Legislature(2005 - 2006)HOUSE FINANCE 519

03/15/2005 01:30 PM House FINANCE


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HB 19 PESTICIDE & BROADCAST CHEMICALS
Heard & Held
HB 107 ATTY FEES: HUNTING/FISHING INTERFERENCE
Moved CSHB 107(FIN) Out of Committee
Bills Previously Heard/Scheduled
= HB 155 USE CRIMINAL FINES FOR YOUTH COURTS
Moved CSHB 155(JUD) Out of Committee
= SB 98 FAST TRACK SUPPLEMENTAL APPROPS/CBRF
Moved HCS CSSB 98(FIN) Out of Committee
= HB 66 APPROP: MENTAL HEALTH BUDGET
Heard & Held
= HB 67 APPROP: OPERATING BUDGET/LOANS/FUNDS/CBR
Heard & Held
HOUSE BILL NO. 19                                                                                                             
                                                                                                                                
     An Act relating to pesticides and broadcast chemicals;                                                                     
     and providing for an effective date.                                                                                       
                                                                                                                                
MIKE PAWLOWSKI, STAFF, REPRESENTATIVE  KEVIN MEYER, explained                                                                   
that there  are three  parts to the  legislation and  that he                                                                   
would address each separately.                                                                                                  
                                                                                                                                
The first four  sections provide Department  of Environmental                                                                   
Conservation authority  to charge a fee to  manufacturers who                                                                   
register  pesticides  and  broadcast chemicals  for  sale  or                                                                   
distribution in the State.  He  added that every state in the                                                                   
nation  requires   chemical  companies   to  register   their                                                                   
chemicals with  the appropriate state agency  and that Alaska                                                                   
is the only state that does not charge a registration fee.                                                                      
                                                                                                                                
Mr.  Pawlowski  noted  that  HB  19  would  not  establish  a                                                                   
specific fee  in statute,  but rather sets  a ceiling  on the                                                                   
fee  that the  Department could  charge a  manufacturer.   By                                                                   
putting  the   fee  in  regulation   with  a   limit,  allows                                                                   
flexibility to  the Department to ensure that  chemicals that                                                                   
do not have a  large enough market in Alaska  to support that                                                                   
annual fee, not to bear it.                                                                                                     
                                                                                                                                
Mr.  Pawlowski  pointed out  that  Section 6  contains  other                                                                   
important provisions.                                                                                                           
                                                                                                                                
   ·    The first portion of Section 6 (Lines 29 through 31)                                                                    
        requires a  person applying  pesticides or  broadcast                                                                   
        chemicals  in   a  public  place,   be  licensed   or                                                                   
        authorized by the Department.                                                                                           
   ·    Classes and training required for certification are                                                                     
        free, but the legislation  provides a charged  fee of                                                                   
        up to $25  for the license.   Fees collected  through                                                                   
        registration   and  licensing   would   support   the                                                                   
        regulations and enforcement of the  State's pesticide                                                                   
        and  broadcast  chemicals.    At  present  time,  the                                                                   
        programs are supported largely with general funds.                                                                      
   ·    The final provision in legislation is also found in                                                                     
        Section 6,  Line 31,  Page 3.   That section  directs                                                                   
        the Department  to  promulgate  a  reasonable  public                                                                   
        notice  requirement  that  includes   written  notice                                                                   
        posted on the application site as  to when pesticides                                                                   
        are applied  in  a public  place.   He  noted that  a                                                                   
        large portion  of  the public  is  interested in  the                                                                   
        chemicals that  they are exposed  to.  Public  notice                                                                   
        gives the  public an  opportunity  to make  decisions                                                                   
        for themselves about what they expose themselves to.                                                                    
                                                                                                                                
Mr.  Pawlowski  summarized  that   the  essential  underlying                                                                   
purpose of HB 19 is to create  a pesticide program in Alaska,                                                                   
which the public can have confidence  in and supported by the                                                                   
sector being regulated.                                                                                                         
                                                                                                                                
2:39:01 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  advised that  Alaska is  the only state  that                                                                   
does not have a  registration fee to cover those  costs.  Mr.                                                                   
Pawlowski acknowledged  that was correct.  No  fee is charged                                                                   
for the  chemical registration and  that the costs  were bore                                                                   
by the General Fund.                                                                                                            
                                                                                                                                
Mr.   Pawlowski  asked   the   Department  of   Environmental                                                                   
Conservation to address  the fiscal note.  He  noted that the                                                                   
fee is based  largely on an assumption of how  many chemicals                                                                   
would be registered in the State.                                                                                               
                                                                                                                                
