Amended in Assembly July 13, 2015

Amended in Senate April 6, 2015

Senate Bill No. 522

Introduced by Senator Mendoza

February 26, 2015

An act to amend begin delete Section 4616.4 of the Labor Code, relating to workers’ compensation. end delete begin insert Sections 12505, 12555, 12558, 12561, 12562, 12563, 12564, 12565, 12566, 12570, 12580, 12581, 12585, 12586, 12587, 12590, 12604, 12605, 12637, 12643, 12645, 12648, 12649, 12670, 12673, 12686, 12688, 12706, 12722, 12724, 12725, and 12728 of, to add Chapter 6.5 (commencing with Section 12655) to Part 2 of Division 11 of, and to repeal Sections 12556, 12557, 12723, and 12726 of, the Health and Safety Code, relating to fireworks. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 522, as amended, Mendoza. begin delete Workers’ compensation: advertisements. end delete begin insert State Fireworks Law: fireworks stewardship program. end insert

begin insert

Existing law requires various entities, including the State Fire Marshal, to seize certain prohibited fireworks. Existing law, until January 1, 2016, requires the State Fire Marshal to manage seized fireworks and contract with a federally permitted hazardous waste hauler for the hauling and disposal of seized illegal fireworks, and to store fireworks determined not to be hazardous, as provided. Existing law requires the Office of the State Fire Marshal to consult with public safety agencies and other stakeholders and develop a model ordinance that permits local jurisdictions to adopt streamlined enforcement and administrative fine procedures related to possession of 25 pounds or less of dangerous fireworks.

end insert begin insert

This bill would repeal the provisions relating to a model ordinance governing enforcement and administrative fine procedures.

end insert begin insert

Existing law authorizes the State Fire Marshal to issue and renew licenses for the manufacture, import, export, sale, and use of all fireworks and pyrotechnic devices in this state, in accordance with prescribed procedures.

end insert begin insert

The bill would, commencing January 1, 2017, prohibit the State Fire Marshal from issuing or renewing those licenses unless the applicant for a license or renewal of a license has submitted a fireworks stewardship plan, as described, that has been approved by the State Fire Marshal. The bill would establish the Fireworks Stewardship Program, which would, among other things, prescribe procedures for entities that are authorized to seize fireworks to provide for the transfer, storage, transportation, and repurposing of seized fireworks, in accordance with specified requirements, including that the fireworks are managed and transported in accordance with all applicable state and federal hazardous waste laws and regulations.

end insert begin insert

The bill would require a fireworks stewardship organization, as defined, or a manufacturer of fireworks, as described, before it may take possession of seized fireworks from the State Fire Marshal, to, not later than January 30, 2016, submit an interim fireworks plan for approval to the State Fire Marshal, containing specified components and information, and would prescribe procedures for the approval or disapproval of the plan. The bill would, no later than July 1, 2016, require a manufacturer, either individually, or through a fireworks stewardship organization acting on its behalf, to submit a fireworks stewardship plan to the State Fire Marshal that meets specified requirements. The bill would require a manufacturer or a fireworks stewardship organization, no later than July 1, 2016, and annually thereafter, to prepare and submit to the State Fire Marshal a proposed program budget for the following calendar year, with information relating the anticipated costs of the program.

end insert begin insert

The bill would require a fireworks stewardship organization to recommend to the State Fire Marshal an amount for a fireworks management charge to be added to the price of safe and sane fireworks at the point of sale, as defined, to fund the program. The bill would prescribe procedures for the conduct of audits and the reimbursement of various entities for program costs, and would impose recordkeeping and reporting requirements on a fireworks stewardship organization covered under the bill. The bill would authorize the State Fire Marshal to impose various administrative penalties for violations of program requirements, and would require that all revenues collected from those administrative penalties be deposited in the State Fire Marshal Fireworks Enforcement and Disposal Fund, as provided.

end insert begin insert

Existing law provides that criminal fines for violations of the laws regulating fireworks are distributed by the courts, with 65% allocated to a fund that supports State Fire Marshal programs relating to fireworks and explosives enforcement and education, and 35% allocated to reimbursement of the local public safety agencies for enforcement expenses.

end insert begin insert

This bill would provide, without specifying further allocation, that all of these moneys are to be deposited with the county treasurer of the county in which the court is situated.

end insert begin delete

Existing law establishes a worker’s compensation system, administered by the Administrative Director of the Division of Workers’ Compensation, to compensate an employee for injuries sustained in the course of his or her employment. Existing law authorizes an insurer, employer, or entity that provides physician network services to establish or modify a medical provider network for the provision of medical treatment to injured employees, and requires the administrative director to contract with individual physicians or an independent medical review organization to perform independent medical reviews.

end delete begin delete

This bill would clarify that those independent medical reviews are medical provider network independent medical reviews. The bill would make conforming changes.

end delete

Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

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

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 12505 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

12505.  

“Dangerous fireworks” includes all of the following:

(a)  Any fireworks which contain any of the following:

(1)  Arsenic sulfide, arsenates, or arsenites.

(2)  Boron.

(3)  Chlorates, except:

(A)  In colored smoke mixture in which an equal or greater
amount of sodium bicarbonate is included.

(B)  In caps and party poppers.

(C)  In those small items (such as ground spinners) wherein the
total powder content does not exceed 4 grams of which not greater
than 15 percent (or 600 milligrams) is potassium, sodium, or
barium chlorate.

(4)  Gallates or Gallic acid.

(5)  Magnesium (magnesium-aluminum alloys, called
magnalium, are permitted).

(6)  Mercury salts.

(7)  Phosphorous (red or white except that red phosphorus is
permissible in caps and party poppers).

(8)  Picrates or picric acid.

(9)  Thiocyanates.

(10)  Titanium, except in particle size greater than 100-mesh.

(11)  Zirconium.

(b)  Firecrackers.

(c)  Skyrockets and rockets, including all devices which employ
any combustible or explosive material and which rise in the air
during discharge.

(d)  Roman candles, including all devices which discharge balls
of fire into the air.

(e)  Chasers, including all devices which dart or travel about
the surface of the ground during discharge.

(f)  Sparklers more than 10 inches in length or one-fourth of
one inch in diameter.

(g)  All fireworks designed and intended by the manufacturer
to create the element of surprise upon the user. These items include,
but are not limited to, auto-foolers, cigarette loads, exploding golf
balls, and trick matches.

(h)  Fireworks known as devil-on-the-walk, or any other
firework which explodes through means of friction, unless
otherwise classified by the State Fire Marshal pursuant to this part.

(i)  Torpedoes of all kinds which explode on impact.

(j)  Fireworks kits.

