ACI-NA Provides Comments to SEC Regarding Proposed Rules Affecting Airports

ACI-NA filed comments with the Securities and Exchange Commission (“Commission”) in response to the Commission’s proposed rule that would impact appointed and non-elected members of airport boards.

In a proposed rule issued in SEC Release No. 34-63576, dated December 20, 2010 regarding Registration of Municipal Advisors (also appearing in 76 Federal Register No. 4, January 6, 2011), the Commission proposed a massive new rule to implement certain provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Act”).  Among the proposals in that rule are requirements for the registration of municipal advisors with the Commission.

Noting that many of the airport members of ACI-NA are either independent airport organizations or are governed by state or local authorities that operate airports, among other transportation organizations, ACI-NA’s comments highlighted the fact that many of its members are concerned about the impact that the Commission’s proposed rule would have on members of their airport boards and commissions.  Since the proposed rule would exclude from the definition of a “municipal advisor” elected members of a governing body of a municipal entity, but include appointed members of such a body, unless appointed members serve as ex officio members of the governing body by virtue of holding elective office, the result of the Commission’s proposed rule would be that appointed members of the authority’s governing body (except those elected officials who serve ex officio) would be subject to the registration requirements of the Act.  In other words, some members of the board of the authority would be subject to the registration requirements of the Act while others would not, despite the fact that all municipal governing board members—elected or appointed---would be carrying out the same functions in their capacities on the board. 

ACI-NA stated that the distinction the Commission is proposing is an artificial one that does not merit that the registration requirements of a “municipal advisor” be imposed on appointed and non-elected governing body members. ACI-NA therefore requested that the Commission exclude all municipal governing body members-elected or appointed—from the definition of “municipal advisor.”

See ACI-NA’s Comments

See Comments of ACI-NA Member Airports