BILL NUMBER: SB 605	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 26, 2001

INTRODUCED BY   Senator Costa

                        FEBRUARY 22, 2001

   An act to amend Section 12841 of the Food and Agricultural Code,
relating to pesticides.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 605, as amended, Costa.  Pesticides.
   Under existing law, the Department of Food and Agriculture
assesses sellers of registered pesticides based on a uniform rate per
dollar volume of sales.  This assessment provides revenues for
administration and enforcement of pesticide laws.  The Secretary of
Food and Agriculture may reduce the uniform rate if adequate revenues
to perform these functions will still exist.  Under existing law,
effective January 1, 2003, and thereafter, every registrant of a
pesticide product must pay the Director of Pesticide Regulation an
assessment of 9 mills per dollar of sales for all sales by that
person of registered pesticides for use in the state.
   This bill would specify that sales made electronically,
telephonically, or by other means that result in a pesticide being
used or shipped in the state are sales.  This bill would change the
assessment schedule so that effective January 1,  2006
  2003  , the assessment will be 12 mills per
dollar of sales.
   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 any 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 the pesticide
product being shipped to or used in the 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 any 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
  this type of  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 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 the registrant did not first sell the
pesticide into or within 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) No person is 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 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) Except as provided in paragraph (2), 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) Effective January 1,  2006   2003  ,
and thereafter, the rate shall be 12 mills ($0.012).
   (2) In order to avoid the accumulation of unneeded revenues, the
director shall, by the  adoption of an emergency regulation pursuant
to subdivision (h), set the mill assessment rate lower than the rate
established in subparagraphs (A) and (B) of paragraph (1) if the
director determines that program needs are adequately met and that
revenues collected would result in a prudent reserve in the
Department of Pesticide Regulation Fund by the end of any fiscal year
greater than two million five hundred thousand dollars ($2,500,000).
  In no case shall the lower mill rate result in revenues that are
less than the revenues that the rate established in subparagraphs (A)
and (B) of paragraph (1) would generate if each mill was valued at
one million four hundred eighty-two thousand dollars ($1,482,000).
   (g) The revenue collected from the mill assessment shall be
deposited in the Department of Pesticide Regulation Fund, except as
specified in Section 12841.1, 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) Beginning April 1, 1998, and thereafter, 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.
   (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) Any change to the mill assessment rate established pursuant to
subparagraphs (A) and (B) of paragraph (1) of subdivision (f) shall
be made by the adoption of an emergency regulation and shall be
determined by the Office of Administrative Law as necessary for the
immediate preservation of the public peace, health, safety, and
general welfare.  Thereafter, the regulations shall be adopted
pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code and shall remain in
effect for no more than four consecutive quarters.  The director
shall make available to the public, at least 60 days prior to the
adoption of an emergency regulation establishing a new rate, the
information upon which the director has calculated the new rate.