Chapter 10. Metropolitan Washington Airports Authority.

Sec.

§ 5.1-152. Definitions.

For the purposes of this act, the following terms and phrases shall mean:

"Authority" shall mean the Metropolitan Washington Airports Authority created by this act and by similar enactment by the District of Columbia or, if the Authority shall be abolished, the board, body, or commission or agency succeeding to the principal functions thereof or upon whom the powers given by this act to the Authority shall be conferred by law;

"Authority Facilities" shall mean any or all airport facilities now existing or hereafter acquired or constructed or caused to be constructed by the Authority under this act, and together with any or all buildings, improvements, additions, extensions, replacements, appurtenances, lands, rights in land, water rights, air rights, franchises, machinery, equipment, furnishings, landscaping, easements, utilities, approaches, roadways and other facilities necessary or desirable in connection therewith or incidental thereto, including the existing Dulles Airport Access Road and its right-of-way, acquired or constructed by the Authority;

"Bonds" or "revenue bonds" shall mean bonds and notes or refunding bonds and notes or bond anticipation notes or other obligations of the Authority issued under the provisions of this act.

"Cost" shall mean, as applied to Authority Facilities, the cost of acquisition of all lands, structures, rights-of-way, franchises, easements and other property rights and interests, the cost of lease payments, the cost of construction, the cost of demolishing, removing or relocating any buildings or structures on lands acquired, including the cost of acquiring any lands to which such buildings or structures may be moved or relocated, the cost of any extensions, enlargements, additions and improvements, the cost of all labor, materials, machinery and equipment, financing charges, interest on all bonds prior to and during construction and, if deemed advisable by the Authority, for a period not exceeding one year after completion of such construction, the cost of engineering, financial and legal services, plans, specifications, studies, surveys, estimates of cost and of revenues, other expenses necessary or incident to determining the feasibility or practicability of constructing the Authority Facilities, administrative expenses, provisions for working capital, reserves for interest and for extensions, enlargements, additions and improvements, the cost of bond issuance and other devices designed to enhance the creditworthiness of the bonds, and such other expenses as may be necessary or incidental to the construction of the Authority Facilities, the financing of such construction and the placing of the Authority Facilities in operation. Any obligation or expenses incurred by the Commonwealth or any agency thereof, with the approval of the Authority, for studies, surveys, borings, preparation of plans and specifications or other work or materials in connection with the construction of the Authority Facilities may be regarded as part of the cost of the Authority Facilities and may be reimbursed to the Commonwealth or such agency out of any funds available therefor or the proceeds of the revenue bonds issued for such Authority Facilities as hereinafter authorized.

(2001, c. 342.)

Cross references. - For effective date of this chapter, see editor's note at § 5.1-178 .

Editor's note. - Acts 2001, c. 342, cl. 2, provides: "That Chapter 598 of the Acts of Assembly of 1985, Chapter 665 of the Acts of Assembly of 1987, Chapter 180 and 610 of the Acts of Assembly of 1991, Chapter 402 of the Acts of Assembly of 1992, Chapters 647 and 661 of the Acts of Assembly of 1997, and Chapter 824 of the Acts of Assembly of 1998 are repealed."

Acts 2001, c. 342, cl. 3, provides: "That it is the intent of the General Assembly, through the passage of this act, to codify the provisions of Chapter 598 of the Acts of Assembly of 1985, Chapter 665 of the Acts of Assembly of 1987, Chapters 180 and 610 of the Acts of Assembly of 1991, Chapter 402 of the Acts of Assembly of 1992, Chapters 647 and 661 of the Acts of Assembly of 1997, and Chapter 824 of the Acts of Assembly of 1998, relating to the Metropolitan Washington Airports Authority, and the provisions of this act shall not be deemed to impair or otherwise affect any regulation promulgated, any contract entered into, any appointment made, or any other action lawfully taken under the provisions of the Acts of Assembly repealed by this act. Accordingly, the provisions of this act are declarative of existing law."

Acts 2003, c. 1012, cl. 1, provides:

" § 1. Limited waiver of sovereign immunity by Commonwealth of Virginia.

"Notwithstanding any contrary provision of Chapter 10 ( § 5.1-152 et seq.) of Title 5.1 of the Code of Virginia, the Commonwealth of Virginia agrees to a limited waiver of its sovereign immunity, not to exceed $5 million, so as to indemnify the Metropolitan Washington Airports Authority against claims, damages, losses, and expenses arising out of, resulting from, or attributable to the Commonwealth's use of Authority property, in or near the Dulles Corridor, on which transportation facilities are constructed, to the extent required in any agreement between the Virginia Department of Transportation and the Authority. For purposes of this act and all provisions of law, "Dulles Corridor" means the transportation corridor with an eastern terminus of the East Falls Church Metrorail station and a western terminus of Route 772 in Loudoun County."

Applied in Cont'l Airlines, Inc. v. United Airlines, Inc., 277 F.3d 499 (4th Cir. 2002); San Jose Constr. Group, Inc. v. Metro. Wash. Airports Auth., 415 F. Supp. 2d 643, 2006 U.S. Dist. LEXIS 5804 (E.D. Va. 2006).

