance other ambitious state projects and has been used frequently by governors to implement projects that circumvent formal Legislative or voter scrutiny. The move away from a housing mission began in the late 1970s and early 1980s with such projects as the Jacob K. Javits Convention Center and improvements to

3608-722: The corporation to distribute $ 20 billion in federal aid following the September 11, 2001 attacks to help rebuild lower Manhattan and build the 9/11 memorial. A subsidiary, Lower Manhattan Development Corporation , and the World Trade Center Memorial Foundation were set up for those purposes. Rebuilding was financed by Liberty bonds . Whether the lack of public scrutiny has helped or hurt the development process can be debated. An audit released in May 2006 by New York comptroller Alan Hevesi reported that

3690-441: The different economic challenges posed in the upper and lower (NYC region) parts of the State. Two chairs were appointed, one for ESD Downstate and the other for ESD Upstate. The ESD board also authorized the creation of another subsidiary, Upstate Empire State Development Corporation, to concentrate on Upstate issues. In 2008, Governor David A. Paterson brought the two components of ESD back together again, emphasizing that New York

3772-441: The disproportionate number of young, black and Latino males arrested. One main criticism of these drug laws were that they put young minority males and females behind bars for carrying small amounts of drugs on them. These laws were a part of the "war on drugs" era and were meant to go after drug king pins, however it started to target lower level people as a means of keeping the streets clean. Elaine Bartlett and her story told in

3854-408: The entire state, are listed below. The Agriculture and New York State Horse Breeding Development Fund serves equine interests in New York State and provides education concerning certain agricultural development. A 2004 audit of the fund found problems with its management. The Dormitory Authority of the State of New York (DASNY) provides construction, financing, and allied services that serve

3936-577: The establishment of each new authority, and to prevent the enactment of general laws pursuant to which a municipal corporation can itself create a corporation of the authority type ' ". While major public authorities can only be created by special legislation, many local development corporations have been created under the general Not-For-Profit Corporation Law. These LDCs function in much the same way as other public benefit corporations and public authorities, but do not need to be established by specific state legislation. Additionally, many public authorities have

4018-544: The evening news. Did we know we were lying about the drugs? Of course we did. (Ehrlichman's children have disputed the account. ) Both the New York and Michigan statutes came under harsh criticism from both the political left and the political right. William F. Buckley , one of the most conservative public figures in America, was staunchly against it, as well as many in law enforcement, who saw inherent unfairness in placing

4100-486: The general development and promotion of the Erie Canal Corridor as both a tourist attraction and a working waterway. The Rochester-Genesee Regional Transportation Authority consists of numerous subsidiaries, including: The Roswell Park Cancer Institute Corporation operates Roswell Park Comprehensive Cancer Center in Buffalo, New York. The United Nations Development Corporation was designed to assist

4182-399: The ghetto is traffic in narcotics, specifically heroin" and that "New York City has an estimated 65,000 to 75,000 heroin addicts." Most significant in connections to the punitiveness of the future Rockefeller Drug Laws, the committee expressed acute concern with the uptick in teenagers becoming addicted to heroin, and staggering death rates resulting from its use. The laws were enacted at

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4264-411: The illegal use of narcotics and to provide for the care and treatment of addicts." The committees annual reports increasingly focused on problems associated with narcotics. Particularly, the committee showed inextricable connections between narcotics and organized crime and presented it as a problem devastating New York City. A report in 1968 noted that "the most vicious activity of organized crime in

4346-503: The last known as "Judicial Diversion". Prior to 2009, drug treatment was available at the discretion of prosecutors. The sentencing was made retroactive, which allowed over 1000 incarcerated defendants to apply for resentencing and possible release. New York City has been called the cannabis-arrest capital of the world, with over 40,000 arrests in 2008. Despite New York's decriminalization of simple possession, New York City police arrest suspects for possession in public view, which remains

4428-409: 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.... Abbott Low Moffat, who supported this proposal, told the convention that its purpose was 'to require the Legislature to pass directly itself upon

4510-645: The long deceased John Ehrlichman , had told Baum during a 1994 interview: The Nixon campaign in 1968, and the Nixon White House after that, had two enemies: the antiwar left and black people. You understand what I'm saying? We knew we couldn't make it illegal to be either against the war or black, but by getting the public to associate the hippies with marijuana and blacks with heroin, and then criminalizing both heavily, we could disrupt those communities. We could arrest their leaders, raid their homes, break up their meetings, and vilify them night after night on

4592-487: The most serious (A-I felony) drug charge in New York from 15 years to life, to 8 to 20 years in prison. In addition, the weight thresholds for the two most serious possession offenses (A-I and A-II) were doubled (thus making them apply to fewer defendants), and those serving life sentences were permitted to apply for re-sentencing. In his first State of the State address in January 2009, New York governor David Paterson

