Indiana 2023 Regular Session

Indiana House Bill HB1553 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1553
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-1.1; IC 36-1.5-4-40.5; IC 36-6-6-14; IC 36-8.
7	7	Synopsis: Township fire and emergency services funding. Provides
8	8	that the current township firefighting fund shall be referred to as the
9	9	township firefighting and emergency services fund. Provides that a
10	10	township may elect to establish a township firefighting fund and a
11	11	township emergency services fund in lieu of the township firefighting
12	12	and emergency services fund. Provides that a township may levy ad
13	13	valorem property taxes for each fund. Provides that if a township elects
14	14	to establish separate levies for the township firefighting fund and the
15	15	emergency services fund, the levies are combined for purposes of
16	16	calculating a township's maximum permissible levy. Makes conforming
17	17	amendments.
18	18	Effective: January 1, 2024.
19	19	Culp
20	20	January 19, 2023, read first time and referred to Committee on Ways and Means.
21	21	2023 IN 1553—LS 6891/DI 116 Introduced
22	22	First Regular Session of the 123rd General Assembly (2023)
23	23	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
24	24	Constitution) is being amended, the text of the existing provision will appear in this style type,
25	25	additions will appear in this style type, and deletions will appear in this style type.
26	26	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
27	27	provision adopted), the text of the new provision will appear in this style type. Also, the
28	28	word NEW will appear in that style type in the introductory clause of each SECTION that adds
29	29	a new provision to the Indiana Code or the Indiana Constitution.
30	30	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
31	31	between statutes enacted by the 2022 Regular Session of the General Assembly.
32	32	HOUSE BILL No. 1553
33	33	A BILL FOR AN ACT to amend the Indiana Code concerning
34	34	taxation.
35	35	Be it enacted by the General Assembly of the State of Indiana:
36	36	1 SECTION 1. IC 6-1.1-18-28, AS ADDED BY P.L.154-2020,
37	37	2 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
38	38	3 JANUARY 1, 2024]: Sec. 28. (a) The executive of a township may,
39	39	4 upon approval by the township fiscal body, submit a petition to the
40	40	5 department of local government finance for an increase in the
41	41	6 township's maximum permissible ad valorem property tax levy for its
42	42	7 township firefighting and emergency services fund under
43	43	8 IC 36-8-13-4 IC 36-8-13-4(a)(1) or the levies for the township
44	44	9 firefighting fund and township emergency services fund described
45	45	10 in IC 36-8-13-4(a)(2), as applicable, for property taxes first due and
46	46	11 payable in 2021 or for any year thereafter for which a petition is
47	47	12 submitted under this section.
48	48	13 (b) If the township submits a petition as provided in subsection (a)
49	49	14 before August 1, 2020, or April 1 of a year, thereafter, the department
50	50	15 of local government finance shall increase the township's maximum
51	51	16 permissible ad valorem property tax levy for the township firefighting
52	52	17 and emergency services fund under IC 36-8-13-4 IC 36-8-13-4(a)(1)
53	53	2023 IN 1553—LS 6891/DI 116 2
54	54	1 or the combined levies for the township firefighting fund and
55	55	2 township emergency services fund described in IC 36-8-13-4(a)(2),
56	56	3 as applicable, for property taxes first due and payable in the
57	57	4 immediately succeeding year by using the following formula for
58	58	5 purposes of subsection (c)(2):
59	59	6 STEP ONE: Determine the percentage increase in the population,
60	60	7 as determined by the township fiscal body and as may be
61	61	8 prescribed by the department of local government finance, that is
62	62	9 within the fire protection and emergency services area of the
63	63	10 township during the ten (10) year period immediately preceding
64	64	11 the year in which the petition is submitted under subsection (a).
65	65	12 The township fiscal body may use the most recently available
66	66	13 population data issued by the Bureau of the Census during the ten
67	67	14 (10) year period immediately preceding the petition.
68	68	15 STEP TWO: Determine the greater of zero (0) or the result of:
69	69	16 (A) the STEP ONE percentage; minus
70	70	17 (B) six percent (6%);
71	71	18 expressed as a decimal.
72	72	19 STEP THREE: Determine a rate that is the lesser of:
73	73	20 (A) fifteen-hundredths (0.15); or
74	74	21 (B) the STEP TWO result.
75	75	22 STEP FOUR: Reduce the STEP THREE rate by any rate increase
76	76	23 in the township's property tax rate or rates for its township
77	77	24 firefighting and emergency services fund, township firefighting
78	78	25 fund, or township emergency services fund, as applicable,
79	79	26 within the immediately preceding ten (10) year period that was
80	80	27 made based on a petition submitted by the township under this
81	81	28 section.
82	82	29 (c) The township's maximum permissible ad valorem property tax
83	83	30 levy for its township firefighting and emergency services fund under
84	84	31 IC 36-8-13-4 IC 36-8-13-4(a)(1) or the combined levies for the
85	85	32 township firefighting fund and township emergency services fund
86	86	33 described in IC 36-8-13-4(a)(2) for property taxes first due and
87	87	34 payable in a given year, as adjusted under this section, shall be
88	88	35 calculated as:
89	89	36 (1) the amount of the ad valorem property tax levy increase for
90	90	37 the township firefighting and emergency services fund under
91	91	38 IC 36-8-13-4(a)(1) or the combined levies for the township
92	92	39 firefighting fund and township emergency services fund
93	93	40 described in IC 36-8-13-4(a)(2), as applicable, without regard
94	94	41 to this section; plus
95	95	42 (2) an amount equal to the result of:
96	96	2023 IN 1553—LS 6891/DI 116 3
97	97	1 (A) the rate determined under the formula in subsection (b);
98	98	2 multiplied by
99	99	3 (B) the net assessed value of the fire protection and emergency
100	100	4 services area divided by one hundred (100).
