An Act To Create lOan Airport Authority
Maine Legislature, Session 123, LD 0599
Committee Amendment CA_A_S484 (Senate)
Amends: 14 MRSA §8102

COMMITTEE AMENDMENT" A 
"to S.P. 191, L.D. 599, Bill, "An Act To Create 
lOan Airport Authority" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Facilitate the Creation of Airport Authorities' 
Amend the bill by striking out everything after the enacting clause and inserting the 
following: 
'Sec. 1. 6 MRSA c. 10 is enacted to read: 
CHAPTER 10 
AIRPORT AUTHORITIES 
§171. Purpose; enabling not mandatory; short title 
The purpose of this chapter, which may be known and cited as "the Airport Authority 
Enabling Act," is to facilitate the creation of airport authorities to operate airports and 
provide air transportation services. This chapter provides a streamlined process for the 
creation of airport authorities but is not intended and may not be interpreted to preclude 
the operation of airports or the provision of air transportation services by any other entity 
or entities under any other law or authority. 
§172. Definitions 
As used in this chapter, unless the context otherwise indicates, the following terms 
have the following meanings. 
1. Airport authority. "Airport authority" means a quasi-municipal entity formed 
and chartered pursuant to this chapter to operate an airport and provide air transportation 
services. 
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to S.P. 191, L.D. 599 
2. Airport sponsor. "Airport sponsor" means a municipality, county or group of 
municipalities or counties that owns and operates an airport and accepts funds or property 
from the FAA. 
3. Board of directors or board. "Board of directors" or "board" means the board of 
directors of an airport authority 
4. Charter. "Charter" means a private and special law or a series of private and 
special laws that establishes an airport authority and defines its responsibilities and 
authority. 
5. Charter territory. "Charter territory" means the territorial limits of an airport 
authority as defined in its charter. 
6. Director. "Director" means a member of the board. 
7. Founding entity. 
"Founding entity" means any municipality or county that has 
on its own or together with one more other municipalities or counties developed an 
airport authority proposal for approval under this chapter. 
§173. Proced ures; legal effect 
1. Necessary provisions. An airport authority charter must include the following 
that are not specified in this chapter: 
A. The corporate name of the airport authority; 
B. The territorial limits of the airport authority; 
C. The number of directors of the airport authority; 
D. The appointing authority responsible for appointing or the method of electing the 
first board of directors; 
E. The terms of the directors who are elected or appointed subsequent to the first 
board. Terms of the first board are determined pursuant to section 174, subsection 4; 
F. Whether the directors, subsequent to the first board, are appointed or elected. 
Reference must be made to the appropriate subsections of section 174; and 
G. The procedures for a local referendum on the creation of the airport authority. 
2. Optional provisions. An airport authority charter may include provisions relating 
A. 
Special qualifications of directors, other than the residency requirement 
established under section 174; 
B. Additional purposes and powers beyond those specified in this chapter; 
C. Specific rights or responsibilities of founding entities; 
D. Authorization for the airport authority to acquire the rights, interests, property and 
assets and assume the debts and liabilities of an airport sponsor; and 
E. Any other powers or duties necessary to the accomplishment of the purposes for 
creating the airport authority. 
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COMMITTEE AMENDMENT "A" to S.P. 191, L.D. 599 
§174. Board of directors 
All of the affairs of an airport authority must be managed by a board of directors 
whose members must be residents of the charter territory. The number of directors must 
be specified in the charter. After selection of the first board, each director is nominated 
and elected or appointed as provided in the charter and in accordance with subsection 1 or 
2, as applicable. If the charter does not indicate whether the directors are appointed or 
elected, the directors, after selection of the first board, must be elected in accordance with 
subsection 1. 
1. Nominations and elections; vacancies. This subsection applies to an airport 
authority if its charter provides that its directors are elected or if the charter does not 
indicate whether the directors are elected or appointed. 
A. Nominations and elections of directors are conducted in accordance with the laws 
relating to municipal elections. 
B. When the term of office of a director expires, the director's successor is elected at 
large by a plurality vote of the voters of the charter territory. 
For the purpose of 
election, a special election must be called and held on the date established by the 
directors. The election must be called by the directors in the same manner as town 
meetings are called and, for this purpose, the directors are vested with the powers of 
municipal officers of towns. 
