BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1177| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 1177 Author: Bocanegra (D) Amended: 9/6/13 in Senate Vote: 21 SENATE BUSINESS, PROF. & ECON. DEVELOP. COMM. : 10-0, 7/1/13 AYES: Lieu, Emmerson, Block, Corbett, Galgiani, Hernandez, Hill, Padilla, Wyland, Yee SENATE APPROPRIATIONS COMMITTEE : 5-2, 8/26/13 AYES: De León, Hill, Lara, Padilla, Steinberg NOES: Walters, Gaines ASSEMBLY FLOOR : 71-1, 5/24/13 - See last page for vote SUBJECT : Structural fumigation SOURCE : Author DIGEST : This bill extends the sunset date, to January 1, 2018, for the Structural Fumigation Enforcement Program (Program) under the Department of Pesticide Regulation (DPR) for Los Angeles, Orange, Santa Clara, and San Diego Counties; and increases the fee paid under the Program, from $5 to $8. Senate Floor Amendments of 9/6/13 update and clarify terms related to the Program; add a provision requiring payment of delinquent Program fees; and make other clarifying and conforming changes. CONTINUED AB 1177 Page 2 ANALYSIS : Existing law: 1. Establishes the Program in Los Angeles, Orange, Santa Clara, and San Diego Counties under the oversight of the DPR and authorizes the county agricultural commissioner (commissioner) of each county to perform increased structural fumigation, inspection, and enforcement activities those counties. Sunsets the Program on January 1, 2014. 2. Requires, under the Program, any person who performs a structural fumigation in the county to pay a $5 fee to the commissioner for each fumigation performed; and requires the fees to be accompanied by a copy of a monthly pesticide use report, as specified. 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. 4. Defines the following terms: A. "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 infestation of such pests, and making structural repairs or replacements, as specified. B. "Fumigator" as any individual licensed by the Structural Pest Control Board 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. C. "Fumigation" as the use of a substance to destroy plant and animal life within an enclosed space that has CONTINUED AB 1177 Page 3 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. This bill: 1. Extends the sunset date of the Program for Los Angeles, Orange, Santa Clara, 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. Updates terminology related to the Program to refer to (a) "company" rather than a "person" who performs a fumigation; (b) "structural fumigation" rather than a "treatment;" and (c) "location" rather than a "building or structure." 4. Revises the monthly report submitted by a pest control company to the commissioner to more accurately reflect the way the report is used in the field. 5. Authorizes a commissioner to require full payment of any delinquent fees due to the county under the Program as a condition of registering a pest control license to operate a pest control business in the county. 6. Makes other clarifying and conforming changes. 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, Santa Clara County was included in the Program, and in 2008, San Diego County was again added to the Program. CONTINUED AB 1177 Page 4 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 commissioner a fee of $5 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. 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. 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. 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 the CONTINUED AB 1177 Page 5 Pest Control Operators of California (PCOC). ----------------------------------------------------------------------------------------------------- | County | Los Angeles | Orange | Santa Clara | San Diego | Totals | | | 2010-2012 | 2010-2012 | 2010-2012 | 2010-2012 | | |----------------+----------------+----------------+----------------+----------------+----------------| |Number of | 85,351| 41,049| 20,289| 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 | | | | | | ----------------------------------------------------------------------------------------------------- FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No According to the Senate Appropriations Committee, 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. SUPPORT : (Verified 9/9/13) California Agricultural Commissioners and Sealers Association Pest Control Operators of California Terminix ARGUMENTS IN SUPPORT : PCOC states that the Program, originally conceived by PCOC, provides additional self-generated revenues to the Commissioners of Los Angeles, Orange, Santa Clara, 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 CONTINUED AB 1177 Page 6 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) states the Program is a cooperative relationship between 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, Santa Clara, and San Diego counties. This 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 that support the program for the added enforcement and oversight. CACASA supports extending the sunset. ASSEMBLY FLOOR : 71-1, 5/24/13 AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom, Blumenfield, Bocanegra, Bonilla, Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley, Dahle, Daly, Dickinson, Eggman, Fong, Fox, Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gordon, Gorell, Gray, Hagman, Hall, Harkey, Roger Hernández, Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein, Mansoor, Medina, Melendez, Mitchell, Morrell, Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson, Perea, V. Manuel Pérez, Quirk, Quirk-Silva, Rendon, Salas, Stone, Ting, Wagner, Weber, Wieckowski, Williams, Yamada, John A. Pérez NOES: Donnelly NO VOTE RECORDED: Bonta, Grove, Holden, Skinner, Waldron, Wilk, Vacancy, Vacancy MW:d 9/9/13 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED