BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 571
                                                                  Page  1

          Date of Hearing:   May 1, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                 AB 571 (Gatto) - As Introduced:  February 20, 2013 

          Policy Committee:                              AgricultureVote:7  
          - 0 

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill appropriates $5 million from the General Fund (GF) to  
          the Citrus Disease Management account (CDMA) in the California  
          Department of Food and Agriculture (CDFA) and declares there is  
          an on-going need for at least $5 million annually in funding to  
          combat citrus diseases. 

           FISCAL EFFECT  

          1)This bill provides a one-time $5 million GF appropriation that  
            can be spent over multiple years.

          2)Creates cost pressure to provide $5 million in additional  
            funding each year for the prevention of citrus diseases.   
            However, those funds could be provided through an assessment  
            on growers or by some other means.  The bill does not specify  
            a funding source.  

           COMMENTS  

           1)Purpose  . Huanglongbing (HLB), which has the potential to  
            decimate citrus groves, poses a significant risk to  
            California's $1.5 billion citrus industry. The author states  
            that allocating $5 million to supplement the current Citrus  
            Disease Management Account (CDMA) funding for research will  
            help protect the citrus industry in California. The author  
            hopes that this appropriation will assist citrus producers,  
            who are helping fund the fight, in not falling victim to HLB.

           2)Background  . In March of 2012, HLB was found in a Los  
            Angeles-area backyard.  HLB is a bacterial plant disease that  








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            destroys the production, appearance and value of citrus trees,  
            ruining the citrus.  HLB is spread mainly by the Asian citrus  
            psyllid (ACP).  To date there is no known way to control the  
            spread of the disease other than by removing and destroying  
            infected groves.  After a 2005 discovery in Florida, it took  
            two years for HLB to transmit to all 32 Florida citrus  
            producing counties and infect over half of the citrus trees in  
            that state. 

            Since 2009, citrus producers have contributed approximately $7  
            million each year toward researching methods of eradication  
            and approximately $16 million per year for eradication. In  
            addition, the United States Department of Agriculture (USDA)  
            has spent at least $10 million per year in the last three  
            years to eradicate HLB and ACP. This results in approximately  
            $33 million per year in funding to find new treatments and  
            eradicate HLP and ACP in California.   

           3)California Citrus Industry  . California's citrus industry ranks  
            second in the United States after Florida. California's total  
            citrus production averaged 3.2 million tons per season over  
            the past three seasons, about 24% of the total. Oranges, on  
            average, accounted for 66% of the state's citrus crop, lemons  
            25%, grapefruits 6%, and tangerines/clementines 3%. While  
            California produces 24% of the nation's oranges, its crop  
            accounts for approximately 80% of those going to the  
            fresh-market.

           4)California Citrus Pest and Disease Prevention Committee  
            (CCPDPC)  .  The CCPDPC consists of 17 members appointed by CDFA  
            and made up of 14 producers from designated districts across  
            the state and representing different varieties of citrus, one  
            public member, and two citrus nursery operators from northern  
            California and southern California areas.  All members serve a  
            five-year term.

            The committee is responsible for developing a statewide  
            citrus-specific pest and disease work plan that will initiate  
            informational programs to educate and train residential citrus  
            owners on citrus pest and disease prevention, and surveying  
            and detecting and treatment analysis for citrus pest and  
            disease.

           5)Related Legislation  . AB 604 (De Leon and Fuller), Chapter 17,  
            Statutes of 2010, authorized CDFA to spend, until June 30,  








                                                                  AB 571
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            2010, any monies it had collected since November 2009 on  
            citrus specific pest and disease programs created by AB 281  
            (De Leon).   

            AB 281 (De Leon), Chapter 426, Statutes of 2009, created  
            CCPDPC to prevent and control citrus diseases in California,  
            and allows the CCPDPC to levy fees on citrus producers to pay  
            for citrus disease detection and control programs.  


           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081