76R10041 BDH-D                           
         By Cook, Salinas, Turner of Coleman, Counts           H.B. No. 2107
            McReynolds, et al. 
         Substitute the following for H.B. No. 2107:
         By Jones of Brazos                                C.S.H.B. No. 2107
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to assistance to certain volunteer fire departments and to
 1-3     the imposition of a tax to finance that assistance.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Chapter 614, Government Code, is amended by
 1-6     adding Subchapter F to read as follows:
 1-7      SUBCHAPTER F.  RURAL VOLUNTEER FIRE DEPARTMENT ASSISTANCE PROGRAM
 1-8           Sec. 614.071.  DEFINITIONS.  In this subchapter:
 1-9                 (1)  "Director" means the director of the Texas Forest
1-10     Service of The Texas A&M University System.
1-11                 (2)  "Fund" means the rural volunteer fire department
1-12     assistance fund.
1-13                 (3)  "Program" means the Rural Volunteer Fire
1-14     Department Assistance Program.
1-15                 (4)  "Service" means the Texas Forest Service of The
1-16     Texas A&M University System.
1-17                 (5)  "Volunteer fire department" means a fire
1-18     department operated by its members that is operated on a
1-19     not-for-profit basis, including a department that is exempt from
1-20     federal income tax under Section 501(a), Internal Revenue Code of
1-21     1986, by being listed as an exempt organization in  Section
1-22     501(c)(3) of that code.
1-23           Sec. 614.072.  ADMINISTRATION OF PROGRAM.  (a)  The Texas
1-24     Forest Service shall administer the volunteer fire department
 2-1     assistance program established under this subchapter, and the
 2-2     director may adopt rules necessary to assist rural volunteer fire
 2-3     departments in paying for equipment and training of personnel.
 2-4           (b)  The service may employ staff to administer the program.
 2-5           (c)  The director shall, in consultation with the advisory
 2-6     committee:
 2-7                 (1)  determine reasonable criteria and qualifications
 2-8     for the distribution of money from the rural volunteer fire
 2-9     department assistance fund; and
2-10                 (2)  establish a procedure for reporting and processing
2-11     requests for money from the fund.
2-12           (d)  The director shall prepare an annual written report on
2-13     the activity, status, and effectiveness of the fund and shall
2-14     submit the report to the lieutenant governor, the speaker of the
2-15     house of representatives, and the comptroller before September 1 of
2-16     each year.
2-17           (e)  Any assistance or benefits provided under this
2-18     subchapter to a volunteer fire department or a firefighter who is a
2-19     member of a volunteer fire department may not be considered
2-20     compensation, and a firefighter receiving assistance under this
2-21     subchapter may not be considered to be in the paid service of any
2-22     governing body.
2-23           (f)  Administration costs associated with the program during
2-24     a state fiscal year may not exceed seven percent of the total
2-25     revenue collected from the tax imposed under Chapter 161, Tax Code,
2-26     during the previous fiscal year.
2-27           Sec. 614.073.  ADVISORY COMMITTEE.  (a)  The director shall
 3-1     appoint an advisory committee to advise the director in regard to
 3-2     the administration of the program.
 3-3           (b)  The advisory committee consists of five members, two of
 3-4     whom must be members of the Texas Rural Fire Advisory Council, two
 3-5     of whom must be elected county officials, and one of whom must be
 3-6     an elected representative of a municipality with a population of
 3-7     10,000 or less.  The director must appoint the members as follows:
 3-8                 (1)  one member from the north region of the state;
 3-9                 (2)  one member from the south region of the state;
3-10                 (3)  one member from the east region of the state;
3-11                 (4)  one member from the west region of the state; and
3-12                 (5)  one member from the central region of the state.
3-13           Sec. 614.074.  REQUESTS FOR ASSISTANCE.  (a)  A request for
3-14     assistance from the fund shall be submitted to the director.
3-15           (b)  On receiving a request for assistance, the director
3-16     shall determine whether to provide assistance and the amount of the
3-17     assistance to be provided, if any, based on the criteria developed
3-18     in consultation with the  advisory committee under Section 614.072.
3-19     A written copy of the decision shall be sent to the requestor and
3-20     each member of the advisory committee.
3-21           Sec. 614.075.  FUND.  (a)  The rural volunteer fire
3-22     department assistance fund is an account in the general revenue
3-23     fund and is composed of money collected under Chapter 161, Tax
3-24     Code, and contributions to the fund from any other source.
3-25           (b)  Money in the fund may be used only for a purpose under
3-26     this subchapter.
3-27           SECTION 2.  Subtitle E, Title 2, Tax Code, is amended by
 4-1     adding Chapter 161 to read as follows:
 4-2                         CHAPTER 161. FIREWORKS TAX
 4-3           Sec. 161.001.  DEFINITION.  In this chapter, "fireworks"
 4-4     means any composition or device that is designed to produce a
 4-5     visible or audible effect by combustion, explosion, deflagration,
 4-6     or detonation that is classified as Division 1.4G explosives by the
 4-7     United States Department of Transportation in 49 C.F.R. Part 173 as
 4-8     of September 1, 1999.
 4-9           Sec. 161.002.  FIREWORKS SALES TAX.  (a)  A tax is imposed on
4-10     each sale at retail of fireworks.
4-11           (b)  The tax rate is two percent of the sale price of the
4-12     fireworks.
4-13           (c)  The tax imposed under this chapter is in addition to the
4-14     tax imposed under Chapter 151.  The tax imposed by this  chapter
4-15     does not apply to a sale unless the tax imposed under Chapter 151
4-16     applies to the sale.
4-17           Sec. 161.003.  APPLICATION OF OTHER PROVISIONS OF CODE.  (a)
4-18     Except as provided differently by this chapter:
4-19                 (1)  the tax imposed by this chapter is  administered,
4-20     imposed, collected, and enforced in the same manner as the tax
4-21     under Chapter 151 is administered, imposed, collected, and
4-22     enforced; and
4-23                 (2)  the provisions of Chapter 151 that are applicable
4-24     to the sales tax imposed under Subchapter C, Chapter 151, apply to
4-25     the tax imposed by this  chapter.
4-26           (b)  A change in the law relating to the taxation of the sale
4-27     of fireworks under Chapter 151 also applies to the tax imposed by
 5-1     this chapter.
 5-2           Sec. 161.004.  ALLOCATION OF TAX.  The comptroller shall
 5-3     allocate the revenue from taxes imposed by this chapter, other than
 5-4     penalties and interest, to the rural volunteer fire department
 5-5     assistance fund established by Section 614.075, Government Code.
 5-6           SECTION 3.  (a)  If this Act receives the votes required by
 5-7     Section 39, Article III, Texas Constitution, for an effective date
 5-8     before the 91st day after the last day of the legislative session,
 5-9     this Act takes effect July 1, 1999.
5-10           (b)  If this Act does not receive the votes required by
5-11     Section 39, Article III, Texas Constitution, for an effective date
5-12     before the 91st day after the last day of the legislative session,
5-13     this Act takes effect October 1, 1999.
5-14           (c)  The director of the Texas Forest Service may not grant a
5-15     request for assistance under Subchapter F, Chapter 614, Government
5-16     Code, as added by this Act, before September 1, 2000.
5-17           SECTION 4.  The importance of this legislation and the
5-18     crowded condition of the calendars in both houses create an
5-19     emergency and an imperative public necessity that the
5-20     constitutional rule requiring bills to be read on three several
5-21     days in each house be suspended, and this rule is hereby suspended,
5-22     and that this Act take effect and be in force according to its
5-23     terms, and it is so enacted.