A vacancy is filled in the same manner for the 
unexpired term by a special election called by the directors. 
C. The directors shall appoint a registrar of voters for the airport authority, who may 
also be the registrar of voters for any town within the airport authority, and fix the 
registrar's salary. It is the registrar's duty to make and keep a complete list of all the 
registered voters resident in the charter territory. The list prepared by the registrar 
governs the eligibility of any voter. Voters who are resident outside the charter 
territory are not eligible voters, and the registrar of voters shall exclude those voters 
from the registrar's lists. All warrants issued for elections by the directors must show 
that only the voters resident within the charter territory are entitled to vote. 
2. 
Appointment. 
This subsection applies to an airport authority if its charter 
provides that its directors are appointed. 
A. After selection of the first board, each director is appointed as provided in the 
charter. 
3. Eligibility requirements. When a director ceases to be a resident of the charter 
territory, the director shall vacate the office of director and the vacancy is filled as 
provided in subsection 1 or 2, as applicable. All directors are eligible for reelection or 
reappointment, but a person who is a municipal officer, as defined in Title 30-A, section 
2001, subsection 10, of any town located, in whole or in part, within the charter territory 
is not eligible for appointment, nomination or election as a director of that airport 
authority. 
4. First board. The first board is appointed or elected as provided in the charter. At 
the first meeting, the initial board of directors shall determine by agreement or, failing to 
agree, determine by lot the term of office of each director. The terms of the directors 
must be determined in accordance with the following table. 
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TERM 
Total number of 
year 
years 
years 
directors 
1: 
~ 
Q 
~ 
1: 
1: 
1: 
1: 
II 
1: 
1: 
~ 
1: 
~ 
~ 
Q 
~ 
~ 
~ 
The directors shall enter on their records the determination made. Vacancies are filled 
pursuant to subsection 1 or 2. 
At the original meeting, the directors shall organize by electing from among their 
members a chair and a clerk, by adopting a corporate seal and by electing a treasurer who 
mayor may not be a director. 
S. Organization; conduct of business; employees. Within one week after each 
annual election or appointment, the directors shall meet for the purpose of electing a 
chair, treasurer and clerk to serve for the ensuing year and until their successors are 
appointed and qualified. The directors from time to time may choose and employ and fix 
the compensation of any other necessary officers and agents, who serve at the pleasure of 
the directors. The treasurer shall furnish bond in the sum and with sureties approved by 
the directors. The airport authority shall pay the cost of the bond. 
The directors may adopt and establish bylaws consistent with the laws of this State and 
necessary for the convenience and the proper management of the affairs of the airport 
authority and perform other acts within the powers delegated by law to the directors. 
The directors must be sworn to the faithful performances of their duties, including the 
duties of a member who serves as clerk or clerk pro tern. The directors shall publish an 
annual report that includes a report of the treasurer. 
The directors shall appoint and fix the salary of an airport manager who may not be a 
director. The airport manager has such power and authority as the directors in their 
bylaws or by resolution specify and delegate to the airport manager. Subject to approval 
of or authorization from the directors, the airport manager may appoint any other 
employees necessary to carry out the corporate purposes of the airport authority and may 
fix their salaries. 
Business of the airport authority must be conducted in accordance with the applicable 
provisions of the freedom of access laws, Title 1, sections 401 to 412. 
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6. Decisions of the board; conflict of interest. All decisions of the board of 
directors must be made by a majority of those present and voting, except that a vote to 
approve the issuing of any bond, note or other evidence of indebtedness payable within a 
period of more than 12 months after the date of issuance must be approved by a majority 
of the entire appointed board. A quorum of the board of directors consists of the total 
number of authorized directors divided by 2 and, if necessary to obtain a whole number, 
the resulting number rounded up to the next whole number. Directors are subject to the 
conflict of interest provisions of Title 30-A, section 2605. 
7. Compensation. The directors of an airport authority receive compensation as 
recommended by the directors and approved by a majority vote of the municipal officers 
of municipalities located in whole or in part within the charter territory. Certification of 
the vote must be recorded with the Secretary of State and recorded in the bylaws. 
8. Retirement. Directors are not eligible to become members of the Maine Public 
Employees Retirement System as a result of their selection as directors. 
