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