101	101	5 The calculation under this subsection shall be used in the determination
102	102	6 of the township's maximum permissible ad valorem property tax levy
103	103	7 under IC 36-8-13-4 for property taxes first due and payable in the first
104	104	8 year of the increase and thereafter.
105	105	9 SECTION 2. IC 6-1.1-18.5-1, AS AMENDED BY P.L.197-2016,
106	106	10 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
107	107	11 JANUARY 1, 2024]: Sec. 1. As used in this chapter:
108	108	12 "Ad valorem property tax levy for an ensuing calendar year" means
109	109	13 the total property taxes imposed by a civil taxing unit for current
110	110	14 property taxes collectible in that ensuing calendar year. However, if a
111	111	15 township elects to establish both a township firefighting levy and
112	112	16 a township emergency services levy under IC 36-8-13-4(b)(2), the
113	113	17 township firefighting levy and township emergency levy shall be
114	114	18 combined and considered as a single levy for purposes of this
115	115	19 chapter.
116	116	20 "Civil taxing unit" means any taxing unit except a school
117	117	21 corporation.
118	118	22 "Maximum permissible ad valorem property tax levy for the
119	119	23 preceding calendar year" means, for purposes of determining a
120	120	24 maximum permissible ad valorem property tax levy under section 3 of
121	121	25 this chapter for property taxes imposed for an assessment date after
122	122	26 January 15, 2011, the term means the civil taxing unit's maximum
123	123	27 permissible ad valorem property tax levy for the calendar year
124	124	28 immediately preceding the ensuing calendar year, as that levy was
125	125	29 determined under section 3 of this chapter (regardless of whether the
126	126	30 taxing unit imposed the entire amount of the maximum permissible ad
127	127	31 valorem property tax levy in the immediately preceding year).
128	128	32 "Taxable property" means all tangible property that is subject to the
129	129	33 tax imposed by this article and is not exempt from the tax under
130	130	34 IC 6-1.1-10 or any other law. For purposes of sections 2 and 3 of this
131	131	35 chapter, the term "taxable property" is further defined in section 6 of
132	132	36 this chapter.
133	133	37 SECTION 3. IC 36-1.5-4-40.5, AS AMENDED BY P.L.159-2020,
134	134	38 SECTION 77, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
135	135	39 JANUARY 1, 2024]: Sec. 40.5. The following apply in the case of a
136	136	40 reorganization under this article that includes a township and another
137	137	41 political subdivision:
138	138	42 (1) If the township borrowed money from a township fund under
139	139	2023 IN 1553—LS 6891/DI 116 4
140	140	1 IC 36-6-6-14(c) to pay the operating expenses of the township fire
141	141	2 department or a volunteer fire department before the
142	142	3 reorganization:
143	143	4 (A) the reorganized political subdivision is not required to
144	144	5 repay the entire loan during the following year; and
145	145	6 (B) the reorganized political subdivision may repay the loan in
146	146	7 installments during the following five (5) years.
147	147	8 (2) Except as provided in subdivision (3):
148	148	9 (A) the reorganized political subdivision continues to be
149	149	10 responsible after the reorganization for providing township
150	150	11 services in all areas of the township, including within the
151	151	12 territory of a municipality in the township that does not
152	152	13 participate in the reorganization; and
153	153	14 (B) the reorganized political subdivision retains the powers of
154	154	15 a township after the reorganization in order to provide
155	155	16 township services as required by clause (A).
156	156	17 (3) Powers and duties of the reorganized political subdivision may
157	157	18 be transferred as authorized in an interlocal cooperation
158	158	19 agreement approved under IC 36-1-7 or as authorized in a
159	159	20 cooperative agreement approved under IC 36-1.5-5.
160	160	21 (4) If all or part of a municipality in the township is not
161	161	22 participating in the reorganization, not less than ten (10) township
162	162	23 taxpayers who reside within territory that is not participating in
163	163	24 the reorganization may file a petition with the county auditor
164	164	25 protesting the reorganized political subdivision's township
165	165	26 assistance levy. The petition must be filed not more than thirty
166	166	27 (30) days after the reorganized political subdivision finally adopts
167	167	28 the reorganized political subdivision's township assistance levy.
168	168	29 The petition must state the taxpayers' objections and the reasons
169	169	30 why the taxpayers believe the reorganized political subdivision's
170	170	31 township assistance levy is excessive or unnecessary. The county
171	171	32 auditor shall immediately certify a copy of the petition, together
172	172	33 with other data necessary to present the questions involved, to the
173	173	34 department of local government finance. Upon receipt of the
174	174	35 certified petition and other data, the department of local
175	175	36 government finance shall fix a time and place for the hearing of
176	176	37 the matter. The hearing shall be held not less than five (5) days
177	177	38 and not more than thirty (30) days after the receipt of the certified
178	178	39 documents. The hearing shall be held in the county where the
179	179	40 petition arose. Notice of the hearing shall be given by the
180	180	41 department of local government finance to the reorganized
181	181	42 political subdivision and to the first ten (10) taxpayer petitioners
182	182	2023 IN 1553—LS 6891/DI 116 5
183	183	1 listed on the petition by letter. The letter shall be sent to the first
184	184	2 ten (10) taxpayer petitioners at the taxpayers' usual place of
185	185	3 residence at least five (5) days before the date of the hearing.
