BILL ANALYSIS                                                                                                                                                                                                    







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        | Hearing Date:June 14, 2010        |Bill No:AB                         |
        |                                   |1736                               |
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                      SENATE COMMITTEE ON BUSINESS, PROFESSIONS 
                               AND ECONOMIC DEVELOPMENT
                         Senator Gloria Negrete McLeod, Chair

                           Bill No:        AB 1736Author:Ma 
                       As Amended:  April 7, 2010  Fiscal:  Yes


        SUBJECT:  Structural Fumigation Enforcement Program.


        SUMMARY:  Extends the sunset date of the Structural Fumigation  
        Enforcement Program to January 1, 2014; and makes technical revisions.

        Existing law:
        
       1)Establishes a Structural Fumigation Enforcement Program (Program) in  
          Los Angeles, Orange, Santa Clara, and San Diego Counties,  
          authorizing the County Agricultural Commissioner (Commissioner) of  
          each county to contract with the Department of Pesticide Regulation  
          (DPR) to perform increased structural fumigation inspection and  
          enforcement activities in those counties.

       2)Requires any person who performs a structural fumigation in the  
          county to pay a $5 fee to the Commissioner for each fumigation  
          performed.

       3)Requires the fees collected pursuant to the Program to be used for  
          the sole purpose of funding enforcement and training activities  
          directly related to the Program.

       4)Sunsets the Program on January 1, 2011

        This bill:

       1)Deletes the provision for each Commissioner to contract with DPR to  
          perform inspections under the Program, and instead provides that the  
          Director of DPR shall have oversight over the Program, and requires  
          the Commissioner of each county to perform increased structural  





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          fumigation inspection and enforcement under the Program.

       2)Extends the sunset date of the Program to January 1, 2014.

       3)Makes technical and conforming changes.

        FISCAL EFFECT:  The Assembly Appropriations Committee analysis, dated  
        April 14, 2010, indicates there are no significant costs associated  
        with the bill.

        

        COMMENTS:
        
        1. Purpose.  This bill is sponsored by  Pest Control Operators of  
           California  and the  California Agricultural Commissioners and  
           Sealers Association  (Sponsors) to extend the sunset date for the  
           Structural Fumigation Enforcement Program from January 1, 2011 to  
           January 1, 2014.  According to the Sponsors, without this bill the  
           health and safety of workers, the public, and environment will be  
           put at risk and enforcement officials will be unable to rectify the  
           improper or illegal use of fumigants.

        2. 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 the Santa Clara  
           County was included in the Program, and in 2008, San Diego County  
           was again added to the Program.

        The Program exercises oversight over 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 five dollars for each  
           treatment.

        Counties use this fee-generated revenue to increase monitoring of  
           pesticide use through undercover inspections and surveillance.   
           While the DPR licenses and regulates commercial applicators,  





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           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.

        3. Changes to the Current Program.  This bill makes several technical  
           changes to the existing program.  Currently the Commissioner of  
           each county is authorized to contract with the DPR to perform  
           increased inspection and enforcement activities in the  
           participating counties.  The bill would revise these provisions to  
           instead provide that the Director of DPR shall have oversight over  
           the Program, and requires the Commissioner of each county to  
           perform increased inspections and enforcement under the Program.   
           CACASA states that this provision more accurately reflects how the  
           existing Program is operated.  Currently, DPR exercises oversight  
           over all county pesticide programs.  CACASA further states that the  
           "contract" requirement language in the current law does not make  
           sense because the industry already pays the counties directly and  
           the contract has no financial effect on either party.  CACASA  
           states that the bill's revisions do not change how the Program  
           operates but, instead more accurately reflects the existing  
           relationships which exist between the agencies in carrying out the  
           Program.

        4. Recent Inspection and Enforcement Activities.  The following table  
           reflects the recent inspection and enforcement activities in the  
           counties that participate in the program in fiscal year 2008/2009  
           as reported to the Committee by CACASA.  


