*EH1092.1*
February 28, 2024
ENGROSSED
HOUSE BILL No. 1092
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DIGEST OF HB 1092 (Updated February 27, 2024 4:07 pm - DI 140)
Citations Affected: IC 8-21.
Synopsis: Financial responsibility for aircraft. Amends the definition
of "operation of aircraft" or "operate aircraft" for purposes of the
aircraft financial responsibility act. Increases the minimum amount of
loss resulting from bodily injury, death, or property damage in an
aircraft accident required to be reported to the Indiana department of
transportation (department) from $100 to $7,500. Requires certain
information to be included in a report of an aircraft accident. Requires
the owner or operator of an aircraft to provide the information required
(Continued next page)
Effective: July 1, 2024.
Mayfield, Pressel, Speedy,
Johnson B
(SENATE SPONSOR — DONATO)
January 8, 2024, read first time and referred to Committee on Roads and Transportation.
January 30, 2024, amended, reported — Do Pass.
February 1, 2024, read second time, amended, ordered engrossed.
February 2, 2024, engrossed.
February 5, 2024, read third time, passed. Yeas 96, nays 2.
SENATE ACTION
February 12, 2024, read first time and referred to Committee on Homeland Security and
Transportation.
February 27, 2024, reported favorably — Do Pass.
EH 1092—LS 6316/DI 141 Digest Continued
to be reported to the department to a damaged or injured party or a
damaged or injured party's representative upon request. Removes the
department from a provision allowing certain entities to maintain an
action to enjoin a person from engaging in the operation of an aircraft
for failure to comply with the aircraft financial responsibility
requirements. Specifies how payments shall be made from a security
deposit. Specifies the fee for service of process on the secretary of
state. Adds an additional insured to certain provisions in the aircraft
financial responsibility act. Makes corresponding changes. Makes
technical corrections.
EH 1092—LS 6316/DI 141EH 1092—LS 6316/DI 141 February 28, 2024
Second Regular Session of the 123rd General Assembly (2024)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2023 Regular Session of the General Assembly.
ENGROSSED
HOUSE BILL No. 1092
A BILL FOR AN ACT to amend the Indiana Code concerning
transportation.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 8-21-3-1, AS AMENDED BY P.L.136-2018,
2 SECTION 102, IS AMENDED TO READ AS FOLLOWS
3 [EFFECTIVE JULY 1, 2024]: Sec. 1. The following words and phrases
4 when used in this chapter shall, for the purpose of this chapter, unless
5 a different meaning appears from the context, have the following
6 meanings:
7 (1) The singular shall include the plural; the masculine shall
8 include the feminine and neuter, as requisite.
9 (2) "Aircraft" means any contrivance used or designed for
10 navigation of or flight in the air.
11 (3) "Aircraft accident" means any mishap involving an aircraft
12 resulting in injury or damage to such aircraft or to any person,
13 property, or thing.
14 (4) "Department" refers to the Indiana department of
15 transportation; and "state" or "this state" means the state of
16 Indiana.
17 (5) "Guest" means any person who rides in an aircraft for which
EH 1092—LS 6316/DI 141 2
1 no charge is made for such ride or flight.
2 (6) (5) "Insured" means the person in whose name there is issued
3 an aircraft liability policy (as defined in section 12 of this chapter)
4 and any other person insured under the terms of such policy.
5 (7) (6) "Judgment" means any judgment, except a judgment
6 rendered against this state or any political subdivision of this state
7 or any municipality in this state, which shall have become final by
8 expiration without appeal of the time within which appeal might
9 have been perfected, or by final affirmation on appeal, rendered
10 by a court of competent jurisdiction of any state or of the United
11 States.
12 (8) (7) "Operation of aircraft" or "operate aircraft" means the use
13 of aircraft for the purpose of air navigation, and includes the
14 navigation or piloting of aircraft. Any person who causes or
15 authorizes the operation of aircraft, whether with or without the
16 right of legal control (in the capacity of owner, lessee, aircraft
17 sales broker, or otherwise) of the aircraft, including an aircraft
18 otherwise considered inventory, if it is operated in flight, shall be
19 deemed to be engaged in the operation of aircraft within the
20 meaning of the statutes of this state.