(k)  Such other fireworks examined and tested by the State Fire
Marshal and determined by begin delete him, end delete begin insert him or her, end insert with the advice of
the State Board of Fire Services, to possess characteristics of design
or construction which make such fireworks unsafe for use by any
person not specially qualified or trained in the use of fireworks.

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 12555 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

12555.  

The State Fire Marshal or his begin insert or her end insert salaried deputies
may make an examination of the books and records of any licensee
or permittee relative to fireworks, and may visit and inspect any
building or other premises subject to the control of, or used by,
the licensee or permittee for any purpose related to fireworks of
any licensee or permittee at any time he begin insert or she end insert may deem necessary
for the purpose of enforcing the provisions of this part.

begin insert

begin insert SEC. end insert begin insert 3. end insert   

end insert

begin insert Section 12556 of the end insert begin insert Health and Safety Code end insert begin insert is
repealed. end insert

begin delete

12556.  

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.

end delete

begin insert

begin insert SEC. end insert begin insert 4. end insert   

end insert

begin insert Section 12557 of the end insert begin insert Health and Safety Code end insert begin insert is
repealed. end insert

begin delete

12557.  

(a) The Office of the State Fire Marshal shall consult
with public safety agencies and other stakeholders as deemed
necessary by the State Fire Marshal and develop a model ordinance
that permits local jurisdictions to adopt a streamlined enforcement
and administrative fine procedures related to the possession of 25
pounds or less of dangerous fireworks. These procedures shall be
limited to civil fines and as authorized pursuant to Section 53069.4
of the Government Code, and provide that the fines collected
pursuant to this section shall not be subject to Section 12706. The
model ordinance shall include provisions for reimbursing the Office
of the State Fire Marshal for the costs associated with the disposal
of seized fireworks and collecting these disposal costs as part of
an administrative fine as described in subdivision (c).

(b) An ordinance of a local jurisdiction in effect on or after
January 1, 2008, that is related to dangerous fireworks and is not
the model ordinance described in subdivision (a) shall, as soon as
practicable, comply with all of the following:

(1) The ordinance shall be amended or adopted to include
provisions for cost reimbursement to the Office of the State Fire
Marshal and the collection of disposal costs as part of an
administrative fine as described in subdivision (c).

(2) The ordinance shall be amended or adopted to provide that
the ordinance shall be limited to a person who possesses or the
seizure of 25 pounds or less of dangerous fireworks.

(3) The ordinance shall be amended or adopted to provide that
the fines collected pursuant to the ordinance shall not be subject
to Section 12706.

(c) The State Fire Marshal shall, in consultation with local
jurisdictions, develop regulations to specify a procedure on how
to cover the cost to the Office of the State Fire Marshal for the
transportation and disposal of dangerous fireworks that are seized
by local jurisdictions. The regulations shall include, but are not
limited to, all of the following:

(1) A cost recovery procedure to collect, as part of an
administrative fine, the actual cost for transportation and disposal
of dangerous fireworks from any person who violates a local
ordinance related to dangerous fireworks.

(2) The method by which the actual cost for transportation and
disposal by the Office of the State Fire Marshal will be calculated.

(3) The method, manner, and procedure the local jurisdiction
is required to follow to forward the amounts collected pursuant to
paragraph (1) to the State Fire Marshal.

end delete

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 12558 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

12558.  

The licensee or permittee shall permit the chief of the
issuing authority, or his begin insert or her end insert authorized representatives, as
qualified in Section 12721, to enter and inspect any building or
other premises subject to the control of or used by the licensee or
permittee for any purpose related to fireworks at any time for the
purpose of enforcing the provisions of this part.

begin insert

begin insert SEC. end insert begin insert 6. end insert   

end insert

begin insert Section 12561 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

12561.  

All fireworks examined by the State Fire Marshal and
determined by him begin insert or her end insert to come within the definition of
“dangerous fireworks” in Section 12505 shall be classified as
dangerous fireworks.

begin insert

begin insert SEC. end insert begin insert 7. end insert   

end insert

begin insert Section 12562 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

12562.  

All fireworks examined by the State Fire Marshal and
determined by him begin insert or her end insert to come within the definition of “safe
and sane fireworks” in Section 12529 shall be classified as safe
and sane fireworks.

begin insert

begin insert SEC. end insert begin insert 8. end insert   

end insert

begin insert Section 12563 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

12563.  

All fireworks examined by the State Fire Marshal and
determined by him begin insert or her end insert to come within the definition of
“agricultural and wildlife fireworks” in Section 12503 shall be
classified as agricultural and wildlife fireworks.

begin insert

begin insert SEC. end insert begin insert 9. end insert   

end insert

begin insert Section 12564 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

12564.  

All fireworks examined by the State Fire Marshal and
determined by him begin insert or her end insert to come within the definition of “exempt
fireworks” in Section 12508 shall be classified as exempt fireworks.

begin insert

begin insert SEC. 10. end insert   

end insert

begin insert Section 12565 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

12565.  

All fireworks or toy propellent devices containing
pyrotechnic compositions examined by the State Fire Marshal and
found by him begin insert or her end insert to come within the definition of “model
rocket” or “model rocket engine” in Section 12519 or 12520,
respectively, shall be classified as model rocket engines.

begin insert

begin insert SEC. 11. end insert   

end insert

begin insert Section 12566 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

12566.  

All pyrotechnic devices examined by the State Fire
Marshal and found by him begin insert or her end insert to come within the definition of
“emergency signaling devices” in Section 12506 shall be classified
by the State Fire Marshal as emergency signaling devices.

begin insert

begin insert SEC. 12. end insert   

end insert

begin insert Section 12570 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

12570.  

The State Fire Marshal may issue any license described
in this part, subject to the regulations begin delete which he end delete begin insert that he or she end insert may
adopt not inconsistent with the provisions of this part.

begin insert

begin insert SEC. 1 end insert begin insert 3. end insert   

end insert

begin insert Section 12580 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

12580.  

The State Fire Marshal may issue and renew licenses
for the manufacture, import, export, sale, and use of all fireworks
and pyrotechnic devices in this state. begin insert Commencing on January 1,
2017, the State Fire Marshal shall not issue wholesale licenses
that include the wholesale of safe and sane fireworks if the
applicant for a license does not have a fireworks stewardship plan
that has been approved by the State Fire Marshal pursuant to
Section 12659. end insert

begin insert

begin insert SEC. 1 end insert begin insert 4. end insert   

end insert

begin insert Section 12581 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

12581.  

Any person who desires to manufacture, import, export,
begin delete sell end delete begin insert sell, end insert or use begin delete fireworks, end delete begin insert fireworks end insert shall first make written
application for a license to the State Fire Marshal on forms
provided by begin delete him. Such end delete begin insert him or her. The end insert application shall be
accompanied by the annual license fee as prescribed in this chapter.

begin insert

begin insert SEC. 1 end insert begin insert 5. end insert   

end insert

begin insert Section 12585 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

12585.  

