First Regular Session of the 124th General Assembly (2025)
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HOUSE ENROLLED ACT No. 1196
AN ACT to amend the Indiana Code concerning transportation.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 8-22-2-1, AS AMENDED BY P.L.104-2022,
SECTION 70, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 1. (a) Whenever the fiscal body of an eligible
entity adopts an ordinance or a resolution in favor of the acquisition,
improvement, operation, or maintenance of an airport or landing field
for the entity under this chapter, and declaring a necessity for the
airport or landing field, then on the effective date of the ordinance or
resolution, there is established as an executive department of the entity
a department of aviation, under the control of a board to be known as
the board of aviation commissioners.
(b) The following apply to a board of aviation commissioners
established under this chapter:
(1) Except as provided in subsections (e), (f), and (g), the board
consists of four (4) members.
(2) Except as provided in subsection (e), the executive of the
entity shall appoint the members of the board.
(3) Except as provided in subsections (f), and (g), and (h), not
more than two (2) of the members of the board may be of the
same political party.
(c) The fiscal body of the entity may provide a per diem for the
members of the board in any amount not exceeding thirty-five dollars
($35) for each whole or part day a member is engaged in board
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activities. The members of the board shall also be paid their actual
expenses, which may include the expenses of the members or
employees of the board in attending meetings or conventions held to
discuss aviation matters.
(d) Before beginning the duties of office, each board member shall
take and subscribe the usual oath of office, to be endorsed upon the
certificate of appointment, and shall cause that to be filed with the clerk
or other officer performing duties similar to that of clerk in the entity.
Any person who does not file the oath with the clerk or other officer
performing duties similar to that of the clerk within thirty (30) days
after the beginning of the term for which the person has been
appointed, or at the date of the person's appointment, if appointed after
the beginning of the term, is considered to have refused to serve and
the office becomes vacant.
(e) Notwithstanding subsection (b), if a county having a population
of more than two hundred fifty thousand (250,000) and less than three
hundred thousand (300,000) has established a board, the county
council and the mayors of the two (2) cities in the county having the
largest populations may each appoint one (1) additional member to the
board, thereby creating a board consisting of a total of seven (7)
members. The three (3) additional members serve in the same manner,
are accorded the same status, and perform the same duties as the four
(4) initial board members, and serve terms of four (4) years. If either
the county council or either of the two (2) mayors fails to make
appointments to the board, that fact does not prejudice appointments
that may be made by the other appointing authority or authorities.
(f) This subsection applies to the following:
(1) A county having a population of more than one hundred
twenty thousand (120,000) and less than one hundred thirty
thousand (130,000).
(2) A county having a population of more than thirty-six thousand
seven hundred (36,700) and less than thirty-seven thousand
(37,000).
Notwithstanding subsection (b), if a county has established a board
under this chapter, the county executive may add one (1) additional
member to the board so that the board has a total of five (5) members.
Not more than three (3) of the five (5) members of the board may be of
the same political party. The one (1) additional member shall serve in
the same manner, be accorded the same status, and perform the same
duties as the four (4) initial members, and serve a four (4) year term.
(g) This subsection does not apply to a board subject to subsection
(e) or (f). Notwithstanding subsection (b), the fiscal body of an eligible
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entity may adopt an ordinance or a resolution providing that the board
consists of five (5) members. If the board consists of five (5) members,
not more than three (3) members may be of the same political party.
(h) The requirements in this section that not more than a certain
number of members of a board of aviation commissioners may be
of the same political party do not apply to an eligible entity with a
population of less than thirty-eight thousand (38,000).
SECTION 2. IC 8-22-3-3.9 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]: Sec. 3.9. The requirements in sections 4 and 4.3 of this
chapter that an eligible entity may not appoint more than a certain
number of members of a board of the same political party do not
apply to an eligible entity with a population of less than thirty-eight
thousand (38,000).
SECTION 3. IC 8-22-3-4, AS AMENDED BY P.L.104-2022,
SECTION 71, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 4. (a) Except as provided in subsections (b), (c),
(d), (e), (f), and (g) and section 4.3 of this chapter, the board consists
of four (4) members, whenever the fiscal body of an eligible entity,
acting individually, establishes an authority. Except as provided in
subsection (h) and section sections 3.9 and 4.5(f) of this chapter, the
members of the board shall be appointed by the executive of the entity,
and not more than two (2) members of the board may be of the same
political party.
(b) In the event that two (2) cities or one (1) city and one (1) town
act jointly to establish an authority under this chapter, the board
consists of five (5) members. The executive of each city or town shall
each appoint two (2) members to the board. The county executive shall
appoint one (1) member to the board. Except as provided in section
3.9 of this chapter, each member appointed by an executive must be
of a different political party than the other appointed member.
(c) In the event that an authority is established by a city or town and
a county, acting jointly, the board consists of six (6) members. The
executive of each entity shall appoint three (3) members. Except as
provided in section 3.9 of this chapter, not more than two (2)
members appointed by each executive may be of the same political
party.
