12811.5
. The director may rely upon any evaluations of previously
submitted data to determine whether to accept an application for
registration of a new pesticide product, an amendment to the
registration of a registered pesticide product, or to maintain the
registration of a registered pesticide product regardless of the
ownership of the data previously evaluated. However, effective
January 1, 2006, applicants will be subject to the following
provisions:
(a) If an applicant for registration of a pesticide product, or an
amendment to the registration of a registered pesticide product,
including a registrant that desires to maintain its registration of a
registered pesticide product after the director makes a formal
reevaluation request for additional data, does not submit its own
data to fulfill a current data requirement imposed by the director
and relies upon data that the applicant does not own or have written
permission to rely upon that was submitted to the director by another
entity after January 1, 1991, and meets the three criteria set forth
in this subdivision, the applicant must either (i) obtain written
permission from the data owner to rely on the data, (ii) formulate or
obtain its product from a source that has data authorization from
the data owner, or a source that complies with subdivision (c), or
(iii) if the data meets the criteria set forth in paragraphs (1),
(2), and (3), irrevocably offer to pay the data owner a share of the
cost of producing the data and comply with the provisions of
subdivision (d). The director may rely upon data submitted prior to
January 1, 1991, or that does not meet the criteria set forth in
paragraphs (1), (2), and (3) to support any application or comply
with any formal reevaluation request for additional data, without
permission from the data owner. An offer to pay, and a payment
pursuant to that offer, shall only be required as to data not
submitted by the applicant that meets the criteria set forth in
paragraphs (1), (2), and (3). To be eligible for cost sharing
pursuant to this subdivision, the data must meet all of the following
requirements:
(1) The data was required by the director in order to obtain,
amend, or maintain the data owner's California registration or
registrations for uses covered by the application, amendment, or
formal reevaluation request for additional data.
(2) There has been no arbitration award, data compensation, or
data cost-sharing agreement pertaining to data supporting the product
at the federal level pursuant to Section 3(c)(1) (F)(iii) or 3(c)(2)
(B) of the Federal Insecticide, Fungicide, and Rodenticide Act (7
U.S.C. Sec. 136a(c)(1)(F)(iii) or 136a(c)(2)(B)), or, if an award or
agreement exists, the use of data in California was excluded from
compensation or cost sharing on its face.
(3) The data that fulfills a current requirement was submitted to
the United States Environmental Protection Agency or the department
no more than 15 years prior to the date of the applicant's California
registration, application, or amendment or the formal reevaluation
request for additional data to which the registrant's reliance
responds, provided that as to data submitted to the department as of
August 1, 2005, in support of the first registration of a product,
the applicable period shall be 17 years from the date of submission
to the United States Environmental Protection Agency.
(b) If the director previously imposed a specific documented data
requirement after January 1, 1991, to obtain, amend, or maintain the
California registration of a pesticide product substantially similar
to the applicant's product and that data requirement is not currently
imposed in California for registration, amendment, or maintenance of
the applicant's product, the applicant is further obligated to
submit data to meet the requirement, obtain written permission from
an owner of the data to rely upon the data, formulate or obtain its
product from a source that has authorization from the data owner to
rely upon the data or from a source that complies with subdivision
(c), or, if the data meets the criteria set forth in paragraphs (1),
(2), and (3), irrevocably offer to pay the data owner a share in the
cost of producing the data and comply with the provisions of
subdivision (c). An offer to pay, and a payment pursuant to that
offer, shall only be required as to data not submitted by the
applicant that meets the criteria set forth in paragraphs (1), (2),
and (3). To be eligible for cost sharing pursuant to this
subdivision, the data must meet all of the following requirements:
(1) The data met a specific, documented requirement of the
director to obtain, amend, or maintain the California registration of
the data owner's pesticide product for a use covered by the
applicant's application or amendment.
(2) There has been no arbitration award, data compensation, or
data cost-sharing agreement pertaining to data supporting the product
at the federal level pursuant to Section 3(c)(1)(F)(iii) or 3(c)(2)
(B) of the Federal Insecticide, Fungicide, and Rodenticide Act (7
U.S.C. Sec. 136a(c)(1)(F)(iii) or 136a(c)(2)(B)), or, if an award or
agreement exists, the use of the data in California was excluded from
compensation or cost sharing on its face.
(3) The data was submitted to the U.S. Environmental Protection
Agency or Department of Pesticide Regulation by the data owner after
January 1, 1991, and no more than 15 years prior to the date of the
applicant's California application for registration or amendment or
the response to a formal specific document data requirement to which
the registrant's reliance responds, provided that as to data
submitted to the department as of August 1, 2005, in support of the
first registration of a product, the applicable period shall be 17
years from the date of submission to the U.S. Environmental
Protection Agency.