Any applicant may withdraw his begin insert or her end insert application for
a license or renewal of a license and the State Fire Marshal may
allow the withdrawal when he begin insert or she end insert has determined that it is in
the best interest of public safety or the administration of this part.

begin insert

begin insert SEC. 16. end insert   

end insert

begin insert Section 12586 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

12586.  

The suspension, expiration, or forfeiture by operation
of law of a license issued by the State Fire Marshal, or its
suspension, forfeiture, or cancellation by order of the State Fire
Marshal or by a court of law, or its surrender to the State Fire
Marshal shall not, during any period in which it may be renewed,
restored, reissued, or reinstated, deprive the State Fire Marshal of
his begin insert or her end insert authority to institute or continue disciplinary action
against the licensee upon any ground provided by law, or to enter
an order suspending or revoking a license or otherwise taking
disciplinary action against the licensee on any such ground.

begin insert

begin insert SEC. 1 end insert begin insert 7. end insert   

end insert

begin insert Section 12587 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

12587.  

A written report by the State Fire Marshal, any of his
begin insert or her end insert deputies, or salaried assistants, or by the chief of any city
or county fire department or fire protection district or begin delete their end delete begin insert his or
her end insert authorized representatives, disclosing that the applicant for a
license or for renewal of a license does not meet, or the premises
for which the license is required do not meet, the qualifications or
conditions for begin delete such end delete begin insert the end insert license as required by this part or
regulations adopted pursuant to this part, may constitute grounds
for denial of any application for the license or renewal of the
license.

begin insert

begin insert SEC. 1 end insert begin insert 8. end insert   

end insert

begin insert Section 12590 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

12590.  

The State Fire Marshal may deny or revoke any license
issued pursuant to this part if the State Fire Marshal finds any of
the following conditions has occurred:

(a)  The licensee has failed to pay the annual renewal license
fee provided in this chapter.

(b)  The licensee or license applicant has violated any provisions
of this part or any regulations adopted by the State Fire Marshal
pursuant to this part.

(c)  The licensee or license applicant has created or caused a
fire nuisance.

(d)  The licensee has failed to keep full, complete, and accurate
records or failed to file any required reports.

(e)  Any fact or condition exists which, if it had existed at the
time of the original application for the license reasonably would
have warranted the State Fire Marshal in refusing originally to
issue the license.

(f)  The permit issued under Section 12640 has been rescinded
or revoked by the issuing authority.

(g)  Any licensee or license applicant has refused to make
available to the State Fire Marshal full, complete, and accurate
records.

begin insert

(h) The licensee does not participate in a fireworks stewardship
plan that has been approved by the State Fire Marshal pursuant
to Section 12659.

end insert

begin insert

begin insert SEC. 1 end insert begin insert 9. end insert   

end insert

begin insert Section 12604 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

12604.  

Following the revocation or voluntary surrender of begin delete a end delete
begin insert his or her end insert license, or failure to renew his begin insert or her end insert license, any person
in lawful possession of lawfully acquired fireworks for which a
license is required may sell or otherwise dispose of such fireworks
only under supervision of the State Fire Marshal and in such a
manner as begin delete he end delete begin insert the State Fire Marshal end insert shall provide by regulations
and solely to persons who are authorized to buy, possess, sell, or
use begin delete such end delete begin insert those end insert fireworks. begin delete Such end delete begin insert That end insert disposal shall be accomplished
not later than 90 days begin delete from end delete begin insert after end insert the legal revocation, voluntary
surrender, or begin delete day that the license expires. end delete begin insert expiration of the license. end insert
Any person possessing fireworks pursuant to this section shall
report the disposition of begin delete such end delete begin insert the end insert fireworks to the local authority
who issued the storage permit within the time period specified by
this section.

begin insert

begin insert SEC. 20. end insert   

end insert

begin insert Section 12605 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

12605.  

begin delete Any end delete begin insert A end insert person found guilty of violating any of the
provisions of this part is not eligible to apply for a new license,
apply for a renewal of a license, or take an examination for any
license for a period of one year from the date of any conviction.
The State Fire Marshal may waive the provisions of this section
when he begin insert or she end insert finds the granting of a license will not endanger
public safety.

begin insert

begin insert SEC. 21. end insert   

end insert

begin insert Section 12637 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

12637.  

All fireworks or pyrotechnic devices intended for sale
in this state, which are products of nonlicensed manufacturers,
shall be examined and classified by the State Fire Marshal upon
written application on forms provided by begin delete him. Such end delete begin insert him or her.
The end insert application shall be accompanied by a fee as follows:

(a) Ten dollars ($10) for each label of an item of identical size
and design of a given lot or batch, provided that the lot or batch
is identifiable by a code, serial number, shipment lot, case cargo
number, etc.

begin delete

A

end delete

begin insert (b) end insert begin insert   end insert begin insert A end insert separate application and fee shall be submitted for each
lot or batch.

begin delete

The

end delete

begin insert (c) end insert begin insert   end insert begin insert The end insert State Fire Marshal seal and the wholesalers or importers
registration number shall not be imprinted on the label until the
lot or batch has been examined and classified.

begin insert

begin insert SEC. 22. end insert   

end insert

begin insert Section 12643 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

12643.  

Any licensee desiring to do any act specified in Section
12640 shall first make written application for a permit to the chief
of the fire department or the chief fire prevention officer of the
city or county, or to begin delete such other end delete begin insert another end insert issuing authority begin delete which end delete
begin insert that end insert may be designated by the governing body of the city or county.
In the event there is no such officer or person appointed within the
area, application shall be made to the State Fire Marshal or his begin insert or
her end insert deputy. Applications for permits shall be made in writing at
least 10 days prior to the proposed act.

begin insert

begin insert SEC. 23. end insert   

end insert

begin insert Section 12645 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

12645.  

The officer to whom the application for a permit is
made shall undertake an investigation and submit a report of his
begin insert or her end insert findings and his begin insert or her end insert recommendation concerning the
issuance of the permit, together with his begin insert or her end insert reasons therefor,
to the governing body of the city or county. The applicant for a
permit to conduct a public display shall file a certificate evidencing
the possession of a valid public display license with the officer
making the investigation.

begin insert

begin insert SEC. 24. end insert   

end insert

begin insert Section 12648 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

12648.  

The officer to whom the application for a permit for a
public display of fireworks is made shall make an investigation to
determine whether such a display as proposed will be of begin delete such end delete begin insert a end insert
character or so located that it may be hazardous to property or
dangerous to any person. He begin insert or she end insert shall, in the exercise of
reasonable discretion, recommend granting or denying the permit,
subject to begin delete such end delete begin insert those end insert conditions as he begin insert or she end insert may prescribe.

begin insert

begin insert SEC. 25. end insert   

end insert

begin insert Section 12649 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

12649.  

