(1) The Nebraska State Airline Authority is hereby created. The authority shall be a body corporate and politic consisting of seven members appointed by the Governor with the approval of a majority of the Legislature. The Governor shall make such appointments within thirty days of April 7, 1990. No person shall be appointed to the authority who is an elected official of the State of Nebraska or any political subdivision thereof. All appointments to the authority shall be for four-year terms, except that when making the initial appointments the Governor shall designate two members to serve four years, two members to serve three years, two members to serve two years, and one member to serve one year. Any vacancy on the authority shall be filled for the remainder of the term by appointment in the same manner as the original appointment. The authority shall annually choose a chairperson from its membership. Four members of the authority shall constitute a quorum.
(2) The department shall, out of funds appropriated for that purpose, contract with the authority for the purposes listed in section 3-805. No funds shall be appropriated from the Department of Aeronautics Cash Fund for the purposes of the Nebraska State Airline Authority Act. The authority shall exercise all of its prescribed functions independently from the department, including administrative functions. At least annually, the authority shall submit any records, information, and reports in the form and at such times as required by the department, including audits conducted by certified public accountants.
(3) Each member of the authority shall receive a per diem as the Governor shall determine and shall be reimbursed for actual and necessary expenses.
(4) The authority may employ personnel necessary to carry out its duties.