Public benefit corporation
Encyclopedia
A public-benefit corporation is a public corporation chartered by a state
designed to perform some public benefit.
A public authority is a type of public-benefit corporation that takes on a more bureaucratic role, such as the maintenance of public infrastructure, that often has broad powers to regulate or maintain public property.
Authorities borrow from both municipal corporation
law (that is, the laws responsible for the creation of cities
, town
s, and other forms of local government
) and private corporations law. Other public-benefit corporations resemble private non-profit organization
s, and take on roles that private corporations might otherwise perform. These corporations often operate in heavily regulated
industries, such as broadcasting
and transportation.
Corporations such as these are often found in common law
jurisdiction
s such as the Commonwealth countries and the United States
.
, corporations in theory began as means to serve public purposes. Corporate theory has its roots in primarily government and religious institutions, where the institution itself is identifiable independently of its membership's mortality
. For example, if the Pope
dies, the Catholic Church continues to exist, just as it continues to exist as generations pass on and get replaced by new members.
Public-benefit corporations likely have their direct roots in mercantile capitalism
. In the early days
of Europe
an exploration and colonization, a government or monarch
would sometimes grant a charter
to an entity allowing it to incorporate and make potentially risky investments. While certainly not public-benefit corporations by today's standards, entities such as the Massachusetts Bay Company, Hudson's Bay Company
, and the Dutch East India Company
arguably are early prototypes of publicly-chartered (in this case, crown-chartered) corporations successfully making risky investments.
, established 1908. According to the Port of London Acts The Authority is a public trust established to "administer, preserve and improve the Port of London." The goal was to create an entity that would be run self-sufficiently like a private company yet remain under the control of the government. The name Authority is derived from the founding act of Parliament
which repeatedly stated that "Authority is hereby given...."
The special status of this entity and the fact that it remained subject to administrative law
was established by the UK courts in R v Port of London Authority: ex parte Kynoch [1919] 1 KB 176.
Public-benefit corporations are most often created by statute
. In many Commonwealth
countries
, public-benefit corporations continue to receive charters from the British
monarchy. In the United States, they receive their charters usually from states, but possibly from the federal government.
Public authorities are usually created with a specific mandate, such as the construction of bridges, mass transit, etc. Unlike departments
or ministries of the state, these corporations usually are enabled by statute
to raise revenues through bond issues.
For more information, read below about individual jurisdictions.
law is in the Health and Social Care (Community Health and Standards) Act 2003, which established NHS Foundation Trust
s as public-benefit corporations. Schedule 1 of the Act sets out the requirements for a public-benefit corporation which include a membership made up of individuals living in a specific area, employees of the corporation and service users, and a board of governors some of whom are elected by the members based on "constituencies" such as staff, users or public.
Public-benefit corporations are distinguishable from public authorities in that the latter do not have a membership.
Examples of other bodies which have a similar role to, whilst not being formally called, public-benefit corporations include the BBC
, which is incorporated by royal charter
. Many universities have charters going back centuries, and so are also chartered corporations.
is an independent crown corporation offering intercity passenger rail services in Canada. The Canadian Broadcasting Corporation
is another example.
The Province of Ontario
shares two international public-benefit corporations with the U.S. state of New York:
founded by the state to fulfill socially significant tasks. The activities of each corporation are described in a special federal law. Assets transferred to a state corporation are not state property from the legal point of view. Under the law “On Noncommercial Organizations”, property transferred to as the investment in a partnership is the property of the partnership. The partnership itself is no one's property. It manages its assets as described in its charter. The rights of the founder are considerable in the partnership, but they are still not ownership rights. There is only one founder in a state corporation, and it is the Russian Federation. That is why the state corporation is independent. It is a set of assets that are managed for purposes established in its charter by managers appointed by the founder. State corporations, as a rule, are subordinate not to the government, but to the Russian president, and act to accomplish some important goal. The state corporations can manage those assets as demanded by the sketchily described goals and tasks of the charters and as allowed by the supervisory council, on which there is no one the president does not trust.
, as well as various charitable, fraternal, and veterans' organizations. In addition, certain parastatals, which are for-profit, but may exercise unique powers, such as Fannie Mae and Freddie Mac, have federal charters.)
Private corporations were not so common in the early United States as they are today; corporations were often founded to create a public purpose, such as the maintenance of a toll bridge. Today, public-benefit corporations are popular in some states in the United States, perhaps especially New York State. Many interstate compact
s in the United States are public-benefit corporations.
Examples of federal public-benefit corporations created, owned and operated by the U.S. government include Amtrak
, the United States Postal Service
and the Corporation for Public Broadcasting
.
Many public authorities in the United States are interstate compact
s or local and regional entities covering multiple municipalities on the county or state level.
is a bi-state agency managing public transportation between southern Illinois
and Missouri
. It serves the St. Louis
metropolitan area.
The Regional Transportation Authority (RTA) oversees funding and operation of public transit in the Illinois portion of the Chicago metropolitan area.