CASE NOTES

CIRCUIT COURT OPINIONS

Authority facilities. - Because a road was part of the Dulles Airport Access Highway, it was recognized as part of the Airport Authority Facilities and an officer had the authority to make a warrantless arrest of the defendant because the road was part of Authority Facilities. Commonwealth v. Selby, - Va. Cir. - , 2002 Va. Cir. LEXIS 285 (Fairfax County Oct. 25, 2002).

OPINIONS OF THE ATTORNEY GENERAL

Whether a particular transportation facility constructed on the Metropolitan Washington Airports Authority property is in or near the Dulles Corridor is a factual determination to be resolved by the Commonwealth Transportation Board. See opinion of Attorney General to The Honorable Whittington W. Clement, Secretary of Transportation, 03-121 (2/17/04).

§ 5.1-153. Metropolitan Washington Airports Authority created.

There is hereby created the Metropolitan Washington Airports Authority, hereafter referred to as the Authority, a public body corporate and politic and independent of all other bodies, having the powers and jurisdiction hereinafter enumerated, and such other and additional powers as shall be conferred upon it by the legislative authorities of both the Commonwealth of Virginia and the District of Columbia.

(2001, c. 342.)

Applied in Washington-Dulles Transp., Ltd. v. Metropolitan Wash. Airports Auth., 263 F.3d 371, 2001 U.S. App. LEXIS 19298 (4th Cir. 2001); San Jose Constr. Group, Inc. v. Metro. Wash. Airports Auth., 415 F. Supp. 2d 643, 2006 U.S. Dist. LEXIS 5804 (E.D. Va. 2006).

CASE NOTES

CIRCUIT COURT OPINIONS

Sovereign immunity barred claims. - In an action filed by a group of residents against various state entities and an airport authority seeking both declaratory and injunctive relief, and alleging that the transfer of a toll road and toll revenue derived therefrom from the Commonwealth defendants to the airport authority was an unlawful delegation or assignment, and an unlawful transfer of state assets and the legislative ability to tax, demurrers and pleas in bar filed against said complaint were granted, and the case was dismissed, as the doctrine of sovereign immunity barred consideration of said claims. Gray v. Va. Secy. of Transp., 74 Va. Cir. 30, 2007 Va. Cir. LEXIS 150 (Richmond 2007).

§ 5.1-154. Acquisition of airports; approval.

The Metropolitan Washington Airports Authority created by this act is hereby authorized, when similarly authorized by the District of Columbia, to acquire from the United States of America, by lease or otherwise, the two airports known as Ronald Reagan Washington National Airport and Washington Dulles International Airport and all related properties now administered by the Metropolitan Washington Airports, an agency of the Federal Aviation Administration of the United States Department of Transportation, but only with the approval of the Governor of Virginia. Subject to such gubernatorial approval, general consent is hereby given to conditions imposed by the Congress of the United States on such acquisitions that are not inconsistent with this act.

(2001, c. 342.)

Applied in San Jose Constr. Group, Inc. v. Metro. Wash. Airports Auth., 415 F. Supp. 2d 643, 2006 U.S. Dist. LEXIS 5804 (E.D. Va. 2006).

§ 5.1-155. Membership; terms; officers.

  1. The Authority shall consist of thirteen members: five appointed by the Governor of the Commonwealth of Virginia, three appointed by the Mayor of the District of Columbia, two appointed by the Governor of the State of Maryland, and three appointed by the President of the United States. Members representing the Commonwealth of Virginia shall be subject to confirmation by the Virginia General Assembly. For the purposes of doing business, seven members shall constitute a quorum. The failure of a single appointing official to appoint one or more members, as herein provided, shall not impair the Authority's creation when the other conditions thereof have been met.
  2. Members shall (i) not hold elective or appointive public office, (ii) serve without compensation, and (iii) reside within the Washington Standard Metropolitan Statistical Area, except that the members appointed by the President of the United States shall be registered voters of states other than Maryland, Virginia, or the District of Columbia. The members of the Authority shall be entitled to reimbursement for their expenses incurred in attendance upon the meetings of the Authority or while otherwise engaged in the discharge of their duties.
  3. Appointments to the Authority shall be for a period of six years. However, initial appointments shall be made as follows: each jurisdiction shall appoint one member for a full six-year term, a second member for a four-year term, and, in the case of the Commonwealth and the District of Columbia, a third member for a two-year term. The Governor of Virginia shall make the final two Virginia initial appointments for one two-year and one four-year term. The President shall make subsequent appointments for six-year terms. The President shall make one of the initial appointments pursuant to the Metropolitan Washington Airports Amendments Act of 1996 for a four-year term.
  4. Eight affirmative votes shall be required to approve bond issues and the annual budget of the Authority.
  5. Each member may be removed or suspended from office only for cause, and in accordance with the laws of the jurisdiction from which he is appointed.
  6. The Authority shall annually elect one of its members as chairman and another as vice-chairman and shall also elect annually a secretary and a treasurer, or a secretary-treasurer, who may or may not be members of the Authority, and prescribe their powers and duties. The Authority may also appoint from its staff an assistant secretary and an assistant treasurer, or an assistant secretary-treasurer, who shall, in addition to other duties, discharge such functions of the secretary and the treasurer.
  7. The members of the Authority shall continue to serve until their successors shall be duly appointed. Any person appointed to fill a vacancy shall serve for the unexpired term. Any member of the Authority shall be eligible for reappointment for one term.
  8. The members of the Authority, including any nonvoting members, shall not be personally liable for any act done or action taken in their capacities as members of the Authority, nor shall they be personally liable for any bond, note or other evidence of indebtedness issued by the Authority.

