BILL ANALYSIS �
SB 1468
Page 1
Date of Hearing: June 28, 2012
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Isadore Hall, Chair
SB 1468 (Calderon) - As Amended: June 15, 2012
SENATE VOTE : 37-0
SUBJECT : Fireworks
SUMMARY : Authorizes the sale of "safe and sane" fireworks
between Christmas and New Year's Day in 2014-15 and 2015-16 and
provides for a two-year firework data collection effort to be
funded by voluntary contributions from the fireworks industry.
Specifically, this bill :
1)Requires the State Fire Marshall (SFM) to issue separate
one-time retail licenses authorizing the retail sale of safe
and sane fireworks from 9 a.m. on December 26 to 11.59 p.m. on
January 1 of the following year. A license shall be valid only
for this seven-day period.
2)Requires that all fireworks sold pursuant to this license be
certified as safe and sane by the SFM on or before June 15 of
the year the license if granted.
3)Prohibits the issuance of the license unless the charter city,
city, county, fire district, or city and county that have
jurisdiction over the fixed location where the fireworks would
be sold adopts an ordinance or resolution allowing the sale,
and the application for that license is received by the SFM on
or before December 15 of the year in which the validity of the
license is to commence.
4)Permits the authorizing ordinance or resolution to limit the
period of use of the fireworks sold to specified days and
hours.
5)States that the provisions regarding the issuance of licenses
shall become inoperative on January 2, 2016, and as of January
1, 1017, be repealed, unless a later statute deletes or
extends the dates.
6)Establishes the Fireworks Special Data Collection Program
(Program).
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7)Requires the SFM on or before December 1 of 2013 and 2014 to,
in consultation with the SFM's General Fireworks Advisory
Committee (Committee), determine an appropriate sum that does
not exceed the amount reasonably necessary for the fireworks
special data collection activities for the targeted
jurisdictions and the state for the following year.
8)Specifies that the moneys collected by the SFM for the program
shall be deposited in the Fireworks Special Data Collection
Fund (Fund), and continuously appropriated to the SFM for the
study and the actual reasonable costs incurred by the SFM and
the local, participating jurisdictions to develop, implement,
analyze, and report the results of the program, and may not be
used for any other purpose.
9)Specifies that the Fund may receive funds from voluntary
contributions from the fireworks industry and from available
federal and/or private grants.
10) Authorizes, on or before November 1, 2013, the SFM and the
Committee to review revise and approve a plan developed in
conjunction with one or more representatives of the fireworks
industry to collect and analyze data pertaining to the sale of
fireworks and related fire, injury, and disposal issues.
11) Specifies that the plan shall contain, but not limited to, a
sample design and selection method to accurately capture a
representative data set to be used for statistical analysis
relating to fires, damages, seizures, arrests, administrative
citations, and fireworks disposal issues caused by dangerous
fireworks and safe and sane fireworks for the periods
surrounding the 4th of July and New Year's Eve.
12) Requires the data to be verified by a university or other
nationally recognized independent survey design expert
selected by one or more representatives of the fireworks
industry and approved by the SFM. The plan for data collection
is required to attempt to collect the requisite data in the
target communities and in those communities immediately
adjoining or contiguous to the target communities.
13) Prohibits the sale of safe and sane fireworks for the period
of 9 a.m. on December 26 of 2014 and 2015 to 11:59 p.m., on
January 1 of the following year, inclusive, unless, by
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December 31 of the previous year the SFM, in consultation with
the Committee, determines that there are sufficient funds
within the Fund to cover the actual and reasonable costs
associated with the Program for that year.
14)States that the provisions regarding the Program and the Fund
shall become inoperative on January 15, 2016, and as of
January 1, 2017, are repealed, unless a later statute deletes
or extends the dates.
15) Authorizes a charter city, city, county, city and county, or
fire protection district, or city and county that adopts an
ordinance or resolution, to require each applicant to pay a
fee representing a pro rata portion of the actual and
reasonable costs incurred on or before January 2, 2016 to:
a) Processing and issuing permits.
b) Inspection of fireworks stands.
c) Public education and awareness campaigns regarding the
safe and responsible use of safe and sane fireworks, and
the dangers and risks posed by the use of illegal
fireworks.
d) Enforcement of relevant local ordinances and
resolutions, including extra personnel time and cleanup
costs.
e) Fire operation and suppression efforts that are directly
related to safe and sane fireworks.
16) Requires the authorizing ordinance or resolution to specify
the pro rata share of costs to be recovered.
17) Prohibits the pro rata share of costs paid by licensees from
exceeding 7% of the gross sales of the fireworks sold in the
jurisdiction during the applicable period, although a costs
recovery ordinance or resolution in effect on or before June
30, 2012 may supersede that prohibition.