Representative Weyhrauch  asked the definition  of "broadcast                                                                   
chemical".   Mr. Pawlowski stated  that it is defined  as any                                                                   
chemical under  a certain  class that  is broadcast  into the                                                                   
air.   It can  include chemicals  that are  used to  suppress                                                                   
fires and/or oil spills.  The definition is large.                                                                              
                                                                                                                                
Representative  Weyrauch  inquired   if  roadside  herbicides                                                                   
would be  included.   Mr. Pawlowski replied  they would.   In                                                                   
response  to further  questions  by Representative  Weyrauch,                                                                   
Mr.  Pawlowski explained  that  herbicides would  have to  be                                                                   
applied in a  public place.  He referenced  the definition of                                                                   
public place, Section 6, Page 4, Lines 3-8.                                                                                     
                                                                                                                                
Representative Weyrauch  asked about applications  to bed and                                                                   
breakfasts;  discussion  followed.    He  asked  why  hotels,                                                                   
motels  and restaurants  would  be excluded.   Mr.  Pawlowski                                                                   
pointed  out   that  grouping  is  covered  largely   by  the                                                                   
Department of Environmental Conservation's food code.                                                                           
                                                                                                                                
2:42:38 PM                                                                                                                    
                                                                                                                                
KRISTIN  RYAN, DIRECTOR,  DIVISION  OF ENVIRONMENTAL  HEALTH,                                                                   
DEPARTMENT   OF   ENVIRONMENTAL    CONSERVATION,   ANCHORAGE,                                                                   
responded  to concerns  voiced  by Representative  Weyhrauch.                                                                   
She advised  that setting  the fee rate  in statute  could be                                                                   
problematic  and that  the proposed fee  would be  sufficient                                                                   
based on current costs.                                                                                                         
                                                                                                                                
Representative  Weyhrauch   inquired  why  those   fees  were                                                                   
chosen.    Ms.  Ryan  responded   that  when  the  Department                                                                   
determined what  it would take  to do the work,  assuming 40%                                                                   
decide not  to register,  the Division  would need  to charge                                                                   
about  $105  dollars  per product  to  generate  the  revenue                                                                   
needed.   The  $120  dollar number  would  provide leeway  to                                                                   
change.                                                                                                                         
                                                                                                                                
Representative  Weyhrauch  believed  that  the  base  of  the                                                                   
fiscal note was $125 dollars.                                                                                                   
                                                                                                                                
2:46:10 PM                                                                                                                    
                                                                                                                                
Representative Weyhrauch  asked at what point  does the State                                                                   
make money.   Ms. Ryan explained  that the fiscal  note would                                                                   
have the  general fund contribution  eliminated by FY08.   At                                                                   
that time, the State would no  longer be paying $119 thousand                                                                   
dollars   to   support  the   program.     In   response   to                                                                   
Representative Weyrauch,  Ms. Ryan indicated that  the entire                                                                   
cost of  the program  would be  $384 thousand  dollars.   The                                                                   
costs bore  by fees would be  $382 thousand dollars  and with                                                                   
the reductions  would  equal the $119  thousand general  fund                                                                   
dollars currently in the program.                                                                                               
                                                                                                                                
Vice-Chair Stoltze inquired which  industries, professions or                                                                   
"quasi-State"  agencies would  be  impacted the  most by  the                                                                   
legislation.  Ms. Ryan noted that  the fee would be generated                                                                   
by  outside chemical  manufacturers.   She  added that  other                                                                   
impacted  would  be the  outside  user.   She  related  which                                                                   
businesses  would be  exempt and  regulated  by other  means.                                                                   
There would no significant changes for farmers.                                                                                 
                                                                                                                                
2:50:09 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  referenced the  query made by  Representative                                                                   
Weyhrauch regarding bed and breakfasts.   Ms. Ryan offered to                                                                   
check with the  Department's attorney regarding  inclusion of                                                                   
that group.                                                                                                                     
                                                                                                                                
Co-Chair Meyer  asked if  bars would be  included.   Ms. Ryan                                                                   
said that bars would be considered  a private area frequented                                                                   
by the  public and would be  included.  Co-Chair  Meyer asked                                                                   
how  they  would  be  notified.     Ms.  Ryan  discussed  the                                                                   
regulations  and  how  the public  process  and  notification                                                                   
process would be handled with signage posted, etc.                                                                              
                                                                                                                                
