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AB-1486 Fireworks: tax on distribution.(2013-2014)

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AB1486:v98#DOCUMENT

Amended  IN  Senate  August 22, 2014

CALIFORNIA LEGISLATURE— 2013–2014 REGULAR SESSION

Assembly Bill
No. 1486

Introduced by Committee on Budget (Skinner (Chair), Bloom, Campos, Chesbro, Dababneh, Daly, Dickinson, Gordon, Jones-Sawyer, Mullin, Muratsuchi, Nazarian, Rodriguez, Stone, Ting, and Weber)

January 09, 2014

An act relating to the Budget Act of 2014. to amend Sections 12722 and 12728 of, and to add Section 12559 to, the Health and Safety Code, relating to fireworks, and declaring the urgency thereof, to take effect immediately.


LEGISLATIVE COUNSEL'S DIGEST


AB 1486, as amended, Committee on Budget. Budget Act of 2014. Fireworks: tax on distribution.
Existing law authorizes the annual retail sale of safe and sane fireworks from June 28 to July 6, inclusive, pursuant to a license issued by the State Fire Marshal, unless otherwise prohibited or regulated by law or ordinance. Existing law authorizes various entities, including the State Fire Marshal, to seize certain prohibited fireworks. Existing law requires an authority that seizes fireworks to notify the State Fire Marshal of the seizure and to provide specified information. Existing law requires the State Fire Marshal to dispose of the seized fireworks and requires dangerous fireworks to be disposed of according to specified procedures. Existing law establishes the State Fire Marshal Fireworks Enforcement and Disposal Fund (fund) in the State Treasury. Existing law requires moneys in the fund to be used by the State Fire Marshal for various purposes, including for the education of public safety agencies in the proper handling and management of dangerous fireworks and to further assist in public safety and education efforts within the general public as well as public safety agencies on the proper and responsible use of safe and sane fireworks. Existing law makes a violation of the law and regulations relating to fireworks a crime.
This bill would require the moneys in the fund to be used for the training of public safety agencies in the proper handling and management of dangerous fireworks and to further assist in public safety efforts within the general public as well as public safety agencies on the proper and responsible use, seizure, and storage of safe and sane fireworks. The bill would also authorize moneys in the fund to be used for the disposal of any seized fireworks and any infrastructure requirements necessary for the disposal of fireworks as well as used for the administration of the fund by the Office of the State Fire Marshal or its contracted designee.
This bill would require, commencing January 1, 2015, a distributor, as defined, to pay a tax upon distribution, as defined, of safe and sane fireworks, as provided. The bill would require the revenue from the tax to be deposited into the fund to be used for the purposes described above. The bill would authorize the State Fire Marshal to adjust the tax rate if the revenue in the fund is not estimated to cover expenses. The bill would specifically exclude a violation of these provisions from being a crime. The bill would also authorize the seizure of safe and sane fireworks distributed in this state by an unlicensed distributor for which the required tax has not been paid.
This bill would declare that it is to take effect immediately as an urgency statute.

This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2014.

Vote: MAJORITY2/3   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 12559 is added to the Health and Safety Code, to read:

12559.
 (a) Commencing January 1, 2015, a distributor shall pay a tax upon his or her distribution of safe and sane fireworks at the rate of ten cents ($0.10) per pound of the total weight of the fireworks, including any packaging, unless adjusted by the State Fire Marshal pursuant to subdivision (c).
(b) (1) Funds received by the State Fire Marshal or its designee pursuant to this section shall be deposited into the State Fire Marshal Fireworks Enforcement and Disposal Fund established pursuant to Section 12728.
(2) Funds received pursuant to this section shall only be used, upon appropriation by the Legislature, for the purposes listed in Section 12728.
(c) The State Fire Marshal may adjust the rate specified in subdivision (a), not to exceed twenty cents ($0.20) per pound, at a public meeting to be held in January of each year in order to provide sufficient revenues to pay for the estimated expenses described in Section 12728.
(d) The State Fire Marshal may contract with another public agency to administer this section.
(e) The State Fire Marshal is authorized to adopt emergency regulations necessary to implement this section during the 2014–15 fiscal year in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The adoption of emergency regulations shall be deemed an emergency and necessary for the immediate preservation of the public peace, health, and safety, or general welfare.
(f) The State Fire Marshal may, by regulation, establish the period for reporting of information, returns, billings, and payment of taxes due pursuant to this section.
(g) A violation of this section, or any regulation adopted pursuant to this section, does not constitute a crime for purposes of Section 12700.
(h) For purposes of this section, the following terms have the following meanings:
(1) (A) “Distribution” means either or both of the following:
(i) The sale of previously untaxed safe and sane fireworks in this state.
(ii) The use or consumption of previously untaxed safe and sane fireworks in this state. For purposes of this clause, “use or consumption” includes the exercise of a right or power over safe and sane fireworks incident to the ownership of those fireworks, other than the sale of the safe and sane fireworks or the keeping or retention of those fireworks by a licensee pursuant to Section 12571, 12572, or 12573.
(B) For purposes of this paragraph, “previously untaxed safe and sane fireworks” means fireworks that have not yet been distributed in a manner as to result in a tax liability under this section.
(2) “Distributor” means either of the following:
(A) A person who holds a license issued by the State Fire Marshal pursuant to Section 12571, 12572, or 12573.
(B) A person who does not hold a license described in subparagraph (A) and who, after the effective date of this section, distributes, as that term is described in paragraph (1), safe and sane fireworks in this state.

