1-1 By: Cook (Senate Sponsor - Armbrister) H.B. No. 3667 1-2 (In the Senate - Received from the House May 11, 2001; 1-3 May 11, 2001, read first time and referred to Committee on Finance; 1-4 May 11, 2001, reported favorably by the following vote: Yeas 9, 1-5 Nays 0; May 11, 2001, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to insurance for, and a fireworks sales tax for the 1-9 support of, certain volunteer fire departments. 1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-11 SECTION 1. Chapter 614, Government Code, is amended by 1-12 adding Subchapter F to read as follows: 1-13 SUBCHAPTER F. RURAL VOLUNTEER FIRE DEPARTMENT INSURANCE PROGRAM 1-14 Sec. 614.071. DEFINITIONS. In this subchapter: 1-15 (1) "Director" means the director of the Texas Forest 1-16 Service. 1-17 (2) "Fund" means the rural volunteer fire department 1-18 insurance fund. 1-19 (3) "Partially paid fire department" means a fire 1-20 department operated by its members that includes: 1-21 (A) some volunteer members; and 1-22 (B) not more than 20 paid members. 1-23 (4) "Program" means the rural volunteer fire 1-24 department insurance program. 1-25 (5) "Service" means the Texas Forest Service, an 1-26 agency of The Texas A&M University System. 1-27 (6) "Volunteer fire department" means a fire 1-28 department operated by its members, including a partially paid fire 1-29 department, that: 1-30 (A) is operated on a not-for-profit basis, 1-31 including a department exempt from federal income tax under Section 1-32 501(a), Internal Revenue Code of 1986, by being listed as an exempt 1-33 organization in Section 501(c)(3) of that code; and 1-34 (B) participates in a firefighter certification 1-35 program administered: 1-36 (i) under Section 419.071; or 1-37 (ii) by the State Firemen's and Fire 1-38 Marshals' Association of Texas. 1-39 Sec. 614.072. ADMINISTRATION OF PROGRAM. (a) The Texas 1-40 Forest Service shall administer the rural volunteer fire department 1-41 insurance program established under this subchapter. 1-42 (b) The director may adopt rules necessary to assist rural 1-43 volunteer fire departments in the payment of workers' compensation 1-44 insurance and accidental death and disability insurance. 1-45 (c) The service may employ staff to administer the program. 1-46 (d) The director shall, in consultation with the advisory 1-47 committee appointed under Section 614.073: 1-48 (1) determine reasonable criteria and qualifications 1-49 for the distribution of money from the fund; and 1-50 (2) establish a procedure for reporting and processing 1-51 requests for money from the fund. 1-52 (e) In developing the criteria and qualifications for the 1-53 distribution of money from the fund under Subsection (d), the 1-54 director may not prohibit a volunteer fire department from 1-55 receiving funds from a political subdivision. 1-56 (f) The director shall prepare an annual written report on 1-57 the activity, status, and effectiveness of the fund and shall 1-58 submit the report to the lieutenant governor, the speaker of the 1-59 house of representatives, and the comptroller before September 1 of 1-60 each year. 1-61 (g) Any assistance provided under this subchapter to a 1-62 volunteer fire department or a firefighter who is a member of a 1-63 volunteer fire department may not be considered compensation, and a 1-64 firefighter receiving assistance under this subchapter may not be 2-1 considered to be in the paid service of any governing body. 2-2 (h) Administration costs associated with the program during 2-3 a state fiscal year may not exceed seven percent of the total 2-4 revenue collected from the tax imposed under Chapter 161, Tax Code, 2-5 during the previous fiscal year. 2-6 Sec. 614.073. ADVISORY COMMITTEE. (a) The director shall 2-7 appoint an advisory committee to advise the director in regard to 2-8 the administration of the program. 2-9 (b) The advisory committee consists of five members as 2-10 follows: 2-11 (1) two members of the Texas Rural Fire Advisory 2-12 Council; 2-13 (2) two elected county officials; and 2-14 (3) one elected representative of a municipality with 2-15 a population of 10,000 or less. 2-16 (c) The director shall appoint one advisory committee member 2-17 from each of the following geographic regions of the state: north, 2-18 south, east, west, and central. 