Report No. 2008-01
January 2008
Complete Audit Report
Additional Resources and Other Changes Would Benefit the Fireworks Program
The Division of Fire Safety (DFS) has the responsibility for permitting and inspecting fireworks businesses and displays and licensing fireworks display operators. The audit objectives included (1) evaluating the fireworks program funding and the division's management and oversight of the program, (2) evaluating the permitting, licensing, and inspection processes and procedures and (3) analyzing state law and regulations and any potential changes needed.
No change in core budget funding for the fireworks program
DFS has not received additional core budget funding for implementation of the fireworks law responsibilities since program inception. The division has absorbed all personnel time and expenses associated with administering the fireworks program from the existing staff and core budget. (See page 10)
Penalties rare for noncompliance
DFS staff did not often revoke permits and licenses or report violators to law enforcement. State law establishes civil or criminal penalties for fireworks business owners operating without appropriate permits or noncompliance. DFS officials said violations not pertaining to illegal fireworks are generally not submitted to the local prosecuting attorney because many types of violations would not be severe enough to warrant prosecution because the cost of enforcement exceeds the penalties. (See page 13)
Limited procedures to identify non-permitted activities
DFS has established limited procedures to periodically search for non-permitted fireworks activities. We found possible non-permitted fireworks businesses and displays. Nebraska and Tennessee report state permitted fireworks businesses and/or operators on a state Web site to assist local jurisdictions and the public in identifying businesses not permitted. A DFS official said DFS does not have the resources necessary to proactively identify fireworks businesses, operators, or displays operating without a permit. The official also said the short seasonal timeframes impact the identification process. (See page 13)
Inspection process needs improvement
Inspections performed are not based on a risk basis or rotational cycle. Eighty percent of the cities in calendar years 2005 and 2006 and 63 percent of the cities in calendar years 2005, 2006, and 2007 had one or no seasonal retailers inspected. Inspections of distributors, jobbers, and wholesalers are not frequently performed. In 2007, DFS staff re-inspected only about 50 percent of businesses with inspection violations. DFS officials said staffing limitations and the short seasonal timeframe prevent seasonal retailers from being inspected annually. (See page 18)
Different compliance standards for local jurisdictions
State law is inconsistent as local jurisdictions are not required to comply with the same minimum fireworks requirements as DFS when either permitting or inspecting displays, proximate fireworks displays, or seasonal retailers. (See page 21)
Operator licensing needs improvement
Analysis of the division's operator licensing processes identified (1) validation of a federal license had been obtained prior to state licensing did not always occur, (2) state law needs to be clarified to allow DFS to perform complete background checks, and (3) some state regulations need clarification. During our review, we found licensed operators who do not possess a federal license or permit. (See page 23)
Other law changes
Missouri fireworks law does not include some requirements other states have found beneficial for their fireworks programs. Arkansas requires fireworks distributors, jobbers, and wholesalers and Georgia requires manufacturers to furnish proof of financial responsibility to ensure the business would have coverage if an accident occurred. Alabama, Arkansas and Tennessee require certain fireworks permit holders to maintain accurate records of sale, shipment or purchases or allow the State Fire Marshal access to these records. (See page 26)
Complete Audit Report
Missouri State Auditor's Office
moaudit@auditor.mo.gov
