Manufacture, sale, and use of fireworks regulated; and portion of revenues from the sale of fireworks dedicated to public safety purposes.

A bill for an act

relating to public safety; regulating the manufacture, sale, and use of fireworks;

dedicating a portion of revenues from the sale of certain fireworks for public safety

purposes; amending Minnesota Statutes 2024, sections 297A.94; 624.20,

subdivision 1.

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

Section 1.

Minnesota Statutes 2024, section 297A.94, is amended to read:

297A.94 DEPOSIT OF REVENUES.

(a) Except as provided in this section, the commissioner shall deposit the revenues,

including interest and penalties, derived from the taxes imposed by this chapter in the state

treasury and credit them to the general fund.

(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic

account in the special revenue fund if:

(1) the taxes are derived from sales and use of property and services purchased for the

construction and operation of an agricultural resource project; and

(2) the purchase was made on or after the date on which a conditional commitment was

made for a loan guaranty for the project under section
41A.04, subdivision 3
.

The commissioner of management and budget shall certify to the commissioner the date on

which the project received the conditional commitment. The amount deposited in the loan

guaranty account must be reduced by any refunds and by the costs incurred by the Department

of Revenue to administer and enforce the assessment and collection of the taxes.

(c) The commissioner shall deposit the revenues, including interest and penalties, derived

from the taxes imposed on sales and purchases included in section
297A.61, subdivision 3
,

paragraph (g), clauses (1) and (4), in the state treasury, and credit them as follows:

(1) first to the general obligation special tax bond debt service account in each fiscal

year the amount required by section
16A.661, subdivision 3
, paragraph (b); and

(2) after the requirements of clause (1) have been met, the balance to the general fund.

(d) Beginning with sales taxes remitted after July 1, 2017, the commissioner shall deposit

in the state treasury the revenues collected under section
297A.64, subdivision 1
, including

interest and penalties and minus refunds, and credit them to the highway user tax distribution

fund.

(e) The commissioner shall deposit the revenues, including interest and penalties,

collected under section
297A.64, subdivision 5
, in the state treasury and credit them to the

general fund. By July 15 of each year the commissioner shall transfer to the highway user

tax distribution fund an amount equal to the excess fees collected under section
297A.64,

subdivision 5
, for the previous calendar year.

(f) Beginning with sales taxes remitted after July 1, 2017, in conjunction with the deposit

of revenues under paragraph (d), the commissioner shall deposit into the state treasury and

credit to the highway user tax distribution fund an amount equal to the estimated revenues

derived from the tax rate imposed under section
297A.62, subdivision 1
, on the lease or

rental for not more than 28 days of rental motor vehicles subject to section
297A.64
. The

commissioner shall estimate the amount of sales tax revenue deposited under this paragraph

based on the amount of revenue deposited under paragraph (d).

(g) The commissioner must deposit the revenues derived from the taxes imposed under

section
297A.62, subdivision
1, on the sale and purchase of motor vehicle repair and

replacement parts in the state treasury and credit:

(1) 43.5 percent in each fiscal year to the highway user tax distribution fund;

(2) a percentage to the transportation advancement account under section
174.49
as

follows:

(i) 3.5 percent in fiscal year 2024;

(ii) 4.5 percent in fiscal year 2025;

(iii) 5.5 percent in fiscal year 2026;

(iv) 7.5 percent in fiscal year 2027;

(v) 14.5 percent in fiscal year 2028;

(vi) 21.5 percent in fiscal year 2029;

(vii) 28.5 percent in fiscal year 2030;

(viii) 36.5 percent in fiscal year 2031;

(ix) 44.5 percent in fiscal year 2032; and

(x) 56.5 percent in fiscal year 2033 and thereafter; and

(3) the remainder in each fiscal year to the general fund.

