BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
SB 1468 (Calderon) - Fireworks sales before New Year's Eve.
Amended: May 17, 2012 Policy Vote: G&F 5-1
Urgency: No Mandate: Yes
Hearing Date: May 21, 2012 Consultant: Mark McKenzie
This bill meets the criteria for referral to the Suspense File.
Bill Summary: SB 1468 would allow the sales of safe and sane
fireworks before New Year's Eve of 2014 and 2015. The bill
would also implement a specified fireworks data collection
program, funded by the fireworks industry.
Fiscal Impact:
Unknown costs related to the special fireworks special data
collection program (non-state funds). These activities
would be funded by voluntary contributions from the
fireworks industry, and the Fire Marshal must determine that
sufficient funds are on deposit prior to authorizing the
sale of safe and sane fireworks.
Potential for unknown increased costs to the Fire Marshal
related to disposal of illegal fireworks. If there were a
10% increase in illegal fireworks seizures related to the
sale of safe and sane fireworks around New Year's Eve, costs
would be approximately $45,000 (General Fund).
Absorbable costs to the State Fire Marshal and the
Fireworks Advisory Committee to review and approve a plan to
collect and analyze data on fire, injury, and disposal
issues related to the sale of fireworks, and to determine
the amount necessary to cover costs associated with the data
collection program.
Minor costs to the State Fire Marshal to issue retail
licenses for the sale of safe and sane fireworks around New
Year's Eve, fully covered by license fees.
Background: Existing law authorizes the State Fire Marshal to
license retailers to sell certified "safe and sane" fireworks
from June 28 to July 6 each year, unless otherwise prohibited by
SB 1468 (Calderon)
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local ordinance. Currently, 288 California communities permit
the sale and use of state-approved fireworks each 4th of July.
Last year, the Fire Marshal issued 2,927 retailer licenses. The
original and annual renewal fee for a retail license is $50.
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 9:00 on
December 26, 1999, until midnight of January 1, 2000 (AB 2090,
Miller, Chap 363/1998).
Proposed Law: SB 1468 would authorize the State Fire Marshal to
issue retail licenses for the sale of safe and sane fireworks
from 9am on December 26 of 2014 and 2015 to midnight on January
1 of the following year, as specified. Specifically, this bill
would:
Authorize a local agency to adopt an ordinance permitting the
sale of fireworks within its jurisdiction, and authorize the
local entity to charge permit fees that cover costs to issue
the permits, inspect retail stands, fund public education
efforts, enforce provisions of the fireworks law, and suppress
fires, as specified.
Require the Fire Marshal to issue licenses for the retail sale
of fireworks during the authorized period.
Require the Fire Marshal's Fireworks Advisory Committee, by
November 1, 2013, to review and approve a plan to collect and
analyze data on the sale of fireworks and related fire,
injury, and disposal issues.
Require the plan to contain a sample design and selection
method to capture statistically relevant data relating to
fires, damages, seizures, arrests, administrative citations,
and fireworks disposal issues caused by the sale of dangerous
and safe and sane fireworks for the periods around both July
4th and New Year's Eve.
Require the plan to be developed by the fireworks industry and
require the data set to be verified by a university or
recognized independent survey design expert.
Require the Fire Marshal, by December 1 of 2013 and 2014 and
in consultation with the Fireworks Advisory Committee, to
determine the sum reasonably necessary for the Fire Marshal
and participating local jurisdictions to develop, implement,
analyze, and report specified data pursuant to the approved
plan.
Require the Fire Marshal to collect funds from the fireworks
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industry, in addition to any available federal or private
grants, and deposit the funds into the Fireworks Special Data
Collection Fund. The funds would be continuously appropriated
to the Fire Marshal for costs incurred by the Fire Marshal and
local participating jurisdictions related to the data
collection program.
Require the Fire Marshal to make a determination that there
are sufficient funds on deposit to cover costs associated with
the data collection program for the following year by December
31 of 2013 and 2014 in order to authorize sales of safe and
sane fireworks around New Year's Eve of the following year.
Sunset these provisions in January of 2016.
Related Legislation: SB 1468 is not the first legislative
proposal to authorize licensed fireworks sales during the week
before New Year's Day.
AB 1295 (Bermudez, 2005), which would have allowed New Year's
fireworks sales and used fee revenues to pay for disposal
costs associated with seized fireworks, died in the Assembly
Appropriations Committee.
AB 1371 (V. Manuel Perez, 2011), which would have allowed New
Year's fireworks sales and authorized local governments to
impose permit fees, died in the Assembly Governmental
Organization Committee.
Staff Comments: The primary direct costs of this bill are
related to the special fireworks data collection program. The
plan would be designed by the fireworks industry, must be
reviewed and approved by the Fire Marshal's Fireworks Advisory
Committee, and must accurately capture a set of specified data
for use in statistical analysis. Costs for the Fire Marshal and
local jurisdictions are unknown at this time and would depend
upon the design of the plan, the number of participating
jurisdictions, and the types of data that must be collected and
reported. The bill requires the Fire Marshal to determine the
amount that would be needed by participants in the succeeding
year for participants to develop, implement, analyze, and report
the necessary data, and collect that sum from the fireworks
industry and any available federal and private grants for
deposit into the new special fund. Costs to private industry
are indeterminable at this time, but staff assumes the annual
amount necessary to perform the activities related to the
special fireworks data collection program would exceed $50,000.
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The State Fire Marshal has the responsibility for the disposal
of illegal fireworks seized in the state. Currently,
approximately 50,000 pounds of illegal fireworks are received
each year and total annual disposal costs are around $450,000.
It is unclear whether the authorization to sell safe and sane
fireworks around New Year's Eve would have an impact on the
seizure of illegal fireworks. For illustrative purposes, if
there were a 10% increase in the seizure of illegal fireworks
related to the new authority to sell safe and sane fireworks,
State Fire Marshal disposal costs would increase by
approximately $45,000.