Co-Chair Meyer questioned a person's  right-of-way portion of                                                                   
their yard.  Ms. Ryan responded  that technically, it belongs                                                                   
to the municipality.  She did not know.                                                                                         
                                                                                                                                
Representative  Kelly   inquired  if  "the   legislation  was                                                                   
attempting  to  tax  and  regulate".    He  thought  that  an                                                                   
attrition rate could  happen and if that would be  okay.  Ms.                                                                   
Ryan acknowledged  that there is public concern  and that the                                                                   
attrition  rate is  something  not intended.   She  explained                                                                   
that there is a waiver process for new chemicals.                                                                               
                                                                                                                                
2:55:19 PM                                                                                                                    
                                                                                                                                
Representative Kelly  asked if any other states  had found an                                                                   
effective  way  to  deal  with  the  issues  referred  to  by                                                                   
Representative  Weyhrauch.   Ms. Ryan  stated that Alaska  is                                                                   
not using  any other state  as a model as  they tend to  be a                                                                   
bit more extreme  than Alaska, however, by  exempting hotels,                                                                   
motels and restaurants, the Department  thought that they had                                                                   
eliminated  low exposure areas.   The  intent was to  address                                                                   
multi-family dwellings.                                                                                                         
                                                                                                                                
Representative  Kelly commented  that unintentional  problems                                                                   
were  being  created  and  the   costs  associated  with  the                                                                   
legislation appear high.  Ms.  Ryan noted that the Department                                                                   
is very cautious  about growth and that since  1992, only one                                                                   
position has been added to the Department.                                                                                      
                                                                                                                                
2:58:56 PM                                                                                                                    
                                                                                                                                
Mr. Pawlowski  responded to concerns of  Representative Kelly                                                                   
in dealing with  the certificated applicators  and charging a                                                                   
fee.  He noted discussion with  the certified applicators and                                                                   
the agreement that  resulted.  Health concerns  are out there                                                                   
and the  right to  know is  important.   He addressed  fiscal                                                                   
concerns and  the level of service  needed.  The  language on                                                                   
Page 2, Section  3(a), addresses what can be  charged and how                                                                   
the Department can use those funds.                                                                                             
                                                                                                                                
Representative Hawker  added to the discussion,  asking if HB
19  was  a  public interest  bill  or  a  revenue  generating                                                                   
measure.    He  asked  if  the  sponsor  had  considered  the                                                                   
"elasticity in the market", which  could result in a dramatic                                                                   
loss of  revenue.  Ms. Ryan  acknowledged that there  is some                                                                   
truth in that possibility, noting  that some companies do not                                                                   
want  to  register in  Alaska.    She  pointed out  that  the                                                                   
Department  is committed  to establishing  a waiver  process.                                                                   
It is important  that research is not restricted  nor hinders                                                                   
the use  of new products.   Some new  products are  safer and                                                                   
better   for   the  environment.      Representative   Hawker                                                                   
acknowledged  that  he does  not  know  the answer  to  these                                                                   
questions  and recommended  adding language  to address  such                                                                   
concerns.                                                                                                                       
                                                                                                                                
Representative  Hawker referred  to the  fiscal note  and the                                                                   
addition of new personnel.  He  asked if the new third person                                                                   
could be a position  not budgeted at present  time but funded                                                                   
later as the program develops and the needs the increase.                                                                       
                                                                                                                                
3:05:40 PM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer supported  the idea.   Representative  Hawker                                                                   
recommended  that the  Committee eliminate  the third  person                                                                   
from the Department's fiscal note.                                                                                              
                                                                                                                                
3:06:55 PM                                                                                                                    
                                                                                                                                
DR.  ARNDT   VON  HIPPEL,  (TESTIFIED  VIA   TELECONFERENCE),                                                                   
RETIRED  HEART SURGEON,  ANCHORAGE,  voiced  support for  the                                                                   
bill and  spoke to  public health  issues that it  addresses.                                                                   
He provided a personal situation  in which a neighbor sprayed                                                                   
aphids,  which  nearly  cost  Dr.  Von  Hippel's  life.    He                                                                   
reiterated strong support for the legislation.                                                                                  
                                                                                                                                
Dr.  Van Hippel  advised  that  outdoor spray  of  pesticides                                                                   
violates label  warnings.  He  believed that those  who spray                                                                   
pesticides for  non-agricultural purposes should  loose their                                                                   
licenses.  He urged every victim sue.                                                                                           
                                                                                                                                
