Legislature(2005 - 2006)HOUSE FINANCE 519

03/17/2005 01:30 PM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Bills Previously Heard/Scheduled
= HB 108 WATER & SEWER UTILITIES OF POLIT. SUBDIV.
Moved CSHB 108(FIN) Out of Committee
= HB 19 PESTICIDE & BROADCAST CHEMICALS
Moved CSHB 19(FIN) Out of Committee
= HB 61 CHARITABLE GAMING; CALCUTTA POOLS
Moved CSHB 61(FIN) Out of Committee
= HB 88 OFFENSES BY MINORS/AGAINST TEACHERS
Heard & Held
HOUSE BILL NO. 19                                                                                                             
                                                                                                                                
     An Act relating to pesticides and broadcast chemicals;                                                                     
     and providing for an effective date.                                                                                       
                                                                                                                                
MICHAEL   PAWLOWSKI,   STAFF,  REPRESENTATIVE   KEVIN   MEYER,                                                                  
explained  that  Amendment  #3 resulted  from  a  conversation                                                                  
during the  last hearing on HB 19.   (Copy on File).   Part of                                                                  
the  discussion  revolved around  a  hornet's  nest under  the                                                                  
edge  or  eves of  a  bread  and  breakfast.   He  noted  that                                                                  
Amendment #3 address  where the health concerns  are that give                                                                  
rise to  the reason that  HB 19 is before  the Committee.   He                                                                  
requested  that the Department  of Environmental  Conservation                                                                  
discuss the health  concerns and definitions currently  before                                                                  
the Committee.                                                                                                                  
                                                                                                                                
2:01:21 PM                                                                                                                    
                                                                                                                                
KRISTIN  RYAN,  DIRECTOR, DIVISION  OF  ENVIRONMENTAL  HEALTH,                                                                  
DEPARTMENT  OF ENVIRONMENTAL  CONSERVATION,  pointed out  that                                                                  
where  the   Department  witnesses   the  most  concern   with                                                                  
pesticides  is  in long-term  exposure.    The areas  of  most                                                                  
concern  are  places  such as  apartments  while  spraying  is                                                                  
occurring  or in a  park where  grass is  being sprayed.   She                                                                  
stated that  public notice  makes the most  sense in  areas of                                                                  
significant exposure.                                                                                                           
                                                                                                                                
Mr.  Pawlowski  followed   up  that  the  idea  is  to  remove                                                                  
reference to the  business community but still  include parks,                                                                  
apartments and public sport fields.                                                                                             
                                                                                                                                
Co-Chair  Meyer passed  the gavel  to  Vice-Chair Stoltze  and                                                                  
requested that he Chair this portion of the meeting.                                                                            
                                                                                                                                
Co-Chair  Meyer  MOVED  to ADOPT  Amendment  #3.    Vice-Chair                                                                  
Stoltze OBJECTED for the purpose of discussion.                                                                                 
                                                                                                                                
Mr. Pawlowski clarified  that the definitions  were taken from                                                                  
the previous  sections,  B, C  & D.   He added  that they  had                                                                  
attempted to "tidy up" the definition.                                                                                          
                                                                                                                                
Vice-Chair  Stoltze  asked  if  those  impacts  were  for  the                                                                  
customers  but not necessarily  for the  employees.   He asked                                                                  
if  the  employees  were  assumed  to know  the  risks.    Mr.                                                                  
Pawlowski  said  that  was  correct  and would  then  move  to                                                                  
worker's compensation issues.                                                                                                   
                                                                                                                                
Representative   Holm  noted   support   for  the   amendment;                                                                  
however, did not know if he could support the bill.                                                                             
                                                                                                                                
Representative  Kelly interjected  that he was not  opposed to                                                                  
the bill.                                                                                                                       
                                                                                                                                
2:06:09 PM                                                                                                                    
                                                                                                                                
Representative   Kelly  discussed   that  the  Department   of                                                                  
Environmental Conservation  regulates and controls  restricted                                                                  
chemicals.   He  was concerned  that  the State  would not  be                                                                  
able to provide  the necessary oversight.  He  knew that it is                                                                  
against  the law  to hurt  neighbors.   He questioned  whether                                                                  
tying the costs of covering and exposure concerns was wise.                                                                     
                                                                                                                                
Co-Chair Meyer  responded that the  intent was to  address the                                                                  
public health issue.   Alaska is the only State  that does not                                                                  
require  the large chemical  companies  to pay a  registration                                                                  
fee.   He  believed  that  the chemical  companies  should  be                                                                  
asked to pay costs to run the program.                                                                                          
                                                                                                                                