    (2001, c. 342.)

§ 5.1-156. Powers and duties of the Authority.

  1. For the purpose of acquiring, operating, maintaining, developing, promoting and protecting Ronald Reagan Washington National Airport and Washington Dulles International Airport together as primary airports for public purposes serving the metropolitan Washington area, the Authority shall have all necessary or convenient powers including, but not limited to, the power:
    1. To adopt and amend bylaws for the regulation of its affairs and the conduct of its business;
    2. To plan, establish, operate, develop, construct, enlarge, maintain, equip and protect the airports;
    3. To adopt and amend regulations to carry out the powers granted by this section;
    4. To adopt an official seal and alter the same at its pleasure;
    5. To appoint one or more advisory committees;
    6. To issue revenue bonds of the Authority for any of its purposes, payable solely from the fees and revenues pledged for their payment, and to refund its bonds, all as provided in this act;
    7. To borrow money on a short-term basis and issue from time to time its notes therefor payable on such terms, conditions or provisions as it may deem advisable;
    8. To fix, revise, charge, and collect rates, fees, rentals and other charges for the use of the airports;
    9. To acquire, hold and dispose of real and personal property in the exercise of its powers and the performance of its duties under this act;
    10. To employ, in its discretion, consulting engineers, attorneys, accountants, construction and financial experts, superintendents, managers, and such other employees and agents as may be necessary, and to fix their compensation and benefits. Employees of the Authority shall not participate in any strike or assert any right to strike against the Authority, and any employment agreement entered into by the Authority shall contain an explicit prohibition against strikes by the employee or employees covered by such agreement. The Authority shall comply with any act of Congress concerning former employees of the Federal Aviation Administration and Metropolitan Washington Airports;
    11. To sue and be sued in its own name, plead and be impleaded;
    12. To construct or permit the construction of commercial and other facilities consistent with the purposes of this act upon the airport property on terms established by the Authority;
    13. To make and enter into all contracts and agreements necessary or desirable to the performance of its duties, the proper operation of the airports and the furnishing of services to the travelling public and airport users, including contracts for normal governmental services on a reimbursable basis with local political subdivisions where the Authority Facilities are situated and with the District of Columbia government; and any such contracts shall be exclusive or limited when it is necessary to further the public safety, improve the quality of service, avoid duplication of services, or conserve airport property and the airport environment;
    14. To apply for, receive and accept such payments, appropriations, grants, gifts, loans, advances, and other funds, properties, and services as may be transferred or made available to it by the United States government or any other public or private entity or individual;
    15. To make payments to reimburse the local political subdivisions where the Authority Facilities are situated for extraordinary law-enforcement costs incurred by such localities; and
    16. To do all acts and things necessary or convenient to carry out the powers expressly granted in this act.
  2. Pursuant to Section 6007 (b) of the Metropolitan Washington Airports Act of 1986, the Authority is established solely to operate and improve both metropolitan Washington airports as primary airports serving the metropolitan Washington area and shall be independent of the Commonwealth and its local political subdivisions, the District of Columbia and the federal government in the performance and exercise of the airport-related duties and powers enumerated in subdivisions 1 through 16 of subsection A of this section. Any conflict between the exercise of these enumerated powers by the Authority and the powers of any local political subdivision within which Authority Facilities are situated shall be resolved in favor of the Authority.

    (2001, c. 342.)

Applied in Washington-Dulles Transp., Ltd. v. Metropolitan Wash. Airports Auth., 263 F.3d 371, 2001 U.S. App. LEXIS 19298 (4th Cir. 2001); San Jose Constr. Group, Inc. v. Metro. Wash. Airports Auth., 415 F. Supp. 2d 643, 2006 U.S. Dist. LEXIS 5804 (E.D. Va. 2006).

CASE NOTES

CIRCUIT COURT OPINIONS

Illustrative cases. - Maintenance of airport runways was a proprietary function under Virginia law, and the Metropolitan Washington Airports Authority was not immune from suit by an airline which claimed that its plane was damaged when it hit debris that was on a runway. Alpine Air, Inc. v. Metro. Wash. Airports Auth., 62 Va. Cir. 215, 2003 Va. Cir. LEXIS 106 (Fairfax County 2003).

Sovereign immunity barred claims. - In an action filed by a group of residents against various state entities and an airport authority seeking both declaratory and injunctive relief, and alleging that the transfer of a toll road and toll revenue derived therefrom from the Commonwealth defendants to the airport authority was an unlawful delegation or assignment, and an unlawful transfer of state assets and the legislative ability to tax, demurrers and pleas in bar filed against said complaint were granted, and the case was dismissed, as the doctrine of sovereign immunity barred consideration of said claims. Gray v. Va. Secy. of Transp., 74 Va. Cir. 30, 2007 Va. Cir. LEXIS 150 (Richmond 2007).

§ 5.1-157. Authority rules and regulations; penalty.