, public-benefit corporations:
(NJTA) is a public-benefit corporation in New Jersey
, created by the New Jersey Turnpike Authority Act of 1948.
The Delaware River and Bay Authority
controls the Delaware Memorial Bridge
between Delaware and New Jersey, and is a bi-state agency. The Delaware River Port Authority
is a bi-state agency of New Jersey and Pennsylvania
.The Port Authority of New York and New Jersey
is a bi-state agency shared with New York.
NJ Transit, formed in 1979 operates bus, light rail and passenger rail service in New Jersey and in neighboring states as well as funding and planning of bus and rail services and programs.
Although "Public Benefit Corporation" is not a statutorily defined term under State laws (New Jersey Statutes or the New Jersey Administrative Code), such corporations are among those included within the statutorily defined term "State Agency".
state by Robert Moses
. The approval of the New York State Public Authorities Control Board
is required in some cases when creating an authority. An authority may at times levy taxes and tolls; this means that they are not part of the usual state budgetary process, and gives them a certain independence. Their most admired ability by the New York State and local government, is to circumvent strict public debt limits in the New York State Constitution. Furthermore, they may make contracts; because of public authorities' corporate status, there is, generally, no remedy against the chartering State for the breach of such contracts. John Grace & Co. v. State University Constr. Fund, 44 N.Y.2d 84, 375 N.E.2d 377; 404 N.Y.S.2d 316 (1978). On the other hand, as agents of the state, public authorities are not subject to many laws governing private corporations, and are not subject to municipal regulation. Employees of public authorities usually are not state employees, but are employees of the authority. Ciulla v. State, 191 Misc. 528; 77 N.Y.S.2d 545; (NY Court of Claims, 1948). Public authorities can also often condemn property. See Generally 87 NY Jur PUBLIC AUTHORITIES Section 1 et seq.
Among the major public-benefit corporations in New York state, the Port Authority of New York and New Jersey
, an interstate compact
, and the Metropolitan Transportation Authority
, which manages most of the public transportation to, in, and around New York City
, might be the most famous. New York has hundreds of lesser-known public-benefit corporations. The Urban Development Corporation, founded to provide public housing, now has other priorities, and it boasts no less than 107 subsidiaries with devolved powers. One of these, the Lower Manhattan Development Corporation
has been receiving a lot of press, in the wake of the September 11, 2001, terrorist attacks.
New York likely has the most extensive number of public-benefit corporations in the United States.
The Southeastern Pennsylvania Transportation Authority
(SEPTA) provides public transportation in and around Philadelphia.
The Delaware River Port Authority
is a bi-state agency of Pennsylvania and New Jersey.
's (TVA's) operations, which span a region extending into seven states (most of Tennessee and parts of six others), but the TVA is actually a federally-owned public authority. The TVA has been key in aiding the region's economic development, most notably in the 1930s during the Great Depression
.
, the state of Vermont
defines public-benefit corporations broadly. They include public-benefit corporations founded by the state and by private entities. The Vermont Economic Development Authorityhttp://www.veda.org/ is an example of a state-owned public-benefit corporation.
if they are not founded by a government. Some jurisdictions (the U.S. State
of Maine
, for instance) might define a public-benefit corporation broadly. In California
, public-benefit corporations are one of several types of non-profit corporations.
State (polity)
A state is an organized political community, living under a government. States may be sovereign and may enjoy a monopoly on the legal initiation of force and are not dependent on, or subject to any other power or state. Many states are federated states which participate in a federal union...
designed to perform some public benefit.
A public authority is a type of public-benefit corporation that takes on a more bureaucratic role, such as the maintenance of public infrastructure, that often has broad powers to regulate or maintain public property.
Authorities borrow from both municipal corporation
Municipal corporation
A municipal corporation is the legal term for a local governing body, including cities, counties, towns, townships, charter townships, villages, and boroughs. Municipal incorporation occurs when such municipalities become self-governing entities under the laws of the state or province in which...
law (that is, the laws responsible for the creation of cities
City
A city is a relatively large and permanent settlement. Although there is no agreement on how a city is distinguished from a town within general English language meanings, many cities have a particular administrative, legal, or historical status based on local law.For example, in the U.S...
, town
Town
A town is a human settlement larger than a village but smaller than a city. The size a settlement must be in order to be called a "town" varies considerably in different parts of the world, so that, for example, many American "small towns" seem to British people to be no more than villages, while...
s, and other forms of local government
Local government
Local government refers collectively to administrative authorities over areas that are smaller than a state.The term is used to contrast with offices at nation-state level, which are referred to as the central government, national government, or federal government...
) and private corporations law. Other public-benefit corporations resemble private non-profit organization
Non-profit organization
Nonprofit organization is neither a legal nor technical definition but generally refers to an organization that uses surplus revenues to achieve its goals, rather than distributing them as profit or dividends...
s, and take on roles that private corporations might otherwise perform. These corporations often operate in heavily regulated
Regulation
Regulation is administrative legislation that constitutes or constrains rights and allocates responsibilities. It can be distinguished from primary legislation on the one hand and judge-made law on the other...
industries, such as broadcasting
Broadcasting
Broadcasting is the distribution of audio and video content to a dispersed audience via any audio visual medium. Receiving parties may include the general public or a relatively large subset of thereof...
and transportation.
