HOUSE BILL No. 5939

 

 

May 8, 2018, Introduced by Reps. Lilly, Farrington, Pagan, Vaupel, Lucido, Chirkun, Yaroch, Howell, Hornberger, Victory, Crawford, Miller, Kelly, Lasinski, VanderWall, Hammoud and Hoadley and referred to the Committee on Regulatory Reform.

 

     A bill to amend 2011 PA 256, entitled

 

"Michigan fireworks safety act,"

 

by amending sections 4, 5, 6, and 7 (MCL 28.454, 28.455, 28.456,

 

and 28.457), sections 4, 5, and 7 as amended by 2013 PA 65.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 4. (1) A person shall not sell consumer fireworks unless

 

the person annually obtains and maintains a consumer fireworks

 

certificate from the department under this section. A person who

 

knows, or should know, that he or she is required to comply with

 

this subsection and who fails or neglects to do so comply with this

 

subsection is guilty of a misdemeanor punishable by imprisonment

 

for not more than 2 years or a fine, or both, with the fine as

 

follows:

     (a) For a first violation of this subsection, not more than

 

$5,000.00.

 

     (b) For a second violation of this subsection, not more than

 

$20,000.00.

 

     (c) For a third or subsequent violation of this subsection,

 

not more than $40,000.00.

 

     (2) An application applicant for a consumer fireworks

 

certificate shall meet do all of the following: requirements:

 

     (a) The application shall be submitted Submit an application

 

no later than April 1 of each year in which the applicant will sell

 

consumer fireworks. are to be sold.

 

     (b) The application shall list List on the application the

 

name and address of each retail location from which the applicant

 

will sell consumer fireworks. are to be sold.

 

     (c) The application shall be accompanied by Submit with the

 

application a consumer fireworks certificate fee of $1,000.00 for a

 

certificate for each retail location that is a permanent building

 

or structure or $600.00 for each retail location that is not a

 

permanent building or structure. The consumer fireworks certificate

 

fee required to be paid for a retail location that is not a

 

permanent building or structure shall must not exceed 60% of the

 

consumer fireworks certificate fee for a retail location that is a

 

permanent building or structure. An applicant who applies for a

 

consumer fireworks certificate for a retail location that is not a

 

permanent building or structure and who does not hold a consumer

 

fireworks certificate for a permanent building or structure shall

 

file with the department of treasury a bond in the amount of

$5,000.00 to secure the collection of estimated sales tax and

 

fireworks safety fees.

 

     (d) The application shall be accompanied by Submit with the

 

application a copy of the applicant's current sales tax license,

 

including the applicant's account number, issued by the department

 

of treasury for each retail location where the applicant will sell

 

consumer fireworks. are to be sold by the applicant.

 

     (3) A consumer fireworks certificate issued under this section

 

is valid from the date of issue until April 30 of the year after it

 

was issued. A person may renew a consumer fireworks certificate for

 

a retail location by making application in the same manner as

 

provided under subsection (2). However, the The department shall

 

not issue a renewal consumer fireworks certificate unless the

 

department determines that the applicant properly remitted all of

 

the required fireworks safety fees required to be paid in the

 

preceding year. and sales tax for any of the preceding 5 years that

 

the applicant held a consumer fireworks certificate. The department

 

shall provide to the department of treasury the sales tax license

 

information received from the applicant and any additional

 

information as may be necessary to allow the department of treasury

 

to confirm that each sales tax license submitted by the applicant

 

is current and valid. The department shall enter into an agreement

 

with the department of treasury under section 28(1) of 1941 PA 122,

 

MCL 205.28, that will allow the department of treasury to provide

 

that information to the department. The department shall not issue

 

an original or renewal consumer fireworks certificate to an

 

applicant until the department of treasury has confirmed to the

department that each sales tax license submitted by the applicant

 

is current and valid, and that the applicant is otherwise eligible

 

to obtain a consumer fireworks certificate under this act.

 

     (4) Not more than 30 days after an application is submitted to

 

the department under this section, the department shall issue or

 

deny issuance of a consumer fireworks certificate to the applicant

 

and, if issuance is denied, or deny the application. If the

 

department denies the application, the department shall indicate to

 

the applicant the reason for denial.

