By Cook H.B. No. 3667 Line and page numbers may not match official copy. Bill not drafted by TLC or Senate E&E. 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 INSURANCE 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 Insurance Fund. 1-13 (3) "Program" means the Rural Volunteer Fire 1-14 Department Insurance Program. 1-15 (4) "Service" means the Texas Forest Service of Texas 1-16 A&M University System. 1-17 (5) "Part-paid fire department" means a fire 1-18 department operated by its members, some of whom are volunteers and 1-19 not more than 20 of whom are paid. 1-20 (6) "Volunteer fire department" means a fire 1-21 department operated by its members, including a part-paid fire 1-22 department, that is operated on a not-for-profit basis, including a 1-23 department that is exempt from federal income tax under Section 2-1 501(a), Internal Revenue Code of 1986, by being listed as an exempt 2-2 organization in Section 501(c)(3) of that code and participates in 2-3 the firefighter certification program under Subchapter D, Sec. 2-4 419.071 of the Government Code or the certification program 2-5 administered by the State Firemen's and Fire Marshals' Association 2-6 of Texas. 2-7 Sec. 614.072. ADMINISTRATION OF PROGRAM. (a) The Texas 2-8 Forest Service shall administer the program established under this 2-9 subchapter, and the director may adopt rules necessary to assist 2-10 rural volunteer fire departments in paying for worker's 2-11 compensation and accidental death and disability insurance. 2-12 (b) The service may employ staff to administer the program. 2-13 (c) The director shall, in consultation with the advisory 2-14 committee appointed under Section 614.073: 2-15 (1) Determine reasonable criteria and qualifications 2-16 for the distribution of money from the rural volunteer fire 2-17 department insurance fund; and 2-18 (2) Establish a procedure for reporting and processing 2-19 requests for money from the fund. 2-20 (d) The criteria and qualifications for the distribution of 2-21 money from the fund determined by the director under Subsection (c) 2-22 may not include a prohibition on a volunteer fire department 2-23 receiving funds from a political subdivision. 2-24 (e) The director shall prepare an annual written report on 2-25 the activity, status, and effectiveness of the fund and shall 2-26 submit the report to the lieutenant governor, the speaker of the 3-1 house of representatives, and the comptroller before September 1 of 3-2 each year. 3-3 (f) Any assistance or benefits provided under this 3-4 subchapter to a volunteer fire department or a firefighter who is a 3-5 member of a volunteer fire department may not be considered 3-6 compensation, and a firefighter receiving assistance under this 3-7 subchapter may not be considered to be in the paid service of any 3-8 governing body. 3-9 (g) Administration costs associated with the program during 3-10 a state fiscal year may not exceed seven percent of the total 3-11 revenue collected from the tax imposed under Chapter 161, Tax Code, 3-12 during the previous year. 3-13 Sec. 614.073. ADVISORY COMMITTEE. (a) The director shall 3-14 appoint an advisory committee to advise the director in regard to 3-15 the administration of the program. 3-16 (c) The advisory committee consists of five members, two of 3-17 whom must be members of the Texas Rural Fire Advisory Council, two 3-18 of whom must be elected county officials, and one of whom must be 3-19 an elected representative of a municipality with a population of 3-20 10,000 or less. The director must appoint the members as follows: 3-21 (1) one member from the north region of the state; 3-22 (2) one member from the south region of the state; 3-23 (3) one member from the east region of the state; 3-24 (4) one member from the west region of the state; 3-25 (5) one member from the central region of the state. 3-26 Sec. 614.074. REQUESTS FOR ASSISTANCE. (a) A request for 4-1 assistance from the fund shall be submitted to the director. 4-2 (b) On receiving a request for assistance, the director 4-3 shall determine whether to provide assistance and the amount of the 4-4 assistance to be provided, if any, based on the criteria developed 4-5 in consultation with the advisory committee under Section 614.072. 4-6 A written copy of the decision shall be sent to the requestor and 4-7 each member of the advisory committee. 4-8 Sec. 614.075. FUND. (a) The rural volunteer fire 4-9 department insurance fund is an account in the general revenue fund 4-10 and is composed of money collected under Chapter 161, Tax Code, and 4-11 contributions to the fund from any other source. 4-12 (b) Money in the fund may be used only for a purpose under 4-13 this subchapter. 4-14 SECTION 2. Subtitle E, Title 2, Tax Code, is amended by 4-15 adding Chapter 161 to read as follows: 4-16 CHAPTER 161. FIREWORKS TAX 4-17 Sec. 161.001. DEFINITION. In this chapter, "fireworks" 4-18 means any composition or device that is designed to produce a 4-19 visible or audible effect by combustion, explosion, deflagration, 4-20 or detonation that is classified as Division 1.4G explosives by the 4-21 United States Department of Transportation in 49 C.F.R. Part 173 as 4-22 of September 1, 2001. 4-23 Sec. 161.002. FIREWORKS SALES TAX. (a) A tax is imposed on 4-24 each sale at retail of fireworks. 4-25 (b) The tax rate is two percent of the sale price of the 4-26 fireworks. 5-1 (c) The tax imposed under this chapter is in addition to the 5-2 tax imposed under Chapter 151. The tax imposed by this chapter 5-3 does not apply to a sale unless the tax imposed under Chapter 151 5-4 applies to the sale. 5-5 Sec. 161.003. APPLICATION OF OTHER PROVISIONS OF CODE. (a) 5-6 Except as provided differently by this chapter: 5-7 (1) the tax imposed by this chapter is administered, 5-8 imposed, collected, and enforced in the same manner as the tax 5-9 under Chapter 151 is administered, imposed, collected, and 5-10 enforced; and 5-11 (2) the provisions of Chapter 151 that are applicable 5-12 to the sales tax imposed under Subchapter C, Chapter 151, apply to 5-13 the tax imposed by this chapter. 5-14 (b) A change in the law relating to the taxation of the sale 5-15 of fireworks under Chapter 151 also applies to the tax imposed by 5-16 this chapter. 5-17 Sec. 161.004. ALLOCATION OF TAX. The comptroller shall 5-18 allocate the revenue from taxes imposed by this chapter, other than 5-19 penalties and interest, to the rural volunteer fire department 5-20 insurance fund established by Section 614.075, Government Code. 5-21 SECTION 3. The director of the Texas Forest Service may not 5-22 grant a request for assistance under Subchapter F, Chapter 614, 5-23 Government Code, as added by this Act, before September 1, 2002. 5-24 SECTION 4. This Act takes effect July 1, 2001, if it 5-25 receives a vote of two-thirds of all the members elected to each 5-26 house, as provided by Section 39, Article III, Texas Constitution. 6-1 If this Act does not receive the vote necessary for effect on that 6-2 date, this Act takes effect October 1, 2001.