Corporations such as these are often found in common law
Common law
Common law is law developed by judges through decisions of courts and similar tribunals rather than through legislative statutes or executive branch action...
jurisdiction
Jurisdiction
Jurisdiction is the practical authority granted to a formally constituted legal body or to a political leader to deal with and make pronouncements on legal matters and, by implication, to administer justice within a defined area of responsibility...
s such as the Commonwealth countries and the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
.
Origins
Although people generally associate corporations, sometimes negatively, with private businessBusiness
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...
, corporations in theory began as means to serve public purposes. Corporate theory has its roots in primarily government and religious institutions, where the institution itself is identifiable independently of its membership's mortality
Death
Death is the permanent termination of the biological functions that sustain a living organism. Phenomena which commonly bring about death include old age, predation, malnutrition, disease, and accidents or trauma resulting in terminal injury....
. For example, if the Pope
Pope
The Pope is the Bishop of Rome, a position that makes him the leader of the worldwide Catholic Church . In the Catholic Church, the Pope is regarded as the successor of Saint Peter, the Apostle...
dies, the Catholic Church continues to exist, just as it continues to exist as generations pass on and get replaced by new members.
Public-benefit corporations likely have their direct roots in mercantile capitalism
Merchant capitalism
Merchant capitalism is a term used by economic historians to refer to the earliest phase in the development of capitalism as an economic and social system. Early forms of merchant capitalism were developed in the medieval Islamic world from the 9th century, and in medieval Europe from the 12th...
. In the early days
Early modern period
In history, the early modern period of modern history follows the late Middle Ages. Although the chronological limits of the period are open to debate, the timeframe spans the period after the late portion of the Middle Ages through the beginning of the Age of Revolutions...
of Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
an exploration and colonization, a government or monarch
Monarch
A monarch is the person who heads a monarchy. This is a form of government in which a state or polity is ruled or controlled by an individual who typically inherits the throne by birth and occasionally rules for life or until abdication...
would sometimes grant a charter
Charter
A charter is the grant of authority or rights, stating that the granter formally recognizes the prerogative of the recipient to exercise the rights specified...
to an entity allowing it to incorporate and make potentially risky investments. While certainly not public-benefit corporations by today's standards, entities such as the Massachusetts Bay Company, Hudson's Bay Company
Hudson's Bay Company
The Hudson's Bay Company , abbreviated HBC, or "The Bay" is the oldest commercial corporation in North America and one of the oldest in the world. A fur trading business for much of its existence, today Hudson's Bay Company owns and operates retail stores throughout Canada...
, and the Dutch East India Company
Dutch East India Company
The Dutch East India Company was a chartered company established in 1602, when the States-General of the Netherlands granted it a 21-year monopoly to carry out colonial activities in Asia...
arguably are early prototypes of publicly-chartered (in this case, crown-chartered) corporations successfully making risky investments.
History
The first public authority on record is the Port of London AuthorityPort of London
The Port of London lies along the banks of the River Thames from London, England to the North Sea. Once the largest port in the world, it is currently the United Kingdom's second largest port, after Grimsby & Immingham...
, established 1908. According to the Port of London Acts The Authority is a public trust established to "administer, preserve and improve the Port of London." The goal was to create an entity that would be run self-sufficiently like a private company yet remain under the control of the government. The name Authority is derived from the founding act of Parliament
Parliament of the United Kingdom
The Parliament of the United Kingdom of Great Britain and Northern Ireland is the supreme legislative body in the United Kingdom, British Crown dependencies and British overseas territories, located in London...
which repeatedly stated that "Authority is hereby given...."
The special status of this entity and the fact that it remained subject to administrative law
Administrative law
Administrative law is the body of law that governs the activities of administrative agencies of government. Government agency action can include rulemaking, adjudication, or the enforcement of a specific regulatory agenda. Administrative law is considered a branch of public law...
was established by the UK courts in R v Port of London Authority: ex parte Kynoch [1919] 1 KB 176.
Incorporation and powers
Public-benefit corporations are generally governed by boards of directors, which are appointed, rather than elected, and, internally, reflect bureaucratic forms. The corporation is government-owned and performs a specific, narrow function for the public good.Public-benefit corporations are most often created by statute
Statute
A statute is a formal written enactment of a legislative authority that governs a state, city, or county. Typically, statutes command or prohibit something, or declare policy. The word is often used to distinguish law made by legislative bodies from case law, decided by courts, and regulations...
. In many Commonwealth
Commonwealth of Nations
The Commonwealth of Nations, normally referred to as the Commonwealth and formerly known as the British Commonwealth, is an intergovernmental organisation of fifty-four independent member states...
countries
Country
A country is a region legally identified as a distinct entity in political geography. A country may be an independent sovereign state or one that is occupied by another state, as a non-sovereign or formerly sovereign political division, or a geographic region associated with a previously...
