SB494 HFLR Page 1 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 HOUSE OF REPRESENTATIVES - FLOOR VERSION STATE OF OKLAHOMA 1st Session of the 59th Legislature (2023) ENGROSSED SENATE BILL NO. 494 By: Howard and Bullard of the Senate and Pfeiffer of the House An Act relating to damages; amending 2 O.S. 2 021, Section 3-82, which relates to the C ombined Pesticide Law; updating reference to certai n entity; specifying categories of growing crops or plants eli gible for award of damages for certain viola tions; establishing requirements for calculation of certai n actual damages; limiting certain damage awards; providing for codification; and declaring an emergency. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 2 O.S. 2021, Section 3 -82, is amended to read as follows: Section 3-82. A. LICENSE REQUIRED - 1. It shall be unlawful for any person to act, operate, or do business or advertise as a commercial, noncommercial, certified applicator, temporary certified applicator, service technician, or priva te applicator unless the person has obtained a valid applicator’s license issued by the S tate Board of Agriculture for the category of pestic ide application in which the person is engaged. SB494 HFLR Page 2 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2. A license may be issued by the Board in any category of pesticide application if the applicant qualif ies and the applicant is limited to the category of pesticide application named on the license. The Board may establish categories of pesticide application as necessary . Licenses shall be issued upon application to the Board on a form prescribed by the B oard. The application shall contain information re garding the applicant’s qualifications, proposed operations, and other information as specified by the Board. 3. a. An aerial license shall not be issued or be valid unless the applicant files with the Boa rd a copy of a valid document issued by the Federal Aviation Administration showing that the person is qualified to operate or supervise the operation of an aircraft conducting agricultural operations . Applicants for an aerial license and pilots working u nder a license may be subject to a complete and tho rough background examination. b. The Board shall promulgate rules regarding aerial applicators and applications consistent with federal law and shall solicit the assis tance of the Federal Aviation Agency Administration in the enforcement of this subsection. SB494 HFLR Page 3 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 4. Each business location shall require a separat e license and separate certified applicator except that a certified applicator for a noncommercial business locatio n may also serve as the certified applicator for one commercial business location. 5. A license shall not be issued for the category of pest icide application of any applicant or representative who has a temporary certification. B. CERTIFICATION REQUIRED - 1. A license shall be issued only after satisfactory comple tion of the certification standards by the person who shall be the certified ap plicator under the license. Temporary certified applicators do not qualify as the certified applicator for a licen se, nor may they act as a certified applicator. The Board shall deny the application for certification, recertification, issuance, or renewa l of a certificate or license for a failure to show proper qualification under the rules or for violations of any provisions of this section. A certificate in any category shall be valid for five (5) years unless suspended, canceled, or revoked by the Boa rd or until recertification is required for the category, and may be renewed after successful completion of recerti fication requirements. The Board may require certified applicators to be recertified once in a five-year period. 2. A certified service tec hnician identification shall be issued upon application and completion of certification standards determined by the Board. Temporary certified applicato rs may SB494 HFLR Page 4 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 qualify as a certified service technician. No person shall act, do business as, or advertise as a service technician unless the person has met all the qualifications and standards as required by the Board. The service technicians’ identification shall be issued in the name of the licensed entity. The licensee shall ensure that the service technician identification is returned to the Board upon termination of the employee . A service technician identification shall be valid for a period of five (5) years unless suspended , canceled, or revoked by the Board, until recertification is required by the Board, or until the service technician leaves the employ of the licensed entity. The Oklahoma Department of Agricult ure, Food, and Forestry may issue a se rvice technician identi fication upon completion of the following: a. a determination is made by the Dep artment that the applicant has successfully completed the written examination, b. the licensed entity provides a co mpleted service technician identificat ion application form at the time of testing, and c. all appropriate fees are paid at the time of testin g. 3. Each license, except for private applicators, shall expire on dates established by the Department in adminis trative rules and may be renewed for t he ensuing calendar year, without penalty or reexamination, if a properly completed application is file d with the SB494 HFLR Page 5 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Board on a date established by the Department . If the application is not received by the due date, a penalty of twice the amount of the renewal fee shall be charged for renewal of the license. If the application is not received within thirty (30) days following the due date, an additional one-hundred-dollar penalty shall be paid prior