TITLE III
TOWNS, CITIES, VILLAGE DISTRICTS, AND UNINCORPORATED PLACES

Chapter 38-A
MUNICIPAL TRANSIT AUTHORITY

Section 38-A:1

    38-A:1 Authority Granted. – Towns and cities are hereby authorized and empowered to incorporate a public authority for the purpose of acquiring, owning, and operating, or causing to be operated, a mass transportation system within such city or town. As used herein, the term "mass transportation system" means all real and personal property, of whatever nature, and rights used or useful for transportation of passengers for hire, except taxicabs and airport limousines.

Source. 1963, 278:1, eff. Sept. 1, 1963.

Section 38-A:2

    38-A:2 Articles of Incorporation. – The incorporation of any such authority shall be accomplished by adoption of articles of incorporation by the city council, aldermen, town council, or selectmen, in the same manner and by the same procedure as such city or town enacts ordinances, except that no such articles of incorporation shall take effect until after a public hearing in relation thereto. Notice of the time and place of such hearing shall be published in a paper of general circulation in such town or city at least 30 days before such articles of incorporation shall become effective. Within 5 days after the effective date of such articles of incorporation, one printed copy thereof, certified as a "true copy" by the town or city clerk of such town or city, shall be filed with the secretary of state. The authority shall become operative at the time provided in the articles of incorporation.

Source. 1963, 278:1, eff. Sept. 1, 1963.

Section 38-A:3

    38-A:3 Contents. – The articles of incorporation shall state the name of the authority, the purposes for which it is created, the power, duties, and limitations of the authority and its officers, the method of electing its governing body and officers, and any other matters which such city or town council, aldermen, or selectmen shall deem advisable, all of which shall be subject to the provisions of the constitution of the state of New Hampshire and of this chapter.

Source. 1963, 278:1, eff. Sept. 1, 1963.

Section 38-A:4

    38-A:4 Governing and Administrative Bodies of the Authority. – The authority shall be composed of 5 members who shall be appointed by the board of aldermen, city council, or selectmen in such town or city as follows: One member to serve for a period of 5 years, one member to serve for a period of 4 years, one member to serve for a period of 3 years, one member to serve for a period of 2 years, and one member to serve for a period of one year. Each member shall serve for the term for which he is appointed and until his successor has been appointed and qualified. Members shall be eligible for reappointment. Beginning with the first appointment made due to expiration of term members shall be appointed to serve for a period of 5 years. Vacancies, whether occurring by expiration of term, by resignation, or for other cause shall be filled by the appropriate board of aldermen, city council, or board of selectmen. Appointment shall be for the unexpired term when made to fill vacancies created by cause other than expiration of term. If the officials who have the power and duty of appointment shall fail to fill any vacancy within 30 days following the creation thereof, then such vacancy may be filled by the remaining members of the authority.

Source. 1963, 278:1, eff. Sept. 1, 1963.

Section 38-A:5

    38-A:5 Requirements; Compensation. – Each member of the authority shall be, and shall hold office only so long as he is, a resident of and registered voter in the town or city in which the authority is located. Each member of the authority shall be reimbursed for actual necessary traveling and other expenses incurred by him in the performance of his duties, payable exclusively out of funds of the authority available therefor. No member of the authority shall be allowed any other fees, perquisites, or emoluments, reward or compensation for his services as a member of the authority.

Source. 1963, 278:1, eff. Sept. 1, 1963.

Section 38-A:6

    38-A:6 Limitations. – No person shall be eligible for membership who at the time of his appointment to such authority holds any remunerative public office or position or any employment for compensation (except as an independent contractor) with the United States, the state of New Hampshire, or any political subdivision of either.

Source. 1963, 278:1, eff. Sept. 1, 1963.

Section 38-A:7

    38-A:7 Officers. – The authority shall appoint a chairman, who shall be a member of the authority, and shall appoint a secretary and treasurer. The authority may also appoint a vice chairman from its members, said vice chairman to act as chairman in the absence or inability of the chairman. The secretary may be a member of the authority. The treasurer shall not be a member of the authority. The authority may appoint a general manager, to hold office during the pleasure of the authority, and subject to the general control of the authority.

Source. 1963, 278:1, eff. Sept. 1, 1963.

Section 38-A:8

    38-A:8 Bond of Treasurer. – The treasurer shall execute a bond with corporate sureties to be approved by the authority, which bond shall be payable to the authority in whatever penal sum may be directed by the authority conditioned upon the faithful performance of the duties of the office and the payment of all money received by him according to law and the orders of the authority.

Source. 1963, 278:1, eff. Sept. 1, 1963.

Section 38-A:9

    38-A:9 Quorum. – A majority of the members of the authority constitute a quorum for the transaction of business and all action of the authority shall be by a majority vote of its members.

Source. 1963, 278:1, eff. Sept. 1, 1963.

