BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                  SB 1468|
          |Office of Senate Floor Analyses   |                         |
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                                 THIRD READING


          Bill No:  SB 1468
          Author:   Calderon (D)
          Amended:  5/17/12
          Vote:     21

           
           SENATE GOVERNANCE & FINANCE COMMITTEE  :  5-1, 4/25/12
          AYES:  Wolk, DeSaulnier, Hancock, Hernandez, Liu
          NOES:  Fuller
          NO VOTE RECORDED:  Dutton, Kehoe, La Malfa

           SENATE APPROPRIATIONS COMMITTEE  :  6-0, 5/24/12
          AYES:  Kehoe, Walters, Alquist, Dutton, Lieu, Steinberg
          NO VOTE RECORDED:  Price


           SUBJECT  :    Fireworks

           SOURCE  :     Author


           DIGEST  :    This bill allows the sales of safe and sane 
          fireworks before New Years Eve of 2014 and 2015.  This bill 
          also implements a specified fireworks data collection 
          program, funded by the fireworks industry.  

           ANALYSIS  :    The State Fireworks Law (Law) establishes a 
          comprehensive scheme for regulating the use, manufacture, 
          wholesale, import, export, and sale of all classes of 
          fireworks. 

          The Law authorizes the State Fire Marshal (SFM) to license 
          retailers to sell certified "safe and sane" fireworks from 
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          June 28 to July 6 each year, unless otherwise prohibited by 
          local ordinance.  Currently, 288 California communities 
          permit the sale and use of state-approved fireworks each 
          fourth of July.

          The Law authorizes the SFM to issue a wholesaler's license 
          to allow the sale and transportation of all types of 
          fireworks to licensed retailers, or retailers operating 
          under a permit, licensed public display operators, and 
          other licensed wholesalers in California.

          The SFM must establish and collect original and annual 
          renewal fees for fireworks licenses.  The fees cannot 
          exceed the amount necessary to cover the SFM's 
          administrative and enforcement costs.  The original and 
          annual renewal fee for a retail license is $50.  The fee 
          for a wholesale license is $3000.

          This bill authorizes the SFM 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:

          1. Authorizes a local agency to adopt an ordinance 
             permitting the sale of fireworks within its 
             jurisdiction, and authorizes 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.  

          2. Requires the SFM to issue licenses for the retail sale 
             of fireworks during the authorized period.

          3. Requires the SFM'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.

          4. Requires 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 







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             fireworks for the periods around both July fourth and 
             New Year's Eve.

          5. Requires the plan to be developed by the fireworks 
             industry and requires the data set to be verified by a 
             university or recognized independent survey design 
             expert.

          6. Requires the SFM, by December 1 of 2013 and 2014 and in 
             consultation with the Fireworks Advisory Committee, to 
             determine the sum reasonably necessary for the SFM and 
             participating local jurisdictions to develop, implement, 
             analyze, and report specified data pursuant to the 
             approved plan.

          7. Requires the SFM to collect funds from the fireworks 
             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 SFM for costs incurred 
             by the SFM and local participating jurisdictions related 
             to the data collection program.

          8. Requires the SFM 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.

          9. Sunsets these provisions in January of 2016.

           Prior Legislation
           
          AB 1295 (Bermudez, 2005), which would have allowed New 
          Year's fire-works 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.








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           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes   
          Local:  Yes

          According to the Senate Appropriations Committee:

             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 SFM 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 SFM 
             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 SFM 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 SFM to issue retail licenses for the 
             sale of safe and sane fireworks around New Year's Eve, 
             fully covered by license fees.

           SUPPORT  :   (Verified  5/24/12)

          A Home Away From Home
          Abundant Life Assemblies
          African Village Project
          American Legion Post #832 #1
          American Legion Post #832 #2
          American Promotional Events, Inc.
          American River Alano Club AA
          Antelope Christian Center
          Antelope Jr. Titans Youth Football
          Antelope Lions 
          Antelope Little league
          Arden - Carmichael Inc.







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          Atkinson Youth Services
          Bella Vista Booster #1
          Bella Vista High Band Boosters
          Bradshaw Christian School
          Breakfast Optimist Club
          Breakfast Optimist Club #2
          Calvary Evangalism Center #2
          Cambridge Heights Parent Faculty Club 
          Camellia Assembly #108
          Capitol Strokers
          Carmichael Swim Team
          Chicano Correctional Workers Association
          Church of the Harvest
          Cibara Shrine Motor Corporation
          Citrus Heights Lions
          Coast Guard Chief Petty Officers Association
          College Glen Little League #2
          Consumnes River Aquatics
          Cordova Community Council
          Cordova Girls Softball
          Cordova High School Music Boosters
          Cordova Jr. Lancers
          Cornerstone Bible Church of Carmichael
          Crosspointe Church
          D.A.R.T
          Day By Day Connections Foundation Inc.
          Destiny Faith Center
          Divine Mercy Catholic Church
          El Camino Cross Country
          El Camino High School Football
          El Sendero De La Cruz
          Elk Grove High School Band
          Emanuel Methodist Church
          Enlightened Minds Group Inc.
          Ephraim Clampin Vipers
          Faith Lutheran Church
          Feeding God's Children
          Fifty 5 Five
          First Apostolic School
          First Gospel Assembly of Sacramento
          Florin High School Band/Athletics
          Florin High School Boosters
          Florin High School Pigskin Boosters
          Florin Rebekah Lodge