  1. The Authority shall have the power to adopt, amend, and repeal rules and regulations pertaining to use, maintenance and operation of its facilities and governing the conduct of persons and organizations using its facilities.
  2. Unless the Authority shall by unanimous vote of all members present determine that an emergency exists, the Authority shall, prior to the adoption of any rule or regulation or alteration, amendment or modification thereof:
    1. Make such rule, regulation, alteration, amendment, or modification in convenient form available for public inspection in the office of the Authority for at least ten days;
    2. Publish a notice in a newspaper or newspapers of general circulation in the District of Columbia and in the local political subdivisions of the Commonwealth where the Authority Facilities are located declaring the Authority's intention to consider adopting such rule, regulation, alteration, amendment, or modification and informing the public that the Authority will hold a public hearing at which any person may appear and be heard for or against the adoption of such rule or regulation or such alteration, amendment, or modification, on a day and at a time to be specified in the notice, after the expiration of at least ten days from the day of the publication thereof; and
    3. Hold the public hearing on the day and at the time specified in such notice or any adjournment thereof, and hear persons appearing for or against such rule, regulation, alteration, amendment or modification.
  3. The Authority's rules and regulations shall be available for public inspection in the Authority's principal office.
  4. The Authority's rules and regulations relating to:
  5. The violation of any rule or regulation of the Authority establishing a noise limitation on aircraft that operate at the Authority Facilities shall subject the violator, in the discretion of the circuit court of any political subdivision where the facility is located, to a civil penalty not to exceed $5,000 for each violation. Such penalty shall be paid to the Authority. With the consent of the violator or the accused violator of a rule establishing aircraft noise limits, the Authority may provide, in an order issued against the violator or accused violator, for the payment of civil charges in specific sums not to exceed the limit that could be imposed by the court. Such civil charge when paid shall be in lieu of any civil penalty which could be imposed by the court. Any court proceeding shall be within the exclusive jurisdiction of the circuit court and shall be a civil proceeding at law brought by the Authority.
  6. The violation of any Authority rule or regulation, having the force and effect of law, shall be a Class 1 misdemeanor unless otherwise specified by this chapter or unless a lesser penalty is set by the Authority in the rule or regulation. The rules of criminal procedure and evidence that apply throughout the Commonwealth shall apply to the adjudication of any case involving the violation of any Authority rule or regulation having the force and effect of law.
  7. The courts of this Commonwealth shall take judicial notice of the Authority's regularly adopted rules and regulations. For the convenience of the courts which may regularly hear cases arising under the Authority's rules and regulations, the Authority may certify to the clerk of such court a copy of its rules and regulations. Any such certification, when signed by the chairman of the Metropolitan Washington Airports Authority, shall be accepted as evidence of the facts therein stated.
  8. With respect to the violation of any statute of the Commonwealth, local ordinance or Authority rule or regulation having the force and effect of law occurring at the Authority Facilities:
    1. The matter shall be within the jurisdiction of the state courts of the political subdivision where the violation occurred; violations occurring at Ronald Reagan Washington National Airport shall be within the jurisdiction of the courts for Arlington County;
    2. The attorney for the Commonwealth shall have authority to prosecute those offenses in the name of the Commonwealth or local government as appropriate; and the county or city attorney, if otherwise authorized to prosecute offenses in the name of the county or city, shall have authority to prosecute those offenses in the name of the county or city; and
    3. Sheriffs and clerks of the court shall provide those same services and exercise those same powers with respect to the Authority Facilities within their jurisdiction as for their political subdivisions.

      (2001, c. 342.)

  1. Air operations and motor vehicle traffic, including but not limited to, motor vehicle speed limits and the location of and payment for public parking;
  2. Access to and use of Authority Facilities, including but not limited to, solicitation, handbilling, picketing and the conduct of commercial activities; and
  3. Aircraft operation and maintenance; shall have the force and effect of law, as shall any other rule or regulation of the Authority which shall contain a determination by the Authority that it is necessary to accord the same force and effect of law in the public interest; provided, however, that with respect to motor vehicle traffic rules and regulations, the Authority shall obtain the approval of the traffic engineer or comparable official of the local political subdivision in which such rules or regulations are to be enforced.

Cross references. - As to punishment for Class 1 misdemeanor, see § 18.2-11.

§ 5.1-158. Police.

  1. The Commonwealth hereby grants, accepts and agrees to concurrent police power authority over the Metropolitan Washington Airports as provided in Section 6009 (c) of the Metropolitan Washington Airports Act of 1986.
  2. The Authority is authorized to establish and maintain a regular police force and to confer police powers to be exercised with respect to offenses occurring on the Authority Facilities upon its employees meeting the minimum requirements of the Department of Criminal Justice Services.

    Such police officers shall have all powers vested in police officers under Chapter 17 of Title 15.2, Chapter 11 of Title 16.1, Title 18.2, Title 19.2, and Title 46.2 of the Code of Virginia as those titles may be amended from time to time and shall be responsible upon the Authority Facilities and within 300 yards of the Facilities for enforcing the laws of the Commonwealth, the Authority's rules and regulations and all other applicable ordinances, rules, and regulations.

