1-1 By: Cook, et al. (Senate Sponsor - Armbrister) H.B. No. 2107 1-2 (In the Senate - Received from the House April 23, 1999; 1-3 April 26, 1999, read first time and referred to Committee on 1-4 Finance; May 6, 1999, reported favorably, as amended, by the 1-5 following vote: Yeas 8, Nays 0; May 6, 1999, sent to printer.) 1-6 COMMITTEE AMENDMENT NO. 1 By: Lindsay 1-7 On page 1, beginning on line 45, amend HB 2107 by deleting Section 1-8 614.072(c)(1) and substituting the following: 1-9 (1) determine reasonable criteria and qualifications for the 1-10 distribution of money from the rural volunteer fire department 1-11 assistance fund, providing that no volunteer fire department may be 1-12 denied assistance from the fund if it already receives funds from a 1-13 political subdivision. 1-14 A BILL TO BE ENTITLED 1-15 AN ACT 1-16 relating to assistance to certain volunteer fire departments and to 1-17 the imposition of a tax to finance that assistance. 1-18 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-19 SECTION 1. Chapter 614, Government Code, is amended by 1-20 adding Subchapter F to read as follows: 1-21 SUBCHAPTER F. RURAL VOLUNTEER FIRE DEPARTMENT ASSISTANCE PROGRAM 1-22 Sec. 614.071. DEFINITIONS. In this subchapter: 1-23 (1) "Director" means the director of the Texas Forest 1-24 Service of The Texas A&M University System. 1-25 (2) "Fund" means the rural volunteer fire department 1-26 assistance fund. 1-27 (3) "Program" means the Rural Volunteer Fire 1-28 Department Assistance Program. 1-29 (4) "Service" means the Texas Forest Service of The 1-30 Texas A&M University System. 1-31 (5) "Volunteer fire department" means a fire 1-32 department operated by its members that is operated on a 1-33 not-for-profit basis, including a department that is exempt from 1-34 federal income tax under Section 501(a), Internal Revenue Code of 1-35 1986, by being listed as an exempt organization in Section 1-36 501(c)(3) of that code. 1-37 Sec. 614.072. ADMINISTRATION OF PROGRAM. (a) The Texas 1-38 Forest Service shall administer the volunteer fire department 1-39 assistance program established under this subchapter, and the 1-40 director may adopt rules necessary to assist rural volunteer fire 1-41 departments in paying for equipment and training of personnel. 1-42 (b) The service may employ staff to administer the program. 1-43 (c) The director shall, in consultation with the advisory 1-44 committee: 1-45 (1) determine reasonable criteria and qualifications 1-46 for the distribution of money from the rural volunteer fire 1-47 department assistance fund; and 1-48 (2) establish a procedure for reporting and processing 1-49 requests for money from the fund. 1-50 (d) The director shall prepare an annual written report on 1-51 the activity, status, and effectiveness of the fund and shall 1-52 submit the report to the lieutenant governor, the speaker of the 1-53 house of representatives, and the comptroller before September 1 of 1-54 each year. 1-55 (e) Any assistance or benefits provided under this 1-56 subchapter to a volunteer fire department or a firefighter who is a 1-57 member of a volunteer fire department may not be considered 1-58 compensation, and a firefighter receiving assistance under this 1-59 subchapter may not be considered to be in the paid service of any 1-60 governing body. 1-61 (f) Administration costs associated with the program during 1-62 a state fiscal year may not exceed seven percent of the total 1-63 revenue collected from the tax imposed under Chapter 161, Tax Code, 2-1 during the previous fiscal year. 2-2 Sec. 614.073. ADVISORY COMMITTEE. (a) The director shall 2-3 appoint an advisory committee to advise the director in regard to 2-4 the administration of the program. 2-5 (b) The advisory committee consists of five members, two of 2-6 whom must be members of the Texas Rural Fire Advisory Council, two 2-7 of whom must be elected county officials, and one of whom must be 2-8 an elected representative of a municipality with a population of 2-9 10,000 or less. The director must appoint the members as follows: 2-10 (1) one member from the north region of the state; 2-11 (2) one member from the south region of the state; 2-12 (3) one member from the east region of the state; 2-13 (4) one member from the west region of the state; and 2-14 (5) one member from the central region of the state. 