BILL ANALYSIS Ó AB 1177 Page 1 Date of Hearing: May 8, 2013 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair AB 1177 (Bocanegra) - As Introduced: February 22, 2013 Policy Committee: Business and Professions Vote: 12 - 0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill 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 until January 1, 2018, and removes Santa Clara County from the program. FISCAL EFFECT There are no significant costs associated with extending this program. Pest control businesses agree to pay an additional fee to the counties in return for increased inspections and oversight. COMMENTS 1)Rationale . This bill would extend the sunset date for the SFEP by four years to January 1, 2018, which would allow the county agricultural commissioners (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. The author notes that absent this legislation, the SFEP lapses January 1, 2014. 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. AB 1177 Page 2 2)Structural Fumigation Enforcement Program (SFEP) . The SFEP regulates the structural fumigation industry and DPR inspects fumigation companies to ensure regulatory compliance and protect the public, industry workers, and the environment. Any person who performs a structural fumigation in Los Angeles, Orange, Santa Clara, and San Diego Counties must pay the county agricultural commissioner a fee of five dollars for each treatment. DPR uses fee-generated revenue to increase monitoring of pesticide use through undercover inspections and surveillance. While the DPR licenses and regulates commercial applicators, dealers, consultants, and other pesticide professionals statewide, the SFEP originated from an increased need to enforce local structural pest control fumigation laws in counties where most fumigations are performed by collecting fees for more inspectors and research on safer pest control methods. 3)Background . This program was established in 1993 as a two-year pilot in Los Angeles County only. Since that time, Orange County, Santa Clara County, and San Diego County have been added to the program and the sunset has been extended several times and then was eliminated by SB 230 (Figueroa)/Chapter 42 of 2006. In 2007, AB 126 (Beall)/Chapter 379 extended the program to include Santa Clara County and re-established a sunset date of January 1, 2010. In 2008, AB 2223 (Horton)/Chapter 450 added San Diego County and extended the program to January 1, 2011. 4)Why Remove Santa Clara County ? According to industry representatives, at this time Santa Clara County's inspection program is not robust enough to justify the continued use of the industry self-assessment as a funding source. The recession, budget cuts and personnel changes within the county have negatively affected the county's inspection program such that it is not presently an effective use of industry funds. Discussions between the industry and the county are ongoing and there is optimism that as the new county agricultural commissioner settles in and develops a stronger relationship with the industry that both can work together to bring Santa Clara County back in to the program. Analysis Prepared by : Julie Salley-Gray / APPR. / (916) AB 1177 Page 3 319-2081