October 17, 2012, Introduced by Rep. LeBlanc and referred to the Committee on Regulatory Reform.
A bill to amend 2011 PA 256, entitled
"Michigan fireworks safety act,"
by amending sections 4 and 5 (MCL 28.454 and 28.455), section 4 as
amended by 2012 PA 257.
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 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 for a consumer fireworks certificate shall
meet all of the following requirements:
(a) Before January 1, 2012, the application shall be submitted
not less than 90 days before the applicant sells consumer
fireworks.
(b) Beginning January 1, 2012, the application shall be
submitted no later than April 1 of each year in which consumer
fireworks are to be sold.
(c) The application shall list the name and address of each
retail location from which consumer fireworks are to be sold.
(d) Until January 1, 2014, the application shall be
accompanied by a fee of $1,000.00 for a certificate for each retail
location that is a permanent building or structure or, until
January 1, 2014, $600.00 for each retail location that is not a
permanent building or structure. Until January 1, 2014, the
fireworks certificate fee required to be paid for a retail location
that is not a permanent building or structure shall not exceed 60%
of the fireworks certificate fee for a retail location that is a
permanent building or structure.
(e) The application shall be accompanied by 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 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 department shall not
issue a renewal consumer fireworks certificate unless the
department determines that the applicant properly remitted all of
the fireworks safety fees required to be paid in the preceding
year. 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, shall indicate to the applicant the
reason for denial.
(5) If the department denies issuance of a consumer fireworks
certificate under this section, the applicant may cure any defect
of 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 department shall not approve the transfer of a
consumer fireworks certificate unless the transferee satisfies
eligibility requirements for an original consumer fireworks
certificate under this act.
(7) The holder of a consumer fireworks certificate shall
prominently display the original or 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
consumer fireworks certificate is not displayed 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
indicate the location or address for which it was issued.
(10) Fees collected under this section shall be deposited in
the fireworks safety fund.
Sec. 5. (1) Consumer fireworks shall only be sold from a
retail location if 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 not
in conflict with this act.
(b)
Beginning 1 year after the effective date of this act
January 1, 2012, a permanent building or structure shall be
equipped with a fire suppression system in compliance with NFPA
1124.
(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.
(e) Beginning January 1, 2014, the retail location is a
permanent building or structure.
(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 is responsible for a civil fine of $2,500.00 for each
violation. Each day that a person is in noncompliance constitutes a
separate violation.
(3) During periods when consumer fireworks are sold, each
retail location selling consumer fireworks either shall be added as
an additional insured, or public liability and product liability
insurance coverage shall be obtained and maintained, 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 is liable for a civil
fine of not more than $5,000.00.