BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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          |SENATE RULES COMMITTEE            |                       AB 1486|
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                                    THIRD READING


          Bill No:  AB 1486
          Author:   Assembly Budget Committee
          Amended:  8/22/14 in Senate
          Vote:     27 - Urgency


           ASSEMBLY FLOOR  :  Not relevant


           SUBJECT  :    Fireworks:  tax on distribution

           SOURCE  :     Author


           DIGEST  :    This bill requires, commencing January 1, 2015, a  
          distributor, as defined, to pay a tax upon distribution of safe  
          and sane fireworks to be used for the training of public safety  
          agencies in the proper handling and management of dangerous  
          fireworks and to further assist in public safety efforts within  
          the general public as well as public safety agencies on the  
          proper and responsible use, seizure, and storage of safe and  
          sane fireworks.

           ANALYSIS  :    

          Existing law:

          1.Authorizes the annual retail sale of safe and sane fireworks  
            from June 28 to 
          July 6, inclusive, pursuant to a license issued by the State  
            Fire Marshal, unless otherwise prohibited or regulated by law  
            or ordinance.

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          2.Authorizes various entities, including the State Fire Marshal,  
            to seize certain prohibited fireworks.

          3.Requires an authority that seizes fireworks to notify the  
            State Fire Marshal of the seizure and to provide specified  
            information.

          4.Requires the State Fire Marshal to dispose of the seized  
            fireworks and requires dangerous fireworks to be disposed of  
            according to specified procedures.

          5.Establishes the State Fire Marshal Fireworks Enforcement and  
            Disposal Fund (Fund) in the State Treasury.

          6.Requires monies in the Fund to be used by the State Fire  
            Marshal for various purposes, including for the education of  
            public safety agencies in the proper handling and management  
            of dangerous fireworks and 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.

          7.Makes a violation of the law and regulations relating to  
            fireworks a crime.

          This bill:

          1.Requires, beginning January 1, 2015, a distributor pay a tax  
            upon distribution of safe and sane fireworks at the rate of  
            ($0.10) per pound of the total weight of the fireworks,  
            including any packaging.

          2.Requires the funds be deposited into the Fund, to be used upon  
            appropriation by the Legislature, for the training of public  
            safety agencies in the proper handling and management of  
            dangerous fireworks and to further assist in public safety  
            efforts within the general public as well as public safety  
            agencies on the proper and responsible use, seizure, and  
            storage of safe and sane fireworks. 

          3.Allows the State Fire Marshal to adjust the rate, not to  
            exceed ($0.20) per pound, at a public meeting to be held in  
            January of each year in order to provide sufficient revenues  
            to pay for the estimated training, disposal and Fund  

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            administration costs.

          4.Allows for the seizure of safe and sane fireworks distributed  
            in this state by an unlicensed distributor and for which the  
            required tax has not been paid.

          5.Provides that violations of this bill does not constitute a  
            crime.

          6.Allows monies in the Fund to be expended on the disposal of  
            any seized fireworks and any infrastructure requirements  
            necessary for the disposal of fireworks, and the  
            administration of the Fund by the Office of the State Fire  
            Marshal or its contracted designee.

          7.Authorizes the State Fire Marshal to adopt emergency  
            regulations necessary to implement this bill.

          8.Defines the terms "distribution" and "distributor" for  
            purposes of this bill.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No



          JA:e  8/26/14   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  NONE RECEIVED

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