BILL ANALYSIS                                                                                                                                                                                                    Ó



                           SENATE COMMITTEE on AGRICULTURE
                          Senator Cathleen Galgiani, Chair

          BILL NO:    AB 571                    HEARING:  06/18/13
          AUTHOR:   Gatto                       FISCAL:  Yes
          VERSION:  02/20/13                    CONSULTANT:  Anne Megaro
          

                Agricultural pest control: citrus disease prevention.

           SUMMARY  :
          
          This bill would appropriate $5 million from the General Fund to  
          the Citrus Disease Management Account within the California  
          Department of Food and Agriculture Fund for the purposes of  
          combating citrus disease or its vectors.
          
           BACKGROUND AND EXISTING LAW  :

          California is the top-producing agricultural state in the nation  
          with $43.8 billion in agricultural commodity value in 2011.   
          California is also a top producer of citrus fruits and is ranked  
          second only to Florida in citrus production and first in citrus  
          product sold fresh to market.  The $2.1 billion California  
          citrus industry grew nearly 4 million tons of citrus on 270,000  
          acres last year and provided more than 14,000 jobs.

          Asian citrus psyllid (ACP) is an invasive pest that feeds on  
          citrus plants' leaves and stems and causes shoot deformation and  
          plant stunting.  More importantly, ACP may transmit  
          Huanglongbing (HLB), a bacterial plant disease that causes the  
          plant to produce unpalatable/inedible fruit before deteriorating  
          the plant's health so severely that it dies.  According to the  
          California Department of Food and Agriculture (CDFA), HLB is the  
          most devastating disease of citrus in the world, affecting  
          citrus in Asia, Africa, Brazil (a significant citrus-producing  
          country), Central America and the U.S.  There is no cure for the  
          disease, and infected plants must be removed and destroyed in  
          order to prevent further spread of HLB.  

          The first discovery of ACP and HLB in the United States was in  
          Florida in 1998 and early September 2005, respectively.  Within  
          2 years, the disease HLB spread to all citrus-producing counties  
          and infected over half of all citrus trees in the state.   
          Studies have shown that the economic damage due to HLB in  
          Florida alone has resulted in a loss of $4.5 billion and 8,200  
          jobs over the last 5 years.  The disease HLB has since been  
          detected in Georgia, Louisiana, South Carolina, and Texas and  
          the pest ACP only in Mississippi and Alabama.




          AB 571 - Page 2



          In 2008, the pest ACP was first identified in California and has  
          spread to several southern California counties.  In March 2012,  
          HLB was detected in a residential, multi-grafted citrus tree in  
          Los Angeles County.  The tree was destroyed, and the disease has  
          not been detected in California since.


          According to the University of California, Agriculture and  
          Natural Resources (UCANR), the citrus industry, the University  
          of California, and both the state and federal governments are  
          working to eliminate and prevent the establishment of ACP and  
          HLB in California.  Much of the research is conducted with  
          funding from the citrus industry through the Citrus Research  
          Board, UCANR, CDFA Specialty Crops Block Grants, and the United  
          States Department of Agriculture - National Institute of Food  
          and Agriculture (USDA-NIFA).
           

          PROPOSED LAW  :

           This bill:  

          Appropriates $5 million from the General Fund to the Citrus  
          Disease Management Account within the Department of Food and  
          Agriculture Fund for the purpose of combating citrus disease or  
          its vectors.


           COMMENTS  :

           Need for this bill:  According to the author, "The devastating  
          effects of the Asian citrus psyllid and HLB have already been  
          seen in Florida, providing a glimpse into the future of  
          California citrus if early action is not taken.  Unfortunately,  
          when it was detected in Florida in 1998, the pest had spread to  
          such an extent that it made containment difficult."   
          Furthermore, "This measure will help protect a major industry in  
          California.  It will ensure that the agricultural sector, a  
          vital component of our state's economy, does not fall victim to  
          these imported maladies."

           Department of Finance:  The Department of Finance is opposed to  
          this bill because "the Program is already adequately funded with  
          federal and special funds, and it is inconsistent with the  
          current budget.  The Program currently performs the research and  
          preventative activities addressed in this bill."  Furthermore,  





          AB 571 - Page 3


          "The Program receives approximately $16 million annually from  
          (industry) assessment fees and $10 million in federal funds, the  
          majority of which is used to combat the ACP and survey for HLB."


           RELATED LEGISLATION  :
          
          AB 604 (De Leon and Fuller) Chapter 17, Statutes of 2010.   
          Authorizes CDFA to spend any monies it had collected in the  
          Citrus Disease Management Account on citrus specific pest and  
          disease programs through June 30, 2010.

          AB 281 (De Leon) Chapter 426, Statutes of 2009.  Establishes the  
          California Citrus Pest and Disease Prevention Committee and the  
          Citrus Disease Management Account within CDFA to prevent and  
          manage citrus pests and diseases.  The Account shall consist of  
          money from industry assessment fees but may also include federal  
          and other non-General Fund sources.

           PRIOR ACTIONS  :

          Assembly Floor      77-0
          Assembly Appropriations  17-0
          Assembly Agriculture       7-0


           SUPPORT  :
          
          California Citrus Mutual
          Paramount Citrus
          Western Growers Association


           OPPOSITION  :
          
          Department of Finance