, public-benefit corporations continue to receive charters from the British
Great Britain
Great Britain or Britain is an island situated to the northwest of Continental Europe. It is the ninth largest island in the world, and the largest European island, as well as the largest of the British Isles...
monarchy. In the United States, they receive their charters usually from states, but possibly from the federal government.
Public authorities are usually created with a specific mandate, such as the construction of bridges, mass transit, etc. Unlike departments
Ministry (government department)
A ministry is a specialised organisation responsible for a sector of government public administration, sometimes led by a minister or a senior public servant, that can have responsibility for one or more departments, agencies, bureaus, commissions or other smaller executive, advisory, managerial or...
or ministries of the state, these corporations usually are enabled by statute
Statute
A statute is a formal written enactment of a legislative authority that governs a state, city, or county. Typically, statutes command or prohibit something, or declare policy. The word is often used to distinguish law made by legislative bodies from case law, decided by courts, and regulations...
to raise revenues through bond issues.
For more information, read below about individual jurisdictions.
United Kingdom
The first reference to public-benefit corporations in United KingdomUnited Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
law is in the Health and Social Care (Community Health and Standards) Act 2003, which established NHS Foundation Trust
NHS Foundation Trust
An NHS foundation trust is part of the National Health Service in England and has gained a degree of independence from the Department of Health and local NHS strategic health authority.Foundation Trusts are represented by the , .-Function:...
s as public-benefit corporations. Schedule 1 of the Act sets out the requirements for a public-benefit corporation which include a membership made up of individuals living in a specific area, employees of the corporation and service users, and a board of governors some of whom are elected by the members based on "constituencies" such as staff, users or public.
Public-benefit corporations are distinguishable from public authorities in that the latter do not have a membership.
Examples of other bodies which have a similar role to, whilst not being formally called, public-benefit corporations include the BBC
BBC
The British Broadcasting Corporation is a British public service broadcaster. Its headquarters is at Broadcasting House in the City of Westminster, London. It is the largest broadcaster in the world, with about 23,000 staff...
, which is incorporated by royal charter
Royal Charter
A royal charter is a formal document issued by a monarch as letters patent, granting a right or power to an individual or a body corporate. They were, and are still, used to establish significant organizations such as cities or universities. Charters should be distinguished from warrants and...
. Many universities have charters going back centuries, and so are also chartered corporations.
Canada
Via Rail in CanadaCanada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
is an independent crown corporation offering intercity passenger rail services in Canada. The Canadian Broadcasting Corporation
Canadian Broadcasting Corporation
The Canadian Broadcasting Corporation, commonly known as CBC and officially as CBC/Radio-Canada, is a Canadian crown corporation that serves as the national public radio and television broadcaster...
is another example.
The Province of Ontario
Ontario
Ontario is a province of Canada, located in east-central Canada. It is Canada's most populous province and second largest in total area. It is home to the nation's most populous city, Toronto, and the nation's capital, Ottawa....
shares two international public-benefit corporations with the U.S. state of New York:
- Buffalo and Fort Erie Public Bridge Authority http://www.peacebridge.com/ (also known as the Peace Bridge Authority) — international authority that maintains the Peace BridgePeace BridgeThe Peace Bridge is an international bridge between Canada and the United States at the east end of Lake Erie at the source of the Niagara River, about upriver of Niagara Falls. It connects the City of Buffalo, New York, in the United States to the Town of Fort Erie, Ontario, in Canada...
link between BuffaloBuffalo, New YorkBuffalo is the second most populous city in the state of New York, after New York City. Located in Western New York on the eastern shores of Lake Erie and at the head of the Niagara River across from Fort Erie, Ontario, Buffalo is the seat of Erie County and the principal city of the...
, New YorkNew YorkNew York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
, and Fort ErieFort Erie, OntarioFort Erie is a town on the Niagara River in the Niagara Region, Ontario, Canada. It is located directly across the river from Buffalo, New York....
, OntarioOntarioOntario is a province of Canada, located in east-central Canada. It is Canada's most populous province and second largest in total area. It is home to the nation's most populous city, Toronto, and the nation's capital, Ottawa....
. - Niagara Falls Bridge CommissionNiagara Falls Bridge CommissionThe Niagara Falls Bridge Commission international public authority controlling three bridges between Ontario in Canada and New York in the United States. The Commission's bridges are the Lewiston-Queenston Bridge, Whirlpool Rapids Bridge and Rainbow Bridge. These bridges are in the Niagara Falls...
http://www.niagarafallsbridges.com/ — international public authority controlling various bridges in the Niagara FallsNiagara FallsThe Niagara Falls, located on the Niagara River draining Lake Erie into Lake Ontario, is the collective name for the Horseshoe Falls and the adjacent American Falls along with the comparatively small Bridal Veil Falls, which combined form the highest flow rate of any waterfalls in the world and has...