9. Expenses. The directors may obtain an office and incur necessary expenses. 
§175. Airport authority; general powers; FAA 
Except as otherwise provided by law, for the purposes of its incorporation, an airport 
authority may own, construct, manage, maintain, enhance, expand or otherwise operate 
an airport and provide air transportation services. 
1. Subject to applicable laws. All powers of an airport authority must be exercised 
in accordance with applicable federal and state laws and rules, including but not limited 
to FAA regulations, the provisions of this Title and the rules of the commissioner. 
2. Required approvals. Before exercising any powers as an airport authority, an 
airport authority must obtain and possess all necessary written approvals from the 
commissioner and the FAA. 
§176. Authority to acquire property; public purpose 
To the extent necessary for purposes of incorporation, an airport authority may take 
and hold any interest in real estate for an airport or landing field or for the expansion of 
an airport or landing field and may acquire air rights and easements over private property 
adjoining such airports and landing fields in order to provide unobstructed air space and 
safe approaches for the landing and taking off of aircraft using those airports and landing 
fields, to place and maintain suitable marks and lights for the safe operation of those 
airports and landing fields and to prevent any use of adjoining land that would hinder the 
proper development or use of those airports and landing fields. An airport authority may 
alter, extend or discontinue any such use of real estate. 
1. Purchase or lease. An airport authority may take and hold an interest in real 
estate by gift, purchase, lease or other means. 
2. 
Eminent domain. 
For purposes of its incorporation, as a matter of public 
exigency, an airport authority may exercise the right of eminent domain in accordance 
with section 177 to acquire any interest in real estate, including land outside the airport 
authority'S charter territory, except that an airport authority may not take an interest in 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" A 
"to S.P. 191, L.D. 599 
real estate located outside its charter territory without first obtaining the written consent 
of the municipal officers of the municipality in which that real estate is located. 
A. No property rights or easements of a public utility may be taken under this 
subsection without the approval of the Public Utilities Commission after hearing and 
upon such notice to the public utility affected by the taking as the commission may 
order. 
3. Public purpose. Any real estate or interest in real estate lawfully acquired, 
owned, leased, controlled or occupied by an airport authority for the purposes of its 
incorporation is declared to be acquired, owned, leased, controlled or occupied for public 
uses. 
§177. Procedure in exercise of right of eminent domain 
The right of eminent domain granted in section 176 may be exercised only after 
complying with the following procedures. 
1. Notice. The airport authority shall provide notice as provided in this subsection. 
A. The owner or owners of record must be notified under this subsection of: 
(1) The determination of the directors that they will exercise the right of eminent 
domain; 
(2) A description and scale map of the land or easement to be taken; 
(3) The final amount offered for the land or easement to be taken, based on the 
fair value, as estimated by the airport authority; and 
(4) The time and place of the hearing provided in subsection 2. 
B. Notice under this subsection may be made: 
(1) By personal service in hand by an officer duly qualified to serve civil process 
in this State; or 
(2) By certified mail, return receipt requested, to the owner's last known address. 
C. If the owner or owners are not known or if they cannot be notified by personal 
service or certified mail, notice under this subsection may be given by publication in 
the same manner as provided in subsection 2. 
D. 
Notice under this subsection must be made to any tenants in the same manner as 
for the owner. 
2. Hearing. The board of directors shall hold a public hearing on the advisability of 
the proposed exercise of the right of eminent domain under this section. Notice of the 
hearing must be made by publication in a newspaper of general circulation in the area of 
the taking and must be given once a week for 2 successive weeks, the last publication to 
be at least 2 weeks prior to the time appointed for the hearing. The hearing notice must 
include the time and place of the hearing, a description of the land or easement taken and 
the names of the owners, if known. 
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to S.P. 191, L.D. 599 
3. Proceedings. An airport authority, in exercising the right of eminent domain 
conferred upon it by section 176, shall file in the office of the county commissioners of 
the county in which the property to be taken is located and cause to be recorded in the 
registry of deeds in that county plans of the location of all lands, real estate, easements or 
interest therein, and rights to be taken, with an appropriate description and the names of 
the owners, if known. 
A. Entry may not be made on any private lands, except to make surveys, until title 
has vested in the airport authority under this section. 
B. 
