CHAPTER 19. FIRE PROTECTION TERRITORIES
IC 36-8-19
Chapter 19. Fire Protection Territories
IC 36-8-19-1
Application of chapter
Sec. 1. Except as provided in section 1.5 of this chapter, thischapter applies to any geographic area that is established as a fireprotection territory.
As added by P.L.37-1994, SEC.3. Amended by P.L.326-1995, SEC.1;P.L.227-2005, SEC.50.
IC 36-8-19-1.5
Consolidation of fire departments in county containingconsolidated city
Sec. 1.5. (a) If the fire department of a township is consolidatedunder IC 36-3-1-6.1, after the effective date of the consolidation thetownship may not establish a fire protection territory under thischapter.
(b) A fire protection territory that is established before theeffective date of the consolidation in a township in which thetownship's fire department is consolidated under IC 36-3-1-6.1becomes part of the geographic area in which the fire department ofa consolidated city provides fire protection services.
As added by P.L.227-2005, SEC.51. Amended by P.L.1-2006,SEC.583.
IC 36-8-19-2
"Participating unit" defined
Sec. 2. As used in this chapter, "participating unit" refers to a unitthat adopts an ordinance or a resolution under section 6 of thischapter.
As added by P.L.37-1994, SEC.3. Amended by P.L.47-2007, SEC.1.
IC 36-8-19-3
"Provider unit" defined
Sec. 3. As used in this chapter, "provider unit" refers to theparticipating unit that is responsible for providing the fire protectionservices within the territory.
As added by P.L.37-1994, SEC.3.
IC 36-8-19-4
"Territory" defined
Sec. 4. As used in this chapter, "territory" refers to a fireprotection territory established under this chapter.
As added by P.L.37-1994, SEC.3.
IC 36-8-19-5
Fire protection territory of contiguous units; establishment;purposes; boundaries
Sec. 5. (a) Subject to subsections (b) and (c), the legislative bodies
of at least two (2) contiguous units may establish a fire protectionterritory for any of the following purposes:
(1) Fire protection, including the capability for extinguishing allfires that might be reasonably expected because of the types ofimprovements, personal property, and real property within theboundaries of the territory.
(2) Fire prevention, including identification and elimination ofall potential and actual sources of fire hazard.
(3) Other purposes or functions related to fire protection andfire prevention.
(b) Not more than one (1) unit within the proposed territory maybe designated as the provider unit for the territory.
(c) The boundaries of a territory need not coincide with those ofother political subdivisions.
As added by P.L.37-1994, SEC.3.
IC 36-8-19-6
Ordinance or resolution for establishing territory
Sec. 6. (a) To establish a fire protection territory, the legislativebodies of each unit desiring to become a part of the proposedterritory must adopt an ordinance (if the unit is a county ormunicipality) or a resolution (if the unit is a township) that meets thefollowing requirements:
(1) The ordinance or resolution is identical to the ordinancesand resolutions adopted by the other units desiring to becomea part of the proposed territory.
(2) The ordinance or resolution is adopted after January 1 butbefore April 1.
(3) The ordinance or resolution authorizes the unit to become aparty to an agreement for the establishment of a fire protectionterritory.
(4) The ordinance or resolution is adopted after the legislativebody holds a public hearing to receive public comment on theproposed ordinance or resolution. The legislative body mustgive notice of the hearing under IC 5-3-1.
(b) The notice required under this section shall include all of thefollowing:
(1) A list of the provider unit and all participating units in theproposed territory.
(2) The date, time, and location of the hearing.
(3) The location where the public can inspect the proposedordinance or resolution.
(4) A statement as to whether the proposed ordinance orresolution requires uniform tax rates or different tax rateswithin the territory.
(5) The name and telephone number of a representative of theunit who may be contacted for further information.
(c) The ordinance or resolution adopted under this section shallinclude at least the following:
(1) The boundaries of the proposed territory. (2) The identity of the provider unit and all other participatingunits desiring to be included within the territory.
(3) An agreement to impose:
(A) a uniform tax rate upon all of the taxable property withinthe territory for fire protection services; or
(B) different tax rates for fire protection services for theunits desiring to be included within the territory, so long asa tax rate applies uniformly to all of a unit's taxable propertywithin the territory.
(4) The contents of the agreement to establish the territory.
(d) An ordinance or a resolution adopted under this section takeseffect July 1 of the year the ordinance or resolution is adopted.
As added by P.L.37-1994, SEC.3. Amended by P.L.240-2001, SEC.3;P.L.47-2007, SEC.2.
