BILL ANALYSIS Ó AB 1177 Page 1 Date of Hearing: April 23, 2013 ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER PROTECTION Richard S. Gordon, Chair AB 1177 (Bocanegra) - As Introduced: February 22, 2013 SUBJECT : Structural fumigation. SUMMARY : Extends the sunset date for the Structural Fumigation Enforcement Program (SFEP) under the Department of Pesticide Regulation (DPR) for Los Angeles, Orange and San Diego Counties to January 1, 2018, and removes Santa Clara County from the program. EXISTING LAW : 1)Authorizes the county agricultural commissioner (CAC) of Los Angeles, Orange, Santa Clara and San Diego Counties to perform increased structural fumigation, inspection, and enforcement activities under the oversight of DPR using fees collected from each fumigation performed in those counties. (Business and Professions Code [BPC] Section 8698) 2)Requires an individual who performs a structural fumigation treatment in Los Angeles, Orange, Santa Clara and San Diego Counties to pay the respective CAC a $5 fee for each fumigation treatment conducted at a specific building or structure. (BPC 8698.1) 3)Requires the fees collected by CACs on behalf of the counties participating in the SFEP to be used for the sole purpose of funding enforcement and training activities directly related to the SFEP. (BPC 8698.5) 4)Defines "structural pest control" and "pest control", unless exempted, to refer to household pests and wood destroying pests or organisms, or other such pests which may invade households or other structures, including railroad cars, ships, docks, trucks, and airplanes, and the advertisement, solicitation, or performance of identifying, exterminating, eliminating, controlling, preventing the infestation of such pests, and making structural repairs or replacements, as specified. (BPC 8505) AB 1177 Page 2 5)Defines a "fumigator" as any individual licensed by the Structural Pest Control Board (SPCB) as a structural pest control operator or as a structural pest control field representative in the branch of pest control which includes fumigation, or the practice relating to the control of household and wood-destroying pests or organisms by fumigation with poisonous or lethal gases. (BPC 8505.14 and 8560) 6)Defines "fumigation" as the use of a substance to destroy plant and animal life within an enclosed space that has a vapor pressure greater than five millimeters of mercury at 25 degrees centigrade when labeled for those purposes. Lethal fumigants include: methyl bromide, sulfur dioxide, propylene oxide, sulfuryl fluoride, and aluminum phosphide. (BPC 8505.1) 7)Sunsets the SFEP on January 1, 2014. (BPC 8698.6) FISCAL EFFECT : Unknown COMMENTS : 1)Purpose of this bill . This bill would extend the sunset date for the SFEP by four years to January 1, 2018, which would allow the CACs of Los Angeles, Orange and San Diego Counties to continue to collect a $5 fee for each fumigation treatment performed in a household or structure within those respective counties to fund local structural fumigation enforcement and research activities. This bill also removes Santa Clara County from the SFEP. This bill is author sponsored. 2)Author's statement . According to the author, "Absent legislation, the SFEP lapses January 1, 2014. AB 1177 extends the sunset date for the SFEP from January 1, 2014 to January 1, 2018. This bill allows for the CACs of Los Angeles, Orange and San Diego Counties to continue contracting with the Director of the DPR to perform fumigation, inspection and enforcement activities." 3)Structural fumigation and toxic fumigants . "Fumigation" is the use of a substance to destroy plant and animal life within an enclosed space. Structural fumigation applies solely to the fumigation of houses or other structures, such as railroad cars, ships, docks, trucks, and airplanes. It does not apply AB 1177 Page 3 to agricultural fumigation. To fumigate a home or structure, it must be vacated and enclosed with a tent or tarps, and after a fumigant is released the home or structure must remain enclosed for a specified period of time to kill the pests. Afterwards, the home or structure must be properly ventilated before the inhabitants can return. Structural fumigation is regulated primarily because it utilizes large quantities of toxic chemicals, particularly sulfuryl fluoride. Sulfuryl fluoride is a highly toxic pesticide fumigant used to control termites and other pests in homes and other structures. Sulfuryl fluoride is colorless, odorless, and leaves no residue; if used incorrectly, it can result in fluoride poisoning and cause illness or death in humans. Los Angeles, San Diego, and Orange Counties are the top three users of structural fumigation in the state, based on the total pounds of sulfuryl fluoride used. 4)The creation of SFEP . The SFEP was established in 1993 as a two-year pilot project in Los Angeles County in response to the high number of substandard structural fumigations being performed in Los Angeles and Orange Counties that were negatively affecting the reputation of the local pest control industry. Problems included operators who used the wrong fumigant, neglected to follow safety procedures, or improperly aerated a structure following fumigation. In response, local pest control industry officials in Los Angeles asked CACs to increase monitoring and enforcement of the structural fumigation industry, and the SFEP was created to fulfill that role in Los Angeles County. The SFEP was expanded to include Orange and San Diego Counties in 1996, and Santa Clara County in 2007. The SFEP is an industry-supported program intended to increase compliance among pest control operators and protect humans, animals, plants, and the environment, particularly in areas of high population density more vulnerable to exposure to toxins because of poorer ventilation. The SFEP uses its fee-generated revenues to pay for increased enforcement and training activities, including hiring additional staff to perform fumigation inspections, conduct undercover surveillance, and research safer pest control methods. 