Amended in Assembly February 4, 2014

Amended in Senate May 29, 2013

Amended in Senate May 28, 2013

Amended in Senate May 15, 2013

Amended in Senate May 7, 2013

Amended in Senate April 23, 2013

Amended in Senate April 15, 2013

Senate Bill No. 777

Introduced by Senator begin delete Calderon end delete begin insert Hernandez end insert

begin insert

(Coauthors: Senators Calderon, Cannella, Correa, Evans, Galgiani, Hancock, and Vidak)

end insert begin insert

(Coauthor: Assembly Member Chesbro)

end insert

February 22, 2013

begin delete An act to amend Sections 12556 and 12726 of, to add Sections 12599.5 and 12635.5 to, and to add Chapter 3.5 (commencing with Section 12559) to Part 2 of Division 11 of, the Health and Safety Code, and to amend Section 15301 of the Vehicle Code, relating to public safety. end delete begin insert An act to amend Section 19605.75 of, and to add Sections 19605.76, 19605.77, and 19605.78 to, the Business and Professions Code, relating to horse racing. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 777, as amended, begin delete Calderon end delete   begin insert Hernandez end insert . begin delete Public safety: fireworks. end delete begin insert Horse racing: workers’ compensation. end insert

begin insert

Until January 1, 2014, the provisions of the Horse Racing Law required a thoroughbred racing association and fair that conducts a racing meeting to deduct a percentage of the total amount handled in exotic parimutuel pools of thoroughbred racing, to be distributed to a specified organization for the purpose of defraying costs of workers’ compensation insurance in connection with thoroughbred horse racing. Until January 1, 2014, provisions of the Horse Racing Law authorized similar deductions from the total amount handled for races for quarter horses and other breeds, and for harness races, to be distributed to specified organizations for defraying workers’ compensation for trainers and owners in connection with those races.

end insert begin insert

This bill would reestablish those provisions requiring the deduction specified above to be made by a thoroughbred racing association, and would reestablish those provisions authorizing the deductions to be made for races for quarter horses and other breeds, and for harness races. Because a violation of the Horse Racing Law is generally a misdemeanor, the bill would create new crimes, thereby imposing a state-mandated local program.

end insert begin insert

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

end insert begin insert

This bill would provide that no reimbursement is required by this act for a specified reason.

end insert begin delete

Existing law authorizes the retail sale of safe and sane fireworks from June 28 to July 6, annually, pursuant to a license issued by the State Fire Marshal, unless otherwise prohibited or regulated by law or ordinance. Existing law requires various entities, including the State Fire Marshal, to seize certain prohibited fireworks. Existing law requires an authority that seizes fireworks to notify the State Fire Marshal of the seizure and provide specified information. Existing law requires the State Fire Marshal to dispose of the fireworks and requires dangerous fireworks to be disposed of according to specified procedures. Existing law requires the State Fire Marshal to acquire and use statewide mobile dangerous fireworks destruction units to collect and destroy dangerous fireworks from local and state agencies.

end delete begin delete

This bill would require the State Fire Marshal, by January 1, 2015, to establish and have operational regional collection centers for the purpose of receiving seized safe and sane and federally approved fireworks. The bill would authorize the State Fire Marshal to permit a state licensed fireworks importer and exporter or wholesaler to purchase any fireworks the State Fire Marshal, the Department of Toxic Substances Control, and a recognized 3rd-party testing entity, as defined, deem to be commercially viable, from the State Fire Marshal. The bill would require any revenue received from the sale to belong to the seizing local authority and would authorize the State Fire Marshal to enter into a revenue sharing agreement with that local authority, as provided. The bill would require the fireworks stored at the regional collection facility to be subject to certain requirements, including that they be stored for a period of not more than 90 days. The bill would require the Department of Toxic Substances Control to develop and publish guidelines for the implementation of these provisions, as provided.

