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.
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