186	186	4 After the hearing, the department of local government finance
187	187	5 may reduce the reorganized political subdivision's township
188	188	6 assistance levy to the extent that the levy is excessive or
189	189	7 unnecessary. A taxpayer who signed a petition under this
190	190	8 subdivision or a reorganized political subdivision against which
191	191	9 a petition under this subdivision is filed may petition for judicial
192	192	10 review of the final determination of the department of local
193	193	11 government finance under this subdivision. The petition must be
194	194	12 filed in the tax court not more than forty-five (45) days after the
195	195	13 date of the department of local government finance's final
196	196	14 determination.
197	197	15 (5) Section 40 of this chapter applies to the debt service levy of
198	198	16 the reorganized political subdivision and to the department of
199	199	17 local government finance's determination of the new maximum
200	200	18 permissible ad valorem property tax levy for the reorganized
201	201	19 political subdivision.
202	202	20 (6) The reorganized political subdivision may not borrow money
203	203	21 under IC 36-6-6-14(b) or IC 36-6-6-14(c).
204	204	22 (7) The new maximum permissible ad valorem property tax levy
205	205	23 for the reorganized political subdivision's firefighting and
206	206	24 emergency services fund under IC 36-8-13-4 IC 36-8-13-4(a)(1)
207	207	25 or the combined levies for the township firefighting fund and
208	208	26 township emergency services fund described in
209	209	27 IC 36-8-13-4(a)(2) is equal to:
210	210	28 (A) the result of:
211	211	29 (i) the maximum permissible ad valorem property tax levy
212	212	30 for the township's firefighting and emergency services fund
213	213	31 under IC 36-8-13-4 IC 36-8-13-4(a)(1) or the combined ad
214	214	32 valorem property tax levies for the township firefighting
215	215	33 fund and township emergency services fund described in
216	216	34 IC 36-8-13-4(a)(2), as applicable, in the year preceding the
217	217	35 year in which the reorganization is effective; multiplied by
218	218	36 (ii) the maximum levy growth quotient applicable for
219	219	37 property taxes first due and payable in the year in which the
220	220	38 reorganization is effective; plus
221	221	39 (B) any amounts borrowed by the township under
222	222	40 IC 36-6-6-14(b) or IC 36-6-6-14(c) in the year preceding the
223	223	41 year in which the reorganization is effective.
224	224	42 SECTION 4. IC 36-6-6-14, AS AMENDED BY P.L.203-2016,
225	225	2023 IN 1553—LS 6891/DI 116 6
226	226	1 SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
227	227	2 JANUARY 1, 2024]: Sec. 14. (a) At any special meeting, if two (2) or
228	228	3 more members give their consent, the legislative body may determine
229	229	4 whether there is a need for fire and emergency services or other
230	230	5 emergency requiring the expenditure of money not included in the
231	231	6 township's budget estimates and levy.
232	232	7 (b) Subject to section 14.5 of this chapter, if the legislative body
233	233	8 finds that a need for fire and emergency services or other emergency
234	234	9 exists, it may issue a special order, entered and signed on the record,
235	235	10 authorizing the executive to borrow a specified amount of money
236	236	11 sufficient to meet the emergency. However, the legislative body may
237	237	12 not authorize the executive to borrow money under this subsection in
238	238	13 more than three (3) calendar years during any five (5) year period.
239	239	14 (c) Notwithstanding IC 36-8-13-4(a), the legislative body may
240	240	15 authorize the executive to borrow a specified sum from a township
241	241	16 fund other than the township firefighting or emergency services fund,
242	242	17 or if applicable, the township firefighting fund or township
243	243	18 emergency services fund if the legislative body finds that the
244	244	19 emergency requiring the expenditure of money is related to paying the
245	245	20 operating expenses of a township fire department or a volunteer fire
246	246	21 department. At its next annual session, the legislative body shall cover
247	247	22 the debt created by making a levy to the credit of the fund for which the
248	248	23 amount was borrowed under this subsection.
249	249	24 (d) In determining whether a fire and emergency services need
250	250	25 exists requiring the expenditure of money not included in the
251	251	26 township's budget estimates and levy, the legislative body and any
252	252	27 reviewing authority considering the approval of the additional
253	253	28 borrowing shall consider the following factors:
254	254	29 (1) The current and projected certified and noncertified public
255	255	30 safety payroll needs of the township.
256	256	31 (2) The current and projected need for fire and emergency
257	257	32 services within the jurisdiction served by the township.
258	258	33 (3) Any applicable national standards or recommendations for the
259	259	34 provision of fire protection and emergency services.
260	260	35 (4) Current and projected growth in the number of residents and
261	261	36 other citizens served by the township, emergency service runs,
262	262	37 certified and noncertified personnel, and other appropriate
263	263	38 measures of public safety needs in the jurisdiction served by the
264	264	39 township.
265	265	40 (5) Salary comparisons for certified and noncertified public safety
266	266	41 personnel in the township and other surrounding or comparable
267	267	42 jurisdictions.
268	268	2023 IN 1553—LS 6891/DI 116 7
269	269	1 (6) Prior annual expenditures for fire and emergency services,
270	270	2 including all amounts budgeted under this chapter.
271	271	3 (7) Current and projected growth in the assessed value of property
272	272	4 requiring protection in the jurisdiction served by the township.
273	273	5 (8) Other factors directly related to the provision of public safety
274	274	6 within the jurisdiction served by the township.