When for any reason the airport authority fails to acquire property that it is 
authorized to take and that is described pursuant to this subsection, or if the location 
so recorded is defective and uncertain, the airport authority shall correct and perfect 
the description of the location and file a new description. In such a case, the airport 
authority is liable in damages only for property for which the owner had not 
previously been paid, to be assessed as of the time of the original taking, and the 
airport authority is not liable for any acts that would have been justified if the original 
taking had been lawful. 
4. Appeal. If any person sustaining damages by any taking by an airport authority 
under section 176 does not agree with the airport authority upon the sum to be paid for 
the property, either party, upon petition to the county commissioners of the county in 
which the property is located, may have the damages assessed by the county 
commissioners. The procedure and all subsequent proceedings and rights of appeal are 
according and subject to the same restrictions, conditions and limitations as are or may be 
prescribed by law in the case of damages by the laying out of highways by the county 
commissioners, except: 
A. Title to the lands, real estate, easements or interests therein and other property and 
rights to be taken do not vest in the airport authority under this section until payment 
to the owner of the amount awarded or, if such payment is refused upon tender, until 
tender of the amount is made to the treasurer of the county in which the lands and 
interests are located, for escrow at interest for the benefit of the owner pending final 
determination of the amount to which the owner is entitled; and 
B. In the event of an appeal of the amount awarded as damages for a taking under 
this section: 
(1) The petition for assessment of damages must be filed with the clerk of the 
county commissioners, by either party, within 30 days following the filing and 
recording of plans of the location of all the property, facilities and rights taken; 
and 
(2) If the return of the county commissioners has not been made within 120 days 
following the filing of the petition for assessment, the county commissioners are 
conclusively presumed to have confirmed the award of damages by the airport 
authority and either party may, within 30 days following that l20-day period, 
appeal the amount of the damages awarded by the airport authority to the 
Superior Court. 
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COMMITTEE AMENDMENT "A" to S.P. 191, L.D. 599 
§178. Make and assume contracts 
An airport authority, through its board of directors, in order to carry out the purposes 
of its incorporation, may contract with persons, governmental entities, utilities or 
corporations. 
§179. Receive government aid; borrow money; issue bonds and notes 
1. Authorization of bonds. An airport authority, through its board of directors, may 
issue, in accordance with section 180, bonds, notes or other evidences of indebtedness of 
the airport authority for any of its corporate purposes, including, but not limited to: 
A. Paying and refunding its indebtedness; 
B. 
Paying any necessary expenses and liabilities incurred under this chapter, 
including organizational and other necessary expenses and liabilities, whether 
incurred by the airport authority or any founding entity or any municipality therein or 
any person residing in unorganized territory encompassed by the airport authority. 
The airport authority is authorized to reimburse any founding entity or any 
municipality therein or any person residing in unorganized territory encompassed by 
the airport authority for any such expenses; 
C. 
Paying costs directly or indirectly associated with necessary expenses and 
liabilities incurred in accordance with the purposes of its incorporation and to cover 
interest payments during the period of construction of capital projects and for such a 
period thereafter as the directors may determine; 
D. Providing reserves for debt service, repairs and replacements or other capital or 
current expenses that may be required by a trust agreement or resolution securing 
bonds; and 
E. Any combination of these purposes. 
2. Bonds. Bonds may be issued by an airport authority as general obligations of the 
airport authority or as special obligations payable solely from particular funds. The 
principal of, premium, if any, and interest on all bonds is payable solely from the funds 
provided for that purpose from revenues. For purposes of this section, "revenues" means 
the proceeds of bonds and all revenues, rates, fees, charges, assessments, rents and other 
receipts derived by the airport authority in accordance with the purposes of its 
incorporation, including, but not limited to, investment earnings and the proceeds of 
insurance, condemnation, sale or other disposition of properties. 
A. 
All bonds, notes and other evidences of indebtedness issued by an airport 
authority in accordance with this section are legal obligations of the airport authority 
within the meaning of Title 30-A, section 5701. 
B. Bonds may be issued under this section without obtaining the consent of any 
commission, board, bureau or agency of the State or of any municipality 
encompassed by the airport authority and without any other proceedings or the 
happening of other conditions or things other than those proceedings, conditions or 
things that are specifically required by the FAA, this Title, rules ofthe commissioner 
or the airport authority'S charter. 
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c. Bonds issued under this section do not constitute a debt or liability of the State or 
of any municipality encompassed by the airport authority or a pledge of the faith and 
credit ofthe State or any such municipality, but the bonds are payable solely from the 
funds provided for that purpose, and a statement to that effect must be recited on the 
face of the bonds. 