IC 36-8-19-6.5
Agreement to change provider unit
Sec. 6.5. (a) The legislative bodies of all participating units in aterritory may agree to change the provider unit of the territory fromone (1) participating unit to another participating unit. To change theprovider unit, the legislative body of each participating unit mustadopt an ordinance (if the unit is a county or municipality) or aresolution (if the unit is a township) that agrees to and specifies thenew provider unit. The provider unit may not be changed unless allparticipating units agree on the participating unit that will becomethe new provider unit. The participating units may not change theprovider unit more than one (1) time in any year.
(b) The following apply to an ordinance or a resolution adoptedunder this section to change the provider unit of the territory:
(1) The ordinance or resolution must be adopted after January1 but before April 1 of a year.
(2) The ordinance or resolution takes effect January 1 of theyear following the year in which the ordinance or resolution isadopted.
As added by P.L.182-2009(ss), SEC.441.
IC 36-8-19-7
Tax levy rate
Sec. 7. A tax levied under this chapter must be levied at:
(1) a uniform rate upon all taxable property within the territory;or
(2) different rates for the units included within the territory, solong as a tax rate applies uniformly to all of a unit's taxableproperty within the territory.
As added by P.L.37-1994, SEC.3. Amended by P.L.240-2001, SEC.4.
IC 36-8-19-7.5
Local option and excise tax distributions to participating units
Sec. 7.5. (a) This section applies to:
(1) county adjusted gross income tax, county option income tax,
and county economic development income tax distributions;and
(2) excise tax distributions;
made after December 31, 2009.
(b) For purposes of allocating any county adjusted gross incometax, county option income tax, and county economic developmentincome tax distributions or excise tax distributions that aredistributed based on the amount of a taxing unit's property tax levies,each participating unit in a territory is considered to have imposed apart of the property tax levy imposed for the territory. The part of theproperty tax levy imposed for the territory for a particular year thatshall be attributed to a participating unit is equal to the amountdetermined in the following STEPS:
STEP ONE: Determine the total amount of all property taxesimposed by the participating unit in the year before the year inwhich a property tax levy was first imposed for the territory.
STEP TWO: Determine the sum of the STEP ONE amounts forall participating units.
STEP THREE: Divide the STEP ONE result by the STEP TWOresult.
STEP FOUR: Multiply the STEP THREE result by the propertytax levy imposed for the territory for the particular year.
As added by P.L.182-2009(ss), SEC.442.
IC 36-8-19-8
Fire protection territory fund; establishment; purposes; budget;tax levies
Sec. 8. (a) Upon the adoption of identical ordinances orresolutions, or both, by the participating units under section 6 of thischapter, the designated provider unit must establish a fire protectionterritory fund from which all expenses of operating and maintainingthe fire protection services within the territory, including repairs,fees, salaries, depreciation on all depreciable assets, rents, supplies,contingencies, and all other expenses lawfully incurred within theterritory shall be paid. The purposes described in this subsection arethe sole purposes of the fund, and money in the fund may not be usedfor any other expenses. Except as allowed in subsections (d) and (e)and section 8.5 of this chapter, the provider unit is not authorized totransfer money out of the fund at any time.
(b) The fund consists of the following:
(1) All receipts from the tax imposed under this section.
(2) Any money transferred to the fund by the provider unit asauthorized under subsection (d).
(3) Any receipts from a false alarm fee or service chargeimposed by the participating units under IC 36-8-13-4.
(4) Any money transferred to the fund by a participating unitunder section 8.6 of this chapter.
(c) The provider unit, with the assistance of each of the otherparticipating units, shall annually budget the necessary money tomeet the expenses of operation and maintenance of the fire
protection services within the territory, plus a reasonable operatingbalance, not to exceed twenty percent (20%) of the budgetedexpenses. Except as provided in IC 6-1.1-18.5-10.5, after estimatingexpenses and receipts of money, the provider unit shall establish thetax levy required to fund the estimated budget. The amount budgetedunder this subsection shall be considered a part of each of theparticipating unit's budget.
(d) If the amount levied in a particular year is insufficient to coverthe costs incurred in providing fire protection services within theterritory, the provider unit may transfer from available sources to thefire protection territory fund the money needed to cover those costs.In this case:
(1) the levy in the following year shall be increased by theamount required to be transferred; and
(2) the provider unit is entitled to transfer the amount describedin subdivision (1) from the fund as reimbursement to theprovider unit.
(e) If the amount levied in a particular year exceeds the amountnecessary to cover the costs incurred in providing fire protectionservices within the territory, the levy in the following year shall bereduced by the amount of surplus money that is not transferred to theequipment replacement fund established under section 8.5 of thischapter. The amount that may be transferred to the equipmentreplacement fund may not exceed five percent (5%) of the levy forthat fund for that year. Each participating unit must agree to theamount to be transferred by adopting an ordinance (if the unit is acounty or municipality) or a resolution (if the unit is a township) thatspecifies an identical amount to be transferred.