The applicant for a permit for any public display of
fireworks shall, at the time of application, submit his begin insert or her end insert license
for inspection and furnish proof that he begin insert or she end insert carries compensation
insurance for his begin insert or her end insert employees as provided by the laws of this
state.

begin insert

begin insert SEC. 26. end insert   

end insert

begin insert Chapter 6.5 (commencing with Section 12655) is
added to Part 2 of Division 11 of the end insert begin insert Health and Safety Code end insert begin insert , to
read: end insert

begin insert

 

Chapter   begin insert 6.5. end insert Fireworks Stewardship Program

 

begin insert 12655. end insert   

This chapter shall be known as the Fireworks
Stewardship Program.

begin insert 12656. end insert   

For purposes of this chapter, the following definitions
apply:

(a) “Dangerous fireworks” has the same meaning as Section
12505.

(b) “Fireworks” has the same meaning as Section 12511.

(c) “Fireworks management charge” or “charge” means the
charge imposed on the sale of fireworks and collected at the retail
point of sale, the revenues from which are used to fund the
management and disposal of out-of-state fireworks.

(d) “Fireworks stewardship plan” or “fireworks plan” means
a plan submitted to the State Fire Marshal pursuant to Section
12659.

(e) “Fireworks stewardship organization” means a nonprofit
organization authorized by one or more manufacturers to act on
behalf of manufacturers to provide plans to the State Fire Marshal
pursuant to Section 12658 or 12659.

(f) “Interim fireworks plan” or “interim plan” means an interim
plan submitted to the State Fire Marshal for approval pursuant
to Section 12658.

(g) “Manufacturer” means one of the following persons:

(1) A person or entity that manufactures, and that sells, offers
for sale, or distributes, safe and sane fireworks in the state under
the person’s or entity’s own name or brand.

(2) If there is no person or entity that sells, offers for sale, or
distributes safe and sane fireworks in the state under the person’s
or entity’s own name or brand, the manufacturer of the fireworks
is the owner or licensee of a trademark or brand under which the
fireworks are sold or distributed in the state, whether or not the
trademark is registered.

(3) If there is no person who is a manufacturer pursuant to
paragraph (1) or (2), the manufacturer of the fireworks is the
person who imports the fireworks into the state for sale or
distribution.

(h) “Retailer” has the same meaning as Health and Safety Code
Section 12528.

(i) “Safe and sane fireworks” has the same meaning as Section
12529.

(j) “Seizing entity” means any entity authorized to seize
fireworks pursuant to Section 12721.

begin insert 12657. end insert   

(a) The seizing entity shall separate any seized
fireworks that are no longer in their original United States
Department of Transportation certified shipping containers, as
well as any fireworks that are identified as dangerous and are not
legal for sale in California or any other state, and ensure that this
material is stored in accordance with all applicable state and
federal hazardous waste laws and regulations. The seizing entity
may transfer any seized fireworks to the fireworks stewardship
organization or a manufacturer for purposes of resale or disposal.
If a seizing entity transfers any seized fireworks to a fireworks
stewardship organization or manufacturer, it shall keep records
detailing the number of pounds of fireworks it transferred. A
stewardship organization shall accept full responsibility for the
management and handling of, and assume liability for any damage
caused as a result of, any fireworks that are transferred pursuant
to this chapter, and shall hold the State of California and the
seizing entity harmless for any damage done by those fireworks.

(b) Notwithstanding any other law, within 30 days of notification
by the seizing entity, the stewardship organization or manufacturer
shall arrange for pickup or transportation of all seized fireworks
that are held by the seizing entity in accordance with one of the
following procedures:

(1) Seized fireworks that are no longer in their original United
States Department of Transportation certified shipping containers,
and those that are identified as dangerous and are not legal for
sale in California or any other state, shall be transported by a
registered hazardous waste transporter, in accordance with all
applicable state and federal hazardous waste laws and regulations,
and all applicable United States Department of Transportation
requirements, to a facility that is authorized by the state where the
facility is located to receive fireworks that are determined to be
hazardous waste.

(2) Seized fireworks that are still in their original United States
Department of Transportation certified shipping containers shall
be transported to a location that is described in an approved plan
submitted pursuant to Section 12658 or 12659, as applicable.

(c) Any seized fireworks that are still in their original United
States Department of Transportation certified shipping containers
may be managed as follows:

(1) To the extent allowed by any applicable state and federal
laws, fireworks that may not legally be sold in California may be
repurposed, and retained by a fireworks stewardship organization
within the state for a period not exceeding 90 days. Before the
expiration of the 90-day period, the stewardship organization shall
ship those fireworks to a site operated by the stewardship
organization or another entity in another state that is authorized
to accept the shipment.

(2) To the extent allowed by any applicable state and federal
laws, any fireworks that may legally be sold in California may be
repurposed and retained by a fireworks stewardship organization
and offered for sale within the state during a legally authorized
sales period.

begin insert 12658. end insert   

(a) Before it may legally take possession of seized
fireworks from the State Fire Marshal, a fireworks stewardship
organization or manufacturer shall, not later than January 30,
2016, submit an interim fireworks plan for approval by the State
Fire Marshal, which shall contain, at a minimum, all of the
following:

(1) A plan for the collection, sorting, disposal, or other
disposition of fireworks seized over the July 4, 2016 sales period,
which is in compliance with all appropriate state and federal
hazardous waste laws.

(2) A financial plan for the fireworks stewardship organization
or manufacturer to cover any costs associated with paragraph (1)
and any reasonable costs incurred by the State Fire Marshal to
administer this section, including any required retailer fees.

(b) No later than February 28, 2016, the State Fire Marshal
shall notify the fireworks stewardship organization or manufacturer
of the approval or disapproval of the interim plan submitted
pursuant to subdivision (a). If the State Fire Marshal disapproves
of the interim plan, the State Fire Marshal may require any revision
to the plan he or she deems necessary to protect the public safety
or the fiscal solvency of the fireworks disposal program as a
precondition for approval of the interim plan. A fireworks
stewardship organization or manufacturer shall submit a revised
interim plan to the State Fire Marshal no later than ____ days
after the date of receipt of notification of a disapproved plan. If
the fireworks stewardship organization or manufacturer fails to
submit a revised interim plan to the State Fire Marshal that
includes the revisions required by the State Fire Marshal, or the
State Fire Marshal fails to approve the plan within ____ days of
receipt of the revised plan, the revised plan shall be deemed
disapproved.

