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.