Authors: Representative Mike Speedy
Sponsors: Senator Jon Ford, Senator James Arnold, Senator Joseph Zakas
Co-Sponsors: Senator Lonnie Randolph
Removes the automatic reclassification of an aircraft in an aircraft dealer's inventory from the status of "aircraft inventory" to the status of "property of a nondealer" after 180 days. Provides that an airplane that has total time in service exceeding 50 hours in a year is no longer considered an aircraft in inventory and requires the sales and use sales tax to be paid. Provides that a dealer who has had an aircraft reclassified out of the dealer's aircraft inventory because of the 180 day provision may: (1) elect to return an aircraft to the dealer's aircraft inventory if it would have qualified under the modified law; and (2) obtain a refund of the registration fees and sales or use taxes that were required to be paid when the statutory reclassification occurred (including any penalties and interest), if paid within the previous three years. Increases the amount of financial responsibility required for the ownership, maintenance, or use of an aircraft to: (1) $100,000 for the bodily injury or death of one person; (2) $200,000 for the bodily injury or death of two or more persons in any one accident; and (3) $100,000 for damage to property in any one accident. Provides that the owner of an aircraft who is not the pilot is not vicariously liable for damages unless: (1) the owner engages in negligent, reckless, knowing, intentional, or unlawful conduct that is the proximate cause of the damages; (2) an agency relationship exists between the owner and the person who proximately caused the damages; or (3) the owner's liability is based on the doctrine of respondeat superior. Specifies that certain provisions relating to the ownership of an aircraft are not intended to modify Indiana law on bailments or bailor liability.