end delete begin delete

This bill would authorize, beginning January 1, 2015, the sale of certified safe and sane fireworks from 9 a.m. on December 26 to 11:59 p.m. on January 1 of the following year pursuant to a license issued by the State Fire Marshal, if authorized by a charter city, city, county, fire protection district, or city and county ordinance or resolution that may also restrict the hours of use of those fireworks. Since a violation of this provision or other existing related provisions in connection with the sale of those fireworks would be a misdemeanor, the bill would impose a state-mandated local program by creating new crimes.

end delete begin delete

The bill would also authorize a charter city, city, county, fire protection district, or city and county that adopts an ordinance or resolution authorizing the sale of safe and sane fireworks to require each applicant receiving a permit to pay a fee to the charter city, city, county, fire protection district, or city and county of a pro rata portion of the actual and reasonable costs incurred by the charter city, city, county, fire protection district, or city and county for, among other things, processing and issuing fireworks permits, inspection of fireworks stands, public awareness and education campaigns regarding the safe and responsible use of safe and sane fireworks, and related fire operation and suppression efforts, as specified. The bill would specify that the pro rata portion of those costs shall be based on a percentage of the permittee’s sales and use tax return for the applicable permit period, not to exceed 7% of the gross sales of the fireworks sold in the charter city, city, county, fire protection district, or city and county, except that a cost recovery ordinance or resolution in effect on or before January 1, 2015, would be authorized to supersede that provision.

end delete begin delete

Existing law provides that if dangerous fireworks are seized pursuant to a local ordinance that provides for administrative fines or penalties and these fines or penalties are collected, the local government entity collecting the fines or penalties shall forward 65% of the collected moneys to the Controller for deposit in the State Fire Marshal Fireworks Enforcement and Disposal Fund.

end delete begin delete

This bill would delete this provision.

end delete begin delete

The bill would require, not later than January 1, 2015, the State Fire Marshal to collect and analyze data relating to fires, damages, seizures, arrests, administrative citations, and fireworks disposal issues caused by the sale and use of both dangerous illegal fireworks and safe and sane fireworks, as provided.

end delete begin delete

Existing law requires the Department of Motor Vehicles to suspend the commercial license of a person transporting dangerous fireworks, as specified.

end delete begin delete

This bill would clarify that those provisions do not apply to a person with a valid license under the State Fireworks Law, as specified.

end delete begin delete

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

end delete begin delete

This bill would provide that no reimbursement is required by this act for a specified reason.

end delete

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 19605.75 of the end insert begin insert Business and Professions
Code end insert begin insert is amended to read: end insert

19605.75.  

(a) The Legislature finds and declares that the
existence of high caliber thoroughbred racing in California is
important to this state’s agricultural economy. The California horse
racing industry is being threatened by the escalating costs of doing
business in California, including, but not limited to, workers’
compensation insurance costs, in that these costs are not only
causing thoroughbred horses and trainers to leave this state, but
are also discouraging owners and trainers from bringing horses
into this state to compete. It is the intent of the Legislature to
provide some relief from these escalating costs through the
redistribution of the parimutuel handle on exotic wagers.

(b) Notwithstanding Section 19610, every thoroughbred
association and fair that conducts a racing meet shall deduct an
additional 0.5 percent of the total amount handled in exotic
parimutuel pools of thoroughbred races.

(c) The funds collected pursuant to subdivision (b) from exotic
parimutuel pools on thoroughbred races within the inclosure of a
thoroughbred association or fair conducting a race meeting, at
satellite wagering facilities within this state, and through advance
deposit wagering by residents of this state, shall be distributed to
the organization described in subdivision (f) to be used in
accordance with subdivision (e).