21 (9) (8) "Operator" means any person who is in actual physical
22 control of an aircraft.
23 (10) (9) "Owner" means any person in whose name the aircraft is
24 certificated, licensed, or registered by appropriate federal or state
25 authority.
26 (11) "Passenger" means any person:
27 (A) in, on or boarding an aircraft for the purpose of riding in
28 the aircraft; or
29 (B) alighting from the aircraft following a flight or attempted
30 flight of the aircraft.
31 (12) (10) "Person" means any individual, firm, partnership,
32 corporation, company, limited liability company, association, joint
33 stock association, or body politic; and includes any trustee,
34 receiver, assignee, or other similar representative of an entity
35 described in this subdivision.
36 (13) (11) "Policy" or "insurance policy" means an aircraft liability
37 policy conforming to section 12 of this chapter.
38 (14) (12) "Proof of financial responsibility" has the meaning set
39 forth in section 8 of this chapter.
40 SECTION 2. IC 8-21-3-3 IS AMENDED TO READ AS FOLLOWS
41 [EFFECTIVE JULY 1, 2024]: Sec. 3. (a) Any person who, while
42 operating any aircraft, shall have been involved in any aircraft accident
EH 1092—LS 6316/DI 141 3
1 in this state resulting in bodily injury or death, or in damage to property
2 of another in excess of one hundred seven thousand five hundred
3 dollars ($100) ($7,500) or the owner of such aircraft, shall within ten
4 (10) days following such aircraft accident report the same to the
5 department. Aircraft accident reports, as herein required, shall be
6 submitted in such form as the department may prescribe.
7 (b) A report of an aircraft accident under this section must
8 include the following information:
9 (1) Name of the operator of the aircraft.
10 (2) Name of the owner of the aircraft.
11 (3) Means of financial responsibility and financial assurance.
12 (4) Date of the accident.
13 (5) Location of the accident.
14 (6) Federal Aviation Administration registration number.
15 (c) The owner or operator of an aircraft shall, upon request,
16 provide the information required in subsection (b) to a damaged or
17 injured party or a damaged or injured party's representative.
18 SECTION 3. IC 8-21-3-4 IS AMENDED TO READ AS FOLLOWS
19 [EFFECTIVE JULY 1, 2024]: Sec. 4. (a) The department may require,
20 within not less than ten (10) days nor more than sixty (60) days after an
21 aircraft accident from any person, who, while operating any aircraft
22 shall have been involved in any aircraft accident resulting in bodily
23 injury or death to any person other than a guest passenger of such
24 aircraft or in damage to property of another, other than property owned,
25 rented, occupied, or used by, or in the care, custody or control of the
26 owner or operator or carried in or on the aircraft, in excess of one
27 hundred seven thousand five hundred dollars ($100), ($7,500), or, in
28 the discretion of the department, the owner of such aircraft, or both,
29 secured security sufficient in the discretion of the department to
30 indemnify the injured party against loss and guarantee the payment and
31 satisfaction of any judgment or judgments for damages resulting from
32 such accident as may be recovered against such owner or operator by
33 or on behalf of the injured person or his the injured person's legal
34 representative, and in addition thereto, the department may require
35 such operator, or in the department's discretion, the owner of such
36 aircraft, or both, to file proof of financial responsibility for a period of
37 one (1) year following the date of the accident: Provided, however, that
38 if such owner operator shall satisfy the department that the liability, if
39 any, for damages resulting from such accident is insured by an
40 insurance policy or bond, the department shall not require security from
41 such owner operator.
42 (b) Such security, where ordered, shall be in such form and in such
EH 1092—LS 6316/DI 141 4
1 amount as the department may require, but in no case in excess of the
2 amount of proof required by section 8 of this chapter. The department
3 may modify the amount of security ordered in any case, if after further
4 investigation it shall determine that the amount ordered is improper.