SEC. 2.

 Section 12722 of the Health and Safety Code is amended to read:

12722.
 The following fireworks may be seized pursuant to Section 12721:
(a) Those fireworks which that are sold, offered for sale, possessed, stored, used, or transported within this state prior to having been examined, classified, and registered by the State Fire Marshal, except those specific items designated as samples pending examination, classification, and registration by the State Fire Marshal where the licensee provides documentary evidence that such action by the State Fire Marshal is pending.
(b) All imported fireworks possessed without benefit of the filing of notices as required by this part.
(c) Safe and sane fireworks stored in violation of the conditions required by the permit as provided in this part.
(d) Safe and sane fireworks sold or offered for sale at retail which that do not bear the State Fire Marshal label of registration and firing instructions.
(e) Safe and sane fireworks sold or offered for sale at retail which that are in unsealed packages or containers which that do not bear the State Fire Marshal label of registration and firing instructions.
(f) Safe and sane fireworks sold or offered for sale at retail before 12 noon on the 28th day of June or after 12 noon on the sixth day of July of each year.
(g) Each safe and sane fireworks item sold or offered for sale at retail which that does not have its fuse or other igniting device protected by a cap approved by the State Fire Marshal, or groups of fireworks with exposed fuses which that are not enclosed in sealed packages which that bear the State Fire Marshal label of registration. The State Fire Marshal shall approve such the caps as he or she determines provide reasonable protection from unintentional ignition of the fireworks.
(h) Dangerous fireworks, including fireworks kits, used, possessed, stored, manufactured, or transported by any a person who does not possess a valid permit authorizing any an activity listed in this part.
(i) Any fireworks Fireworks stored or sold in any a public garage or public oil station, or on any a premises where gasoline or any other class 1 flammable liquids are stored or dispensed.
(j) Any fireworks Fireworks still possessed by a person who has just thrown any ignited fireworks at any a person or group of persons.
(k) Any model Model rocket engines or model rockets with engines possessed by any a person who does not holding hold a valid permit.
(l) Any An emergency signaling device sold, offered for sale, or used which that does not bear the State Fire Marshal label of registration as required by this part.
(m) Any fireworks Fireworks or pyrotechnic device offered for sale by any a person violating any provision of this part.
(n) Safe and sane fireworks distributed in this state by an unlicensed distributor and for which the tax required pursuant to Section 12559 has not been paid.

SEC. 3.

 Section 12728 of the Health and Safety Code is amended to read:

12728.
 (a) The State Fire Marshal Fireworks Enforcement and Disposal Fund is hereby established in the State Treasury.
(b) All of the moneys collected pursuant to Section 12706 shall be deposited in the fund and shall be available, upon appropriation by the Legislature, to the State Fire Marshal for the exclusive use in statewide programs for the enforcement, prosecution related to, disposal, and management of seized dangerous fireworks, and for the education training of public safety agencies in the proper handling and management of dangerous fireworks.
(c) All of the moneys collected pursuant to Section 12727 shall be deposited in the fund and shall be available, upon appropriation by the Legislature, to the State Fire Marshal for the exclusive use in statewide programs for all of the following:
(1) To further assist in statewide programs for the enforcement, prosecution related to, disposal, and management of seized dangerous fireworks.
(2) The education training of public safety agencies in the proper handling and management of dangerous fireworks as well as safety issues involving all fireworks and explosives.
(3) Assist the State Fire Marshal in identifying and evaluating methods to capture more detailed data relating to fires, damages, and injuries caused by both dangerous and safe and sane fireworks, and to assist with funding the eventual development and implementation of those methods.
(4) To further assist in public safety and education efforts within the general public as well as public safety agencies on the proper and responsible use use, seizure, and storage of safe and sane fireworks.
(5) Disposal of any seized fireworks and any infrastructure requirements necessary for the disposal of fireworks.
(6) Administration of the fund by the Office of the State Fire Marshal or its contracted designee.

SEC. 4.

 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order for regulatory changes to be adopted to address the public safety and environmental damage caused by illegal fireworks in the state at the earliest possible time, it is necessary that this act take effect immediately.
SECTION 1.

It is the intent of the Legislature to enact statutory changes relating to the Budget Act of 2014.