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, this
chapter applies to any geographic area that is established as a fire
protection 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 containing
consolidated city
Sec. 1.5. (a) If the fire department of a township is consolidated
under IC 36-3-1-6.1, after the effective date of the consolidation the
township may not establish a fire protection territory under this
chapter.
(b) A fire protection territory that is established before the
effective date of the consolidation in a township in which the
township's fire department is consolidated under IC 36-3-1-6.1
becomes part of the geographic area in which the fire department of
a 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 unit
that adopts an ordinance or a resolution under section 6 of this
chapter.
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 the
participating unit that is responsible for providing the fire protection
services 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 fire
protection 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 protection
territory for any of the following purposes:
(1) Fire protection, including the capability for extinguishing all
fires that might be reasonably expected because of the types of
improvements, personal property, and real property within the
boundaries of the territory.
(2) Fire prevention, including identification and elimination of
all potential and actual sources of fire hazard.
(3) Other purposes or functions related to fire protection and
fire prevention.
(b) Not more than one (1) unit within the proposed territory may
be designated as the provider unit for the territory.
(c) The boundaries of a territory need not coincide with those of
other 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 legislative
bodies of each unit desiring to become a part of the proposed
territory must adopt an ordinance (if the unit is 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 ordinances
and resolutions adopted by the other units desiring to become
a part of the proposed territory.
(2) The ordinance or resolution is adopted after January 1 but
before April 1.
(3) The ordinance or resolution authorizes the unit to become a
party to an agreement for the establishment of a fire protection
territory.
(4) The ordinance or resolution is adopted after the legislative
body holds a public hearing to receive public comment on the
proposed ordinance or resolution. The legislative body must
give notice of the hearing under IC 5-3-1.
(b) The notice required under this section shall include all of the
following:
(1) A list of the provider unit and all participating units in the
proposed territory.
(2) The date, time, and location of the hearing.
(3) The location where the public can inspect the proposed
ordinance or resolution.
(4) A statement as to whether the proposed ordinance or
resolution requires uniform tax rates or different tax rates
within the territory.
(5) The name and telephone number of a representative of the
unit who may be contacted for further information.
(c) The ordinance or resolution adopted under this section shall
include at least the following:
(1) The boundaries of the proposed territory.
(2) The identity of the provider unit and all other participating
units desiring to be included within the territory.
(3) An agreement to impose:
(A) a uniform tax rate upon all of the taxable property within
the territory for fire protection services; or
(B) different tax rates for fire protection services for the
units desiring to be included within the territory, so long as
a tax rate applies uniformly to all of a unit's taxable property
within the territory.
(4) The contents of the agreement to establish the territory.
(d) An ordinance or a resolution adopted under this section takes
effect 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 a
territory may agree to change the provider unit of the territory from
one (1) participating unit to another participating unit. To change the
provider unit, the legislative body of each participating unit must
adopt an ordinance (if the unit is a county or municipality) or a
resolution (if the unit is a township) that agrees to and specifies the
new provider unit. The provider unit may not be changed unless all
participating units agree on the participating unit that will become
the new provider unit. The participating units may not change the
provider unit more than one (1) time in any year.
(b) The following apply to an ordinance or a resolution adopted
under this section to change the provider unit of the territory:
(1) The ordinance or resolution must be adopted after January
1 but before April 1 of a year.
(2) The ordinance or resolution takes effect January 1 of the
year following the year in which the ordinance or resolution is
adopted.
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, so
long as a tax rate applies uniformly to all of a unit's taxable
property 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 income
tax, county option income tax, and county economic development
income tax distributions or excise tax distributions that are
distributed based on the amount of a taxing unit's property tax levies,
each participating unit in a territory is considered to have imposed a
part of the property tax levy imposed for the territory. The part of the
property tax levy imposed for the territory for a particular year that
shall be attributed to a participating unit is equal to the amount
determined in the following STEPS:
STEP ONE: Determine the total amount of all property taxes
imposed by the participating unit in the year before the year in
which a property tax levy was first imposed for the territory.
