BILL ANALYSIS Ó
Bill No: SB
777
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2013-2014 Regular Session
Staff Analysis
SB 777 Author: Calderon
As Amended: April 15, 2013
Hearing Date: April 23, 2013
Consultant: Paul Donahue
SUBJECT
Fireworks
DESCRIPTION
Allows for licenses to sell fireworks during the week
before New Year's Day, and establishes a fireworks
sell-back program. Specifically, this bill:
1)Requires 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.
2)Specifies that safe and sane or federally approved
fireworks transferred to a regional collection center
shall be deemed "hazardous material" until a recognized
third party testing entity determines the seized
fireworks are either commercially viable or hazardous
waste.
3)Requires that the fireworks stored at a regional
collection facility to be subject to certain
requirements, including that they be stored for a period
of not more than 90 days.
4)Allows any fireworks deemed commercially viable to be
repackaged by the State Fire Marshal or a designated
state licensed fireworks importer or exporter, a
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wholesaler purchasing the product, the recognized third
party testing authority, or a licensed hazardous
materials or hazardous waste hauler.
5)Provides that any product deemed not commercially viable
by the third party testing authority shall be removed
from the regional collection center by the State Fire
Marshal or the Marshal's designee and transported and
disposed of within 72 hours of the determination in
accordance with existing laws relating to the
transportation and disposal of hazardous waste.
6)Defines a "recognized third party testing entity" as a
California licensed fireworks wholesaler or a California
licensed fireworks importer or exporter.
7)Authorizes, 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,
as long as the sale is authorized by an ordinance or
resolution adopted by a city, county, or fire protection
district. The ordinance or resolution may also restrict
the hours of use of the fireworks.
8)Authorizes a city, county, or fire protection district
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 amounting to a pro rata
portion of the actual and reasonable costs incurred by
the local entity for 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.
9)Specifies 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
locale in which the sale is authorized.
10)Provides that a cost recovery ordinance or resolution in
effect on or before January 1, 2015, would be authorized
to supersede the above provision.
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11)Exempts from various fees on hazardous waste: (a)
hazardous waste that results from the seizure or
destruction of illegal fireworks by the State Fire
Marshal or other authorized government fire protection
agency, and (2) a mobile fireworks treatment unit used by
the State Fire Marshal to destroy illegal fireworks.
12)Requires, on or before 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.
13)Specifies that laws requiring the Department of Motor
Vehicles to suspend the commercial license of a person
transporting dangerous fireworks do not apply to a person
with a specified, valid license issued pursuant to the
State Fireworks Law.
14)Requires the Director of Finance, for purposes of
monitoring the budgets of the Department of Forestry and
Fire Protection and the Department of Toxic Substances
Control, to create a plan for modifying the budget
process to increase efficiency and focus on accomplishing
program goals. Requires that plan to include ways to
ensure transparency about program goals, outcomes,
funding and the like.
EXISTING LAW
1)Defines "dangerous fireworks" as including firecrackers,
skyrockets and rockets, roman candles and other devices
which discharge balls of fire into the air, chasers and
other devices which dart or travel about the ground
during discharge, sparklers more than 10 inches in
length, and any fireworks tested by the State Fire
Marshal that are determined to be unsafe for use by any
person not specially qualified or trained.
2)Defines "safe and sane fireworks" as any fireworks which
do not come within the definition of "dangerous
fireworks" or "exempt fireworks."
3)Authorizes the retail sale of "safe and sane" fireworks
from June 28 to July 6, annually, pursuant to a license
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issued by the State Fire Marshal, unless prohibited or
otherwise regulated by local ordinance.
4)Requires various entities, including the State Fire
Marshal, to seize certain prohibited fireworks.
5)Requires an authority that seizes fireworks to notify the
State Fire Marshal of the seizure and provide specified
information.
6)Grants the State Fire Marshal exclusive jurisdiction
over, and requires the SFM to dispose of, fireworks, and
requires dangerous fireworks to be disposed of according
to specified procedures.
7)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.
BACKGROUND
Existing law authorizes the retail sale of safe and sane
fireworks from June 28 to July 6 annually pursuant to a
license issued by State Fire Marshal (SFM), unless
otherwise prohibited or regulated by law or ordinance. As
of last year, there were 290 communities in California that
permitted the sale and use of state-approved fireworks each
4th of July.
Sellers are first required to obtain a license, good for
one year, from the SFM and pay associated fees to the
state. Local jurisdictions may include an administrative
fee related to the processing of permits and a percentage
of gross sales collected by the jurisdiction. This is
generally used for education, over-time staffing,
enforcement duties and other fireworks related additional
activities.
Fireworks stands are generally run by non-profit groups
such as battered women's shelters, service clubs (such as
Rotary), Boy Scouts and Girl Scout troops, PTAs, Little
Leagues, and other local organizations. If an organization
is selling safe and sane fireworks without a permit the
individual or organization could face a significant fine
and possible criminal charges.
