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 that is operated on a
1-19     not-for-profit basis, including a department that is exempt from
1-20     federal income tax under Section 501(a), Internal Revenue Code of
1-21     1986, by being listed as an exempt organization in  Section
1-22     501(c)(3) of that code.
1-23           Sec. 614.072.  ADMINISTRATION OF PROGRAM.  (a)  The Texas
1-24     Forest Service shall administer the volunteer fire department
 2-1     assistance program established under this subchapter, and the
 2-2     director may adopt rules necessary to assist rural volunteer fire
 2-3     departments in paying for equipment and training of personnel.
 2-4           (b)  The service may employ staff to administer the program.
 2-5           (c)  The director shall, in consultation with the advisory
 2-6     committee:
 2-7                 (1)  determine reasonable criteria and qualifications
 2-8     for the distribution of money from the rural volunteer fire
 2-9     department assistance fund, providing that no volunteer fire
2-10     department may be denied assistance from the fund if it already
2-11     receives funds from a political subdivision; and
2-12                 (2)  establish a procedure for reporting and processing
2-13     requests for money from the fund.
2-14           (d)  The director shall prepare an annual written report on
2-15     the activity, status, and effectiveness of the fund and shall
2-16     submit the report to the lieutenant governor, the speaker of the
2-17     house of representatives, and the comptroller before September 1 of
2-18     each year.
2-19           (e)  Any assistance or benefits provided under this
2-20     subchapter to a volunteer fire department or a firefighter who is a
2-21     member of a volunteer fire department may not be considered
2-22     compensation, and a firefighter receiving assistance under this
2-23     subchapter may not be considered to be in the paid service of any
2-24     governing body.
2-25           (f)  Administration costs associated with the program during
2-26     a state fiscal year may not exceed seven percent of the total
2-27     revenue collected from the tax imposed under Chapter 161, Tax Code,
 3-1     during the previous fiscal year.
 3-2           Sec. 614.073.  ADVISORY COMMITTEE.  (a)  The director shall
 3-3     appoint an advisory committee to advise the director in regard to
 3-4     the administration of the program.
 3-5           (b)  The advisory committee consists of five members, two of
 3-6     whom must be members of the Texas Rural Fire Advisory Council, two
 3-7     of whom must be elected county officials, and one of whom must be
 3-8     an elected representative of a municipality with a population of
 3-9     10,000 or less.  The director must appoint the members as follows:
3-10                 (1)  one member from the north region of the state;
3-11                 (2)  one member from the south region of the state;
3-12                 (3)  one member from the east region of the state;
3-13                 (4)  one member from the west region of the state; and
3-14                 (5)  one member from the central region of the state.
3-15           Sec. 614.074.  REQUESTS FOR ASSISTANCE.  (a)  A request for
3-16     assistance from the fund shall be submitted to the director.
3-17           (b)  On receiving a request for assistance, the director
3-18     shall determine whether to provide assistance and the amount of the
3-19     assistance to be provided, if any, based on the criteria developed
3-20     in consultation with the  advisory committee under Section 614.072.
3-21     A written copy of the decision shall be sent to the requestor and
3-22     each member of the advisory committee.
3-23           Sec. 614.075.  FUND.  (a)  The rural volunteer fire
3-24     department assistance fund is an account in the general revenue
3-25     fund and is composed of money collected under Chapter 161, Tax
3-26     Code, and contributions to the fund from any other source.
3-27           (b)  Money in the fund may be used only for a purpose under
 4-1     this subchapter.
 4-2           SECTION 2.  Subtitle E, Title 2, Tax Code, is amended by
 4-3     adding Chapter 161 to read as follows:
 4-4                         CHAPTER 161. FIREWORKS TAX
 4-5           Sec. 161.001.  DEFINITION.  In this chapter, "fireworks"
 4-6     means any composition or device that is designed to produce a
 4-7     visible or audible effect by combustion, explosion, deflagration,
 4-8     or detonation that is classified as Division 1.4G explosives by the
 4-9     United States Department of Transportation in 49 C.F.R. Part 173 as
4-10     of September 1, 1999.
4-11           Sec. 161.002.  FIREWORKS SALES TAX.  (a)  A tax is imposed on
4-12     each sale at retail of fireworks.
4-13           (b)  The tax rate is two percent of the sale price of the
4-14     fireworks.
4-15           (c)  The tax imposed under this chapter is in addition to the
4-16     tax imposed under Chapter 151.  The tax imposed by this  chapter
4-17     does not apply to a sale unless the tax imposed under Chapter 151
4-18     applies to the sale.
4-19           Sec. 161.003.  APPLICATION OF OTHER PROVISIONS OF CODE.  (a)
4-20     Except as provided differently by this chapter:
4-21                 (1)  the tax imposed by this chapter is  administered,
4-22     imposed, collected, and enforced in the same manner as the tax
4-23     under Chapter 151 is administered, imposed, collected, and
4-24     enforced; and
4-25                 (2)  the provisions of Chapter 151 that are applicable
4-26     to the sales tax imposed under Subchapter C, Chapter 151, apply to
4-27     the tax imposed by this  chapter.
 5-1           (b)  A change in the law relating to the taxation of the sale
 5-2     of fireworks under Chapter 151 also applies to the tax imposed by
 5-3     this chapter.
 5-4           Sec. 161.004.  ALLOCATION OF TAX.  The comptroller shall
 5-5     allocate the revenue from taxes imposed by this chapter, other than
 5-6     penalties and interest, to the rural volunteer fire department
 5-7     assistance fund established by Section 614.075, Government Code.
 5-8           SECTION 3.  (a)  If this Act receives the votes required by
 5-9     Section 39, Article III, Texas Constitution, for an effective date
5-10     before the 91st day after the last day of the legislative session,
5-11     this Act takes effect July 1, 1999.
5-12           (b)  If this Act does not receive the votes required by
5-13     Section 39, Article III, Texas Constitution, for an effective date
5-14     before the 91st day after the last day of the legislative session,
5-15     this Act takes effect October 1, 1999.
5-16           (c)  The director of the Texas Forest Service may not grant a
5-17     request for assistance under Subchapter F, Chapter 614, Government
5-18     Code, as added by this Act, before September 1, 2000.
5-19           SECTION 4.  The importance of this legislation and the
5-20     crowded condition of the calendars in both houses create an
5-21     emergency and an imperative public necessity that the
5-22     constitutional rule requiring bills to be read on three several
5-23     days in each house be suspended, and this rule is hereby suspended,
5-24     and that this Act take effect and be in force according to its
5-25     terms, and it is so enacted.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2107 was passed by the House on April
         22, 1999, by a non-record vote; and that the House concurred in
         Senate amendments to H.B. No. 2107 on May 13, 1999, by a non-record
         vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 2107 was passed by the Senate, with
         amendments, on May 11, 1999, by the following vote:  Yeas 29, Nays
         1.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor