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.