. The Board of Commissioners has eight members — four appointed by the Ontario Premier, and four by the Governor of New York State.
Russia
In Russia the law “On Noncommercial Organizations” describes the status state corporations. It is a special form of noncommercial partnershipPartnership
A partnership is an arrangement where parties agree to cooperate to advance their mutual interests.Since humans are social beings, partnerships between individuals, businesses, interest-based organizations, schools, governments, and varied combinations thereof, have always been and remain commonplace...
founded by the state to fulfill socially significant tasks. The activities of each corporation are described in a special federal law. Assets transferred to a state corporation are not state property from the legal point of view. Under the law “On Noncommercial Organizations”, property transferred to as the investment in a partnership is the property of the partnership. The partnership itself is no one's property. It manages its assets as described in its charter. The rights of the founder are considerable in the partnership, but they are still not ownership rights. There is only one founder in a state corporation, and it is the Russian Federation. That is why the state corporation is independent. It is a set of assets that are managed for purposes established in its charter by managers appointed by the founder. State corporations, as a rule, are subordinate not to the government, but to the Russian president, and act to accomplish some important goal. The state corporations can manage those assets as demanded by the sketchily described goals and tasks of the charters and as allowed by the supervisory council, on which there is no one the president does not trust.
United States
Since the U.S. Constitution does not explicitly or implicitly empower the Government of the United States to create corporations outside of the confines of the federal government, the power to define and create corporations (other than as agencies of the U.S. government) is mostly reserved to the individual states. (However, certain corporations chartered by acts of Congress do exist, mostly non-profit organizations serving the public interest, such as the Boy Scouts of AmericaBoy Scouts of America
The Boy Scouts of America is one of the largest youth organizations in the United States, with over 4.5 million youth members in its age-related divisions...
, as well as various charitable, fraternal, and veterans' organizations. In addition, certain parastatals, which are for-profit, but may exercise unique powers, such as Fannie Mae and Freddie Mac, have federal charters.)
Private corporations were not so common in the early United States as they are today; corporations were often founded to create a public purpose, such as the maintenance of a toll bridge. Today, public-benefit corporations are popular in some states in the United States, perhaps especially New York State. Many interstate compact
Interstate compact
An interstate compact is an agreement between two or more states of the United States of America. Article I, Section 10 of the United States Constitution provides that "no state shall enter into an agreement or compact with another state" without the consent of Congress...
s in the United States are public-benefit corporations.
Examples of federal public-benefit corporations created, owned and operated by the U.S. government include Amtrak
Amtrak
The National Railroad Passenger Corporation, doing business as Amtrak , is a government-owned corporation that was organized on May 1, 1971, to provide intercity passenger train service in the United States. "Amtrak" is a portmanteau of the words "America" and "track". It is headquartered at Union...
, the United States Postal Service
United States Postal Service
The United States Postal Service is an independent agency of the United States government responsible for providing postal service in the United States...
and the Corporation for Public Broadcasting
Corporation for Public Broadcasting
The Corporation for Public Broadcasting is a non-profit corporation created by an act of the United States Congress, funded by the United States’ federal government to promote public broadcasting...
.
Many public authorities in the United States are interstate compact
Interstate compact
An interstate compact is an agreement between two or more states of the United States of America. Article I, Section 10 of the United States Constitution provides that "no state shall enter into an agreement or compact with another state" without the consent of Congress...
s or local and regional entities covering multiple municipalities on the county or state level.
California
- Los Angeles County Metropolitan Transportation AuthorityLos Angeles County Metropolitan Transportation AuthorityThe Los Angeles County Metropolitan Transportation Authority is the California state-chartered regional transportation planning agency and public transportation operating agency for the County of Los Angeles formed in 1993 out of a merger of the Southern California Rapid Transit District and the...
- Santa Clara Valley Transportation AuthoritySanta Clara Valley Transportation AuthorityThe Santa Clara Valley Transportation Authority is a special-purpose district responsible for public transit services, congestion management, specific highway improvement projects, and countywide transportation planning for Santa Clara County, California, United States...
Delaware
- The Delaware River and Bay AuthorityDelaware River and Bay AuthorityThe Delaware River and Bay Authority or DRBA is a bi-state government agency of the U.S. states of New Jersey and Delaware established by interstate compact in 1961....
controls the Delaware Memorial BridgeDelaware Memorial BridgeThe Delaware Memorial Bridge is a set of twin suspension bridges crossing the Delaware River. The toll bridges carry Interstate 295 and U.S. Route 40 between Delaware and New Jersey...
and the Cape May-Lewes FerryCape May-Lewes FerryThe Cape May – Lewes Ferry is a ferry system that traverses a 17-mile crossing of the Delaware Bay to connect Cape May, New Jersey with Lewes, Delaware. The ferry doubles as a section of U.S. Route 9.-The system:...
between Delaware and New Jersey, and is a bi-state agency created by an interstate compact with New Jersey. - DART First StateDART First StateThe Delaware Transit Corporation, trading as DART First State is the primary public transportation system that operates throughout Delaware, USA...
