By Armbrister S.B. No. 1346 77R4985 KSD-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 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 on a not-for-profit basis, 1-19 including a department that is exempt from federal income tax under 1-20 Section 501(a), Internal Revenue Code of 1986, by being listed as 1-21 an exempt organization in Section 501(c)(3) of that code. 1-22 Sec. 614.072. ADMINISTRATION OF PROGRAM. (a) The Texas 1-23 Forest Service shall administer the program established under this 1-24 subchapter, and the director may adopt rules necessary to assist 2-1 rural volunteer fire departments in paying for equipment and 2-2 training personnel. 2-3 (b) The service may employ staff to administer the program. 2-4 (c) The director shall, in consultation with the advisory 2-5 committee appointed under Section 614.073: 2-6 (1) determine reasonable criteria and qualifications 2-7 for the distribution of money from the rural volunteer fire 2-8 department assistance fund; and 2-9 (2) establish a procedure for reporting and processing 2-10 requests for money from the fund. 2-11 (d) The criteria and qualifications for the distribution of 2-12 money from the fund determined by the director under Subsection (c) 2-13 may not include a prohibition on a volunteer fire department 2-14 receiving funds from a political subdivision. 2-15 (e) The director shall prepare an annual written report on 2-16 the activity, status, and effectiveness of the fund and shall 2-17 submit the report to the lieutenant governor, the speaker of the 2-18 house of representatives, and the comptroller before September 1 of 2-19 each year. 2-20 (f) Any assistance or benefits provided under this 2-21 subchapter to a volunteer fire department or a firefighter who is a 2-22 member of a volunteer fire department may not be considered 2-23 compensation, and a firefighter receiving assistance under this 2-24 subchapter may not be considered to be in the paid service of any 2-25 governing body. 2-26 (g) Administration costs associated with the program during 2-27 a state fiscal year may not exceed seven percent of the total 3-1 revenue collected from the tax imposed under Chapter 161, Tax Code, 3-2 during the previous fiscal year. 3-3 Sec. 614.073. ADVISORY COMMITTEE. (a) The director shall 3-4 appoint an advisory committee to advise the director in regard to 3-5 the administration of the program. 3-6 (b) The advisory committee consists of five members, two of 3-7 whom must be members of the Texas Rural Fire Advisory Council, two 3-8 of whom must be elected county officials, and one of whom must be 3-9 an elected representative of a municipality with a population of 3-10 10,000 or less. The director must appoint the members as follows: 3-11 (1) one member from the north region of the state; 3-12 (2) one member from the south region of the state; 3-13 (3) one member from the east region of the state; 3-14 (4) one member from the west region of the state; and 3-15 (5) one member from the central region of the state. 3-16 Sec. 614.074. REQUESTS FOR ASSISTANCE. (a) A request for 3-17 assistance from the fund shall be submitted to the director. 3-18 (b) On receiving a request for assistance, the director 3-19 shall determine whether to provide assistance and the amount of the 3-20 assistance to be provided, if any, based on the criteria developed 3-21 in consultation with the advisory committee under Section 614.072. 3-22 A written copy of the decision shall be sent to the requestor and 3-23 each member of the advisory committee. 3-24 Sec. 614.075. FUND. (a) The rural volunteer fire 3-25 department assistance fund is an account in the general revenue 3-26 fund and is composed of money collected under Chapter 161, Tax 3-27 Code, and contributions to the fund from any other source. 4-1 (b) Money in the fund may be used only for a purpose under 4-2 this subchapter. 4-3 SECTION 2. Subtitle E, Title 2, Tax Code, is amended by 4-4 adding Chapter 161 to read as follows: 4-5 CHAPTER 161. FIREWORKS TAX 4-6 Sec. 161.001. DEFINITION. In this chapter, "fireworks" 4-7 means any composition or device that is designed to produce a 4-8 visible or audible effect by combustion, explosion, deflagration, 4-9 or detonation that is classified as Division 1.4G explosives by the 4-10 United States Department of Transportation in 49 C.F.R. Part 173 as 4-11 of September 1, 2001. 4-12 Sec. 161.002. FIREWORKS SALES TAX. (a) A tax is imposed on 4-13 each sale at retail of fireworks. 4-14 (b) The tax rate is two percent of the sale price of the 4-15 fireworks. 4-16 (c) The tax imposed under this chapter is in addition to the 4-17 tax imposed under Chapter 151. The tax imposed by this chapter 4-18 does not apply to a sale unless the tax imposed under Chapter 151 4-19 applies to the sale. 4-20 Sec. 161.003. APPLICATION OF OTHER PROVISIONS OF CODE. (a) 4-21 Except as provided differently by this chapter: 4-22 (1) the tax imposed by this chapter is administered, 4-23 imposed, collected, and enforced in the same manner as the tax 4-24 under Chapter 151 is administered, imposed, collected, and 4-25 enforced; and 4-26 (2) the provisions of Chapter 151 that are applicable 4-27 to the sales tax imposed under Subchapter C, Chapter 151, apply to 5-1 the tax imposed by this chapter. 5-2 (b) A change in the law relating to the taxation of the sale 5-3 of fireworks under Chapter 151 also applies to the tax imposed by 5-4 this chapter. 5-5 Sec. 161.004. ALLOCATION OF TAX. The comptroller shall 5-6 allocate the revenue from taxes imposed by this chapter, other than 5-7 penalties and interest, to the rural volunteer fire department 5-8 assistance fund established by Section 614.075, Government Code. 5-9 SECTION 3. The director of the Texas Forest Service may not 5-10 grant a request for assistance under Subchapter F, Chapter 614, 5-11 Government Code, as added by this Act, before September 1, 2002. 5-12 SECTION 4. This Act takes effect July 1, 2001, if it 5-13 receives a vote of two-thirds of all the members elected to each 5-14 house, as provided by Section 39, Article III, Texas Constitution. 5-15 If this Act does not receive the vote necessary for effect on that 5-16 date, this Act takes effect October 1, 2001.