KINGAIR BE350 FLT CREW EXECUTES A GAR DUE TO A RWY INCURSION AT EVV.

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I WAS THE FO AND PF ON THIS FLT. WE HAD JUST BEEN HANDED OFF TO THE TWR AFTER BEING CLRED FOR THE VISUAL TO RWY 18 AT EVV. WHEN WE SWITCHED OVER TO TWR FREQ; THERE WAS A STUCK MIKE ON THE FREQ. WE THOUGHT IT WAS PROBABLY COMING FROM THE RAMP SINCE THERE WERE ONLY 2 ACFT ON THE FREQ; AND BOTH WERE COMMUNICATING WITH THE TWR. THE STUCK MIKE WAS CLRED WHEN WE WERE ABOUT 2 OR 3 MI OUT. SHORTLY AFTER THE CLRED STUCK MIKE; WE HEARD A MERIDIAN CALL FOR TAXI. HE WAS GIVEN INSTRUCTION TO TAXI TO RWY 18. AT ABOUT THIS TIME; WE COMPLETED OUR LNDG CHKS AND WENT TO FULL FLAPS. THE CAPT SAID TO ME; 'THIS GUY IS GOING TO TAXI OUT IN FRONT OF YOU; BE PREPARED TO GO AROUND.' I HAD NOT YET NOTICED THAT HE WASN'T GOING TO THE END OF RWY 18 UNTIL HE SAID THAT. WE BOTH HAD OUR EYES ON THE MERIDIAN AS THE GPWS CALLED OUT 'MINIMUMS;' WHICH HAPPENS AT 200 FT AGL. THE MERIDIAN CONTINUED ACROSS THE HOLD SHORT LINE ONTO THE RWY. WE WERE ABOUT 100 FT AGL WHEN THE CAPT SAID 'GO AROUND;' AT WHICH TIME I PUSHED THE PWR UP AND CALLED FOR A FLAP RETRACTION. THE CAPT ANNOUNCED OUR GAR TO THE TWR. FOLLOWING OUR CALL; THE MERIDIAN INITIATED A TURN TO GET OFF THE RWY AND SAID; 'SORRY; MY FAULT.' THE TWR ISSUED US INSTRUCTIONS TO MAKE L OR R TFC. WE DECIDED TO MAKE L TFC AND LANDED WITHOUT INCIDENT. WHEN WE ROLLED ONTO ABOUT A 1 1/2 MI FINAL THE SECOND TIME; THE MERIDIAN CALLED READY FOR TKOF AT THE END. THE TWR TOLD HIM TO HOLD SHORT. WE HAD ALL OF OUR LIGHTS ON DURING BOTH APCHS. IT SEEMED LIKE THE PLT OF THE MERIDIAN HAD OTHER THINGS ON HIS MIND TO SAY THE LEAST. SINCE I AM STILL FAIRLY NEW TO THE AIRPLANE; I WAS MORE FOCUSED ON MAKING A GOOD VISUAL APCH AND LNDG THAN NOTICING ALL OF THE OTHER HAPPENINGS OF THE WHOLE SITUATION. THE CAPT I WAS FLYING WITH EXPLAINED TO ME ALL THE THINGS THAT HE NOTICED ABOUT THE MERIDIAN PLT'S LACK OF SITUATIONAL AWARENESS. ALL OF THOSE THINGS WERE NOTED IN HIS RPT. ANOTHER FACTOR THAT COMES INTO PLAY WAS THE RELATIVELY PASSIVE PART THE CTLR PLAYED IN THE WHOLE SITUATION. THE MERIDIAN WAS NOT QUESTIONED AT ALL. AFTER WE ANNOUNCED THE GAR; HE ACKNOWLEDGED FAULT AND TURNED AROUND. THE ONLY CTLR PARTICIPATION ON THE RADIO WAS HIS INSTRUCTION TO US TO MAKE L OR R TFC. THE MERIDIAN WASN'T TOLD TO STOP BEFORE XING THE HOLD SHORT LINE. EVENTUALLY THE MERIDIAN FOUND HIS WAY TO THE END OF THE RWY. I CAN'T SAY WHETHER OR NOT HE WAS GIVEN TAXI INSTRUCTIONS.