BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           604 (De Leon)
          
          Hearing Date:  4/12/2010        Amended: 3/24/2010
          Consultant:  Bob Franzoia       Policy Vote: NA
          _________________________________________________________________ 
          ____
          BILL SUMMARY: AB 604, an urgency measure, would provide that the  
          Department of Food and Agriculture is authorized to spend any  
          funds collected and deposited into the Citrus Disease Management  
          Account in the Department of Food and Agriculture Fund through  
          June 30, 2010, thereby making an appropriation.   
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
           Limited appropriation  Negligible new administrative cost  
          through                Special*
                                 6/30/2010
                                                        
          * Citrus Disease Management Account in the Department of Food  
          and Agriculture Fund
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: Chapter 426/2009 (AB 281, De Leon) created in  
          the Department of Food and Agriculture the 17 member California  
          Citrus Pest and Disease Prevention Committee and the  
          authorization to develop a statewide citrus specific pest and  
          disease work plan.  This chapter provided for an assessment to  
          be paid by producers and remitted to the department and  
          deposited in the Citrus Disease Management Account for the sole  
          purpose of combating citrus specific pests, diseases, and their  
          vectors.

          During the first marketing season, beginning February 1, 2010,  
          and ending September 30, 2010, the assessment to be paid by  
          producers shall be one cent ($0.01) per carton (40 pounds).   
          Thereafter, in addition to any other assessments, fees, or  
          charges that may be required, producers shall pay an assessment  
          established by the committee that shall not exceed nine cents  
          ($0.09) per carton.  A producer of less than 750 cartons,  
          generally less than what is produced on one acre, shall not be  










          required to remit the assessment.
          
          Generally, to implement a new fee and begin collecting revenue  
          requires a minimum of six months.  As a result of the chapter's  
          urgency clause, a statutorily specified assessment and producer  
          support for commencing activities protecting citrus crops as  
          soon as possible, the department has collected $460,000 through  
          1/1/2010 and estimates collecting an additional $1,240,000  
          through 6/30/2010 ($1,700,000 total for 2009-2010).  Absent the  
          appropriation authority proposed by this bill, this money would  
          not be available until appropriated by the Budget Act.  In  
          future years, the money will be appropriated by the Budget Act. 
          
          Staff notes this bill previously was related to the San Joaquin  
          Valley Quality Cotton District.  All provisions related to the  
          district have been deleted.