An Act to Transfer State Ownership of Certain Railroad Rights-of-way and Create the Calais to Eastport Rail Authority
Maine Legislature, Session 121, LD 0113
Committee: Transportation
Sponsors: GOODWIN, BUNKER, DUGAY, MOORE
Amends: 5 MRSA §12004, 23 MRSA §8211

Legislative Document 
No. 113 
H.P.124 
House of Representatives, January 21,2003 
An Act to Transfer State Ownership of Certain Railroad Rights-of-
way and Create the Calais to Eastport Rail Authority 
Reference to the Committee on Transportation suggested and ordered printed. 
Presented by Representative GOODWIN of Pembroke. 
11/~ 
'frl.11/u£~ 
MILLICENT M. MacFARLAND 
Clerk 
Cosponsored by Representatives: BUNKER of Kossuth Township, DUGAY of Cherryfield, 
MOORE of the Passamaquoddy Tribe. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
PART A 
Sec. A·l. 5 MRSA §12004.F, sub·§19 is enacted to read: 
19. 
Calais to 
Eastport Rail Authority 
Legislative 
Per Diem 
MRSA §8211 
Sec. A·2. 23 MRSA c. 623 is enacted to read: 
CHAPTER 623 
CALAIS TO EASTPORT RAIL SERVICE 
SUBCHAPTER I 
GENERAL PROVISIONS 
S8201. Definitions 
As 
used 
in this 
chapter, 
unless 
the 
context 
otherwise 
indicates, the following terms have the following meanings. 
1. 
Authority. 
"Authority" means the Calais to Eastport 
Rail Authority. 
2. 
Government agency. 
"Government 
agency" 
includes 
any 
department, 
agency, 
commission, 
bureau, 
authority, 
instrumentality and political subdivision of: 
A. 
The Federal Government; 
B. 
The State; 
C. 
Any other state; and 
D. 
The DQminiQn Qf !:;gnag,g gnd gny Qf it§ prQvince§. 
3. 
Railroad line; lines. 
"RailrQad line" or "lines" means 
the 
right-Qf-way, 
track, 
track 
appurtenances, 
ties, 
bridges, 
statiQn hQuses and other appurtengnt structures. 
S8202. Initiation and establishment of freight rail service 
1. 
Establishment of service. 
The authority shall take all 
actions 
that are 
reasonably 
necessary 
to establish, 
repair, 
upgrade gnd maintain a railrQgd line between Calgis ang, EastPQrt, 
in Washington County, 
and to initiate, 
e§tgblish or 
promote 
freight rail service between Calais and Eastport. 
These actions 
Page l-LR0023(1) 
may include, but are not limited to, the acguisition, holding, 
use, 
operation, 
repair, 
construction, 
reconstruction, 
rehabilitation, 
modernization, 
rebuilding, 
relocation, 
maintenance 
and 
disposition 
of 
railroad 
lines, 
railway 
facilities, 
rolling stock, 
machinery 
and 
eguipment, 
trackage 
rights, real and personal property of any kind and any rights in 
or related to that property. 
2. 
Acquisition of pro.perties: rights. 
The authority may 
acguire any of the properties or rights listed in subsection 1 
through 
purchase, 
lease, 
lease purchase, 
gift, 
devise 
or 
otherwise. 
In 
making 
these 
acguisitions 
the 
authority 
may 
exercise the power of eminent domain following the Same procedure 
set forth in section 7154, subsection 5, except that any notice 
of condemnation must be filed in the registry of deeds for the 
county or counties or registry division or divisions in which the 
property is located, in the case of real property, and with the 
office of the Secretary of State in the case of personal property. 
S8203. Contracts: studies 
In order to implement section 8202 and this chapter, the 
authority shall: 
1. 
Conduct studies. 
Conduct or cause to be conducted any 
studies that the authority determines necessary or proper; 
2. 
Enter into contracts. 
Enter 
into 
and fulfill 
any 
contracts and agreements the authority determines necessary or 
proper; 
3. 
Acquire property. 
Acguire property, including, but not 
limited to, railroad lines both within and outside of this State; 
and 
4. 
Cooperate with government agencies. 
Cooperate and enter 
into 
agreements, 
contracts 
and 
compacts 
with 
any 
government 
agency 
and 
any 
other 
person, 
public 
or 
private, 
that 
the 
authority determines necessary. 
§8204. 
Funding: 
e~nditures of funds 
1. 
Source of funds. 
The authority may accept money from 
the Federal Government or any public or private source. 
The 
authority may also obtain funds 
by charging for 
the 
use of 
authority facilities or by borrowing. 
2. 
Emenditure of funds. 
Funds credited to the authority 
must be expended to implement this chapter. 
3. 
Loans and grantS. 
The authority may provide loans and 
matching grants to a government agency to assist in implementing 
this chapter. 