4674-510: The non-violent crime of drug trafficking on a par with murder . Economist Murray Rothbard called the laws "draconian: long jail sentences for heroin pushers and addicts. The Rockefeller program, which proved finally to be a fiasco, was the epitome of the belief in treating a social or medical problem with jail and the billy club." The laws also drew intense opposition from civil rights advocates, who claimed that they were racist , as they were applied inordinately to African-Americans and, to

4756-452: The people under supervision create 60 percent of the violations, and 85.5 percent, or the balance, make only 40 percent of the violations. Furthermore, another, state-level committee was formed in 1967 with the intent on studying crime and corruption in general, with a particular nod to study "all phases of narcotics within the State, with the object in view of formulating and recommending remedial legislation as it may deem necessary to control

4838-399: The power to create subsidiary authorities without additional legislative authorization. An example is the Empire State Development Corporation, which decided in 2007 to dissolve 13 subsidiaries and merge 25 others into a single holding company. ESDC still encompasses many subsidiary organizations. The 1938 Constitution "expressly empowered public authorities to contract debt independently of

4920-511: The proliferation of public authorities by specifying that they could be created only by special act of the state legislature. By 1956, 53 public authorities had been created. In 1990, the Commission on Government Integrity concluded that "At present, so far as Commission staff has been able to determine, no one has even an approximate count of how many of these organizations exist, where they are, much less an accounting of what they do." By 2004,

5002-488: The public good, to benefit specifically universities, health care facilities, and court facilities. The Empire State Development , also known as the Urban Development Corporation, maintains various programs and subsidiaries to encourage economic development in New York State. The Natural Heritage Trust supports natural resource conservation and historic preservation within New York State through

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5084-430: The reason for the rising incarceration rates was due to how the Rockefeller drug laws may have imposed harsher penalties for non-violent drug offenses, but crimes related to drug use did not decrease. Throughout the 1980s this was only made worse with the imposing drug laws on dawning the newly highly popularized drug of crack-cocaine, which is said to have "caused the New York State prison population to triple." As of 1973,

5166-588: The reception and administration of donations and grants. It partners with several state agencies, including the New York State Office of Parks, Recreation and Historic Preservation , New York State Department of Environmental Conservation , and the New York State Department of State ; partners also include other public and private entities. The trust was established in 1968. In 2017, it had operating expenses of $ 1.54 million and

5248-419: The same substances, was a minimum of 15 years to life in prison , and a maximum of 25 years to life in prison. The original legislation also mandated the same penalty for committing a violent crime while under the influence of the same drugs , but this provision was subsequently omitted from the bill and was not part of the legislation Rockefeller ultimately signed. The section of the laws applying to marijuana

5330-478: The state economy, encouraging business investment and job creation, and supporting local economies through loans, grants, tax credits, real estate development, marketing and other forms of assistance. The Division of Commerce was created in 1941 and incorporated several state bureaus and the Bureau of Industry. It was replaced in 1944 by the Department of Commerce. The New York State Urban Development Corporation (UDC)

5412-459: The state had a moral obligation to repay the debts if canal revenues proved insufficient, and thus the certificates were deemed "an evasion if not a direct violation of the constitution". In 1921, the legislature chartered the first state public authority, the Port of New York Authority , as a new vehicle for financing public projects while insulating the state from long term debt obligations. In 1926,

5494-537: The state on a consistent basis. The Court of Appeals stated in Schulz v. State , 84 N.Y.2d 231 (1994) that, if "modern ingenuity, even gimmickry, have in fact stretched the words of the Constitution beyond the point of prudence, that plea for reform in State borrowing practices and policy is appropriately directed to the public arena". See also Wein v. State , 39 N.Y.2d 136 (1976); Wein v. Levitt , 42 N.Y.2d 300 (1977). Financing public projects through public authorities

5576-539: The state's debt and 80% of the state's infrastructure, leading some to refer to them as the "shadow government". Public benefit corporations and public authorities are controlled by boards of directors made up of political appointees. Board members have fixed terms and are, at least in theory, considered to be more independent of political influence than elected politicians and appointed agency heads. Board members and employees of public authorities usually are not considered to be state employees, but are rather employees of

5658-525: The state's most powerful authorities. Sections 50 and 51 of the Public Authorities Law currently require 11 authorities to receive approval from the PACB prior to entering into contracts for project-related financing. There are five members on the PACB board, all of whom are appointed by the governor and serve year-long terms. Public authorities are currently responsible for more than 90% of

5740-403: The state's prison population was approximately at ten thousand, but with the help of the Rockefeller drug laws, by the year 2002 out of the approximately seventy thousand state inmates, "19,164 were incarcerated for drug offenses" which upon drug offenses alone had nearly doubled the state population of 1973. Even despite the steady drop in crime rates that took place in the 1990s, the effects of