(d) Any thoroughbred association or fair that authorizes a betting
system located outside of this state to accept exotic wagers on its
races and to combine those wagers in the association’s or fair’s
exotic parimutuel pools, including, but not limited to, a
multijurisdictional wagering hub as to exotic wagers made by
residents other than those of this state, shall deduct the amount
specified in subdivision (b) in addition to any other applicable
deductions specified in law. The amount deducted pursuant to this
subdivision shall be distributed to the organization described in
subdivision (f) to be used in accordance with subdivision (e). This
additional deduction shall not be included in the amount on which
license fees are determined pursuant to Section 19602.

(e) The amounts distributed to the organization described in
subdivision (f) shall be deposited by that organization in a separate
account to defray the costs of workers’ compensation insurance
incurred in connection with thoroughbred horses that race in this
state at thoroughbred associations and racing fairs through the
payment of supplemental premiums that reduce rates, payment to
or for the benefit of trainers and owners of such thoroughbreds,
based on the number of such thoroughbreds they start, in order to
reimburse them for the costs of workers’ compensation insurance
directly or indirectly incurred by them, and other appropriate
payments. Any funds that are not used for the purposes set forth
in this subdivision shall, after an affirmative vote of at least 25 of
the voting interests of the organization described in subdivision
(f), either be carried forward to the subsequent year, or be used to
reimburse racing associations for the actual cost of health and
safety programs, research or safety equipment, or making capital
improvements that are designed to prevent workplace accidents
and increase the safety of jockeys, exercise riders, backstretch
employees, and other racetrack personnel. Those capital
improvements shall include, but not be limited to, safety
improvements to racing and training surfaces. All requests for
reimbursements shall be approved by the board. In developing
proposals for approval by the board, the association shall confer
with their horsemen’s organizations and all affected labor
organizations or associations.

(f) The thoroughbred racing associations and the owners’
organization described in subdivision (b) of Section 19613 shall
form an organization to which funds shall be distributed pursuant
to subdivisions (c) and (d). This organization shall have a total of
34 voting interests, of which 16 shall be allocated to the
organization representing thoroughbred owners pursuant to Section
19613, one shall be allocated to the official registering agency for
thoroughbreds in California, and one shall be allocated to the
organization representing thoroughbred trainers pursuant to Section
19613. The remaining 16 votes shall be allocated among the
licensed racing associations and racing fairs in the state. Each
racing association and fair shall receive the portion of these
remaining votes represented by the sum of exotic wagering on its
races divided by the statewide total of exotic wagering in the
preceding calendar year, excluding begin delete Breeders end delete begin insert Breeders’ end insert Cup races.
Fractional voting shall be permitted. Any decision of this
organization with respect to the allocation of funds pursuant to
subdivisions (c) and (d) shall require the affirmative vote of 25 of
these voting interests. In the event that the required number of
affirmative votes cannot be obtained, the matter shall be submitted
to the board for a decision consistent with subdivision (e), and the
decision of the board shall be final.

(g)  begin delete (1) end delete begin delete   end delete The organization formed pursuant to this section shall
account annually to the board with respect to the expenditure and
distribution of funds received by the organization pursuant to
subdivisions (c) and (d), and shall obtain an independent audit of
fund generation and distribution. A copy of the completed audit
shall be forwarded to the board within 45 days of its receipt by the
organization.

begin delete end delete begin delete

(2) No earlier than 18 months and no later than two years
following the effective date of this section, the organization
described in subdivision (f) shall commission an independent
evaluation of the effectiveness of the distributions under this
section along with recommendations for any improvements or
modifications regarding the program created in this section. A
copy of that evaluation along with a report detailing the
organization’s response to the evaluation shall be filed with the
board within 30 days of the receipt of the final evaluation.

end delete begin delete end delete begin delete end delete begin delete

(h) Between January 1, 2014, and July 1, 2014, any unexpended
funds collected under this section shall be distributed to
organizations formed and operated pursuant to Sections 19607 and
19607.2 based upon the total thoroughbred handle in their
respective zones in the year 2013.

end delete begin delete end delete begin delete end delete begin delete

(i) Except for subdivision (h), this section shall become
inoperative on January 1, 2014, and as of January 1, 2015, this
entire section is repealed, unless a later enacted statute, that is
enacted before January 1, 2015, deletes or extends that date.

end delete begin delete end delete

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 19605.76 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 19605.76. end insert   

(a) Notwithstanding Section 19610, a quarter horse
racing association may deduct an additional 0.5 percent of the
total amount handled in its exotic parimutuel pools. This additional
deduction shall only be permitted with the approval of the
organization representing quarter horsemen and horsewomen at
the applicable racing association meet.