2-15 Sec. 614.074. REQUESTS FOR ASSISTANCE. (a) A request for 2-16 assistance from the fund shall be submitted to the director. 2-17 (b) On receiving a request for assistance, the director 2-18 shall determine whether to provide assistance and the amount of the 2-19 assistance to be provided, if any, based on the criteria developed 2-20 in consultation with the advisory committee under Section 614.072. 2-21 A written copy of the decision shall be sent to the requestor and 2-22 each member of the advisory committee. 2-23 Sec. 614.075. FUND. (a) The rural volunteer fire 2-24 department assistance fund is an account in the general revenue 2-25 fund and is composed of money collected under Chapter 161, Tax 2-26 Code, and contributions to the fund from any other source. 2-27 (b) Money in the fund may be used only for a purpose under 2-28 this subchapter. 2-29 SECTION 2. Subtitle E, Title 2, Tax Code, is amended by 2-30 adding Chapter 161 to read as follows: 2-31 CHAPTER 161. FIREWORKS TAX 2-32 Sec. 161.001. DEFINITION. In this chapter, "fireworks" 2-33 means any composition or device that is designed to produce a 2-34 visible or audible effect by combustion, explosion, deflagration, 2-35 or detonation that is classified as Division 1.4G explosives by the 2-36 United States Department of Transportation in 49 C.F.R. Part 173 as 2-37 of September 1, 1999. 2-38 Sec. 161.002. FIREWORKS SALES TAX. (a) A tax is imposed on 2-39 each sale at retail of fireworks. 2-40 (b) The tax rate is two percent of the sale price of the 2-41 fireworks. 2-42 (c) The tax imposed under this chapter is in addition to the 2-43 tax imposed under Chapter 151. The tax imposed by this chapter 2-44 does not apply to a sale unless the tax imposed under Chapter 151 2-45 applies to the sale. 2-46 Sec. 161.003. APPLICATION OF OTHER PROVISIONS OF CODE. (a) 2-47 Except as provided differently by this chapter: 2-48 (1) the tax imposed by this chapter is administered, 2-49 imposed, collected, and enforced in the same manner as the tax 2-50 under Chapter 151 is administered, imposed, collected, and 2-51 enforced; and 2-52 (2) the provisions of Chapter 151 that are applicable 2-53 to the sales tax imposed under Subchapter C, Chapter 151, apply to 2-54 the tax imposed by this chapter. 2-55 (b) A change in the law relating to the taxation of the sale 2-56 of fireworks under Chapter 151 also applies to the tax imposed by 2-57 this chapter. 2-58 Sec. 161.004. ALLOCATION OF TAX. The comptroller shall 2-59 allocate the revenue from taxes imposed by this chapter, other than 2-60 penalties and interest, to the rural volunteer fire department 2-61 assistance fund established by Section 614.075, Government Code. 2-62 SECTION 3. (a) If this Act receives the votes required by 2-63 Section 39, Article III, Texas Constitution, for an effective date 2-64 before the 91st day after the last day of the legislative session, 2-65 this Act takes effect July 1, 1999. 2-66 (b) If this Act does not receive the votes required by 2-67 Section 39, Article III, Texas Constitution, for an effective date 2-68 before the 91st day after the last day of the legislative session, 2-69 this Act takes effect October 1, 1999. 3-1 (c) The director of the Texas Forest Service may not grant a 3-2 request for assistance under Subchapter F, Chapter 614, Government 3-3 Code, as added by this Act, before September 1, 2000. 3-4 SECTION 4. The importance of this legislation and the 3-5 crowded condition of the calendars in both houses create an 3-6 emergency and an imperative public necessity that the 3-7 constitutional rule requiring bills to be read on three several 3-8 days in each house be suspended, and this rule is hereby suspended, 3-9 and that this Act take effect and be in force according to its 3-10 terms, and it is so enacted. 3-11 * * * * *