(a)
(1) The funds shall be used:
(A) To defray training expenses of firefighters at the Arkansas Fire Training Academy and fire training centers certified by the Arkansas Fire Protection Services Board;
(B) For the purchase and improvement of, or for pledging as security for a period of not more than ten (10) years in the financing of the purchase and improvement of, firefighting equipment and initial capital construction or improvements of fire departments;
(C) For insurance for buildings; or
(D) For utility costs.
(2) Municipalities, fire departments, and districts must expend or allocate for expenditure all funds received under this subchapter on or before the expiration of twelve (12) months from the date of receipt.
(3) Any excess or surplus funds that are not expended or allocated for expenditure within each twelve-month period shall be remitted to the fund no later than sixty (60) days following the expiration of each twelve-month period.
(b) Equipment funded under this section shall be used by the municipalities and departments located in fire protection districts that have been duly formed or established under the provisions of § 14-284-201 et seq.