(b) Any funds collected pursuant to subdivision (a) from exotic
parimutuel pools on races within the inclosure of a racetrack, at
satellite wagering facilities within this state, and through advance
deposit wagering by residents of this state, shall be distributed to
the organization described in subdivision (e) to be used in
accordance with subdivision (d).

(c) Any quarter horse racing association that authorizes a
betting system located outside of this state to accept exotic wagers
on its races and to combine those wagers in the association’s exotic
parimutuel pools, including, but not limited to, a multijurisdictional
wagering hub as to exotic wagers made by residents other than
those of this state, may deduct the amount specified in subdivision
(a) in addition to any other applicable deductions specified in law.
Any amount deducted pursuant to this subdivision shall be
distributed to the organization described in subdivision (e) to be
used in accordance with the provisions of subdivision (d). This
additional deduction shall not be included in the amount on which
license fees are determined pursuant to Section 19602.

(d) The amounts distributed to the organization described in
subdivision (e) shall be deposited by that organization in a separate
account to defray workers’ compensation insurance costs for
trainers and owners who are racing horses at the applicable
quarter horse racing association meet. Any funds not expended
for this purpose in the calendar year in which they are collected
may either be used for the following year’s workers’ compensation
costs, as specified above, or to benefit the purse pools at the track
where the funds are generated. Funds to benefit purse pools shall
be allocated by breed, in the same proportions as each breed
generated in deductions under this section at the track in the year
the funds were collected.

(e) The quarter horse racing association and the organization
representing quarter horsemen and horsewomen shall form an
organization to which any funds deducted pursuant to subdivisions
(b) and (c) shall be distributed. The quarter horse associations
collectively shall have representation equal to that of the
organization representing quarter horsemen and horsewomen on
the governing board of the organization formed pursuant to this
subdivision.

(f) If the quarter horse racing association and the organization
representing quarter horsemen and horsewomen cannot agree on
the manner for distributing these funds to defray the costs of
workers’ compensation insurance, the matter shall be submitted
to the board for a decision consistent with subdivision (d), and the
decision of the board shall be final.

end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 19605.77 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 19605.77. end insert   

(a) Notwithstanding Section 19610, a harness racing
association may deduct an additional 1 percent of the total amount
handled in conventional parimutuel pools of harness races. This
additional deduction shall only be permitted with the approval of
the organization representing harness horsemen and horsewomen
at the applicable racing association meeting.

(b) Any funds collected pursuant to subdivision (a) from
conventional parimutuel pools on harness races within the
inclosure of a racetrack, at satellite wagering facilities within this
state, and through advance deposit wagering by residents of this
state, shall be distributed to the organization described in
subdivision (e) to be used in accordance with subdivision (d).

(c) Any harness racing association that authorizes a betting
system located outside of this state to accept conventional wagers
on its races and to combine those wagers in the association’s
conventional parimutuel pools, including, but not limited to, a
multijurisdictional wagering hub as to conventional wagers made
by residents other than those of this state, may deduct the amount
specified in subdivision (a) in addition to any other applicable
deductions specified in law. Any amount deducted pursuant to this
subdivision shall be distributed to the organization described in
subdivision (e) to be used in accordance with the provisions of
subdivision (d). This additional deduction shall not be included
in the amount on which license fees are determined pursuant to
Section 19602.

