BILL ANALYSIS Ó
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|Hearing Date:July 1, 2013 |Bill No:AB |
| |1177 |
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SENATE COMMITTEE ON BUSINESS, PROFESSIONS
AND ECONOMIC DEVELOPMENT
Senator Ted W. Lieu, Chair
Bill No: AB 1177Author:Bocanegra
As Introduced: June 25, 2013 Fiscal:Yes
SUBJECT: Structural fumigation.
SUMMARY: Extends the sunset date for the Structural Fumigation
Enforcement Program (Program) under the Department of Pesticide
Regulation for Los Angeles, Orange and San Diego Counties to January
1, 2018, and removes Santa Clara County from the Program.
Existing law:
1)Establishes the Program in Los Angeles, Orange, Santa Clara and San
Diego Counties under the oversight of the Department of Pesticide
Regulations (DPR) and authorizes the county agricultural
commissioner (Commissioner) of each county to perform increased
structural fumigation, inspection, and enforcement activities those
counties. (Business and Professions Code (BPC) § 8698)
2)Under the Program, requires any person who performs a structural
fumigation in the county to pay a $5 fee to the Commissioner for
each fumigation performed. (BPC § 8698.1)
3)Requires the funds collected by the counties under the Program to be
used for the sole purpose of funding enforcement and training
activities directly related to the Program. (BPC § 8698.5)
4)Defines "structural pest control" and "pest control" 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,
eliminating, exterminating, controlling or preventing the
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infestation of such pests, and making structural repairs or
replacements, as specified. (BPC § 8505)
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, 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. Further specified that lethal
fumigants include: methyl bromide, sulfur dioxide, propylene oxide,
sulfuryl fluoride and aluminum phosphide. (BPC § 8505.1)
7)Sunsets the Program on January 1, 2014. (BPC § 8698.6)
This bill:
1)Extends the sunset date of the Program for Los Angeles, Orange and
San Diego Counties to January 1, 2018.
2)Increases the fee paid under the Program, for each structural
fumigation, from $5 to $8.
3)Removes Santa Clara County from the Program.
FISCAL EFFECT: The Assembly Appropriations Committee analysis dated
May 8, 2013 cites that there are no significant costs associated with
extending the Program. Pest control businesses agree to pay an
additional fee to the counties in return for increased inspections and
oversight.
COMMENTS:
1.Purpose. This bill is sponsored by the Author to extend the sunset
date for the Program by four years to January 1, 2018, which would
allow the Commissioners of Los Angeles, Orange and San Diego
Counties to continue to collect a $5 fee for each fumigation
performed in a household or structure, within those counties, to
fund local structural fumigation enforcement and research
activities. This bill also removes Santa Clara County from the
Program.
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2.Background. The Program was originally established in 1993 as a
two-year pilot project in Los Angeles County as a way to help ensure
the safety of fumigation operators. The Program sought to ensure
the proper handling of chemicals and the correct use of safety
equipment among other important features. The sunset date has been
extended a number of times since then. In 1996, the pilot project
status was removed and the Program was expanded to also include
Orange County and San Diego County. In 1999, San Diego County opted
out of the Program. In 2007 the Santa Clara County was included in
the Program, and in 2008, San Diego County was again added to the
Program. This bill would remove Santa Clara County from the
program.
The Program exercises oversight of 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.
Counties use this fee-generated revenue to increase monitoring of
pesticide use in structural fumigations through undercover
inspections and surveillance. While the DPR licenses and regulates
commercial applicators, dealers, consultants and other pesticide
professionals statewide, the Program 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.Fumigation. "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 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.
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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 they use.
4. Recent Program Inspection Activities. The following table reflects
the recent inspection activities in the counties that participate
in the program for 2010-2012 as reported by PCOC.
