An Act To Create Transportation Corridor Districts for the Purpose of Funding Transportation and Transit Services
Maine Legislature, Session 129, LD 1266
Committee: Transportation
Sponsors: CHIPMAN, BRYANT, DIAMOND, COLLINGS, SHEATS, WHITE
Amends: 30-A MRSA §3501, 30-A MRSA §3502-A, 30-A MRSA §3503, 30-A MRSA §3504, 30-A MRSA §3512

Legislative Document
No. 1266
S.P. 386
In Senate, March 14, 2019
An Act To Create Transportation Corridor Districts for the Purpose 
of Funding Transportation and Transit Services
Reference to the Committee on Transportation suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator CHIPMAN of Cumberland.
Cosponsored by Representative BRYANT of Windham and
Senator: DIAMOND of Cumberland, Representatives: COLLINGS of Portland, McLEAN of 
Gorham, SHEATS of Auburn, WHITE of Waterville.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  30-A MRSA §3501, sub-§1, ¶¶C and D, as enacted by PL 1987, c. 737, 
Pt. A, §2 and Pt. C, §106 and amended by PL 1989, c. 6; c. 9, §2; and c. 104, Pt. C, §§8 
and 10, are further amended to read:
C.  A municipality voting to provide mass transportation service without the creation 
of a district; and
D.  A regional transportation corporation, except that sections 3510, 3512 and 3517 
do not apply to a regional transportation corporation.; and
Sec. 2.  30-A MRSA §3501, sub-§1, ¶E is enacted to read:
E.  A transportation corridor district, except that section 3502, section 3505, section 
3516, subsections 2 and 3 and section 3517 do not apply to a transportation corridor 
district.
Sec. 3.  30-A MRSA §3501, sub-§4 is enacted to read:
4.  Transportation corridor district.  "Transportation corridor district" means a 
specified area contiguous with a transportation route or facility that has been formed by a 
municipality or municipalities and approved by the voters as provided under section 
3502-A.
Sec. 4.  30-A MRSA §3502-A is enacted to read:
§3502-A.  Formation of a transportation corridor district; powers
1.  Formation.  A municipality may, in accordance with the requirements of this 
section, by itself or in cooperation with one or more other municipalities, form a 
transportation corridor district for the purposes of funding public transportation and 
serving accessibility needs, including passenger rail, ferry, bus, bicycle and pedestrian 
facilities and routes, and promoting economic development at transportation station areas 
and in downtown areas.  The municipality or group of municipalities shall select the 
borders of the transportation corridor district. The transportation corridor district may 
include the entire municipality or group of municipalities or a portion of the municipality 
or portions of the municipalities, but must encompass an existing or proposed 
transportation corridor.
2.  Notice and hearing.  Before forming a transportation corridor district, a 
municipality or group of municipalities shall hold at least one public hearing on the 
proposed transportation corridor district in the municipality or in each of the participating 
municipalities.  Notice of the hearing must be published at least 10 days before the 
hearing in a newspaper of general circulation within the municipality or municipalities 
and on each participating municipality's publicly accessible website if the municipality 
has a publicly accessible website.  The municipality or group of municipalities shall 
provide notification by first-class mail of the public hearing to all owners of property 
within the borders of the proposed transportation corridor district. The municipality or 
group of municipalities shall provide notification of the public hearing to the Department 
of Transportation and to adjoining municipalities of the proposed transportation corridor 
district.  After adjoining municipalities are notified of the public hearing, but before voter 
approval under subsection 3, the municipality or group of municipalities may coordinate 
with adjoining municipalities along the transportation corridor to change the borders.
3.  Voter approval.  The formation of a transportation corridor district must be 
approved by a voter referendum in each participating municipality.
4.  General powers; area of service.  A transportation corridor district formed under 
this section is a body politic and corporate and may sue, be sued, plead and be impleaded, 
adopt a name, adopt and alter a common seal and do all things necessary to furnish 
transportation within that district, including charter service, for public purposes in the 
interest of the health, safety, comfort and convenience of the inhabitants of the 
municipality or municipalities composing the district.
5.  Incidental rights.  All incidental powers, rights and privileges necessary to 
accomplish the main objective set forth in this chapter are granted to a transportation 
corridor district formed under this section. Such a district is subject to the jurisdiction of 
the Public Utilities Commission only to the extent provided in this chapter.