 

     (5) If the department denies issuance of an application for a

 

consumer fireworks certificate under this section, the applicant

 

may cure any defect of in the application within 45 days after the

 

denial without paying an additional fee. The department shall not

 

unreasonably delay or deny an application under this section.

 

     (6) A consumer fireworks certificate is transferable upon

 

approval by the department and the payment of a $25.00 transfer

 

fee. However, the The department shall not approve the transfer of

 

a consumer fireworks certificate unless the transferee satisfies

 

the eligibility requirements for an original consumer fireworks

 

certificate under this act. The department shall not process a

 

request for a transfer of location between June 1 and July 31.

 

     (7) The holder of a consumer fireworks certificate shall

 

prominently display the original or a copy of the certificate in

 

the appropriate retail location. A person that violates this

 

subsection is responsible for a civil fine of $100.00. Each day

 

that the holder of a consumer fireworks certificate is not

 

displayed fails to display the certificate as required under this

subsection is a separate violation.

 

     (8) The department shall not issue a consumer fireworks

 

certificate to a person that is ineligible under this act.

 

     (9) The face of the consumer fireworks certificate shall must

 

indicate the location or address for which it was issued.

 

     (10) Fees collected under this section shall must be deposited

 

in the fireworks safety fund.

 

     Sec. 5. (1) Consumer A person shall not sell consumer

 

fireworks shall only be sold from a retail location if unless all

 

of the following applicable conditions are met:

 

     (a) Except as provided in subdivision (b), a retail location

 

satisfies the applicable requirements of NFPA 101 and NFPA 1124

 

that are not in conflict with this act, and the Stille-DeRossett-

 

Hale single state construction code act, 1972 PA 230, MCL 125.1501

 

to 125.1531. However, any Any provision of the Stille-DeRossett-

 

Hale single state construction code act, 1972 PA 230, MCL 125.1501

 

to 125.1531, that is inconsistent with the applicable requirements

 

of NFPA 101 and NFPA 1124 is superseded to the extent of the

 

inconsistency or conflict.

 

     (b) Beginning January 1, 2013, a A permanent building or

 

structure shall be is equipped with a fire suppression system in

 

compliance with NFPA 1124. Beginning on the effective date of the

 

2018 act that amended this subdivision and notwithstanding the NFPA

 

1124 requirements regarding automatic sprinkler systems, a retail

 

location in a permanent multitenant building or structure must be

 

equipped with an automatic sprinkler system. The requirement for an

 

automatic sprinkler system described in this subdivision does not

apply to a retail location of a person that held a consumer

 

fireworks certificate for a retail location of the same address in

 

a permanent building or structure during the calendar year before

 

the effective date of the 2018 act that amended this subdivision.

 

     (c) The retailer at that retail location is licensed under

 

section 3 of the general sales tax act, 1933 PA 167, MCL 205.53.

 

     (d) The retailer has a valid federal taxpayer identification

 

number. issued by the federal department of the treasury, internal

 

revenue service. This requirement does not apply to a retailer that

 

is a sole proprietorship.

 

     (2) A person that knows, or should know, that he or she is

 

required to comply with subsection (1) and who fails or neglects to

 

do so comply with subsection (1) is responsible for a civil fine of

 

$2,500.00 for each violation. Each day that a person is in

 

noncompliance constitutes is a separate violation.

 

     (3) During periods when When a person is selling consumer

 

fireworks, are sold, each retail location selling consumer

 

fireworks either shall be added the person shall add as an

 

additional insured, or obtain and maintain public liability and

 

product liability insurance coverage shall be obtained and

 

maintained, for, each retail location selling consumer fireworks in

 

an amount not less than $10,000,000.00 per occurrence. A person

 

that knows, or should know, that he or she is required to comply

 

with this subsection and who fails or neglects to do so comply with

 

this subsection is liable responsible for a civil fine of not more

 

than $5,000.00.