(d) The amounts distributed to the organization described in
subdivision (e) shall be deposited by that organization in a separate
account and used to reduce the workers’ compensation insurance
costs for trainers who are racing horses at the applicable harness
racing association meet. Any funds not expended for this purpose
in the calendar year in which they are collected may either be used
for the following year’s workers’ compensation costs, as specified
above, or to benefit the harness purse pool at the track where the
funds are generated.

(e) The harness racing association and the organization
representing harness horsemen and horsewomen shall form an
organization to which any funds deducted pursuant to subdivisions
(b) and (c) shall be distributed. The harness associations
collectively shall have representation equal to that of the
organization representing harness horsemen and horsewomen on
the governing board of the organization formed pursuant to this
subdivision.

(f) If the harness racing association and the organization
representing harness horsemen and horsewomen cannot agree on
the manner for distributing these funds to defray the costs of
workers’ compensation insurance, the matter shall be submitted
to the board for a decision consistent with subdivision (d), and the
decision of the board shall be final.

end insert

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 19605.78 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 19605.78. end insert   

(a) Notwithstanding Section 19610 and in addition
to the deduction specified in subdivision (b) of Section 19605.75,
a fair may deduct an additional 0.5 percent of the total amount
handled in exotic parimutuel pools of races for any breed, other
than races solely for thoroughbreds. This additional deduction
shall only be permitted for a breed’s races with the approval of
the organization representing the horsemen and horsewomen of
that breed at the fair.

(b) Any funds collected pursuant to subdivision (a) from exotic
parimutuel pools on races within the inclosure of a racetrack, at
satellite wagering facilities within this state, and through advance
deposit wagering by residents of this state, shall be distributed to
the organization described in subdivision (e) to be used in
accordance with subdivision (d).

(c) Any fair that authorizes a betting system located outside of
this state to accept exotic wagers on its races and to combine those
wagers in the association’s exotic parimutuel pools, including,
but not limited to, a multijurisdictional wagering hub as to exotic
wagers made by residents other than those of this state, may deduct
the amount specified in subdivision (a) in addition to any other
applicable deductions specified in law. Any amount deducted
pursuant to this subdivision shall be distributed to the organization
described in subdivision (e) to be used in accordance with the
provisions of subdivision (d). This additional deduction shall not
be included in the amount on which license fees are determined
pursuant to Section 19602.

(d) The amounts distributed to the organization described in
subdivision (e) shall be deposited by that organization in a separate
account to defray workers’ compensation insurance costs for
trainers and owners who are racing breeds other than
thoroughbreds at the applicable fair. Any funds not expended for
this purpose in the calendar year in which they are collected may
either be used for the following year’s workers’ compensation
costs, as specified above, or to benefit the purse pool of each breed
at the particular fair where the funds are generated in the same
proportions as each breed generated at that fair in the year the
funds are collected.

(e) The fairs and the organizations representing the horsemen
and horsewomen of each breed for which deductions have been
approved under subdivision (a) shall form an organization to
which any funds deducted pursuant to subdivisions (b) and (c)
shall be distributed. The fairs collectively shall have representation
equal to the collective representation of the organizations
representing horsemen and horsewomen on the governing board
of the organization formed pursuant to this subdivision.

(f) If the fairs and the organizations representing horsemen and
horsewomen cannot agree on the manner for distributing these
funds to defray the costs of workers’ compensation insurance, the
matter shall be submitted to the board for a decision consistent
with subdivision (d), and the decision of the board shall be final.

end insert

begin insert

begin insert SEC. 5. end insert   

end insert begin insert

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.

end insert

begin delete

  

SECTION 1.  

Section 12556 of the Health and Safety Code is
amended to read:

12556.  

