SB1060 HD2.DOC

THE SENATE	S.B. NO.	1060
TWENTY-FIFTH LEGISLATURE, 2009		S.D. 1
STATE OF HAWAII		H.D. 2

A BILL FOR AN ACT

RELATING TO FIREWORKS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that the expanded use of fireworks has escalated to a serious public health and safety problem. The air pollution produced by consumer fireworks causes respiratory difficulties for the elderly, young children, and persons with existing respiratory ailments. Consumer fireworks set off in our neighborhoods create hazardous driving conditions, cause needless stress for young children and pets, and overextend our police and fire personnel as they respond to incidents of fire and injury caused by fireworks. An immediate reduction in consumer fireworks use is necessary to protect the health and safety of people in this state.

The legislature further finds that imposing a surcharge on the sale of consumer fireworks is an effective method of reducing the use of consumer fireworks. A surcharge levied on fireworks retailers will provide greater controls and effectively reduce the amount of consumer fireworks used each year.

The purpose of this Act is to reduce the use of consumer fireworks by imposing a surcharge of fifty per cent of the gross receipts of the consumer fireworks sold at the retail level.

SECTION 2. Chapter 132D, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"PART . CONSUMER FIREWORKS SURCHARGE TAX

§132D-A Definitions. As used in this part, unless the context otherwise requires:

"Department" means the department of taxation.

"Director" means the director of taxation.

"Consumer fireworks" has the same meaning as defined in section 132D-2.

"Surcharge" means the consumer fireworks surcharge established under this part.

§132D-B Consumer fireworks surcharge tax. Notwithstanding any other law to the contrary, there is assessed and shall be collected each month, a consumer fireworks surcharge of fifty per cent of the gross receipts of the consumer fireworks sold at retail. The surcharge tax shall be levied upon the seller of the consumer fireworks at retail.

§132D-C Certificate of registration. (a) Each licensee under section 132D-7, as a condition precedent to engaging or continuing in the business of selling consumer fireworks at retail, shall register with the director and make a one-time payment of $20 to the department. Upon receipt of the payment, the director shall issue a certificate of registration to the person. The registration shall not be transferable and shall be valid only for the person in whose name it is issued and for the transaction of business at the place designated therein. The registration, or in lieu thereof a notice stating where the registration may be inspected and examined, shall at all times be conspicuously displayed at the place for which it is issued.

(b) Any person subject to this part who engages or continues in the business without registering in conformity with this part shall be guilty of a misdemeanor.

§132D-D Return and payments; penalties. (a) On or before:

(1) The last day of July and January of each year; and

(2) The end of the month following Chinese new year or any other cultural use under section 132D-3;

every person subject to this part shall file a statement with the director in a form as the director shall prescribe together with a payment of the surcharge.

(b) If a person becomes delinquent in the payment of the surcharge, the director may revoke the person's permit.

§132D-E Remittances. All payments of surcharge imposed under this part shall be made by cash, bank draft, cashier's check, money order, or certificate of deposit to the director of finance. The department shall deposit the moneys into the state treasury to the credit of the general fund.

§132D-F Rules. The director shall adopt rules in accordance with chapter 91 to carry out the purpose of this part."

SECTION 3. This Act shall take effect on December 15, 2009.