(c) An applicant may formulate its product from a source that does
not have data authorization provided that source has submitted data
to support the product or makes or has made an irrevocable offer to
pay the data owner a share of the cost of producing the data required
pursuant to subdivision (a) or (b) for the applicant's product and
complies with or has made payment in accordance with the provisions
of subdivision (d). In the event that the source has already reached
a data compensation or cost-sharing agreement or there has been an
arbitration award under the Federal Insecticide, Fungicide, and
Rodenticide Act (commencing at 7 U.S.C. Sec. 136) that excludes the
right to rely on the data to satisfy the California requirement on
its face, the source must make or have made a new irrevocable offer
to pay a share of the cost of producing that data to support the
applicant's product in California and comply with the provisions of
subdivision (d).
(d) If an applicant is required to offer to pay a share in the
cost of producing the data pursuant to subdivision (a) or (b), or if
a source of product makes an offer pursuant to subdivision (c), the
applicant or source must submit to the data owner upon application to
the department an irrevocable offer to pay the data owner a share in
the cost of producing the data and to comply with regulations
promulgated under this subdivision to determine the amount and terms,
if the parties cannot agree. If a data owner for which cost sharing
is required under subdivision (a) or (b) cannot be identified from
information readily available to the applicant, the applicant's
obligation under subdivision (a) or (b) will be absolved if the data
owner does not identify himself or herself to the applicant within 12
months after registration of the pesticide product. If within 12
months of registration, the data owner identifies himself or herself
to the applicant and the applicant has not already made an
irrevocable offer to pay to the data owner, or the applicant's source
of product has not made an offer pursuant to subdivision (c), the
applicant must do so promptly. In either event, the specific terms
and amount of payments to be made shall be fixed by agreement between
the applicant and the data owner, but determination of those amounts
and terms shall not delay approval of the applicant's application.
If agreement cannot be reached about the terms and amount of
payment required by this section at any time more than 90 days after
issuance of an irrevocable offer to pay, either the applicant, source
or data owner may initiate, or with the consent of all parties, join
a proceeding under the Federal Insecticide, Fungicide, and
Rodenticide Act (commencing at 7 U.S.C. Sec. 136), pursuant to
regulations promulgated by the director pursuant to this statute. The
purpose of this proceeding shall be to determine the amount due
under this section. The director shall promulgate those regulations
as emergency regulations within 60 days of the enactment of the bill
that enacts this section. The regulations shall provide all of the
following:
(1) Allow the proceeding authorized by this subdivision, upon
mutual agreement of the parties, to be consolidated with dispute
resolution under the Federal Insecticide Fungicide and Rodenticide
Act (commencing at 7 U.S.C. Sec. 136).
(2) Require that the decisionmaker consider, among other factors,
that the data owner's exclusive right to sell the pesticide resulted
in the data owner recovering all or part of the costs of generating
the data.
(3) Require that the parties to the proceeding share equally in
the payment of the expenses thereof.
(e) If a data owner fails to participate in a procedure for
reaching an agreement or in a proceeding as required by subdivision
(d), or fails to comply with the terms of an agreement or decision
conducted under subdivision (d), then that data owner forfeits his or
her right to cost recovery as a result of the use of the data at
issue.
(f) If the director finds that an applicant has failed to make an
offer to pay as required under subdivision (a) or (b), or if its
source of product has failed to make an offer pursuant to subdivision
(c), or if an applicant or its source of product has failed to
participate in a proceeding for reaching an agreement, or has refused
to participate in a proceeding pursuant to subdivision (d), or has
failed to comply with an agreement or to comply with an order, or to
pay an award resulting from that proceeding, the director shall
cancel the registration of the pesticide product in support of which
the data was used in accordance with the provisions of subdivision
(g), notwithstanding the provisions of Section 12825.
(g) If the applicant subject to subdivision (a) or (b) fails to
comply with the provisions of this article, the data owner shall
notify the director of the specific provision of noncompliance and
provide proof of notification to the applicant of its claim of
noncompliance. All parties shall have 30 days from the date of
receipt of notification by the director to submit written evidence or
arguments to the director regarding the claim and any defenses
thereto. The director shall provide a written finding within 60 days
of the deadline for submission as to the claim and the resulting
consequences.
(h) No hearing or live testimony shall be conducted under
subdivision (g) and this proceeding shall not be used as mechanism to
prevent or delay the registration or payment for cost sharing as
determined by this article. The finding of the director shall be
final and conclusive, except that any party aggrieved by such a
finding may seek review within 30 days of the finding pursuant to
Section 1094.5 of the Code of Civil Procedure.
(i) In lieu of seeking a determination by the director and
cancellation of the registration pursuant to subdivision (f), the
data owner may bring an action in any California court of competent
jurisdiction against the applicant to enforce the obligations of that
party set forth in the provisions of this section.
(j) No cost sharing as provided in subdivisions (a), (b), and (c)
shall be required to support an application for annual renewal of a
pesticide product registration, provided this provision shall not
authorize renewal of a product registered prior to the effective date
of this section if that registration is declared to have been
unlawfully issued by a court of competent jurisdiction.
(k) The Department of Pesticide Regulation shall make available in
the public domain its index of data submitted in support of
registration applications, the ownership of that data, and the date
it was submitted to California.