Dr. Van  Hippel stressed that  he does not want  notification                                                                   
that  he  must  seal  or  leave  his  home  while  a  sprayer                                                                   
contaminates  everything.   He pointed  out that  there is  a                                                                   
constitutional  right  to  privacy.   Tons  of  poisons  have                                                                   
already been sprayed  in Alaska with no effect  on the spruce                                                                   
beetle  problem.   Dr. Van  Hippel encouraged  that soap  and                                                                   
water work  well on most concerns  and questioned any  use of                                                                   
pesticides.  It  is not known how long the chemicals  last in                                                                   
the environment.                                                                                                                
                                                                                                                                
3:10:59 PM                                                                                                                    
                                                                                                                                
KEN PERRY,  (TESTIFIED VIA TELECONFERENCE),  GENERAL MANAGER,                                                                   
PEST  CONTROL  OPERATORS, ANCHORAGE,  testified  against  the                                                                   
legislation and urged  that the Committee not  pass the bill,                                                                   
by falling victim  to the environmental  extremists promoting                                                                   
it.   He stated that  the proposed  charge would  be punitive                                                                   
and dedicated  to anti-pesticide regulation.   He warned that                                                                   
an attempt  to make law in  an area already  closely governed                                                                   
by the  federal government is  dangerous.  Mr.  Perry pointed                                                                   
out that concerns  of exposure are addressed  on every label.                                                                   
He reiterated his opposition to the legislation.                                                                                
                                                                                                                                
3:15:15 PM                                                                                                                    
                                                                                                                                
EMILY   NENON,   (TESTIFIED   VIA   TELECONFERENCE),   ALASKA                                                                   
GOVERNMENT  RELATIONS  DIRECTOR,   AMERICAN  CANCER  SOCIETY,                                                                   
ANCHORAGE,  pointed out  that  the legislation  addresses  an                                                                   
Alaskan health  issue.   She commented  on what other  states                                                                   
have  done  regarding   the  issue.    She   added  that  the                                                                   
education,  information and  public  notice process  required                                                                   
would be  a good step to  providing reasonable  public notice                                                                   
and that  the language in  the committee substitute  was well                                                                   
in line with that of other states.                                                                                              
                                                                                                                                
3:16:59 PM                                                                                                                    
                                                                                                                                
PAM  MILLER,   (TESTIFIED  VIA  TELECONFERENCE),   BIOLOGIST,                                                                   
EXECUTIVE  DIRECTOR,  ALASKA   COMMUNITY  ACTION  ON  TOXICS,                                                                   
ANCHORAGE,  stated that  Alaska  Community  Action on  Toxics                                                                   
(ACAT) strongly supports HB 19.   Enactment of the bill would                                                                   
be an important first step in  assuring the public's right to                                                                   
know  about   pesticide  applications.     Children,  elderly                                                                   
people,  and those  with chronic  illnesses are  particularly                                                                   
susceptible   to  adverse  health   effects  from   pesticide                                                                   
exposure.                                                                                                                       
                                                                                                                                
Ms.  Miller   continued,  pesticide  use  occurs   in  places                                                                   
frequented in  our daily lives,  such as parks,  public lands                                                                   
and buildings  and grounds, transportation and  utility right                                                                   
of way,  schools, etc.   Although there  are more  than 5,700                                                                   
pesticides registered in Alaska,  there is no reliable system                                                                   
to track the amounts and locations they are used.                                                                               
                                                                                                                                
Ms. Miller  noted that  ACAT has  done extensive research  on                                                                   
the  health   effects  of   pesticides  using   peer-reviewed                                                                   
scientific  and  medical literature.    Support  of the  bill                                                                   
stems  from research  and  experience  and working  with  the                                                                   
Anchorage School District (ASD).                                                                                                
                                                                                                                                
Ms. Miller  advised that Alaska  is the only state  that does                                                                   
not require a  fee for pesticide registration.   She stressed                                                                   
that   the  provisions   of  the   bill   require  a   modest                                                                   
registration fee.                                                                                                               
                                                                                                                                
Ms. Miller summarized what HB 19 would accomplish:                                                                              
                                                                                                                                
   ·    Protects public health, especially for children and                                                                     
        those more vulnerable to the harmful effects of                                                                         
        pesticides;                                                                                                             
  ·    Promotes good decisions about pest management; and                                                                       
   ·    Enhances community right to know and transparency                                                                       
        about pesticide use.                                                                                                    
                                                                                                                                