(Delaware Transit Corporation) is an agency of the Delaware Department of TransportationDelaware Department of TransportationThe Delaware Department of Transportation is an agency of the U.S. state of Delaware. The Secretary of Transportation is Shailen Bhatt...
(DelDOT) which operates, funds and oversees bus and passenger rail service. - Delaware Solid Waste Authority (DSWA) is an independent establishment of the state of Delaware, created in 1975 to oversee solid waste planning, recycling and disposal, and to operate the three landfills located in the state.
Florida
- Miami-Dade TransitMiami-Dade TransitMiami-Dade Transit is the primary public transit authority of Miami, Florida, United States and the greater Miami-Dade County area. It is the largest transit system in Florida and the 12th-largest transit system in the United States....
- Jacksonville Port AuthorityJacksonville Port AuthorityThe Jacksonville Port Authority also known by its brand name, JAXPORT, is the independent government agency in Jacksonville, Florida that owns and operates much of the seaport system at the Port of Jacksonville.-History:...
- Jacksonville Aviation AuthorityJacksonville Aviation AuthorityThe Jacksonville Aviation Authority is the independent government agency that owns and operates the four airports of Jacksonville, Florida. It was established in 2001 after being branched off of the Jacksonville Port Authority...
- Jacksonville Transportation AuthorityJacksonville Transportation AuthorityThe Jacksonville Transportation Authority is the independent agency responsible for public transit in the city of Jacksonville, Florida, and roadway infrastructure that connects northeast Florida. However, they do not maintain any roadways.-History:...
Illinois
The Bi-State Development AgencyBi-State Development Agency
The Bi-State Development Agency is an interstate compact formed by Missouri and Illinois in 1949. Since February 2003 the agency has been doing business as Metro. It operates with a budget of $160 million, which is funded by sales taxes from the City of St. Louis and St. Louis County, the St...
is a bi-state agency managing public transportation between southern Illinois
Illinois
Illinois is the fifth-most populous state of the United States of America, and is often noted for being a microcosm of the entire country. With Chicago in the northeast, small industrial cities and great agricultural productivity in central and northern Illinois, and natural resources like coal,...
and Missouri
Missouri
Missouri is a US state located in the Midwestern United States, bordered by Iowa, Illinois, Kentucky, Tennessee, Arkansas, Oklahoma, Kansas and Nebraska. With a 2010 population of 5,988,927, Missouri is the 18th most populous state in the nation and the fifth most populous in the Midwest. It...
. It serves the St. Louis
St. Louis, Missouri
St. Louis is an independent city on the eastern border of Missouri, United States. With a population of 319,294, it was the 58th-largest U.S. city at the 2010 U.S. Census. The Greater St...
metropolitan area.
The Regional Transportation Authority (RTA) oversees funding and operation of public transit in the Illinois portion of the Chicago metropolitan area.
Maine
In the state of MaineMaine
Maine is a state in the New England region of the northeastern United States, bordered by the Atlantic Ocean to the east and south, New Hampshire to the west, and the Canadian provinces of Quebec to the northwest and New Brunswick to the northeast. Maine is both the northernmost and easternmost...
, public-benefit corporations:
- are designated as a public-benefit corporation by statute; or
- are tax exempt under section 501(c)(3) of the Internal Revenue CodeInternal Revenue CodeThe Internal Revenue Code is the domestic portion of Federal statutory tax law in the United States, published in various volumes of the United States Statutes at Large, and separately as Title 26 of the United States Code...
; or - are organized for a public or charitable purpose and is required to distribute assets to a similar tax exempt organization upon dissolution; or
- have elected to be a public-benefit corporation.
Maryland
- Maryland Transit AdministrationMaryland Transit AdministrationThe Maryland Transit Administration is a state-operated mass transit administration in Maryland, and is part of the Maryland Department of Transportation. It is better known as MTA Maryland to avoid confusion with other cities' transit agencies who share the initials MTA. The MTA operates a...
- Baltimore
Massachusetts
- Massachusetts Bay Transportation AuthorityMassachusetts Bay Transportation AuthorityThe Massachusetts Bay Transportation Authority, often referred to as the MBTA or simply The T, is the public operator of most bus, subway, commuter rail and ferry systems in the greater Boston, Massachusetts, area. Officially a "body politic and corporate, and a political subdivision" of the...
(MBTA) - Massachusetts Port AuthorityMassachusetts Port AuthorityMassachusetts Port Authority, or Massport, is a port district in the Commonwealth of Massachusetts. It operates seaports and airports in eastern and central Massachusetts, mainly the Port of Boston. Its headquarters is located in the Logan Office Center, adjacent to Logan Airport in East Boston,...
- Massachusetts Turnpike Authority (MTA)
New Jersey
The New Jersey Turnpike AuthorityNew Jersey Turnpike Authority
The New Jersey Turnpike Authority is a state agency responsible for maintaining the New Jersey Turnpike and the Garden State Parkway...