275	275	7 (e) In the event the township received additional funds under this
276	276	8 chapter in the immediately preceding budget year for an approved
277	277	9 expenditure, any reviewing authority shall take into consideration the
278	278	10 use of the funds in the immediately preceding budget year and the
279	279	11 continued need for funding the services and operations to be funded
280	280	12 with the proceeds of the loan.
281	281	13 SECTION 5. IC 36-8-12-13, AS AMENDED BY P.L.10-2019,
282	282	14 SECTION 140, IS AMENDED TO READ AS FOLLOWS
283	283	15 [EFFECTIVE JANUARY 1, 2024]: Sec. 13. (a) Except as provided in
284	284	16 subsection (b), the volunteer fire department that responds first to an
285	285	17 incident may impose a charge on the owner of property, the owner of
286	286	18 a vehicle, or a responsible party (as defined in IC 13-11-2-191(d)) that
287	287	19 is involved in a hazardous material or fuel spill or chemical or
288	288	20 hazardous material related fire (as defined in IC 13-11-2-96(b)):
289	289	21 (1) that is responded to by the volunteer fire department; and
290	290	22 (2) that members of that volunteer fire department assisted in
291	291	23 extinguishing, containing, or cleaning up.
292	292	24 A second or subsequently responding volunteer fire department may
293	293	25 not impose a charge on an owner or responsible party under this
294	294	26 section, although it may be entitled to reimbursement from the first
295	295	27 responding volunteer fire department in accordance with an interlocal
296	296	28 or other agreement.
297	297	29 (b) A volunteer fire department that is funded, in whole or in part:
298	298	30 (1) by taxes imposed by a unit; or
299	299	31 (2) by a contract with a unit;
300	300	32 may not impose a charge under subsection (a) on a natural person who
301	301	33 resides or pays property taxes within the boundaries of the unit
302	302	34 described in subdivision (1) or (2), unless the spill or the chemical or
303	303	35 hazardous material fire poses an imminent threat to persons or
304	304	36 property.
305	305	37 (c) The volunteer fire department shall bill the owner or responsible
306	306	38 party of the vehicle for the total dollar value of the assistance that was
307	307	39 provided, with that value determined by a method that the state fire
308	308	40 marshal shall establish under section 16 of this chapter. A copy of the
309	309	41 fire incident report to the state fire marshal must accompany the bill.
310	310	42 This billing must take place within thirty (30) days after the assistance
311	311	2023 IN 1553—LS 6891/DI 116 8
312	312	1 was provided. The owner or responsible party shall remit payment
313	313	2 directly to the governmental unit providing the service. Any money that
314	314	3 is collected under this section may be:
315	315	4 (1) deposited in the township firefighting and emergency
316	316	5 services fund established in IC 36-8-13-4; IC 36-8-13-4(a)(1) or
317	317	6 the township firefighting fund established in
318	318	7 IC 36-8-13-4(a)(2)(A);
319	319	8 (2) used to pay principal and interest on a loan made by the
320	320	9 department of homeland security established by IC 10-19-2-1 or
321	321	10 a division of the department for the purchase of new or used
322	322	11 firefighting and other emergency equipment or apparatus; or
323	323	12 (3) used for the purchase of equipment, buildings, and property
324	324	13 for firefighting, fire protection, and other emergency services.
325	325	14 (d) Any administrative fees charged by a fire department's agent
326	326	15 must be paid only from fees that are collected and allowed by Indiana
327	327	16 law and the fire marshal's schedule of fees.
328	328	17 (e) An agent who processes fees on behalf of a fire department shall
329	329	18 send all bills, notices, and other related materials to both the fire
330	330	19 department and the person being billed for services.
331	331	20 (f) All fees allowed by Indiana law and the fire marshal's fee
332	332	21 schedule must be itemized separately from any other charges.
333	333	22 (g) The volunteer fire department may maintain a civil action to
334	334	23 recover an unpaid charge that is imposed under subsection (a) and may,
335	335	24 if it prevails, recover all costs of the action, including reasonable
336	336	25 attorney's fees.
337	337	26 SECTION 6. IC 36-8-12-16, AS AMENDED BY P.L.208-2011,
338	338	27 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
339	339	28 JANUARY 1, 2024]: Sec. 16. (a) A volunteer fire department that
340	340	29 provides service within a jurisdiction served by the department may
341	341	30 establish a schedule of charges for the services that the department
342	342	31 provides not to exceed the state fire marshal's recommended schedule
343	343	32 for services. The volunteer fire department or its agent may collect a
344	344	33 service charge according to this schedule from the owner of property
345	345	34 that receives service if the following conditions are met:
346	346	35 (1) At the following times, the department gives notice under
347	347	36 IC 5-3-1-4(d) in each political subdivision served by the
348	348	37 department of the amount of the service charge for each service
349	349	38 that the department provides:
350	350	39 (A) Before the schedule of service charges is initiated.
351	351	40 (B) When there is a change in the amount of a service charge.
352	352	41 (2) The property owner has not sent written notice to the
353	353	42 department to refuse service by the department to the owner's
354	354	2023 IN 1553—LS 6891/DI 116 9
355	355	1 property.
