Caltec AG v. Dep't of Pesticide Regulation

242 Cal. Rptr. 3d 156, 30 Cal. App. 5th 872
CourtCalifornia Court of Appeal, 5th District
DecidedJanuary 2, 2019
DocketF074334
StatusPublished
Cited by2 cases

This text of 242 Cal. Rptr. 3d 156 (Caltec AG v. Dep't of Pesticide Regulation) is published on Counsel Stack Legal Research, covering California Court of Appeal, 5th District primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Caltec AG v. Dep't of Pesticide Regulation, 242 Cal. Rptr. 3d 156, 30 Cal. App. 5th 872 (Cal. Ct. App. 2019).

Opinion

FRANSON, J.

*876Appellant Caltec Ag, Inc. (Caltec) challenges a final administrative decision of the California Department of Pesticide Regulation (Department or DPR) that three of Caltec's products were pesticides. Pursuant to Food and Agricultural Code sections 12993 and 12999.4,1 the Department imposed fines totaling $784,000, finding that the products should have been registered as pesticides before being sold in California.

California's statutory scheme for the regulation of pesticides defines "pesticide" to include (1) any "spray adjuvant," (2) any mixture of substances intended to be used *159for regulating plant growth, and (3) any substance used to prevent, destroy, repel or mitigate any pest. (§ 12753.) Here, the Department determined products named "Greenfeed 27-0-0" and "Terra Treat" were spray adjuvants and a product named "Kelpak," a liquid extract from edible seaweed, was intended to be used as a plant growth regulator. Prior to the Department's determinations, the California Department of Food and Agriculture (DeptAg) had issued certificates registering the products as specific types of "fertilizing materials." (§ 14533.) Greenfeed 27-0-0 was registered as a "commercial fertilizer" (§ 14522), Terra Treat as an "auxiliary soil and plant substance" (§ 14513), and Kelpak as an "organic input material" (§ 14550.5). Thus, Caltec contends the products were fertilizers and not pesticides.

As to Greenfeed 27-0-0, we conclude substantial evidence supports the finding that this commercial fertilizer is also a spray adjuvant. A Caltec document states Greenfeed 27-0-0 is compatible with pesticides other than sulfur, has excellent sticking and spreading qualities, and can be used as a carrier for pesticides. The document supports a finding that Greenfeed 27-0-0 is a spreading agent intended to be used with another pesticide as an aid to the application of the other pesticide. Consequently, Greenfeed 27-0-0 satisfies the definition of a spray adjuvant. (§ 12758.)

Substantial evidence also supports the findings that Terra Treat is a spray adjuvant-specifically, a wetting agent that aids the application of pesticides. Terra Treat's label described it as a soil surfactant/penetrant designed to uniformly distribute fertilizer, pesticides and water throughout the root zone.

*877Also, a May 2011 technical information sheet states Terra Treat significantly increases the effectiveness of certain insecticides and herbicides. Based on these and other documents in the record, the Department's finding that Terra Treat is a spray adjuvant and, therefore, a pesticide under section 12753 is supported by substantial evidence.

As to Kelpak, substantial evidence supports the findings that (1) Kelpak is a liquid auxin concentrate, (2) naturally occurring auxins in concentrated form are plant growth regulators, and (3) Caltec sold Kelpak with the intent that it be used as a plant growth regulator. Accordingly, the Department did not commit factual error in determining Kelpak is a plant growth regulator and, therefore, a pesticide under section 12753.

As to the questions of statutory construction involving the relationship between the chapter of the Food and Agricultural Code governing pesticides and the chapter governing fertilizers, we conclude the DeptAg's prior registration of Terra Treat as an "auxiliary soil and plant substance" (§ 14513) and Kelpak as an "organic input material" (§ 14550.5) does not preclude the Department from determining those products were pesticides.

Caltec also has raised claims of procedural and evidentiary error. We conclude any procedural error was not prejudicial and Caltec has failed to demonstrate the hearing officer's treatment of the evidence violated an applicable rule of law.

We therefore affirm the judgment.

FACTS AND PROCEEDINGS

Caltec markets and sells a variety of agricultural plant nutrients, crop protectors and chemicals. In December 2012, the Department received an email from a licensed pest control advisor stating that a product named Microlife was being actively promoted and sold as a nematicide by Caltec even though Microlife was not registered as a pesticide. The email attached *160copies of labels used by the companies selling the product.2

On the morning of May 30, 2013, the Department issued a "NOTICE OF INSPECTION" to Caltec for its office in Modesto. The inspector was Saiful Chowdhury, who works as an environmental scientist in the Department's product compliance branch. Chowdhury spoke with Caltec's office manager who informed him no products were located at the corporate office in Modesto and customers took possession of the materials they ordered at *878Caltec's warehouse in Fresno. The office manager provided Chowdhury with copies of labels for the products sold and a guide manual for Kelpak. After reviewing the documents, Chowdhury issued "PESTICIDE STATUTES VIOLATION NOTICE[S]" relating to four products that were not registered as pesticides with the Department. The products were Microlife, Greenfeed 27-0-0, Terra Treat, and Kelpak. The notices (1) stated the Department's opinion that the products were pesticides that required registration, (2) advised Caltec it was illegal to sell unregistered pesticides in California, and (3) noted Caltec had refused to provide sales invoices for the products.

On June 17, 2013, counsel for Caltec responded to the violation notices by sending the Department a letter stating (1) Greenfeed was a fertilizer, (2) Terra Treat was a soil penetrant used in irrigation to prevent puddling and to promote lateral movement of water in soil, and (3) "Kelpak is a natural plant growth regulator made out of sea weed and is used to increase the set and quality of fruits and vegetables." The letter stated Caltec's position that the products were not pesticides and asserted the products were not intended to control or destroy pests. The letter requested the withdrawal of the violation notices.

The Department did not withdraw the violation notices and continued its attempts to obtain sales information for the products. Meanwhile, in November 2013, Chowdhury completed an investigation summary using the Department's preprinted form. The investigation summary concluded Microlife, Greenfeed, Terra Treat and Kelpak were pesticides. Exhibits to the investigation summary included (1) documents obtained from Caltec's Web site, (2) a September 13, 2012, press release from the United States Environmental Protection Agency (EPA), (3) a Kelpak label received from Caltec's owner, (4) documents from the Web site of Kelpak's manufacturer, and (5) the June 17, 2013, letter from Caltec's counsel.

In December 2013, the Department again requested sales information for the products by sending Caltec's owner a letter. Counsel for Caltec responded in a letter dated January 13, 2014, which asserted the products were fertilizers, not pesticides, and refused to provide the sales data.

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Cite This Page — Counsel Stack

Bluebook (online)
242 Cal. Rptr. 3d 156, 30 Cal. App. 5th 872, Counsel Stack Legal Research, https://law.counselstack.com/opinion/caltec-ag-v-dept-of-pesticide-regulation-calctapp5d-2019.