2-02-01. Authority to acquire, operate, and regulate airports.

The North Dakota aeronautics commission and all counties, cities, park districts, and townships of this state, separately or jointly, may acquire, establish, construct, expand, own, lease, control, equip, improve, maintain, operate, regulate, and police airports and landing fields for the use of aircraft either within or without the geographic limits of such political subdivisions, and may use for such purpose or purposes any available property owned or controlled by the state aeronautics commission or such political subdivisions. Any property acquired, owned, leased, controlled, or occupied for the purpose or purposes enumerated herein hereby is declared to be acquired, owned, leased, controlled, or occupied for a public purpose and as a matter of public need, and there is no liability on the part of the state aeronautics commission or any county, city, park district, or township in connection therewith, or in the operation thereof, except to its own employees.

2-02-02. Property — How acquired.

Private property needed by a county, city, park district, or township for an airport or landing field, or for the expansion of an airport or landing field, may be acquired by grant, purchase, lease, or other means, if the political subdivision is able to agree with the owners of the property on the terms of the acquisition, and otherwise, subject to chapter 32-15, by right of eminent domain.

2-02-03. Purchase price — How paid — Bond issue.

The purchase price or award for real property acquired in accordance with the provisions of this chapter for an airport or landing field may be paid for by appropriation of moneys available therefor or wholly or partly from the proceeds of the sale of bonds of said counties, cities, park districts, and townships, as the proper officials of such political subdivisions shall determine, but any bonds for such purpose must be authorized and issued under the provisions of chapter 21-03.

2-02-04. Air rights — How acquired.

Where necessary, in order to provide unobstructed air space for the landing and taking off of aircraft utilizing airports and landing fields acquired or maintained under the provisions of this chapter, the counties, cities, park districts, and townships may acquire such air rights over private property as are necessary to ensure safe approaches to the landing areas of said airports and landing fields. Such air rights may be acquired by grant, purchase, lease, or by right of eminent domain in the same manner as is provided in section 2-02-02 for the acquisition of the airport or landing field itself or the expansion thereof.

2-02-05. Rights for marking fields — How acquired.

Such political subdivisions may acquire the right or easement for a term of years or perpetually to place and maintain suitable marks for the daytime, and to place, operate, and maintain suitable lights for the nighttime marking of buildings or other structures or obstructions interfering with the safe operation of aircraft utilizing airports and landing fields acquired or maintained under the provisions of this chapter. Such rights or easements may be acquired in the manner provided in section 2-02-02.

2-02-06. Authority to construct, operate, regulate, or lease airports.

Counties, cities, park districts, and townships which have established airports or landing fields, or which acquire, lease, or set apart real property for such purpose or purposes, may:

1. Construct, equip, maintain, and operate the same, or vest authority for the construction, equipment, improvement, maintenance, and operation thereof, in an officer, board, or body of such political subdivision. The expenses of such construction, equipment, improvement, maintenance, and operation are a responsibility of said political subdivision.
2. Adopt regulations and establish charges, fees, and tolls for the use of such airports or landing fields and fix penalties for the violation of said regulations.
3. Lease such airports or landing fields to private parties for operation, or lease or assign to private parties for operation, space, area, improvements, and equipment on such airports or landing fields, if in each case the public, in so doing, is not deprived of its rightful use thereof.
4. Establish toll access roadways leading to air carrier terminal buildings. The toll access charge may not exceed one dollar per vehicle.

2-02-07. Authority to raise money by taxation and use airport income.

The local public authorities having power to appropriate moneys within the political subdivisions acquiring, establishing, developing, operating, maintaining, or controlling airports under the provisions of this chapter may appropriate and cause to be raised by taxation under section 2-06-15 or from revenue derived from general fund levy authority in such political subdivisions, moneys sufficient to carry out therein the provisions of this chapter, and also may use for such purpose or purposes moneys derived from said airports.

2-02-08. Police power outside geographic limits.

Counties, cities, park districts, and townships acquiring, establishing, developing, operating, maintaining, or controlling airports or landing fields under the provisions of this chapter without the geographic limits of such subdivisions have the same police powers over such airports or landing fields as they may exercise within the geographic limits of such subdivisions.

2-02-09. Authorization for airport liability insurance — Exceptions.

After June 30, 1967, any airport authority, county, city, township, or other political subdivision which operates an airport, is hereby authorized to carry liability insurance for its own protection and the protection of any employee from claim for loss or damage for bodily injury or property damage arising out of or by reason of its operation and maintenance of airport facilities in connection therewith or landing fields; provided, that any airport authority or political subdivision, and its agents, servants, and employees have full government immunity for any claims in excess of the limits afforded by such insurance policies or full governmental immunity in the event no insurance is carried. The existence of insurance coverage may not be conveyed to the jury in the event of suits thereon, either directly or indirectly. If a dispute exists concerning the amount or nature of the insurance coverage, the dispute must be tried separately before the main trial determining the claims and damages of the claimant. This statute confers no right for a claimant to sue the insurer directly.

2-03-01. Definitions.

In this chapter, unless the context or subject matter otherwise requires:

1. “Aircraft” means any contrivance now known or hereafter invented, used, or designed for navigation of or flight in the air. Provided, a hydroplane, while at rest on water and while being operated on or immediately above water, shall be governed by the rules regarding water navigation.
2. “Airman” means any individual who engages, as the person in command, or as pilot or member of the crew, in the operating and navigation of an aircraft while underway.
3. “Passenger” includes any person riding in an aircraft, but having no part in its operation.

2-03-02. Sovereignty in space.

Sovereignty in the space above the lands and waters of this state is declared to rest in the state, except where granted to and assumed by the United States pursuant to a constitutional grant from the people of this state.

2-03-03. Ownership of space.

The ownership of the space above the lands and waters of this state is declared to be vested in the several owners of the surface beneath, subject to the right of flight described in section 2-03-04.

2-03-04. Lawfulness of flight and landing.

Flight in aircraft over the lands and waters of this state is lawful, unless at such a low altitude as to interfere with the then existing use to which the land or water, or the space over the land or water is put by the owner, or unless so conducted as to be imminently dangerous to persons or property lawfully on the land or water beneath. The landing of an aircraft on the lands or waters of another, without the owner’s consent, is unlawful except in the case of a forced landing. For damages caused by a forced landing, however, the owner or lessee of the aircraft or the airman is liable, as provided in section 2-03-05.

2-03-05. Damage to persons and property.

The owner and the pilot, or either of them, of every aircraft which is operated over the lands or waters of this state are liable for injuries to persons or property on the land or water beneath caused by the ascent, descent, or flight of the aircraft, or the dropping or falling of any object therefrom, in accordance with the rules of law applicable to torts in this state, unless the injury is caused in whole or in part by the negligence of the person injured, or of the owner or bailee of the property injured. If the aircraft is leased at the time of the injury to person or property, both owner and lessee are liable and they may be sued jointly, or either or both of them may be sued separately. An airman who is not the owner or lessee is liable only for the consequences of that person’s own negligence. The injured person, or owner, or bailee of the injured property, has a lien on the aircraft causing the injury to the extent of the damage caused by the aircraft or objects falling from it.

As used in this section, “owner” includes a person having full title to aircraft and operating it through servants, and also includes a bona fide lessee or bailee of such aircraft, whether gratuitously or for hire; but “owner”, as used in this section, does not include a bona fide bailor or lessor of such aircraft, whether gratuitously or for hire, or a mortgagee, conditional seller, trustee for creditors of such aircraft or other person having a security title only, nor is the owner of such aircraft liable when the pilot thereof is in possession thereof as a result of theft or felonious conversion.

The person in whose name an aircraft is registered with the United States department of transportation or the aeronautics commission of this state is prima facie the owner of such aircraft within the meaning of this section.

2-03-06. Collision of aircraft.

The liability of the owner of one aircraft to the owner of another aircraft, or to the airmen or passengers on either aircraft, for damage caused by collision on land or in the air, must be determined by the rules of law applicable to torts on land.

2-03-07. Aircraft — Common carriers.

Aircraft carrying passengers or property for hire are deemed common carriers and are subject to all of the rules applicable thereto.

2-03-08. Jurisdiction over crimes and torts.

All crimes, torts, and other wrongs committed by or against an airman or passenger while in flight over this state are governed by the laws of this state, and the question whether damage occasioned by or to an aircraft while in flight over this state constitutes a tort, crime, or other wrong by or against the owner of such aircraft, must be determined by the laws of this state.

2-03-09. Jurisdiction over contracts.

All contractual and other legal relations entered into by airmen or passengers while in flight over this state have the same effect as if entered into on the land or water beneath.

2-03-10. Reckless operation — Operation while intoxicated — Tampering with aircraft — Misdemeanors — Penalties.

1. Any person who operates any aircraft within the airspace over, above, and upon the lands and waters of this state, carelessly and heedlessly in willful disregard of the rights or safety of others, or without due caution and circumspection in a manner so as to endanger or be likely to endanger any person or property, is guilty of a class A misdemeanor.
2. Whoever operates any aircraft in this state on land, water, or in the air while in an intoxicated condition or while under the influence of alcoholic beverages or any controlled substance, is guilty of a class A misdemeanor.
3. No person may act as a crew member of any aircraft or start an engine of any aircraft within eight hours after the consumption of any alcoholic beverage or while using any controlled substance that affects that person’s faculties in any way contrary to safety. Anyone violating the provisions of this subsection is guilty of a class A misdemeanor.
4. No person may, without express or implied authority of the owner, operate, climb upon, enter, manipulate the controls or accessories of, set in motion, remove parts or contents therefrom, or otherwise tamper with any civil aircraft within this state with intent to injure the same or cause inconvenience to the owner or operator thereof, or knowingly cause or permit the same to be done. Any person who violates any of the provisions of this subsection is guilty of a class B misdemeanor.