         ----------------------------------------------------------------------------------------------------- 
        |     County     |  Los Angeles   |     Orange     |  Santa Clara   |   San Diego    |     Totals     |
        |                |   FY 2008/09   |   FY 2008/09   |   FY 2008/09   |   FY 2008/09   |                |
        |----------------+----------------+----------------+----------------+----------------+----------------|
        |Number of       |          27,288|          11,924|           6,321|           8,489|          54,022|
        |Fumigations     |                |                |                |                |                |
        |----------------+----------------+----------------+----------------+----------------+----------------|
        |Revenue         |        $136,440|         $59,620|         $31,605|         $44,355|        $272,020|
        |Generated       |                |                |                |                |                |
        |----------------+----------------+----------------+----------------+----------------+----------------|
        |Costs Expended  |   $349,600 for |        $155,196|         $51,950|        $106,962|        $663,708|
        |                |2.5 inspectors, |                |                |                |                |
        |                |    Total costs=|                |                |                |                |
        |                |        $650,000|                |                |                |                |
        |----------------+----------------+----------------+----------------+----------------+----------------|





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        |Number of       |      1,395 Full|           2,069|             174|             181|       3819 Full|
        |Inspections     |     896 Partial|                |                |                |     896 Partial|
        |----------------+----------------+----------------+----------------+----------------+----------------|
        |Violations      |              78|              71|              23|              16|             188|
        |Found           |                |                |                |                |                |
        |----------------+----------------+----------------+----------------+----------------+----------------|
        |Actions Taken   |       52 NOPA's|       40- NOV's|  4 admin civil |        5 NOPA's|       78 NOPA's|
        |                |     35 warning |      21- NOPA's|       penalties|                |        40 NOV's|
        |                |         letters|                |                |                |     35 warning |
        |                |                |                |                |                |         letters|
        |                |                |                |                |                |        4 admin |
        |                |                |                |                |                |      pentalties|
        |----------------+----------------+----------------+----------------+----------------+----------------|
        |Cases Sent to   |               6|               0|               0|               1|7               |
        |SPCB            |                |                |                |                |                |
         ----------------------------------------------------------------------------------------------------- 

          The following notes are helpful in understanding the terms used in  
          the table:

              Notice of Proposed Action (NOPA)  .  It is the original notice that  
             is sent to alleged violators, explaining the nature of the  
             violations, the proposed penalty, and offering the opportunity  
             for a hearing on the matter, or the opportunity to stipulate to  
             the offense and pay the proposed penalty.  The term NOPA is  
             typically used to refer to the entire administrative civil  
             process for prosecution of a violation.  The entire process, from  
             notice to hearing to appeal process, is set forth in  
             Administrative Procedures Act.

              Notice of Violation (NOV)  .  A NOV is issued upon observation of a  
             violation and is the formal means of notification and  
             documentation that a violation was found.  The DPR Enforcement  
             Response Regulations require violations to be prosecuted or, in  
             the case of minor violations committed by a company with a good  
             compliance record, a Decision Letter is submitted by the  
             Commissioner to DPR for consideration of mitigating circumstances  
             by the DPR.  In cases where DPR concurs with the explanation of  
             why no prosecutorial action is justified, no further action is  
             taken.

              Full Inspection  .  An inspection is considered a full inspection  
             when the inspector observes:  the tenting process and  
             introduction of the fumigant; the removal of the fumigant and the  
             tent; and/or the complete process including the certification  
             phase in which the structure is verified as safer for re-entry.





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              Partial Inspection  .  An inspection is considered a partial  
             inspection when the inspector arrives to a site, finds the  
             process already in progress, and can only observe a limited  
             number of compliance requirements.

              Structural Pest Control Board  (SPCB).  The SPCB licenses and  
             regulates structural pest control operators in the state, and  
             takes disciplinary and enforcement actions against those who  
             violate the licensing laws.

        5. Prior Legislation.   AB 2223  (Horton, Chapter 450, Statutes of 2008)  
           included San Diego County in the existing Program and extended the  
           sunset date on the program to January 1, 2011.

         AB 126  (Beall, Chapter 379, Statutes of 2007) added Santa Clara County  
           to the existing Program, specified that fees collected under the  
           program shall not be used to supplant other funds and  
           re-established a sunset date of January 1, 2010 on the Program.