 

     (4) The department shall prepare a notice of the times

permitted under this act for the ignition, discharge, and use of

 

consumer fireworks and make the notice available on the

 

department's website. The notice shall not be larger than 8-1/2

 

inches by 11 inches. A retailer shall provide at the time of

 

purchase the notice prepared by the department to a person who

 

purchases consumer fireworks from the retailer or prominently

 

display the notice in a conspicuous location near each point of

 

purchase at the retail location. A person who fails to provide or

 

display the notice required by this subsection is responsible for a

 

civil fine of $500.00 for each violation. The department shall

 

provide for the remittance of the fine collected under this

 

subsection to the local law enforcement agency responsible for

 

enforcing the notice requirement.

 

     Sec. 6. (1) The department shall establish and maintain, or

 

cause to be created established and maintained, an internet website

 

that has as its purpose the protection of the residents of this

 

state who purchase, use, or transport fireworks. The website shall

 

must include, at a minimum, but is not limited to, both of the

 

following:

 

     (a) A list of every person and entity that is issued a

 

consumer fireworks certificate under section 4.

 

     (b) A low-impact fireworks retail registry. All of the

 

following apply to the online low-impact fireworks retail registry:

 

     (i) It shall must be maintained and operated at no cost to a

 

user.

 

     (ii) The cost of its maintenance and operation shall must be

 

paid with funds described in section 11(4).

     (iii) It shall must provide for instant registry without

 

condition.

 

     (2) Beginning February 1, 2012, a A person shall not sell low-

 

impact fireworks unless he or she registers with the low-impact

 

fireworks retail registry not less than 10 days before selling the

 

fireworks in each calendar year. A person who holds a valid

 

consumer fireworks certificate issued under section 4 is not

 

required to register with the low-impact fireworks retail registry.

 

     (3) A person who sells low-impact fireworks at retail and who

 

fails to register as described in this section shall cease the sale

 

of low-impact fireworks until the person complies with subsection

 

(2).

 

     Sec. 7. (1) Except as provided in this act, a local unit of

 

government shall not enact or enforce an ordinance, code, or

 

regulation pertaining to or in any manner regulating the sale,

 

display, storage, transportation, or distribution of fireworks

 

regulated under this act.

 

     (2) A local unit of government may enact an ordinance

 

regulating the ignition, discharge, and use of consumer fireworks,

 

including, but not limited to, an ordinance prescribing the hours

 

of the day or night during which a person may ignite, discharge, or

 

use consumer fireworks. If a local unit of government enacts an

 

ordinance under this subsection, the ordinance shall must not

 

regulate the ignition, discharge, or use of consumer fireworks on

 

the day preceding, the day of, or the day after a national holiday

 

except as follows:following days:

 

     (a) A local unit of government with a population of 50,000 or

more or a local unit of government located in a county with a

 

population of 750,000 or more may regulate the ignition, discharge,

 

or use of consumer fireworks between the hours of 12 midnight and 8

 

a.m. or between the hours of 1 a.m. and 8 a.m. on New Year's day.

 

     (b) A local unit of government with a population of less than

 

50,000 located in a county with a population of less than 750,000

 

may regulate the ignition, discharge, or use of consumer fireworks

 

between the hours of 1 a.m. and 8 a.m.

 

     (a) December 31.

 

     (b) January 1 between 12 midnight and 1 a.m.

 

     (c) The Saturday immediately preceding Memorial Day until

 

11:30 p.m.

 

     (d) The Friday and Saturday immediately preceding July 4 until

 

11:30 p.m. on each of those days.

 

     (e) June 30 until 11:30 p.m. if July 4 is a Saturday or

 

Sunday.

 

     (f) July 1 to July 4 until 11:30 p.m. on each of those days.

 

     (g) The Saturday immediately preceding Labor Day until 11:30

 

p.m.

 

     (3) An ordinance under subsection (2) shall only must impose a

 

civil fine of not more than $500.00 $1,000.00 for each violation of

 

the ordinance and no other fine or sanction. The ordinance must

 

provide for the remittance of $500.00 of the fine collected under

 

the ordinance described in this subsection to the local law

 

enforcement agency responsible for enforcing the ordinance.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.