Who controlled Louisiana fire-insurance rebate funds after a parish paid a volunteer department?

Plain-English summary

In 2005, the Louisiana Attorney General concluded that Tangipahoa Parish's treasurer had to transfer Natalbany Volunteer Fire Department's proportionate share of fire-insurance rebate funds to the department's fiscal agent within 30 days after receiving the money. Once the department received its share, its governing body, rather than the parish council or fire protection district, had authority to direct expenditures.

That control had a statutory limit. The funds had to be used to render the fire department “more efficient and efficacious.” The opinion applied the quoted R.S. 22:1585D to the department's described status and contract-based fire protection service.

Currency note

This opinion was issued in 2005. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Common questions

When did the parish treasurer have to pass on the department's rebate share? A: The opinion quoted a 30-day deadline measured from the treasurer's receipt of the funds and applied it to Natalbany's proportionate share.

Could the parish council direct Natalbany's spending after payment? A: The AG said the department's own governing body had sole authority to direct or control expenditure once it received the funds, within the statute's use restriction.

Could the volunteer department use the money for any purpose? A: No. The quoted statute limited the use to rendering the fire department more efficient and effective.

Background and statutory framework

Natalbany Volunteer Fire Department's chief and president asked about the timing and control of the tax-rebate distribution. The AG quoted R.S. 22:1585D(1), which directed a parish treasurer to pay the fiscal representative of an eligible fire department “within thirty days from the time it is received.” It also quoted subsection (2), which left spending direction to the department's governing body for the specified fire-service purpose. The opinion concluded that Natalbany's board, not another governmental entity, controlled the funds after transfer.

Citations

• R.S. 22:1585D (distribution deadline and spending control quoted in the opinion).
• Attorney General Opinion No. 87-511 (earlier opinion identified as in accord).

Source

• Landing page: https://www.ag.state.la.us/Opinions
• Original PDF: https://www.ag.state.la.us/Opinion/Download/05-0030

Original opinion text

April 20, 2005
OPINION NUMBER 05-0030

54 – INSURANCE
R.S. 22:1585 D
Mr. Frank B. Gerarve, Chief
Parish treasurer is required to distribute funds from fire
Mr. Donald L. Starkey, Jr., President insurance rebate to the fire department of the municipality or district or active volunteer fire department within thirty days of Natalbany Volunteer Fire Department receipt of those funds. Once the funds are received by the fire
P.O. Box 337
department, the governing body of the department has the sole
Natalbany, Louisiana 70451
responsibility and power to direct or control the expenditure of
the funds, provided the funds are used to render the department more efficient and efficacious.
Dear Gentlemen:

You have requested an Attorney General’s opinion regarding the tax rebates collected and distributed pursuant to R.S. 22:1580 et seq. You indicated that Natalbany Volunteer Fire Department, Inc. (“NVFD”) is a voluntary organized fire company which possesses, in serviceable condition for fire duty, apparatus and equipment having a total value of five thousand or more dollars. NVFD was organized in 1955 and has continuously provided fire protection within its service area pursuant to contracts between NVFD and the Tangipahoa Parish Rural Fire Protection District No. 2.

Your questions regarding the tax rebate funds are:

1. Does the statute require that the treasurer of Tangipahoa Parish pay to
   NVFD’s fiscal agent NVFD’s proportionate share of the funds within thirty
   days of receipt of the funds?

2. Does the Tangipahoa Parish Council, the Tangipahoa Parish Rural Fire
   Protection District No. 2, or any other governmental entity, have any statutory
   authority to direct or to control NVFD’s expenditure of the funds?

R.S. 22:1585D addresses the issues raised in your questions, and provides as follows:

D. (1) All money received under the provisions of this Subpart by the treasurer of the governing authority of the parish shall, within thirty days from the time it is received, be paid over by the treasurer to the fiscal representative of the regularly constituted fire department of the municipality or district or active volunteer fire department, as the case may be. If any of said funds are not so distributed either by mutual consent or without consent of the regularly paid fire department of the municipality or

Page 2

OPINION NUMBER 05-0030
Mr. Frank B. Gerarve, Chief
Mr. Donald L. Starkey, Jr., President
Page – 2 –

district or active volunteer fire department certified by the parish governing authority, such funds shall be invested in an interest-bearing account and any accrued interest on the investment of funds shall be credited and distributed per capita to the regularly paid fire department of the municipality or district or active volunteer fire department, as provided by R.S. 22:1585.

(2) Such money shall be used only for the purpose of rendering more efficient and efficacious the regularly paid fire department of the municipality or district or active volunteer fire department, as the case may be, in such manner as the governing body shall direct.

R.S. 22:1585D(1) requires that the treasurer of Tangipahoa Parish turn over NVFD’s proportionate share of the funds to NVFD’s fiscal agent within thirty days from the time the funds are received. Once the funds are received by NVFD, the governing body of the NVFD has the sole responsibility and power to direct or control the expenditure of the funds, provided the funds are used to render the department more efficient and efficacious. In accord is Attorney General Opinion No. 87-511.

Trusting this adequately responds to your request, we remain

Yours very truly,

CHARLES C. FOTI, JR.
Attorney General

BY: _________
KENNETH L. ROCHE, III
Assistant Attorney General

CCF, JR/KLR, III/mjb

Page 3

OPINION NUMBER 05-0030

54 – INSURANCE
R.S. 22:1585 D

Parish treasurer is required to distribute funds from fire insurance rebate to the fire department of the municipality or district or active volunteer fire department within thirty days of receipt of those funds. Once the funds are received by the fire department, the governing body of the department has the sole responsibility and power to direct or control the expenditure of the funds, provided the funds are used to render the department more efficient and efficacious.

Mr. Frank B. Gerarve, Chief
Mr. Donald L. Starkey, Jr., President
Natalbany Volunteer Fire Department
P.O. Box 337
Natalbany, Louisiana 70451

Date Received:

Date Released: April 20, 2005

KENNETH L. ROCHE, III
ASSISTANT ATTORNEY GENERAL