5 SECTION 4. IC 8-21-3-5 IS AMENDED TO READ AS FOLLOWS
6 [EFFECTIVE JULY 1, 2024]: Sec. 5. If the person required to furnish
7 proof of financial responsibility in the future or if the person required
8 to furnish financial security under this chapter, neglects or refuses to
9 comply with such requirements, the department, the attorney general
10 or the prosecuting attorney of the county in which such party resides,
11 may, in accordance with the laws of the state of Indiana governing
12 injunctions, maintain an action in the name of the state of Indiana to
13 enjoin such person neglecting or refusing to comply with the financial
14 responsibility or security requirements of this chapter from engaging
15 in the operation of any aircraft or causing to be operated any aircraft
16 within this state until such person has complied with such requirements
17 or until such person has, by final judicial determination, been proved
18 not legally liable for, or has been released from all liability for damages
19 resulting from such aircraft accident.
20 SECTION 5. IC 8-21-3-6, AS AMENDED BY P.L.136-2018,
21 SECTION 103, IS AMENDED TO READ AS FOLLOWS
22 [EFFECTIVE JULY 1, 2024]: Sec. 6. (a) Security furnished in
23 compliance with the requirements of this chapter shall be placed by the
24 department in the custody of the treasurer of state and shall be
25 applicable only to the payment of a judgment or claimant settlement
26 agreement against the depositor for damages arising out of the
27 accident in question in an action at law in a court of this state begun not
28 later than one (1) year after the date of such accident or, upon
29 assignment of the depositor. All such payments made out of the
30 deposited security shall be made as follows: subject to proration by
31 court order or claimant settlement agreement if there is more than
32 one (1) claimant.
33 (1) Payment shall first be made to each of the judgment creditors
34 in the order of judgment entry and to each of the claimants who
35 have agreed to settle their claims, whose damages were evaluated
36 by the department, in an amount not greater than the amount fixed
37 in their respective evaluations.
38 (2) Whenever the department shall be given evidence, satisfactory
39 to it, that the amounts of all claims for damages against the
40 depositor arising out of such accident are fixed, either by
41 judgment or settlement agreement, payment shall be made out of
42 any balance remaining after the first distribution to each of those
EH 1092—LS 6316/DI 141 5
1 persons whose judgments or settlement amounts have not been
2 fully paid but whose damages were evaluated by the department,
3 in proportion to the amounts of their respective evaluations unless
4 there is a sufficient amount to make payment in full.
5 (3) Any balance remaining after the first and second distributions
6 are completed shall be paid to those judgment creditors and those
7 claimants who have agreed to settle their claims but whose
8 damages were not evaluated, in proportion to the amounts of their
9 respective judgments or settlement amounts unless there is a
10 sufficient amount to make payment in full.
11 Such deposit, or any balance of the amount deposited, shall be returned
12 to the depositor or the depositor's personal representative whenever
13 after the expiration of such year the department shall be given
14 evidence, satisfactory to it, that there is no such judgment unsatisfied
15 and that there is no pending action against the depositor for damages
16 arising out of such accident.
17 (b) Neither the action taken by the department pursuant to this
18 chapter, the findings, if any, of the department upon which such action
19 is based, nor the security filed by the owner or operator as provided in
20 this chapter shall be referred to in any way, nor be any evidence of the
21 negligence or due care of either party at the trial of any action at law to
22 recover damages.
23 (c) In lieu of deposit of security when required pursuant to this
24 chapter the aircraft owner or operator may, if the person who has
25 sustained bodily injury, including death, or damage to the person's
26 property or the person's legal representative consents, effect and deliver
27 a consent judgment or release for such amount and payable when and
28 in such installments as the judgment creditor or claimant may agree to.