18) Makes findings and declarations related to the need for
additional data collection related to fireworks, which shall
be paid for through voluntary contributions from the fireworks
industry.
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EXISTING LAW
1)Establishes, under the State Fireworks law, a comprehensive
scheme for regulating the use, manufacture, wholesale, import,
export, and sale of all classes of fireworks.
2)Authorizes the SFM to license retailers to sell certified safe
and sane fireworks from June 28 to July 6 each year, unless
otherwise prohibited by local ordinance.
3)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.
4)Requires the SFM to establish and collect original and annual
renewal fees for fireworks licenses, not to exceed the amount
necessary to cover the SFM's administrative and enforcement
costs.
FISCAL EFFECT : Unknown
COMMENTS :
Author's Statement : According to the author, "SB 1468 preserves
local control and, at the same time, assists in raising the
necessary funds to assists state and local fire and law
enforcement agencies to have the critical financial resources to
deal with the enforcement, education, fire operation,
suppression and training activities surrounding both illegal
fireworks and safe and sane fireworks use in their community.
Local jurisdiction could generate roughly an additional $4.9
million in new fee revenue for the 4th of July each year and
over another $1 million for the New Year's period."
In addition, the Author claims that, "SB 1468 will allow
nonprofit organizations throughout the state and additional
opportunity to raise critical dollars to fund critical programs
in their community utilizing a 100% consignment fundraising
tool."
Background : Current law authorizes the retail sale of safe and
sane fireworks from June 28 to July 6 annually pursuant to a
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license issued by SFM, unless otherwise prohibited or regulated
by law or ordinance. As of April 2012, there were 290
communities in California that permitted the sale and use of
state-approved fireworks each 4th of July.
Sellers are first required to obtain a license, good for one
year, from the SFM and pay associated fees to the state. Local
jurisdictions may include an administrative fee related to the
processing of permits and a percentage of gross sales collected
by the jurisdiction. This is generally used for education,
over-time staffing, enforcement duties and other fireworks
related additional activities.
Fireworks stands are generally run by non-profit groups such as
battered women's shelters, service clubs (such as Rotary), Boy
Scouts and Girl Scout troops, PTAs, Little Leagues, and other
local organizations. If an organization is selling safe and
sane fireworks without a permit the individual or organization
could face a significant fine and possible criminal charges.
City requirements for fireworks sale permits vary slightly from
city to city, but each applicant generally has to comply with
the same basic requirements. The non-profit organization must
obtain designation as a certified, legal non-profit from the
State of California; pay a city permit fee and a sales booth
inspection fee for building and safety, and State Fire Marshal
compliance; pay an additional annual State Fire Marshal fee;
show proof of insurance with various amounts of coverage in case
of property damage or injury in the vicinity of the sales booth;
obtain a sales site, usually in a strip mall or other commercial
location; take delivery of the sales booth; attend a meeting
with city officials to learn of any annual municipal code
updates or city council policy changes relating to the sale of
legal fireworks; obtain a Seller's Permit from the Board of
Equalization (BOE) for required sales tax collection; and take
delivery of the product, supply a supply a sales staff to sell
the product and determine the price they will charge for the
product.
The SFM determines which fireworks are legal. The "safe and
sane" varieties carry an official SFM seal. Everything else is
classified dangerous and illegal. It has been reported, that law
enforcement agencies confiscate an average of about 40,000
pounds of illegal fireworks every year.
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The SFM is responsible for collecting and disposing of unsafe
fireworks. Because these fireworks contain perchlorates, they
must be disposed in a manner that meets environmental
regulations. The California Health and Safety Code requires the
SFM to dispose of "dangerous fireworks" within 60 days upon
receiving notification from the local jurisdictions that seized
them.
Fireworks related Injuries : In 2010 the National Fire
Protection Association released a study titled,
"Fireworks-Related Injuries, Deaths and Fires," which found that
in 2010, 8,600 fireworks-related injuries were treated in U.S.
hospital emergency rooms. In addition, the study found that in
2010, an estimated 15,500 fires were started by fireworks in the
United States. These fires resulted in an estimated eight
reported civilian deaths, 60 civilian injuries and $36 million
in direct property damage."
According to the study, "the risk of fire death relative to
usage shows fireworks to be more risky per hour of usage than
cigarettes. On Independence Day in a typical year, far more U.S.
fires are reported than on any other day and more than twice as
many as on an average day. Fireworks account for two out of
five of those fires, more than any other cause of fires. The
trend in fireworks-related injuries has been mostly in the range
of 8,300 to 9,800 per year since 1996, except for spikes in
2000, primarily due to celebrations around the advent of a new
millennium." In addition, the study found that 83% of emergency
room fireworks injuries involved fireworks that Federal
regulations permit consumers to use. Sparklers, fountains, and
novelties alone accounted for 43% emergency room fireworks
injuries.
This study implies that any increase in fireworks use, whether
legal or not, would only increase the number of fireworks
related injuries and fires.
Arguments in Support : According to the American Promotional
Events, Inc (TNT Fireworks), the sponsor of the bill, "Nonprofit
organizations and charities throughout California are suffering
from the perfect storm; donations are down, government funding
us decimated, and the need for social services is skyrocketing.
SB 1468 will allow nonprofit organizations throughout the state
an additional opportunity to raise critical dollars to fund
critical programs in their community."
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Arguments in Opposition : According to the City of Burbank,
"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 has purchased
materials several blocks away from using the fireworks in an
illegal fashion in a neighboring community. While this bill
authorizes the local agency to collect seven percent of gross
sales, it would not nearly cover the additional costs of
prevention and suppression enforcement related to these sales."
In addition, the Orange County Fire Authority states that, "this
bill may have an unsustainable fiscal impact on fire departments
and law enforcement agencies that already must increase staffing
during the holiday periods. The undue burden and costs to local
agencies will far exceed the permitting fee structure in this
bill. For example, the bill does not account for its impact on
jurisdictions that do not permit firework sales at all. We know
firsthand that fireworks do not stay contained to those
communities that permit their use. Yet, there is no mechanism in
the legislation to account for this impact."
Policy Considerations :
1)In March 2012, the Chair of the Joint Legislative Committee on
Emergency Management, Assemblymember Bonnie Lowenthal,
inaugurated a stakeholder working group to discuss the full
spectrum of issues associated with fireworks sales, use, and
disposal in California with the objective of crafting and
introducing comprehensive fireworks reform legislation
sometime in 2013-2014. The working group aims to discuss
issues including environmental concerns regarding fireworks
disposal, uncertainty of funding options, the need for data on
the safety and cost impacts of fireworks use, and problems
with enforcement. The committee may wish to consider whether
moving forward with a bill, before the working group concludes
their work, would be wise public policy.
2)Similar to the above consideration, the committee may wish to
consider whether it would be premature to allow for the sale
of "safe and sane" fireworks before the data collection set
forth in the bill has concluded.
3)The bill currently prohibits the pro rata share of costs paid
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by licensees from exceeding 7% of the gross sales. The
committee may wish to consider removing the cap to ensure that
local jurisdictions to recover all costs associated with this
bill.
Prior legislation :
AB 1371 (V. Manuel P�rez) 2011-12 Legislative Session. Permits
the sale of "safe and sane" fireworks for the seven days leading
up to New Year's Day. (Never heard in Assembly Governmental
Organization Committee)
SB 839 (R. Calderon), Chapter 563, Statutes of 2007. Revises
the penalties for possession and transportation of dangerous
fireworks, as specified. SB 839 established a fund from the
proceeds of all fines and fees collected in relation to
dangerous fireworks violations with those funds earmarked for
enforcement of dangerous fireworks law.
AB 476 (De La Torre), 2007-08 Legislative Session. Increases
the fines for violating state fireworks laws from $1,000 to not
less than $2,000 and not more than $5,000, and authorizes the
impounding of vehicles used to transport "dangerous fireworks"
by SFM. (Held in Assembly Appropriations)
AB 2310 (Torrico), 2005-06 Legislative Session. Reduces the
penalty for personal use of prohibited fireworks, as defined,
from a misdemeanor to an infraction, subject to a citation and a
$200 civil penalty, a portion of that penalty to be transferred
to the SFM for disposal of fireworks and a portion to remain
with the local fire protection agency for administrative costs.
(Failed on the Senate Floor)
AB 1295 (Bermudez), 2005-006 Legislative Session. Would have
authorized the sale of fireworks from December 26 through
January 1 each year and established the SFM Dangerous Fireworks
Management Fund. (Held in Assembly Appropriations Committee)
AB 923 (Chavez), 2005-06 Legislative Session. Would have
authorized the sale of fireworks from December 26 to January 1
and creates the SFM Dangerous Fireworks Management Fund for the
deposit of surcharges assessed on the sale of fireworks to pay
for the disposal costs of seized fireworks. (Never heard in
Assembly Governmental Organization Committee)
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AB 2090 (Miller), Chapter 363, Statutes of 1998. Authorized the
SFM to license the sale of fireworks from December 26, 1999
through January 1, 2000 in order to celebrate the millennium.
REGISTERED SUPPORT / OPPOSITION :
Support
American Promotional Events, Inc. (TNT Fireworks) (Sponsor)
349 local non-profit, religious, educational and social
organizations
467 individuals
Opposition
City of Burbank
Orange County Fire Authority
Analysis Prepared by : Felipe Lopez / G. O. / (916) 319-2531