3. Notes. An airport authority may provide by resolution of its board of directors for 
the issuance from time to time of notes in anticipation of bonds authorized under this 
section and of notes in anticipation of the revenues to be collected or received in any year 
or in anticipation of the receipt of federal or state grants or other aid. The issue of these 
notes is governed by the applicable provisions of this chapter relating to the issue of 
bonds, as long as notes in anticipation of revenue mature no later than one year from their 
respective dates and notes issued in anticipation of federal or state grants or other aid and 
renewals thereof mature no later than the expected date of receipt of those grants or aid. 
Notes in anticipation of revenue issued to mature less than one year from their dates may 
be renewed from time to time by the issue of other notes, as long as the period from the 
date of an original note to the maturity of any note issued to renew or pay the same or the 
interest thereon does not exceed one year. 
4. Grants and loans. An airport authority may enter into agreements with the State 
or the United States, or any agency of either, or any municipality, corporation, 
commission or board authorized to grant or loan money to or otherwise assist in the 
financing of projects of the type the airport authority is authorized to carry out and may 
accept grants and borrow money from any such government, agency, municipality, 
corporation, commission or board as may be necessary or desirable to accomplish the 
purposes of the airport authority. 
5. Maturity; interest; form; temporary bonds. The bonds issued under this 
section must be dated and must mature at such time or times and bear interest at such rate 
or rates as may be determined by the board of directors and may be made redeemable 
before maturity, at the option of the airport authority, at such price or prices and under 
such terms and conditions as may be fixed by the board of directors prior to the issuance 
of the bonds. 
A. The board of directors shall determine the form of the bonds issued under this 
section, including any interest coupons to be attached thereto, and the manner of 
execution of the bonds and shall fix the denomination or denominations of the bonds 
and the place or places of payment of principal and interest, which may be at any 
bank or trust company within or outside the State. The bonds may be issued in 
coupon or registered form, or both, as the board of directors may determine and 
provision may be made for the registration of any coupon bonds as to principal alone 
and as to both principal and interest and for the reconversion into coupon bonds of 
any bonds registered as to both principal and interest. 
B. The board of directors may sell bonds issued under this section in such manner, 
either at public or private sale, and for such price as they may determine to be for the 
best interests of the airport authority. The proceeds of the bonds of each issue must be 
used solely for the purpose for which those bonds have been authorized and must be 
disbursed in such manner and under such restrictions, if any, as the board of directors 
may provide in the resolution authorizing the issuance of the bonds or in the trust 
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agreement securing the bonds. The resolution providing for the issuance of bonds and 
any trust agreement securing the bonds may contain such limitations upon the 
issuance of additional bonds as the board of directors may determine to be proper, 
and these additional bonds must be issued under such restrictions and limitations as 
may be prescribed by that resolution or trust agreement. Prior to the preparation of 
definitive bonds, the board of directors may, under like restrictions, issue interim 
receipts or temporary bonds, with or without coupons, exchangeable for definitive 
bonds when those bonds are executed and are available for delivery. The board of 
directors may provide for the replacement of any bond that is mutilated, destroyed or 
lost. 
C. Bonds issued under this section must be executed in the name of the airport 
authority by the manual or facsimile signature of such officer or officers as may be 
authorized in the resolution to execute the bonds, but at least one signature on each 
bond must be a manual signature. Coupons, if any, attached to the bonds must be 
executed with the facsimile signature of the officer or officers of the airport authority 
designated in the resolution. In case any officer whose signature or a facsimile of 
whose si gnature appears on any bonds or coupons, ceases to be an officer before the 
delivery ofthe bonds, the signature or its facsimile is nevertheless valid and sufficient 
for all purposes as if the officer had remained in office until the delivery. 
D. Notwithstanding any provision of this chapter or any recitals in any bonds issued 
under this section, all bonds issued under this section are negotiable instruments 
under the laws of this State. 
6. Pledges and covenants; trust agreement. In the discretion of the board of 
directors of any airport authority, each issue of bonds under this section may be secured 
by a trust agreement by and between the airport authority and a corporate trustee, which 
may be any trust company within or outside the State. 
