BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          AB 571 (Gatto) - Agricultural Pest Control: Citrus Disease  
          Prevention
          
          Amended: As Introduced          Policy Vote: Agriculture 3-0
          Urgency: No                     Mandate: No
          Hearing Date: August 30, 2013                           
          Consultant: Robert Ingenito     
          
          SUSPENSE FILE.


          Bill Summary: AB 571 would appropriate $5 million from the  
          General Fund to the Citrus Disease Management Account within the  
          California Department of Food and Agriculture (CDFA) to combat  
          citrus disease in the State via the Citrus Disease Prevention  
          Program. 

          Fiscal Impact: 
              The bill would make a $5 million appropriation on a  
              one-time basis. This appropriation would be available over  
              multiple fiscal years. 

              Additionally, the bill would declare that there is an  
              ongoing need for at least $5 million for its specified  
              purposes. Consequently, the bill would result in a $5  
              million annual cost pressure. The bill does not specify a  
              funding source. 


          Background: Citrus is a $2 billion industry in the state of  
          California.  California produces roughly 80 percent of the  
          nation's fresh citrus on roughly 270,000 acres, and directly  
          employs in excess of than 14,000 people.

          Huanglongbing (HLB), also known as citrus greening disease, is a  
          bacterial plant disease that, while not harmful to humans or  
          animals, is fatal for citrus trees. The disease destroys citrus  
          trees' production, appearance and economic value. Diseased trees  
          produce hard, bitter, misshapen fruit and the trees die within a  
          few years of being infected. HLB is considered to be one of the  
          most serious plant diseases in the world and currently there is  
          no cure. According to CDFA, HLB is the most devastating disease  








          AB 571 (Gatto)
          Page 1


          of citrus in the world, affecting citrus in Asia, Africa,  
          Brazil, Central America, as well as the United States. Infected  
          plants must be removed and destroyed in order to prevent further  
          spread of HLB.

          HLB is spread by the Asian citrus psyllid (ACP), a tiny,  
          invasive insect that feeds on the leaves and stems of citrus  
          trees and causes shoot deformation and plant stunting. When an  
          ACP feeds on an HLB-infected tree, it can pick up the bacteria  
          that causes the disease. Once infected, a psyllid carries the  
          disease-causing bacteria for life and can transfer the disease  
          when feeding on other citrus trees. 

           After a 2005 discovery in Florida, it took only two years for  
          HLB to transmit to all 32 Florida citrus-producing counties and  
          infect over half of the citrus tree in that state. Studies  
          conclude that HLB-related economic damage in Florida has  
          resulted in a loss of $4.5 billion and 8,200 jobs over the last  
          five years. Additionally, HLB has since been detected in  
          Georgia, Louisiana, South Carolina, and Texas.

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

          Proposed Law: This bill would appropriate $5 million from the  
          General Fund to the Citrus Disease Management Account within  
          CDFA to combat citrus disease or its vectors. 

          Related Legislation: 
                 AB 604 (De Le�n 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 Le�n) 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.








          AB 571 (Gatto)
          Page 2


          

          Staff Comments: Industry fee revenues are the primary source of  
          funding for the Citrus Disease Prevention Program, and the fee  
          is currently at it statutory maximum ($0.09 per 40-pound carton  
          of citrus). The 2013-14 budget contains a total of about $30  
          million in funding for the Program (an increase of about $3.5  
          million from the previous year), including about $19 million  
          from fees, $10 million from the federal government, and $1  
          million from the General Fund. This bill would increase funding  
          by an additional $5 million (General Fund).