2-03-11. Notice.

Whenever a person, firm, corporation, limited liability company, or association shall erect anywhere in this state a building, structure, or tower of any kind over two hundred feet [60.96 meters] in height above the terrain such person, firm, corporation, limited liability company, or association shall first file a notice with the state of North Dakota aeronautics commission.

2-03-12. Obstructions near runway approaches.

It is unlawful to build or maintain any obstruction near the runway approach to any airport in the state open for public use, except pursuant to rules and regulations adopted by the aeronautics commission.

2-03-13. Penalty.

Each violation of section 2-03-11 or 2-03-12 or any regulations, orders, or rulings promulgated or made pursuant to this chapter constitutes a class A misdemeanor.

2-03-14. Civil liability for injuries to guest passenger.

No person transported by the owner or operator of any aircraft as a guest without payment for such transportation has claim for relief for damages against the owner or operator for injury, death, or loss in case of accident, unless the accident was caused by the gross negligence, intoxication, or willful and wanton misconduct of the owner or operator of the aircraft, and unless the gross negligence, intoxication, or willful and wanton misconduct of the owner or operator of the aircraft contributed to the injury, death, or loss. No person so transported has claim for relief if that person has willfully or by want of ordinary care brought about that person’s own injury. For purposes of this section, the word “guest” means any person other than an employee of the owner or registrant of any aircraft, or of a person responsible for its operation with the owner’s or registrant’s express or implied consent, being in or upon, entering or leaving the same, except any passenger for hire and except any passenger while the aircraft is being used in the business of demonstrating or testing. The sharing of expense does not constitute a carriage for hire within the meaning of this section.

2-04-01. Definitions.

As used in this chapter, unless the context otherwise requires:

1. “Airport” means any area of land or water designed and set aside for the landing and taking off of aircraft and utilized or to be utilized in the interests of the public for such purposes.
2. “Airport hazard” means any structure or tree or use of land which obstructs the airspace required for the flight of aircraft in landing or taking off at any airport or is otherwise hazardous to such landing or taking off of aircraft.
3. “Airport hazard area” means any area of land or water upon which an airport hazard might be established if not prevented as provided in this chapter.
4. “Person” means any individual, firm, copartnership, corporation, limited liability company, company, association, joint-stock association, the state of North Dakota or any political subdivision thereof, and includes any trustee, receiver, assignee, or other similar representative thereof.
5. “Political subdivision” means any county, city, park district, or township.
6. “Structure” means any object constructed or installed by man, including, but without limitation, buildings, towers, smokestacks, and overhead transmission lines.
7. “Tree” means any object of natural growth.

2-04-02. Airport hazards contrary to public interest.

It is hereby found that an airport hazard endangers the lives and property of users of the airport and of occupants of land in its vicinity, and also, if of the obstruction type, in effect reduces the size of the area available for the landing, taking off, and maneuvering of aircraft, thus tending to destroy or impair the utility of the airport and the public investment therein. Accordingly, it is hereby declared that:

1. The creation or establishment of an airport hazard is a public nuisance and an injury to the community served by the airport in question;
2. It is therefore necessary in the interest of the public health, public safety, and general welfare that the creation or establishment of airport hazards be prevented; and
3. This should be accomplished, to the extent legally possible, by exercise of the police power, without compensation.

It is further declared that both the prevention of the creation or establishment of airport hazards and the elimination, removal, alteration, mitigation, or marking and lighting of existing airport hazards are public purposes for which political subdivisions may raise and expend public funds and acquire land or property interests therein.

2-04-03. Power to adopt airport zoning regulations.

1. In order to prevent the creation or establishment of airport hazards, every political subdivision having an airport hazard area within its territorial limits may adopt, administer, and enforce, under the police power and in the manner and upon the conditions hereinafter prescribed, airport zoning regulations for such airport hazard area, which regulations may divide such area into zones, and, within such zones, specify the land uses permitted and regulate and restrict the height to which structures and trees may be erected or allowed to grow.
2. Where an airport is owned or controlled by a political subdivision and any airport hazard area appertaining to such airport is located outside the territorial limits of said political subdivision, the political subdivision owning or controlling the airport and the political subdivision within which the airport hazard area is located may, by ordinance or resolution duly adopted, create a joint airport zoning board, which board has the same power to adopt, administer, and enforce airport zoning regulations applicable to the airport hazard area in question as that vested by subsection 1 in the political subdivision within which such area is located. Each such joint board shall have as members two representatives appointed by each political subdivision participating in its creation and in addition a chairman elected by a majority of the members so appointed.
3. If in the judgment of a political subdivision owning or controlling an airport, the political subdivision within which is located an airport hazard area appertaining to that airport, has failed to adopt or enforce reasonably adequate airport zoning regulations for such area under subsection 1 and if that political subdivision has refused to join in creating a joint airport zoning board as authorized in subsection 2, the political subdivision owning or controlling the airport may itself adopt, administer, and enforce airport zoning regulations for the airport hazard area in question. In the event of conflict between such regulations and any airport zoning regulations adopted by the political subdivision within which the airport hazard area is located, the regulations of the political subdivision owning or controlling the airport govern and prevail.

2-04-04. Relation to comprehensive zoning regulations.

1. Incorporation. In the event that a political subdivision has adopted, or hereafter adopts, a comprehensive zoning ordinance regulating, among other things, the height of buildings, any airport zoning regulations applicable to the same area or portion thereof, may be incorporated in and made a part of such comprehensive zoning regulations, and be administered and enforced in connection therewith.
2. Conflict. In the event of conflict between any airport zoning regulations adopted under this chapter and any other regulations applicable to the same area, whether the conflict be with respect to the height of structures or trees, the use of land, or any other matter, and whether such other regulations were adopted by the political subdivision which adopted the airport zoning regulations or by some other political subdivision, the more stringent limitation or requirement governs and prevails.

2-04-05. Procedure for adoption of zoning regulations.

1. No airport zoning regulations shall be adopted, amended, or changed under this chapter except by action of the legislative body of the political subdivision in question, or the joint board provided for in subsection 2 of section 2-04-03 after a public hearing in relation thereto, at which parties in interest and citizens shall have an opportunity to be heard. At least fifteen days’ notice of the hearing shall be published in an official newspaper, or a newspaper of general circulation, in the political subdivision or subdivisions in which is located the airport hazard area to be zoned.
2. Prior to the initial zoning of any airport hazard area under this chapter, the political subdivision or joint airport zoning board which is to adopt the regulations shall appoint a commission, to be known as the airport zoning commission, to recommend the boundaries of the various zones to be established and the regulations to be adopted therefor. The commission shall make a preliminary report and hold public hearings thereon before submitting its final report, and the legislative body of the political subdivision or the joint airport zoning board shall not hold its public hearings or take other action until it has received the final report of such commission. If a city planning commission or zoning commission already exists, it may be appointed as the airport zoning commission.

2-04-06. Airport zoning requirements.

1. Reasonableness. All airport zoning regulations adopted under this chapter must be reasonable and none may impose any requirement or restriction which is not reasonably necessary to effectuate the purposes of this chapter. In determining what regulations it may adopt, each political subdivision and joint airport zoning board shall consider, among other things, the character of the flying operations expected to be conducted at the airport, the nature of the terrain within the airport hazard area, the character of the neighborhood, and the uses to which the property to be zoned is put and adaptable.
2. Nonconforming uses. No airport zoning regulations adopted under this chapter may require the removal, lowering, or other change or alteration of any structure or tree not conforming to the regulations when adopted or amended, or otherwise interfere with the continuance of any nonconforming use, except as provided in subsection 3 of section 2-04-07.

2-04-07. Permits and variances.

1. Permits. Any airport zoning regulations adopted under this chapter may require that a permit be obtained before any new structure or use may be constructed or established and before any existing use or structure may be substantially changed or substantially altered or repaired. In any event, however, all such regulations must provide that before any nonconforming structure or tree may be replaced, substantially altered or repaired, rebuilt, allowed to grow higher, or replanted, a permit must be secured from the administrative agency authorized to administer and enforce the regulations, authorizing such replacement, change, or repair. No permit may be granted that would allow the establishment or creation of an airport hazard or permit a nonconforming structure or tree or nonconforming use to be made or become higher or become a greater hazard to air navigation than it was when applicable regulation was adopted or than it is when the application for a permit is made. Except as provided herein, all applications for permits must be granted.
2. Variances. Any person desiring to erect any structure, or increase the height of any structure, or permit the growth of any tree, or otherwise use that person’s property in violation of airport zoning regulations adopted under this chapter may apply to the board of adjustment for a variance from the zoning regulations in question. Such variances must be allowed where a literal application or enforcement of the regulations would result in practical difficulty or unnecessary hardship and the relief granted would not be contrary to the public interest but do substantial justice and be in accordance with the spirit of the regulations and this chapter; provided, that any variance may be allowed subject to any reasonable conditions that the board of adjustment may deem necessary to effectuate the purposes of this chapter.
3. Hazard marking and lighting. In granting any permit or variance under this section, the administrative agency or board of adjustment may, if it deems such action advisable to effectuate the purposes of this chapter and reasonable in the circumstances, so condition such permit or variance as to require the owner of the structure or tree in question to permit the political subdivision, at its own expense, to install, operate, and maintain thereon such markers and lights as may be necessary to indicate to flyers the presence of an airport hazard.

2-04-08. Appeals.