A. The resolution authorizing the issuance of the bonds under this section, or the 
trust agreement securing those bonds, may pledge or assign, in whole or in part, the 
revenues and other money held or to be received by the airport authority and any 
accounts and contract or other rights to receive the same, whether then existing or 
thereafter coming into existence and whether then held or thereafter acquired by the 
airport authority, and the proceeds thereof, but may not conveyor mortgage any 
properties of the airport authority. The resolution may also contain such provisions 
for protecting and enforcing the rights and remedies of the bondholders as may be 
reasonable and proper and not in violation of law, including, but not limited to, 
covenants setting forth the duties of the airport authority and the board of directors in 
relation to the acquisition, construction, reconstruction, improvement, repair, 
maintenance, operation and insurance of its airport or any of its other properties; the 
fixing and revising of rates, fees and charges; the application of the proceeds of 
bonds; the custody, safeguarding and application of revenues, defining defaults and 
providing for remedies in the event thereof, which may include the acceleration of 
maturities; the establishment of reserves; and the making and amending of contracts. 
The resolution or trust agreement may set forth the rights and remedies of the 
bondholders and of the trustee, if any, and may restrict the individual right of action 
by bondholders as is customary in trust agreements or trust indentures securing bonds 
or debentures of corporations. In addition, the resolution or trust agreement may 
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to S.P. 191, L.D. 599 
contain such other provisions as the board of directors may determine reasonable and 
proper for the security of the bondholders. All expenses incurred in carrying out the 
resolution or trust agreement may be treated as a part of the cost of operation. The 
pledge by any resolution or trust agreement is valid and binding and continuously 
perfected for the purposes of the Uniform Commercial Code from the time when the 
pledge is made. All revenues, money, rights and proceeds so pledged and thereafter 
received by the airport authority are immediately subject to the lien of the pledge 
without any physical delivery or segregation or further action under the Uniform 
Commercial Code or otherwise, and the lien of the pledge is valid and binding against 
all parties having claims of any kind in tort, contract or otherwise against the airport 
authority irrespective of whether those parties have notice of the lien. 
B. The resolution authorizing the issuance of bonds under this section, or any trust 
agreement securing those bonds, may provide that all or a sufficient amount of 
revenues, after providing for the payment of the cost of repair, maintenance and 
operation and reserves for those costs as may be provided in the resolution or trust 
agreement, must be set aside at such regular intervals as may be provided in the 
resolution or trust agreement and deposited in the credit of a fund for the payment of 
the interest on and the principal of bonds issued under this chapter as the interest and 
principal become due and the redemption price or purchase price of bonds retired by 
call or purchase. The use and disposition of money to the credit of the fund are 
subject to any regulations provided in the resolution authorizing the issuance of the 
bonds or in the trust agreement securing the bonds and, except as may otherwise be 
provided in the resolution or trust agreement, the fund is for the benefit of all bonds 
without distinction or priority of one over another. 
7. Trust funds. Notwithstanding any other law, all funds received pursuant to the 
authority of this chapter are trust funds and must be held and applied solely as provided in 
this chapter or the airport authority'S charter. The resolution authorizing the issuance of 
bonds or the trust agreement securing the bonds must provide that any officer to whom, 
or bank, trust company or other fiscal agent to which, that money is paid shall act as 
trustee of that money and shall hold and apply the same for the purposes hereof, subject 
to any regulations as may be provided in the resolution or trust agreement or as may be 
required by this chapter. 
8. Remedies. Any holder of bonds issued under this section or of any of the coupons 
appertaining thereto, and the trustee under any trust agreement, except to the extent the 
rights given may be restricted by the resolution authorizing the issuance of those bonds or 
trust agreement, may, either at law or in equity, by suit, action, mandamus or other 
proceeding, including proceedings for the appointment of a receiver to take possession 
and control of the properties of the airport authority, protect and enforce all rights under 
the laws of the State, including but not limited to those granted under this chapter, or 
under such resolution or trust agreement, and may enforce and compel the performance of 
all duties required by this chapter or by such resolution or trust agreement to be 
performed by the airport authority or by any officer thereof, including but not limited to 
the fixing, charging and collecting of rates, fees, payments or charges relating to the 
services and facilities furnished by the airport authority. 