3:22:28 PM                                                                                                                    
                                                                                                                                
KATIE   ASPEN  GAVENUS,   (TESTIFIED   VIA   TELECONFERENCE),                                                                   
STUDENT, HOMER,  noted that  she was a  senior at  Homer High                                                                   
School.   She testified in support  of the legislation.   She                                                                   
thought  that  teenagers  were   particularly  vulnerable  to                                                                   
pesticides,  as  they  can  disrupt  hormone  balance.    She                                                                   
reiterated her strong support for HB 19.                                                                                        
                                                                                                                                
DYLAN   WEISER,   (TESTIFIED    VIA   TELECONFERENCE),   VICE                                                                   
PRESIDENT,  KACHEMAK BAY CONSERVATION  SOCIETY, HOMER,  spoke                                                                   
in support  for the legislation  and strongly  urged passage,                                                                   
noting  that   pesticides  are  highly  toxic   to  fish  and                                                                   
wildlife.                                                                                                                       
                                                                                                                                
3:23:49 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  MOVED to ADOPT Amendment  #1, #24-LS0149\I.1,                                                                   
Bullock,  3/14/05.  (Copy  on File).   Representative  Hawker                                                                   
OBJECTED.                                                                                                                       
                                                                                                                                
Mr. Pawlowski  explained  that Amendment  #1 was intended  to                                                                   
define  reasonable  fee  in Sections  8-10.    The  amendment                                                                   
addresses  concerns  resulting   from  discussions  with  the                                                                   
agricultural   community  regarding   public  notice.     The                                                                   
Department  has indicated  that they  do not  intent to  take                                                                   
chemicals "off  the table" but  rather cover the cost  of the                                                                   
program and not getting in the way of State commerce.                                                                           
                                                                                                                                
Representative  Hawker WITHDREW his  OBJECTION.   There being                                                                   
NO further OBJECTION, Amendment #1 was adopted.                                                                                 
                                                                                                                                
Co-Chair Meyer  MOVED to  ADOPT Amendment #2,  #24-LS019\I.2,                                                                   
Bullock,  3/14/05.  (Copy  on File).   Representative  Hawker                                                                   
OBJECTED for purpose of discussion.                                                                                             
                                                                                                                                
Mr.  Pawlowski  commented  that Amendment  #2  clarifies  the                                                                   
definition of a multi-family dwelling.                                                                                          
                                                                                                                                
3:26:42 PM                                                                                                                    
                                                                                                                                
Mr. Pawlowski  said the intent  is to move more  toward broad                                                                   
public   places  and   that  the   amendment  clarifies   the                                                                   
description  of common  areas  such as  public places  around                                                                   
apartment buildings.                                                                                                            
                                                                                                                                
Representative  Hawker WITHDREW  his  OBJECTION to  Amendment                                                                   
#2.   There  being  NO further  OBJECTION,  Amendment #2  was                                                                   
adopted.                                                                                                                        
                                                                                                                                
3:27:44 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  commented on the  importance of the  bill and                                                                   
noted that it would be held for  further consideration of the                                                                   
fiscal  impact.   He  thought  that  those that  profit  from                                                                   
chemicals sold  statewide should  pay.  Co-Chair  Meyer added                                                                   
that there  are public  health concerns  and that the  public                                                                   
has the right to know what chemicals  are being used and sold                                                                   
statewide.   He  pointed  out that  many  people have  severe                                                                   
allergies to these chemicals.                                                                                                   
                                                                                                                                
Ms.  Ryan explained  that the  pesticide program  is a  four-                                                                   
person program,  which has  many statewide  responsibilities.                                                                   
Pesticides are  currently permitted for air,  water and land.                                                                   
The process  is extensive and that  it is not a  light matter                                                                   
regulating pesticide  use.  The last issued  permit took over                                                                   
a year to conduct.  Given the  additional requirements of the                                                                   
bill, the  Division believes that  three additional  staff is                                                                   
necessary to do  that work.  Ms. Ryan stressed  that the bill                                                                   
is  positive  for  funding  aspects   as  well  as  being  an                                                                   
important public health bill.                                                                                                   
                                                                                                                                
Co-Chair Meyer asked  if there was a specialty  chemical used                                                                   
for agriculture, would  the fee vary.  Ms.  Ryan advised that                                                                   
the fee could be  waived for chemicals not used  that much or                                                                   
that  are  new  to  the  State   and  that  have  never  been                                                                   
distributed.   She  added  that if  a  large percentage  were                                                                   
paying the fee, the fee could fluctuate.                                                                                        
                                                                                                                                
Vice-Chair  Stoltze stated that  the bill  would be  held for                                                                   
further consideration of the fiscal note.                                                                                       
                                                                                                                                
HB 19 was HELD in Committee for further consideration.                                                                          

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