(f) The tax under this section is subject to the tax levy limitationsimposed under IC 6-1.1-18.5-10.5.
As added by P.L.37-1994, SEC.3. Amended by P.L.326-1995, SEC.2;P.L.82-2001, SEC.4; P.L.240-2001, SEC.5; P.L.47-2007, SEC.3;P.L.128-2008, SEC.7; P.L.182-2009(ss), SEC.443.
IC 36-8-19-8.5
Equipment replacement fund; property tax levy; maximumproperty tax rate
Sec. 8.5. (a) Participating units may agree to establish anequipment replacement fund under this section to be used topurchase fire protection equipment, including housing, that will beused to serve the entire territory. To establish the fund, the legislativebodies of each participating unit must adopt an ordinance (if the unitis a county or municipality) or a resolution (if the unit is a township)that meets the following requirements:
(1) The ordinance or resolution is identical to the ordinancesand resolutions adopted by the other participating units underthis section.
(2) The ordinance or resolution is adopted after January 1 butbefore April 1.
(3) The ordinance or resolution authorizes the provider unit to
establish the fund.
(4) The ordinance or resolution includes at least the following:
(A) The name of each participating unit and the providerunit.
(B) An agreement to impose a uniform tax rate upon all ofthe taxable property within the territory for the equipmentreplacement fund.
(C) The contents of the agreement to establish the fund.
An ordinance or a resolution adopted under this section takes effectJuly 1 of the year the ordinance or resolution is adopted.
(b) If a fund is established, the participating units may agree to:
(1) impose a property tax to provide for the accumulation ofmoney in the fund to purchase fire protection equipment;
(2) incur debt to purchase fire protection equipment and imposea property tax to retire the loan; or
(3) transfer an amount from the fire protection territory fund tothe fire equipment replacement fund not to exceed five percent(5%) of the levy for the fire protection territory fund for thatyear;
or any combination of these options. The property tax rate for thelevy imposed under this section may not exceed three and thirty-threehundredths cents ($0.0333) per one hundred dollars ($100) ofassessed value. Before debt may be incurred, the fiscal body of aparticipating unit must adopt an ordinance (if the unit is a county ormunicipality) or a resolution (if the unit is a township) that specifiesthe amount and purpose of the debt. The ordinance or resolutionmust be identical to the other ordinances and resolutions adopted bythe participating units. In addition, the department of localgovernment finance must approve the incurrence of the debt usingthe same standards as applied to the incurrence of debt by civiltaxing units.
(c) Money in the fund may be used by the provider unit only forthose purposes set forth in the agreement among the participatingunits that permits the establishment of the fund.
As added by P.L.326-1995, SEC.3. Amended by P.L.36-2000,SEC.10; P.L.90-2002, SEC.500; P.L.256-2003, SEC.39;P.L.47-2007, SEC.4.
IC 36-8-19-8.6
Transfer of money from participating unit to fire protectionterritory fund or fire protection territory equipment replacementfund
Sec. 8.6. (a) A participating unit may adopt an ordinance or aresolution to transfer any money belonging to the participating unitto:
(1) the fire protection territory fund established under section8 of this chapter;
(2) the fire protection territory equipment replacement fundestablished under section 8.5 of this chapter; or
(3) both funds described in subdivisions (1) and (2). (b) An ordinance or a resolution adopted under this section muststate both of the following:
(1) The amount of money transferred to either fund.
(2) The source of the money.
(c) The transfer of money from a participating unit to a fireprotection territory before July 1, 2008, is legalized.
As added by P.L.128-2008, SEC.8.
IC 36-8-19-8.7
Purchase of firefighting equipment on installment conditional saleor mortgage contract
Sec. 8.7. After a sufficient appropriation for the purchase offirefighting apparatus and equipment, including housing, is made andis available, the participating units, with the approval of the fiscalbody of each participating unit, may purchase the firefightingapparatus and equipment for the territory on an installmentconditional sale or mortgage contract running for a period notexceeding:
(1) six (6) years; or
(2) fifteen (15) years for a territory that:
(A) has a total assessed value of sixty million dollars($60,000,000) or less, as determined by the department oflocal government finance; and
(B) is purchasing the firefighting equipment with fundingfrom the:
(i) state or its instrumentalities; or
(ii) federal government or its instrumentalities.
The purchase shall be amortized in equal or approximately equalinstallments payable on January 1 and July 1 each year.
As added by P.L.83-1998, SEC.4. Amended by P.L.90-2002,SEC.501; P.L.178-2002, SEC.135.