    Such police officers may issue summons to appear, or arrest on view or on information without warrant as permitted by law, and conduct before any judicial officer of competent jurisdiction any person violating, upon Authority Facilities, any rule or regulation of the Authority, any ordinance or regulation of any local political subdivision, or any other law of the Commonwealth.

  3. The Department of State Police shall exercise the same powers upon Authority Facilities as elsewhere in the Commonwealth.
  4. The Authority may enter into reciprocal or mutual aid agreements with the local political subdivisions in the National Capital Region as defined in § 2674(f)(2) of title 10 of the United States Code, those counties with a border abutting that area, and any municipalities therein; any agency of the Commonwealth, the District of Columbia, the State of Maryland; the federal government; or any combination of the foregoing for cooperation in the furnishing of services during a public service event, an emergency, or planned training, including law-enforcement, fire, rescue, emergency health, and medical services, transportation, communications, public works and engineering, mass care, and resource support. When responding to a request under such an agreement, Authority employees may go outside Authority facilities, and the Authority and its employees shall enjoy the same immunities from liability as localities and their employees do in responding under similar circumstances.
  5. The police force of Arlington County shall have concurrent jurisdiction with the police force established herein at Ronald Reagan Washington National Airport. The Authority shall enter into an agreement with Arlington County regarding the exercise of police authority.
  6. The sheriffs and police forces of Loudoun and Fairfax Counties shall continue to exercise concurrent jurisdiction with the police force established herein over the Authority Facilities situated within their respective counties.

    (2001, c. 342; 2007, cc. 729, 742.)

The 2007 amendments. - The 2007 amendments by cc. 729 and 742 are nearly identical, and rewrote subsection D, which formerly read: "The Authority may enter into reciprocal or mutual aid agreements with the local political subdivisions in which the Authority Facilities are situated, any agency of the Commonwealth or the federal government, or any combination of the foregoing, for cooperation in the furnishing of police services."

§ 5.1-159. Operation of foreign trade zone.

The Authority is authorized and empowered to establish, operate and maintain a foreign trade zone and otherwise to expedite and encourage foreign commerce.

(2001, c. 342.)

§ 5.1-160. Acquisition of property; eminent domain.

  1. The Authority is hereby authorized to acquire by purchase, lease or grant such additional lands, structures, property, rights, rights-of-way, franchises, easements and other interests in lands as it may deem necessary or convenient for construction and operation of the airports, upon such terms and at such prices as may be considered by it to be reasonable and can be agreed upon between it and the owner thereof.
  2. Any political subdivision of the Commonwealth, all or a part of which is located within 60 miles of Authority Facilities, is authorized to provide services, to donate real or personal property and to make appropriations to the Authority for the acquisition, construction, maintenance, and operation of the Authority Facilities. Any such political subdivision is hereby authorized to issue its bonds in the manner provided in the Public Finance Act or in any applicable municipal charter for the purpose of providing funds to be appropriated to the Authority. The Authority may agree to assume, or reimburse such a political subdivision for, any indebtedness incurred by such political subdivision with respect to facilities conveyed by it to the Authority. With the consent of the governing body of the political subdivision, any such agreement may be made subordinate to the Authority's indebtedness to others.
  3. The Authority established hereunder is hereby granted full power to exercise the right of eminent domain in the acquisition of any lands, easements, privileges or other property interests that are necessary for airport and landing field purposes, including the right to acquire, by eminent domain, aviation easements over lands or water outside the boundaries of its airports or landing fields where necessary in the interests of safety for aircraft to provide unobstructed air space for the landing and taking off of aircraft utilizing its airports and landing fields even though such aviation easement be inconsistent with the continued use of such land, or inconsistent with the maintenance, preservation and renewal of any structure or any tree or other vegetation standing or growing on the land at the time of such acquisition. Proceedings for the acquisition of such lands, easements and privileges by condemnation may be instituted and conducted in the name of the Authority in accordance with Chapter 2 (§ 25.1-200 et seq.) of Title 25.1.

    (2001, c. 342; 2003, c. 940.)

The 2003 amendments. - The 2003 amendment by c. 940 substituted "60" for "sixty" in subsection B; and in subsection C, substituted "that" for "which" in the first sentence and substituted "Chapter 2 ( § 25.1-200 et seq.) of Title 25.1" for "Title 25 of the Code of Virginia" in the last sentence.

§ 5.1-161. Revenue bonds.

The Authority is hereby authorized to provide by resolution for the issuance, at one time or from time to time, of revenue bonds of the Authority for the purpose of paying all or any part of the cost of Authority Facilities, including the refunding of federal appropriations not reimbursed to the United States Treasury by the Metropolitan Washington Airports. The principal of and the interest on such bonds shall be payable solely from the funds herein provided for such payment. The bonds of each issue shall be dated, shall mature at such time or times not exceeding forty years from their date or dates, as may be determined by the Authority, and may be subject to redemption or repurchase before maturity, at the option of the Authority, at such price or prices and under such terms and conditions as may be fixed by the Authority prior to the issuance of the bonds. The bonds may bear interest payable at such time or times and at such rate or rates as determined by the Authority or as determined in such manner as the Authority may provide, including the determination by agents designated by the Authority under guidelines established by it. The Authority shall determine the form and the manner of execution of the bonds, including any interest coupons to be attached thereto, and shall fix the denomination or denominations of the bonds and the place or places of payment of principal and interest, which may be at any bank or trust company within or without the Commonwealth of Virginia. In case any officer whose signature or a facsimile of whose signature shall appear on any bonds or coupons shall cease to be such officer before the delivery of such bonds, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes the same as if he had remained in office until such delivery. Notwithstanding any other provision of this act or any recitals in any bonds issued under the provisions of this section, all such bonds shall be deemed to be negotiable instruments under the laws of the Commonwealth of Virginia. The bonds may be issued in coupon or in registered form, or both, as the Authority may determine, and provision may be made for the registration of any coupon bonds as to principal alone and also as to both principal and interest, for the reconversion into coupon bonds of any bonds registered as to both principal and interest, and for the interchange of registered and coupon bonds. The Authority may sell such bonds in such manner, either at public or negotiated sale, and for such price, as it may determine will best effect the purposes of this section.