(a) In addition to the obligations described in Section
13110.5, on or before July 1, 2008, the State Fire Marshal shall
identify and evaluate methods to capture more detailed data relating
to fires, damages, and injuries caused by both dangerous fireworks
and safe and sane fireworks. These evaluation methods shall
include a cost analysis related to capturing and reporting the data
and shall meet or exceed the specificity, detail, and reliability of
the data captured under the former California Fire Incident
Reporting System (CFIRS). The State Fire Marshal shall furnish
a copy of these evaluation methods to any interested person upon
request.

(b) Not later than January 1, 2015, the State Fire Marshal shall
collect and analyze data relating to fires, damages, seizures, arrests,
administrative citations, and fireworks disposal issues caused by
the sale and use of both dangerous illegal fireworks and safe and
sane fireworks. The State Fire Marshal shall collect data pursuant
to a methodology developed in consultation with the State Fire
Marshal’s General Fireworks Advisory Committee, which consists
of representatives from local fire service and law enforcement
agencies and the fireworks industry.

SEC. 2.  

Chapter 3.5 (commencing with Section 12559) is added
to Part 2 of Division 11 of the Health and Safety Code, to read:

 

Chapter  3.5. Fireworks Sell-Back Program

 

12559.  

(a) By January 1, 2015, the State Fire Marshal shall
establish and have operational regional collection centers for
purposes of receiving safe and sane fireworks and federally
approved consumer fireworks seized by local authorities.

(b) The regional collection centers shall be located throughout
the state in an amount and in locations determined by the State
Fire Marshal.

12559.1.  

(a) Notwithstanding Section 12723, and upon
compliance with Section 12726, a local authority or the State Fire
Marshal may transfer seized safe and sane fireworks and federally
approved fireworks to a regional collection center. Any fireworks
transferred pursuant to this subdivision shall remain under the
ownership of the seizing local authority.

(b) Safe and sane or federally approved fireworks transferred
to a regional collection center shall be deemed “hazardous material”
until the State Fire Marshal, Department of Toxic Substances
Control, and a recognized third-party testing entity make the
determination pursuant to subdivision (c).

(c) (1) The State Fire Marshal is authorized to permit a
recognized third-party testing entity to enter the regional collection
center for purposes of making a determination with the State Fire
Marshal and the Department of Toxic Substances Control as to
whether any seized fireworks are either commercially viable or
hazardous waste.

(2) Any firework deemed commercially viable may be
repackaged by the State Fire Marshal or the State Fire Marshal’s
designee, including, but not limited to, a state licensed fireworks
importer and exporter, a wholesaler purchasing the product
pursuant to subdivision (d), the recognized third-party testing
authority, or a licensed hazardous materials or hazardous waste
hauler.

(3) Any product deemed not commercially viable by the State
Fire Marshal, the Department of Toxic Substances Control, and
the third-party testing authority shall be removed from the regional
collection center by the State Fire Marshal or the State Fire
Marshal’s designee and transported and disposed of within 72
hours of the determination in accordance with all federal and state
hazardous waste laws and regulations.

(d) (1) The State Fire Marshal shall authorize a state licensed
fireworks importer and exporter or wholesaler to purchase any
fireworks deemed to be commercially viable pursuant to
subdivision (c) from the State Fire Marshal. Revenue received
from the sale shall belong to the seizing local authority.

(2) The State Fire Marshal may enter into an agreement with a
local authority for purposes of sharing revenue from the sale of
fireworks pursuant to paragraph (1). The agreement shall allocate
no less than 65 percent of the revenues to that local authority with
the balance going to the state.

(e) For purposes of this section, “recognized third-party testing
entity” means an independent third-party testing entity recognized
by the federal Consumer Product Safety Commission as an
acceptable testing entity for consumer fireworks.

(f) Upon the purchase of fireworks, pursuant to this chapter, a
state-licensed fireworks importer and exporter or wholesaler shall
accept full liability for any damage done by the fireworks and the
State of California shall be indemnified.

12559.2.  