29 In the event the judgment debtor fails to pay any installment as agreed,
30 then upon notice of such default, the department, the attorney-general
31 or the prosecuting attorney may pursuant to section 5 of this chapter
32 maintain an action to enjoin such person from engaging in the
33 operation of any aircraft or causing to be operated any aircraft within
34 this state until such judgment is appropriately satisfied as required
35 under this chapter.
36 (d) Information regarding security taken under this section shall be
37 available to the person injured or the representative of any person
38 killed and their duly authorized agents or attorney.
39 SECTION 6. IC 8-21-3-7 IS AMENDED TO READ AS FOLLOWS
40 [EFFECTIVE JULY 1, 2024]: Sec. 7. (a) The provisions of this chapter
41 shall apply to any person who is not a resident of this state under the
42 same circumstances as they would apply to a resident, and, in such
EH 1092—LS 6316/DI 141 6
1 event, such a nonresident shall not operate any aircraft in this state nor
2 shall any aircraft owned by him the nonresident be operated in this
3 state, unless and until such nonresident, or the owner of the aircraft, if
4 another person, has complied with the requirements of this chapter with
5 respect to security and proof of financial responsibility covering such
6 aircraft.
7 (b) The operation by a nonresident, or by his the nonresident's duly
8 authorized agent, of an aircraft in this state shall be deemed equivalent
9 to an appointment by such nonresident of the secretary of state, or his
10 the secretary of state's successor in office, to be his the nonresident's
11 true and lawful attorney upon whom may be served all lawful processes
12 in any action or proceeding against him, the nonresident, growing out
13 of any aircraft accident in which such nonresident may be involved
14 while so operating or so permitting to be operated an aircraft in this
15 state, and such operation shall be signification of his the nonresident's
16 agreement that any such process against him, the nonresident, which
17 is so served, shall be of the same legal force and validity as if served
18 upon him the nonresident personally. Such action may be filed in the
19 county of the residence of the plaintiff or in the county where the
20 accident occurred, at the election of the plaintiff, and service of such
21 process shall be made by leaving a copy thereof, with a the fee of two
22 dollars ($2), set forth in IC 23-0.5-9-56, for such defendant to be
23 served, with the secretary of state, or in his the secretary of state's
24 office, and such service shall be sufficient service upon such
25 nonresident, provided that notice of such service and a copy of the
26 process are forthwith sent by registered mail to the defendant and the
27 defendant's return receipt is appended to the original process and filed
28 therewith in the court. In the event that the defendant refuses to accept
29 or claim such registered mail, then such registered mail shall be
30 returned by the secretary of state to the plaintiff or to his the plaintiff's
31 attorney, and the same shall be appended to the original process,
32 together with an affidavit of the plaintiff or of his the plaintiff's
33 attorney or agent to the effect that such summons was delivered to the
34 secretary of state, together with a the fee of two dollars ($2), set forth
35 in IC 23-0.5-9-56, and was thereafter returned unclaimed by the
36 postoffice department, and such affidavit, together with the returned
37 affidavit including said summons, shall be considered sufficient service
38 upon such nonresident defendant. The court in which the action is
39 brought may order such continuances as may be reasonable to afford
40 the defendant opportunity to defend the action.
41 (c) No insurance policy or bond shall be effective under section 4
42 of this chapter in the case of an aircraft owned or operated by a
EH 1092—LS 6316/DI 141 7
1 nonresident in this state at the time of the accident or at the effective
2 date of the policy or bond, or the most recent renewal thereof, unless
3 the insurance company or surety company, if not authorized to do
4 business in this state, shall execute a power of attorney authorizing the
5 secretary of state to accept service on its behalf of notice or process in
6 any action upon such policy or bond arising out of such accident.
7 SECTION 7. IC 8-21-3-10 IS AMENDED TO READ AS
8 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 10. (a) Proof of
9 financial responsibility may be made by filing with the department the
10 written certificate or certificates of any insurance carrier certifying that
11 it has issued to or for the benefit of the person furnishing such proof
12 and named as the insured or additional insured, an aircraft liability
13 policy or policies meeting the requirements of this chapter, and such
14 other information as the department may require.
