BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           1157 (DeSaulnier)
          
          Hearing Date:  05/27/2010           Amended: 04/28/2010
          Consultant:  Brendan McCarthy   Policy Vote: Ed. 6-2, EQ 5-0














































          SB 1157 (DeSaulnier), Page 2


          _________________________________________________________________ 
          ____
          BILL SUMMARY: SB 1157 prohibits public schools from using  
          certain pesticides on school property. The bill allows  
          exceptions to the prohibition, under certain circumstances. The  
          bill requires the Department of Pesticide Regulation to impose a  
          fee on manufacturers or importers of specified pesticides, to  
          pay for the costs of implementing the bill.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund
           
          Identifying pesticides  $270                            Special  
          *                      
             and developing regulations                           

          Providing information to          $125        $125       
          $125Special **
            schools on pesticides

          Collecting fees                   $425        $425      Special  
          **

          Mandate costs to schools          Unknown               Special  
          **

          * Department of Pesticide Regulation Fund. Costs to be repaid  
          from future fee revenues.
          ** Healthy Schools Act fund of 2010. Costs will be offset with  
          fee revenues.
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: SUSPENSE FILE. AS PROPOSED TO BE AMENDED.
          
          Under the Healthy Schools Act of 2000 (Shelley, Chapter 718,  
          Statues of 2000), public schools are required to provide notice  
          to staff and parents regarding pesticide use in the school.  
          Schools are also required to post notice of pesticide use,  
          retain records of pesticide use, and may not use certain  
          pesticides that have been approved for limited use in the state.  
          Current law requires the Department of Pesticide Regulation to  
          promote and facilitate the use of integrated pest management  
          programs (as an alternative to the traditional use of  







          SB 1157 (DeSaulnier), Page 2


          pesticides).

          Under current law, the Department collects a "mill assessment"  
          of 2.1 cents on every dollar of the sale price of pesticides.  
          The mill assessment is levied on the first sale of a pesticide  
          into the state. Revenues from the mill assessment are used to  
          fund the Department's regulatory program.

          SB 1157 prohibits schools from using the "most highly toxic"  
          pesticides, as specified in the bill, on school property. The  
          bill includes specific criteria for determining whether a  
          pesticide qualifies as being most highly toxic. For example,  
          pesticides containing ingredients that have been identified as  
          being carcinogenic or causing birth defects by the U.S.  
          Environmental Protection Agency would be covered by the bill.  
          The bill exempts some uses of these pesticides, such as  
          antimicrobial pesticides, agricultural uses, and other specific  
          uses. In addition, the bill allows schools to use the most  
          highly toxic pesticides under limited emergency circumstances  
          when the use of these pesticides is necessary to protect the  
          health and safety of students or school employees.

          The bill requires the Department of Toxic Substances Control to  
          assess a fee on manufacturers or importers of the most highly  
          toxic pesticides. Fee revenues must be sufficient to pay for the  
          costs of implementing the bill, including any mandate costs  
          incurred by schools in complying with the bill.

          In order to asses the fee required under the bill, the  
          Department of Pesticide Regulation will have to determine which  
          pesticides sold in California meet the criteria to be considered  
          "most highly toxic" and then to identify the producers or  
          importers of those pesticides. In addition, the bill requires  
          the Department to adopt regulations to implement the fee. Staff  
          estimates that the Department will need at least two additional  
          positions in the first year of implementation to adopt the fee  
          regulation. In the first year, the costs incurred by the  
          Department are likely to be covered by the revenues from the  
          mill assessment, until the new fee has been established.

          The Department will likely be called upon by schools to provide  
          assistance in identifying prohibited pesticides and potentially  
          identifying alternative pesticides. Staff estimates that  
          providing this assistance will require one additional position.

          The Department will likely also need additional staff to collect  







          SB 1157 (DeSaulnier), Page 2


          fees and audit manufacturers or importers of highly toxic  
          pesticides. Because this fee will be paid by a subset of  
          pesticide manufacturers or importers, the Department will have  
          to establish a separate collection process. In addition, because  
          the number of pesticides that meet the criteria of "most highly  
          toxic" may change over time, the Department will need ongoing  
          staff to keep the list of pesticides subject to the new fee  
          updated and to ensure that all applicable manufacturers or  
          importers are paying required fees.
          
          Because the bill prohibits the use of certain pesticides in  
          schools, the bill may impose some additional costs on school  
          districts. For example, schools may switch to more costly  
          pesticides or incur administrative costs in selecting  
          alternative pest control strategies. It is not known whether the  
          Commission on State Mandates will rule that school districts  
          must be reimbursed by the state for any additional costs  
          associated with the bill. To the extent that the Commission does  
          rule that schools are allowed to seek reimbursement from the  
          state, revenues from the new fee would offset those mandate  
          costs. 

          As proposed to be amended by the author, schools would only be  
          prohibited from using the most highly toxic pesticides once fee  
          revenues are available to reimburse their costs. The Department  
          is required to begin collecting the fee on January 1, 2012. The  
          Department shall borrow funds from an existing special fund  
          until fee revenues are collected.