76R10041 BDH-D By Cook, Salinas, Turner of Coleman, Counts H.B. No. 2107 McReynolds, et al. Substitute the following for H.B. No. 2107: By Jones of Brazos C.S.H.B. No. 2107 A BILL TO BE ENTITLED 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; and 2-10 (2) establish a procedure for reporting and processing 2-11 requests for money from the fund. 2-12 (d) The director shall prepare an annual written report on 2-13 the activity, status, and effectiveness of the fund and shall 2-14 submit the report to the lieutenant governor, the speaker of the 2-15 house of representatives, and the comptroller before September 1 of 2-16 each year. 2-17 (e) Any assistance or benefits provided under this 2-18 subchapter to a volunteer fire department or a firefighter who is a 2-19 member of a volunteer fire department may not be considered 2-20 compensation, and a firefighter receiving assistance under this 2-21 subchapter may not be considered to be in the paid service of any 2-22 governing body. 2-23 (f) Administration costs associated with the program during 2-24 a state fiscal year may not exceed seven percent of the total 2-25 revenue collected from the tax imposed under Chapter 161, Tax Code, 2-26 during the previous fiscal year. 2-27 Sec. 614.073. ADVISORY COMMITTEE. (a) The director shall 3-1 appoint an advisory committee to advise the director in regard to 3-2 the administration of the program. 3-3 (b) The advisory committee consists of five members, two of 3-4 whom must be members of the Texas Rural Fire Advisory Council, two 3-5 of whom must be elected county officials, and one of whom must be 3-6 an elected representative of a municipality with a population of 3-7 10,000 or less. The director must appoint the members as follows: 3-8 (1) one member from the north region of the state; 3-9 (2) one member from the south region of the state; 3-10 (3) one member from the east region of the state; 3-11 (4) one member from the west region of the state; and 3-12 (5) one member from the central region of the state. 3-13 Sec. 614.074. REQUESTS FOR ASSISTANCE. (a) A request for 3-14 assistance from the fund shall be submitted to the director. 3-15 (b) On receiving a request for assistance, the director 3-16 shall determine whether to provide assistance and the amount of the 3-17 assistance to be provided, if any, based on the criteria developed 3-18 in consultation with the advisory committee under Section 614.072. 3-19 A written copy of the decision shall be sent to the requestor and 3-20 each member of the advisory committee. 3-21 Sec. 614.075. FUND. (a) The rural volunteer fire 3-22 department assistance fund is an account in the general revenue 3-23 fund and is composed of money collected under Chapter 161, Tax 3-24 Code, and contributions to the fund from any other source. 3-25 (b) Money in the fund may be used only for a purpose under 3-26 this subchapter. 3-27 SECTION 2. Subtitle E, Title 2, Tax Code, is amended by 4-1 adding Chapter 161 to read as follows: 4-2 CHAPTER 161. FIREWORKS TAX 4-3 Sec. 161.001. DEFINITION. In this chapter, "fireworks" 4-4 means any composition or device that is designed to produce a 4-5 visible or audible effect by combustion, explosion, deflagration, 4-6 or detonation that is classified as Division 1.4G explosives by the 4-7 United States Department of Transportation in 49 C.F.R. Part 173 as 4-8 of September 1, 1999. 4-9 Sec. 161.002. FIREWORKS SALES TAX. (a) A tax is imposed on 4-10 each sale at retail of fireworks. 4-11 (b) The tax rate is two percent of the sale price of the 4-12 fireworks. 4-13 (c) The tax imposed under this chapter is in addition to the 4-14 tax imposed under Chapter 151. The tax imposed by this chapter 4-15 does not apply to a sale unless the tax imposed under Chapter 151 4-16 applies to the sale. 4-17 Sec. 161.003. APPLICATION OF OTHER PROVISIONS OF CODE. (a) 4-18 Except as provided differently by this chapter: 4-19 (1) the tax imposed by this chapter is administered, 4-20 imposed, collected, and enforced in the same manner as the tax 4-21 under Chapter 151 is administered, imposed, collected, and 4-22 enforced; and 4-23 (2) the provisions of Chapter 151 that are applicable 4-24 to the sales tax imposed under Subchapter C, Chapter 151, apply to 4-25 the tax imposed by this chapter. 4-26 (b) A change in the law relating to the taxation of the sale 4-27 of fireworks under Chapter 151 also applies to the tax imposed by 5-1 this chapter. 5-2 Sec. 161.004. ALLOCATION OF TAX. The comptroller shall 5-3 allocate the revenue from taxes imposed by this chapter, other than 5-4 penalties and interest, to the rural volunteer fire department 5-5 assistance fund established by Section 614.075, Government Code. 5-6 SECTION 3. (a) If this Act receives the votes required by 5-7 Section 39, Article III, Texas Constitution, for an effective date 5-8 before the 91st day after the last day of the legislative session, 5-9 this Act takes effect July 1, 1999. 5-10 (b) If this Act does not receive the votes required by 5-11 Section 39, Article III, Texas Constitution, for an effective date 5-12 before the 91st day after the last day of the legislative session, 5-13 this Act takes effect October 1, 1999. 5-14 (c) The director of the Texas Forest Service may not grant a 5-15 request for assistance under Subchapter F, Chapter 614, Government 5-16 Code, as added by this Act, before September 1, 2000. 5-17 SECTION 4. The importance of this legislation and the 5-18 crowded condition of the calendars in both houses create an 5-19 emergency and an imperative public necessity that the 5-20 constitutional rule requiring bills to be read on three several 5-21 days in each house be suspended, and this rule is hereby suspended, 5-22 and that this Act take effect and be in force according to its 5-23 terms, and it is so enacted.