1. Any person aggrieved, or taxpayer affected, by any decision of an administrative agency made in its administration of airport zoning regulations adopted under this chapter, or any governing body of a political subdivision, or any joint airport zoning board, which is of the opinion that a decision of such administrative agency is an improper application of airport zoning regulations of concern to such governing body or board, may appeal to the board of adjustment authorized to hear and decide appeals from the decisions of such administrative agency.
2. All appeals taken under this section must be taken within a reasonable time, as provided by the rules of the board, a notice of appeal specifying the grounds thereof. The agency from which the appeal is taken shall forthwith transmit to the board all the papers constituting the record upon which the action appealed from was taken.
3. An appeal stays all proceedings in furtherance of the action appealed from, unless the agency from which the appeal is taken certifies to the board, after the notice of appeal has been filed with it, that by reason of the facts stated in the certificate a stay would, in its opinion, cause imminent peril to life or property. In such cases, proceedings may not be stayed otherwise than by order of the board on notice to the agency from which the appeal is taken and on due cause shown.
4. The board shall fix a reasonable time for the hearing of appeals, give public notice and due notice to the parties in interest, and decide the same within a reasonable time. Upon the hearing, any party may appear in person or by attorney.
5. The board may, in conformity with the provisions of this chapter, reverse or affirm wholly or partly, or modify, the order, requirement, decision, or determination appealed from and may make such order, requirement, decision, or determination as ought to be made, and to that end has all the powers of the administrative agency from which the appeal is taken.

2-04-09. Administration of airport zoning regulations.

All airport zoning regulations adopted under this chapter must provide for the administration and enforcement of such regulations by an administrative agency which may be an agency created by such regulations or any official, board, or other existing agency of the political subdivision adopting the regulations or of one of the political subdivisions which participated in the creation of the joint airport zoning board adopting the regulations, if satisfactory to that political subdivision, but in no case may such administrative agency be or include any member of the board of adjustment. The duties of any administrative agency designated pursuant to this chapter include that of hearing and deciding all permits under subsection 1 of section 2-04-07, but such agency shall not have or exercise any of the powers herein delegated to the board of adjustment.

2-04-10. Board of adjustment.

1. All airport zoning regulations adopted under this chapter must provide for a board of adjustment to have and exercise the following powers:
   1. To hear and decide appeals from any order, requirement, decision, or determination made by the administrative agency in the enforcement of the airport zoning regulations, as provided in section 2-04-08.
   2. To hear and decide any special exceptions to the terms of the airport zoning regulations upon which such board may be required to pass under such regulations.
   3. To hear and decide specific variances under subsection 2 of section 2-04-07.
2. If a zoning board of appeals or adjustment already exists, it may be appointed as the board of adjustment. Otherwise, the board of adjustment shall consist of five members, each to be appointed for a term of three years by the authority adopting the regulations and to be removable by the appointing authority for cause, upon written charges and after public hearing.
3. The concurring vote of a majority of the members of the board of adjustment is sufficient to reverse any order, requirement, decision, or determination of the administrative agency, or to decide in favor of the applicant on any matter upon which it is required to pass under the airport zoning regulations, or to effect any variation in such regulations.
4. The board shall adopt rules in accordance with the provisions of the ordinance or resolution by which it was created. Meetings of the board shall be held at the call of the chairman and at such other times as the board may determine. The chairman, or in the chairman’s absence the acting chairman, may administer oaths and compel the attendance of witnesses. All hearings of the board must be public. The board shall keep minutes of its proceedings, showing the vote of each member upon each question, or, if absent, or failing to vote, indicating such fact, and shall keep records of its examinations and other official actions, all of which must immediately be filed in the office of the board and shall be a public record.

2-04-11. Judicial review.

1. Any person aggrieved, or taxpayer affected, by any decision of a board of adjustment, or any governing body of a political subdivision or any joint airport zoning board which is of the opinion that a decision of a board of adjustment is illegal, may present to the district court a verified petition setting forth that the decision is illegal, in whole or in part, and specifying the grounds of the illegality. Such petition must be presented to the court within fifteen days after the decision is filed in the office of the board.
2. Upon presentation of such petition the court may allow a writ of certiorari directed to the board of adjustment to review such a decision of the board. The allowance of the writ does not stay proceedings upon the decision appealed from, but the court may, on application, on notice to the board and on due cause shown, grant a restraining order.
3. The board of adjustment is not required to return the original papers acted upon by it, but it is sufficient to return certified or sworn copies thereof or of such portions thereof as may be called for by the writ. The return must concisely set forth such other facts as may be pertinent and material to show the grounds of the decision appealed from and must be verified.
4. The court has exclusive jurisdiction to affirm, modify, or set aside the decision brought up for review, in whole or in part, and if need be, to order further proceedings by the board of adjustment. The findings of fact of the board, if supported by substantial evidence, must be accepted by the court as conclusive, and no objection to a decision of the board may be considered by the court unless such objection has been urged before the board, or, if it was not so urged, unless there were reasonable grounds for failure to do so.
5. Costs may not be allowed against the board of adjustment unless it appears to the court that it acted with gross negligence, in bad faith, or with malice, in making the decision appealed from.
6. In any case in which airport zoning regulations adopted under this chapter, although generally reasonable, are held by a court to interfere with the use or enjoyment of a particular structure or parcel of land to such an extent, or to be so onerous in their application to such a structure or parcel of land, as to constitute a taking or deprivation of that property in violation of the Constitution of North Dakota or the Constitution of the United States, such holding does not affect the application of such regulations to other structures and parcels of land.

2-04-12. Enforcement and remedies.

Each violation of this chapter or of any regulations, orders, or rulings promulgated or made pursuant to this chapter, constitutes a class B misdemeanor. In addition, the political subdivision or agency adopting zoning regulations under this chapter may institute in any court of competent jurisdiction, an action to prevent, restrain, correct, or abate any violation of this chapter, or of airport zoning regulations adopted under this chapter, or of any order or ruling made in connection with their administration or enforcement, and the court shall adjudge to the plaintiff such relief, by way of injunction (which may be mandatory) or otherwise, as may be proper under all the facts and circumstances of the case, in order fully to effectuate the purposes of this chapter and of the regulations adopted and orders and rulings made pursuant thereto.

2-04-13. Acquisition of air rights.

In any case in which:

1. It is desired to remove, lower, or otherwise terminate a nonconforming structure or use;
2. The approach protection necessary cannot, because of constitutional limitations, be provided by airport zoning regulations under this chapter; or
3. It appears advisable that the necessary approach protection be provided by acquisition of property rights rather than by airport zoning regulations,

the political subdivision within which the property or nonconforming use is located or the political subdivision owning the airport or served by it may acquire, by purchase, grant, or condemnation in the manner provided by the law under which political subdivisions are authorized to acquire real property for public purposes, such air right, navigation easement, or other estate or interest in the property or nonconforming structure or use in question as may be necessary to effectuate the purposes of this chapter.

2-04-14. Short title.

This chapter must be known and may be cited as the “Airport Zoning Act”.

2-05-01. Aeronautics commission — Creation — Membership.

The North Dakota aeronautics commission consists of five members. The governor shall appoint each member for a term of five years, except that a member appointed to fill a vacancy before the expiration of the term for which the member’s predecessor was appointed must be appointed only for the remainder of the term. Each member shall serve until the appointment and qualification of the member’s successor. Each member of the commission must be a qualified elector of this state. Any member of the commission may be removed by the governor for inefficiency, neglect of duty, or malfeasance in office. Each member of the commission shall receive compensation of seventy-five dollars for each day or portion of a day the member is actually engaged in the performance of the duties of the member’s office and payment for mileage and travel expenses as provided in sections 44-08-04 and 54-06-09.

2-05-02. Director of aeronautics — Appointment — Qualifications — Compensation.

A director of aeronautics must be appointed by the commission to serve at the pleasure of the commission. The director of aeronautics shall devote full time to the duties of the office, and shall have no pecuniary interest in or any stock or bonds of any civil aeronautical enterprises. The director of aeronautics shall receive such compensation as the commission may determine and must be reimbursed for all traveling and other expenses incurred by the director in the discharge of official duties, at the same rates and under the same conditions for the payment of traveling expenses and board and lodging as is provided in section 2-05-01.

2-05-03. Powers and duties of director.

The director shall be the executive officer of the commission. The director shall attend all meetings of the commission, but has no voting power. At the direction of the commission, the director shall, together with the chairman of the commission, execute all contracts entered into by the commission which are legally authorized. The director shall appoint, subject to the approval of the commission, such employees as may be necessary for the proper discharge of the functions of the commission. The director shall act as the agent of the tax commissioner for purposes of enforcement of chapter 57-40.5.

2-05-04. Commission reports — Offices.

The commission may submit a biennial report to the governor and the secretary of state in accordance with section 54-06-04. The commission shall maintain its office in the state capitol or as authorized under section 54-21-24.

2-05-05. Duty of commission in development of aeronautics.

The commission shall have general supervision over aeronautics within this state and shall:

1. Encourage the establishment of airports and air navigation facilities;
2. Cooperate with and assist the federal government, the municipalities of this state, and other persons in the development and coordination of all aeronautical activities;
3. Represent the state in aeronautical matters before state and federal agencies;
4. Participate as party plaintiff or defendant or as intervenor on behalf of the state or any municipality in any controversy which involves the interest of the state in aeronautics;
5. Establish or promote with the public sector or private sector, or both, and provide financing, in whole or in part, of aeronautical educational programs and support of the educational programs of aeronautical museums in the state; and
6. Establish or promote with the public sector or private sector, or both, and provide financing, in whole or in part, of programs informing the public of commercial and general aviation services available in the state.

2-05-06. Federal aid.

The commission may act as agent of all municipalities in accepting, receiving, receipting for, and disbursing federal moneys, made available to finance, in whole or in part, the planning, acquisition, construction, improvement, maintenance, or operation of municipal airports or air navigation facilities. The commission, as principal on behalf of the state, and for any municipality, may enter into any contracts, with the United States, with any municipality, or with any person, which may be required in connection with a grant or loan of federal moneys for municipal airport or air navigation facility purposes, provided that no contract may be entered into on behalf of any municipality except pursuant to written request of such municipality. All federal moneys accepted under this section must be accepted and transferred or expended by the commission upon such terms and conditions as are prescribed by the United States. All moneys received by the commission pursuant to this section must be deposited in the state treasury, and, unless otherwise prescribed by the authority from which such moneys were received, shall be kept in separate funds designated according to the purpose for which the moneys were made available, and held by the state for such purposes. All such moneys are hereby appropriated for the purposes, for which the same were made available, to be disbursed or expended in accordance with the terms and conditions upon which they were made available.

2-05-06.1. Authorization to accept federal or other moneys.

The North Dakota aeronautics commission, or any county, city, park district, or township is authorized to accept, receive, and receipt for federal moneys, and other moneys, either public or private, for the acquisition, construction, enlargement, improvement, maintenance, equipment, or operation of airports and other air navigation facilities, and sites therefor, and to comply with the provisions of the laws of the United States and any rules and regulations made thereunder for the expenditure of federal moneys upon such airports and other air navigation facilities.

2-05-06.2. Designation of aeronautics commission as agent.

The governing body of any political subdivision referred to in section 2-05-06.1 is authorized to designate the state aeronautics commission of the state as its agent to accept, receive, and receipt for federal moneys in its behalf for airport purposes and to contract for the acquisition, construction, enlargement, improvement, maintenance, equipment, or operation of such airports, or other air navigation facilities, and may enter into an agreement with such aeronautics commission prescribing the terms and conditions of such agency in accordance with federal laws, rules and regulations, and applicable laws of this state. Such moneys as are paid over by the United States government must be paid over to said municipality under such terms and conditions as may be imposed by the United States government in making such grant.

2-05-06.3. Contracts.

All contracts for the acquisition, construction, enlargement, improvement, maintenance, equipment, or operation of airports or other air navigation facilities, made by any of the political subdivisions referred to in sections 2-05-06.1 and 2-05-06.2, by itself or through the agency of the aeronautics commission of the state, must be made pursuant to the laws of this state governing the making of like contracts; provided, however, that if such acquisition, construction, improvement, enlargement, maintenance, equipment, or operation is financed wholly or partly with federal moneys the municipality, or the aeronautics commission as its agent, may let contracts in the manner prescribed by the federal authorities, acting under the laws of the United States, and any rules or regulations made thereunder, notwithstanding any other state law to the contrary.

2-05-06.4. Declaration of purpose — Financial assistance to airports. [Repealed]

Repealed by S.L. 2011, ch. 57, § 8.

2-05-06.5. State assistance for airports.

Each public airport in this state may be provided assistance according to guidelines established by the commission by rule, within the limits of legislative appropriations from the state general fund. The governing body or airport authority which operates an airport that receives assistance under this section shall deposit the moneys received in the same account or accounts as other airport funds are deposited and may expend the moneys as provided by law for other airport funds, including matching any funds made available by the United States.

2-05-07. State airways system.

The state airways system shall consist of all air navigation facilities available for public use now existing or hereafter established, whether publicly or privately owned or except those under the jurisdiction of the federal government. Jurisdiction over the state airways system in matters of safety is vested in the aeronautics commission. The commission may expend state funds duly appropriated for such purpose in the interest of safety on any or all facilities of the system which serve a useful public purpose and satisfy a public need. The commission may make, promulgate, and amend reasonable safety rules, safety regulations, and safety procedures, and establish minimum safety standards covering the activities for each such facility.

2-05-08. Rules, regulations, standards. [Repealed]

Repealed by S.L. 2011, ch. 57, § 8.

2-05-09. Reckless operation of aircraft. [Repealed]

Repealed by S.L. 1975, ch. 106, § 673.

2-05-10. Registration of airmen. [Repealed]

Repealed by S.L. 1999, ch. 52, § 1.

2-05-11. Aircraft registration — Fees.

1. Except as provided in section 2-05-11.3, every aircraft or ultralight vehicle operating within this state for more than thirty days must be registered with the aeronautics commission for each calendar year in which the aircraft or ultralight vehicle is operated within this state, subject to rules adopted by the commission. The commission shall charge a fee for each annual registration. The following fees apply:
2. All weights must be based upon the maximum permissible take-off weight, except that the weights must be empty weights for all ultralight vehicles which are not certificated for maximum permissible take-off weight.
3. The aeronautics commission may charge a reasonable cost of service fee for registration of aircraft operated by state agencies, political subdivisions, aviation schools operated by state institutions of higher education, or the civil air patrol in lieu of the regular registration fee.
4. All fees received under this section must be deposited in the aeronautics commission special fund.

Gross Weight in Pounds Registration Fees 0 to 500 $ 15.00 501 to 1,000 30.00 1,001 to 1,500 38.00 1,501 to 2,000 45.00 2,001 to 2,500 60.00 2,501 to 3,000 75.00 3,001 to 3,500 90.00 3,501 to 4,000 105.00 4,001 to 5,000 120.00 5,001 to 6,000 150.00 6,001 to 7,000 180.00 7,001 to 8,000 210.00 8,001 to 9,000 240.00 9,001 to 10,000 270.00 10,001 to 15,000 300.00 15,001 to 20,000 450.00 20,001 to 30,000 600.00 30,001 to 40,000 900.00 40,001 to 50,000 1,200.00 50,001 to 75,000 1,500.00 75,001 to 100,000 2,250.00 100,001 and over 3,000.00

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For aircraft that become based in the state after June thirtieth of a calendar year, the registration fee is one-half the annual fee.

2-05-11.1. Definitions.

As used in sections 2-05-11.1 through 2-05-11.3, unless the context otherwise requires:

1. “Antique aircraft” means an aircraft built and originally federally certified by its manufacturer before January 1, 1941.
2. “Classic aircraft” means an aircraft built and originally federally certified by its manufacturer after January 2, 1941, and before January 1, 1948.
3. “Warbird aircraft” means military aircraft no longer in military service.

2-05-11.2. Permanent registration of certain older aircraft.

On making proper application to the commission and paying the fee required under section 2-05-11.3, the owner of an antique, classic, or warbird aircraft may permanently register that aircraft in accordance with this section. An aircraft so registered may be used only for display, airshow demonstration, testing, and maintenance, and preparation flights necessary to maintain flight safety of operations otherwise permitted under this section. An aircraft so registered cannot be used for conducting commercial or private aviation business. An aircraft entitled to a permanent registration may be transferred to a new owner under that permanent registration. The new owner is entitled to permanent registration as long as the owner qualifies in accordance with this section.

2-05-11.3. Fee for a permanent registration — Issuance of registration decal — Disposition of fee.

The fee for a permanent registration under section 2-05-11.2 is one hundred twenty-five dollars. The commission shall prepare a distinctive decal denoting permanent registration under section 2-05-11.2. The fee must be deposited in the aeronautics commission special fund.

2-05-12. Licensing of air schools and aeronautics instructors. [Repealed]

Repealed by S.L. 2011, ch. 57, § 8.

2-05-13. Investigations, hearings.

The commission may hold investigations and hearings concerning matters covered by the provisions of this chapter which must be open to the public and must be held upon such call or notice as the commission deems advisable. Each member of the commission may administer oaths and issue subpoenas.

2-05-14. Enforcement of aeronautics laws.

The commission, its members, the director, officers, and the employees of the commission, and every state patrolman and all peace officers shall enforce and assist in the enforcement of this chapter.

2-05-15. Common carrier certificate required. [Repealed]

Repealed by S.L. 2011, ch. 57, § 8.

2-05-15.1. Bond required. [Repealed]

Repealed by S.L. 2011, ch. 57, § 8.

2-05-16. Filing of tariffs required. [Repealed]

Repealed by S.L. 2011, ch. 57, § 8.

2-05-17. Penalty. [Repealed]

Repealed by S.L. 2011, ch. 57, § 8.

2-05-18. License for aerial spraying — Fees — Rules — Penalty.

A person may not engage in aerial spraying without a license from the North Dakota aeronautics commission. Application must be made by a commercial aerial sprayer in the name of the business and each application must be made upon forms provided by the commission. Upon the payment of a license fee, not to exceed two hundred dollars, and upon compliance with reasonable rules adopted by the commission for the safety and protection of persons and property, the commission shall issue a license to an applicant for an aerial spraying license. The license and fees provided in this section are in addition to any other license or registration required by law, and the proceeds must be deposited in the aeronautics commission special fund. A person violating this section or rules adopted under this section is guilty of a class B misdemeanor.

2-05-19. Cease and desist orders.

The aeronautics commission may issue and serve upon any person, engaged in aerial spraying, an order to cease and desist when the commission has reason to believe the person is violating, has violated, or is attempting to violate this chapter or any rule adopted by the commission. An interested party may appeal the issuance of a cease and desist order under chapter 28-32 by filing written notice of appeal within seven days after service of the order. A hearing must be held within ten days after a notice of appeal has been timely filed. A person who has been issued an order to cease and desist that has been determined to be final either through default or an adjudicative proceeding may not engage in aerial spraying for any other commercial applicator in this state.

2-05-20. Assessment of civil money penalties.

The aeronautics commission may impose civil money penalties against any person willfully violating an order to cease and desist or any provision of this chapter or any of the rules adopted by the commission in an amount not to exceed five hundred dollars for each violation. As used in this section, the term “willfully” means that the person engaged in the conduct intentionally, knowingly, or recklessly. An interested party may appeal the assessment of civil money penalties under chapter 28-32 by filing written notice of appeal within twenty days after service of the assessment of civil money penalties. A civil money penalty collected under this section must be paid to the state treasurer and deposited in the aeronautics commission’s special fund.

2-05-21. Anemometer towers — Definitions — Penalty.

