By Cook                                               H.B. No. 2107
         76R5497 BDH-D                           
                                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.
 3-8           Sec. 614.074.  REQUESTS FOR ASSISTANCE.  (a)  A request for
 3-9     assistance from the fund shall be submitted to the director.
3-10           (b)  On receiving a request for assistance, the director
3-11     shall determine whether to provide assistance and the amount of the
3-12     assistance to be provided, if any, based on the criteria developed
3-13     in consultation with the  advisory committee under Section 614.072.
3-14     A written copy of the decision shall be sent to the requestor and
3-15     each member of the advisory committee.
3-16           Sec. 614.075.  FUND.  (a)  The rural volunteer fire
3-17     department assistance fund is an account in the general revenue
3-18     fund and is composed of money collected under Chapter 161, Tax
3-19     Code, and contributions to the fund from any other source.
3-20           (b)  Money in the fund may be used only for a purpose under
3-21     this subchapter.
3-22           SECTION 2.  Subtitle E, Title 2, Tax Code, is amended by
3-23     adding Chapter 161 to read as follows:
3-24                         CHAPTER 161. FIREWORKS TAX
3-25           Sec. 161.001.  DEFINITION.  In this chapter, "fireworks"
3-26     means any composition or device designed to produce a visible or
3-27     audible effect by combustion, explosion, deflagration, or
 4-1     detonation.
 4-2           Sec. 161.002.  FIREWORKS SALES TAX.  (a)  A tax is imposed on
 4-3     each sale at retail of fireworks.
 4-4           (b)  The tax rate is two percent of the sale price of the
 4-5     fireworks.
 4-6           (c)  The tax imposed under this chapter is in addition to the
 4-7     tax imposed under Chapter 151.  The tax imposed by this  chapter
 4-8     does not apply to a sale unless the tax imposed under Chapter 151
 4-9     applies to the sale.
4-10           Sec. 161.003.  EXCEPTIONS TO APPLICABILITY OF CHAPTER.  This
4-11     chapter does not apply to:
4-12                 (1)  a toy pistol, toy cane, toy gun, or other device
4-13     that uses a paper or plastic cap;
4-14                 (2)  a model rocket or model rocket motor designed,
4-15     sold, and used for the purpose of propelling a recoverable aero
4-16     model;
4-17                 (3)  a propelling or expelling charge consisting of a
4-18     mixture of sulfur, charcoal, and potassium nitrate;
4-19                 (4)  a novelty or trick noisemaker;
4-20                 (5)  a pyrotechnic signaling device or distress signal
4-21     for marine, aviation, or highway use in an emergency situation;
4-22                 (6)  a fusee or railway torpedo for use by a railroad;
4-23                 (7)  the sale of a blank cartridge for use in a radio,
4-24     television, film, or theater production, for signal or ceremonial
4-25     purposes in athletic events, or for industrial purposes; or
4-26                 (8)  a pyrotechnic device for use by a military
4-27     organization.
 5-1           Sec. 161.004.  APPLICATION OF OTHER PROVISIONS OF CODE.  (a)
 5-2     Except as provided differently by this chapter:
 5-3                 (1)  the tax imposed by this chapter is  administered,
 5-4     imposed, collected, and enforced in the same manner as the tax
 5-5     under Chapter 151 is administered, imposed, collected, and
 5-6     enforced; and
 5-7                 (2)  the provisions of Chapter 151 that are applicable
 5-8     to the sales tax imposed under Subchapter C, Chapter 151, apply to
 5-9     the tax imposed by this  chapter.
5-10           (b)  A change in the law relating to the taxation of the sale
5-11     of fireworks under Chapter 151 also applies to the tax imposed by
5-12     this chapter.
5-13           Sec. 161.005.  ALLOCATION OF TAX.  The comptroller shall
5-14     allocate the revenue from taxes imposed by this chapter, other than
5-15     penalties and interest, to the rural volunteer fire department
5-16     assistance fund established by Section 614.075, Government Code.
5-17           SECTION 3.  (a)  If this Act receives the votes required by
5-18     Section 39, Article III, Texas Constitution, for an effective date
5-19     before the 91st day after the last day of the legislative session,
5-20     this Act takes effect July 1, 1999.
5-21           (b)  If this Act does not receive the votes required by
5-22     Section 39, Article III, Texas Constitution, for an effective date
5-23     before the 91st day after the last day of the legislative session,
5-24     this Act takes effect October 1, 1999.
5-25           (c)  The director of the Texas Forest Service may not grant a
5-26     request for assistance under Subchapter F, Chapter 614, Government
5-27     Code, as added by this Act, before September 1, 2000.
 6-1           SECTION 4.  The importance of this legislation and the
 6-2     crowded condition of the calendars in both houses create an
 6-3     emergency and an imperative public necessity that the
 6-4     constitutional rule requiring bills to be read on three several
 6-5     days in each house be suspended, and this rule is hereby suspended,
 6-6     and that this Act take effect and be in force according to its
 6-7     terms, and it is so enacted.