The proceeds of the bonds shall be used solely for the payment of the cost of Authority Facilities, including improvements, and shall be disbursed in such manner and under such restrictions, if any, as the Authority may provide in the resolution authorizing the issuance of such bonds or in the trust agreement hereinafter mentioned securing the same. If the proceeds of the bonds of any issue, by error of estimates or otherwise, shall be less than such cost, additional bonds may in like manner be issued to provide the amount of such deficit, and, unless otherwise provided in the resolution authorizing the issuance of such bonds or in the trust agreement securing the same, shall be deemed to be of the same issue and shall be entitled to payment from the same fund without preference or priority of the bonds first issued. If the proceeds of the bonds of any issue shall exceed such cost, the surplus shall be deposited to the credit of the sinking fund for such bonds.

Prior to the preparation of definitive bonds, the Authority may, under like restrictions, issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when such bonds shall have been executed and are available for delivery. The Authority may also provide for the replacement of any bonds which shall become mutilated or shall be destroyed or lost. Bonds may be issued under the provisions of this section without obtaining the consent of any agency of the Commonwealth of Virginia, and without any other proceedings, conditions or things not specifically required by this section.

(2001, c. 342.)

§ 5.1-162. Refunding bonds.

The Authority is hereby authorized to provide by resolution for the issuance of its revenue refunding bonds for the purpose of refunding any bonds then outstanding which shall have been issued under the provisions of this act, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption of such bonds, and if deemed advisable by the Authority, for either or both of the following additional purposes: constructing improvements, extensions or enlargement of the Authority Facilities in connection with which the bonds to be refunded shall have been issued, and paying all or any part of the cost of any additional Authority Facilities. The issuance of such bonds, the maturities and other details thereof, the rights of the holders thereof, and the rights, duties and obligations of the Authority in respect to the same, shall be governed by the provisions of this act insofar as the same may be applicable. Revenue refunding bonds issued under this section may be sold or exchanged for outstanding bonds issued under this act and, if sold, the proceeds thereof may be applied to the purchase, redemption or payment of such outstanding bonds.

(2001, c. 342.)

§ 5.1-163. Pledge of funds.

All moneys received pursuant to the provisions of this act, whether as proceeds from the sale of bonds, as revenues, or as grants, appropriations or other funds provided by federal, state or local governments, may be pledged to the payment of bonds issued by the Authority and, if so pledged, shall be deemed to be trust funds to be held and applied solely as provided in this act.

(2001, c. 342.)

§ 5.1-164. Marketability of bonds.

The Authority is authorized and empowered to exercise all or any part or combination of the powers herein granted; to make covenants other than and in addition to the covenants herein expressly authorized, of like or different character; and to make such covenants and to do any and all such acts and things as may be necessary or convenient or desirable in order to secure its bonds or, in the absolute discretion of the Authority, as will tend to make the bonds more marketable, notwithstanding that such covenants, acts or things may not be enumerated herein.

(2001, c. 342.)

§ 5.1-165. Bonds as legal investments and security for public deposits.

Bonds issued by the Authority under the provisions of this act are hereby made securities in which all public officers and public bodies of the Commonwealth and its political subdivisions, all insurance companies, trust companies, banking associations, investment companies, executors, administrators, trustees and other fiduciaries may properly and legally invest funds, including capital in their control or belonging to them. Such bonds are hereby made securities which may properly and legally be deposited with and received by any state or municipal officer or any agency or political subdivision of the Commonwealth for any purpose for which the deposit of bonds or obligations is now or may hereafter be authorized by law.

(2001, c. 342.)

§ 5.1-166. Credit of Commonwealth and political subdivisions not pledged.

Revenue bonds issued under the provisions of this act shall not constitute a debt of the Commonwealth of Virginia or of any other political subdivision thereof nor a pledge of the faith and credit of the Commonwealth or of any political subdivision thereof. Such bonds shall be payable solely from funds provided therefor from revenues. The issuance of revenue bonds under the provisions of this act shall not directly, indirectly, or contingently obligate the Commonwealth or any political subdivision thereof to the payment thereof or to the levy or pledge of any form of taxation whatever therefor. All such revenue bonds shall contain a statement on their face substantially to this effect.

(2001, c. 342.)

§ 5.1-167. Trust agreement.

In the discretion of the Authority, any bonds issued under the provisions of this act may be secured by a trust agreement by and between the Authority and a corporate trustee, which may be any trust company or bank having the power of a trust company within or without the Commonwealth of Virginia. Such trust agreement or the resolution providing for the issuance of such bonds may pledge or assign the fees and other revenues to be received, but shall not convey or mortgage the airports or any part thereof. Such trust agreement or resolution providing for the issuance of such bonds may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of the Authority in relation to the acquisition of property and the construction, improvement, maintenance, repair, operation and insurance of the airports, the rates or fees or other charges to be charged, and the custody, safeguarding and application of all moneys. It shall be lawful for any bank or trust company incorporated under the laws of the Commonwealth of Virginia which may act as depositary of the proceeds of bonds or of revenues to furnish such indemnifying bonds or to pledge such securities as may be required by the Authority. Any such trust agreement may set forth the rights and remedies of the bondholders. In addition to the foregoing, any such trust agreement or resolution may contain such other provisions as the Authority may deem reasonable and proper for the security of the bondholders. All expenses incurred in carrying out the provisions of such trust agreement or resolution may be treated as a part of the cost of the operation of the airports.

(2001, c. 342.)

§ 5.1-168. Revenues.

The Authority is hereby authorized to fix, revise, charge and collect fees or other charges for the use of the airports and to contract with any person, partnership, association or corporation desiring the use of any part thereof, including the right-of-way adjoining the airports for placing thereon telephone, telegraph, electric light or power lines, and to fix the terms, conditions, rents and fees or other charges for such use. Such fees or other charges shall be so fixed and adjusted in respect of the aggregate of fees or other charges from the airports as to provide a fund sufficient with other revenues, if any, (i) to pay the cost of maintaining, repairing and operating the airports, (ii) to pay the principal of and interest on such bonds as the same shall become due and payable, and (iii) to create reserves for such purposes. The fees and other charges and all other revenues derived from the airports, except such part thereof as may be necessary to pay such cost of maintenance, repair and operation and provide such reserves as may be provided for in the resolution authorizing the issuance of such bonds or in the trust agreement securing the same, shall be set aside at such regular intervals as may be provided in such resolution or such trust agreement in a sinking fund which is hereby pledged to, and charged with, the payment of the principal of and the interest on such bonds as the same shall become due, and the redemption price or the purchase price of bonds retired by call or purchase as therein provided. Such pledge shall be valid and binding from the time when the pledge is made. The fees and other charges and other revenues or other moneys so pledged and thereafter received by the Authority shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the Authority, irrespective of whether such parties have notice thereof. Neither the resolution nor any trust agreement by which a pledge is created need be filed or recorded except in the records of the Authority. The use and disposition of moneys to the credit of such sinking fund shall be subject to the provisions of the resolution authorizing the issuance of such bonds or of such trust agreement. Except as may otherwise be provided in such resolution or such trust agreement, such sinking fund shall be a fund for all such bonds without distinction or priority of one over another.

(2001, c. 342.)

§ 5.1-169. Trust funds.

All proceeds from the sale of bonds and revenues derived therefrom received pursuant to the provisions of this act shall be deemed to be trust funds to be held and applied solely as provided in this act. The Authority may, in the resolution authorizing the bonds or in the trust agreement securing such bonds, provide for the payment of the proceeds of the sale of the bonds and the revenues of the Authority to a trustee, which may be any trust company or bank having the powers of a trust company within or without the Commonwealth of Virginia, which shall act as trustee of the funds, and hold and apply the same to the purposes of this act, subject to such regulations as this act and such resolution or trust agreement may provide. The trustee may invest and reinvest such funds in such securities as may be provided in the resolution authorizing the bonds or in the trust agreement securing such bonds.

(2001, c. 342.)

§ 5.1-170. Annual audit.

The Authority shall keep suitable records of all its financial transactions and shall have the same audited annually. Copies of such audit shall be furnished to the Governor of the Commonwealth of Virginia and to the Mayor of the District of Columbia and shall be open to public inspection.

(2001, c. 342.)

§ 5.1-171. Remedies.

Any holder of bonds issued under the provisions of this act or of any of the coupons appertaining thereto, and the trustee under any trust agreement, except to the extent the rights herein given may be restricted by such trust agreement, may either at law or in equity, by suit, action, injunction, mandamus or other proceedings, protect and enforce any and all rights under the laws of the Commonwealth of Virginia, or granted by this act or under such trust agreement or the resolution authorizing the issuance of such bonds and may enforce and compel the performance of all duties required by this act or by such agreement or resolution to be performed by the Authority or by any officer or agent thereof including the fixing, charging and collection of fees or other charges.

(2001, c. 342.)

§ 5.1-172. Exemption from taxation.

The exercise of the powers granted by this act shall be in all respects for the benefit of the inhabitants of the Commonwealth of Virginia, for the increase of their commerce, and for the promotion of their safety, health, welfare, convenience and prosperity, and as the operation and maintenance of the airports by the Authority will constitute the performance of essential governmental functions, the Authority shall not be required to pay any taxes or assessments upon the airports or any property acquired or used by the Authority under the provisions of this act or upon the income therefrom; and the bonds issued under the provisions of this act, their transfer and the income therefrom, including any profit made on the sale thereof, shall at all times be free and exempt from taxation by the Commonwealth of Virginia and by any municipality, county or other political subdivision thereof.

