BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 1282 (Leno) - Pesticides: neonicotinoids: labeling and restricted material designation ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: February 19, 2016 |Policy Vote: E.Q. 4 - 2 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: Yes | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 9, 2016 |Consultant: Narisha Bonakdar | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: SB 1282 requires the Department of Pesticide Regulations (DPR), on and after July 1, 2017, to require labeling of all commercially available seeds and plants sold at retail establishments, excluding noxious weed seeds and plants, that have been treated with a neonicotinoid pesticide. The bill also requires, by January 1, 2018, to designate neonicotinoid pesticides as restricted materials. Fiscal Impact: Significant cost impacts, potentially in the low millions (General Fund), to DPR. Background: Chapter 2 of Division 7 of the Food and Agricultural Code (Commencing with §12751) establishes the state's pesticide regulatory program and requires that DPR, among other things, provide for the proper, safe, and efficient use of pesticides; protection of public health and safety; and protection of the environment from environmentally harmful pesticides by prohibiting, regulating, or ensuring proper stewardship of those pesticides. Specifically, §12824 requires the director to eliminate from use any pesticide that endangers the agricultural SB 1282 (Leno) Page 1 of ? or nonagricultural environment. Neonicotinoids are a class of insecticides that affect the central nervous system of insects causing paralysis and death. Concerns have been raised since the initial registration of neonicotinoids regarding their potential environmental fate and effects, particularly as they relate to pollinators. In 2009, DPR began reevaluating a class of neonicotinoids in response to its evaluation of data that found that foraging bees may be exposed to levels of the insecticide well above the lethal concentration. Based on data showing a potential hazard to honey bees, in 2009, the Department of Pesticide Regulation initiated reevaluation of pesticide products containing four neonicotinoid chemicals, including imidacloprid, thiamethoxam, clothianidin, and dinotefuran. DPR is required to complete its reevaluation by July 1, 2018, and to adopt necessary control measures for these pesticides by July 1, 2020. Proposed Law: This bill: 1) Requires DPR, on and after July 1, 2017, to require labeling of commercially available seeds and plants sold at retail establishments, excluding noxious weed seeds and plants, that have been treated with a neonicotinoid pesticide. 2) Requires DPR to designate neonicotinoid pesticides as restricted materials by January 1, 2018. Because a violation of the regulations adopted pursuant to the bill's provisions would be a misdemeanor, the bill would impose a state-mandated local program. 3) Allows the Director of DPR to exempt products sold or applied by veterinarians from the restrictions and requirements governing the use and possession of neonicotinoid pesticides. Related Legislation:1. AB 1789 (Williams, Chapter 578, Statutes of 2014) requires, on or before July 1, 2018, the DPR to issue a reevaluation of neonicotinoids and requires, within two years after making the reevaluation, DPR to adopt any control measures necessary to protect pollinator health. SB 1282 (Leno) Page 2 of ? Staff Comments: DPR indicates General Fund costs of approximately $13 million (as outlined below) to establish a new program to regulate the sales of neonicotinoid treated seeds and plants. Costs include developing new regulations; registering and tracking companies that sell neonicotinoid treated plants and seed; enforcing compliance with labeling requirements at the retail establishments; and to enforce and monitor for neonicotinoids on plants and seeds. DPR notes that General Fund monies are required because seeds and plants are not pesticides so DPR will not collect a mill on these products. Staff notes that sufficient information to support some of the costs indicated below was not available. Regulation development $ 33,000 Outreach (printing and contractual) $ 350,000 Compliance and Enforcement $ 9,100,000 Information technology $ 3,600,000 Total $13,083,000 DPR also notes a potential revenue loss of $1.1 million annually in mill assessments resulting from the designation of neonicotinoid pesticides as a restricted material, as well as a reduction of approximately $660,000 annually to the local county agricultural commissions. It is unclear how much of these potential revenue reductions would be offset by restricted material fees, the purchases of alternative consumer use pesticides, and mill assessments paid by certificated pesticide applicators who could legally apply neonicotinoid pesticides after 2018. SB 1282 (Leno) Page 3 of ? -- END --