1. As used in this section, unless the context otherwise requires:
   1. “Anemometer” means an instrument for measuring and recording the speed of wind.
   2. “Anemometer tower” means a structure, including all guy wires and accessory facilities, on which an anemometer is mounted for the purposes of documenting wind resources for the operation of a wind turbine generator.
   3. “Commission” means the North Dakota aeronautics commission.
2. An anemometer tower that is fifty feet [15.24 meters] in height above the ground or higher, is located outside the zoning jurisdiction of a city, and the appearance of which is not otherwise regulated by state or federal law must be marked, painted, flagged, or otherwise constructed to be recognizable in clear air during daylight hours and:
   1. Must be painted in equal, alternating bands of orange and white, beginning with orange at the top of the tower and ending with orange at the bottom of the tower;
   2. One or more seven-foot [2.13-meter] safety sleeves must be placed at each anchor point and must extend from the anchor point along each guy wire attached to the anchor point; and
   3. At least one marker ball must be attached to each guy wire in the highest set of guy wires which does not affect the stability of the tower and the measurement of wind speed.
3. The commission may establish and maintain a database that contains locations of all existing anemometer towers by January 1, 2012. The commission may contract with a governmental entity or a private entity to create and maintain the database.
   1. Within sixty days after April 26, 2011, an owner of any anemometer tower erected in the state shall provide the commission with global positioning system coordinates of the center of the anemometer tower.
   2. At least ten days before the erection of an anemometer tower, an owner of the tower shall provide coordinates to the commission.
   3. Within ten days after the removal of an anemometer tower, an owner of the tower shall notify the commission.
4. The commission may enforce this section. A violation of this section is an infraction.

2-05-22. Aeronautics commission special fund.

1. A special fund known as the aeronautics commission special fund is established.
2. The aeronautics commission special fund must be administered and expended by the commission for the following:
   1. Administration of the commission.
   2. Airport construction and improvement projects, including:
      1. Airport administration and terminal buildings, hangers, and landing strips for aircraft;
      2. Purchase of land for airports or landing fields and easements for such facilities;
      3. Maintenance and maintenance equipment; and
      4. Clearing of sites, marking, lighting and engineering, and navigational aids.
   3. Administration, construction, reconstruction, repair, maintenance, and operation of airports near communities, recreational areas, or parks, including the International Peace Garden airport, and for necessary expenses and purchases of land and easements for such facilities.
   4. Expenses related to the duties of the commission as set out in section 2-05-05, including the creation and distribution of education grants.
3. All money derived from the investment of the aeronautics commission special fund or any portion of the fund, including aircraft excise tax funds collected and received under chapter 57-40.5, must be credited to the aeronautics commission special fund.

History. S.L. 2015, ch. 6, § 3, effective July 1, 2015; 2017, ch. 59, § 1, effective July 1, 2017.

2-05-23 Airport infrastructure fund.

There is created in the state treasury the airport infrastructure fund. The fund consists of all moneys deposited in the fund pursuant to chapter 57-51.1. Moneys in the fund may be spent by the aeronautics commission pursuant to legislative appropriations to provide grants to airports for infrastructure projects. Grant funds must be distributed giving priority to projects that have been awarded or are eligible to receive federal funding.

2-06-01. Definitions.

In this chapter:

1. “Airport” means any real or personal property used or intended to be used for the navigation, landing, and taking off of aircraft, and any real or personal property used or intended to be used for airport operations or maintenance, buildings, facilities, rights of way, or approaches and clear zones.
2. “Airport authority” or “authority” means any regional airport authority or municipal airport authority created under this chapter, and the governing body of a municipality exercising the powers of a municipal airport authority.
3. “Airport hazard” means any structure, object, or use of property which obstructs the airspace required for, or is otherwise hazardous to, the flight of aircraft in landing or taking off at an airport.
4. “Bonds” means any bonds, notes, interim certificates, debentures, or similar obligations issued by an authority under this chapter.
5. “Clerk” means the custodian of the official records of a municipality.
6. “Governing body” means the official or officials authorized by law to exercise ordinance or other lawmaking powers of a municipality.
7. “Municipal airport authority” or “municipal authority” means a municipal airport authority created under section 2-06-02.
8. “Municipality” means any county, city, or township of this state.
9. “Real property” means lands, structures, and interests in land, including lands under water and riparian rights, and all things and rights usually included within the term real property, including fee simple absolute and all lesser interests, such as easements, rights of way, uses, leases, licenses, and all other incorporeal hereditaments and every estate, interest, or right, legal or equitable, pertaining to real property.
10. “Regional airport authority” or “regional authority” means a regional airport authority created under section 2-06-03.

2-06-01.1. Aeronautics commission may exercise powers of airport authority — Exceptions.

The North Dakota aeronautics commission has the powers of an airport authority provided in this chapter, except powers to certify or levy taxes or issue bonds, for the purpose of constructing and operating a public airport near the International Peace Garden and other public airports near international border ports of entry, state or national parks, or recreational areas.

2-06-01.2. Airport operation and income.

The aeronautics commission has operational control of airports constructed under section 2-06-01.1 and may provide for the imposition of landing fees, granting of fuel and service concessions, or the lease of portions of the premises for other related airport services or for purposes consistent with the use of the premises for airport purposes. All income from the operation of such airports must be deposited in the state treasury in a special operating fund to be known as the airport operating fund. All expenditures from such fund must be within the limits of legislative appropriations and must be made upon vouchers, signed and approved by the director of the aeronautics commission.

2-06-02. Creation of municipal airport authority — Dissolution.

1. A governing body of a municipality, by resolution, may create a municipal airport authority or choose to exercise the powers provided to a municipal airport authority under this chapter.
2. Upon the adoption of a resolution creating a municipal airport authority, the governing body of the municipality shall appoint five commissioners of the authority. The commissioners who are first appointed must be designated to serve for terms of one, two, three, four, and five years, respectively, but thereafter, each commissioner must be appointed for a term of five years, except that vacancies occurring other than by expiration of term must be filled for the unexpired term by the governing body.
3. Upon the adoption of a resolution to exercise the powers provided to a municipal airport authority under this chapter, the members of the governing body of the municipality constitute the commissioners of the authority.
4. After payment of all debts, a municipal airport authority may be dissolved by resolution of the governing body of the municipality. Before dissolution, the property of the airport authority must be transferred to the municipality or sold, and the net proceeds of sale deposited in the general fund of the municipality.

2-06-03. Regional airport authority creation or expansion — Dissolution.

1. A municipality in North Dakota, by joint resolution with one or more municipalities in North Dakota or an adjoining state, may create a regional airport authority which may exercise its functions upon the issuance by the secretary of state of a certificate of incorporation. Under the joint resolution, the governing bodies of the municipalities participating in the creation of a regional airport authority shall appoint at least five commissioners of the regional airport authority. The number to be appointed and their representation must be provided for in the joint resolution. The commissioners who are first appointed must be designated to serve terms of one, two, three, four, or five years with at least one commissioner’s term expiring each year. Each regional airport authority shall organize, elect officers, and adopt procedural rules consistent with section 2-06-06.
2. A regional airport authority may be expanded to serve one or more additional municipalities if the governing body of each additional municipality, the governing body of each of the municipalities included in the regional authority, and the commissioners of the regional authority each adopt a resolution consenting to the expansion.
3. The area encompassed in a regional airport authority may be decreased if each of the municipalities included in the regional authority and the commissioners of the regional authority consent to the decrease and make provisions for the retention or disposition of its assets and liabilities. If the regional authority has any bonds outstanding, no decrease may be effected unless one hundred percent of the bondholders provide written consent to the decrease.
4. A municipality may not adopt any resolution authorized by this section without a public hearing on the resolution. Ten days prior notice of the hearing must be published in a newspaper published in the municipality or, if there is no newspaper published in the municipality, in a newspaper having general circulation in the municipality.
5. The term of a commissioner of a regional airport authority is five years, except that a vacancy in an unexpired term must be filled for the remainder of the term.
6. After payment of all debts, a regional airport authority may be dissolved by a joint resolution of the governing bodies of the participating municipalities. Before dissolution, the property of the regional airport authority must be sold, transferred, or distributed as agreed by the participating municipalities. Any remaining funds of the regional airport authority must be distributed to the general funds of the participating municipalities in proportion to their support of the regional airport authority.

If a municipal airport authority exists for any municipality seeking to be included in a regional authority, the commissioners of that municipal authority must consent to the inclusion of the municipality in the regional authority. If the municipal authority has any bonds outstanding, one hundred percent of the bondholders must provide written consent to the inclusion of the municipality in the regional authority. Upon the inclusion of any municipality in the regional authority, all rights, contracts, obligations, and property, real and personal, of the municipal authority must be in the name of and vest in the regional authority.

2-06-04. Certificate of incorporation of regional airport authority.

1. Upon the appointment and qualification of the commissioners first appointed to a regional airport authority, the commissioners shall submit to the secretary of state a certified copy of each resolution adopted under section 2-06-03 by the municipalities included in the regional authority, and the secretary of state shall issue a certificate of incorporation to the regional airport authority upon receipt of the resolutions.
2. When a regional airport authority is increased or decreased under section 2-06-03, it shall forward to the secretary of state a certified copy of each resolution adopted under that section, and the secretary of state shall issue an amended certificate of incorporation upon receipt of the resolutions.

2-06-05. Proof of existence of authority. [Repealed]

2-06-06. Commissioners — Compensation — Meetings — Officers.

Each commissioner of an airport authority shall hold office until the commissioner’s successor has been appointed and has qualified. The certificates of the appointment and reappointment of commissioners must be filed with the authority. The appointing authority shall establish the rate of compensation for commissioners, and actual expenses incurred by commissioners may be reimbursed at the official reimbursement rates of the appointing authority.

The powers of each authority are vested in its commissioners. A majority of the commissioners of an authority constitutes a quorum for the purpose of conducting business. Action may be taken by the authority upon a vote of not less than a majority of the commissioners present.