356	356	2 (3) The bill for payment of the service charge:
357	357	3 (A) is submitted to the property owner in writing within thirty
358	358	4 (30) days after the services are provided;
359	359	5 (B) includes a copy of a fire incident report in the form
360	360	6 prescribed by the state fire marshal, if the service was
361	361	7 provided for an event that requires a fire incident report;
362	362	8 (C) must contain verification that the bill has been approved
363	363	9 by the chief of the volunteer fire department; and
364	364	10 (D) must contain language indicating that correspondence
365	365	11 from the property owner and any question from the property
366	366	12 owner regarding the bill should be directed to the department.
367	367	13 (4) Payment is remitted directly to the governmental unit
368	368	14 providing the service.
369	369	15 (b) A volunteer fire department shall use the revenue collected from
370	370	16 the fire service charges under this section:
371	371	17 (1) for the purchase of equipment, buildings, and property for
372	372	18 firefighting, fire protection, or other emergency services;
373	373	19 (2) for deposit in the township firefighting and emergency
374	374	20 services fund established under IC 36-8-13-4; IC 36-8-13-4(a)(1)
375	375	21 or the township firefighting fund established under
376	376	22 IC 36-8-13-4(a)(2)(A); or
377	377	23 (3) to pay principal and interest on a loan made by the department
378	378	24 of homeland security established by IC 10-19-2-1 or a division of
379	379	25 the department for the purchase of new or used firefighting and
380	380	26 other emergency equipment or apparatus.
381	381	27 (c) Any administrative fees charged by a fire department's agent
382	382	28 must be paid only from fees that are collected and allowed by Indiana
383	383	29 law and the fire marshal's schedule of fees.
384	384	30 (d) An agent who processes fees on behalf of a fire department shall
385	385	31 send all bills, notices, and other related materials to both the fire
386	386	32 department and the person being billed for services.
387	387	33 (e) All fees allowed by Indiana law and the fire marshal's fee
388	388	34 schedule must be itemized separately from any other charges.
389	389	35 (f) If at least twenty-five percent (25%) of the money received by a
390	390	36 volunteer fire department for providing fire protection or emergency
391	391	37 services is received under one (1) or more contracts with one (1) or
392	392	38 more political subdivisions (as defined in IC 34-6-2-110), the
393	393	39 legislative body of a contracting political subdivision must approve the
394	394	40 schedule of service charges established under subsection (a) before the
395	395	41 schedule of service charges is initiated in that political subdivision.
396	396	42 (g) A volunteer fire department that:
397	397	2023 IN 1553—LS 6891/DI 116 10
398	398	1 (1) has contracted with a political subdivision to provide fire
399	399	2 protection or emergency services; and
400	400	3 (2) charges for services under this section;
401	401	4 must submit a report to the legislative body of the political subdivision
402	402	5 before April 1 of each year indicating the amount of service charges
403	403	6 collected during the previous calendar year and how those funds have
404	404	7 been expended.
405	405	8 (h) The state fire marshal shall annually prepare and publish a
406	406	9 recommended schedule of service charges for fire protection services.
407	407	10 (i) The volunteer fire department or its agent may maintain a civil
408	408	11 action to recover an unpaid service charge under this section and may,
409	409	12 if it prevails, recover all costs of the action, including reasonable
410	410	13 attorney's fees.
411	411	14 SECTION 7. IC 36-8-12-17, AS AMENDED BY P.L.208-2011,
412	412	15 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
413	413	16 JANUARY 1, 2024]: Sec. 17. (a) If a political subdivision has not
414	414	17 imposed its own false alarm fee or service charge, a volunteer fire
415	415	18 department that provides service within the jurisdiction may establish
416	416	19 a service charge for responding to false alarms. The volunteer fire
417	417	20 department may collect the false alarm service charge from the owner
418	418	21 of the property if the volunteer fire department dispatches firefighting
419	419	22 apparatus or personnel to a building or premises in the township in
420	420	23 response to:
421	421	24 (1) an alarm caused by improper installation or improper
422	422	25 maintenance; or
423	423	26 (2) a drill or test, if the fire department is not previously notified
424	424	27 that the alarm is a drill or test.
425	425	28 However, if the owner of property that constitutes the owner's residence
426	426	29 establishes that the alarm is under a maintenance contract with an
427	427	30 alarm company and that the alarm company has been notified of the
428	428	31 improper installation or maintenance of the alarm, the alarm company
429	429	32 is liable for the payment of the fee or service charge.
430	430	33 (b) Before establishing a false alarm service charge, the volunteer
431	431	34 fire department must provide notice under IC 5-3-1-4(d) in each
432	432	35 political subdivision served by the department of the amount of the
433	433	36 false alarm service charge. The notice required by this subsection must
434	434	37 be given:
435	435	38 (1) before the false alarm service charge is initiated; and
436	436	39 (2) before a change in the amount of the false alarm service
437	437	40 charge.
438	438	41 (c) A volunteer fire department may not collect a false alarm service
439	439	42 charge from a property owner or alarm company unless the
440	440	2023 IN 1553—LS 6891/DI 116 11
441	441	1 department's bill for payment of the service charge:
442	442	2 (1) is submitted to the property owner in writing within thirty (30)
443	443	3 days after the false alarm; and
444	444	4 (2) includes a copy of a fire incident report in the form prescribed
445	445	5 by the state fire marshal.
446	446	6 (d) A volunteer fire department shall use the money collected from
447	447	7 the false alarm service charge imposed under this section:
448	448	8 (1) for the purchase of equipment, buildings, and property for fire
449	449	9 fighting, fire protection, or other emergency services;
450	450	10 (2) for deposit in the township firefighting and emergency
451	451	11 services fund established under IC 36-8-13-4; IC 36-8-13-4(a)(1)
452	452	12 or the township firefighting fund established under
453	453	13 IC 36-8-13-4(a)(2)(A); or
454	454	14 (3) to pay principal and interest on a loan made by the department
455	455	15 of homeland security established by IC 10-19-2-1 or a division of
456	456	16 the department for the purchase of new or used firefighting and
457	457	17 other emergency equipment or apparatus.