(NJTA) is a public-benefit corporation in New Jersey
New Jersey
New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware...
, created by the New Jersey Turnpike Authority Act of 1948.
The Delaware River and Bay Authority
Delaware River and Bay Authority
The Delaware River and Bay Authority or DRBA is a bi-state government agency of the U.S. states of New Jersey and Delaware established by interstate compact in 1961....
controls the Delaware Memorial Bridge
Delaware Memorial Bridge
The Delaware Memorial Bridge is a set of twin suspension bridges crossing the Delaware River. The toll bridges carry Interstate 295 and U.S. Route 40 between Delaware and New Jersey...
between Delaware and New Jersey, and is a bi-state agency. The Delaware River Port Authority
Delaware River Port Authority
The Delaware River Port Authority is a bi-state instrumentality created by a Congressionally approved interstate compact between the governments of the Commonwealth of Pennsylvania and the State of New Jersey...
is a bi-state agency of New Jersey and Pennsylvania
Pennsylvania
The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...
.The Port Authority of New York and New Jersey
Port Authority of New York and New Jersey
The Port Authority of New York and New Jersey is a bi-state port district, established in 1921 through an interstate compact, that runs most of the regional transportation infrastructure, including the bridges, tunnels, airports, and seaports, within the Port of New York and New Jersey...
is a bi-state agency shared with New York.
NJ Transit, formed in 1979 operates bus, light rail and passenger rail service in New Jersey and in neighboring states as well as funding and planning of bus and rail services and programs.
Although "Public Benefit Corporation" is not a statutorily defined term under State laws (New Jersey Statutes or the New Jersey Administrative Code), such corporations are among those included within the statutorily defined term "State Agency".
New Hampshire
- Manchester Transit Authority (New Hampshire)Manchester Transit AuthorityThe Manchester Transit Authority, or MTA, is a public transportation provider in Manchester, New Hampshire. It was founded in 1973 and operates 11 regular bus routes through the city, including a free downtown circulator. In general, service is hourly, with more frequent service along corridors...
New York
The widespread use of public authorities in the United States was pioneered in New YorkNew York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
state by Robert Moses
Robert Moses
Robert Moses was the "master builder" of mid-20th century New York City, Long Island, Rockland County, and Westchester County, New York. As the shaper of a modern city, he is sometimes compared to Baron Haussmann of Second Empire Paris, and is one of the most polarizing figures in the history of...
. The approval of the New York State Public Authorities Control Board
New York State Public Authorities Control Board
The New York State Public Authorities Control Board is composed of five members, appointed by the Governor, some upon the recommendation of members of the Legislature. New York's public services are heavily organized into public benefit corporations known frequently as authorities or development...
is required in some cases when creating an authority. An authority may at times levy taxes and tolls; this means that they are not part of the usual state budgetary process, and gives them a certain independence. Their most admired ability by the New York State and local government, is to circumvent strict public debt limits in the New York State Constitution. Furthermore, they may make contracts; because of public authorities' corporate status, there is, generally, no remedy against the chartering State for the breach of such contracts. John Grace & Co. v. State University Constr. Fund, 44 N.Y.2d 84, 375 N.E.2d 377; 404 N.Y.S.2d 316 (1978). On the other hand, as agents of the state, public authorities are not subject to many laws governing private corporations, and are not subject to municipal regulation. Employees of public authorities usually are not state employees, but are employees of the authority. Ciulla v. State, 191 Misc. 528; 77 N.Y.S.2d 545; (NY Court of Claims, 1948). Public authorities can also often condemn property. See Generally 87 NY Jur PUBLIC AUTHORITIES Section 1 et seq.
Among the major public-benefit corporations in New York state, the Port Authority of New York and New Jersey
Port Authority of New York and New Jersey
The Port Authority of New York and New Jersey is a bi-state port district, established in 1921 through an interstate compact, that runs most of the regional transportation infrastructure, including the bridges, tunnels, airports, and seaports, within the Port of New York and New Jersey...
, an interstate compact
Interstate compact
An interstate compact is an agreement between two or more states of the United States of America. Article I, Section 10 of the United States Constitution provides that "no state shall enter into an agreement or compact with another state" without the consent of Congress...
, and the Metropolitan Transportation Authority
Metropolitan Transportation Authority (New York)
The Metropolitan Transportation Authority of the State of New York is a public benefit corporation responsible for public transportation in the U.S...
, which manages most of the public transportation to, in, and around New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
, might be the most famous. New York has hundreds of lesser-known public-benefit corporations. The Urban Development Corporation, founded to provide public housing, now has other priorities, and it boasts no less than 107 subsidiaries with devolved powers. One of these, the Lower Manhattan Development Corporation
Lower Manhattan Development Corporation
The Lower Manhattan Development Corporation was formed in July 2002, after the September 11 attacks to plan the reconstruction of Lower Manhattan and distribute nearly $10 billion in federal funds aimed at rebuilding downtown Manhattan....
has been receiving a lot of press, in the wake of the September 11, 2001, terrorist attacks.