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City requirements for fireworks sale permits vary slightly
from city to city, but each applicant generally has to
comply with the same basic requirements. The non-profit
organization must obtain designation as a certified, legal
non-profit from the State of California; pay a city permit
fee and a sales booth inspection fee for building and
safety, and SFM compliance; pay an additional annual SFM
fee; show proof of insurance with various amounts of
coverage in case of property damage or injury in the
vicinity of the sales booth; obtain a sales site, usually
in a strip mall or other commercial location; take delivery
of the sales booth; attend a meeting with city officials to
learn of any annual municipal code updates or city council
policy changes relating to the sale of legal fireworks;
obtain a Seller's Permit from the Board of Equalization for
required sales tax collection; and take delivery of the
product, supply a supply a sales staff to sell the product
and determine the price they will charge for the product.
The SFM determines which fireworks are legal. The "safe and
sane" varieties carry an official SFM seal. Everything else
is classified dangerous and illegal. Reportedly, law
enforcement agencies confiscate an average of about 40,000
pounds of illegal fireworks every year.
The SFM is responsible for collecting and disposing of
unsafe fireworks. Because these fireworks contain
perchlorates, they must be disposed in a manner that meets
environmental regulations. Existing law requires the SFM to
dispose of "dangerous fireworks" within 60 days upon
receiving notification from the local jurisdictions that
seized them.
CalEPA enforcement action against State Fire Marshal : In
early 2012, the Department of Toxic Substances Control
(DTSC) commenced an administrative enforcement action
against the SFM for improper storage and disposal of seized
fireworks. The two state agencies reached a Consent
Agreement which among other things required the SFM, by a
date certain, to collect the fireworks from the local
jurisdictions and promptly destroy them. Since the consent
decree was entered into between the two agencies, DTSC has
allowed the SFM to do emergency burns of these confiscated
fireworks in Devore, CA. By late summer of 2012, they had
destroyed approximately 100,000 pounds. They have estimated
that, based upon SFM seizure forms, there is an additional
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90,000 pounds still remaining in bunkers throughout
California.
Fireworks sell-back program : The bill requires the SFM to
establish and have operational regional collection centers
for receiving seized safe and sane and federally approved
consumer fireworks by local authorities. Under existing
law, seized fireworks are deemed hazardous waste at the
point of seizure, but this bill classifies seized fireworks
as hazardous materials. Once the fireworks reach the
regional collection center, the bill authorizes the SFM to
permit a third party testing entity approved by the
Consumer Product Safety Commission to test the materials to
determine which of the fireworks are commercially viable
and which are hazardous wastes.
Materials that are not commercially viable must then be
removed from the regional center within 72 hours. Fireworks
that are determined to be commercially viable can then be
resold to the testing entity.
In order for the sell-back to take place, the SFM AND a
third party testing agency approved by the Consumer Product
Safety Commission must first test the materials to prove
that they are in fact product and not waste.
Seized fireworks that are determined not to be commercially
viable must be removed from that regional center within 72
hours after the determination.
The authorization to sell fireworks during the week leading
up to New Year's Day would become operative after the
disposal and handling protocol is in place and operational.
PRIOR/RELATED LEGISLATION
SB 1468 (R. Calderon) 2011-2012 Session. Would have
authorized the sale of "safe and sane" fireworks between
Christmas and New Year's Day in 2014-15 and 2015-16 and
provided for a two-year firework data collection effort to
be funded by voluntary contributions from the fireworks
industry. (Held in Assembly Appropriations)
AB 1371 (V. Manuel Perez) 2011-2012 Session. Would have
authorized a 5-year time frame within which the sale of
certified safe and sane fireworks was allowed between
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December 26 to midnight of January 1 of the following year,
pursuant to a license issued by the State Fire Marshal.
(Not heard)
SB 839 (R. Calderon) Chapter 563, Statutes of 2007. Revises
the penalties for possession and transportation of
dangerous fireworks, as specified. Establishes a fund from
the proceeds of all fines and fees collected in relation to
dangerous fireworks violations with those funds earmarked
for enforcement of dangerous fireworks law.
AB 1295 (Bermudez) 2005-2006 Session. Would have authorized
sale of fireworks from December 26 through January 1. Would
have required the SFM to establish and collect original and
annual renewal fees on fireworks licenses for the purposes
of covering the disposal costs associated with seized
fireworks. (Held in Assembly Appropriations)
AB 2090 (Miller) Chapter 363, Statutes of 1998. In
anticipation of the millennial celebration, the Legislature
authorized the State Fire Marshal to issue a one-time
retail license to permit the sale of certified fireworks
from December 26, 1999, until midnight of January 1, 2000.
SUPPORT:
American Promotional Events, Inc.
OPPOSE:
None on file
TRIPLE REFERRAL: Governance and Finance Committee & Rules
Committee
FISCAL COMMITTEE: Senate Appropriations Committee
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