9. Refunding bonds. Any airport authority formed under this chapter by resolution 
of its board of directors may issue refunding bonds for the purpose of paying any of its 
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COMMITTEE AMENDMENT "A "to S.P. 191, L.D. 599 
bonds at maturity or upon acceleration or redemption. The refunding bonds may be issued 
at such time prior to the maturity or redemption of the refunded bonds as the board of 
directors determines to be in the public interest. The refunding bonds may be issued in 
sufficient amounts to payor provide the principal of the bonds being refunded, together 
with any redemption premium thereon, any interest accrued or to accrue to the date of 
payment of such bonds, the expenses of issue of the refunding bonds, the expenses of 
redeeming the bonds being refunded and such reserves for debt service or other capital or 
current expenses from the proceeds of such refunding bonds as may be required by a trust 
agreement or resolution securing bonds. The issue of refunding bonds, the maturities and 
other details of and security for the refunding bonds, the rights of the holders of the 
refunding bonds and the rights, duties and obligations of the airport authority in respect of 
the refunding bonds is governed by the applicable provisions of this chapter relating to 
the issue of bonds other than refunding bonds. 
10. Tax exemption. All bonds, notes and other evidences of indebtedness issued by 
the airport authority under this section are legal investments for savings banks in this 
State and are exempt from state income tax. 
11. Bonds are legal investments. Bonds and notes issued by any airport authority 
under this section are securities in which all public officers and public bodies of the State 
and its political subdivisions, all insurance companies and associations and other persons 
carrying on an insurance business, trust companies, banks, bankers, banking associations, 
savings banks and savings associations, including savings and loan associations, credit 
unions, building and loan associations, investment companies, executors, administrators, 
directors and other fiduciaries, pension, profit-sharing, retirement funds and other persons 
carrying on a banking business, and all other persons who are now or may hereafter be 
authorized to invest in bonds or other obligations of the State may properly and legally 
invest funds, including capital in their control or belonging to them. The bonds and notes 
are securities that may properly and legally be deposited with and received by any state, 
municipal or public officer or any agency or political subdivision of the State for any 
purpose for which the deposit of bonds or other obligations of the State is now or may 
hereafter be authorized by law. 
§180. Debt limit and approval of voters within airport authority territory 
Prior to issuing on behalf of an airport authority under section 179 any bond, note or 
other evidence of indebtedness payable within a period of more than 12 months after the 
date of issuance, the board of directors shall propose a debt limit for the airport authority 
that the board must submit for approval in a referendum in the charter territory of the 
airport authority. The referendum must be called, advertised and conducted according to 
the law relating to municipal elections, except that the registrar of voters is not required to 
prepare or the clerk to post a new list of voters. The voting place for the referendum may 
be outside the charter territory of the airport authority if the usual voting place for persons 
located within the charter territory is located outside the charter territory. For the purpose 
of registering voters, the registrar of voters must be in session on the regular work day 
preceding the election. The question presented must conform to one of the following 
forms: 
For establishment of an initial debt limit: "Do you favor establishing the debt limit of 
the (insert name of airport authority) at (insert amount)?"; or 
COMMITTEE AMENDMENT 
'~." 
COMMITTEE AMENDMENT .. A 
"to S.P. 191, L.D. 599 
For amendment of an existing debt limit: "Do you favor changing the debt limit of 
the (insert name of airport authority) from (insert current debt limit) to (insert proposed 
debt limit)?". 
The voters shall indicate by a cross or check mark placed against the word "Yes" or 
"No" their opinion on the question. 
The results must be declared by the board of directors and entered upon the airport 
authority's records. Due certificate of the results must be filed by the clerk with the 
Secretary of State. 
A debt limit proposal becomes effective upon its acceptance by a majority of the 
legal voters within the charter territory voting at the referendum. Failure of approval by 
the majority of voters voting at the referendum does not prevent subsequent referenda 
from being held for the same purpose. The costs of referenda are borne by the airport 
authority. 
The board of directors may not issue any bond, note or other evidence of 
indebtedness payable within a period of more than 12 months after the date of issuance 
unless the total amount of the debt issued by the directors is no more than an amount 
approved by referendum under this section. 
§181. Fees and assessments 
An airport authority, through its board of directors, may impose any user fees, rates 
or charges for the use of its airport or air transportation services and may, by agreement 
with the municipal officers of any municipality located in whole or in part within the 
charter territory of the airport authority, establish payments from the municipality to 
support the airport authority. 