(c) The State Fire Marshal or a seizing entity may transfer any
fireworks held from prior fiscal years to a fireworks stewardship
organization or manufacturer during the period from January 1,
2016, to June 30, 2016. The transfer of those fireworks may only
take place if the proposed transfer is provided for in an approved
and implemented interim plan submitted pursuant to subdivision
(a).

(d) The Department of Forestry and Fire Protection may
establish positions during the 2015-16 fiscal year that are
necessary to implement and administer this chapter. Any
subsequent funding for those positions shall occur as part of the
regular budget process for the 2016-17 fiscal year, and each fiscal
year thereafter, consistent with the requirements of the annual
Budget Act.

(e) No later than June 1, 2016, a fireworks stewardship
organization or manufacturer shall be required to reimburse the
Department of Forestry and Fire Protection for any actual costs
incurred in funding the positions established pursuant to
subdivision (d).

(f) Before approving the interim fireworks plan submitted
pursuant to subdivision (a), the State Fire Marshal shall consult
with Department of Toxic Substances Control to ensure that the
activities described in the interim plan will be conducted so as to
comply with all state and federal hazardous waste laws and
regulations.

begin insert 12659. end insert   

(a) No later than July 1, 2016, a manufacturer shall,
individually, or through a fireworks stewardship organization
acting on its behalf, submit for approval a fireworks stewardship
plan to the State Fire Marshal that meets the requirements of this
section and includes all of the following:

(1) A process for collaborating with the State Fire Marshal with
regard to the establishment of program goals and methods of
measuring program outcomes.

(2) A description of education and outreach efforts to nonprofit
organizations, charities, and others who sell safe and sane
fireworks regarding fire protection and prevention, the responsible
use of safe and sane fireworks, and the hazards of illegal fireworks.

(3) A consultation process with affected stakeholders regarding
the plan.

(4) The names of manufacturers and brands of fireworks covered
under the plan.

(5) Procedures to ensure the continued implementation of the
fireworks plan if the manufacturer or the stewardship organization
no longer exists due to bankruptcy, dissolution, or similar events.

(6) A process for ensuring payment to hazardous waste facilities
for the reasonable costs of collecting, storing, and processing
fireworks in the implementation of the fireworks plan pursuant to
this chapter.

(7) A methodology and audit plan for ensuring that any
fireworks that are legal under federal law, and are shipped outside
of the state, do not reenter California.

(8) Provisions requiring an annual report to the State Fire
Marshal documenting the prior year’s seizures, shipments, sales,
and disposals.

(9) A plan developed with state and local law enforcement to
reduce the volume of illegal fireworks entering California.

(10) Measures to be implemented to ensure that hazardous
waste is managed in accordance with state and federal hazardous
waste laws and regulations.

(b) Before approving the fireworks stewardship plan prepared
pursuant to subdivision (a), the State Fire Marshal shall consult
with the Department of Toxic Substances Control to ensure that
the activities described in the fireworks stewardship plan will be
conducted in compliance with all state and federal hazardous
waste laws and regulations.

(c) Commencing January 1, 2017, the State Fire Marshal shall
not issue licenses pursuant to Sections 12572 and 12573 to a
manufacturer that is not in compliance with this chapter.

begin insert 12660. end insert   

No later than July 1, 2016, and annually thereafter, a
manufacturer or a fireworks stewardship organization shall
prepare and submit to the State Fire Marshal a proposed fireworks
program budget for the following calendar year that includes all
of the following:

(a) Anticipated revenues from the sale of recuperated fireworks
and costs of implementing the program, including costs of related
programs, projects, contracts, and administrative expenses, and
including the costs of complying with state and federal hazardous
waste laws and regulations.

(b) Recommended funding levels sufficient to cover the plan’s
budgeted costs and the operating expenses of the program over a
multiyear period in a prudent and responsible manner.

(c) The amount of the fireworks disposal fee for the subsequent
July 4th sales period and an itemization of the estimated proceeds
of the fee.

(d) No later than October 1, 2016, and annually thereafter, the
State Fire Marshal shall approve or disapprove a manufacturer’s
or fireworks stewardship organization’s final program budget. If
the State Fire Marshal fails to act or does not disapprove a
manufacturer’s or fireworks stewardship organization’s final
program budget, the budget shall be deemed approved on ____
of the applicable year.

(e) (1) If the State Fire Marshal disapproves the budget
submitted by a fireworks stewardship organization or
manufacturer, the fireworks stewardship organization or
manufacturer shall submit a revised budget addressing the State
Fire Marshal’s written reasons for its decision to disapprove within
30 days of the date the budget is disapproved.

(2) The State Fire Marshal, within 30 days from the date the
manufacturer or a fireworks stewardship organization submits a
revised budget, shall approve or disapprove a final fireworks
program budget.

begin insert 12661. end insert   

(a) A stewardship organization shall recommend to
the State Fire Marshal the amount of a fireworks management
charge that should be added to the purchase price of safe and sane
fireworks at the point of sale.

(b) (1) The amount of the fireworks management charge shall
be sufficient to fund the revenue requirements set forth in the
approved budget.

(2) The stewardship organization shall set the fireworks
management charge as a flat rate based on the type and quantity
of the fireworks purchased and not as a percentage of the purchase
price.

(c) The fireworks management charge shall be included in the
annual program budget for approval by the State Fire Marshal
pursuant to Section 12660.

(d) Once the State Fire Marshal approves or conditionally
approves a budget pursuant to Section 12660, the State Fire
Marshal shall require that a fireworks retailer that sells safe and
sane fireworks to a consumer in the state add the fireworks
management charge to the purchase price of the fireworks sold,
and remit the proceeds of the charge to the fireworks stewardship
organization or manufacturer, as applicable.

(e) The stewardship organization or manufacturer shall
determine the rules and procedures that are necessary and proper
to implement the collection of the charge in a fair, efficient, and
lawful manner.

begin insert 12662. end insert   

(a) The fireworks stewardship organization or
manufacturer may conduct an audit of those parties that are
required to remit the fee to the manufacturer or stewardship
organization to verify that a fireworks management charge is paid
correctly and accurately, and to ensure that charges are paid and
collected pursuant to this chapter in the correct amount.

(b) An audit conducted pursuant to this section shall be carried
out in accordance with generally accepted auditing practices and
shall be limited in scope to confirming whether the fireworks
management charge has been properly collected on all sales of
safe and sane fireworks to consumers in the state.

(c) For purposes of conducting audits pursuant to this section,
a manufacturer or fireworks stewardship organization shall hire
an independent, third-party auditor.

(d) If a manufacturer or fireworks stewardship organization
conducts an audit pursuant to this section, the organization shall
provide a copy of the audit to the department.

begin insert 12663. end insert   

(a) The State Fire Marshal shall prepare a summary
of his or her costs for implementing and enforcing this chapter
through the end of the 2016-17 fiscal year, and for each fiscal
year thereafter. The estimated costs of implementation shall include
any costs incurred by the Department of Toxic Substances Control
to review an interim plan submitted pursuant to Section 12658, or
a fireworks plan submitted pursuant to Section 12659, for
compliance with state and federal hazardous waste laws and
regulations.

(b) No later than July 1, 2016, and once every three months
thereafter, and within the fiscal year ending June 30, the fireworks
stewardship organization shall reimburse the State Fire Marshal
for any costs incurred pursuant to subdivision (a).

(c) The State Fire Marshal shall deposit all moneys submitted
for reimbursement of its costs by a fireworks stewardship
organization or manufacturer pursuant to this section into the
State Fire Marshal Fireworks Enforcement and Disposal Fund,
created pursuant to Section 12728. Upon appropriation by the
Legislature, these moneys may be expended by the Department of
Forestry and Fire Prevention to administer and enforce this
chapter and reimburse any outstanding loans made from other
funds used to finance startup costs of the department’s activities
pursuant to this chapter.

begin insert 12664. end insert   

(a) A fireworks stewardship organization shall keep
minutes, books, and records that clearly reflect the activities and
transactions of the fireworks stewardship organization conducted
pursuant to this chapter.

(b) The accounting books of a manufacturer or a fireworks
stewardship organization shall be audited at the manufacturer’s
or the fireworks stewardship organization’s expense by an
independent certified public accountant retained by the
manufacturer or fireworks stewardship organization at least once
each calendar year.

(c) The fireworks stewardship organization or manufacturer
shall arrange for the audit to be delivered to the State Fire
Marshal. The State Fire Marshal shall review the audit to evaluate
the fireworks stewardship organization’s or manufacturer’s
compliance with this chapter and consistency with the plan created
pursuant to this chapter. The State Fire Marshal shall notify a
manufacturer or fireworks stewardship organization of any
compliance issues or inconsistencies. The State Fire Marshal shall
not disclose any confidential proprietary information in the audit.

(d) The State Fire Marshal may conduct its own audit if it
determines that an audit is necessary to enforce the requirements
of this chapter and that the audit conducted pursuant to subdivision
(b) is not adequate for this purpose.

begin insert 12665. end insert   

(a) The State Fire Marshal may impose an
administrative civil penalty on any manufacturer or stewardship
organization that is in violation of this chapter. The amount of the
civil penalty shall not exceed five hundred dollars ($500) per day,
but if the violation is intentional, knowing, or reckless, the State
Fire Marshal may impose a civil penalty of not more than five
thousand dollars ($5,000) per day.

(b) The State Fire Marshal may impose an administrative civil
penalty on any retailer who is in violation of this chapter. The
amount of the civil penalty shall not exceed five hundred dollars
($500) per day, but if the violation is intentional, knowing, or
reckless, the State Fire Marshal may impose a civil penalty of not
more than five thousand dollars ($5,000) per day.

(c) If more than one stewardship organization submits a plan
pursuant to this chapter, the State Fire Marshal shall determine
the manufacturer’s or retailer’s compliance with this chapter in
accordance with the plan to which the manufacturer or retailer is
subject.

(d) The State Fire Marshal may impose the administrative civil
penalties pursuant to this section in accordance with Chapter 5
(commencing with Section 11500) of Part 1 of Division 3 of Title
2 of the Government Code, except that subdivision (c) of Section
11505 of the Government Code shall not apply to the department.

(e) The State Fire Marshal shall not impose a penalty upon a
fireworks stewardship organization pursuant to this section for a
failure to comply with this chapter as a result of submitting false
or misleading information if the stewardship organization
demonstrates that it received false or misleading information from
a manufacturer that was the direct cause of its failure to comply
with this chapter.

(f) The State Fire Marshal shall deposit all penalties collected
pursuant to this section into the State Fire Marshal Fireworks
Enforcement and Disposal Fund.

begin insert 12666. end insert   

Section 12700 shall not apply to violations of this
chapter.

end insert

begin insert

begin insert SEC. 2 end insert begin insert 7. end insert   

end insert

begin insert Section 12670 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

12670.  

It is unlawful for any person to advertise that he begin insert or she end insert
is in any business or venture involving fireworks or pyrotechnic
devices or begin delete shall end delete begin insert to end insert cause his begin insert or her end insert name or business name style
to be included in any classified advertisement or directory under
a classification begin delete which end delete begin insert that end insert includes the word fireworks, unless he
begin insert or she end insert is licensed pursuant to this part.

begin insert

begin insert SEC. 28. end insert   

end insert

begin insert Section 12673 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

12673.  

It is unlawful for any person to store any fireworks
without having in his begin insert or her end insert possession a valid permit as required
by this part.

begin insert

begin insert SEC. 29. end insert   

end insert

begin insert Section 12686 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

12686.  

It is unlawful for any person to use any special effects
fireworks unless he begin insert or she end insert possesses a pyrotechnic operator license.

begin insert

begin insert SEC. 30. end insert   

end insert

begin insert Section 12688 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

12688.  

It is unlawful for any person to advertise to sell or
transfer any class of fireworks, including agricultural and wildlife
fireworks or model rocket engines, unless he begin insert or she end insert possesses a
valid license or permit.

begin insert

begin insert SEC. 31. end insert   

end insert

begin insert Section 12706 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

12706.  

Notwithstanding Section 1463 of the Penal Code, all
fines and forfeitures imposed by or collected in any court of this
state, except for administrative fines described in Section 12557,
as a result of citations issued by a public safety agency, for any
violation of subdivision (b) of Section 12700 or of any regulation
adopted pursuant to subdivision (b) of Section 12700, shall be
deposited, as soon as practicable after the receipt of the fine or
forfeiture, with the county treasurer of the county in which the
court is situated. begin delete Amounts deposited pursuant to this section shall
be paid at least once a month as follows: end delete

begin delete

(a) Sixty-five percent to the Treasurer, by warrant of the county
auditor drawn upon the requisition of the clerk or judge of the
court, for deposit in the State Fire Marshal Fireworks Enforcement
and Disposal Fund, as described in Section 12728, on order of the
Controller. At the time of the transmittal, the county auditor shall
forward to the Controller, on the form or forms prescribed by the
Controller, a record of the imposition, collection, and payments
of the fines or forfeitures.

end delete begin delete

(b) Thirty-five percent to the local public safety agency in the
county in which the offense was committed to reimburse the local
public safety agency for expenses, including, but not limited to,
the costs for handling, processing, photographing, and storing
seized dangerous fireworks.

end delete

begin insert

begin insert SEC. 32. end insert   

end insert

begin insert Section 12722 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

12722.  

