Pesticide Mill Assessment SB 1750 (Maddy)

SUMMARY:

SB 1750, currently a spot bill, is the vehicle for resetting the mill assessment on pesticide sales and for establishing a process for systematic review and, if necessary, resetting of the assessment in the future.

BACKGROUND:

Since 1971, the pesticide regulatory program has been funded primarily by a mill assessment on the sale of pesticides.  Set initially at 8 mills, the assessment has incrementally increased until finally reaching 22 mills in 1992.  Counties receive a percentage of these funds for local enforcement of pesticide regulations.  The rest of the revenues go to support the state operations of the Department of Pesticide Regulation (DPR).

PROBLEM:

The statutory provisions authorizing the current pesticide mill assessment rate of 22 mills which supports the State's pesticide regulatory program, sunsets effective July 1, 1997.  Without subsequent legislative action, the mill assessment rate will revert to the prior rate of 9 mills which would result in a significant underfunding of the State's pesticide regulatory program.  Mill assessment revenue will be reduced by approximately 60 percent.

ANALYSIS:

Once appropriate program reforms are fully evaluated and identified, and potential cost savings, where applicable, have been calculated, SB 1750 will be amended with   specific language to:

1. Reset a lower maximum rate of collection in statute based on revised program needs.
2. Specify that the Director "shall" set, by regulation, the actual rate of collection at something less than the statutory cap if revenues and program funding needs merit such action. Current language is permissive.
3. Specify that the Director also set, by regulation, the actual percentage of mill assessment revenues that are dedicated for local assistance to ensure a constant level of support for county programs.
4. Provide that the initial assessment rate will be set lower than the maximum rate.  To ensure timeliness of adoption, such amendments will likely require temporary procedural exemption under the Administrative Procedures Act.
5. Create a Budget Advisory Committee (BAC) to convene every two years to review DPR revenues and expenditures, and recommend adjustments to the assessment rate.  The BAC would include representatives of the Legislature, pesticide registrants, pesticide users, the general public, county agricultural commissioners, the Department of Food and Agriculture, and other agencies.

CONTACT:

Steven Monk, Legislative Coordinator, Department of Pesticide Regulation, (916) 445-4000.