LegAlert #97-3

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Senate to Vote on Pesticide Mill Tax Reduction
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Despite substantial evidence which demonstrates the harmful effects
of pesticides on public health and the environment, pesticide use
continues to rise in California. State programs to evaluate the
health effects of pesticide use, conduct monitoring of pesticides,
and other crucial programs are currently funded through the mill
tax, a surcharge on pesticide sales, which is up for reauthorization
this year.

SB 1161 (Costa) would authorize the continuation of the mill tax,
but at a reduced, "floating" rate and with a sunset in 2003. To
accomodate this loss in revenue, the bill would authorize the
Department of Pesticide Regulations (DPR) to borrow from the
General Fund to meet the department's cash flow needs. If passed,
SB 1161 would decrease and destabilize DPR's funding, and
therefore make it impossible for the department to improve its
deficient programs.

It is clear that DPR needs more funds than provided in SB 1161.
DPR has systematically failed to carry out key programs enacted
by the Legislature to protect human health and the environment:

- Birth Defect Prevention Act. More than 50 high priority risk
assessments remain incomplete, including some over ten years
old.
- Toxic Air Contaminant Act. Since the law's enactment in 1984,
DPR has identified only one pesticide as a Toxic Air
Contaminant. Of the ten pesticides ranked by DPR as most
likely Toxic Air Contaminants, only three have been monitored.
- Pesticide Groundwater Contamination Prevention Act. DPR
has failed to ban the use of any pesticides found in groundwater
due to agricultural use. It has also steadily reduced
groundwater monitoring and failed to follow up on substantial
new findings of contamination.

Considering these failures, the mill tax ought to be increased so that
DPR can expand and improve its programs. Instead, SB 1161
would reduce and sunset the major funding source for the
implementation of the above laws. At the same time, it would give
a huge rebate to the pesticide industry, paid for by the taxpayers
through the General Fund.

Though the DPR's record has been disappointing, it is necessary
that its funding base be maintained so that it can carry out its
pesticide use reporting and health risk assessment activities. SB
1161 is an attempt by the pesticide industry to cut its taxes, raid the
existing regulatory fund, and starve the regulatory program.

Act now to maintain the mill tax at current levels!

Status: SB 1161 passed unanimously through the Senate
Agriculture and Water Resources Committee (which Costa chairs),
and most recently passed on a 7-3 vote through Senate
Appropriations. It will go next to the Senate floor, possibly as soon
as next week. Meanwhile, AB 891 (Keeley), which would continue
indefinitely the mill tax at its current level, did not pass through its
policy committee and has been made a two-year bill.

Action Needed: Contact your State Senators and urge them to
oppose SB 1161 (Costa) on the Senate floor. Tell them that you
will oppose any effort to reduce or redirect funding from programs
that protect the public from hazardous pesticides. Ask them to
support a mill tax extension at a level at least as high as the current
level, in order to fund activities that encourage and enable
institutional pesticide use reduction.

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