Sec. 5.  30-A MRSA §3503, as enacted by PL 1987, c. 737, Pt. A, §2 and Pt. C, 
§106 and amended by PL 1989, c. 6; c. 9, §2; and c. 104, Pt. C, §§8 and 10, is repealed 
and the following enacted in its place:
§3503.  Addition to or modification of a district
1.  Application for membership to a district.  A municipality that is contiguous to 
any other municipality authorized to provide transportation services under this chapter or 
contiguous to any municipality that is a member of a transit district may apply to the 
transit district for membership, and the board of directors may accept or refuse the 
application for membership.
2.  Modification of borders of a transportation corridor district.  The board of 
directors, with approval from all municipalities in the transportation corridor district, may 
change the borders of a transportation corridor district.
3.  Joining a transportation corridor district.  Notwithstanding anything to the 
contrary in subsection 1, a municipality with an existing or proposed transportation 
corridor connecting to an established transportation corridor district may apply to join the 
transportation corridor district. The municipality applying to join an established 
transportation corridor district must receive approval by a majority of voters within the 
municipality. The board of directors of the established transportation corridor district, 
with approval from all municipalities in the district, may approve the municipality's 
application by a majority vote.
Sec. 6.  30-A MRSA §3504, first ¶, as enacted by PL 1987, c. 737, Pt. A, §2 and 
Pt. C, §106 and amended by PL 1989, c. 6; c. 9, §2; and c. 104, Pt. C, §§8 and 10, is 
further amended to read:
The affairs of a district formed under section 3502 shall or 3502-A must be managed 
by a board of directors chosen from the inhabitants of the municipality or municipalities 
comprising composing the district.
Sec. 7.  30-A MRSA §3504, sub-§2, as enacted by PL 1987, c. 737, Pt. A, §2 and 
Pt. C, §106 and amended by PL 1989, c. 6; c. 9, §2; and c. 104, Pt. C, §§8 and 10, is 
further amended to read:
2.  Appointment; terms; quorum.  The municipal officers of each municipality 
shall appoint the directors of a transit district.  Initially, the directors' terms of office shall 
must be determined by lot at their first organizational meeting as follows: One-third of 
those appointed shall serve for 3 years, 1/3 for 2 years and the remaining number for one 
year.  All subsequent appointments are for a term of 3 years.  Directors shall serve until 
their successors have been appointed, with vacancies being filled for the unexpired 
portion of the respective terms.
A majority of the directors constitutes a quorum for the transaction of business.  Action 
taken by 2/3 of the directors present at any meeting at which a quorum is in attendance is 
considered to be the action of the full board of directors.
Sec. 8.  30-A MRSA §3512, sub-§2, as enacted by PL 1987, c. 737, Pt. A, §2 and 
Pt. C, §106 and amended by PL 1989, c. 6; c. 9, §2; and c. 104, Pt. C, §§8 and 10, is 
further amended to read:
2.  Notes and securities authorized.  For accomplishing the purposes of this chapter 
and for paying any indebtedness and any necessary expenses and liabilities incurred for 
that purpose, including organizational and other necessary expenses, the a district, except 
for a transportation corridor district, by vote of its board of directors, or a transportation 
corridor district, if approved by voter referendum in each municipality participating in the 
transportation corridor district, may:
A.  Borrow money temporarily and issue its negotiable notes for that money; and
B.  From time to time, issue securities of the district in one series or in separate series 
in such amount or amounts, bearing interest at such rate or rates and having such 
terms and provisions as the board of directors determines.  These securities may be 
issued with or without provision for calling the securities before maturity and, if 
callable, may be made callable at par or at any premium determined by the board of 
directors.  The board of directors may from time to time issue its securities in one 
series or in separate series for the purpose of paying, redeeming or refunding 
outstanding securities.
SUMMARY
This bill provides for the formation of transportation corridor districts within the 
current law relating to transit districts and regional transportation corporations.  The bill 
provides that a municipality may, by itself or in cooperation with one or more other 
municipalities, form a transportation corridor district for the purposes of providing an 
environment to fund public transportation and serve accessibility needs, including 
passenger rail, ferry, bus, bicycle and pedestrian facilities and routes, and promoting 
economic development at transportation station areas and in downtown areas.
The bill requires a municipality or group of municipalities to select the borders of the 
transportation corridor district.  The bill requires that the formation of a transportation 
corridor district be approved by voter referendum in each participating municipality.  The 
bill authorizes a district's board of directors, with approval from all municipalities in the 
district, to change the borders of the district.  The bill also provides that a transportation 
corridor district, if approved by voter referendum in each municipality participating in the 
district, may borrow money temporarily and issue its negotiable notes for that money and 
issue securities of the district.