Money distributed from the fire protection fund to a municipality or to a county fire district:
A. may be expended only for the:
(1) maintenance of its fire department;
(2) purchase or refinance of land for its fire stations and substations;
(3) purchase, refinance, construction, maintenance, repair and operation of its fire stations and substations;
(4) purchase or refinance of fire apparatus and equipment;
(5) payment of insurance premiums on fire stations, substations, fire apparatus and equipment and insurance premiums for injuries or deaths of firefighters as otherwise provided by law;
(6) payment of fire department emergency medical services, except salaries; and
(7) payment of firefighters' attendance at fire schools and conventions approved by the marshal;
B. shall not, without approval by the marshal, be expended for any purpose related to:
(1) its water supply systems or the improvement or construction of those systems;
(2) the purchase, rental, installation or maintenance of fire hydrants; or
(3) any other appurtenance related to the distribution or use of water from its water supply system; and
C. shall not be expended for any public, private or other water system used for potable water supply.