Any fireworks stored at a regional collection center
shall be subject to the requirements of Article 8 (commencing with
Section 989) of Chapter 6 of Title 19 of the California Code of
Regulations and to the requirements of the National Fire Protection
Association (NFPA) 1124: Code for the Manufacture,
Transportation, Storage, and Retail Sales of Fireworks and
Pyrotechnic Articles of 2013, and may be stored for a period not
to exceed 90 days. The regional collection centers shall not be
considered a storage facility for purposes of subdivision (b) of
Section 25123.3.

12559.3.  

(a) The State Fire Marshal and the Department of
Toxic Substances Control shall train local fire and law enforcement
personnel on the requirements of this chapter.

(b) The State Fire Marshal shall, in consultation with relevant
state and local public agencies, the fireworks industry, and other
relevant stakeholders, develop, publish, and provide necessary
guidance and training to local agencies that seize, collect, transport,
store, and treat seized fireworks. This training and education may
include, but is not limited to, the following specific areas:

(1) Standards for the transportation, storage, and handling of
fireworks and pyrotechnic articles in accordance with Chapter 6
(commencing with Section 975) of Division 1 of Title 19 of the
California Code of Regulations and the National Fire Protection
Association (NFPA) 1124: Code for the Manufacture,
Transportation, Storage, and Retail Sales of Fireworks and
Pyrotechnic Articles of 2013.

(2) Recognition of explosive materials and isolation procedures
in accordance with Chapter 10 (commencing with Section 1550)
of Division 1 of Title 19 of the California Code of Regulations
and the National Fire Protection Association (NFPA) 495:
Explosive Materials Code of 2013.

(3) Recognition of commercial, consumer, and illegal fireworks
in accordance with Chapter 6 (commencing with Section 975) of
Division 1 of Title 19 of the California Code of Regulations and
the National Fire Protection Association (NFPA) 1124: Code for
the Manufacture, Transportation, Storage, and Retail Sales of
Fireworks and Pyrotechnic Articles of 2013.

12559.4.  

The Department of Toxic Substances Control shall
develop and publish guidelines for the implementation of this
chapter that includes, but is not limited to, the following specific
areas:

(a) Standards for the proper handling, transport, and storage of
fireworks that are hazardous materials for the purposes of this
chapter.

(b) Standards for the proper handling, transport, and disposal
of fireworks that are hazardous waste.

(c) A determination of the type of facility that qualifies as a
regional collection center.

(d) A definition of “commercially viable” for the purposes of
this chapter that ensures that fireworks that should be disposed of
as waste are not resold.

SEC. 3.  

Section 12599.5 is added to the Health and Safety
Code, to read:

12599.5.  

(a) Notwithstanding Sections 12599 and 12672, the
State Fire Marshal shall issue separate one-time retail licenses
pursuant to this section that shall authorize the retail sale of safe
and sane fireworks within this state only from 9 a.m. on December
26 to 11:59 p.m. on January 1 of the following year, inclusive. A
license issued pursuant to this section shall be valid for only one
seven-day period and shall expire at the end of the period for which
it is valid. All fireworks sold pursuant to a license issued pursuant
to this section shall have been certified as safe and sane by the
State Fire Marshal on or before June 15 of the year in which the
validity of the license commences. No other license issued pursuant
to this chapter shall authorize the sale of fireworks during that
period.

(b) A retail license shall not be issued for the license period
authorized by this section unless the charter city, city, county, fire
district, or city and county having jurisdiction over the fixed
location where the fireworks would be sold adopts an ordinance
or resolution allowing that sale, and the application for that license
is received by the State Fire Marshal on or before December 15
of the year in which the validity of the license is to commence.
The ordinance or resolution authorizing the sale of those fireworks
may limit the period of use of those fireworks to specified days
and hours within the period during which the sale is authorized by
this section.

(c) This section shall become operative on January 1, 2015.

SEC. 4.  