STEP TWO: Determine the sum of the STEP ONE amounts for
all participating units.
STEP THREE: Divide the STEP ONE result by the STEP TWO
result.
STEP FOUR: Multiply the STEP THREE result by the property
tax 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 or
resolutions, or both, by the participating units under section 6 of this
chapter, the designated provider unit must establish a fire protection
territory fund from which all expenses of operating and maintaining
the 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 the
territory shall be paid. The purposes described in this subsection are
the sole purposes of the fund, and money in the fund may not be used
for any other expenses. Except as allowed in subsections (d) and (e)
and section 8.5 of this chapter, the provider unit is not authorized to
transfer 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 as
authorized under subsection (d).
(3) Any receipts from a false alarm fee or service charge
imposed by the participating units under IC 36-8-13-4.
(4) Any money transferred to the fund by a participating unit
under section 8.6 of this chapter.
(c) The provider unit, with the assistance of each of the other
participating units, shall annually budget the necessary money to
meet the expenses of operation and maintenance of the fire
protection services within the territory, plus a reasonable operating
balance, not to exceed twenty percent (20%) of the budgeted
expenses. Except as provided in IC 6-1.1-18.5-10.5, after estimating
expenses and receipts of money, the provider unit shall establish the
tax levy required to fund the estimated budget. The amount budgeted
under this subsection shall be considered a part of each of the
participating unit's budget.
(d) If the amount levied in a particular year is insufficient to cover
the costs incurred in providing fire protection services within the
territory, the provider unit may transfer from available sources to the
fire protection territory fund the money needed to cover those costs.
In this case:
(1) the levy in the following year shall be increased by the
amount required to be transferred; and
(2) the provider unit is entitled to transfer the amount described
in subdivision (1) from the fund as reimbursement to the
provider unit.
(e) If the amount levied in a particular year exceeds the amount
necessary to cover the costs incurred in providing fire protection
services within the territory, the levy in the following year shall be
reduced by the amount of surplus money that is not transferred to the
equipment replacement fund established under section 8.5 of this
chapter. The amount that may be transferred to the equipment
replacement fund may not exceed five percent (5%) of the levy for
that fund for that year. Each participating unit must agree to the
amount to be transferred by adopting an ordinance (if the unit is a
county or municipality) or a resolution (if the unit is a township) that
specifies an identical amount to be transferred.
(f) The tax under this section is subject to the tax levy limitations
imposed 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; maximum
property tax rate
Sec. 8.5. (a) Participating units may agree to establish an
equipment replacement fund under this section to be used to
purchase fire protection equipment, including housing, that will be
used to serve the entire territory. To establish the fund, the legislative
bodies of each participating unit must adopt an ordinance (if the unit
is 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 ordinances
and resolutions adopted by the other participating units under
this section.
(2) The ordinance or resolution is adopted after January 1 but
before 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 provider
unit.
(B) An agreement to impose a uniform tax rate upon all of
the taxable property within the territory for the equipment
replacement fund.
(C) The contents of the agreement to establish the fund.
An ordinance or a resolution adopted under this section takes effect
July 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 of
money in the fund to purchase fire protection equipment;
(2) incur debt to purchase fire protection equipment and impose
a property tax to retire the loan; or
(3) transfer an amount from the fire protection territory fund to
the fire equipment replacement fund not to exceed five percent
(5%) of the levy for the fire protection territory fund for that
year;
or any combination of these options. The property tax rate for the
levy imposed under this section may not exceed three and thirty-three
hundredths cents ($0.0333) per one hundred dollars ($100) of
assessed value. Before debt may be incurred, the fiscal body of a
participating unit must adopt an ordinance (if the unit is a county or
municipality) or a resolution (if the unit is a township) that specifies
the amount and purpose of the debt. The ordinance or resolution
must be identical to the other ordinances and resolutions adopted by
the participating units. In addition, the department of local
government finance must approve the incurrence of the debt using
the same standards as applied to the incurrence of debt by civil
taxing units.