S0205. Reasonable fares 
Fares for rail service established pursuant to this chapter 
must be set at reasonable levels to encourage use of this service. 
SUBCHAPTER 2 
CALAIS TO EASTPORT RAIL AUTHORITY 
S0211. Pu~se 
The authority, as established by Title 5, section 12004-F, 
subsection 19, is a body both corporate and politic in the State 
established for the general purpose of establishing freight rail 
service between Calais and Eastport as set forth in subchapter 
1. 
It is declared that the purposes of this chapter are public 
and 
that 
the 
authority 
must 
be 
regarded 
as 
performing 
a 
governmental function in carrying out this chapter. 
S0212. Directors 
1. 
Board of directors. 
The authority consists of a board 
of 14 directors appointed as follows: 
A. 
Two members who are residents of Charlotte and appointed 
by the governing body of Charlotte; 
B. 
Two members who are residents of Perry and appointed by 
the governing body of Perry; 
C. 
Two members who are residents of Pembroke and appointed 
by the governing body of Pembroke; 
D. 
Two members who are residents of Baring and appointed by 
the governing body of Baring; 
E. 
Two members who are residents of Calais and appointed by 
the governing body of Calais; 
F. 
Two members who are residents of Eastport and appointed 
by the governing body of Eastport; and 
G. 
Two 
members who are residents of Pleasant Point and 
appointed by the Passamaquoddy tribal government. 
2. 
Terms. 
Each director serves a 2-year term, except that 
each 
appointing governing 
body 
under 
subsection 
initially 
appoints one director who serves for one year and one director 
who serves for 2 years. 
3. 
Election of officers; bylaws. 
The authority shall elect 
from among its members a president, 
a treasurer, 
a clerk and 
other 
officers 
the 
authority 
considers 
appropriate. 
The 
authority shall adopt bylaws for the conduct of the affairs of 
the authority. 
4. 
Meetings of directors; compensation. 
All the powers of 
the authority may be exercised by the board of directors and a 
majority of the directors then in office is necessary for 
a 
quorum. 
Regular meetings 
of the board of directors may 
be 
established by bylaw. 
The authority president may call a meeting 
at any time and shall call a meeting when requested in writing by 
at least 113 of the members of the board of directors. 
Each 
director is entitled to compensation pursuant to Title 5, section 
12004-F, subsection 19. 
S0213. Conflict of interest 
A director, officer or employee of the authority may not be 
interested directly or indirectly in any contract entered into by 
or in behalf of the authority for work or material or the 
purchase of material or 
in any property acquired or to 
be 
acquired by the district. 
S0214. Powers 
The authority may: 
1. 
Suit. 
Sue and be sued: 
2. 
Seal. 
Have a seal and alter the seal at pleasure: 
3. 
Bylaws; rules. 
Adopt from time to time and amend bylaws 
covering its procedure and rules for the purposes set forth in 
this chapter, develop and adopt rules, publish bylaws and rules 
as necessary or advisable and cause records of its proceedings to 
be kept. 
Rules adopted pursuant to this subsection are routine 
technical rules as defined in Title 5. chapter 375. subchapter 
2-A: 
4. 
Employees. 
Employ any assistants, attorneys, experts, 
inspectors 
and other employees 
and consultants 
the authority 
considers necessary or desirable for its purposes: 
5. 
Department of Transportation. 
Utilize the services of 
the 
Department 
of 
Transportation 
that 
are 
available 
and 
expedient, 
and 
all 
charges 
for 
services 
provided 
by 
the 
department may be paid to it by the authority as mutually agreed 
upon: and 
6. 
Other action. 
Take all lawful action necessary and 
incidental to effectuate the purposes set forth in this chapter. 
S821S. Obligations of authority 
All expenses incurred in carrying out this chapter must be 
paid solely from funds provided to or obtained by the authority 
pursuant to this chapter. 
Any notes, obligations or liabilities 
under this chapter are not a debt of the State or a pledge of the 
faith and credit of the State, but those notes, obligations and 
liabilities are payable exclusively from funds provided to or 
obtained by the authority pursuant to this chapter. 
Pecuniary 
liability of any kind may not be imposed upon the State or any 
locality, town or landowner in the State because of any act, 
agreement, 
contract, 
tort, 
malfeasance, 
misfeasance 
or 
nonfeasance by or on the part of the authority or its agents, 
servants or employees. 
The records and correspondence relating 
to negotiations, 
trade secrets received by the authority and 
estimates 
of 
costs 
on projects 
to 
be 
put 
out 
to 
bid are 
confidential. 
S8216. Report to Legislature: departmental review 
1. 
Annual 
report. 
By 
January 1st of 
each year, 
the 
authority shall report to the joint standing committee of the 
Legislature having jurisdiction over transportation matters and 
to the Commissioner of Transportation on the programs undertaken 
pursuant to this chapter and submit a report of receipts and 
expenditures from all sources of funding. 