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          Folsom American Little League
          Folsom Athletic Association
          Fort Sutter Racing Pigeon Club
          Friends Church
          Girls Sports Association
          Golden State Lions Club
          Grace Church Music
          Grace Evangelical Free Church
          Harvest Church
          Highlands High School Football Boosters
          Hmong Christian Church #1
          Hope United Methodist Church
          Inderkum Athletic Boosters Club
          International Life Savings
          Jesuit High School Boosters Club
          Job's Daughters #336
          Job's Daughters #347
          Job's Daughters Bethel #291
          Job's Daughters Bethel #74
          Jr Foothill Mustangs
          Kennedy High School Athletic Boosters
          Kennedy High School Athletics/Activities
          Knights of Columbus #4443
          Knights of Columbus #4964
          Knights of Columbus #5322
          Knights of Columbus #6922
          Knights of Columbus #7241
          Knights of Columbus #9469
          Ladies of Charity
          Laguna Creek High School Athletics
          Laguna Creek High School PTSO
          Laguna Creek Youth Football Organization
          Land Park Lions Club
          Liberty Ministries
          Lifepointe Church of the Nazarene
          Make A Wish Sunday Reno Mixers
          Manna Ministries
          Marshallese Assembly of God
          McClatchy High School Music Boosters
          Mesa Verde High School Boosters
          Military Order of the Cootie
          Modified Motorcycle Association of California
          Modified Motorcycle Association of Elk Grove
          Moose Lodge







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          Mustard Seed Faith Christian Fellowship
          Natomas High School Athletic Boosters
          Natomas Jr. Nighthaws Football and Cheer
          New Direction Christian Center
          New Life Community Church
          Nor Cal Student Athletes
          Northridge Little League
          Oasis Christian Mission Center
          Orangevale Huskies
          Orangevale Pentecostal Church of God
          Our Faith Works
          Paradise Baptist Church
          Parkway Swimming Club
          Peace Presbyterian Church
          Pentecostal Church of God
          People of Purpose
          Phi Beta Sigma Fraternity, Inc.
          Praise Tabernacle Community Church
          Ram Boosters Club
          Rio Americano Athletic Booster
          Rio Linda Chamber of Commerce
          Rio Linda High School Touchdown Club
          Rio Linda Jr. Knights
          River City Christian Academy
          Riverside Wesleyan Church 
          Robla Education Foundation
          Rosemont Little League
          Sac Raiders Youth Organization
          Sacramento Consolidated Charities
          Sacramento County 4-H Club North
          Sacramento High Athletic Boosters Club
          Sacramento Sirens
          Sacramento Tiny Tots Preschool
          Sacramento Warlords
          Sacramento Youth Band
          Sacred Heart Cenacle
          San Juan High School Boosters
          Sheldon High School Baseball Booster Club
          Sheldon High School Boys Basketball
          Sheldon High School Football Boosters
          Sheldon Jr. Huskies
          Shepherd of Life Missionary
          Shepherd's Love
          Sinag-tala Filipino Theater and Performing Arts Association 







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          South Sacramento Aglow
          St Mary's Youth Group
          St. Charles Borromeo Church
          St. Francis Cross Country Team
          St. Jude Christian Tabernacle
          St. Luke's Lutheran Church
          St. Mark Missionary Baptist Church
          Strength Mentoring Program
          Tabernacle Baptist Church
          Taylor Street Missionary Baptist Church
          The Family Church of Sacramento
          The Lords Church
          The Wall Youth Foundation
          Thunderballs Bowling Club
          Trinity Life Center
          Twist and Tumble Parents
          United Student Athletics, Inc.
          V.F.W. #8985
          West Sacramento American Legion Baseball
          West Sacramento Youth Resource Coalition
          Women of AT&T
          Zion Lutheran Church
          Zodiac Stars of Sacramento
          Over 600 letters from individuals received by author

           OPPOSITION  :    (Verified  5/24/12)

          Orange County Fire Authority
          City of Burbank, Office of the Mayor

           ARGUMENTS IN SUPPORT  :    According to the author:

            This economic recession has not only weakened our Fire 
            and Law enforcement services.  Its economic impact has 
            extended to services more broadly, especially within the 
            States non-profit sector.  Non-profits provide a number 
            of services to Californians including:  job placement, 
            health, environmental, and public safety.  Given the 
            economic recession, these non-profits have seen a 
            reduction in donations and government funding grants.  
            This has drastically inhibited their ability to offer 
            their services, during a time when the need for services 
            has increased exponentially.







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            The availability of safe and sane fireworks is the smart 
            alternative for illegal firework usage.  After legalizing 
            the sale of safe and sane fireworks in 2003, Cathedral 
            City and Riverside County both witnessed a sharp decrease 
            in the use of illegal fireworks.  Tulare County, which 
            also legalized the sale of safe and sane fireworks in 
            2003, reported a decrease in calls for fire related 
            services during subsequent years.  In addition, money 
            generated from the sale of safe and sane fireworks will 
            go directly to the suppression of illegal fireworks and 
            illegal firearm usage.

            SB 1468 creates a wise policy approach to a very serious 
            problem while simultaneously establishing a much needed 
            revenue generating opportunity for many California 
            non-profits.

           ARGUMENTS IN OPPOSITION  :    The opposition states:

            Sales of fireworks in adjoining communities are already 
            making it difficult for communities to police the sale 
            and use of these materials adjacent to the fourth of July 
            holiday.  It is virtually impossible to prevent a 
            resident who had purchased materials several blocks away 
            from using the fireworks in an illegal fashion in a 
            neighboring community.

            While the bill authorizes the local agency to collect 
            seven percent of gross sales during either or both 
            holiday sales period, it would not nearly cover the 
            additional costs of prevention and suppression 
            enforcement related to these sales.  
           

          AGB:kc  5/24/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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