Bill Drafting TemplateVersion XP 1.0Converted to Office XP      HB2495
           03-02-2005 15:56 SFI164

Stricken language would be deleted from and underlined language would be added to the law as it existed prior to this session of the General Assembly.


      03-02-2005 15:56 SFI164
State of Arkansas          
85th General Assembly     A Bill     
Regular Session, 2005            2495




For An Act To Be Entitled


AN ACT CONCERNING PERMITS AND FEES FOR FIREWORKS DISPLAYS; AND FOR OTHER PURPOSES.

Subtitle


AN ACT CONCERNING PERMITS AND FEES FOR
FIREWORKS DISPLAYS.


BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:

      SECTION . Arkansas Code § is amended to read as follows:
      20-22-701. Definitions.
      As used in this subchapter, unless the context otherwise requires:
            (1) "Distributor" means any person engaged in the business of making sales of fireworks at wholesale in this state to any person engaged in the business of making sales of fireworks either as a jobber or a retailer or both;
            (2) "I.C.C. Class C common fireworks" means all articles of fireworks classified as "I.C.C. Class C common fireworks" as defined in § 20-22-708 and in the regulations of the Interstate Commerce Commission for the transportation of explosives and other dangerous articles;
            (3) "Importer" means any person who imports, brings in, or causes to be brought in any fireworks from outside the geographical limits of the State of Arkansas into this state;
           (4) "Jobber" means any person engaged in the business of making sales of fireworks at wholesale to any other person engaged in the business of making sales at retail. The word "wholesaler" shall have the same meaning as "jobber";
           (5) "License" means the written authority of the Director of the State Police issued under the authority of this subchapter to a distributor, jobber, wholesaler, manufacturer, importer, or retailer for a fee as provided in § 20-22-707.
            (6) "Manufacturer" means any person engaged in the making or construction of fireworks in the State of Arkansas or any person engaged in the making or construction of fireworks who ships or causes to be shipped, or transports or causes to be transported, any items of fireworks into the State of Arkansas;
           (7) "Permit" means the written authority of the Director of the State Police issued without charge for a public fireworks display under the authority of this subchapter;
           (8) "Person" means any corporation, association, copartnership, or one (1) or more individuals;
            (9) "Retailer" means any person engaged in the business of making sales of fireworks at retail to consumers or to persons other than a distributor or jobber;
            (10) "Sale" means barter, exchange, gift, or offer therefor, and each such transaction made by any person, whether as principal, proprietor, agent, servant, or employee;
           (11) "Shooter" means any person conducting any combination of fireworks, pyrotechnics, or special effects displays within the State of Arkansas; and
           (11)(12) "Special fireworks" means all articles of fireworks that are classified as Class B explosives in the regulations of the Interstate Commerce Commission and shall include all articles other than those classified as Class C but shall not include such dangerous items of commercial fireworks as cherry bombs, tubular salutes, repeating bombs, aerial bombs, torpedoes, and fireworks containing more than fifty (50) milligrams of explosive powder;.

      SECTION . Arkansas Code § is amended to read as follows:
      20-22-702. Public displays excepted.
     (a) Nothing in this subchapter shall be construed as applying to the shipping, sale, possession, and use of fireworks for public displays by holders of a permit for a public display to be conducted in accordance with the rules and regulations promulgated by the Director of the State Police. Such items of fireworks which are to be used for public display only and which are otherwise prohibited for sale and use within the state shall include display shells designed to be fired from mortars and display set pieces of fireworks classified by the regulations of the Interstate Commerce Commission as Class B special fireworks and shall not include such items of commercial fireworks as cherry bombs, tubular salutes, repeating bombs, aerial bombs, and torpedoes.
     (b)(1) Public displays shall be performed only under competent supervision and after the persons or organizations making the displays shall have applied for and received a permit for the displays issued by the Director of the State Police.
            (2) Applications for permits for public displays shall be made in writing at least two (2) days in advance of the proposed display, and the application shall show that the proposed display is to be so located and supervised that it shall not be hazardous to life, limb, or property.
            (3) If the display is to be performed within the limits of a municipality, the application shall so state and shall bear the signed approval of the chief supervisory officials of the fire and police departments of the municipality.
     (c)(1) Permits issued shall be limited to the time specified therein and shall not be transferable.
           (2) Only licensed distributors who are licensed importers or who purchase from licensed importers may possess special fireworks for resale to holders of a permit for a public fireworks display.
     (d)(1) The Department of Arkansas State Police may charge a fee not to exceed fifty dollars ($50.00) for each permit issued under this section.
           (2) The total fee for all permits issued during a school year to an educational institution that provides instruction for grades kindergarten through twelve (K-12) shall not exceed twenty-five dollars ($25.00).
           (3) All permit fees shall be remitted to the Department of Arkansas State Police and shall be deposited in the State Treasury as special revenues to the credit of the Department of Arkansas State Police Fund.

      SECTION . Arkansas Code § is amended to read as follows:
      20-22-706. License required - Penalty.
      (a) No person shall do any act for which a license or permit is required by this subchapter or by local authorities acting pursuant to it unless he or she holds the proper federal, state, and local license and, if applicable, a permit.
      (b) Whoever violates subsection (a) of this section shall be punished by a fine of not less than one hundred dollars ($100) nor more than five thousand dollars ($5,000) and may be prohibited from applying for a license or a permit for up to five (5) years.