Each authority shall elect a chairman and vice chairman from among the commissioners. An authority may employ an executive director, secretary, technical experts, and other officers, agents, and employees, permanent and temporary, as it may require, and shall determine their qualifications, duties, and compensation. An authority may obtain legal services from the chief law officer of the municipality or municipalities included in the authority or may employ its own legal counsel. An authority may delegate powers or duties to its agents or employees as it deems proper.

2-06-07. General powers of an authority.

An authority has all the powers necessary or convenient to carry out the purposes of this chapter including the power to certify, annually to the governing bodies creating it, the amount of the proposed tax to be levied by the governing bodies for airport purposes within the limitations in section 2-06-15, and the power:

1. To sue and be sued, to have a seal, and to have perpetual succession.
2. To execute contracts and other instruments necessary or convenient to carry out the purposes of this chapter.
3. To plan, establish, acquire, develop, construct, purchase, enlarge, improve, maintain, equip, operate, regulate, and protect airports, within this state and within any adjoining state, including the acquisition, construction, installation, equipment, maintenance, and operation at such airports or buildings and other facilities for the servicing of aircraft or for comfort and accommodation of air travelers, and the purchase and sale of supplies, goods, and commodities as are incident to the operation of its airport properties. For such purposes, an authority may by purchase, gift, devise, lease, eminent domain proceedings, or otherwise acquire property, real or personal, including easements in airport hazards or land outside the boundaries of an airport or airport site, as necessary to permit the removal, elimination, obstruction-marking or obstruction-lighting of airport hazards, or to prevent the establishment of airport hazards.
4. To establish comprehensive airport zoning regulations in accordance with the laws of this state. For the purpose of this chapter, a regional airport authority has the same powers as all other political subdivisions to adopt and enforce comprehensive airport zoning regulations under the laws of this state.
5. To acquire, by purchase, gift, devise, lease, eminent domain proceedings or otherwise, existing airports, provided an authority may not acquire or take over any airport owned or controlled by another authority, a municipality, or public agency of this or any other state without the consent of the authority, municipality, or public agency.
6. To establish or acquire and maintain airports in, over, and upon any public waters of this state, and any submerged lands under such public waters; and to construct and maintain terminal buildings, landing floats, causeways, roadways, and bridges for approaches to or connecting with any airport, and landing floats and breakwaters for the protection of an airport.
7. To establish toll access roadways leading to air carrier terminal buildings. The toll access charge may not exceed one dollar per vehicle.

2-06-08. Eminent domain.

In the acquisition of property by eminent domain proceedings authorized by this chapter, an airport authority shall proceed in the manner provided by chapter 32-15 and other applicable laws. An airport authority may use eminent domain to acquire property acquired by its current owner by eminent domain proceedings. The authority may enter land to make surveys and examinations related to eminent domain proceedings as long as doing so results in no unnecessary damage. Notwithstanding the provisions of any other statute, an authority may take possession of any property to be acquired by eminent domain proceedings at any time after the commencement of the proceedings. The authority may abandon the proceedings at any time before final order and decree of the court having jurisdiction of the proceedings, provided the authority is liable to the owner of the property for any damage done to the property during possession by the authority.

2-06-09. Disposal of airport property.

Except as limited by any grant, loan, or agreement authorized by section 2-06-13, an authority may, by sale, lease, or otherwise, dispose of any airport or other property interest acquired under this chapter. The disposal by sale, lease, or otherwise must be in accordance with the laws of this state governing the disposition of other public property, except that in the case of disposal to another authority, a municipality or an agency of the state or federal government for use and operation as a public airport, the sale, lease, or other disposal may be effected in the manner the commissioners of the authority deem in the best interest of civil aviation.

2-06-10. Bonds and other obligations.

1. An authority may borrow money and issue bonds for any of its corporate purposes, including refunding bonds, in the form and upon the terms as it chooses, payable out of any revenues of the authority, including grants or contributions from the federal government or other sources. The bonds may be sold at not less than ninety-eight percent of par plus the interest accrued on the bonds to the date of the delivery.
2. Bond issues sold at private sale must bear interest at a rate or rates and be sold at a price resulting in an average net interest cost not exceeding twelve percent per annum. There is no interest rate ceiling on those issues sold at public sale or to the state or any of its agencies or instrumentalities.
3. Any bonds issued under this chapter by an authority, or by a governing body exercising the powers of an authority, are payable, as to principal and interest, solely from revenues of an airport and must so state on their face, but if any issue of bonds constitutes an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction, each bond of the issue is, subject to the requirements of subsection 9, an equally valid and binding special obligation of the authority or municipality, in accordance with its terms, in an amount proportionate to the total amount of the issue which is within the limitation or restriction. Neither the commissioners of an authority nor the governing body of a municipality nor any person executing the bonds is liable personally by reason of the issuance, except to the extent the bonds, if constituting an indebtedness, exceed any applicable limitation or restriction.
4. If any commissioners or officers of an authority or municipality whose signatures appear on any bonds or coupons ceases to be a commissioner or officer after authorization but before the delivery of the bonds, the signature of the commissioner or official remains valid and sufficient for all purposes, the same as if the commissioner or officer had remained in office until delivery. Any law to the contrary notwithstanding, any bonds issued under this chapter are fully negotiable.
5. Any bond reciting in substance that it has been issued by the authority or municipality under this chapter and for a purpose authorized by this chapter must be deemed, in any suit, action, or proceeding involving the validity or enforceability of the bond or the security for the bond, to have been issued under this chapter and for that purpose.
6. Bonds issued by an authority or municipality under this chapter are declared to be issued for an essential public and governmental purpose and, together with interest on the bonds, and income from the bonds, are exempt from all taxes.
7. For the security of any such bonds, the authority or municipality may by resolution enter any covenant, agreement, or indenture authorized to be made as security for revenue bonds issued under chapter 40-35. The sums required to pay principal and interest and to create and maintain a reserve for the bonds may be made payable from any revenues referred to in this chapter, before the payment of current costs of operation and maintenance of the facilities.
8. The governing body of a municipality that issues revenue bonds under this chapter shall levy a general tax upon all taxable property in the municipality for the payment of any deficiency in airport authority funds to pay principal or interest due for the bonds before August 1, 2015, and made payable from revenues of an airport authority. The governing body of the municipality may levy a general tax upon all taxable property in the municipality for the payment of any deficiency that is likely to occur within one year in airport authority funds to pay principal or interest due for revenue bonds issued under this chapter before August 1, 2015, and made payable from revenues of an airport authority. The taxes levied by the municipality under this subsection are not subject to any limitation of rate or amount applicable to other municipal taxes.
9. Revenue bonds issued by an airport authority after July 31, 2015, must include the commitment of the municipality for the payment of any deficiency in airport authority funds to pay principal or interest due for revenue bonds as provided in this subsection. The governing body of the municipality shall levy a general tax upon all taxable property in the municipality for the payment of any deficiency in airport authority funds to pay principal or interest due for revenue bonds issued under this chapter after July 31, 2015, and made payable from revenues of an airport authority. The governing body of the municipality may levy a general tax upon all taxable property in the municipality for the payment of any deficiency that is likely to occur within one year in airport authority funds to pay principal or interest due for revenue bonds issued under this chapter after July 31, 2015, and made payable from revenues of an airport authority. The taxes levied by the municipality under this subsection are not subject to any limitation of rate or amount applicable to other municipal taxes. The commitment of the municipality and the issuance of the bonds must be approved by a majority vote of the governing body of each municipality involved or, upon placement of the question on the ballot at a primary, general, or special election, by approval of a majority of the qualified electors of the municipalities voting on the question.

2-06-11. Operation and use privileges.

1. 1. In connection with the operation of an airport owned or controlled by an authority, the authority may enter contracts, leases, and other arrangements for terms not to exceed thirty years with any persons:
      1. Granting the privilege of using or improving the airport or any portion or facility of the airport for commercial purposes;
      2. Conferring the privilege of supplying goods, commodities, things, services, or facilities at the airport; and
      3. Making available services to be furnished by the authority or its agents at the airport.
   2. In each case the authority may establish the terms and conditions and fix the charges, rentals, or fees for the privileges or services, which must be reasonable and uniform for the same class or privilege or service and must be established with due regard to the property and improvements used and the expenses of operation to the authority. However, the public may not be deprived of its rightful, equal, and uniform use of the airport or portion of the airport.
2. Except as may be limited by any grant, loan, or agreement authorized by section 2-06-13, an authority may by contract, lease, or other arrangements, upon a consideration fixed by it, grant to any qualified person for a term not to exceed thirty years the privilege of operating, as agent of the authority or otherwise, any airport owned or controlled by the authority. However, the person may not be granted authority to operate an airport other than as a public airport, and may not enter any contracts, leases, or other arrangements in connection with the operation of the airport which the authority might not have undertaken under subsection 1.

2-06-12. Regulations.

An authority may adopt, amend, and repeal any reasonable resolutions, rules, and orders necessary for the management, government, and use of any airport it owns or controls. An airport authority may not issue any rule, order, or standard inconsistent with, or contrary to, any act of the Congress of the United States or any regulation or standard established under federal law. Each airport authority shall keep on file at the principal office of the authority for public inspection a copy of all its rules.

2-06-13. Federal and state aid.