(c) Money in the fund may be used by the provider unit only for
those purposes set forth in the agreement among the participating
units 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 protection
territory fund or fire protection territory equipment replacement
fund
Sec. 8.6. (a) A participating unit may adopt an ordinance or a
resolution to transfer any money belonging to the participating unit
to:
(1) the fire protection territory fund established under section
8 of this chapter;
(2) the fire protection territory equipment replacement fund
established 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 must
state 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 fire
protection 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 sale
or mortgage contract
Sec. 8.7. After a sufficient appropriation for the purchase of
firefighting apparatus and equipment, including housing, is made and
is available, the participating units, with the approval of the fiscal
body of each participating unit, may purchase the firefighting
apparatus and equipment for the territory on an installment
conditional sale or mortgage contract running for a period not
exceeding:
(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 of
local government finance; and
(B) is purchasing the firefighting equipment with funding
from the:
(i) state or its instrumentalities; or
(ii) federal government or its instrumentalities.
The purchase shall be amortized in equal or approximately equal
installments 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, when
approving a rate and levy fixed by the provider unit, shall verify that
a 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 services
before becoming a participating unit under this chapter shall continue
to repay that indebtedness by levies within the boundaries of the unit
until the indebtedness is paid in full.
(c) A unit that agreed to the borrowing of money to purchase fire
protection equipment while a participating unit under this chapter
shall continue to repay the unit's share of that indebtedness by
imposing a property tax within the boundaries of the unit until the
indebtedness is paid in full. The department of local government
finance shall determine the amount of the indebtedness that
represents the unit's fair share, taking into account the equipment
purchased, the useful life of the equipment, the depreciated value of
the equipment, and the number of years the unit benefited from the
equipment.
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 township
to disband its fire department unless its legislative body consents by
ordinance (if the unit is a municipality) or resolution (if the unit is a
township) 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 by
a municipality that is not a part of the territory ceases to be a part of
the territory when the municipality begins to provide fire protection
services 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 this
chapter, each respective participating unit's tax levies attributable to
providing fire protection services within the unit shall be reduced by
an amount equal to the amount levied for fire protection services in
the year immediately preceding the year in which each respective
unit 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 of
adoption
Sec. 13. (a) If a unit elects to withdraw from a fire protection
territory established under this chapter, the unit must after January
1 but before April 1, adopt an ordinance (if the unit is a county or
municipality) or a resolution (if the unit is a township) providing for
the withdrawal. An ordinance or resolution adopted under this
section takes effect July 1 of the year that the ordinance or resolution
is adopted.
(b) If an ordinance or a resolution is adopted under subsection (a):
(1) the unit's maximum permissible ad valorem property tax
levy with respect to fire protection services shall be initially
increased by the amount of the particular unit's previous year
levy under this chapter; and
(2) additional increases with respect to fire protection services
levy amounts are subject to the tax levy limitations under
IC 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 while
the 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 expenses
incurred by a firefighter described in subsection (a):
(1) Medical and surgical care.
(2) Medicines and laboratory, curative, and palliative agents
and means.
(3) X-ray, diagnostic, and therapeutic service, including during
the recovery period.
(4) Hospital and special nursing care if the physician or surgeon
in charge considers it necessary for proper recovery.
(c) Expenditures required by subsection (a) shall be paid from the
fund used by the provider unit for payment of the costs attributable
to providing fire protection services in the provider unit.
(d) A provider unit that has paid for the care of a firefighter under
subsection (a) has a cause of action for reimbursement of the amount
paid under subsection (a) against any third party against whom the
firefighter has a cause of action for an injury sustained because of,
or an illness caused by, the third party. The provider unit's cause of
action under this subsection is in addition to, and not in lieu of, the
cause 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 real
property
Sec. 15. (a) For purposes of this section, a fire protection territory
is dissolved if all participating units withdraw from the fire
protection territory as provided in section 13 of this chapter.
(b) When a fire protection territory dissolves, title to any real
property transferred to the provider unit reverts to the participating
unit that transferred the real property to the provider unit.
As added by P.L.128-2008, SEC.9.