A federal-government challenge that the Perry County Port Authority is not a political subdivision of the state led to legislation approved in the Indiana House of Representatives.
Officers of the local port approached Rep. Russ Stilwell last year asking for his help to change existing laws covering the port, he said in a news release issued Thursday. In response, he co-authored House Bill 1076, which would authorize local port authorities to borrow money.
When the Perry County Port Authority got a federal appropriation with U.S. Rep. Baron Hill's help approximately eight months ago, Dick Neumann said Friday, Perry County officials had to intervene because federal officials didn't recognize the port authority as a state entity.
"We get audited by the State Board of Accounts and have to comply with certain state regulations, the vice president and chief executive officer for the port-rail agency said, providing examples of how it "looks like and smells like" an organization that is part of the county and therefore the state.
That relationship had never been questioned in his 11 years on the job, Neumann said.
"My proposal specifies that local port authorities are instruments of the state, and are allowed to exercise certain powers independent of any political subdivision," Stilwell said in announcing the House's 94-0 vote approving the bill.
He and Neumann said the change will save port authorities time and expense.
"Port authorities can't get loans," Neumann said. "We have to get revenue bonds, which means we have to pay bond attorneys."
Local relationships won't change as a result of the legislation, Neumann said. "We'll still be an entity of the county, with a county-appointed board. We'll just have certain powers independent of local government. We can go out and get our own bonding today; we just want to be able to go out and get a loan."
The port-rail agency is self-funded and receives "absolutely no property tax," Neumann noted.
The bill now moves to the state Senate for further consideration. If passed, it will become effective July 1.