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
          
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          |Version: February 19, 2016      |Policy Vote: E.Q. 4 - 2         |
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          |Urgency: No                     |Mandate: Yes                    |
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          |Hearing Date: May 9, 2016       |Consultant: Narisha Bonakdar    |
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          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  







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          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. 









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          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.
          












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