      SECTION 4. Arkansas Code § is amended to read as follows:
      20-22-707. License - Application and issuance.
     (a)(1) An applicant, in order to engage in the sale of fireworks as a manufacturer, importer, distributor, wholesale jobber, or retailer, or shooter must submit to the Director of the Department of Arkansas State Police an application on a form provided by the director, before April 1 of each year, setting forth such facts and information as the director may determine necessary and proper, considering the requirements of public health, safety, and welfare. The license for manufacturers, importers, distributors, wholesale jobbers, and retailers shall be effective from and shall date from May 1 of the year of issuance. It shall be valid through April 30 of the following year. The license for shooters shall be effective from and shall date from May 1 of the year of issuance. It shall be valid through April 30 of the following fifth year. Upon approval of the application by the director and before the issuance of the license therefor, the applicant shall pay to the director a license fee for each type of business conducted to the following schedule:
                  (A) Manufacturer ................. $1,000.00
                  (B) Importer ..................... 500.00 750.00
                  (C) Distributor ................... 250.00 500.00
                  (D) Jobber Wholesaler ............... 50.00 100.00
                  (E) Retailer ........................ 10.00 25.00
                 (F)(i) Shooter ............................ 50.00
                       (ii) This fee shall be waived if the applicant verifies that the applicant is a professional or volunteer firefighter.
           (2) However, retailers may purchase their licenses from their vendors, which include importers, distributors, or jobber wholesalers. The retailers' licenses shall be made available by the Department of Arkansas State Police to the vendors in books of twenty (20) licenses to a book. The vendors shall record the sales of the licenses to retailers and submit their records to the director semiannually on January 31 and July 31 of each year. Each semiannual report shall cover the preceding six-month period. Vendors may exchange unsold licenses for current licenses at no charge to them or may secure a refund of the fees paid for retailer licenses which are not sold by vendor. Failure to obtain the permit shall be deemed a violation of this subchapter.
     (b)(1) Renewal of outstanding licenses to engage in the sale of fireworks as a manufacturer, importer, distributor, jobber, or retailer, or shooter will be made effective by payment of the annual fee, as set forth in subsection (a) of this section, to the director, on or before May 1 of each year. License renewal applications postmarked after May 1 of each year shall be assessed a late penalty in an amount equal to two (2) times the annual renewal fee, as set forth in subsection (a) of this section.
           (2) An initial application postmarked after April 1 shall be assessed a late penalty in an amount equal to two (2) times the license fee, as set forth in this section.
      (c) All funds collected under this subchapter by the director, including license fees and penalties, shall be deposited in the State Treasury to the credit of the Department of Arkansas State Police Fund. These funds are to be used for the enforcement of this subchapter.
      (d) The director shall assign a license number to each license issued. This number shall be affixed by the person to whom such license is issued to all invoices issued or used by each manufacturer, importer, distributor, or jobber.
      (e)(1) It shall be unlawful for a jobber licensed under this subchapter or for an Arkansas-domiciled retailer to purchase fireworks from a distributor, importer, or manufacturer domiciled outside the State of Arkansas unless the distributor, manufacturer, or importer can show proof that they hold valid licenses under this subchapter to perform functions of the distributor, importer, or manufacturer, or all of them, as the case may be.
           (2) In the event of a violation of the provisions of this section, if the distributor, importer, or manufacturer cannot show valid proof of being properly and currently licensed under this subchapter and if purchase of fireworks is consummated by a jobber licensed under this subchapter, or by an Arkansas retailer, from the distributor, importer, or manufacturer, then the jobber or retailer shall become liable, as a civil penalty, for the full amount of the license fee required by this subchapter from the distributor, importer, or manufacturer. The amount of the license fee is payable immediately, or in the event of failure to pay the penalty within thirty (30) days of the violation, the distributor, importer, or manufacturer shall be subject to the criminal penalties provided by this subchapter.
            (3) Further, unless the out-of-state distributor, importer, or manufacturer pays the license fee required under the provisions of this subchapter within a period of thirty (30) days after being so notified by registered mail, the person shall thereafter be prohibited from engaging in the business defined in this subchapter in the State of Arkansas.
     (f)(1) No permit or license provided for in this subchapter shall be transferable, nor shall a person be permitted to operate under a permit or license issued to any other person.
            (2) No permit or license shall be issued to a person under the age of twenty-one (21) years.
           (3)(A) Each retailer and holder of a license under the provisions of this subchapter shall keep an accurate record of each shipment received.
                  (B) Each distributor, importer, jobber, or wholesaler shall keep a record of each shipment received and each sale, delivery, or out-shipment of fireworks.
                  (C) The records shall be clear, legible, and accurate, showing the name and address of the seller or purchaser, item, and quantity received or sold.
                  (D) The records are to be kept at each place of business and shall be subject to examination by the director or his agents who shall have the authority at any time to require any manufacturer, importer, distributor, wholesaler, jobber, or retailer to produce records for the current year and the immediately preceding full license year.
                 (E) Each shooter shall keep a record of the date, location, and type of display conducted within the State of Arkansas. 
      (g) Mail-order sales of fireworks to consumers through any medium of interstate or intrastate commerce are prohibited. Sales of fireworks to consumers may only be made at properly licensed retail locations within the State of Arkansas. Any person violating the provisions of this subsection (g) shall be guilty of a Class C misdemeanor.
     (h) The director may revoke or deny an application for any license or permit at any time for violating any provision of this subchapter or for falsifying any information provided to the department as part of an application for a license or permit.
     (i) The director may promulgate rules necessary to enforce this subchapter.