The following fireworks may be seized pursuant to
Section 12721:

(a)  Those fireworks which are sold, offered for sale, possessed,
stored, used, or transported within this state prior to having been
examined, classified, and registered by the State Fire Marshal,
except those specific items designated as samples pending
examination, classification, and registration by the State Fire
Marshal where the licensee provides documentary evidence that
begin delete such end delete begin insert the end insert action by the State Fire Marshal is pending.

(b)  All imported fireworks possessed without benefit of the
filing of notices as required by this part.

(c)  Safe and sane fireworks stored in violation of the conditions
required by the permit as provided in this part.

(d)  Safe and sane fireworks sold or offered for sale at retail
begin delete which end delete begin insert that end insert do not bear the State Fire Marshal label of registration
and firing instructions.

(e)  Safe and sane fireworks sold or offered for sale at retail
begin delete which end delete begin insert that end insert are in unsealed packages or containers begin delete which end delete begin insert that end insert do
not bear the State Fire Marshal label of registration and firing
instructions.

(f)  Safe and sane fireworks sold or offered for sale at retail
before 12 noon on the 28th day of June or after 12 noon on the
sixth day of July of each year.

(g)  Each safe and sane fireworks item sold or offered for sale
at retail begin delete which end delete begin insert that end insert does not have its fuse or other igniting device
protected by a cap approved by the State Fire Marshal, or groups
of fireworks with exposed fuses begin delete which end delete begin insert that end insert are not enclosed in
sealed packages begin delete which end delete begin insert that end insert bear the State Fire Marshal label of
registration. The State Fire Marshal shall approve begin delete such caps as he end delete
begin insert those caps that he or she end insert determines provide reasonable protection
from unintentional ignition of the fireworks.

(h)  Dangerous fireworks, including fireworks kits, used,
possessed, stored, manufactured, or transported by any person who
does not possess a valid permit authorizing any activity listed in
this part.

(i)  Any fireworks stored or sold in any public garage or public
oil station, or on any premises where gasoline or any other class
1 flammable liquids are stored or dispensed.

(j)  Any fireworks still possessed by a person who has just
thrown any ignited fireworks at any person or group of persons.

(k)  Any model rocket engines or model rockets with engines
possessed by any person not holding a valid permit.

(l)  Any emergency signaling device sold, offered for sale, or
used begin delete which end delete begin insert that end insert does not bear the State Fire Marshal label of
registration as required by this part.

(m) Any fireworks or pyrotechnic device offered for sale by
any person violating any provision of this part.

begin insert

begin insert SEC. 33. end insert   

end insert

begin insert Section 12723 of the end insert begin insert Health and Safety Code end insert begin insert , as
added by Section 10 of Chapter 24 of the Statutes of 2015, is
repealed. end insert

begin delete

12723.  

(a) The authority seizing fireworks under the provisions
of this chapter shall notify the State Fire Marshal not more than
three days following the date of seizure and shall state the reason
for the seizure and the quantity, type, and location of the fireworks.
Fireworks, with the exception of dangerous fireworks, seized
pursuant to Section 12721 shall be disposed of by the State Fire
Marshal in the manner prescribed by the State Fire Marshal at any
time subsequent to 60 days from the seizure or 10 days from the
final termination of proceedings under the provisions of Section
12593 or 12724, whichever is later. Dangerous fireworks shall be
disposed of according to procedures in Sections 12724 and 12726.
Fireworks seized by any authority as defined in this chapter, other
than the State Fire Marshal or his or her salaried assistants, shall
be held in trust for the State Fire Marshal by that authority.

(b) This section shall become operative on January 1, 2016.

end delete

begin insert

begin insert SEC. 34. end insert   

end insert

begin insert Section 12724 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

12724.  

(a) Any person whose fireworks are seized under the
provisions of this chapter may, within 10 days after seizure, petition
the begin delete State Fire Marshal end delete begin insert entity seizing the fireworks end insert to return the
fireworks seized upon the ground that the fireworks were illegally
or erroneously seized. Any petition filed pursuant to this section
shall be considered by the begin delete State Fire Marshal end delete begin insert entity seizing the
fireworks end insert within 15 days after filing or after a hearing granted to
the petitioner, if requested. The begin delete State Fire Marshal end delete begin insert entity seizing
the fireworks end insert shall advise the petitioner of his or her decision in
writing. The determination of the begin delete State Fire Marshal end delete begin insert entity seizing
the fireworks end insert is final unless within 60 days after seizure an action
is commenced in a court of competent jurisdiction in the State of
California for the recovery of the fireworks seized pursuant to this
part, except as provided in subdivision (b).

(b) The determination of the begin delete State Fire Marshal end delete begin insert entity seizing
the fireworks end insert is final in the case of the seizure of dangerous
fireworks, unless within 20 days after the notice of the
determination is mailed to the petitioner an action is commenced
in a court of competent jurisdiction in the State of California for
the recovery of the fireworks seized pursuant to this part.

begin insert

begin insert SEC. 35. end insert   

end insert

begin insert Section 12725 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

12725.  

The State Fire Marshal, his begin insert or her end insert salaried deputies, or
any chief or his begin insert or her end insert authorized representatives as qualified in
this chapter may prevent, stop, or cause to be stopped, any public
display in progress, or any proposed public display, when the
location, discharge, or firing of such public display is determined
by him begin insert or her end insert to be hazardous to property or dangerous to the
public.

begin insert

begin insert SEC. 36. end insert   

end insert

begin insert Section 12726 of the end insert begin insert Health and Safety Code end insert begin insert , as
added by Section 12 of Chapter 24 of the Statutes of 2015, is
repealed. end insert

begin delete

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.

(c) 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 percent of the
collected moneys to the Controller for deposit in the State Fire
Marshal Fireworks Enforcement and Disposal Fund, as described
in Section 12728.

(d) This section shall become operative on January 1, 2016.

end delete

begin insert

begin insert SEC. 37. end insert   

end insert

begin insert Section 12728 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

12728.  

(a) The State Fire Marshal Fireworks Enforcement and
Disposal Fund is hereby established in the State Treasury.

begin delete

(b) All of the moneys collected pursuant to Section 12706 shall
be deposited in the fund and shall be available, upon appropriation
by the Legislature, to the State Fire Marshal for the exclusive use
in statewide programs for the enforcement, prosecution related to,
disposal, and management of seized dangerous fireworks, and for
the education of public safety agencies in the proper handling and
management of dangerous fireworks.

end delete begin insert

(b) All of the moneys deposited in the fund pursuant to Section
12663 shall be expended, upon appropriation by the Legislature,
only as provided in that section.

end insert

(c) All of the moneys collected pursuant to Section 12727 shall
be deposited in the fund and shall be available, upon appropriation
by the Legislature, to the State Fire Marshal for the exclusive use
in statewide programs for all of the following:

(1) To further assist in statewide programs for the enforcement,
prosecution related to, disposal, and management of seized
dangerous fireworks.

