Can a New York county set fixed terms of office for its Industrial Development Agency board members, or do they serve at the appointing authority's pleasure?

Plain-English summary

Montgomery County's county attorney asked the AG whether the county legislature could give the Industrial Development Agency board members a fixed term of office. The AG said no. Under General Municipal Law § 856(2), IDA members serve at the pleasure of the appointing authority, meaning they can be removed at will without a hearing or findings. Substituting a fixed term for the at-pleasure rule would be inconsistent with § 856(2), and the county cannot supersede that statute by local action because the IDA is a creature of State law, not a county department.

The mechanism makes a difference. New York IDAs are independent public benefit corporations created by the State Legislature, with powers to finance industrial projects through tax-exempt bonds and similar tools. They are not municipal agencies. The Montgomery County IDA in particular was established by General Municipal Law § 895-b. Because the IDA is a separately created legal entity, the county legislature does not have the home-rule authority that would let it modify the IDA's internal governance. Only the Legislature has that power, either by amending Article 18-A or by enacting a special act for the Montgomery County IDA.

The AG also unpacks what "serve at the pleasure" means: the appointee can be dismissed at will, with no need for a hearing or particularized findings. It is a settled term with legal significance, drawing on Matter of Fogerty v Warden and on the AG's own 1988 informal opinion 88-33.

Currency note

This opinion was issued in 1996. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Common questions

What is an Industrial Development Agency?
At the time of the opinion, IDAs were public benefit corporations created under Article 18-A of the General Municipal Law to promote employment and economic development. They could finance industrial, manufacturing, warehousing, research, recreation, and certain other facilities, often using tax-exempt bonds and abatements of real-property and sales taxes.

Why are IDAs different from county departments?
Because the Legislature creates them as independent entities, each with its own statutory enabling section. The Montgomery County IDA came into existence by virtue of General Municipal Law § 895-b, not by a county resolution. Once the State creates the entity and prescribes how its members are appointed and how long they serve, the county does not have authority to change those internal-governance rules by local action.

What does "serve at the pleasure" mean in practice?
The appointing authority can remove the member at any time without giving a reason and without a hearing. The member has no expectation of continued service. By contrast, members with a fixed term have a property interest in completing the term (usually subject to removal for cause through a defined process).

Could the appointing authority informally treat IDA members as serving fixed terms?
The AG's analysis would say no, because the statute provides at-pleasure service. As a matter of statutory interpretation, members serve at the appointing authority's pleasure. The county could choose not to remove anyone, but that does not convert the position into a fixed-term position legally. If the county legislature wanted a true fixed-term structure, it would need a State legislative fix.

Has the Legislature done this for any specific IDA?
The § 856(2) language "except as otherwise provided by special act of the Legislature" anticipates that the Legislature might create individual IDAs with fixed-term provisions. The general rule in § 856(2) is at-pleasure service, but the Legislature can override that rule for a specific IDA by special act. Montgomery County did not have such a special act at the time of the opinion, so the default at-pleasure rule controlled.

Background and statutory framework

The two statutes:

General Municipal Law § 856(2), at the time of the opinion, provided that, except as otherwise provided by special act of the Legislature, an IDA consists of not less than three nor more than seven members appointed by the governing body of each municipality, who serve at the pleasure of the appointing authority.

General Municipal Law § 895-b created the Montgomery County Industrial Development Agency, made its members appointed by the county's governing body, and gave the agency the powers and duties of Title I of Article 18-A, with organization as set forth in that title.

The combination of these two statutes means: members serve at the pleasure of the county governing body, and any deviation requires legislative action.

The "serve at the pleasure" doctrine is well settled. Matter of Fogerty v Warden held that an at-pleasure appointee can be dismissed at will, without a hearing or findings, because the very nature of the at-pleasure tenure dispenses with those due-process formalities. The AG had reaffirmed this in informal opinion 88-33.

Source

• Landing page: https://ag.ny.gov/libraries-documents/opinions/opinions-year
• Original PDF: https://ag.ny.gov/sites/default/files/opinions/I_96-19_pw.pdf

Original opinion text

GENERAL MUNICIPAL LAW, ART 18-A, §§ 856(2), 895-b.

Members of the Montgomery County Industrial Development Agency serve at the pleasure of the appointing authority. An act of the State Legislature would be required to provide a term for these positions.

June 26, 1996

Kelli P. McCoski, Esq.
County Attorney
County of Montgomery
123 Guy Park Avenue
Amsterdam, NY 12010

Informal Opinion No. 96-19

Dear Ms. McCoski:

You have asked whether terms of office may be established for members of the board of the Montgomery County Industrial Development Agency.

State law has established the Montgomery County Industrial Development Agency. General Municipal Law § 895-b. Its members are appointed by the governing body of the County of Montgomery. Id. The agency has the powers and duties set forth in Title I of Article 18-A of the General Municipal Law and is organized in the manner set forth in that Title.

Except as otherwise provided by special act of the Legislature, an industrial development agency consists of not less than three nor more than seven members "who shall be appointed by the governing body of each municipality and who shall serve at the pleasure of the appointing authority". Id., Article 18-A, Title I, § 856(2). Service "at the pleasure" of an appointing authority is a term with legal significance, meaning that the appointee may be dismissed at will, with no need for a hearing or the making of any particular findings. See, Matter of Fogerty v Warden, 191 Misc 916 (Sup Ct Orange Co), affd, 273 App Div 910 (2d Dept), affd, 297 NY 963 (1948); Op Atty Gen (Inf) No. 88-33. The local establishment of a term for these positions, therefore, would be inconsistent with the provisions of section 856(2) of the General Municipal Law. In that the formation of industrial development agencies is beyond the power of local governments since they are separate legal entities with authority to finance various projects, the county board of supervisors may not modify the provisions of section 856(2). An act of the Legislature would be required.

We conclude that members of the Montgomery County Industrial Development Agency serve at the pleasure of the appointing authority. An act of the State Legislature would be required to provide a term for these positions.

The Attorney General renders formal opinions only to officers and departments of State government. This perforce is an informal and unofficial expression of the views of this office.

Very truly yours,

JAMES D. COLE
Assistant Attorney General
in Charge of Opinions