ALBANY, N.Y., March 8 – The New York State Power Authority and the Thruway Authority have been advised to stop paying health insurance premiums for their board members by state Attorney General Andrew M. Cuomo. One hundred letters have also been sent to New York State authorities which have enabling statutes prohibiting the payment of health insurance benefits to board members. The authorities are all being informed that compensation for their board members is illegal.

If the state Power and Thruway Authorities do not stop paying for their board members health benefits, they have been asked to submit a list of the current or retired board members who are receiving such benefits. The Office of the Attorney General will inspect the lists and consider appropriate enforcement actions.

For too long, public authorities have operated without adequate oversight, said Cuomo. Authorities, like all public entities, must be held to the highest ethical standards. My offices actions are a first step toward providing that needed oversight and ensuring that hundreds of public authorities in this state will act with the integrity that the public rightfully demands.

The advisements came after Cuomo issued a legal opinion regarding the prohibiting of the New York State Housing Finance Agency (HFA) and Mortgage Agency (SONYMA) from paying health insurance premiums for current or retired board members. The attorney general concluded that such activity was illegal, noting that the enabling acts that empower HFA and SONYMA were specifically amended in 1992 to prohibit board members from receiving salary or other compensation. These agencies had requested an opinion on the legality of paying for board members health benefits.

Cuomos investigation is continuing and it is anticipated that additional authorities will receive similar letters in the near future.