06-11-2003 Council Agenda - Laserfiche WebLink

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Fireworks fee cap provision to become law Anne Finn A provision that caps the fees cities can impose on vendors selling consumer fireworks is part of an omnibus bill that will become law.The proposal began as a bill, HF 800 (Hackbarth, R- Cedar), that was introduced in response to what some called excessive fees adopted by a few cities after last year's legalization of consumer fireworks. Since last year, sparklers, party poppers, and snakes have been legal in Minnesota. The bill was inserted into the omnibus jobs and economic development finance bill (HF 748). The provision caps the allowable fee at 6100 per vendor selling from a permanent structure, and $350 per vendor selling from a temporary structure. Presently, cities charge between $0 and $1,100. Cities maintain the fees are needed to cover the costs associated with compliance checks, education, and inspections relating to the sale of a regulated product. The League testified that cities should retain the authority to determine fees. Proponents of the measure testified that current law allows for too much variation between cities, and that some cities are abusing their authority by using the fees as a way to discourage retailers from selling fireworks. The provision also would restrict cities from requiring fireworks sellers to purchase additional liability insurance. Testifiers stated that some cities have adopted Licensing provisions that require liability coverage of$1 trillion. The insurance requirements, coupled with the fees, make selling fireworks cost prohibitive for retailers. Additional language was added in the conference committee relating to National Fire. Protection Association (NFPA) standards. The clause states that cities cannot prohibit or restrict the display of consumer fireworks that comply with NFPA Standard 1124. This provision has caused some confusion for cities because it raises the question of whether cities can prohibit fireworks sales in temporary structures. League counsel believes the provision does not pre -empt a city's authority to ban transient merchant sales, but it may force cities that allow transient merchant sales to allow this form of fireworks retailing. League staff is in the process of verifying the local impli- cations of this language. The bill is currently awaiting the governor's signature. The fireworks provision will be effective immediately upon enactment. Watch for more information in upcom- ing issues of the Cities Bulletin. r Transportation funding package moving forward Anne Finn After weeks of negotiations, legislators have settled on a transportation package that provides an infusion of bonding dollars mostly for highways. The bill, HF 5 (Kuisle, R- Rochester), authorizes the sale of $400 million in trunk highway bonds and appropriates the money to the Dept. ofTransportation (Mn /DOT) for trunk highway improvements.The bill authorizes Mn /DOT to spend an additional 8400 million in federal advance construction funds for highways. Key provisions of HF 5 also include: • State triads to pay half the cost of operating the Hiawatha light rail transit line (with the remainder conning from the Hennepin County Regional Rail Authority). • Increases on various fees such as motor vehicle transfers, license plates, and DWI- related driver's license reinstate- ments. • Authority for single - occupancy vehicles to use high - occupancy vehicle lanes for a fee. • A requirement that on -sale alcohol retailers that want to remain open after 1 a.m. (under the provisions of the new 2 a.m. bar - closing law) purchase a permit and dedicate the revenue from the permit fee to a fund to provide additional state troopers. • A transfer of 2 percent of the motor vehicle sales tax (MVST) revenues to a metropolitan area transit appro- priation account, scheduled to begin in FY 2004. Authority for Mn/DOT to spend up to $5 million through FY 2008 in federal funds for greater Minnesota transit capital assistance in addition to any other appro- priations for this purpose. The bill was released to the public late in the day Tuesday, May 27,just a few moments in advance of the House floor debate. League staff will be taking a closer look at the 83 -page bill in the days ahead, and will provide a rnore thorough description of the provisions in the upcoming law summaries publication. Notably absent in the bill is an increase in funding for local roads.The Pawlenty Administration has indicated a willingness to support more dollars for local roads in future sessions. In the meantime, the pending capital bonding bill includes $20 million to fund the local road improvement account. The account, if enacted, will provide grants to assist local units of government with cost participation responsibilities relating to trunk highway projects. r May 28, 2003 Page 5 6