Reprinted

April 11, 2001





ENGROSSED

SENATE BILL No. 9

_____


DIGEST OF SB 9 (Updated April 10, 2001 6:16 PM - DI 87)



Citations Affected: IC 6-1.1; IC 36-8.

Synopsis: Fire Protection Territory. Provides that the ad valorem property tax levy limits apply to property taxes imposed by a unit that enters a fire protection territory created after July 31, 2001. Provides that for the three calendar years following the year that a unit participates in the fire protection territory the ad valorem property tax levy limits do not apply to property taxes imposed by a unit for fire protection services. Requires the legislative body of each unit creating a fire protection territory to give notice of and hold a public hearing before adopting an ordinance to create the territory. Specifies the information that must be included in the notice. Allows an agent of a volunteer fire department to collect service charges imposed by the volunteer fire department. Provides that different property tax rates may apply in the units that make up the territory, so long as a rate applies uniformly to all of a unit's taxable property within the territory.

Effective: Upon passage; July 1, 2001; August 1, 2001.





Zakas, Hume
(HOUSE SPONSOR _ DVORAK)




    January 8, 2001, read first time and referred to Committee on Rules and Legislative Procedure.
    January 29, 2001, amended; reassigned to Committee on Governmental and Regulatory Affairs.
    March 1, 2001, amended, reported favorably _ Do Pass.
    March 5, 2001, read second time, amended, ordered engrossed.
    March 6, 2001, engrossed. Read third time, passed. Yeas 50, nays 0.

HOUSE ACTION

    March 12, 2001, read first time and referred to Committee on Local Government.
    March 29, 2001, amended, reported _ Do Pass.
    April 10, 2001, read second time, amended, ordered engrossed.







Reprinted

April 11, 2001

First Regular Session 112th General Assembly (2001)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2000 General Assembly.


ENGROSSED

SENATE BILL No. 9



    A BILL FOR AN ACT to amend the Indiana Code concerning local government.

Be it enacted by the General Assembly of the State of Indiana:

    SECTION 1. IC 6-1.1-18.5-10.5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE AUGUST 1, 2001]: Sec. 10.5. (a) The ad valorem property tax levy limits imposed by section 3 of this chapter do not apply to ad valorem property taxes imposed by a civil taxing unit for fire protection services within a fire protection territory under IC 36-8-19, if the civil taxing unit is a participating unit in a fire protection territory established before August 1, 2001.
    (b) For purposes of computing the ad valorem property tax levy limits imposed on a civil taxing unit by section 3 of this chapter on a civil taxing unit that is a participating unit in a fire protection territory established before August 1, 2001, the civil taxing unit's ad valorem property tax levy for a particular calendar year does not include that part of the levy imposed under IC 36-8-19.
     (b) This subsection applies to a participating unit in a fire protection territory established under IC 36-8-19 after July 31, 2001. The ad valorem property tax levy limits imposed by section 3 of this chapter do not apply to ad valorem property taxes

imposed by a civil taxing unit for fire protection services within a fire protection territory under IC 36-8-19 for the three (3) calendar years in which the participating unit levies a tax to support the territory. For purposes of computing the ad valorem property tax levy limits imposed on a civil taxing unit by section 3 of this chapter, for the three (3) calendar years for which the participating unit levies a tax to support the territory, the civil taxing unit's ad valorem property tax levy for a particular calendar year does not include that part of the levy imposed under IC 36-8-19.
    SECTION 2. IC 36-8-12-16, AS AMENDED BY P.L.1-1999, SECTION 100, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 16. (a) A volunteer fire department that provides service within a jurisdiction served by the department may establish a schedule of charges for the services that the department provides not to exceed the state fire marshal's recommended schedule for services. The volunteer fire department or its agent may collect a service charge according to this schedule from the owner of property that receives service if the following conditions are met:
        (1) At the following times, the department gives notice under IC 5-3-1-4(d) in each political subdivision served by the department of the amount of the service charge for each service that the department provides:
            (A) Before the schedule of service charges is initiated.
            (B) When there is a change in the amount of a service charge.
        (2) The property owner has not sent written notice to the department to refuse service by the department to the owner's property.
        (3) The department's bill for payment of the service charge:
            (A) is submitted to the property owner in writing within thirty (30) days after the services are provided; and
            (B) includes a copy of a fire incident report in the form prescribed by the state fire marshal, if the service was provided for an event that requires a fire incident report.
    (b) A volunteer fire department shall use the revenue the department collects collected from the fire service charges under this section for:
        (1) the purchase of equipment, buildings, and property for firefighting, fire protection, or other emergency services;
        (2) deposit in the township firefighting fund established under IC 36-8-13-4; or
        (3) to pay principal and interest on a loan under IC 22-14-5.
    (c) If at least twenty-five percent (25%) of the money received by a

volunteer fire department for providing fire protection or emergency services is received under one (1) or more contracts with one (1) or more political subdivisions (as defined in IC 34-6-2-110), the legislative body of a contracting political subdivision must approve the schedule of service charges established under subsection (a) before the schedule of service charges is initiated in that political subdivision.
    (d) A volunteer fire department that:
        (1) has contracted with a political subdivision to provide fire protection or emergency services; and
        (2) charges for services under this section;
must submit a report to the legislative body of the political subdivision before April 1 of each year indicating the amount of service charges collected during the previous calendar year and how those funds have been expended.
    (e) The state fire marshal shall annually prepare and publish a recommended schedule of service charges for fire protection services.
    (f) The volunteer fire department or its agent may maintain a civil action to recover an unpaid service charge under this section.
    SECTION 3. IC 36-8-19-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: 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 identical ordinances after January 1 but before April 1 authorizing the unit to become a party to an agreement for the establishment of a fire protection territory. Before adopting an ordinance under this section, a legislative body must hold a public hearing to receive public comment on the proposed ordinance. 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.
        (4) A statement as to whether the proposed ordinance         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 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.
    (b) (d) An ordinance adopted under this section takes effect July 1 of the year the ordinance is adopted.
    SECTION 4. IC 36-8-19-7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: 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.

    SECTION 5. IC 36-8-19-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 8. (a) Upon the adoption of identical ordinances 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).
    (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. After estimating expenses and receipts of money, the provider unit shall establish the tax levy required to fund the estimated budget. The tax under this section is not subject to the tax levy limitations imposed on civil taxing units under IC 6-1.1-18.5. 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. All participating units must agree to the amount to be transferred by adoption of identical ordinances specifying the amount.
     (f) The tax under this section is not subject to the tax levy limitations imposed on civil taxing units under IC 6-1.1-18.5 for any unit that is a participating unit in a fire protection territory that was established before August 1, 2001.
    (g) This subsection applies to a participating unit in a fire protection territory established under IC 36-8-19 after July 31, 2001. For purposes of calculating a participating unit's maximum permissible ad valorem property tax levy for the three (3) calendar years in which the participating unit levies a tax to support the territory, the unit's maximum permissible ad valorem property tax levy for the preceding calendar year under IC 6-1.1-18.5-3(a) STEP ONE or IC 6-1.1-18.5-3(b) STEP ONE is increased each year by an amount equal to the difference between the:
        (1) amount the unit will have to levy for the ensuing calendar year in order to fund the unit's share of the fire protection

territory budget for the operating costs as provided in the ordinance making the unit a participating unit in the fire protection territory; and
        (2) unit's levy for fire protection services for the calendar year that immediately precedes the ensuing calendar year in which the participating unit levies a tax to support the territory.

    SECTION 6. An emergency is declared for this act.