2-19 Sec. 614.074. REQUESTS FOR ASSISTANCE. (a) A request for 2-20 assistance from the fund shall be submitted to the director. 2-21 (b) On receiving a request for assistance, the director 2-22 shall determine whether to provide assistance and the amount of the 2-23 assistance to be provided, if any, based on the criteria developed 2-24 in consultation with the advisory committee under Section 614.072. 2-25 A written copy of the decision shall be sent to the requestor and 2-26 each member of the advisory committee. 2-27 Sec. 614.075. FUND. (a) The rural volunteer fire 2-28 department insurance fund is an account in the general revenue fund 2-29 and is composed of money collected under Chapter 161, Tax Code, and 2-30 contributions to the fund from any other source. 2-31 (b) Money in the fund may be used only for a purpose under 2-32 this subchapter. 2-33 SECTION 2. Subtitle E, Title 2, Tax Code, is amended by 2-34 adding Chapter 161 to read as follows: 2-35 CHAPTER 161. FIREWORKS TAX 2-36 Sec. 161.001. DEFINITION. In this chapter, "fireworks" 2-37 means any composition or device that is designed to produce a 2-38 visible or audible effect by combustion, explosion, deflagration, 2-39 or detonation that is classified as Division 1.4G explosives by the 2-40 United States Department of Transportation in 49 C.F.R. Part 173 as 2-41 of September 1, 1999. 2-42 Sec. 161.002. FIREWORKS SALES TAX. (a) A tax is imposed on 2-43 each sale at retail of fireworks. 2-44 (b) The tax rate is two percent of the sale price of the 2-45 fireworks. 2-46 (c) The tax imposed under this chapter is in addition to the 2-47 tax imposed under Chapter 151. The tax imposed by this chapter 2-48 does not apply to a sale unless the tax imposed under Chapter 151 2-49 applies to the sale. 2-50 Sec. 161.003. EXCEPTIONS TO APPLICABILITY OF CHAPTER. This 2-51 chapter does not apply to: 2-52 (1) a toy pistol, toy cane, toy gun, or other device 2-53 that uses a paper or plastic cap; 2-54 (2) a model rocket or model rocket motor designed, 2-55 sold, and used for the purpose of propelling a recoverable aero 2-56 model; 2-57 (3) a propelling or expelling charge consisting of a 2-58 mixture of sulfur, charcoal, and potassium nitrate; 2-59 (4) a novelty or trick noisemaker; 2-60 (5) a pyrotechnic signaling device or distress signal 2-61 for marine, aviation, or highway use in an emergency situation; 2-62 (6) a fusee or railway torpedo for use by a railroad; 2-63 (7) the sale of a blank cartridge for use in a radio, 2-64 television, film, or theater production, for signal or ceremonial 2-65 purposes in athletic events, or for industrial purposes; or 2-66 (8) a pyrotechnic device for use by a military 2-67 organization. 2-68 Sec. 161.004. APPLICATION OF OTHER PROVISIONS OF CODE. (a) 2-69 Except as provided by this chapter: 3-1 (1) the tax imposed by this chapter is administered, 3-2 imposed, collected, and enforced in the same manner as the tax 3-3 under Chapter 151 is administered, imposed, collected, and 3-4 enforced; and 3-5 (2) the provisions of Chapter 151 applicable to the 3-6 sales tax imposed under Subchapter C, Chapter 151, apply to the tax 3-7 imposed by this chapter. 3-8 (b) A change in the law relating to the taxation of the sale 3-9 of fireworks under Chapter 151 also applies to the tax imposed by 3-10 this chapter. 3-11 Sec. 161.005. ALLOCATION OF TAX. The comptroller shall 3-12 allocate the revenue from taxes imposed by this chapter, other than 3-13 penalties and interest, to the rural volunteer fire department 3-14 insurance fund established by Section 614.075, Government Code. 3-15 SECTION 3. (a) This Act takes effect July 1, 2001, if this 3-16 Act receives a vote of two-thirds of all the members elected to 3-17 each house, as provided by Section 39, Article III, Texas 3-18 Constitution, for an effective date before the 91st day after the 3-19 last day of the legislative session. 3-20 (b) This Act takes effect October 1, 2001, if this Act does 3-21 not receive a vote of two-thirds of all the members elected to each 3-22 house, as provided by Section 39, Article III, Texas Constitution, 3-23 for an effective date before the 91st day after the last day of the 3-24 legislative session. 3-25 (c) The director of the Texas Forest Service may not grant a 3-26 request for assistance under Subchapter F, Chapter 614, Government 3-27 Code, as added by this Act, before September 1, 2002. 3-28 * * * * *