5)Structural fumigation enforcement . DPR's enforcement of pesticide use in the field is largely carried out by the CACs AB 1177 Page 4 and their staff (approximately 400 inspector/biologists). CAC biologists inspect home pesticide applications, such as structural fumigations for termites, and check structural pest control employees for proper training and equipment. Since many pesticides are used in non-agricultural settings - such as sanitizers in municipal water treatment plants or disinfecting chemicals in food service facilities and hospitals - pesticide laws may overlap. Structural pest control companies are required to annually register with the CAC before conducting business in that county. Each of California's 58 counties may perform fumigation inspections at the CAC's discretion, and may work with DPR to determine a target fumigation inspection rate. Some CACs may not perform structural fumigation inspections due to a dearth of structural fumigations or prioritization of other types of inspections. Complaints relating to the use of pesticides, along with consumer health and worker safety issues are filed with the DPR. Individuals can file complaints about pest control operators and the performance of their work with the SPCB, which licenses and regulates individuals engaging in the practice of structural pest control. SPCB licensees may perform structural repairs or replacements and use pesticides, insecticides, rodenticides, fumigants, allied chemicals or substances, or mechanical devices for the purpose of eliminating, exterminating, controlling or preventing infestations or infections of pests. The main source of pest control complaints generally originate from homeowners or their real estate agents. 6)Enforcement funding . Under the SFEP, Los Angeles, Orange, Santa Clara, and San Diego Counties impose a $5 fee on each county fumigation treatment to fund increased enforcement and inspection activities. According to data provided by CACs participating in the SFEP, the program allows CACs to increase inspection rates, but total county enforcement expenditures still exceed SFEP revenues. County pest control operator registration fees, unclaimed gas taxes, county taxes, and funding from DPR help cover the remainder of the enforcement costs. In counties where the additional SFEP revenue is insufficient to allow for hiring of any additional personnel, CACs are faced with the AB 1177 Page 5 dilemma of balancing existing work plans with added fumigation inspection requirements. For this reason, the SFEP has historically been limited to those counties with the highest number of fumigations performed. 7)Question for the Committee . Santa Clara was added to the SFEP in 2007, but this bill would remove the county from the program. According to the author, the Santa Clara County CAC and pest control industry are still considering whether Santa Clara County should continue to participate in the SFEP. The Committee may wish to inquire of the author as to the rationale for removing Santa Clara County from the program. 8)Arguments in support . According to the Pest Control Operators of California (PCOC), "AB 1177 would extend the sunset date for the SFEP from January 1, 2014 to January 1, 2018. This program, originally conceived by [the PCOC], provides additional self-generated revenues to the CACs of Los Angeles, Orange, and San Diego Counties for heightened fumigation, inspection and enforcement activities. Existing law provides that the funds collected from the fees shall be paid to the county and used for the sole purpose of funding enforcement and training activities directly related to the structural fumigation program? The SFEP is needed to provide effective review, control, and enforcement of fumigation regulations. The law protects workers, public health, consumers and the environment from improper and illegal use of fumigants." According to the Santa Clara County Board of Supervisors (Santa Clara County BoS), "The Santa Clara County BoS urges your support of AB 1177, if amended to include Santa Clara County in the SFEP. Until now, Santa Clara County has been included in the SFEP since 2008 along with the counties of Los Angeles, Orange and San Diego. The SFEP is partially funded from industry fees, and requires the CAC to inspect structural fumigations that are performed in the county. "For the past few years, the number of fumigation inspections [performed in Santa Clara County] did not meet the expectations of the PCOC Fumigation Enforcement Committee. The inspections decreased because of a shift in resources to combat local pest infestations such as Light Brown Apple Moth and European Grapevine Moth. These pest eradication projects demanded [an] immediate response in order to protect [Santa AB 1177 Page 6 Clara County's] local agricultural industry and protect consumers by minimizing any chemical treatments required in the treatment process. With recent staffing changes made by the Santa Clara CAC and with more detailed fumigation notices by the local pest control operators, the fumigation enforcement program is now meeting industry expectations for the number of inspections performed. The majority of local industry companies are not opposed to amending AB 1177 to reinstate Santa Clara County." 9)Previous Legislation . AB 1736 (Ma), Chapter 238, Statutes of 2010, extended the sunset date of the SFEP to January 1, 2014. AB 2223 (Horton), Chapter 450, Statutes of 2008, re-added San Diego County in the existing SFEP and extended the SFEP sunset date to January 1, 2011. AB 126 (Beall), Chapter 379, Statutes of 2007, added Santa Clara County to the SFEP and added a January 1, 2010 sunset date to the SFEP. SB 230 (Figueroa), Chapter 42, Statutes of 2006, eliminated the SFEP sunset date. SB 2026 (Committee on Business, Professions, and Economic Development), Chapter 1013, Statutes of 2002, extended the SFEP sunset date to July 1, 2006. REGISTERED SUPPORT / OPPOSITION : Support Pest Control Operators of California Opposition None on file. Analysis Prepared by : Joanna Gin / B.,P. & C.P. / (916) 319-3301 AB 1177 Page 7