Galette v. New Jersey Transit Corp. · ¶34

The Court again asked whether an entity was “comparable to a county or municipality” or rather an arm of the State in Lake Country Estates, Inc. v. Tahoe Regional Planning Agency, 440 U. S. 391, 401 (1979). There, the entity at issue was the Tahoe Regional Planning Agency, a bistate entity created by California and Nevada alongside the Federal Government under the Compact Clause. Id., at 394. The Court explained that the interstate compact created the agency as a “ `separate legal entity' ” and a “ `political subdivision' ” and that judgments against the agency were not binding on either State. Id., at 401–402. The Court also observed that most of the agency's governing members were not appointed by the States; that its rulemaking authority was not subject to any state-level veto; that the agency's function (land-use regulation) was a traditional local government function; and that…

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