(2001, c. 342.)

§ 5.1-173. Jurisdiction of courts; liability for contracts and torts.

  1. The courts of the Commonwealth of Virginia shall have original jurisdiction of all actions brought by or against the Authority, which courts shall in all cases apply the law of the Commonwealth of Virginia.
  2. The Authority shall be liable for its contracts and for its torts and those of its members, officers, employees, and agents committed in the conduct of any proprietary function, in accordance with the law of the Commonwealth of Virginia but shall not be liable for any torts occurring in the performance of a governmental function. The exclusive remedy for such breach of contracts and torts for which the Authority shall be liable, as herein provided, shall be by suit against the Authority. Nothing in this act shall be construed as a waiver by the Commonwealth of Virginia or the District of Columbia or of their political subdivisions of any immunity from suit.
  3. The Authority shall be responsible for all executory contracts entered into by the United States with respect to the former Metropolitan Washington Airports before the date of acquisition of those airports, except that the procedure for disputes resolution contained in any such contract shall continue to govern the performance of the contract unless otherwise agreed to by the parties to the contract.
  4. The Authority shall not be responsible for any tort claims arising before the date of transfer.

    (2001, c. 342.)

CASE NOTES

Venue. - In a case involving the Metropolitan Washington Airports Authority, the Court granted the motion to transfer venue to the Eastern District of Virginia where private interest factors did not outweigh public interest factors such as the Virginia Court's familiarity with Virginia law, relative congestion of court calendars and the local interest in deciding local controversies at home. Parkridge 6, LLC v. United States DOT,, Civil Action No. 09-cv-01478(GK), 2009 U.S. Dist. LEXIS 104039 (D.D.C. November 9, 2009).

Applied in Washington-Dulles Transp., Ltd. v. Metropolitan Wash. Airports Auth., 263 F.3d 371, 2001 U.S. App. LEXIS 19298 (4th Cir. 2001); San Jose Constr. Group, Inc. v. Metro. Wash. Airports Auth., 415 F. Supp. 2d 643, 2006 U.S. Dist. LEXIS 5804 (E.D. Va. 2006).

CIRCUIT COURT OPINIONS

Sovereign immunity barred claims. - In an action filed by a group of residents against various state entities and an airport authority seeking both declaratory and injunctive relief, and alleging that the transfer of a toll road and toll revenue derived therefrom from the Commonwealth defendants to the airport authority was an unlawful delegation or assignment, and an unlawful transfer of state assets and the legislative ability to tax, demurrers and pleas in bar filed against said complaint were granted, and the case was dismissed, as the doctrine of sovereign immunity barred consideration of said claims. Gray v. Va. Secy. of Transp., 74 Va. Cir. 30, 2007 Va. Cir. LEXIS 150 (Richmond 2007).

Illustrative cases. - Maintenance of airport runways was a proprietary function under Virginia law, and the Metropolitan Washington Airports Authority was not immune from suit by an airline which claimed that its plane was damaged when it hit debris that was on a runway. Alpine Air, Inc. v. Metro. Wash. Airports Auth., 62 Va. Cir. 215, 2003 Va. Cir. LEXIS 106 (Fairfax County 2003).

§ 5.1-174. Procurement Act exemption.

In light of the multijurisdictional nature of the Authority, an exemption is hereby provided to the Authority from the provisions of the Virginia Public Procurement Act.

(2001, c. 342.)

Applied in Washington-Dulles Transp., Ltd. v. Metropolitan Wash. Airports Auth., 263 F.3d 371, 2001 U.S. App. LEXIS 19298 (4th Cir. 2001).

§ 5.1-175. Act liberally construed.

This act, being necessary for the welfare of the Commonwealth of Virginia and its inhabitants, shall be liberally construed to effect the purposes thereof.

(2001, c. 342.)

§ 5.1-176. Constitutional construction.

The provisions of this act are severable and if any of its provisions shall be held unconstitutional by any court of competent jurisdiction, the decision of such court shall not affect or impair any of the remaining provisions of this act. It is hereby declared to be the legislative intent that this act would have been adopted had such unconstitutional provisions not been included therein.

(2001, c. 342.)

§ 5.1-177. Inconsistent laws inapplicable.

All other general or special laws inconsistent with any provision of this act are hereby declared to be inapplicable to the provisions of this act.

(2001, c. 342.)

§ 5.1-178.

Not set out. (2001, c. 342.)

Editor's note. - This section, pertaining to the effective date of Chapter 10, was enacted by Acts 2001, c. 342. Its provisions are deemed to have been accomplished by the following cited federal law: P.L. 99-591, Title VI; 100 Stat. 3341-376; 49 USC 49101 et seq. (October 28, 1986). In furtherance of the general policy of the Virginia Code Commission to include in the Code only provisions having general and permanent application, this section, which is limited in its purpose and scope, is not set out here, but attention is called to it by this reference.

The text of the act for this section read as follows: "This act shall only become effective upon the enactment into law by the Congress of the United States of legislation that authorizes and directs the sale, lease, or other disposition of the Metropolitan Washington Airports to the Authority; provided, however, the Governor may make appointments for initial Authority membership at such time or times following the passage of this act as he may deem appropriate."