BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de León, Chair


          AB 1177 (Bocanegra) - Structural Fumigation
          
          Amended: August 13, 2013        Policy Vote: Business &  
          Professions 10-0
          Urgency: No                     Mandate: No
          Hearing Date: August 26, 2013                                
          Consultant: Jacqueline Wong-Hernandez                       
          
          This bill does not meet the criteria for referral to the  
          Suspense File. 
          

          Bill Summary: AB 1177 extends the sunset date for the Structural  
          Fumigation Enforcement Program (SFEP) under the Department of  
          Pesticide Regulation (DPR) for Los Angeles, Orange, San Diego,  
          and Santa Clara counties until January 1, 2018. This bill also  
          increases the fees paid to the county agricultural commissions  
          by fumigation companies to $8 for each structural fumigation.

          Fiscal Impact: Extending the sunset on this fee-funded program  
          will not result in new state costs. Increasing the fee on  
          businesses performing structural fumigations will result in a  
          significant revenue increase; that revenue will be used by the  
          DPR for enforcement activities.

          Background: "Fumigation" is the use of a substance to destroy  
          plant and animal life within an enclosed space. "Structural  
          fumigation" is the fumigation of houses or other structures,  
          such as railroad cars, ships, docks, trucks, and airplanes.  
          Structural fumigation is regulated primarily because it utilizes  
          large quantities of toxic chemicals which, if used incorrectly,  
          can result poisoning and cause illness or death in humans  
          (usually inhabitants returning to their homes after structural  
          fumigation).  

          The SFEP 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  
          $5 for each treatment.








          AB 1177 (Bocanegra)
          Page 1



          DPR uses fee-generated revenue to increase monitoring of  
          pesticide use through undercover inspections and surveillance  
          use this fee-generated revenue to increase monitoring of  
          pesticide use in structural fumigations through undercover  
          inspections and surveillance in the participating counties. The  
          SFEP was originally established in 1993 as a 2-year pilot  
          project in Los Angeles County, and the sunset date has been  
          extended a several times since then. In 1996, the pilot project  
          status was removed and the SFEP was expanded to include Orange  
          and San Diego counties. In 2007 the Santa Clara County was added  
          to the SFEP.

          Proposed Law: AB 1177 extends the sunset date for the SFEP for  
          Los Angeles, Orange, San Diego, and Santa Clara counties from  
          January 1, 2014 to until January 1, 2018. This bill also  
          increases the fees paid to the county agricultural commissions  
          by structural fumigation companies to $8 for each structural  
          fumigation, which are remitted to the DPR for enforcement  
          activities.

          Staff Comments: This bill extends the sunset on an existing DPR  
          program, the SFEP, which is fee-funded. This bill also increases  
          the current fee level of $5, which was set in 1993, to $8 per  
          structural fumigation. Increasing the fee on businesses  
          performing structural fumigations will allow the DPR to pay for  
          additional inspections and expanded oversight of structural  
          fumigation businesses.