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