Bill Text: CA AB1486 | 2013-2014 | Regular Session | Amended
Bill Title: Fireworks: tax on distribution.
Spectrum: Partisan Bill (Democrat 16-0)
Status: (Engrossed - Dead) 2014-08-26 - Read second time. Ordered to third reading. [AB1486 Detail]
Download: California-2013-AB1486-Amended.html
BILL NUMBER: AB 1486 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 22, 2014
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 9, 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: majority 2/3 . Appropriation:
no. Fiscal committee: no yes .
State-mandated 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.