For purposes of this paragraph, "motor vehicle" has the meaning given in section
297B.01,

subdivision 11
, and "motor vehicle repair and replacement parts" includes (i) all parts, tires,

accessories, and equipment incorporated into or affixed to the motor vehicle as part of the

motor vehicle maintenance and repair, and (ii) paint, oil, and other fluids that remain on or

in the motor vehicle as part of the motor vehicle maintenance or repair. For purposes of this

paragraph, "tire" means any tire of the type used on highway vehicles, if wholly or partially

made of rubber and if marked according to federal regulations for highway use.

(h) 81.56 percent of the revenues, including interest and penalties, transmitted to the

commissioner under section
297A.65
, must be deposited by the commissioner in the state

treasury as follows:

(1) 47.5 percent of the receipts must be deposited in the heritage enhancement account

in the game and fish fund, and may be spent only on activities that improve, enhance, or

protect fish and wildlife resources, including conservation, restoration, and enhancement

of land, water, and other natural resources of the state;

(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and may

be spent only for state parks and trails;

(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and may

be spent only on metropolitan park and trail grants;

(4) three percent of the receipts must be deposited in the natural resources fund, and

may be spent only on local trail grants;

(5) two percent of the receipts must be deposited in the natural resources fund, and may

be spent only for the Minnesota Zoological Garden, the Como Park Zoo and Conservatory,

and the Duluth Zoo; and

(6) 2.5 percent of the receipts must be deposited in the pollinator account established in

section
103B.101, subdivision 19
.

(i) 1.5 percent of the revenues, including interest and penalties, transmitted to the

commissioner under section
297A.65
must be deposited in a regional parks and trails account

in the natural resources fund and may only be spent for parks and trails of regional

significance outside of the seven-county metropolitan area under section
85.535
, based on

recommendations from the Greater Minnesota Regional Parks and Trails Commission under

section
85.536
.

(j) 1.5 percent of the revenues, including interest and penalties, transmitted to the

commissioner under section
297A.65
must be deposited in an outdoor recreational

opportunities for underserved communities account in the natural resources fund and may

only be spent on projects and activities that connect diverse and underserved Minnesotans

through expanding cultural environmental experiences, exploration of their environment,

and outdoor recreational activities.

(k) The revenue dedicated under paragraph (h) may not be used as a substitute for

traditional sources of funding for the purposes specified, but the dedicated revenue shall

supplement traditional sources of funding for those purposes. Land acquired with money

deposited in the game and fish fund under paragraph (h) must be open to public hunting

and fishing during the open season, except that in aquatic management areas or on lands

where angling easements have been acquired, fishing may be prohibited during certain times

of the year and hunting may be prohibited. At least 87 percent of the money deposited in

the game and fish fund for improvement, enhancement, or protection of fish and wildlife

resources under paragraph (h) must be allocated for field operations.

(l) The commissioner must deposit the revenues, including interest and penalties minus

any refunds, derived from the sale of items regulated under section
624.20, subdivision 1
,

that may be sold to persons 18 years old or older and that are not prohibited from use by

the general public under section
624.21
, in the state treasury and credit:

(1) 25 percent to the volunteer fire assistance grant account established under section

88.068
;

(2) 25 percent to the fire safety account established under section
297I.06, subdivision

3; and

(3) the remainder to the general fund.

For purposes of this paragraph, the percentage of total sales and use tax revenue derived

from the sale of items regulated under section
624.20, subdivision 1
, that are allowed to be

sold to persons 18 years old or older and are not prohibited from use by the general public

under section
624.21
, is a set percentage of the total sales and use tax revenues collected in

the state, with the percentage determined under Laws 2017, First Special Session chapter

1, article 3, section 39.

