Bill Text: CA AB2239 | 2015-2016 | Regular Session | Amended


Bill Title: Pesticides: assessments on sales: home water treatment pesticide products.

Sponsorship: Partisan Bill (Republican 1)

Status: (Failed) 2016-11-30 - From committee without further action. [AB2239 Detail]

Download: California-2015-AB2239-Amended.html
BILL NUMBER: AB 2239	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 25, 2016
	AMENDED IN ASSEMBLY  MARCH 9, 2016

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 amended, Mathis. Pesticides: assessments on sales:
 combination  home water treatment pesticide
 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 $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.   provide that for certain home water treatment
pesticide products, the assessment shall be paid only on the value
of the active ingredient, as determined by the director upon
application of a registrant. 
   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.
   (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. 
   (2) For a home water treatment pesticide product that includes an
instrument or appliance used to deliver the pesticide, the assessment
shall be paid only on the value of the active ingredient, which
shall be determined by the director upon application of a registrant.
 
   (2) 
    (3)  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.
   (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)  In those cases where   If  the
registrant did not first sell the pesticide  into or within
  in  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
 prior to   before  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 
provision of  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   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. 
  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.
   (c) (1) 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.
   (2) An applicant for registration of a combination product may
contest the director's determination by appealing to the Secretary of
the California Environmental Protection Agency.
   (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) If the registrant did not first sell the pesticide in 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
before 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 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.
   (h) For purposes of this section, the following definitions apply:

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