INTERGOVERNMENTAL COOPERATION AGREEMENTS INDIANA Survey of State Law Background In the face of declining resources and increasing demand for services, many local health departments (LHDs) are exploring innovative ways to improve efficiency, meet accreditations standards, and reduce costs by sharing service delivery and other functions with other LHDs, agencies, and entities. One method for such cross-jurisdictional collaboration is the utilization of state interlocal agreement acts. These acts permit localities to enter into agreements with other entities to provide health and other services, and govern the terms of those agreements. Many permit the creation of new entities to accomplish public health goals. The goal of these acts is, as stated for example by Florida s Interlocal Cooperation Act, to permit local governmental units to make the most efficient use of their powers by enabling them to cooperate with other localities on a basis of mutual advantage and thereby to provide services and facilities in a manner and pursuant to forms of governmental organization that will accord the best geographic, economic, population, and other factors influencing the needs and development of local communities. Fla. Stat. 163.01. In 2012, with the extremely helpful assistance of pro bono attorneys from the firm of McDermott Will & Emery LLP and the Iowa Health System, the Network conducted a survey of intergovernmental cooperation laws currently in effect in all 50 states. The results of that survey are provided below. Please be advised that this table should be used only as a guide. While we do not know it to contain any errors, we do know that it is incomplete. We also caution that in many cases other laws and regulations may be used to share services and personnel between organizations and such actions may be permissible even without explicit enabling legislation. We strongly suggest that interested persons and entities contact us for assistance in this complicated area of law.
Indiana Intergovernmental Cooperation Agreements Summary As of September 2013 Name/Title ; If : Can new entity be created? ; If : Is new entity limited in duration? Can new entity issue bonds? Does new entity have taxing authority? required? If, Multiple County Health Departments Burns Ind. Code Ann. 16-20-3 et al. The county executives of at least two (2) adjacent counties may establish and maintain a multiple county health department if approvals are received., a new entity may be created. The law is silent on the entity s duration and ability to issue bonds., the new entity has taxing authority. The fiscal body of each county that has become a part of a multiple county health department by ordinance of the county executive shall assess a levy annually on the assessed valuation of taxable property for maintenance of the multiple county health department. The taxes shall be paid into the county treasury and placed in a special fund to be known as the county health fund. The fund may be used only for the purpose of this title and may be drawn upon by the proper officers of the county upon the properly authenticated vouchers of the multiple county health department. Each county fiscal body shall appropriate from the county health fund money necessary to pay the fiscal body's apportioned share to maintain a multiple county health department in the proportion that the population of the county bears to the total population of all counties in the multiple county health department., the state department and county executives (by ordinance) must approve the creation of a multiple county health department. The law is silent regarding powers of the new entity. Page 2
Name/Title ; If : Can new entity be created? ; If : Is new entity limited in duration? Can new entity issue bonds? Does new entity have taxing authority? required? If, Powers and Duties of Local Health Departments- Contracts Burns Ind. Code Ann. 16-20-1-8 (2012) The board of each local health department may enter into contracts with the state department, other local boards of health, other units of government, a private individual, or a corporation for the provision of health services within the board's jurisdiction. The law is silent with respect to creation of a new entity. The private contracts are subject to approval of the county executive or city executive. Interlocal Cooperation Burns Ind. Code Ann. 36-1-7 No A power that may be exercised by an Indiana political subdivision and by one or more other governmental entities may be exercised.. jointly by the entities. Entities that want to do this must, by ordinance or resolution, enter into a written agreement. 36-1-7-2. An agreement under this section must provide for the following: (1) Its duration. (2) Its purpose. (3) The manner of financing, staffing, and supplying the joint undertaking and of establishing and maintaining a budget therefor. (4) The methods that may be employed in accomplishing the partial or complete termination of the agreement and for disposing of property upon partial or complete termination. (5) Administration through: (A) a separate legal entity, the nature, organization, composition, and powers of which must be provided; or (B) a joint board composed of, new entity can be created. 36-1-7-3. The new entity is not time limited, but its duration must be specified. Id. There is no statutory authority for the new entity to issue bonds or levy taxes. Although the new entity has only those powers delegated to it by agreement, it appears that a new entity can exercise any of the powers of the political subdivisions that created it. 36-1-7-2,3. Agreements must be approved by Attorney General unless it: (1) involves as parties: (A) only Indiana political subdivisions; or (B) an Indiana political subdivision and: (i) a public instrumentality; or (ii) a public corporate body; created by state law; (2) is approved by the fiscal body of each party that is an Indiana political subdivision either before or after the agreement is entered into by the executive of the party; and (3) delegates to the treasurer or disbursing officer of one (1) of the Page 3
Name/Title ; If : Can new entity be created? ; If : Is new entity limited in duration? Can new entity issue bonds? Does new entity have taxing authority? required? If, representatives of the entities that are parties to the agreement, and on which all parties to the agreement must be represented. (6) The manner of acquiring, holding, and disposing of real and personal property used in the joint undertaking, whenever a joint board is created under subdivision (5)(B). In addition, such an agreement may provide for any other appropriate matters. A separate legal entity or joint board established by an agreement under this section has only the powers delegated to it by the agreement. The agreement may not provide for members, directors, or trustees of the separate legal entity or joint board to make appointments (either individually or jointly) to fill vacancies on the separate legal entity or joint board. 36-1-7-3. parties that is an Indiana political subdivision the duty to receive, disburse, and account for all monies of the joint undertaking. 36-1-7-4. If the agreement concerns the provision of services or facilities that a state officer or agency has power to control, the agreement must be submitted to that officer or agency for approval before it takes effect. 36-1-7-5. Page 4
SUPPORTERS The Network for Public Health Law is a national initiative of the Robert Wood Johnson Foundation with direction and technical assistance by the Public Health Law Center at William Mitchell College of Law. This document was developed by Corey Davis, Staff Attorney with the Network for Public Health Law Southeastern Region (cdavis@networkforphl.org) and Milissa Markiewicz, Project Manager with the with the Network for Public Health Law Southeastern Region in conjunction with pro bono attorneys from McDermott Will & Emery LLP and the Iowa Health System. The Network for Public Health Law provides information and technical assistance on issues related health. The legal information and assistance provided in this document does not constitute legal advice or legal representation. For legal advice, please consult specific legal counsel. Page 5