BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 777|
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THIRD READING
Bill No: SB 777
Author: Calderon (D)
Amended: 5/29/13
Vote: 21
SENATE GOVERNMENTAL ORGANIZATION COMMITTEE : 10-0, 4/23/13
AYES: Wright, Nielsen, Calderon, Cannella, Correa, De León,
Galgiani, Hernandez, Lieu, Padilla
NO VOTE RECORDED: Berryhill
SENATE GOVERNANCE & FINANCE COMMITTEE : 6-0, 5/1/13
AYES: Wolk, Knight, DeSaulnier, Emmerson, Hernandez, Liu
NO VOTE RECORDED: Beall
SENATE APPROPRIATIONS COMMITTEE : 5-0, 5/23/13
AYES: De León, Hill, Lara, Padilla, Steinberg
NO VOTE RECORDED: Walters, Gaines
SUBJECT : Fireworks
SOURCE : American Promotional Events, Inc.
DIGEST : This bill creates a fireworks sell-back program;
allows for licenses to sell fireworks during the week before New
Year's Day; allows local governments to impose permit fees on
fireworks retailers; requires data collection related to
fireworks; exempts people transporting fireworks pursuant to a
valid permit or license from specified sanctions; enacts
fireworks-related program evaluation and performance measurement
requirements; and specifies how revenues from seized fireworks
CONTINUED
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are shared between the state and a seizing local authority.
Senate Floor Amendments of 5/29/13 (1) specify that a seizing
local authority retains ownership of fireworks that are
transferred to a regional collection center and that revenues
received from the sale of those fireworks belong to the seizing
local authority; (2) delete language requiring the State Fire
Marshal (SFM) to allocate revenues from seized fireworks; (3)
clarify that revenues are shared pursuant to an agreement which
must allocate no less than 65% of the revenues to the authority
with the balance going to the state; and (4) remove the
appropriation from this bill.
ANALYSIS :
Existing law:
1.Establishes comprehensive rules governing the use,
manufacture, import, export, and sale of fireworks.
2.Defines "dangerous fireworks" and "exempt fireworks." "Safe
and sane" fireworks are any fireworks which do not come within
the definition of "dangerous fireworks" or "exempt fireworks."
3.Requires various entities, including the SFM, to seize certain
prohibited fireworks and requires an authority that seizes
fireworks to notify the SFM of the seizure and provide
specified information. The law requires the SFM to dispose
of, fireworks, and specifies procedures for disposing of
dangerous fireworks.
4.Authorizes the SFM to license retailers to sell certified
"safe and sane" fireworks from June 28 to July 6 each year,
unless otherwise prohibited by local ordinance.
This bill amends state law governing fireworks. Specifically,
this bill:
1. Requires the SFM, by January 1, 2015, to establish regional
collection centers to receive "safe and sane" fireworks and
federally approved consumer fireworks seized by local
authorities. The collection centers must be located
throughout the state in locations determined by the SFM.
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2. Allows a local authority or the SFM to transfer seized "safe
and sane" fireworks and federally approved fireworks to a
regional collection center, which are to remain under the
ownership of the seizing local authority. Requires that
fireworks transferred to a regional collection center must be
deemed "hazardous material" until the SFM, the Department of
Toxic Substances Control (DTSC), and a recognized third-party
testing entity makes a determination regarding the fireworks'
commercial viability.
3. Allows the SFM to permit a recognized third-party testing
entity to determine, with the SFM and DTSC, whether any
seized fireworks are either commercially viable or hazardous
waste. Any firework deemed commercially viable may be
repackaged by the SFM or the SFM's designee, including a
state licensed fireworks importer or exporter, a wholesaler
purchasing the product pursuant to state law, the recognized
third-party testing authority, or a licensed hazardous
materials or hazardous waste hauler. Requires the removal of
any product, deemed not commercially viable by the SFM, DTSC,
and third-party testing authority, from the regional
collection center by the SFM or the SFM's designee and
transported and disposed of within 72 hours of the
determination in accordance with all federal and state
hazardous waste laws regulations.
4. Requires the SFM to authorize a state-licensed fireworks
importer and exporter to purchase fireworks deemed to be
commercially viable from the SFM. Revenue received from the
sale belongs to the seizing authority.
5. Allows the SFM to enter into an agreement with a local
authority to share revenue from the sale of fireworks.