(d) In the event that an authority was established under IC 19-6-3
(before its repeal on April 1, 1980) the board consists of five (5)
members. Three (3) members of the board shall be appointed by the
mayor of the city, and two (2) members of the board shall be appointed
by the board of commissioners of the county. Except as provided in
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section 3.9 of this chapter, not more than two (2) members
representing the city may be members of the same political party, and
not more than one (1) member representing the county may be a
member of the same political party.
(e) Except as provided in section 4.1(b)(3) of this chapter, the
county executive of each Indiana county that is adjacent to a county
establishing an authority under this chapter and in which the authority
owns real property may appoint one (1) advisory member to the board.
An advisory member who is appointed under this subsection:
(1) must be a resident of the adjacent county;
(2) may not vote on any matter before the board;
(3) serves at the pleasure of the appointing authority; and
(4) serves without compensation or payment for expenses.
(f) The board of an authority established in the city of Frankfort
consists of five (5) members. The members of the board shall be
appointed by the executive of the eligible entity. and not more than
three (3) members of the board may be of the same political party.
(g) This subsection does not apply to a board subject to subsection
(b), (c), (d), or (f). Notwithstanding subsection (a), the fiscal body of
an eligible entity may adopt an ordinance or a resolution providing that
the board consists of five (5) members. Except as provided in section
3.9 of this chapter, if the board consists of five (5) members, not more
than three (3) members may be of the same political party.
(h) If an airport authority is established under this section by the
fiscal body of Clark County, the board must consist of four (4)
members. Subject to section 4.5(f) of this chapter (concerning the
initial members of the board):
(1) three (3) of the members of the board shall be appointed by
the county executive of Clark County; and
(2) one (1) of the members of the board shall be appointed by the
legislative body of the town of Sellersburg.
The board may consist of five (5) members if the fiscal body of Clark
County adopts an ordinance or resolution as provided in subsection (g).
Subject to section 4.5(f) of this chapter (concerning the initial members
of the board), if the board consists of five (5) members, three (3) of the
members of the board shall be appointed by the county executive of
Clark County, one (1) of the members of the board shall be appointed
by the fiscal body of Clark County, and one (1) of the members of the
board shall be appointed by the legislative body of the town of
Sellersburg.
SECTION 4. IC 8-22-3-4.3, AS AMENDED BY P.L.192-2015,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
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JULY 1, 2025]: Sec. 4.3. (a) This section applies only to the board of
an airport authority that:
(1) is not located in a county containing a consolidated city;
(2) is established by a city; and
(3) has entered into a federal interstate compact.
(b) The board of an airport authority described in subsection (a)
consists of members appointed as follows:
(1) Four (4) members appointed by the executive of the city in
which the airport is located. Except as provided in section 3.9 of
this chapter, not more than two (2) members appointed under
this subdivision may be members of the same political party.
(2) One (1) member appointed by the executive of the county in
which the airport is located.
(3) One (1) member appointed by the executive of the county
(other than the county in which the airport is located) that is
closest geographically to the airport.
(4) One (1) member appointed by the governor.
(c) A member of the board holds office for four (4) years and until
the member's successor is appointed and qualified.
(d) If a vacancy occurs in the board, the authority that appointed the
member that vacated the board shall appoint an individual to serve for
the remainder of the unexpired term.
(e) A board member may be reappointed to successive terms.
(f) A board member may be impeached under the procedure
provided for the impeachment of county officers.
(g) The board member appointed under subsection (b)(4) serves as
the president of the board.
(h) On September 1, 2013, the term of each member serving on the
board of the airport authority originally established by the city of Gary
is terminated. The appointing authorities required to make
appointments to the board under this section shall make new
appointments to the board as soon as possible after August 31, 2013.
(i) Each person appointed by an appointing authority under
subsection (b) must have knowledge of and at least five (5) years
professional work experience in at least one (1) of the following:
(1) Aviation management at an executive level.
(2) Regional economic development.
(3) Business or finance.
(j) A person appointed by an appointing authority under subsection
(b) may not personally have, or be employed by or have an ownership
interest in an entity that has, a significant contractual or business
relationship with the airport authority.
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(k) The board of an airport authority described in subsection (a)
shall contract with a certified public accountant for an annual financial
audit of the airport authority. The certified public accountant may not
be selected without review of the accountant's proposal and approval
of the accountant by the state board of accounts. The certified public
accountant may not have a significant financial interest, as determined
by the board of the airport authority, in a project, facility, or service
owned by, funded by, or leased by or to the airport authority. The
certified public accountant shall present the annual financial audit not
later than four (4) months after the end of the airport authority's fiscal
year. The board of the airport authority shall pay the cost of the annual
financial audit. In addition, the state board of accounts may at any time
conduct an audit of any phase of the operations of the airport authority.
The airport authority shall pay the cost of any audit by the state board
of accounts.
(l) The board of the airport authority shall, not later than four (4)
months after the end of the airport authority's fiscal year, submit an
annual report of the board's activities for the preceding fiscal year to:
(1) the budget agency, for review by the budget committee; and
(2) the legislative council.
An annual report submitted under this section to the legislative council
must be in an electronic format under IC 5-14-6. The annual report
must set forth a complete operating and financial statement of the
airport authority for the airport authority's preceding fiscal year.
HEA 1196 Speaker of the House of Representatives
President of the Senate
President Pro Tempore
Governor of the State of Indiana
Date: Time:
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