458	458	18 (e) If at least twenty-five percent (25%) of the money received by a
459	459	19 volunteer fire department for providing fire protection or emergency
460	460	20 services is received under one (1) or more contracts with one (1) or
461	461	21 more political subdivisions (as defined in IC 34-6-2-110), the
462	462	22 legislative body of a contracting political subdivision must approve the
463	463	23 false alarm service charge established under subsection (a) before the
464	464	24 service charge is initiated in that political subdivision.
465	465	25 (f) A volunteer fire department that:
466	466	26 (1) has contracted with a political subdivision to provide fire
467	467	27 protection or emergency services; and
468	468	28 (2) imposes a false alarm service charge under this section;
469	469	29 must submit a report to the legislative body of the political subdivision
470	470	30 before April 1 of each year indicating the amount of false alarm
471	471	31 charges collected during the previous calendar year and how those
472	472	32 funds have been expended.
473	473	33 (g) The volunteer fire department may maintain a civil action to
474	474	34 recover unpaid false alarm service charges imposed under this section
475	475	35 and may, if it prevails, recover all costs of the action, including
476	476	36 reasonable attorney's fees.
477	477	37 SECTION 8. IC 36-8-13-4, AS AMENDED BY P.L.255-2017,
478	478	38 SECTION 38, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
479	479	39 JANUARY 1, 2024]: Sec. 4. (a) Each township shall annually establish
480	480	40 either:
481	481	41 (1) a township firefighting and emergency services fund which
482	482	42 is to be used by the township for the payment of costs attributable
483	483	2023 IN 1553—LS 6891/DI 116 12
484	484	1 to providing fire protection or emergency services under the
485	485	2 methods prescribed in section 3 of this chapter and for no other
486	486	3 purposes; or
487	487	4 (2) two (2) separate funds consisting of:
488	488	5 (A) a township firefighting fund that is to be used by the
489	489	6 township for the payment of costs attributable to providing
490	490	7 fire protection under the methods prescribed in section 3
491	491	8 of this chapter and for no other purposes; and
492	492	9 (B) a township emergency services fund that is to be used
493	493	10 by the township for the payment of costs attributable to
494	494	11 providing emergency services under the methods
495	495	12 prescribed in section 3 of this chapter and for no other
496	496	13 purposes.
497	497	14 The money in the fund funds described in either subdivision (1) or
498	498	15 (2) may be paid out by the township executive with the consent of the
499	499	16 township legislative body.
500	500	17 (b) Each township may levy, for each year, a tax for either:
501	501	18 (1) the township firefighting and emergency services fund
502	502	19 described in subsection (a)(1); or
503	503	20 (2) both:
504	504	21 (A) the township firefighting fund; and
505	505	22 (B) the township emergency services fund
506	506	23 described in subsection (a)(2).
507	507	24 Other than a township providing fire protection or emergency services
508	508	25 or both to municipalities in the township under section 3(b) or 3(c) of
509	509	26 this chapter, the tax levy is on all taxable real and personal property in
510	510	27 the township outside the corporate boundaries of municipalities.
511	511	28 Subject to the levy limitations contained in IC 6-1.1-18.5, the township
512	512	29 firefighting and emergency services levy is to be in an amount
513	513	30 sufficient to pay costs attributable to fire protection and emergency
514	514	31 services that are not paid from other revenues available to the fund. If
515	515	32 a township establishes a township firefighting fund and a township
516	516	33 emergency services fund described in subdivision (2), the combined
517	517	34 levies are to be an amount sufficient to pay costs attributable to fire
518	518	35 protection and emergency services. However, fire protection
519	519	36 services may be paid only from the township firefighting fund and
520	520	37 emergency services may be paid only from the township emergency
521	521	38 services fund, and each fund may pay costs attributable to the
522	522	39 respective fund for services that are not paid from other revenues
523	523	40 available to either applicable fund. The tax rate and levy for a levy
524	524	41 described in this subsection shall be established in accordance with
525	525	42 the procedures set forth in IC 6-1.1-17.
526	526	2023 IN 1553—LS 6891/DI 116 13
527	527	1 (c) In addition to the tax levy and service charges received under
528	528	2 IC 36-8-12-13 and IC 36-8-12-16, the executive may accept donations
529	529	3 to the township for the purpose of firefighting and other emergency
530	530	4 services and shall place them in the fund, township firefighting and
531	531	5 emergency services fund established under subsection (a)(1), or if
532	532	6 applicable, the township firefighting fund established under
533	533	7 subsection (a)(2)(A) if the purpose of the donation is for
534	534	8 firefighting, or in the township emergency services fund established
535	535	9 under subsection (a)(2)(B) if the purpose of the donation is for
536	536	10 emergency services, keeping an accurate record of the sums received.
537	537	11 A person may also donate partial payment of any purchase of
538	538	12 firefighting or other emergency services equipment made by the
539	539	13 township.