15 (b) When the person required to give proof of financial
16 responsibility, is not the owner of an aircraft, then an operator's policy
17 of liability insurance as defined in this chapter shall be sufficient proof
18 of financial responsibility.
19 SECTION 8. IC 8-21-3-12 IS AMENDED TO READ AS
20 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 12. An aircraft liability
21 policy as said term is used in this chapter, shall mean an owner's policy
22 of liability insurance or an operator's policy of liability insurance for
23 which a certificate has been filed with the department by an insurance
24 carrier authorized to do business in this state pursuant to the insurance
25 laws of this state for the benefit of the person named therein as insured
26 or additional insured; which policy shall contain the terms, conditions
27 and provisions required by the laws of this state and with sufficient
28 liability coverage to meet the security and proof of financial
29 responsibility requirements established within the purview of section
30 4 of this chapter and pursuant to this chapter by the department as a
31 result of an aircraft accident occurring within this state and shall be
32 approved by the insurance commissioner of the state of Indiana.
33 SECTION 9. IC 8-21-3-13 IS AMENDED TO READ AS
34 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 13. An insurance
35 carrier which has issued an aircraft liability policy or policies meeting
36 the requirements of this chapter shall, upon request of the named
37 insured or additional insured, deliver to such insured or additional
38 insured for filing or at the request of such insured or additional
39 insured shall file direct with the department, an appropriate certificate
40 showing that such policy or policies have been issued, which certificate
41 shall meet the requirements of this chapter. The issuance of a
42 certificate to serve as proof of financial responsibility under this
EH 1092—LS 6316/DI 141 8
1 chapter shall be conclusive evidence that every aircraft liability policy
2 therein cited conforms to all the requirements of this chapter.
3 SECTION 10. IC 8-21-3-20 IS AMENDED TO READ AS
4 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 20. A person who fails
5 to submit an accident report to the department or to a damaged or
6 injured party or a damaged or injured party's representative as
7 provided in section 3 of this chapter commits a Class C infraction.
EH 1092—LS 6316/DI 141 9
COMMITTEE REPORT
Mr. Speaker: Your Committee on Roads and Transportation, to
which was referred House Bill 1092, has had the same under
consideration and begs leave to report the same back to the House with
the recommendation that said bill be amended as follows:
Page 2, delete lines 40 through 42.
Page 3, delete line 1.
Page 3, between lines 18 and 19, begin a new paragraph and insert:
"(c) The owner or operator of an aircraft shall, upon request,
provide the information required in subsection (b) to a damaged or
injured party or a damaged or injured party's representative.".
Page 3, line 20, reset in roman "may".
Page 3, line 21, delete "shall".
Page 3, line 36, reset in roman "may" and delete "shall".
Page 8, after line 4, begin a new paragraph and insert:
"SECTION 10. IC 8-21-3-20 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2025]: Sec. 20. A person who
fails to submit an accident report to the department or to a damaged
or injured party or a damaged or injured party's representative as
provided in section 3 of this chapter commits a Class C infraction.".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to HB 1092 as introduced.)
PRESSEL
Committee Vote: yeas 10, nays 0.
_____
HOUSE MOTION
Mr. Speaker: I move that House Bill 1092 be amended to read as
follows:
Replace the effective dates in SECTIONS 1 through 10 with
"[EFFECTIVE JULY 1, 2024]".
(Reference is to HB 1092 as printed January 30, 2024.)
MAYFIELD
EH 1092—LS 6316/DI 141 10
COMMITTEE REPORT
Madam President: The Senate Committee on Homeland Security
and Transportation, to which was referred House Bill No. 1092, has
had the same under consideration and begs leave to report the same
back to the Senate with the recommendation that said bill DO PASS.
(Reference is to HB 1092 as reprinted February 2, 2024.)
CRIDER, Chairperson
Committee Vote: Yeas 8, Nays 0
EH 1092—LS 6316/DI 141