HOUSE BILL REPORT

                      HB 1852

                     As Reported By House Committee on:

                                  Revenue

Title:  An act relating to establishing and providing partial funding for the fire services trust fund.

Brief Description:  Providing funding for the fire services fund.

Sponsor(s):  Representatives Wang and Holland; by request of Department of Community Development and Office of Financial Management.

Brief History:

   Reported by House Committee on:

Revenue, March 1, 1991, DPS.

HOUSE COMMITTEE ON

REVENUE

Majority Report: That Substitute House Bill No. 1852 be substituted therefor, and the substitute bill do pass.  Signed by 9 members:  Representatives Wang, Chair; Fraser, Vice Chair; Holland, Ranking Minority Member; Wynne, Assistant Ranking Minority Member; Appelwick; Brumsickle; Day; Leonard; and Rust.

Minority Report: Do not pass.  Signed by 3 members:  Representatives Morton; Silver; and Van Luven.

Staff:  Rick Peterson (786-7150).

Background:  A license is required to manufacture, import, wholesale, sell or display fireworks in Washington.  A license application is made to the director of fire protection within the Department of Community Development.  A fee is charged at the time of application.   License fee revenue is deposited in the general fund.

Summary of Substitute Bill:  License fees for the manufacture, importation, sale and display of fireworks are increased.  The manufacturer license fees are increased from $500 to $2,000; the importer license fee from $100 to $1,000; the wholesaler license fee from $1,000 to $2,000; the retailer license fee from $10 to $40; the fee for public display of special fireworks from $10 to $50; and the pyrotechnic operator license fee from $5 to $10.

The fire services trust fund is created in the state treasury.  It is subject to allotment but not appropriation.  Fireworks license fees are deposited in the fire services trust fund.

Money in the fire services trust fund is dedicated to expenditures on (a) fire service personnel training, (b) maintenance and operation of the state's fire service training center, (c) lease or purchase of training equipment, (d) local grants, (e) costs of administering training programs and fireworks licensing and enforcement statutes and (f) fireworks safety education.

Substitute Bill Compared to Original Bill:  The substitute makes clear that only the increased portion of the fees go into the fire services trust fund.  The revenue from the current fees remain in the general fund.  As compared to the original bill the license fees are changed: The manufacturer license fee is increased from $1,500 to $2,000; the importer fee is reduced from $2,000 to $1,000; the wholesaler license fee remains the same at $2,000; the retail license fee is reduced from $50 to $40; the public display fee remains the same at $50; and the pyrotechnic operator permit is reduced from $25 to $10.  Fire services trust fund money may be spent on fireworks safety education.   The new fees are effective on July 1, 1991, rather than immediately.

Fiscal Note:  Requested March 3, 1991.

Effective Date of Substitute Bill:  The bill contains an emergency clause and takes effect July 1, 1991.

Testimony For:  Funding is needed for fire services personnel training.  The current fees have not changed since 1961.

Testimony Against:  Fee increases are too large for importers and pyrotechnic operators.  The immediate effective date is unfair to those that have not obtained licenses for this year.

Witnesses:  Richard Small, State Fire Marshall; and Mike Sturgeon Fire Protection Division of Department of Community Development: in favor.  Fred Smort, Pyrotechnic Operators: opposed.  Jerry Farley, Washington Independence Day Association; and Jim Salatino, Humdinger Fireworks: opposed, but willing to negotiate more reasonable fee increases.