to license renewal. All private applicator licenses are in effect for five (5) years and may be renewed by application after completion of a continuing education program or written exam approved by the Board. C. The following fees shall be paid to the Board: 1. A fee of One Hundred Dollars ($100.00) for each cat egory of pesticide application shall be paid to the Board for the issuance or renewal of a commercial a pplicator business license. Not more than Five Hundred Dollars ($500.00) total category fees shall be charged annually to any business location of an ap plicator; 2. A fee of Fifty Dollars ($50.00) shall be paid to the Board for each written examination c onducted by the Board; 3. A fee of Fifty Dollars ($50.00) shall be paid to the Board for each practical examinatio n conducted by the Board; 4. A fee of Twenty Dollars ($20.00) shall be paid to the Board for the issuance or renewal of a private applicator ’s license; 5. A fee of Fifty Dollars ($50.00) shall be paid to the Board for the issuance or renewal of a noncomm ercial business license. Not more than Two Hundred Fifty Dollars ($250.00) total category SB494 HFLR Page 6 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 fees shall be charged annually to any noncommercia l business location of an applicator; 6. A fee of Twenty Dollars ($20.00) shall be paid to the Board for the issuance or renewal of service technician i dentification; 7. A fee of Ten Dollars ($10.00) shall be paid to the Board for the issuance of duplica te licenses or certificates or transfer of service technician identification; 8. A fee of Fifty Dollars ($50.00) s hall be paid to the Board for each recertification procedure; and 9. A fee of One Hundred Dollars ($100.00) shall be paid to the Board for each reciprocal certification procedure for applicator certifications. D. All fees shall be deposited in the State Department of Agriculture Revolving Fu nd. E. Fees shall be paid to the Board prior to the processing of any application. F. Failure to pay any fee identified with licenses, permits, pesticide registrations, or certification shall require the Board to deny the application. G. INSURANCE REQUIRED - 1. The Board shall not issue a commercial applicator’s license until the applicant has furnished evidence of an insurance policy or certificate by an insurer or broker authorized to do business in this state ins uring the commercial applicator and an y agents against liability res ulting SB494 HFLR Page 7 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 from the operations of the commercial applicator. The insurance shall not be applied to damage or injury to agricultural crops, plants, or land being worked upon by the commercial applicator. 2. The amount of liabilit y shall not be less than that set by the Board for each property damage arising out of actual use of an y pesticide. The liability shall be maintained at not less than that sum at all times during the licensing period . The Board shall be notified fifteen (15) days prior to any reducti on in liability. 3. If the furnished liability becomes unsatisfactory, t he applicant shall immediately execute new liability upon notice from the Board. If new liability is not immediate ly obtained, the Board shall, upon notice, cancel the license . It shall be unlawful for the person to engage in the business of applying pes ticides until the liability is brought into compliance and the license reinstated. H. DAMAGES - 1. An award of damages to growing crops or plants resulting from negligent application or unintentional dr ift off target that is a violation of the Combined Pesticide Law shall be limited to: a. crops or plants that are insurable under the Federal Crop Insurance Corporatio n program, or b. crops or plants that are directly sold by the producer to the consumer. In a civil action arising from damages to growing crops or plants pursuant to this subsection , an award of actual damages sh all SB494 HFLR Page 8 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 not exceed the amount of compensation a producer has received from proven yield from the affected area. If the producer has no proven yield from the affected area, an award of actual damages shall not exceed an amount equal to the county average yield for the specific crop or plant as calculat ed by the Federal Crop Insurance Corporation program. 2. Prior to filing an action again st an applicator for damages to growing crops or plants, any person alleging damages to growing crops or plants shall: a. within ninety (90) calendar days of the date that the alleged damages occurred or p rior to the time that twenty-five percent (25%) of the allegedly damaged crops or plants are harvested, whichever occurs first, file a written complaint statement with the Department regarding the alleged damages, and b. between the date of filing of the w ritten complaint pursuant to subparagraph a of this paragraph and the date harvesting or destruction of the allegedly damaged crops or plants occurs, allow the applicator and the representatives of the applicator reaso nable access to the property to inspec t and take samples of the allegedly damaged crops o r plants during reasonable hours. The representatives of the applicator may include, but not be limited to, crop SB494 HFLR Page 9 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 consultants, bondsmen, and insurers . Nothing in this subparagraph shall limit in any way t he harvesting or destruction of the allegedly damag ed crops or plants in the ordinary course of busines s and practice. 2. 3. Any person failing to comply with paragraph 1 2 of this subsection shall be barred from fili ng an action for damages against the applicator. I. PERMIT REQUIRED – 1. It shall be unlawful for any person to sell, offer for sale, or di stribute within this state any restricted use pesticide without first obtaining a restricted use pesticide dealer’s permit issued by the Board. 