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| County | Los Angeles | Orange | Santa Clara | San Diego | Totals |
| | 2010-2012 | 2010-2012 | 2010-2012 | 2010-2012 | |
|----------------+----------------+----------------+----------------+----------------+----------------|
|Number of | 85,351| 41,049| 20289| 50,986| 197,675|
|Fumigations | | | | | |
|----------------+----------------+----------------+----------------+----------------+----------------|
|Number of | 4148| 1400| 274| 868| 6,690|
|Inspections | | | | | |
|----------------+----------------+----------------+----------------+----------------+----------------|
|Rate of | 4.86%| 3.41%| 1.35%| 1.7%| 3.4%|
|Inspection | | | | | |
|----------------+----------------+----------------+----------------+----------------+----------------|
|Revenue | $426,755| $205,245| $101,445| $254,930|$988,375 |
|Generated | | | | | |
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5.Structural Pest Control Board (SPCB). The SPCB licenses and
regulates more than 24,000 structural pest control operators, field
representatives, applicators and registered structural pest control
companies in the state, and takes disciplinary and enforcement
actions against those who violate the licensing laws. SPCB issues
licenses in three specified areas of pest control: Branch 1 -
Fumigation, Branch 2 - General pest and Branch 3 - Termite.
The SPCB is located within the DPR, and as of July 1, 2013, will be
transferred from DPR into the Department of Consumer Affairs under
Governor's Reorganization Plan No. 2, 2012. The SPCB was previously
transferred from the jurisdiction of DCA to the jurisdiction of DPR
by AB X4 20 (Strickland, Chapter 18, Statutes of 2009).
6.Fee Bill Worksheet. At the request of the Committee, the Author
submitted a Fee Background Information Questionnaire (Questionnaire)
which was completed by the PCOC, the industry association supporting
the bill. This Questionnaire is required by the Committee to
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justify any fee increases and provide background information on
requested fee increases.
The following is a summary of the responses to the Questionnaire:
a) Provide the history for the past 10 years of legislative fee
increase authorizations.
The Program was started through industry-sponsored legislation
where fumigation companies saw the need for increased scrutiny
and attention in this sensitive sector of the pest control
industry. The Program fee has remained $5 per fumigation
performed since the program originated in 1993, while the
counties' cost of performing the added inspections has increased
each year. Statistical analysis performed by Los Angeles County
in 2009 showed the $5 fee was insufficient to cover the
additional 2% to 3% increase in inspection rates and counties
have been requesting an increase for some time. Based on the
program's success in improving regulatory compliance amongst
fumigation practitioners, both industry and the regulatory
community are in strong support of the proposed fee increase to
$8 per fumigation application. Without the additional funding,
the program will not be sustainable due to increased costs. This
would result in decreased structural fumigation inspection rates
and staffing reductions in member counties.
b) Summarize the rationale and justification for the proposed
change.
Revenues vary by county based on their size and negotiated
work plan, and are provided through the Department of Pesticide
Regulation for pesticide enforcement. Generally, existing
funding through the state agency provides county agricultural
commissioners the ability to perform 1% to 1 % inspection
rates of all structural fumigation applications conducted in
their respective counties.
The revenues provided by this program are kept separate
and are earmarked solely for use in increasing structural
fumigation inspections and enforcement activities. These funds
are provided in addition to, and not intended to supplant,
existing funding. In 2012, $347,000 was provided to the four
member counties in additional funding through this program to
provide for an increased target inspection rate of 3 % to 4%.
The total amount of revenue varies based on the number of
fumigation applications performed in each member county and is
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collected directly by each county through a company reporting
process.
a) Comparison of the existing and proposed fees.
The bill proposes to increase the fee paid for each structural
fumigation performed in the counties in which the Program
operates $5 to $8; a 60% increase.
1.Related Legislation. SB 662 (Galgiani, 2013) increases the minimum
limit for liability insurance to $500,000 for a structural pest
control company; increases the amount of the surety bond required to
maintain a license or company registration to $12,500; increases the
upper limit of a surety bond required for issuance, reissuance, or
restoration of a license or company registration, after a suspension
or revocation, to $25,000. ( Status : This bill has been referred to
the Assembly Appropriations Committee for hearing.)
2.Prior Legislation. AB 1736 (Ma, Chapter 238, Statutes of 2010) made
technical changes to the Program and extended the sunset date of the
Program to January 1, 2014.