2. 
Operating budget. 
By January 31st of each year, the 
authority shall present the operating budget of the authority for 
the next fiscal year beginning July 1st to the Commissioner of 
Transportation for approval. 
The authority may make expenditures 
only 
in 
accordance 
with 
allocations 
approved 
by 
the 
commissioner. 
Any balance of an allocation that at any time is 
not required for the purpose named in that allocation may be 
transferred at any time prior to the closing of the books to any 
other allocation for the use of the authority for the same fiscal 
year, subject to review and approval by the commissioner. 
Fiscal 
statements 
describing 
a 
transfer 
must 
be 
submitted 
by 
the 
authority to the commissioner 30 days before the transfer is to 
be implemented. 
These fiscal statements must include information 
specifying 
the 
accounts 
that 
are 
affected, 
amounts 
to 
be 
transferred, 
a 
description 
of 
the 
transfer 
and 
a 
detailed 
explanation as to why the transfer is needed. 
§S211. Fair practices; affirmative action 
The authority shall comply with Title 5, chapter 65. 
§S2IS. Property of authority 
1. 
Property of authority. 
All property of the authority 
pursuant to the provisions of this chapter is exempt from levy 
and sale by virtue of any execution, and an execution or other 
judicial process is not a valid lien upon property held pursuant 
to the provisions of this chapter. 
The authority may use its 
property only for the purposes set forth in this chapter. 
2. 
Entry upon lands. 
The authority and its authorized 
agents and employees may enter upon any lands or waters in the 
State for the purpose of making surveys, soundings, drillings and 
examinations as it determines necessary or convenient for the 
purpose of this chapter and the entry is not a trespass nor is 
the authority liable for the discovery of any form of waste or 
environmental contamination. 
3. 
Authority 
for 
transfer 
of 
interest 
in 
land 
to 
authority. 
Any 
county, 
municipality 
or 
other 
political 
subdivision, any public agency or commission of the State and any 
public 
service 
corporation 
or 
district, 
notwithstanding 
an~ 
contrary provisions of law, may lease, lend, grant or convey to 
the authority, upon its request and upon terms and conditions the 
proper 
authorities 
of 
the 
political 
subdivision, 
agency, 
commission, 
public 
service 
corporation or district determine 
reasonable and fair, any real or personal property or rights in 
the property that are necessary or convenient to the effectuation 
of the authorized purposes of the authority, including real and 
personal property or rights in the property already devoted to 
public use. 
As used in this subsection, the term "public service 
corporation" includes a public utility as defined in Title 35-A, 
section 102, subsection 13 and a corporation as defined in Title 
13-C, section 102, subsection 4. 
§S219. Exemption from taxes 
Because 
the 
accomplishment 
by 
the 
authority 
of 
the 
authorized purpose stated in this chapter is for the benefit of 
the people of the State and for the improvement of their commerce 
and prosperity and is the performance of essential governmental 
functions, the authority may not be required to pay any taxes or 
assessment 
on 
any property acquired or 
used 
by it for 
the 
purposes provided in this chapter, except that service facilities 
leased or 
rented by 
the authority to business entities are 
subject to taxation and assessments must be made against the 
tenant 
in possession based 
upon 
the value of the 
leasehold 
interest, both real and personal. 
The authority may not be 
required to pay any tax upon its income except as required by the 
laws of the United States. 
Sec. A-3. Authority expenditures. 
Before July 1, 
2004, 
the 
Calais to Eastport Rail Authority may make expenditures only upon 
review by and approval of the Commissioner of Transportation. 
PARTB 
Sec. B-1. Department of Transportation to transfer right-of-way. 
The 
Department 
of 
Transportation 
shall 
transfer 
without 
compensation any interest it has in the railroad right-of-way 
known as the Calais-Cherryfield rail corridor in the following 
manner. 
1. 
That part of the railroad right-of-way between Calais 
and Ayers Junction must be transferred to the Calais to Eastport 
Rail Authority. 
2. 
That part of the railroad right-of-way between Ayers 
Junction and the Hancock County line must be transferred to the 
various towns and cities and unorganized territory in which the 
rail corridor lies. 
For the purposes of this Part, the "Calais-Cherryfield rail 
corridor" consists of 
the railroad right-of-way that extends 
through Washington County from Calais through Cherryfield to the 
Hancock County line. 
SUMMARY 
This bill creates the Calais to Eastport Rail Authority. 
The authority's purpose is to establish freight rail service 
between Calais and Eastport. 
The bill transfers to the authority 
the Department of Transportation's interest in the existing rail 
line between Calais and Ayers Junction. 
It also transfers the 
Department of Transportation's interest in the existing rail line 
between Ayers Junction and the Hancock 
County line to those 
municipalities through which the line runs.