2:09:07 PM                                                                                                                    
                                                                                                                                
Ms.  Ryan  explained   the  work  of  the  Department.     The                                                                  
Department  registers chemicals  that are  available for  sale                                                                  
in  Alaska.   The  Department is  already  inspecting  stores.                                                                  
Currently,  they  inspect  the  use  chemicals,  by  certified                                                                  
applicators.    The bill  requests  that  the public  must  be                                                                  
notified when some  of the restricted use chemicals  are being                                                                  
sprayed.  The bill  is being scaled back by the  amendment and                                                                  
only affects  areas  where long-term  or significant  exposure                                                                  
can occur.                                                                                                                      
                                                                                                                                
Ms. Ryan  thought that  the certified  applicator portion  was                                                                  
more  significant  than the  notification.   It  is  important                                                                  
that  the people  that  are applying  the chemicals  know  the                                                                  
basics  of  how to  do  it right  and  safely.   HB  19  would                                                                  
accomplish  that.   It  will make  manufacturers,  who  profit                                                                  
from the use of the chemicals, help pay for that use.                                                                           
                                                                                                                                
2:11:22 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stoltze WITHDREW  his OBJECTION  to Amendment  #3.                                                                  
There being NO further OBJECTION, Amendment #3 was adopted.                                                                     
                                                                                                                                
Representative  Holm asked  the definition  of pesticide.   He                                                                  
read  the definition  that it  was anything  that could  alter                                                                  
the  state of  a living  being whether  it  is plant,  fungus,                                                                  
animal or insect.                                                                                                               
                                                                                                                                
Representative  Holm warned the Department of  the "largeness"                                                                  
of the  proposed action.   Ms.  Ryan responded  that the  bill                                                                  
only impacts chemicals  that the State already  registers. The                                                                  
Federal  Insecticide  Act  is the  legislation  that  dictates                                                                  
what  pesticides  hinder growth.    The products  are  labeled                                                                  
regarding  their safe  use.  If  it is not  used according  to                                                                  
the label,  federal and state law  is violated.  She  admitted                                                                  
that language  is broad.   The chemicals  in Alaska amount  to                                                                  
over  5700  products.   The  Department  will  exempt  certain                                                                  
items from that fee.                                                                                                            
                                                                                                                                
2:14:16 PM                                                                                                                    
                                                                                                                                
She  acknowledged that  the broadcast  chemical  term is  also                                                                  
broad.   It is  defined in  Statute,  as chemical  substances,                                                                  
which  are  released  into air  for  purposes  of  preventing,                                                                  
retarding,  destroying or  stimulating plant  or animal  life.                                                                  
He  thought  that  HB  19  is  restricted   to  the  chemicals                                                                  
registered through the registration process already.                                                                            
                                                                                                                                
Representative   Holm  referenced  "stimulating"   growth  and                                                                  
asked  if fertilizer  would be  included.   He questioned  how                                                                  
that could  be monitored  in public areas.   He worried  about                                                                  
the "camel's nose  under the tent".  He emphasized  that there                                                                  
is  a   "huge"  oversight   of  already   federally   mandated                                                                  
programs.   Representative Holm thought  that there was  a lot                                                                  
of money  being spent  by the chemical  companies to  properly                                                                  
register  and  label  their  products.     The  Department  of                                                                  
Environmental Conservation  does not have the  personnel to go                                                                  
through  the  process  to  properly   educate  people  how  to                                                                  
duplicate  the federal process.   He  questioned the  need for                                                                  
the legislation.                                                                                                                
                                                                                                                                
2:16:44 PM                                                                                                                    
                                                                                                                                
Representative  Holm questioned  if the  public would  be well                                                                  
served by  undertaking the proposed  work.  He found  the bill                                                                  
to be potentially onerous.                                                                                                      
                                                                                                                                
Co-Chair   Meyer  pointed  out   that  Representative   Holm's                                                                  
insights  were expressed  in regards  to the  program that  is                                                                  
already in  statute.   HB 19 only  clarifies that the  program                                                                  
already  in  existence  will  now  be  paid  by  the  chemical                                                                  
companies  instead of the  general fund.   Getting rid  of the                                                                  
program could be addressed through the budgetary process.                                                                       
                                                                                                                                