Allocates no less than 65% of the revenues to that local
authority with the balance going to the state.
6. Defines "recognized third-party testing entity" as an
independent testing entity recognized by the Federal Consumer
Product Safety Commission as an acceptable testing entity for
consumer fireworks.
7. Provides that, upon purchase of fireworks, a state-licensed
fireworks importer and exporter or wholesaler shall accept
full liability for any damage done by the fireworks and the
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state shall be indemnified.
8. Requires fireworks stored at a regional collection center to
be subject to specified state laws and national guidelines;
and prohibits fireworks from being stored at a collection
center for more than 90 days.
9. Deems the regional collection centers to be exempt
facilities under specified provision of state law.
10.Requires the SFM and DTSC to train local fire and law
enforcement personnel on the bill's requirements and to
develop, publish, and provide guidance and training to local
agencies that seize, collect, transport, store, and treat
seized fireworks.
11.Requires the DTSC to develop and publish guidelines for the
implementation of this bill 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; (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; and (d) a
definition of "commercially viable" that ensures that
fireworks that should be disposed of as waste are not resold.
12.Requires the SFM, after January 1, 2015, to issue separate
one-time retail licenses authorizing the retail sale of "safe
and sane" fireworks within California from 9 a.m. on December
26 to 11:59 p.m. on January 1 of the following year,
inclusive.
13.Allows the governing body of a charter city, city, county,
fire district, or city and county that adopts an ordinance or
resolution authorizing fireworks sales to adopt an ordinance
or resolution requiring each applicant receiving a permit to
pay a fee to the charter city, city, county, fire district,
or city and county.
14.Requires that the pro rata share of the costs must be
determined using gross sales as shown on each permittee's
sales and use tax return for the applicable period.
Prohibits the pro rata share of costs from exceeding 7% of
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the gross sales of the fireworks sold in the charter city,
city, county, fire 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 these
requirements.
15.Requires the SFM, no later than January 1, 2015, 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.
16.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 or permit issued pursuant to
the State Fireworks Law.
17.Adds a severability clause providing that if any provisions
of this bill 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.
Background
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.
Cal/EPA enforcement action against SFM . In early 2012, the 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 the City of Devore. By late
Summer 2012, they had destroyed approximately 100,000 pounds.
They have estimated that, based upon SFM seizure forms, an
additional 90,000 pounds still remain in bunkers throughout
California.
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FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: Yes
According to the Senate Appropriations Committee:
Unknown costs, likely in the hundreds of thousands of dollars
(General Fund) to the SFM for data collection and analysis.
One-time costs of approximately $550,000 Hazardous Waste
Control Account (special fund/General Fund) to DTSC for
regulations which may be offset by hundreds of thousands of
dollars in fee revenue.
Ongoing costs of approximately $480,000 Hazardous Waste
Control Account to DTSC ongoing training which may be offset
in low hundreds of thousands of dollars in fee revenue.
Unknown revenues from the sale of seized revenues, of which at
least 65% must be given to the locals.
SUPPORT : (Verified 5/28/13)
American Promotional Events, Inc. (source)
020 Squad Club
American Cancer Society / Relay for Life
American Legion Post #832
Annunciation Dance Support
Antelope Band Boosters
Antelope Road Christian Fellowship
Atkinson Youth Services
Bella Vista High Band Boosters
Beta Omega Phi
Bradshaw Christian School
Breakfast Optimist Club
Buena Park First Church of the Nazarene
California Association of Non Profits
Calvary Evangelism Center
Camellia Assembly #108
Capital Christian Center
Capitol Strokers
Century Chapel C.M.E
Chicano Correctional Workers Association of Sacramento
Church of the Harvest
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Cibara Shrine Motor Corps
Clovis High Instrumental Music Program
College Glen Little League
Cosumnes Oaks High School Wolfpack Booster Club
Cristo Rey High School
Crosspointe Church
E. Clampus Vitus
El Camino Cross Country
El Camino High School Football
El Shaddai World Evangelism
Elk Grove Elks Lodge
Elk Grove Piranhas
Enlightened Minds Group Inc.