Section 38-A:10

    38-A:10 General Powers and Duties of the Authority. –
I. The authority may adopt a seal to be impressed upon its instruments, and may provide for the impression of such seal by printed or lithographed facsimile thereof. Any executed instrument bearing the seal of the authority shall be prima facie evidence of its execution by the authority and that its execution was duly, regularly, and legally authorized by the authority.
II. The authority may contract with any department or agency of the United States of America or of the state of New Hampshire or with any public corporation upon such terms and conditions as the authority finds is for the authority's best interests.
III. The authority shall have the power to apply for and accept grants and loans from any department or agency of the United States of America to be used for any of the purposes of the authority and to enter into any agreement with such department or agency in relation to such grants or loans; provided that such agreement does not conflict with any of the provisions of any resolution securing the payment of bonds of the authority.
IV. The authority shall, by resolution, make all rules and regulations governing the use, operation, and maintenance of the system and shall determine all routings and change the same whenever it is deemed advisable by the authority; provided, however, that any revenue bond indenture may place limitations and conditions upon the exercise of such powers or any part thereof.
V. The authority shall have the power to lease the system or any part thereof to, or contract for the use of the system or any part thereof by, any operator; provided, however, that any revenue bond indenture may prohibit, limit, or restrict the exercise of such power.
VI. The authority shall have the power to deposit any monies of the authority, in accordance with the provisions of the general laws of the state of New Hampshire governing the deposit of public monies for the city or town in which the authority operates, in such bank or banks in the state of New Hampshire as may be authorized to receive deposits of public funds.
VII. The authority may adopt such rules and regulations as may be necessary to enable it to exercise the powers and perform the duties conferred or imposed upon it by this chapter.
VIII. The authority may sue and be sued in all courts of competent jurisdiction.
IX. The authority may provide for the appointment of or engagement of such officers, attorneys, engineers, consultants, agents, and employees as may be necessary for any purpose of the authority. It may require bonds of any such officers or employees.
X. The authority may issue bonds for the implementation of any project of the authority, including acquisition of property, or the paying off of any debt or obligation of the authority. The authority may issue such types of bonds as may be determined by the members of said authority, including certificates on which principal and interest are payable:
(a) Exclusively from incomes or revenues of the operation of the authority financed with the proceeds of such bonds or together with such proceeds and grants from any instrumentality or other person or corporation in aid of such projects;
(b) Exclusively from income and revenues of certain designated projects; or
(c) From revenues of the authority generally. Any such bond may be additionally secured by mortgage of the system or any part thereof constituting real or personal property of the authority.

Source. 1963, 278:1, eff. Sept. 1, 1963.

Section 38-A:11

    38-A:11 Bonds. – The revenue bonds of the authority shall, upon default in any payment of interest or principal, become a debt of the city or town in which the authority operates. Neither the members of the authority nor any person executing bonds on behalf of the authority shall be personally liable thereon by reason of the issuance thereof. Revenue bonds issued by the authority hereunder shall be authenticated and validated in accordance with the procedure set forth in RSA 33:11, and when validated the judgment of validation shall be final and conclusive with respect to such certificates and against the authority.

Source. 1963, 278:1, eff. Sept. 1, 1963.

Section 38-A:12

    38-A:12 Details. – Bonds of the authority shall be authorized by its resolution and may be issued in one or more series and shall bear such date or dates, mature at such time or times, bear interest at such rate or rates, be in such denomination or denominations, be in such form, either coupon or registered, carry such conversion or registration privileges, have such rank or priority, be executed in such manner, be payable in such medium of payment, at such place or places and be subject to such terms of redemption (with or without premium) as such resolutions, its trust indenture or mortgage may provide. In case any of the members or officers of the authority whose signatures appear on any bond or coupon shall cease to be such members or officers before the delivery of such bonds, such signatures shall nevertheless be valid and sufficient for all purposes. All bonds may be signed on behalf of the authority by, or with the facsimile signatures of, such persons as at the actual date of such execution shall be the proper officers authorized by resolution of the authority to execute said bonds, notwithstanding the fact that on the day said bonds are dated, or on the date of the delivery thereof, any such person shall not have been such officer.

Source. 1963, 278:1, eff. Sept. 1, 1963.

Section 38-A:13

    38-A:13 Obligations. – Obligations of the authority other than certificates shall be payable from general funds of the authority and shall at no time be a charge against any special fund allocated to the payment of bonds except upon payment of current annual maturities and reserves thereof.

Source. 1963, 278:1, eff. Sept. 1, 1963.

Section 38-A:14

    38-A:14 Bonds as Legal Investments. – Notwithstanding any restrictions on investments contained in any laws of this state, the state and all public officers, municipal corporations, political subdivisions, and public bodies, all banks, bankers, trust companies, savings banks and institutions, building and loan associations, savings and loan associations, investment companies, and other persons carrying on a banking business, all insurance companies, insurance associations and other persons carrying on an insurance business and all executors, administrators, guardians, trustees, and other fiduciaries may legally invest any sinking funds, monies or other funds belonging to them or within their control in any bonds or other obligations issued by the authority pursuant to this chapter, when such bonds or other obligations are secured by rentals or other monies to be paid by the United States of America or any department or agency thereof, and such bonds and other obligations shall be authorized security for all public deposits, it being the purpose of this section to authorize any persons, firms, corporations, associations, political subdivisions, bodies and officers, public or private, to use any funds owned or controlled by them, including (but not limited to) sinking, insurance, investment, retirement, compensation, pension and trust funds, and funds held on deposit, for the purchase of any such bonds or other obligations; provided, however, that nothing contained in this section shall be construed as relieving any person, firm, or corporation from any duty of exercising reasonable care in selecting securities.

