47-10
Aeronautics
Cite as N.D. Op. Att'y Gen. 47-10
OPINION
47-10
February 15, 1947 (OPINION)
AERONAUTICS
RE: Cities Negotiating for Funds with CAA
You inquire whether under section 6 of Senate Bill No. 40 cities are
prohibited from negotiating with the Civil Aeronautics Administration
for funds and whether they are prohibited from making application for
airport development without first submitting it to the State
Aeronautics Commission, or whether the provisions of section 6 of
said bill would begin to operate only after the negotiations and
application for funds were made and funds pursuant thereto awarded to
the municipality. It seems to me that after a careful reading of
section 6, the Aeronautics Commission is appointed as agent of the
municipalities to receive, accept, receipt for, and disburse federal
moneys to finance, in whole or in part, the planning, acquisition,
construction, improvement, maintenance or operation of municipal
airports or air navigation facilities, and that such agency would
result only after a loan or grant had been negotiated and awarded to
the municipality.
It is further provided that the Commission shall act as their agent
in contracting for and supervising such planning, acquisition,
construction, improvement, maintenance or operation. The Commission
is further authorized as principal on behalf of the state, and for
any municipality to enter into contracts with the United States or
with any municipality or any person, which may be required in
connection with a grant or loan of federal moneys for airport or air
navigation facilities. But this section also enjoins upon the
Commission to accept, transfer or expend such funds upon such terms
and conditions as are prescribed by the United States. The
Commission must deposit the money received in the State Treasury and
unless otherwise prescribed by the authority (Civil Aeronautics
Administration) shall keep it in a separate fund designated for the
purposes for which the money was made available and to hold the same
for such purposes. This section also provides that all such moneys
are appropriated for the purposes for which the same are made
available and are to be disbursed and expended within the terms and
conditions under which they were made available.
It seems quite clear from this section that there is nothing for the
Commission to accept, receive, receipt for or disburse until the
municipality has negotiated by application for funds and until such
funds have been allocated to the municipality for the purposes
designated in the application. After the funds have been allocated
for the purposes set forth in the application for purposes required
by the Civil Aeronautics Administration, then section 6 will become
operative and the funds must be received, accepted, receipted for and
disbursed as provided in section 6 of Senate Bill 40. I do not
believe that it was the intention of the Legislative Assembly that
the municipalities be deprived of all power of negotiating for such
funds nor that they be dependent upon the Civil Aeronautics
Commission of this state in the determination of the need for such
money or the uses to which it is to be applied.
It is the opinion of this office that the provisions of section 6 of
Senate Bill 40 do not begin to operate until after an application has
been made to the Civil Aeronautics Administration of the United
States and the municipality has been allotted funds in accordance
with its application. Then the provisions of section 6 apply and not
until then.
NELS G. JOHNSON
Attorney General