1. An authority may accept, receive, receipt for, disburse, and expend federal and state moneys and other moneys, public or private, made available by grant or loan or both, to accomplish any of the purposes of this chapter. All federal moneys accepted under this section must be accepted and expended by the authority upon the terms and conditions prescribed by the United States and consistent with state law, and all state moneys accepted under this section must be accepted and expended by the authority upon the terms and conditions prescribed by the state.
2. An authority may designate the state aeronautics commission as its agent to:
   1. Accept, receive, receipt for, and disburse federal and state moneys, and other moneys, public or private, made available by grant or loan or both, to accomplish any of the purposes of this chapter; and
   2. Contract for and supervise the planning, acquisition, development, construction, improvement, maintenance, equipment, or operation of any airport.
3. An authority may enter an agreement with the aeronautics commission prescribing the terms and conditions of the agency in accordance with the terms and conditions prescribed by the United States, if federal money is involved, and in accordance with applicable laws of this state. All federal moneys accepted under this section by the state aeronautics commission must be accepted and transferred or expended by the commission upon the terms and conditions prescribed by the United States. All moneys received by the state aeronautics commission under subsection 2 must be deposited in the state treasury, and unless otherwise prescribed by the agency from which the moneys were received, must be kept in separate funds designated according to the purposes for which the moneys were made available, and held by the state in trust for those purposes.

2-06-14. Tax levy may be requested by airport authority or municipality — Financial report.

An airport authority may request annually from the governing bodies of the municipalities within the authority, an amount of tax to be levied by each municipality, and the municipalities may levy the amount requested, under the law authorizing cities and other political subdivisions of this state to levy taxes for airport purposes. With its levy request under this section, an airport authority may certify its current and anticipated revenues and resources, any anticipated revenue shortfall for bonded debt payment, and the amount necessary from its property tax levy authority for its annual principal and interest payment for bonded debt incurred under this chapter. If the authority finds the certified amount is necessary for the annual bonded debt payment, the municipality shall levy for the airport authority not less than the certified amount. In the year for which the levy is sought, an airport authority that is not a city or county governing body and which is seeking approval of a property tax levy of a city or county governing body under this chapter shall file with the auditor of each participating city or county, at a time and in a format prescribed by the auditors, a financial report for the preceding calendar year showing the ending balances of each fund held by the airport authority during that year. The levy made may not exceed the maximum levy permitted by the laws of this state for airport purposes.

The municipality shall collect the taxes levied for an airport authority in the same manner as other taxes are levied and collected. The proceeds of the taxes must be deposited in a special account in which other revenues of the authority are deposited, and may be expended by the authority as allowed under this chapter.

Before the issuance of bonds under section 2-06-10, the airport authority or the municipality may by resolution provide its commitment under section 2-06-10 that the total amount of taxes then authorized by law, or such portion as may be specified by the resolution, will be certified, levied, and deposited annually until the bonds and interest are fully paid.

2-06-15. Tax levy by county, city, or township for airport or airport authority purposes.

A county, city, or township supporting an airport or airport authority may levy up to four mills for airport or airport authority purposes. If any city or township within the county is levying a tax for support of an airport or airport authority and the total of the county and city or county and township levies exceeds four mills, the county tax levy within the city or township levying under this section must be reduced so the total levy in the city or township does not exceed four mills.

2-06-16. Joint operations.

1. For the purposes of this section, unless otherwise qualified, the term “public agency” includes municipality and authority, any agency of the state government and of the United States, and any municipality, political subdivision, and agency of an adjoining state; and the term “governing body” includes commissioners of an authority, the governing body of a municipality, and the head of an agency of a state or the United States if the public agency is not an authority or municipality. All powers, privileges, and authority granted by this chapter may be exercised by an authority jointly with any public agency of this state, and jointly with any public agency of any adjoining state or of the United States to the extent that the laws of the other state or of the United States permit such joint exercise. Any agency of the state government, when acting jointly with any authority, may exercise all the powers, privileges, and authority conferred by this chapter upon an authority.
2. Any two or more public agencies may enter agreements with each other for joint action under this section. Each agreement must specify its duration, the proportionate interest that each public agency must have in the property, facilities, and privileges involved in the joint undertaking, the proportion of costs to be borne by each public agency, and other terms as necessary or required by law. The agreement may provide for amendments and termination; disposal of the property, facilities, and privileges jointly owned, before, or at such times as the property, facilities, and privileges cease to be used for the purposes provided in this chapter, or upon termination of the agreement; the distribution of the proceeds received upon any disposal, and of any funds or other property jointly owned; the assumption of payment of any indebtedness arising from the joint undertaking which remains unpaid upon the disposal of all assets or upon a termination of the agreement; and other provisions as necessary or convenient.
3. Public agencies acting jointly under this section shall create a joint board consisting of members appointed by the governing body of each participating public agency. The number to be appointed and the term and compensation of the members must be provided for in the joint agreement. Each joint board shall organize, select officers for terms that are fixed by the agreement, and adopt and amend rules for its own procedure. The joint board, as agent of the participating public agencies, may plan, acquire, establish, develop, construct, enlarge, improve, maintain, equip, operate, regulate, protect, and police any airport or airport hazard to be jointly acquired, controlled, and operated, and the participating public agencies may authorize the joint board to exercise all the powers of the constituent public agencies with respect to the airport or airport hazard, subject to the limitations of subsection 4.
4. 1. The total expenditures to be made by the joint board for any purpose in any calendar year must be as determined by a budget approved by the constituent public agencies on or before the preceding December first, or as otherwise specifically authorized by the constituent public agencies.
   2. No airport or airport hazard, or real or personal property, the cost of which is in excess of sums fixed by the joint agreement or allotted in the annual budget, may be acquired, established, or developed by the joint board without the approval of the governing bodies of its constituent public agencies.
   3. Subject to chapter 32-15, the joint board may institute eminent domain proceedings under this section only if the governing bodies of the constituent public agencies of the joint board authorize the board to do so. If authorized, the proceedings must be instituted in the names of the constituent public agencies jointly, and the property acquired must be held by the public agencies as tenants in common.
   4. The joint board may not dispose of any airport or real property under its jurisdiction except with the consent of the governing bodies of its constituent public agencies, except the joint board may, without that consent, enter contracts, leases, or other arrangements contemplated by section 2-06-11.
   5. Any resolutions, rules, or orders of the joint board dealing with subjects authorized by section 2-06-11 become effective only upon approval of the governing bodies of the constituent public agencies. Upon the approval, the resolutions, rules, or orders of the joint board have the same effect in the territories or jurisdictions involved as the ordinances, resolutions, rules, or orders of each public agency would have in its territory or jurisdiction.
5. The joint board shall create a joint fund for the purpose of providing the joint board with moneys for necessary expenditures to carry out this section, and into which must be deposited the share of each of the constituent public agencies as provided by the joint agreement. Any federal, state, or other grants, contributions, or loans, and the revenues obtained from the joint ownership, control, and operation of any airport under the jurisdiction of the joint board must be paid into the joint fund. Disbursements from the fund must be made by order of the board, subject to the limitations prescribed in subsection 4.

2-06-17. Public purpose.

The acquisition of any land, or interest therein, pursuant to this chapter, the planning, acquisition, establishment, development, construction, improvement, maintenance, equipment, operation, regulation, and protection of airports, including the acquisition or elimination of airport hazards, and the exercise of any other powers granted to authorities and other public agencies, to be severally or jointly exercised, are public and governmental functions, exercised for a public purpose, and matters of public necessity. All land and other property and privileges acquired and used by or on behalf of any authority or other public agency in the manner and for the purposes in this chapter are acquired and used for public and governmental purposes and as a matter of public necessity.

2-06-18. Airport property and income exempt from taxation.

Any property in this state acquired by an authority for airport purposes under this chapter, and any income derived by the authority from the ownership, operation, or control of the property, is exempt from taxation to the same extent as other property used for public purpose.

2-06-19. Municipal cooperation.

For the purpose of aiding and cooperating in the planning, undertaking, construction, or operation of airports under this chapter, any municipality for which an authority has been created may, with or without consideration:

1. Lend or donate money to the authority.
2. Provide that all revenues received by the municipality for airport purposes, be transferred, paid, or credited to an airport authority fund. The city auditor or county treasurer may establish and maintain the fund to account for airport authority revenues and shall make payments from the fund for invoices submitted and approved by the governing body of the airport authority. On request of the city auditor or county treasurer and during an audit, the governing board of the airport authority shall supply its records on a timely basis. The fund may not revert to the governing body of the municipality at the end of any fiscal year. The fund must be used exclusively for the establishment and maintenance of airport facilities.
3. Cause water, sewer, or drainage facilities, or any other facilities that it is empowered to provide, to be furnished adjacent to or in connection with airports.
4. Dedicate, sell, convey, or lease any of its interest in any property, or grant easements, licenses, or any other rights or privileges in the property to the authority.
5. Furnish, dedicate, close, pave, install, grade, regrade, plan or replan streets, roads, roadways, and walks from established streets or roads to airports.
6. Do all things not prohibited by law, necessary or convenient to aid and cooperate with the authority in the planning, undertaking, construction, or operation of airports.
7. Enter agreements with the authority respecting action to be taken by the municipality under this section.

2-06-20. Out-of-state airport jurisdiction authorized — Reciprocity with adjoining states and governmental agencies.

1. For the purpose of this section, “governmental agency” means any municipality, city, county, public corporation, or other public agency.
2. This state or any governmental agency of this state having powers with respect to planning, establishing, acquiring, developing, constructing, enlarging, improving, maintaining, equipping, operating, regulating, or protecting airports within this state, may exercise those powers within any state or jurisdiction adjoining this state, subject to the laws of that state or jurisdiction.
3. Any state adjoining this state or any governmental agency thereof may plan, establish, acquire, develop, construct, enlarge, improve, maintain, equip, operate, regulate, and protect airports within this state, subject to the laws of this state applicable to airports. Subject to chapter 32-15, the adjoining state or governmental agency has the power of eminent domain in this state, which must be exercised in the manner provided by the laws of this state governing condemnation proceedings, except the power of eminent domain may not be exercised unless the adjoining state authorizes the exercise of that power in that state by this state or any governmental agency of this state having any of the powers mentioned in this section.
4. The powers granted in this section may be exercised jointly by two or more states or governmental agencies, including this state and its governmental agencies, in such combination agreed upon by them.