IC 36-8-19-9
Avoidance of duplication of tax levies; preexisting indebtedness
Sec. 9. (a) The department of local government finance, whenapproving a rate and levy fixed by the provider unit, shall verify thata duplication of tax levies does not exist within participating units,so that taxpayers do not bear two (2) levies for the same service,except as provided by subsection (b) or (c).
(b) A unit that incurred indebtedness for fire protection servicesbefore becoming a participating unit under this chapter shall continueto repay that indebtedness by levies within the boundaries of the unituntil the indebtedness is paid in full.
(c) A unit that agreed to the borrowing of money to purchase fireprotection equipment while a participating unit under this chaptershall continue to repay the unit's share of that indebtedness byimposing a property tax within the boundaries of the unit until theindebtedness is paid in full. The department of local governmentfinance shall determine the amount of the indebtedness thatrepresents the unit's fair share, taking into account the equipment
purchased, the useful life of the equipment, the depreciated value ofthe equipment, and the number of years the unit benefited from theequipment.
As added by P.L.37-1994, SEC.3. Amended by P.L.326-1995, SEC.4;P.L.90-2002, SEC.502.
IC 36-8-19-10
Disbandment of existing fire departments
Sec. 10. This chapter does not require a municipality or townshipto disband its fire department unless its legislative body consents byordinance (if the unit is a municipality) or resolution (if the unit is atownship) to do so.
As added by P.L.37-1994, SEC.3. Amended by P.L.47-2007, SEC.5.
IC 36-8-19-11
Annexation of territory
Sec. 11. Any area that is part of a territory and that is annexed bya municipality that is not a part of the territory ceases to be a part ofthe territory when the municipality begins to provide fire protectionservices to the area.
As added by P.L.37-1994, SEC.3.
IC 36-8-19-12
Adjustments to tax levy; entry year of participants
Sec. 12. In the same year that a tax levy is imposed under thischapter, each respective participating unit's tax levies attributable toproviding fire protection services within the unit shall be reduced byan amount equal to the amount levied for fire protection services inthe year immediately preceding the year in which each respectiveunit became a participating unit.
As added by P.L.37-1994, SEC.3.
IC 36-8-19-13
Withdrawal from territory; ordinance or resolution; effect ofadoption
Sec. 13. (a) If a unit elects to withdraw from a fire protectionterritory established under this chapter, the unit must after January1 but before April 1, adopt an ordinance (if the unit is a county ormunicipality) or a resolution (if the unit is a township) providing forthe withdrawal. An ordinance or resolution adopted under thissection takes effect July 1 of the year that the ordinance or resolutionis adopted.
(b) If an ordinance or a resolution is adopted under subsection (a):
(1) the unit's maximum permissible ad valorem property taxlevy with respect to fire protection services shall be initiallyincreased by the amount of the particular unit's previous yearlevy under this chapter; and
(2) additional increases with respect to fire protection serviceslevy amounts are subject to the tax levy limitations underIC 6-1.1-18.5, except for the part of the unit's levy that is
necessary to retire the unit's share of any debt incurred whilethe unit was a participating unit.
As added by P.L.37-1994, SEC.3. Amended by P.L.326-1995, SEC.5;P.L.47-2007, SEC.6.
IC 36-8-19-14
Payment of line of duty health care expenses for firefighters
Sec. 14. (a) A provider unit shall pay for the care of a full-time,paid firefighter who:
(1) suffers an injury; or
(2) contracts an illness;
during the performance of the firefighter's duty.
(b) The provider unit shall pay for the following expensesincurred by a firefighter described in subsection (a):
(1) Medical and surgical care.
(2) Medicines and laboratory, curative, and palliative agentsand means.
(3) X-ray, diagnostic, and therapeutic service, including duringthe recovery period.
(4) Hospital and special nursing care if the physician or surgeonin charge considers it necessary for proper recovery.
(c) Expenditures required by subsection (a) shall be paid from thefund used by the provider unit for payment of the costs attributableto providing fire protection services in the provider unit.
(d) A provider unit that has paid for the care of a firefighter undersubsection (a) has a cause of action for reimbursement of the amountpaid under subsection (a) against any third party against whom thefirefighter has a cause of action for an injury sustained because of,or an illness caused by, the third party. The provider unit's cause ofaction under this subsection is in addition to, and not in lieu of, thecause of action of the firefighter against the third party.
As added by P.L.150-2002, SEC.5.
IC 36-8-19-15
Dissolution of fire protection territory; reversion of title to realproperty
Sec. 15. (a) For purposes of this section, a fire protection territoryis dissolved if all participating units withdraw from the fireprotection territory as provided in section 13 of this chapter.
(b) When a fire protection territory dissolves, title to any realproperty transferred to the provider unit reverts to the participatingunit that transferred the real property to the provider unit.
As added by P.L.128-2008, SEC.9.