By Salinas                                            H.B. No. 2403
         76R6136 KEL-D                           
                                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 fee to finance that assistance.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter B, Chapter 88, Education Code, is
 1-6     amended by adding Sections 88.1061 and 88.1062 to read as follows:
 1-7           Sec. 88.1061.  RURAL VOLUNTEER FIRE DEPARTMENT ASSISTANCE
 1-8     PROGRAM.  (a)  In this section:
 1-9                 (1)  "Account" means the statewide fire contingency
1-10     account established by Section 88.117.
1-11                 (2)  "Program" means the rural volunteer fire
1-12     department assistance program.
1-13                 (3)  "Service" means the Texas Forest Service.
1-14                 (4)  "Volunteer fire department" means a fire
1-15     department operated by its members on a not-for-profit basis and
1-16     whose members receive no compensation or only nominal compensation
1-17     for services, including a department that is exempt from federal
1-18     income tax under Section 501(a), Internal Revenue Code of 1986, by
1-19     being listed as an exempt organization in Section 501(c)(3) of that
1-20     code.
1-21           (b)  The service shall administer the rural volunteer fire
1-22     department assistance program established under this section to
1-23     assist rural volunteer fire departments in paying for equipment and
1-24     training of personnel and may adopt rules as necessary to
 2-1     administer the program.
 2-2           (c)  The service may employ staff to administer the program.
 2-3           (d)  The director shall, in consultation with the advisory
 2-4     committee established under Subsection (g):
 2-5                 (1)  determine reasonable criteria and qualifications
 2-6     for the distribution of grants from the account; and
 2-7                 (2)  establish a procedure for reporting and processing
 2-8     requests for assistance from the account.
 2-9           (e)  The director shall prepare an annual written report on
2-10     the activity, status, and effectiveness of the program and shall
2-11     submit the report to the lieutenant governor, the speaker of the
2-12     house of representatives, and the comptroller not later than
2-13     September 1 of each year.
2-14           (f)  Any assistance or benefits provided under this section
2-15     to a volunteer fire department or to a firefighter who is a member
2-16     of a volunteer fire department may not be considered compensation,
2-17     and a firefighter receiving assistance under this section may not
2-18     be considered to be in the paid service of any governing body or
2-19     other entity.
2-20           (g)  The director shall establish a five-member advisory
2-21     committee to advise the director in regard to the administration of
2-22     the program.  In establishing the advisory committee, the director
2-23     shall appoint one member from North Texas, one member from South
2-24     Texas, one member from East Texas, one member from West Texas, and
2-25     one member from Central Texas.
2-26           (h)  A request for assistance from the account shall be
2-27     submitted to the director.
 3-1           (i)  On receiving a request for assistance, the director
 3-2     shall determine whether to provide a grant and the amount of the
 3-3     grant to be provided, if any, based on the criteria and
 3-4     qualifications developed in consultation with the  advisory
 3-5     committee under Subsection (d).  A written copy of the decision
 3-6     shall be sent to the requestor and to each member of the advisory
 3-7     committee.
 3-8           Sec. 88.1062.  RURAL FIRE PROTECTION FEE.  (a)  In this
 3-9     section, "fireworks" means any composition or device designed to
3-10     produce a visible or audible effect by combustion, explosion,
3-11     deflagration, or detonation.
3-12           (b)  A rural fire protection fee is imposed on each sale at
3-13     retail of fireworks.  The fee on each sale is an amount equal to
3-14     two percent of the sale price of the fireworks.
3-15           (c)  The fee is in addition to the tax imposed under Chapter
3-16     151, Tax Code.  The fee imposed by this section does not apply to a
3-17     sale unless the tax imposed under Chapter 151, Tax Code, applies to
3-18     the sale.
3-19           (d)  This section does not apply to:
3-20                 (1)  a toy pistol, toy cane, toy gun, or other device
3-21     that uses a paper or plastic cap;
3-22                 (2)  a model rocket or model rocket motor designed,
3-23     sold, and used for the purpose of propelling a recoverable aero
3-24     model;
3-25                 (3)  a propelling or expelling charge consisting of a
3-26     mixture of sulfur, charcoal, and potassium nitrate;
3-27                 (4)  a novelty or trick noisemaker;
 4-1                 (5)  a pyrotechnic signaling device or distress signal
 4-2     for marine, aviation, or highway use in an emergency situation;
 4-3                 (6)  a fusee or railway torpedo for use by a railroad;
 4-4                 (7)  the sale of a blank cartridge for use in a radio,
 4-5     television, film, or theater production, for signal or ceremonial
 4-6     purposes in athletic events, or for industrial purposes; or
 4-7                 (8)  a pyrotechnic device for use by a military
 4-8     organization.