2. A permit may be issued by the Board in any category of pesticide sales if the applicant qualifies under the provisions of this section and the applicant is limited to the category of pesticide sales named on the permit . The Board may establish categories of pesticide sales as necessary. 3. The permit shall be issued only upon application on a form prescribed by the Board and the application shall contain information regarding the applicant ’s proposed operation and other information as specified by the Board. 4. Each business location engaged in the sale or di stribution of restricted use pesticides shall requir e a separate permit. 5. The annual permit fee for a restricted use pesticide dealer permit shall be Fifty Dollars ($50.00) for each location. SB494 HFLR Page 10 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 6. The Board may require a certified applicator to be presen t at any location where designated restricted use pe sticide sales occur. J. PESTICIDE REGISTRATION REQUIRED – 1. Every pesticide or device distributed, sold, or offe red for sale within this state or delivered for transportation or transported in intrasta te or interstate commerce shall be registered with t he Board. 2. The registrant shall file with the Board a statement including, but not limited to: a. the name and address of the registrant and the name and address of the person whose name shall appear o n the label, if other than the registrant, b. the name of the pesticide or device, c. a complete copy of the labeling accompanying the pesticide or device and a statem ent of all claims to be made for it, and directions for use, and d. if requested by the B oard, a full description of the tests made and the r esults upon which the claims are based. In renewing a registration, a statement shall be required only with respec t to information which is different from the information furnished when the pesticide or device was last registered. 3. Each registrant shal l pay to the Board an annual registration fee of Two Hundred Ten Dollars ($210.00) for each SB494 HFLR Page 11 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 pesticide or device lab el registered. These fees shall be us ed by the Oklahoma Department of Agriculture, Food, and Forestry for purposes of administering pesticid e management programs. A portion of these fees, in the amount of Three Hundred Thousand Dollars ($300,000.00) annually, shall be dedicated for conductin g programs for unwanted pesticide disposal. This amount shall be deposited into the State Department o f Agriculture Unwanted Pesticide Disposal Fund and shall be dedicated for this use only. 4. The Board may require the submission of the complete formula of any pesticide. Trade secrets and formulations submitted by the registrant may be kept confidential . If it appears to the Board that the composition of the pesticide is adequate to warrant the proposed claims and if the pesticide, its labeling, and ot her material required to be submitted comply with t he requirements of this section, then the pesticide shall be registered. 5. If it does not appear to the Board that the pesticide or device is adequate to warrant the proposed claims for it or if the pesticide or device, its labeling, and other material r equired to be submitted do not comply with the provi sions of this section, it shall notify the applicant of the deficiencies in the pesticide, device, labeling, or oth er material required and afford the applicant an opportunity to make the necessary correc tions. If the applicant claims, in writing, that th e corrections are not necessary and requests in writing a hearing regarding the registration of the SB494 HFLR Page 12 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 pesticide or device, the Board shall provide an oppor tunity for a hearing before refusing to issue the r egistration. In order to protect the public, the Bo ard may at any time cancel the registration of a product or device . In no event, shall registration of a pesticide or device be considered as a defense or excuse for the commission of any offense prohibi ted under this section. 6. The Board may require th at pesticides be distinctively colored or discolored to protect the public health. 7. Registration shall not be re quired in the case of a pesticide shipped from one plant or place within this state to another plant or place within this state that is opera ted by the same person. K. CATEGORIES OF LICENSES AND PERMITS – The Board may establish any category of license fo r pesticide application or any categor y of permit for pesticide sales. L. PERMIT AND PESTICIDE REGISTRATION EXPIRATION – 1. All permits for pesticide sales shall be issued for a period of one (1) year and the permits shall be renewed annually and shall e xpire on a date determined by the Boar d. A permit may be renewed for the ensuing year, without penalty, if a properly completed application is filed with the Board not later than the fifteenth day of the month first following the date of expiration . If the application is SB494 HFLR Page 13 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 not received by that date, a penalty of twice the amount of the renewal fee shall be charged for renewal of the permit. 