2-06-21. Supplemental authority.

In addition to the general and special powers conferred by this chapter, every authority may exercise powers necessary to the exercise of the authority’s general and special powers.

2-06-22. Zoning.

This chapter does not supersede the authority of a municipality to regulate airport hazards by zoning.

2-06-23. Short title. [Repealed]

2-08-01. Definitions.

The following words, terms, and phrases, when used in this chapter, have the meaning ascribed to them in this section, except where the context clearly indicates a different meaning:

1. “Aircraft” includes airplanes and helicopters.
2. “Aircraft dealer” means every person, partnership, association, corporation, or limited liability company engaged in the business of buying, selling, leasing, or exchanging more than three aircraft in any twelve consecutive months, except for a business liquidation of used aircraft, or who advertises or holds out to the public as being engaged in the business of buying, selling, leasing, or exchanging of aircraft. Any person, partnership, association, corporation, or limited liability company doing business in several locations or airports must be considered a separate dealer in each location.
3. “Ultralight vehicle dealer” means every person, partnership, association, corporation, or limited liability company engaged in the business of buying, selling, leasing, or exchanging more than two ultralight vehicles in any twelve consecutive months, or who advertises or holds out to the public as being engaged in the business of buying, selling, leasing, or exchanging of ultralight vehicles. Any person, partnership, association, corporation, or limited liability company doing business in several locations must be considered a separate dealer at each location.
4. “Ultralight vehicles” means piloted vehicles which are flown in airspace and are not required by the federal aviation administration to have a federal certificate of airworthiness. All other piloted ultralight vehicles required to have a federal experimental airworthiness certificate are defined as aircraft.

2-08-02. Exemption.

This chapter does not apply to any person who only leases aircraft to state institutions of higher education.

2-08-03. Aircraft dealer’s license — Fees — Dealer’s place of business.

No person, partnership, association, corporation, or limited liability company may engage in the business of buying, selling, leasing, or exchanging aircraft, or advertise or hold out to the public as being in the business of buying, selling, leasing, or exchanging of aircraft without first being licensed as provided in this chapter.

The aeronautics commission shall prescribe and furnish license and renewal license application forms. A nonrefundable fee of one hundred fifty dollars must accompany each application for each dealer location. A dealer’s license expires on December thirty-first of each year, and application for renewal must be made before the expiration of the current dealer’s license. For each annual one hundred fifty dollar license fee or renewal, the dealer must be issued one dealer’s registration for one demonstrator aircraft. Additional dealer’s demonstrator aircraft registrations must be issued to a licensed dealer upon the payment of ten dollars for each additional demonstrator aircraft, provided such demonstrator aircraft are not used for commercial purposes to produce rental or air taxi revenue, or used for aerial spraying while awaiting sale or trade. All new or used demonstrator aircraft which are for resale but are used by a dealer to produce commercial revenue, or air taxi or rental revenue or for aerial spraying must be registered with the commission and the annual registration fees paid in accordance with the laws of this state. Fees from license applications of aircraft dealers must be deposited with the state treasurer and credited to the aeronautics commission special fund. Fees received for additional aircraft registrations for demonstrator aircraft must be deposited with the state treasurer, who shall deposit such funds in the aeronautics commission special fund.

An applicant for a license or renewal of a license shall submit to the aeronautics commission an inventory of aircraft held by the applicant along with a separate demonstration flight log of time accumulated for those demonstration flights and aircraft tachometer readings for each aircraft on the date of initial application and on November thirtieth before the yearly renewal time. Information on inventory must be provided to the commission on an approved report form. If an aircraft is held in inventory for more than twelve months and is flown more than fifty hours of flight time in any given twelve-month period of time, the commission shall determine if the aircraft is a demonstration aircraft. When the hours flown exceed fifty hours in the twelve-month period, the aircraft is presumed not to be a demonstration aircraft and the aircraft excise tax must be remitted to the aeronautics commission under chapter 57-40.5 unless upon satisfactory proof the aeronautics commission determines the aircraft is used exclusively for demonstration purposes.

The aeronautics commission shall issue dealer’s licenses only to dealers who maintain a permanent place of business on an airport open for public use, whether publicly or privately owned in the state of North Dakota, with runway length, aprons, and safe aircraft approaches adequate for fixed wing aircraft or helicopters of the type sold by such a dealer. An established central place on an airport means that such dealer has an enclosed office, building, or structure owned or leased with adequate facilities and equipment for the maintenance, service, and repair of aircraft. The dealer shall maintain business records in the dealer’s place of business. The dealer’s place of business must be adequate to conduct an aircraft dealer’s business where selling, trading, and bartering of aircraft may be conducted and may not be a residence or temporary quarters or so-called permanent quarters occupied pursuant to temporary arrangements. An applicant for an aircraft dealer’s license cannot qualify with only a privately owned aircraft hangar as a place of business, which is usually used for storage of aircraft on an airport open for public use. An aircraft dealer to qualify for a dealer’s license must maintain an aircraft or helicopter service and repair shop on an airport open for public use with a minimum of five thousand dollars in tools, equipment, aircraft parts, and supplies, as determined by a representative of the director of the aeronautics commission.

The aeronautics commission shall issue a license only after inspection and approval of the aircraft dealer’s facilities.

2-08-04. Ultralight vehicle dealer’s license — Fees — Dealer’s place of business.

No person, partnership, association, corporation, or limited liability company may engage in the business of buying, selling, leasing, or exchanging ultralight vehicles, or advertise or hold out to the public as being in the business of buying, selling, leasing, or exchanging of ultralight vehicles without first being licensed as provided in this chapter.

The aeronautics commission shall prescribe and furnish license and renewal license application forms. A nonrefundable fee of fifty dollars must accompany each application for each dealer location. A dealer’s license expires on December thirty-first of each year, and application for renewal must be made before the expiration of the current dealer’s license. For each annual fifty dollar license fee or renewal, the dealer must be issued one dealer’s registration for one demonstrator ultralight vehicle. Additional dealer’s demonstrator ultralight vehicle registrations must be issued to a licensed dealer upon the payment of ten dollars for each additional demonstrator ultralight vehicle. Fees from license applications of ultralight vehicle dealers and any other fees received for additional demonstrator ultralight vehicle registrations must be deposited in the aeronautics commission special fund.

An ultralight vehicle dealer shall maintain a permanent place of business in North Dakota which may be off or on an airport; provided, if the place of the business is off an airport, such dealer shall maintain a cleared area of sufficient size and length to safely demonstrate ultralight vehicles without undue approach hazards or hazards to other persons or property. The dealer shall maintain business records in the dealer’s place of business. An ultralight dealer to qualify for a dealer’s license shall maintain at least one flyable ultralight vehicle for demonstration purposes and shall maintain a minimum of five hundred dollars in tools, equipment, parts, or supplies to provide service for ultralight vehicles. The aeronautics commission has the option of inspection of each ultralight dealer prior to issuing a dealer’s license or a renewal.

2-08-05. Dealers to furnish information to director of aeronautics commission.

All dealers engaged in the sale of aircraft or ultralight vehicles in this state shall furnish the director of the aeronautics commission and purchasers with information as to model, specification, selling price, with no trade-in allowances, and names and addresses of purchasers and such other data requested by the director of the aeronautics commission as may be necessary in carrying out the provisions of this chapter. All dealers shall keep records of all aircraft and ultralight vehicle sales for two years.

2-08-06. Examination of books and records.

The director of the aeronautics commission or the director’s duly authorized representative may inspect the pertinent books, letters, records, and contracts of any licensed aircraft or ultralight vehicle dealer relating to specific complaints made against such dealer and which may be in violation of any provisions of this chapter or title 2 or 57.

2-08-07. Powers of the aeronautics commission.

In addition to other powers provided by law, the aeronautics commission has the following powers and duties which must be exercised in conformity with this chapter:

1. To cancel, revoke, or suspend a dealer’s license as provided for in this chapter.
2. To prescribe rules and regulations not inconsistent with this chapter governing the application for dealer’s licenses and the cancellation or suspension or revocation of dealer’s licenses.
3. To employ and pay such persons as may be necessary to inspect dealers in this state, investigate dealers for the information needed by the aeronautics commission, to procure evidence in connection with any prosecution or other action to suspend, revoke, or cancel a dealer’s license in relation to any matter in which the aeronautics commission and the director has any duty to perform.

2-08-08. Grounds for denial, suspension, cancellation, or revocation of dealer’s license.

The director of the aeronautics commission may deny an application for a dealer’s license or suspend, revoke, or cancel such a license after it has been granted for the following reasons:

1. For any material misstatement by an applicant in the application for the license.
2. For any willful failure to comply with the provisions of this chapter or with any rule or regulation promulgated by the aeronautics commission.
3. For knowingly permitting any salesperson to sell or exchange, or offer or attempt to sell or exchange, any aircraft or ultralight vehicle except for the licensed dealer by whom the salesperson is employed, or to offer, transfer, or assign any sale or exchange that the salesperson may have negotiated to any other dealer.
4. For having violated any law relating to the sale, distribution, or financing of aircraft or ultralight vehicles.
5. For having ceased to have an established place of business as herein defined.

Such cancellation and revocation shall be done in the manner and according to the procedure described in chapter 28-32.

2-08-09. Dealer permitting license to be used by another dealer — License revoked.

Any dealer who permits the use of that person’s dealer’s license by any other dealer, or permits the use of such license for the benefit of any other dealer, shall have that person’s dealer’s license revoked.

2-08-10. Officers to administer chapter.

The aeronautics commission, its director and staff, is responsible for the administration of the provisions of this chapter.

2-08-11. Penalty for violation of chapter.

Any person violating any of the provisions of this chapter is guilty of an infraction for which a maximum fine of five hundred dollars may be imposed. For a second and subsequent offense, such person shall be guilty of a class B misdemeanor.