2:19:03 PM                                                                                                                    
                                                                                                                                
Mr.  Pawlowski addressed  the  changes to  the revised  fiscal                                                                  
note.    He  noted   that  the  Department  of   Environmental                                                                  
Conservation thought  that the three positions  could be dealt                                                                  
with in the  normal budgetary process.   The note  was reduced                                                                  
in  the travel  line,  reduced  the  contractual line  by  $10                                                                  
thousand  dollars, reduced  supplies by  $1 thousand  dollars,                                                                  
reduced  equipment and  brought  the realized  revenue to  the                                                                  
general fund.   In year one, there  would be a $96.4  thousand                                                                  
general  fund  dollar  increase  which would  improve  by  $20                                                                  
thousand dollars.                                                                                                               
                                                                                                                                
2:20:38 PM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer noted that  it would  save approximately  $100                                                                  
thousand  dollars in year  one.  Mr.  Pawlowski added  that in                                                                  
year two, the State  would realize approximately  $18 thousand                                                                  
dollars  in subsequent  advantage.   The costs  of setting  up                                                                  
the program  billing  system would  be absorbed  in year  one.                                                                  
That  would  allow the  addition  of  the second  position  to                                                                  
allow  for the  regulation  and  enforcement of  the  program.                                                                  
The real  advantage  is that  the fees  could subsequently  be                                                                  
reduced.                                                                                                                        
                                                                                                                                
Vice-Chair  Stoltze mentioned  correspondence  his office  has                                                                  
received on  the issue.  He  asked if the Department's  larger                                                                  
concern was  collecting the  fees or the  public health.   Ms.                                                                  
Ryan  emphasized  that the  primary  focus is  public  health.                                                                  
Additionally, a  company that is benefiting from  the use of a                                                                  
product should  be paying  their share.   Knowing that  Alaska                                                                  
is the only  State that does not  do that, it is  a legitimate                                                                  
request to have the fees supports the program.                                                                                  
                                                                                                                                
Vice-Chair  Stoltze asked if the  Department would  be willing                                                                  
to  make due  with less  for  the publics  health.   Ms.  Ryan                                                                  
advised  that the Department  made a  compromise knowing  that                                                                  
the  amendment would  deal  directly with  a  decrease in  the                                                                  
workload.                                                                                                                       
                                                                                                                                
2:23:12 PM                                                                                                                    
                                                                                                                                
Representative  Holm  referenced  that the  current  pesticide                                                                  
definition  includes biological agents  such as ladybugs.   He                                                                  
distributed  a list  of biological  agents.   (Copy on  File).                                                                  
He reiterated that the legislation would be a huge step.                                                                        
                                                                                                                                
2:24:57 PM                                                                                                                    
                                                                                                                                
Representative   Kelly  understood  that  the   Department  is                                                                  
currently  doing the  work and  asked what  would be  changed.                                                                  
Ms. Ryan  responded that  there would  need to be  regulations                                                                  
                                                            st                                                                  
written to  address general  fund money  going away,  July 1.                                                                   
There will  need to  be fees  to replace  that to sustain  the                                                                  
work.  Writing regulations is a significant amount of work.                                                                     
                                                                                                                                
Co-Chair Meyer  interjected that the bill will  require that a                                                                  
notice  be  distributed  regarding   what  pesticide  will  be                                                                  
sprayed  in certain  public  areas.   It  is a  right to  know                                                                  
bill.     Ms.  Ryan  added  that   there  would  be   two  new                                                                  
requirements:                                                                                                                   
                                                                                                                                
   ·    They will have to use a certified applicator to                                                                         
        apply pesticides in a park or apartment building;                                                                       
        and                                                                                                                     
   ·    Those certified applicators would have to post a                                                                        
        sign so that people are aware that spraying has                                                                         
        occurred in the area.                                                                                                   
                                                                                                                                
2:27:53 PM                                                                                                                    
                                                                                                                                
Representative  Foster MOVED to report  CS HB 19 (FIN)  out of                                                                  
Committee  with   individual  recommendations   and  with  the                                                                  
accompanying  new fiscal note.   There being NO OBJECTION,  it                                                                  
was so ordered.                                                                                                                 
                                                                                                                                
CS  HB 19  (FIN) was  reported  out of  Committee  with a  "no                                                                  
recommendation"  and with a new fiscal note by  the Department                                                                  
of Environmental Conservation.                                                                                                  
                                                                                                                                
                                                                                                                                
AT EASE:        2:28:38 PM                                                                                                      
RECONVENE:      2:30:33 PM                                                                                                    
                                                                                                                                

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