         SB 230  (Figueroa, Chapter 42, Statutes of 2006) eliminated the July 1,  
           2006 sunset of the Program in Los Angeles and Orange Counties.

         SB 2026  (B&P Committee, Chapter 1013, Statutes of 2002) extended the  
           sunset date to July 1, 2006.

         SB 1307  (B&P Committee, Chapter 983, Statutes of 1999) removed San  
           Diego County from the Program, and provided that revenues from fees  
           that are collected may be used for training in addition to  
           enforcement of the structural fumigation enforcement project.   
           Extended the sunset date to July 1, 2003.

         SB 2238  (B&P Committee, Chapter 879, Statutes of 1998), AB 1678  
           (CPGE&ED Committee, Chapter 982, Statutes of 1999) extended the  
           sunset date to January 1, 2000.

         SB 530  (Kelley, Chapter 71, Statutes of 1996) removed the "pilot  
           project" status, and expanded the Program to include Orange County,  
           and San Diego County in addition to Los Angeles County.  Extended  
           the sunset date to January 1, 1999.

         SB 378  (Calderon, Chapter 691, Statutes of 1995) extended the sunset  
           date to January 1, 1997.

         AB 1053  (Tucker, Chapter, 393, Statutes of 1993) established a  
           two-year pilot project in Los Angeles County to perform structural  





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           fumigation inspections and enforcement activities.  Required the  
           DPR to contract with the Los Angeles County Agricultural  
           Commissioner for this purpose.  Imposed a $5 fee on each fumigation  
           in the county to pay for the enforcement activities.  Provided that  
           up to 5% of revenue may be used for DPR or county administrative  
           expenses.  Established a January 1, 1996 sunset.
        
        6. Arguments in Support.  The  Pest Control Operators of California  , in  
           sponsoring the bill, writes that the Program "provides additional  
           self-generated revenues to the Agricultural Commissioners of Los  
           Angeles, Orange, Santa Clara, and San Diego Counties for heightened  
           fumigation, inspection, and enforcement activities. . . The Program  
           is needed to provide effective review, control, and enforcement of  
           fumigation regulations.  The law protects workers, public health,  
           and the environment from improper and illegal use of fumigants."


         California Agricultural Commissioners and Sealers Association   
           (CACASA), in co-sponsoring the bill, states that this supplemental  
           program is operated entirely by the collection of local fees and  
           has no impact on the State General Fund.  Currently the  
           Agricultural Commissioners in the four participating counties  
           provide an additional level of oversight and enforcement on  
           structural fumigation projects within their jurisdictions; which  
           assists in policing those who may cause health and safety hazards.   
           CACASA believes that the industry benefits from a level playing  
           field and fewer overall violations and complaints through the  
           Program.

        The  County of Santa Clara Board of Supervisors  states that  
           approximately 6,500 structural fumigations are performed each year  
           in Santa Clara County, providing $32,500 in fee revenue that is  
           used to help protect residents from misuse of pesticides used in  
           termite fumigations.

         7. Policy Issue  :  Is the Program Meeting its Intended Objectives?  As  
           indicated, the Program was originally intended to provide better  
           oversight of the structural fumigation industry and to ensure  
           regulatory compliance and protect the public, industry workers, and  
           ultimately the environment from improper or illegal pesticide use.   
           The fees generated by this Program for local enforcement of pest  
           control fumigation laws were to be used primarily for more  
           inspectors and research on safer pest control methods.

        Since the initial start of this Program in 1993, there has been no  
           study or audit conducted to determine the efficacy of this program  





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           and whether it is achieving the intended benefits of providing  
           safer and more effective oversight of pesticide use within these  
           counties which utilize this program and whether it should possibly  
           be expanded to other counties.

        Would recommend that before this Program is continued again in three  
           years that a study or audit of the Program be conducted and  
           submitted to the Legislature by January 1, 2013. 


        SUPPORT AND OPPOSITION:
        
         Support:  

        Pest Control Operators of California (Sponsor)
        California Agricultural Commissioners and Sealers Association  
          (Sponsor)
        County of Santa Clara Board of Supervisors

         Opposition:  

        None received as of June 9, 2010



        Consultant:G. V. Ayers