This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0651 - Permits Required to Use, Sell, or Make Fireworks
L.R. NO. 1985-01
BILL NO. SB 651
SUBJECT: Fireworks
TYPE: Original
DATE: January 15, 1996
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
General Revenue $11,540 $11,540 $11,540
Total Estimated
Net Effect on All
State Funds $11,540 $11,540 $11,540
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
None
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
Officials of the Department of Public Safety - Division of Fire Safety assume
this proposal would raise the fee for fireworks permits from $25 to $35.
This would result in additional revenue from fireworks permits. According
to DFS officials, in the 1995 fireworks season, over $92,000 was collected
for fireworks permits. Assuming the same number of permits would be issued
at the higher rate, the fireworks permit revenue would increase to $103,540
-- an increase of $11,540. DFS officials stated that their office only
issued two (2) special fireworks permits (for displays). Using this as a
base for what would be collected by local authorities at $35 per permit, DFS
officials assumed that $35 would be deposited in the General Revenue Fund.
DFS officials assumed that additional revenue collected would not offset the
cost of printing the additional use permits as indicated by this proposal.
DFS would also be responsible to enforce all aspects of this proposal. They
assume that they would request additional FTE to regulate the "use permit"
section of this proposal, but because they were unable to estimate how many
permits this proposal might entail, DFS officials were unable to estimate the
number of FTEs would be requested or the additional expense and equipment
costs needed.
DFS officials assume that local impact would be significant. DFS staff
stated that there are approximately 800 fire departments in the State of
Missouri, 80% of which are volunteer. DFS officials noted that many
volunteer departments operate on a respond basis -- they work when needed to
respond to a fire or emergency. Therefore, DFS officials assume that locals
would not be able to aid effectively in local enforcement of this proposal.
Officials of the Department of Revenue assume that this proposal would have
no fiscal impact to their agency as they would only be responsible for
depositing the increased fee.
Because the proposal specifically authorizes the governing body of each city
and county to charge a reasonable fee to offset the costs of the "use
permits", Oversight assumes that this proposal would result in a $0 net
fiscal impact to local governments. This proposal exempts various fireworks
devices which are sold to individual users. For purposes of this fiscal
note, Oversight assumed that those fireworks devices outlined in this
proposal as exempt from the need to purchase a "use permit" would reduce the
number of "use permits" that would be purchased. Oversight also assumed that
restricting "use permits" to individuals over the age of eighteen would also
reduce the number of "use permits" which would be issued. Therefore,
Oversight assumed that costs incurred by DFS as a result of this proposal
could be absorbed with existing resources or DFS officials could request
additional resources through the normal and customary budget process.
FISCAL IMPACT - State Government FY 1997 FY 1998 FY 1999
(10 Mo.)
GENERAL REVENUE
Income-Division of Fire Safety
Fireworks permit fees $11,540 $11,540 $11,540
ESTIMATED NET EFFECT TO
GENERAL REVENUE FUND $11,540 $11,540 $11,540
FISCAL IMPACT - Local Government FY 1997 FY 1998 FY 1999
(10 Mo.)
0 0 0
DESCRIPTION
This proposal would change state fireworks regulations. It would designate
three different types of fireworks permits: 1) a "use permit" would be
required to possess and use common fireworks; 2) a "sales permit" would be
required to sell or manufacture fireworks; and 3) a "special permit" would be
required for the public display of special fireworks.
Current law does not distinguish between types of permits, but provides a
similar permit process for permits to sell and manufacture fireworks and for
the public display of special fireworks.
This proposal would require a "use permit" for any person who wished to
possess and use fireworks. The person would apply to the city or county
governing body, which would issue the proposed permits, and a reasonable fee
would be charged to offset the cost. The State Fire Marshal and the city or
county governing body would have joint authority over the regulation of "use
permits".
This proposal would increase the fee for a "special permit" from $25 to $35,
which would be issued by the local fire service authorities. The "special
permit" would be under the joint authority of the State Fire Marshal and the
local fire service authorities. One-half of the "special permit" fee would
go to the State Fire Marshal for deposit in the General Revenue Fund, the
other half would be used by the local fire service authorities to offset
permit costs.
This proposal would also increase the fee for seasonal retailers from $25 to
$35 -- all this fee would be deposited into General Revenue Fund.
A person would be allowed to appeal the decision regarding a "use permit" or
"special permit" made by a local entity to the State Fire Marshal and then to
the Administrative Hearing Commission.
No one under the age of eighteen would be allowed to obtain a permit to use
or sell fireworks. Certain fireworks items as specified in subsection 6 of
section 320.131 of this proposal would not require a "use permit".
This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.
SOURCES OF INFORMATION
Department of Public Safety - Division of Fire Safety
Department of Revenue