New York likely has the most extensive number of public-benefit corporations in the United States.
- See New York state public-benefit corporations
Pennsylvania
In this state, a municipal authority can have many similarities to a public-benefit corporation.The Southeastern Pennsylvania Transportation Authority
Southeastern Pennsylvania Transportation Authority
The Southeastern Pennsylvania Transportation Authority is a metropolitan transportation authority that operates various forms of public transit—bus, subway and elevated rail, commuter rail, light rail, and electric trolley bus—that serve 3.9 million people in and around Philadelphia,...
(SEPTA) provides public transportation in and around Philadelphia.
The Delaware River Port Authority
Delaware River Port Authority
The Delaware River Port Authority is a bi-state instrumentality created by a Congressionally approved interstate compact between the governments of the Commonwealth of Pennsylvania and the State of New Jersey...
is a bi-state agency of Pennsylvania and New Jersey.
Tennessee
Tennessee is arguably the banner state for the Tennessee Valley AuthorityTennessee Valley Authority
The Tennessee Valley Authority is a federally owned corporation in the United States created by congressional charter in May 1933 to provide navigation, flood control, electricity generation, fertilizer manufacturing, and economic development in the Tennessee Valley, a region particularly affected...
's (TVA's) operations, which span a region extending into seven states (most of Tennessee and parts of six others), but the TVA is actually a federally-owned public authority. The TVA has been key in aiding the region's economic development, most notably in the 1930s during the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
.
Vermont
Like MaineMaine
Maine is a state in the New England region of the northeastern United States, bordered by the Atlantic Ocean to the east and south, New Hampshire to the west, and the Canadian provinces of Quebec to the northwest and New Brunswick to the northeast. Maine is both the northernmost and easternmost...
, the state of Vermont
Vermont
Vermont is a state in the New England region of the northeastern United States of America. The state ranks 43rd in land area, , and 45th in total area. Its population according to the 2010 census, 630,337, is the second smallest in the country, larger only than Wyoming. It is the only New England...
defines public-benefit corporations broadly. They include public-benefit corporations founded by the state and by private entities. The Vermont Economic Development Authorityhttp://www.veda.org/ is an example of a state-owned public-benefit corporation.
Washington
- Port of SeattlePort of SeattleThe Port of Seattle is a port district that runs Seattle's seaport and airport. Its creation was approved by the voters of King County, Washington, on September 5, 1911, authorized by the Port District Act. It is run by a five-member commission. The commissioners' terms run four years...
- Washington State FerriesWashington State FerriesWashington State Ferries is a passenger and automobile ferry service owned and operated by the Washington State Department of Transportation that serves communities on Puget Sound and in the San Juan Islands. It is the most used ferry system in the world and the largest passenger and automobile...
- Sound TransitSound TransitSound Transit has been the popular name of Washington state's Central Puget Sound Regional Transit Authority since September 19, 1999. It was formed in 1996 by the Snohomish, King, and Pierce County Councils...
- Click! NetworkClick! NetworkClick! Network is a broadband cable system owned by Tacoma Power, a part of Tacoma Public Utilities in Tacoma, Washington. It provides cable television and Internet connectivity for residents and businesses in Tacoma, University Place, Fircrest, Lakewood and Fife.Back in the late 1990s there was...
Other meanings
More broadly, a public-benefit corporation could be any corporation that exists for a charitable purpose, though these are generally called non-profit corporationsNon-profit organization
Nonprofit organization is neither a legal nor technical definition but generally refers to an organization that uses surplus revenues to achieve its goals, rather than distributing them as profit or dividends...
if they are not founded by a government. Some jurisdictions (the U.S. State
U.S. state
A U.S. state is any one of the 50 federated states of the United States of America that share sovereignty with the federal government. Because of this shared sovereignty, an American is a citizen both of the federal entity and of his or her state of domicile. Four states use the official title of...
of Maine
Maine
Maine is a state in the New England region of the northeastern United States, bordered by the Atlantic Ocean to the east and south, New Hampshire to the west, and the Canadian provinces of Quebec to the northwest and New Brunswick to the northeast. Maine is both the northernmost and easternmost...
, for instance) might define a public-benefit corporation broadly. In California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
, public-benefit corporations are one of several types of non-profit corporations.
See also
- B corporation (or "Benefit CorporationBenefit corporationA Benefit Corporation, is a class of corporation required by law to create general benefit for society as well as for shareholders. Benefit Corporations must create a material positive impact on society, and consider how their decisions affect their employees, community, and the environment...
"). - Regulatory agency
- special-purpose districtSpecial-purpose districtSpecial-purpose districts or special district governments in the United States are independent governmental units that exist separately from, and with substantial administrative and fiscal independence from, general purpose local governments such as county, municipal, and township governments. As...
- Dartmouth v. Woodward