540	540	14 (d) If a fire department serving a township dispatches fire apparatus
541	541	15 or personnel to a building or premises in the township in response to:
542	542	16 (1) an alarm caused by improper installation or improper
543	543	17 maintenance; or
544	544	18 (2) a drill or test, if the fire department is not previously notified
545	545	19 that the alarm is a drill or test;
546	546	20 the township may impose a fee or service charge upon the owner of the
547	547	21 property. However, if the owner of property that constitutes the owner's
548	548	22 residence establishes that the alarm is under a maintenance contract
549	549	23 with an alarm company and that the alarm company has been notified
550	550	24 of the improper installation or maintenance of the alarm, the alarm
551	551	25 company is liable for the payment of the fee or service charge.
552	552	26 (e) The amount of a fee or service charge imposed under subsection
553	553	27 (d) shall be determined by the township legislative body. All money
554	554	28 received by the township from the fee or service charge must be
555	555	29 deposited in the township's firefighting and emergency services fund
556	556	30 or the township's firefighting fund.
557	557	31 SECTION 9. IC 36-8-13-4.5, AS AMENDED BY P.L.255-2017,
558	558	32 SECTION 39, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
559	559	33 JANUARY 1, 2024]: Sec. 4.5. (a) This section applies to a township
560	560	34 that provides fire protection or emergency services or both to a
561	561	35 municipality in the township under section 3(b) or 3(c) of this chapter.
562	562	36 (b) Except as provided in subsection (c), with the consent of the
563	563	37 township legislative body, the township executive may pay the
564	564	38 expenses for fire protection and emergency services in the township,
565	565	39 both inside and outside the corporate boundaries of participating
566	566	40 municipalities, from any combination of the following township funds,
567	567	41 regardless of when the funds were established:
568	568	42 (1) The township firefighting and emergency services fund
569	569	2023 IN 1553—LS 6891/DI 116 14
570	570	1 under section 4 section (4)(a)(1) of this chapter.
571	571	2 (2) The cumulative building and equipment fund under
572	572	3 IC 36-8-14.
573	573	4 (3) The debt fund under sections 6 and 6.5 of this chapter.
574	574	5 (4) The rainy day fund established under IC 36-1-8-5.1.
575	575	6 (c) If a township establishes a township firefighting fund and a
576	576	7 township emergency services fund described in section 4(a)(2) of
577	577	8 this chapter, and with the consent of the township legislative body,
578	578	9 the township executive may pay the expenses for fire protection
579	579	10 from the township firefighting fund and emergency services from
580	580	11 the township emergency services fund, both inside and outside the
581	581	12 corporate boundaries of participating municipalities.
582	582	13 (c) (d) Subject to the levy limitations contained in IC 6-1.1-18.5, the
583	583	14 tax rate and levy for the township firefighting and emergency services
584	584	15 fund or the combined levies for the township firefighting fund and
585	585	16 the township emergency services fund (as applicable), the
586	586	17 cumulative building and equipment fund, or the debt fund is to be in an
587	587	18 amount sufficient to pay all costs attributable to fire protection or
588	588	19 emergency services that are provided to the township and the
589	589	20 participating municipalities that are not paid from other available
590	590	21 revenues. The tax rate and levy for each fund shall be established in
591	591	22 accordance with the procedures set forth in IC 6-1.1-17 and apply both
592	592	23 inside and outside the corporate boundaries of participating
593	593	24 municipalities.
594	594	25 (d) (e) The township executive may accept donations for the
595	595	26 purpose of firefighting and emergency services. The township
596	596	27 executive shall place donations in the township firefighting and
597	597	28 emergency services fund established under section 4(a)(1) of this
598	598	29 chapter, or if applicable, the township firefighting fund established
599	599	30 under section 4(a)(2)(A) of this chapter if the purpose of the
600	600	31 donation is for firefighting, or the township emergency services
601	601	32 fund established under section 4(a)(2)(B) of this chapter if the
602	602	33 purpose of the donation is for emergency services. A person may
603	603	34 donate partial payment of a purchase of firefighting or emergency
604	604	35 services equipment made by the township.
605	605	36 SECTION 10. IC 36-8-13-4.6 IS AMENDED TO READ AS
606	606	37 FOLLOWS [EFFECTIVE JANUARY 1, 2024]: Sec. 4.6. (a) For
607	607	38 townships and municipalities that elect to have the township provide
608	608	39 fire protection and emergency services under section 3(b) of this
609	609	40 chapter, the department of local government finance shall adjust each
610	610	41 township's and each municipality's maximum permissible levy in the
611	611	42 year following the year in which the change is elected, as determined
612	612	2023 IN 1553—LS 6891/DI 116 15
613	613	1 under IC 6-1.1-18.5-3, to reflect the change from providing fire
614	614	2 protection or emergency services under a contract between the
615	615	3 municipality and the township to allowing the township to impose a
616	616	4 property tax levy on the taxable property located within the corporate
617	617	5 boundaries of each municipality. Each municipality's maximum
618	618	6 permissible property tax levy shall be reduced by the amount of the
619	619	7 municipality's property tax levy that was imposed by the municipality
620	620	8 to meet the obligations to the township under the fire protection or
621	621	9 emergency services contract. The township's maximum permissible
622	622	10 property tax levy shall be increased by the product of:
623	623	11 (1) one and five-hundredths (1.05); multiplied by
624	624	12 (2) the amount the township received:
625	625	13 (A) in the year in which the change is elected; and
626	626	14 (B) as fire protection or emergency services contract
627	627	15 payments from all municipalities whose levy is decreased
628	628	16 under this section.
629	629	17 (b) For purposes of determining a township's or municipality's
630	630	18 maximum permissible ad valorem property tax levy under
631	631	19 IC 6-1.1-18.5-3 for years following the first year after the year in which
632	632	20 the change is elected, a township's or municipality's maximum
633	633	21 permissible ad valorem property tax levy is the levy after the
634	634	22 adjustment made under subsection (a).