First Apostolic Church
First Gospel Assembly of Sacramento
Florin High School Band Boosters
Florin High School Pigskin Boosters
Florin Historical Society
Fort Sutter Racing Pigeon Club
Friends of Families
Golden State Lions Club
Greater Sacramento Urban League
Hmong Christian Church
Hope United Methodist Church
International Life Saving
Jesuit High Boosters Club
Job's Daughters Bethel #291
Job's Daughters International Bethel #292
Kennedy High School Athletic Boosters
Kennedy High School Athletics/Activities
Kennedy Marching Band
Knights of Columbus #3668, #4443, #4964, #6922, and #11236
Ladies of Charity
Liberty Ministries
Light of the World
Living Hope Christian Center
Love Inc.
Macedonia Baptist Church
Manna Ministries
McClatchy High School Music Boosters
Mesa Verde High School Boosters
Modified Motorcycle Association of Elk Grove
Mustard Seed Faith Ministries
Natomas JR Nighthawks
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New Life Community Church
New Life Worship Center
North Natomas Little League
Paradise Baptist Church
Peace Presbyterian Church
People of Purpose
Pleasant Grove High School Athletics
Rancho Cordova Methodist Men's Program
Riverside Wesleyan Church
Robla Education Foundation
Rosemont High School Music Boosters
Rosemont Little League
Sac Town Swim Team
Sacramento Consolidated Charities
Sacramento Dream Center
Sacramento High Athletic Booster Club
Sacramento Raiders Youth Organization
Sacramento Sheriff Toy Project
Sacramento Warlords
Sacramento Youth Band
Sheldon High School Boys Basketball
Shepherd of Life Missionary
Smooth Sports Association
Soledad Apostolic Church
South Sacramento Aglow
St. Francis Cross Country
St. Jude Christian Tabernacle
St. Luke's Lutheran Church
St. Mary Queen of Apostles Council #12555
St. Mary's Episcopal Church
St. Philip The Apostle Sun Grove Community Church
Thrive Church
Thunderballs Bowling Club
Tri Counties Blue Star Moms
United Apostolic Church
United IU Mien Community
V.F.W. #8985
Vernon Police Officer's Benefit Association
Vietnam Committee on Scouting
Viet Nam Vets/Legacy Vets Motorcycle Club
Wall Youth Foundation
Zodiac Stars of Sacramento
OPPOSITION : (Verified 5/28/13)
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Orange County Fire Authority
ARGUMENTS IN SUPPORT : According to the author's office, this
bill not only addresses and presents the consensus solution for
the dangerous, illegal fireworks disposal problem facing the
State of California and local jurisdictions, but it also permits
communities throughout the state to decide for themselves if
they wish to allow the sale and use of SFM safe and sane
fireworks for the period between Christmas and New Year's. This
bill preserves local control and, at the same time, assists in
raising the necessary funds to assist state and local fire and
law enforcement agencies to have the critical financial
resources to deal with the enforcement, education, fire
operation, suppression and training activities
surrounding both illegal fireworks and safe and sane fireworks
used in their communities. Local jurisdictions could generate
roughly an additional $4.9 million in new fee revenue for the
4th of July each year and over $1 million for the
New Year's period. This bill will allow nonprofit organizations
throughout the state an additional opportunity to raise critical
dollars to fund critical programs in their community utilizing a
100% consignment fundraising tool. As has been shown by recent
testimony of fire officials throughout the state, it will also
provide a safe alternative and deterrent to use of illegal
fireworks in communities throughout California on New Year's
Eve.
Proponents state that nonprofit organizations are in need of
additional avenues of funding beyond those which are currently
employed, if they are to continue to meet the critical needs and
programs that are funded in their communities. This bill will
"provide local communities the option of allowing the sale and
use of State Fire Marshal-Approved Safe and Sane Fireworks
during the New Years' Eve holiday as well as to assist the State
Fire Marshal and local jurisdictions in their efforts to control
and dispose of illegal fireworks."
ARGUMENTS IN OPPOSITION : The Orange County Fire Authority
writes, "We agree that enforcement and disposal of seized
fireworks is an ongoing problem. We cannot support expanding
the sale period of fireworks to the New Year's holiday as a
means or condition of addressing that existing problem. SB 777
will increase the number of firework related incidents, deaths,
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and injuries. Our personnel will see greater exposure during
what is already a hectic and increased period of calls for many
public safety agencies. The bill seeks to address this issue by
authorizing the limited recoupment via fees on retail sellers of
fireworks. However, the conditions for calculating those fees
based on gross sales and a "pro rata" share of increased agency
costs are so stringent that agencies would not be able to
collect these fees.
MW:ej 5/29/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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