AB 2223 (Horton, Chapter 450, Statutes of 2008) added San Diego County
to the existing Program and extended the sunset date on the Program
to January 1, 2011.
AB 126 (Beall, Chapter 379, Statutes of 2007) added Santa Clara County
to the existing Program, specified that fees collected under the
program shall not be used to supplant other funds and re-established
a sunset date of January 1, 2010 on the Program.
SB 230 (Figueroa, Chapter 42, Statutes of 2006) eliminated the July 1,
2006 sunset of the Program in Los Angeles and Orange Counties.
SB 2026 (B&P Committee, Chapter 1013, Statutes of 2002) extended the
sunset date to July 1, 2006.
SB 1307 (B&P Committee, Chapter 983, Statutes of 1999), AB 1678
(CPGE&ED Committee, Chapter 982, Statutes of 1999) removed San Diego
County from the Program, and provided that revenues from fees that
are collected shall be used solely for training in addition to
enforcement of the structural fumigation enforcement project.
Extended the sunset date to July 1, 2003.
SB 2238 (B&P Committee, Chapter 879, Statutes of 1998) extended the
sunset date of the Program to January 1, 2000.
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SB 530 (Kelley, Chapter 71, Statutes of 1996) removed the "pilot
project" status, and expanded the Program to include Orange County,
and San Diego County in addition to Los Angeles County. Extended
the sunset date to January 1, 1999.
SB 378 (Calderon, Chapter 691, Statutes of 1995) extended the sunset
date of the Program to January 1, 1997.
AB 1053 (Tucker, Chapter, 393, Statutes of 1993) established a two-year
pilot project in Los Angeles County to perform structural fumigation
inspections and enforcement activities. Required the DPR to
contract with the Los Angeles County Agricultural Commissioner for
this purpose. Imposed a $5 fee on each fumigation in the county to
pay for the enforcement activities. Provided that up to 5% of
revenue may be used for DPR or county administrative expenses.
Established a January 1, 1996 sunset.
3.Arguments in Support. Writing in support of the bill, Pest Control
Operators of California (PCOC) states that the Program, originally
conceived by PCOC, provides additional self-generated revenues to
the Commissioners 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. PCOC argues that the Program 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 PCOC.
The California Agricultural Commissioners and Sealers Association
(CACASA) supports the bill stating the Program is a cooperative
relationship between county agricultural commissioners and the local
pest control operators. This bill extends the authorization to
collect the fee to continue the local programs in Los Angeles,
Orange, and San Diego counties. The bill also appropriately
increases the $5 fee to $8 per fumigation, which will ensure that
the program will meet expected benchmarks and benefit the industry
who support the program for the added enforcement and oversight.
CACASA supports extending the sunset, but also encourages the Author
and the industry representatives to continue discussions with the
County of Santa Clara as well as other appropriately viable counties
that may be added to the program in the future.
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4.Santa Clara County. This bill removes Santa Clara County from the
Program. Santa Clara County was added to the Program six years ago
by AB 126 (Beall) in 2007. According to industry representatives,
when AB 1177 was introduced earlier this year, Santa Clara County's
inspection program was not robust enough to justify its continued
use. The recession, budget cuts and personnel changes within the
county negatively affected the county's inspection program such that
it has not been an effective use of industry funds. According to
PCOC, discussions between the industry and the county have been
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 keep Santa Clara County
in the Program.
5. Policy Issue for Consideration. When this bill was heard in the
Assembly Business, Professions and Consumer Protection Committee,
the Author committed to Chair of that Committee to put Santa Clara
County back in the bill if the Program demonstrated progress as it
is carried out in the County. The PCOC has indicated that it does
not expect sufficient data on the Program to be collected until July
or August of this year.
The Committee may wish to ask the Author to commit to not move this
bill off of the Senate Floor until the Author collaborates with the
Committee staff to review the data and a final decision is made
about whether or not to add Santa Clara County back into the bill.
SUPPORT AND OPPOSITION:
Support:
California Agricultural Commissioners and Sealers Association
Pest Control Operators of California
Terminix
Opposition:
None received as of June 26, 2013.
Consultant:G. V. Ayers
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