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(m) Beginning with sales taxes remitted after June 30, 2025, the commissioner shall

deposit the revenues, including penalties and interest and less refunds, derived from the

taxes imposed on the sale of aerial and audible devices, in the state treasury and credit: (1)

25 percent to the volunteer fire assistance grant account in the special revenue fund for

grants under section 88.067; (2) 25 percent to the fire safety account established under

section 297I.06, subdivision 3; and (3) the remainder to the general fund. For purposes of

this section, "aerial and audible devices" has the meaning given in section 624.20, subdivision

1, paragraph (a). The commissioner shall estimate the percentage of total sales tax revenue

attributable to the sale of aerial and audible devices to calculate the amount of annual revenue

that should be paid to the account under this paragraph in fiscal year 2024 and each

subsequent fiscal year.

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(m)
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(n)
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The revenues deposited under paragraphs (a) to
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(l)
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(m)
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do not include the

revenues, including interest and penalties, generated by the sales tax imposed under section

297A.62, subdivision 1a
, which must be deposited as provided under the Minnesota

Constitution, article XI, section 15.

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EFFECTIVE DATE.

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This section is effective for sales and purchases made after June

30, 2025.

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Sec. 2.

Minnesota Statutes 2024, section 624.20, subdivision 1, is amended to read:

Subdivision 1.

Regulation.

(a) As used in sections
624.20
to
624.25
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, the term "fireworks"

means any substance or combination of substances or article prepared for the purpose of

producing a visible or an audible effect by combustion, explosion, deflagration, or detonation,

and includes blank cartridges, toy cannons, and toy canes in which explosives are used, the

type of balloons which require fire underneath to propel them, firecrackers, torpedoes,

skyrockets, Roman candles, daygo bombs, sparklers other than those specified in paragraph

(c), or other fireworks of like construction, and any fireworks containing any explosive or

inflammable compound, or any tablets or other device containing any explosive substance

and commonly used as fireworks.
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:
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(b) The term "fireworks" shall not include toy pistols, toy guns, in which paper caps

containing 25/100 grains or less of explosive compound are used and toy pistol caps which

contain less than 20/100 grains of explosive mixture.

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(c) The term also does not include wire or wood sparklers of not more than 100 grams

of mixture per item, other sparkling items which are nonexplosive and nonaerial and contain

75 grams or less of chemical mixture per tube or a total of 500 grams or less for multiple

tubes, snakes and glow worms, smoke devices, or trick noisemakers which include paper

streamers, party poppers, string poppers, snappers, and drop pops, each consisting of not

more than twenty-five hundredths grains of explosive mixture. The use of items listed in

this paragraph is not permitted on public property. This paragraph does not authorize the

purchase of items listed in it by persons younger than 18 years of age. The age of a purchaser

of items listed in this paragraph must be verified by photographic identification.

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(1) "aerial and audible devices" means fireworks in a finished state, suitable for use by

the public, listed in APA 87-1, sections 3.1.2, 3.1.3, and 3.5, and containing 75 grams or

less of chemical mixture per tube for a total of 500 grams or less for multiple tubes in a

device;

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(2) "APA 87-1" means the American Pyrotechnics Association Standard 87-1 from the

Standard for Construction and Approval for Transportation of Fireworks, Novelties, and

Theatrical Pyrotechnics, 2001 Edition;

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(3) "display fireworks" means firework devices in a finished state, exclusive of mere

ornamentation, primarily intended for commercial displays that are designed to produce

visible effects, audible effects, or both, by combustion, deflagration, or detonation. The

term includes, but is not limited to, salutes containing more than 130 milligrams of explosive

composition, aerial shells containing more than 40 grams of chemical composition exclusive

of light charge, and other exhibition display items that exceed the limits contained in APA

87-1 for aerial and audible devices;

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(4) "fireworks" means any device, other than sparkling devices, novelties, aerial and

audible devices, or theatrical pyrotechnic articles that are intended to produce visible effects,

audible effects, or both, by combustion, deflagration, or detonation. The term includes

display fireworks;

