California Legislature—2015–16 Regular Session

Assembly Bill No. 2239

Introduced by Assembly Member Mathis

February 18, 2016

An act to amend Section 12841 of the Food and Agricultural Code, relating to pesticides.

LEGISLATIVE COUNSEL’S DIGEST

AB 2239, as introduced, Mathis. Pesticides: assessments on sales: combination products.

Existing law requires every person who sells a pesticide product for use in this state that has been registered by the Director of Pesticide Regulation to pay an assessment on all sales of the pesticide product, and requires the director to establish by regulation a mill assessment rate, not to exceed 21 mills ($0.021), as specified. Existing law requires the assessment for certain combination pesticide products to be based on the value of the active ingredient only if the director makes specified findings, including that the device is sold primarily for other than a pesticide use.

This bill would instead require the director, upon application for registration of a combination product, to determine the value of the active ingredients in the combination product and to establish the rate of assessment based on the percentage of the sales price attributable to the value of the active ingredients. The bill would define “active ingredient” and “combination product” for purposes of those provisions, and would make other nonsubstantive changes.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 12841 of the Food and Agricultural Code
is amended to read:

12841.  

(a) It is unlawful for a person to sell for use in this state
any pesticide products that have been registered by the director
for which the mill assessment established by this article, and the
regulations adopted pursuant to it, is not paid at the times specified
in Section 12843.

(b) Except as provided in subdivision (d), every person who
sells for use in this state a pesticide product that has been registered
by the director shall pay to the director the applicable assessment.
Those sales expressly include all sales made electronically,
telephonically, or by any other means that result in a pesticide
product being shipped to or used in this state. There is a rebuttable
presumption that pesticide products that are sold or distributed
into or within this state by any person are sold or distributed for
use in this state.

begin delete

(c) (1) Upon application of a registrant, the director shall
determine whether a fertilizer or paper product is used as a carrier
for a pesticide, and is sold in combination, and whether the mill
assessment under this article shall be on the pesticide value only,
when the product is designed, developed, and manufactured, and
sold primarily for other than a pesticide use. If the director finds
that the combination product has such a major component and is
designed, developed, manufactured, and sold primarily for other
than a pesticide use, the assessment provided by this article shall
be paid on the equivalent percentage of the sales price of the active
ingredients of the pesticide product. The director shall establish
this percentage of the sales price. The percentage shall be the ratio
of that portion of the sales price attributable to the pesticide portion
to the total sales price of the combination product.

end delete begin delete

(2) For purposes of this section, “active ingredient” means any
active ingredient that is required to be stated on the label on any
registered pesticide under Section 12883.

end delete begin insert

(c) Upon application for registration of a combination product,
the director shall determine the value of the active ingredients in
the combination product and shall establish the rate of assessment
based on the percentage of the sale price attributable to the value
of the active ingredients. An assessment shall not be paid on the
percentage of the sale price attributable to the value of the
instrument or appliance with which the active ingredients are
incorporated.

end insert

(d) Assessments provided for in this article for sales of registered
pesticides that are sold for use in this state shall be paid by the
registrant except as follows:

(1)  begin delete In those cases where end delete begin insert If end insert the registrant did not first sell the
pesticide begin delete into or within end delete begin insert in end insert this state or have actual knowledge, at
the time of its sale, that the pesticide would be sold for use in this
state, the assessment shall be paid by the licensed pesticide broker,
licensed pest control dealer, or other person who first sold the
pesticide for use in this state.

(2) A person is not required to pay an assessment on registered
products that are labeled only for use in further manufacturing or
formulating of pesticides.

(e) It has been and continues to be the intent of the Legislature
that this division requires the department to register all pesticides
begin delete prior to end delete begin insert before end insert their sale for use in this state and, except as
otherwise provided by law, requires the department to regulate
and control the use of pesticides in accordance with this division.
Except as provided in Section 12841.1, the department shall
continue to collect the assessment as provided in this article at the
same rate on all registered agricultural and registered
nonagricultural pesticides.

(f) (1) The mill assessment shall be paid at the following rates
per dollar of sales for all sales of pesticides for use in this state:

(A) From January 1, 1998, to March 31, 1999, inclusive, the
rate shall be 15.15 mills ($0.01515) plus any additional assessment
authorized by Section 12841.1.

(B) From April 1, 1999, to December 31, 2002, inclusive, the
rate shall be 17.5 mills ($0.0175) plus any additional assessment
authorized by Section 12841.1.

(C) From January 1, 2003, to December 31, 2003, inclusive,
the rate shall be 17.5 mills ($0.0175).

(D) For all transactions on or after January 1, 2004, the actual
rate shall be that set by regulations adopted by the director at a
rate adequate to support the department’s annual expenditures
authorized in the annual Budget Act and provide a prudent reserve.
The rate set by the director shall be no greater than 21 mills
($0.021). However, if regulations are not adopted before a payment
is due, payment shall be made at the rate of 17.5 mills ($0.0175),
and, upon adoption of regulations, payment of any additional
amount due shall be made.

(2) The regulations adopted pursuant to this section, or any
amendment thereto, shall be adopted by the director in accordance
with Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code. However, the
adoption, amendment, readoption, or repeal of these regulations
shall be considered by the Office of Administrative Law as an
emergency, and necessary for the immediate preservation of the
public peace, health, safety, and general welfare. Notwithstanding
any other begin delete provision of end delete law, the regulations shall remain in effect
until amended by the director. The director shall make available
to the public, upon the adoption of an emergency regulation
establishing a new rate, the information upon which the director
has calculated, based, or determined the new rate.

(g) The revenue collected pursuant to this section shall be
deposited in the Department of Pesticide Regulation Fund and
distributed as follows:

(1) Notwithstanding Sections 2282 and 12784, the director shall
pay, in accordance with the criteria set forth in Section 12844, the
following amounts to the counties as reimbursement for costs
incurred by the counties in the administration and enforcement of
Division 6 (commencing with Section 11401), this chapter, Chapter
3 (commencing with Section 14001), Chapter 3.4 (commencing
with Section 14090), and Chapter 3.5 (commencing with Section
14101):

(A) From January 1, 1998, to March 31, 1998, inclusive,
five-eighths of the money received during that period pursuant to
this section.

(B) From April 1, 1998 to June 30, 2004, an amount equal to
the revenue derived from 6 mills ($0.006) per dollar of sales for
all pesticide sales for use in this state.

(C) Beginning July 1, 2004, an amount equal to the revenue
derived from 7.6 mills ($0.0076) per dollar of sales for all pesticide
sales for use in this state.

(2) All funds not otherwise distributed pursuant to this
subdivision shall remain in the Department of Pesticide Regulation
Fund and shall be available for expenditure, upon appropriation,
to support the department’s operations.

begin insert

(h) For purposes of this section, the following definitions apply:

end insert begin insert

(1) “Active ingredient” means any active ingredient required
to be stated on the label of a pesticide pursuant to Section 12883.

end insert begin insert

(2) “Combination product” means a pesticide product with one
or more active ingredients combined with an instrument or
appliance used to deliver the pesticide that is sold with the
pesticide.

end insert