 4-9           (e)  Except as otherwise provided by this section:
4-10                 (1)  the fee is  administered, imposed, collected, and
4-11     enforced in the same manner as the tax under Chapter 151, Tax Code;
4-12     and
4-13                 (2)  the provisions of Chapter 151, Tax Code, that are
4-14     applicable to the sales tax imposed under Subchapter C, Chapter
4-15     151, Tax Code, apply to the fee.
4-16           (f)  A change in the law relating to the taxation of the sale
4-17     of fireworks under Chapter 151, Tax Code, also applies to the fee
4-18     imposed by this section.
4-19           (g)  The comptroller shall allocate the revenue from fees
4-20     imposed by this section, other than penalties and interest, to the
4-21     statewide fire contingency account established by Section 88.117.
4-22           SECTION 2.  Section 88.117, Education Code, is amended to
4-23     read as follows:
4-24           Sec. 88.117.  STATEWIDE FIRE CONTINGENCY ACCOUNT.  (a)  The
4-25     statewide fire contingency account is established as an account in
4-26     the general revenue fund.
4-27           (b)  The governor, the board, and the director may accept
 5-1     gifts and grants, including federal grants, and other federal
 5-2     assistance for deposit into the account.  This program will be
 5-3     funded through:
 5-4                 (1)  private gifts, grants, or assistance; and
 5-5                 (2)  revenue from the rural fire protection fee imposed
 5-6     by Section 88.1062.
 5-7           (c)  Money in the account may be used only to:
 5-8                 (1)  develop and deploy fire overhead management teams;
 5-9                 (2)  pay the direct costs of using Texas Forest Service
5-10     equipment and personnel to support local fire-fighting forces in
5-11     the suppression of fires during wildfire emergencies or threatened
5-12     wildfire emergencies;
5-13                 (3)  pay the direct costs of local fire-fighting forces
5-14     that are mobilized to respond to wildfire emergencies or threatened
5-15     wildfire emergencies in aid of another fire-fighting force;
5-16                 (4)  pay for any expenses incurred by the Texas Forest
5-17     Service, or otherwise by the state, when fires are combatted under
5-18     the South Central Interstate Forest Fire Prevention Compact or with
5-19     the assistance of the federal forest service; [and]
5-20                 (5)  pay for any other expenses that the director is
5-21     required to pay from this account under federal law; and
5-22                 (6)  assist rural volunteer fire departments in paying
5-23     for equipment and training of personnel as provided by Section
5-24     88.1061.
5-25           (d)  Money in the account may not be used or transferred from
5-26     the account except for the purposes prescribed by Subsection (c) of
5-27     this section [or as required by Subsection (e) of this section].
 6-1           (e)  Money deposited into the account under Subsection (b)(2)
 6-2     may be used only for the purpose prescribed by Subsection (c)(6)
 6-3     [Any unobligated amount over $1,000,000 remaining in the account on
 6-4     August 31 of each year shall be transferred into the undedicated
 6-5     portion of the general revenue fund except as prohibited by other
 6-6     law].
 6-7           SECTION 3.  (a)  If this Act receives the votes required by
 6-8     Section 39, Article III, Texas Constitution, for an effective date
 6-9     before the 91st day after the last day of the legislative session,
6-10     this Act takes effect July 1, 1999.
6-11           (b)  If this Act does not receive the votes required by
6-12     Section 39, Article III, Texas Constitution, for an effective date
6-13     before the 91st day after the last day of the legislative session,
6-14     this Act takes effect October 1, 1999.
6-15           (c)  The director of the Texas Forest Service may not grant a
6-16     request for assistance under Section 88.1061, Education  Code, as
6-17     added by this Act, before September 1, 2000.
6-18           SECTION 4.  The importance of this legislation and the
6-19     crowded condition of the calendars in both houses create an
6-20     emergency and an imperative public necessity that the
6-21     constitutional rule requiring bills to be read on three several
6-22     days in each house be suspended, and this rule is hereby suspended,
6-23     and that this Act take effect and be in force according to its
6-24     terms, and it is so enacted.