Section 12635.5 is added to the Health and Safety
Code, to read:

12635.5.  

(a) A charter city, city, county, fire protection district,
or city and county that adopts an ordinance or resolution pursuant
to Section 12599 or 12599.5 may, through adoption of an ordinance
or resolution by the governing body, require each applicant
receiving a permit to pay a fee to the charter city, city, county, fire
district, or city and county of a pro rata portion of the actual and
reasonable costs the charter city, city, county, fire protection
district, or city and county incurs that is related to any of the
following:

(1) Processing and issuing permits.

(2) Inspection of fireworks stands.

(3) Public education and awareness campaigns regarding the
safe and responsible use of safe and sane fireworks, and the dangers
and risks posed by the use of illegal fireworks.

(4) Enforcing the provisions of the code of the charter city, city,
county, fire protection district, or city and county with respect to
the sale and use of safe and sane fireworks, including extra
personnel time and cleanup of the fireworks trash and debris. “Extra
personnel time” means employee or contracted employee time that
the charter city, city, county, fire protection district, or city and
county would not otherwise incur but for the sale and use of safe
and sane fireworks.

(5) Fire operation and suppression efforts that are directly related
to safe and sane fireworks.

(b) The pro rata share of the costs shall be specified in the
ordinance or resolution and calculated using gross sales as shown
on each permittee’s sales and use tax return for the applicable
period. The pro rata share of costs shall not exceed 7 percent of
the gross sales of the fireworks sold in the charter city, city, county,
fire protection district, or city and county during the applicable
period. A cost recovery ordinance or resolution in effect on or
before January 1, 2015, may supersede this subdivision.

SEC. 5.  

Section 12726 of the Health and Safety Code is
amended to read:

12726.  

(a) The dangerous fireworks seized pursuant to this
part shall be disposed of by the State Fire Marshal in the manner
prescribed by the State Fire Marshal at any time after the final
determination of proceedings under Section 12724, or upon final
termination of proceedings under Section 12593, whichever is
later. If no proceedings are commenced pursuant to Section 12724,
the State Fire Marshal may dispose of the fireworks after all of the
following requirements are satisfied:

(1) A random sampling of the dangerous fireworks has been
taken, as defined by regulations adopted by the State Fire Marshal
pursuant to Section 12552.

(2) The analysis of the random sampling has been completed.

(3) Photographs have been taken of the dangerous fireworks to
be destroyed.

(4) The State Fire Marshal has given written approval for the
destruction of the dangerous fireworks. This approval shall specify
the total weight of the dangerous fireworks seized, the total weight
of the dangerous fireworks to be destroyed, and the total weight
of the dangerous fireworks not to be destroyed.

(b) To carry out the purposes of this section, the State Fire
Marshal shall acquire and use statewide mobile dangerous
fireworks destruction units to collect and destroy seized dangerous
fireworks from local and state agencies.

SEC. 6.  

Section 15301 of the Vehicle Code is amended to read:

15301.  

(a) The Department of Motor Vehicles, in conjunction
with the State Fire Marshal, shall develop regulations and
procedures to temporarily suspend the commercial motor vehicle
license of a person who is operating a commercial motor vehicle
while transporting dangerous fireworks having a gross weight of
10,000 pounds or more.

(b) A driver of a commercial motor vehicle shall not operate a
commercial motor vehicle for three years if the driver is convicted
of transporting dangerous fireworks having a gross weight of
10,000 pounds or more.

(c) This section shall not apply to a person who holds and is
operating within the scope of a valid license as described in Section
12516 of the Health and Safety Code or valid permit as described
in Section 12522 of the Health and Safety Code.

SEC. 7.  

The provisions of this act are severable. If any
provision of this act or its application is held invalid pursuant to
the federal Resource Conservation and Recovery Act, that
invalidity shall not affect other provisions or applications that can
be given effect without the invalid provision or application.

SEC. 8.  

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.

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