635	635	23 SECTION 11. IC 36-8-13-4.7, AS AMENDED BY P.L.257-2019,
636	636	24 SECTION 156, IS AMENDED TO READ AS FOLLOWS
637	637	25 [EFFECTIVE JANUARY 1, 2024]: Sec. 4.7. (a) For a township that
638	638	26 elects to have the township provide fire protection and emergency
639	639	27 services under section 3(c) of this chapter, the department of local
640	640	28 government finance shall adjust the township's maximum permissible
641	641	29 levy described in section 4(b)(1) or 4(b)(2) of this chapter, as
642	642	30 applicable, in the year following the year in which the change is
643	643	31 elected, as determined under IC 6-1.1-18.5-3, to reflect the change
644	644	32 from providing fire protection or emergency services under a contract
645	645	33 between the municipality and the township to allowing the township to
646	646	34 impose a property tax levy on the taxable property located within the
647	647	35 corporate boundaries of each municipality. For the ensuing calendar
648	648	36 year, the township's maximum permissible property tax levy described
649	649	37 in section 4(b)(1) of this chapter, or the combined levies described
650	650	38 in section 4(b)(2) of this chapter, which is considered a single levy
651	651	39 for purposes of this section, shall be increased by the product of:
652	652	40 (1) one and five-hundredths (1.05); multiplied by
653	653	41 (2) the amount the township contracted or billed to receive,
654	654	42 regardless of whether the amount was collected:
655	655	2023 IN 1553—LS 6891/DI 116 16
656	656	1 (A) in the year in which the change is elected; and
657	657	2 (B) as fire protection or emergency service payments from the
658	658	3 municipalities or residents of the municipalities covered by the
659	659	4 election under section 3(c) of this chapter.
660	660	5 The maximum permissible levy for a general fund or other fund of a
661	661	6 municipality covered by the election under section 3(c) of this chapter
662	662	7 shall be reduced for the ensuing calendar year to reflect the change to
663	663	8 allowing the township to impose a property tax levy on the taxable
664	664	9 property located within the corporate boundaries of the municipality.
665	665	10 The total reduction in the maximum permissible levies for all electing
666	666	11 municipalities must equal the amount that the maximum permissible
667	667	12 levy for the township described in section 4(b)(1) of this chapter or
668	668	13 the combined levies described in section 4(b)(2) of this chapter, as
669	669	14 applicable, is increased under this subsection for contracts or billings,
670	670	15 regardless of whether the amount was collected, less the amount
671	671	16 actually paid from sources other than property tax revenue.
672	672	17 (b) For purposes of determining a township's and each
673	673	18 municipality's maximum permissible ad valorem property tax levy
674	674	19 under IC 6-1.1-18.5-3 for years following the first year after the year in
675	675	20 which the change is elected, a township's and each municipality's
676	676	21 maximum permissible ad valorem property tax levy is the levy (or in
677	677	22 the case of a township electing to establish levies described in
678	678	23 section 4(b)(2) of this chapter, the combined levies) after the
679	679	24 adjustment made under subsection (a).
680	680	25 (c) The township may use the amount of a maximum permissible
681	681	26 property tax levy (or in the case of a township electing to establish
682	682	27 levies described in section 4(b)(2) of this chapter, the combined
683	683	28 levies) computed under this section in setting budgets and property tax
684	684	29 levies for any year in which the election in section 3(c) of this chapter
685	685	30 is in effect.
686	686	31 (d) Section 4.6 of this chapter does not apply to a property tax levy
687	687	32 or a maximum property tax levy subject to this section.
688	688	33 SECTION 12. IC 36-8-13-9 IS AMENDED TO READ AS
689	689	34 FOLLOWS [EFFECTIVE JANUARY 1, 2024]: Sec. 9. (a) A township
690	690	35 shall pay for the care of a full-time, paid firefighter who suffers:
691	691	36 (1) an injury; or
692	692	37 (2) contracts an illness;
693	693	38 during the performance of the firefighter's duty.
694	694	39 (b) The township shall pay for the following expenses incurred by
695	695	40 a firefighter described in subsection (a):
696	696	41 (1) Medical and surgical care.
697	697	42 (2) Medicines and laboratory, curative, and palliative agents and
698	698	2023 IN 1553—LS 6891/DI 116 17
699	699	1 means.
700	700	2 (3) X-ray, diagnostic, and therapeutic service, including during
701	701	3 the recovery period.
702	702	4 (4) Hospital and special nursing care if the physician or surgeon
703	703	5 in charge considers it necessary for proper recovery.
704	704	6 (c) Expenditures required by subsection (a) shall be paid from the
705	705	7 township firefighting and emergency services fund established by
706	706	8 section 4 section 4(a)(1) of this chapter or the township firefighting
707	707	9 fund established in section 4(a)(2)(A) of this chapter, as applicable.
708	708	10 (d) A township that has paid for the care of a firefighter under
709	709	11 subsection (a) has a cause of action for reimbursement of the amount
710	710	12 paid under subsection (a) against any third party against whom the
711	711	13 firefighter has a cause of action for an injury sustained because of, or
712	712	14 an illness caused by, the third party. The township's cause of action
713	713	15 under this subsection is in addition to, and not in lieu of, the cause of
714	714	16 action of the firefighter against the third party.
715	715	2023 IN 1553—LS 6891/DI 116