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(5) "novelties" means devices containing small amounts of pyrotechnic composition

that are listed in APA 87-1, sections 3.2, 3.3, and 3.4. The term includes deregulated

sparklers, snakes and glow worms, smoke devices, and trick noisemakers, including paper

streamers, party poppers, string poppers, snappers, drop pops, each consisting of not more

than 25/100 grains of explosive mixture; toy pistols, toy guns, in which paper caps containing

25/100 grains or less of explosive compound are used; and toy pistol caps that contain less

than 20/100 grains of explosive mixture; and

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(6) "sparkling devices" means ground-based or handheld devices that produce a shower

of sparks that are listed in APA 87-1, sections 3.1.1 and 3.5. The term includes fountains,

torches, wheels, ground spinners, flitter sparklers, toy smoke devices, and sparklers.

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(b) Nothing in sections 624.20 to 624.25 authorizes the possession or use of sparkling

devices, novelties, or aerial and audible devices on public property, or the purchase of these

items by persons younger than 18 years of age. A person selling sparkling devices, novelties,

or aerial and audible devices shall verify the age of a purchaser by photographic

identification. Nothing in sections 624.20 to 624.25 authorizes the use of aerial and audible

devices other than during the period from 12:00 p.m. to 10:00 p.m., or one and one-half

hours after sunset, whichever is later.

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(c) A retail seller of sparkling devices, novelties, or aerial and audible devices may

operate out of a temporary structure for no more than 45 days in a calendar year. A retail

seller operating beyond 45 days in a calendar year must do so from a permanent structure.

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(d) A local unit of government may impose an annual license fee for the retail sale of
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items authorized under paragraph (c)
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sparkling devices and aerial and audible devices
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. The

annual license fee of each retail seller that is in the business of selling only
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the items

authorized under paragraph (c)
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sparkling devices or aerial and audible devices, or both,
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may

not exceed $350
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for a single retail location
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, and the annual license of each other retail seller

may not exceed $100.
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A local unit of government may assess a fee, not to exceed $100, to

a licensee for each additional retail location that the licensee operates. A license application

must be made before June 1 of each year and must require, at a minimum, the location of

each retail location the licensee intends to operate. The local authority having jurisdiction

shall, within 14 days after the receipt of an application for a license, either issue the license

or notify the applicant of the denial of the license. A licensee must display the license issued

pursuant to this paragraph at each point of sale operated by the licensee. A license issued

under this paragraph expires May 31 of the year following the year of issuance.
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A local unit

of government may not:

(1) impose any fee or charge, other than the fee authorized by this paragraph, on the
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wholesale or
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retail sale of
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items authorized under paragraph (c)
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sparkling devices and aerial

and audible devices
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;

(2)
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except to comply with paragraph (c),
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prohibit or restrict the
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sale or
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display of
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items

for
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sparkling devices, novelties, or aerial and audible devices from any
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permanent or

temporary
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retail sale authorized under paragraph (c)
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structure
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that
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comply
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complies
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with

National Fire Protection Association Standard 1124 (
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2003
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2006
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edition);
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or
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(3) impose on a retail seller any financial guarantee requirements, including bonding or

insurance provisions, containing restrictions or conditions not imposed on the same basis

on all other business licensees
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; or
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(4) enact any ordinance, rule, or regulation that prohibits, limits, or restricts the wholesale

or retail sale of novelties
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.

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(e) This section does not preempt a town or home rule charter or statutory city from

enacting and enforcing ordinances under the city charter or chapter 365, 368, 412, or 462,

that regulate the conditions of sale or use for sparkling devices, aerial and audible devices,

and display fireworks.

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(f) For the purposes of regulating the conditions of sale or use for aerial and audible

devices, display fireworks, sparkling devices, and novelties, a county has the same authority

and power granted to a statutory city by paragraph (e) and chapter 412. If a home rule charter

or statutory city or town has enacted an ordinance, rule, or regulation under paragraph (e),

that ordinance, rule, or regulation prevails within the city or town.

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EFFECTIVE DATE.

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This section is effective June 1, 2025.

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