5822-485: The statutes dealing with the sale and possession of " narcotic " drugs in the New York State Penal Law . The laws are named after Nelson Rockefeller , who was the state's governor at the time the laws were adopted. Rockefeller had previously backed drug rehabilitation, job training and housing as strategies, having seen drugs as a social problem rather than a criminal one, but did an about-face during

5904-400: Was $ 34.82 billion. Additionally, the 47 state authorities carried a total of $ 160.4 billion in outstanding debt. Public benefit corporations in New York State have origins in mercantile capitalism . A shared tradition of English common law and Dutch law may explain their origins. The New York Court of Appeals provided a thorough history of state laws regarding public authorities in

5986-781: Was able to build some of New York's most important public works projects, including the Cross Bronx Expressway , the Brooklyn-Queens Expressway , and various bridges and parkways. The public authority model allowed Moses to bypass many of the legal restrictions placed on state agencies, allowing him to expedite development but also allowing him to hide project financing, contracting and operational information from public scrutiny. Because of this, he has been criticized for wasteful spending, patronage, and refusing to consider public opposition to his projects. The 1938 constitutional amendments attempted to limit

6068-522: Was accorded a leading role in delineating what businesses would be considered essential in New York State. In a late 2020 per curiam decision of the Supreme Court, Roman Catholic Diocese of Brooklyn v. Cuomo , ESD categorizations of essential services were noted for excluding religious services while, at the same time, not being limited to services which can be considered as essential. Avi Schick, former President of ESDC (2007–2009), criticized

6150-543: Was added to the state constitution, prohibiting the state from contracting long term debt without approval by the voters. As early as 1851, the legislature began to search for ways to evade the constitutional debt limit in order to finance public works projects. Canal certificates, which would be repaid through canal revenues, and which by their terms were not state obligations, were nevertheless held to be unconstitutional in Newell v. People , 7 N.Y. 9 (1852). The court held that

6232-498: Was confirmed by the New York State Senate in June 2011. State control over projects in New York City has often involved turf conflicts between the New York City mayor and the governor (including the fact that the state authority is exempted from city zoning rules). Many of the projects have had significant impacts on neighborhoods and resulted in white flight and charges of reverse discrimination . As an example,

6314-696: Was created in 1968 by the New York State Urban Development Corporation Act. On August 31, 1987, the Omnibus Economic Development Act created the state Department of Economic Development (DED). In 1975, the UDC was reorganized and its mission expanded from developing housing to economic development. In 1995, the functions of the DED and the UDC were consolidated, along with the Job Development Authority (JDA) and

6396-623: Was critical of the Rockefeller drug laws, stating, "I can't think of a criminal justice strategy that has been more unsuccessful than the Rockefeller drug laws." In April 2009, the New York Penal Law and the New York Criminal Procedure Law were revised to remove the mandatory minimum sentences . Under the new law, judges now had the authority to sentence defendants convicted of drug offences on guilty plea to shorter sentences, probation or drug treatment -

6478-570: Was merged with DED. In its early years the UDC was responsible for "the last significant program of publicly assisted housing in the United States". At the time it was primarily aimed at urban renewal in c City although its bonds were to be used statewide. Virtually all state subsidized housing built since 1968 was financed through the corporation. In the first years of the UDC, its aim was to facilitate large-scale low-income housing developments in urban neighborhoods that had traditionally been white and middle-class. In 1970, Business Week claimed that

6560-499: Was reformed somewhat in 1998, with the mandatory life sentence being reduced to a 20-year minimum. On December 14, 2004, New York governor George Pataki signed into law the Drug Law Reform Act (DLRA) (2004 N.Y. Laws Ch. 738 (effective January 13, 2005)), which replaced the indeterminate sentencing scheme of the Rockefeller Drug Laws with a determinate system. The DLRA also reduced the minimum penalty for conviction on

6642-591: Was repealed in 1977, under the Democratic governor Hugh Carey . The adoption of the Rockefeller drug laws gave New York State the distinction of having the most severe laws of this kind in the entire United States—an approach soon imitated by the state of Michigan , which, in 1978, enacted a "650-Lifer Law", which called for life imprisonment , without the possibility of parole for the sale, manufacture, or possession of at least 650 grams (1.43  lb ) of cocaine or any Schedule I or Schedule II opiate. By

6724-471: Was the first to begin ambitious use of it to get around official scrutiny for public projects. In 1981 voters voted against a $ 500 million bond issue for expansion of the state prison system to handle increased prison populations arising from the Rockefeller drug laws . At the time New York had 32 adult prisons. Cuomo was to use the bonds to build another 38 prisons — most upstate. George Pataki used

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