§182. Tax exempt 
An airport authority is a public municipal corporation within the meaning of Title 36, 
section 651, and the property of the authority is exempt from taxation to the extent 
provided in that section. 
Sec. 2. 14 MRSA §8102, sub-§3, as amended by PL 2005, c. 399, §1, is further 
amended to read: 
3. Political subdivision. "Political subdivision" means any city, town, plantation, 
county, administrative entity or instrumentality created pursuant to Title 30-A, chapters 
and 119, incorporated fire fightiRg fire-fighting unit that is organized under Title 13-
B and is officially recognized by any authority created by statute, quasi-municipal 
corporation and special purpose district, including, but not limited to, any water district, 
sanitary district, hospital district, school district of any type, an airport authority 
established pursuant to Title 6, chapter 10, any volunteer fire association as defined in 
Title 30-A, section 3151, a transit district as defined in Title 30-A, section 3501, 
subsection 1, a regional transportation corporation as defined in Title 30-A, section 3501, 
subsection 2, and any emergency medical service.' 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A " 
to S.P. 191, L.D. 599 
SUMMARY 
This amendment replaces the bill and creates an airport authority enabling act to 
facilitate the creation of airport authorities. The enabling act specifies the necessary 
powers and authority of an airport authority, other than those that will be specific to a 
particular airport authority. The enabling act provides a model for the creation of an 
airport authority but does not require an airport to be created, operated or managed by an 
airport authority established pursuant to the enabling act. An airport authority created 
under this enabling act has the following characteristics, powers, duties and authority. 
I. An airport authority is a quasi-municipal entity and as such: 
lOA. Is exempt from taxation as are other quasi-municipal entities pursuant to the 
II 
Maine Revised Statutes, Title 36, section 651; 
B. 
Its debt liability is secured in the same manner as for other quasi-municipal 
entities pursuant to Title 30-A, section 5701; 
C. Its tort liability is governed by the Maine Tort Claims Act in the same manner as 
for other quasi-municipal entities; 
D. Is subject to Maine's freedom of access laws, Title 1, sections 401 to 412; and 
E. Its directors are subject to the conflict of interest provisions of Title 30-A, section 
2605. 
2. An airport authority is authorized to own, construct, manage, maintain, enhance, 
expand or otherwise operate an airport and provide air transportation services. 
3. An airport authority is governed by a board of directors who are authorized to 
appoint officers and hire employees, including an airport manager, to operate and manage 
an airport and provide air transportation service. 
4. An airport authority is subject to all applicable federal and state laws and rules, 
including Federal Aviation Administration regulations, the provisions of Title 6 and the 
rules of the Commissioner of Transportation. An airport authority may not exercise its 
powers until it has obtained all necessary written approvals from the Federal Aviation 
Administration and the Department of Transportation. 
5. An airport authority, in a manner similar to other quasi-municipal entities, has the 
power to: 
A. 
Take property for its public purposes by eminent domain, which must be 
exercised in accordance with certain specified procedures; 
B. Make and assume contracts; 
C. Receive government aid, borrow money and issue bonds and notes. As a public 
entity, its bonds are exempt from state income tax. It may not issue debt payable 
more than 12 months after date of issuance until it has established a debt limit 
approved in a local referendum. The debt may not exceed the established debt limit, 
which may be increased if approved through subsequent referenda; and 
D. Set fees, rates or charges for the use of its airport and services and, by agreement 
with the municipal officers of any municipality located in whole or in part within the 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A" to S.P. 191, L.D. 599 
airport authority's charter territory, establish payments from the municipality to 
support the airport authority. 
6. An airport authority may have other powers, authority or duties as specified in its 
charter. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Fiscal Detail and Notes 
Approved: 03/1 0/08 flvac:.. 
LD599 
LR 916(02) 
An Act To Create an Airport Authority 
Fiscal Note for Bill as Amended by Committee Amendment "A " 
Committee: Transportation 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - Highway Fund 
This legislation facilitates the creation of airport authorities to operate airports and provide air transportation services. 
It defines an airport authority as a quasi-municipal entity, but does not require an airport to be created, operated or 
managed by an airport authority. Additional costs to the Department of Transportation associated with any potential 
participation in, or support of, the creation of an airport authority would be absorbed within existing budgeted 
resources. 
LR0916(02) - Fiscal Note - Page 1 of 1