2. All pesticide registrations shall be issued for a period of one (1) year. The registration shall be renewed annua lly and shall expire on a date to be d etermined by the Board. Pesticide registrations may be renewed for the ensuing year, without penalty, if a properly completed application is filed with the Board not later than the fifteenth day of the month first fol lowing the date of expiration. If the application is not received by that date, a penalty of twice the amount of the renewal fee shall be ch arged for renewal of the pesticide registration. M. PESTICIDE PRODUCING ESTABLISHMENTS – 1. Definitions as used in this subsection: a. “establishment” means any site where a pesticide product, active ingredient or device is produced within the state, b. “produce” means to manufacture, prepare, propagate, compound or process any pesticide or to package, repackage, label, relabel or otherwise change the container of any pesticide or device, and c. “producer” means any person who produces, manufactures, prepares, compounds, propagates or processes any active ingredient, pesticide, or device as used in producing a pestici de. SB494 HFLR Page 14 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2. It shall be unlawful for any p erson to produce within this state any pesticide, active ingredient or device without first obtaining a pesticide producer establishment permit issued by the Board. 3. The permit shall be issued only upon application on a form prescribed by the Board . The application shall contain information regarding the proposed operation of the applicant and other information as specified by the Board. If at any time there is a change of the information provided in or on the appl ication for a pesticide producer estab lishment permit, the producer must notify the Board in writing within thirty (30) calendar days of the change. 4. The producer shall file a statement with the Board including but not limited to: a. the name and address of the company, b. the name and address of the establishment as well as the physical location, if different than the mailing address, c. the name of any pesticide, active ingredient, or device, and d. the name and address and other pertinent contact information for the responsible party. 5. All permits for pesticide producer establishments shall be issued for a period of one (1) year and sha ll be renewed annually. All permits shall expire on June 30 each year and may be renewed SB494 HFLR Page 15 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 without penalty if a prop erly completed application is filed wi th the Board not later than the fifteenth day of the month first following the date of expiration. If the application is not received by that date, a penalty of twice the amount of the renewal fee shall be charged for renewal of the permit. 6. Each pesticide producer establishment location engaged in the production of pesticides, active ingredients or dev ices shall require a separate permit. 7. The annual permit fee for a pesticide producer establishment shall be One Hundred Dollars ($100.00) for each lo cation. 8. If requested by the Board, a complete copy of all labeling, Material Safety Data Sheets, te chnical information associated with the pesticide, active ingredient, or device and a statement of all claims to be made as well as directions and use mu st be submitted to the Board. 9. In order to determine compliance with state and federal laws, the Board may request a full disclosure of inventory records, sales and distribution records, and any other information de emed necessary by the Board. 10. Every producer shall keep accurate records pertaining to pesticide, active ingredient, or device production and distribution as required by the Board . The records of the producer shall be kept intact at the principal prod ucing location in this state for at least two (2) years after the date of production and distribution SB494 HFLR Page 16 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 and copies shall be furnished to any au thorized agent of the Board, immediately upon request in person, at any time during the regular business hours of the producer. Copies of records shall be furnished to any authorized agent of the Board within seven (7) working days of a written request, i n summary form, by mail, fax, email, website, or any other electronic media customarily used. N. COMPLAINT RESOLUTION - Upon receipt of a written compla int, the Board shall notify the person filing the complaint in writing of its receipt and status within two (2) working days. The person whom the complaint is filed against shall also be notified within two (2) working days. Notification that a complaint has been filed may also be given to the landowner or operator when appropriate. The resolution of a complaint is the completion of the appropriate administrative, jurisdictional, or legal remedies to the extent possible by the Department. The complainant shall be notified in writing within seven (7) working days after resolution of the complaint. SECTION 2. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 73 of Title 23, unless there is created a duplication in numbering, reads as follows: A. An award of damages to growing crops or plants resulting from negligent application or unintentional drift off tar get that is a violation of the Combined Pesticide Law shall be limited to: SB494 HFLR Page 17 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1. Crops or plants that are insurable under the Federal Crop Insurance Corporation program; or 2. Crops or plants that are directly sold by the producer to the consumer. B. In a civil action arising from damages to growing crops or plants pursuant to subsection A of this sec tion, an award of actual damages shall not exceed t he amount of compensation a producer has received from proven yield from the affected area. If the producer has no proven yield from the affected area, an award of ac tual damages shall not exceed an amoun t equal to the county average yield for the specific crop or plant as calculated by the Federal Crop Insurance Corporation program. SECTION 3. It being immediately necessary for the preservation of the public peace, health or safety, an emergency is hereby declared to exist, by reason wher eof this act shall take effect and be in full force from and after its passage an d approval. COMMITTEE REPORT BY: COMMITTEE ON AGRICULTURE, dated 04/11/2023 - DO PASS.