Source. 1963, 278:1, eff. Sept. 1, 1963.

Section 38-A:15

    38-A:15 Further Powers. – The authority may obligate itself for the payment of bonds and other debts incurred in the furtherance of its public purposes by the state of New Hampshire, or by any county, municipality, political subdivision or public corporation.

Source. 1963, 278:1, eff. Sept. 1, 1963.

Section 38-A:16

    38-A:16 Powers. – The authority shall determine the time, form, and manner of the issuance of its bonds and the specific provisions for, and references to such time, form, and manner heretofore and hereinafter set forth in this chapter are illustrative of its powers and are not in limitation thereof. The authority may designate a bank or trust company, qualified to do business in this state, as a trustee for the authority and the holders of bonds issued hereunder, and may authorize the trustee to act on behalf of the holders of the bonds, or any stated percentage thereof, and to exercise and prosecute on behalf of the holders of the bonds such rights and remedies as may be available to the holders.

Source. 1963, 278:1, eff. Sept. 1, 1963.

Section 38-A:17

    38-A:17 Regulation of Fares by the Authority. – The authority may fix rates, fares, tolls, charges, rents or other charges for the use of the system acquired, constructed, operated, or maintained by the authority and may alter, change, or modify the same, all subject to the covenants of any revenue bond indenture pursuant to which revenue bonds have been issued and are outstanding which contains covenants entered into by the authority with respect to the fixing of such rates, fares, tolls, charges, and rents.

Source. 1963, 278:1, eff. Sept. 1, 1963.

Section 38-A:18

    38-A:18 Contracts Made by the Authority. –
I. The authority shall have the power to enter into contracts and agreements which it considers to be in the interests of its public purposes with any person or persons, with any public or quasi-public corporation with any state, and with the United States and any department or agency thereof. It shall have power (here stated in illustration and not in limitation of its power), to enter into agreements for the joint use of any property and rights by the authority and by any public utility operating any transportation facilities; to enter into agreements with any public utility operating any transportation facilities either within or without the metropolitan area for the joint use of any property of the authority or public utility, or the establishment of through routes, joint fares and transfer of passengers; and to enter into agreements with any person, or public corporation or quasi-public corporation for the maintenance, servicing, storage, operation or use of any transit facility, property or equipment on such basis as shall seem to the authority consonant with its public purposes.
II. The authority may make contracts, leases and agreements with any department or agency of the United States of America or of the state of New Hampshire, or with any person or municipality or labor union, and may generally perform all acts necessary for the full exercise of the powers vested in it. The authority may acquire rolling stock or other property under conditional sales contracts, leases, equipment, trust certificates, or any other form of contract or trust agreement. Contracts may be let by an officer or employee of the authority or by the superintending corporation in such manner as may be authorized from time to time by the authority. Any revenue bond indenture may provide limitations upon the exercise of the powers stated in this section and such limitations shall apply so long as any of the revenue bonds issued pursuant to such indenture are outstanding and unpaid.

Source. 1963, 278:1, eff. Sept. 1, 1963.

Section 38-A:19

    38-A:19 Public Utilities Commission. – The authority shall not be subject to regulation by the New Hampshire public utilities commission except that such authority may not conduct its operations beyond the city or town limits in which it is located without the approval of the public utilities commission pursuant to procedure provided by the statute and regulations covering said commission pertaining to similar service by other common carriers operating under the jurisdiction of said commission.

Source. 1963, 278:1, eff. Sept. 1, 1963.

Section 38-A:20

    38-A:20 Tax Exemption. – The policy of the state of New Hampshire being to foster and insure, by means of an authority created for the purpose, the development of a mass rapid transit system in aid of a municipality faced with the necessity of a publicly sponsored solution of transit needs within its limits, all property owned or operated by any authority created hereunder shall be exempt from all taxes, fees, or other charges levied by the state of New Hampshire and all of its political subdivisions and taxing districts, and such authority shall likewise be required to pay no taxes or assessments upon its activities or upon any of its revenues.

Source. 1963, 278:1, eff. Sept. 1, 1963.

Section 38-A:21

    38-A:21 Constitutional Construction and Legislative Intent. – The provisions of this chapter are severable, and if any of its provisions shall be held unconstitutional by any court of competent jurisdiction, the decision of such court shall not affect or impair any of the remaining provisions; and notwithstanding any other evidence of legislative intent, it is hereby declared to be the controlling legislative intent that if any provisions of this chapter, or the application thereof to any person or circumstances is held invalid, the remainder of the chapter and the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby. Insofar as the provisions of this chapter are inconsistent with the provisions of any other law, the provisions of this chapter shall be controlling.

Source. 1963, 278:1, eff. Sept. 1, 1963.