(2) The education of public safety agencies in the proper
handling and management of dangerous fireworks as well as safety
issues involving all fireworks and explosives.

(3) Assist the State Fire Marshal in identifying and evaluating
methods to capture more detailed data relating to fires, damages,
and injuries caused by both dangerous and safe and sane fireworks,
and to assist with funding the eventual development and
implementation of those methods.

(4) To further assist in public safety and education efforts within
the general public as well as public safety agencies on the proper
and responsible use of safe and sane fireworks.

begin delete

SECTION 1.  

Section 4616.4 of the Labor Code is amended to
read:

4616.4.  

(a) (1) The administrative director shall contract with
individual physicians, as described in paragraph (2), or an
independent medical review organization to perform medical
provider network (MPN) independent medical reviews pursuant
to this section.

(2) Only physicians licensed pursuant to Chapter 5 (commencing
with Section 2000) of the Business and Professions Code may be
independent medical reviewers.

(3) The administrative director shall ensure that the independent
medical reviewers or those within the review organization shall
do all of the following:

(A) Be appropriately credentialed and privileged.

(B) Ensure that the reviews provided by the medical
professionals are timely, clear, and credible, and that reviews are
monitored for quality on an ongoing basis.

(C) Ensure that the method of selecting medical professionals
for individual cases achieves a fair and impartial panel of medical
professionals who are qualified to render recommendations
regarding the clinical conditions consistent with the medical
utilization schedule established pursuant to Section 5307.27, or
the American College of Occupational and Environmental
Medicine’s Occupational Medicine Practice Guidelines.

(D) Ensure that confidentiality of medical records and the review
materials, consistent with the requirements of this section and
applicable state and federal law.

(E) Ensure the independence of the medical professionals
retained to perform the reviews through conflict-of-interest policies
and prohibitions, and ensure adequate screening for conflicts of
interest.

(4) Medical professionals selected by the administrative director
or the independent medical review organizations to review medical
treatment decisions shall be physicians, as specified in paragraph
(2) of subdivision (a), who meet the following minimum
requirements:

(A) The medical professional shall be a clinician knowledgeable
in the treatment of the employee’s medical condition,
knowledgeable about the proposed treatment, and familiar with
guidelines and protocols in the area of treatment under review.

(B) Notwithstanding any other provision of law, the medical
professional shall hold a nonrestricted license in any state of the
United States, and for physicians, a current certification by a
recognized American medical specialty board in the area or areas
appropriate to the condition or treatment under review.

(C) The medical professional shall have no history of
disciplinary action or sanctions, including, but not limited to, loss
of staff privileges or participation restrictions taken or pending by
any hospital, government, or regulatory body.

(b) If, after the third physician’s opinion, the treatment or
diagnostic service remains disputed, the injured employee may
request MPN independent medical review regarding the disputed
treatment or diagnostic service still in dispute after the third
physician’s opinion in accordance with Section 4616.3. The
standard to be utilized for MPN independent medical review is
identical to that contained in the medical treatment utilization
schedule established in Section 5307.27, or the American College
of Occupational and Environmental Medicine’s Occupational
Medicine Practice Guidelines, as appropriate.

(c) Applications for MPN independent medical review shall be
submitted to the administrative director on a one-page form
provided by the administrative director entitled “MPN Independent
Medical Review Application.” The form shall contain a signed
release from the injured employee, or a person authorized pursuant
to law to act on behalf of the injured employee, authorizing the
release of medical and treatment information. The injured employee
may provide any relevant material or documentation with the
application. The administrative director or the independent medical
review organization shall assign the independent medical reviewer.

(d) Following receipt of the application for MPN independent
medical review, the employer or insurer shall provide the
independent medical reviewer, assigned pursuant to subdivision
(c), with all information that was considered in relation to the
disputed treatment or diagnostic service, including both of the
following:

(1) A copy of all correspondence from, and received by, any
treating physician who provided a treatment or diagnostic service
to the injured employee in connection with the injury.

(2) A complete and legible copy of all medical records and other
information used by the physicians in making a decision regarding
the disputed treatment or diagnostic service.

(e) Upon receipt of information and documents related to the
application for MPN independent medical review, the independent
medical reviewer shall conduct a physical examination of the
injured employee at the employee’s discretion. The reviewer may
order any diagnostic tests necessary to make his or her
determination regarding medical treatment. Utilizing the medical
treatment utilization schedule established pursuant to Section
5307.27, or the American College of Occupational and
Environmental Medicine’s Occupational Medicine Practice
Guidelines, as appropriate, and taking into account any reports
and information provided, the reviewer shall determine whether
the disputed health care service was consistent with Section
5307.27 or the American College of Occupational and
Environmental Medicine’s Occupational Medicine Practice
Guidelines based on the specific medical needs of the injured
employee.

(f) The independent medical reviewer shall issue a report to the
administrative director, in writing, and in layperson’s terms to the
maximum extent practicable, containing his or her analysis and
determination whether the disputed health care service was
consistent with the medical treatment utilization schedule
established pursuant to Section 5307.27, or the American College
of Occupational and Environmental Medicine’s Occupational
Medicine Practice Guidelines, as appropriate, within 30 days of
the examination of the injured employee, or within less time as
prescribed by the administrative director. If the disputed health
care service has not been provided and the independent medical
reviewer certifies in writing that an imminent and serious threat
to the health of the injured employee may exist, including, but not
limited to, serious pain, the potential loss of life, limb, or major
bodily function, or the immediate and serious deterioration of the
injured employee, the report shall be expedited and rendered within
three days of the examination by the independent medical reviewer.
Subject to the approval of the administrative director, the deadlines
for analyses and determinations involving both regular and
expedited reviews may be extended by the administrative director
for up to three days in extraordinary circumstances or for good
cause.

(g) The independent medical reviewer’s analysis shall cite the
injured employee’s medical condition, the relevant documents in
the record, and the relevant findings associated with the documents
or any other information submitted to the reviewer in order to
support the determination.

(h) The administrative director shall immediately adopt the
determination of the independent medical reviewer, and shall
promptly issue a written decision to the parties.

(i) If the determination of the independent medical reviewer
finds that the disputed treatment or diagnostic service is consistent
with Section 5307.27 or the American College of Occupational
and Environmental Medicine’s Occupational Medicine Practice
Guidelines, the injured employee may seek the disputed treatment
or diagnostic service from a physician of his or her choice from
within or outside the medical provider network. Treatment outside
the medical provider network shall be provided consistent with
Section 5307.27 or the American College of Occupational and
Environmental Medicine’s Occupational Practice Guidelines. The
employer shall be liable for the cost of any approved medical
treatment in accordance with Section 5307.1 or 5307.11.

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