BILL ANALYSIS                                                                                                                                                                                                    Ó



                           SENATE COMMITTEE on AGRICULTURE
                          Senator Cathleen Galgiani, Chair

          BILL NO:    SB 1018                   HEARING:  04/01/14
          AUTHOR:   De León                     FISCAL:  Yes
          VERSION:  03/26/14                    CONSULTANT:  Anne Megaro
          

                      Pest control: citrus disease prevention.

           SUMMARY  :
          
          This bill would specify that only reasonable, rather than all,  
          expenditures incurred by the California Department of Food and  
          Agriculture be reimbursed from the Citrus Disease Management  
          Account for responsibilities related to the Citrus Pest and  
          Disease Prevention Program.  This bill would require the  
          secretary to obtain approval from the California Citrus Pest and  
          Disease Prevention Committee for any changes to program  
          activities or increases in expenditures.
          

           BACKGROUND AND EXISTING LAW  :

          California is the top-producing agricultural state in the nation  
          with $44.7 billion in agricultural commodity value in 2012.   
          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 in 2012 and provided more than 14,000 jobs.

          Existing law establishes the California Citrus Pest and Disease  
          Prevention Committee (CCPDPC) within the California Department  
          of Food and Agriculture (CDFA) to advise the secretary of CDFA  
          on efforts to prevent and manage citrus pests and diseases.  An  
          assessment is levied on citrus producers and deposited into the  
          Citrus Disease Management Account for the sole purpose of  
          combating citrus-specific pests and diseases.  This account may  
          also contain funds from federal and other non-General Fund  
          sources.  The current assessment rate is 8 cents per 40 pound  
          carton, which amounts to $16 million annually and represents 64%  
          of the total budget for this program (Food and Agricultural Code  
          §5911 et seq.).

          Existing law authorizes CCPDPC to develop, under the approval of  
          the secretary, a statewide citrus-specific pest and disease work  
          plan and recommend an annual assessment rate and budget.  The  
          CCPDPC shall reimburse the secretary for all expenditures  




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          incurred in carrying out, implementing, and administering the  
          statewide work plan. 

          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  
          citrus trees to produce unpalatable/inedible fruit before  
          ultimately killing the tree.  

          According to the University of California Division of  
          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).

          The Agricultural Act of 2014 (H.R. 2642) was signed into law on  
          February 7, 2014, and directs $125 million of the USDA Specialty  
          Crop Research Initiative funding toward citrus disease research  
          over the next 5 years.  The federal 2014 budget includes an  
          additional $20 million to combat the spread of citrus pests and  
          diseases. 


           PROPOSED LAW  :

           This bill:  

             1.   Specifies that only reasonable, rather than all,  
               expenditures incurred by CDFA in carrying out  
               responsibilities pursuant to the Citrus Pest and Disease  
               Prevention Program be reimbursed by the  California Citrus  
               Pest and Disease Prevention Committee.

             2.   Requires the secretary of CDFA to obtain approval from  
               the CCPDPC before making any changes to program activities.

             3.   Requires the secretary of CDFA to obtain approval from  
               the CCPDPC before seeking reimbursement for additional  
               expenditures not previously developed by CCPDPC.


           COMMENTS  :





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           Need for this bill:  According to those in support, this bill  
          would "strengthen the Program by setting clear guidelines for  
          the Committee and the Department.  Currently, no such guidelines  
          exist and as such the efficacy of the program has suffered as a  
          result.  Establishing a clear directive for the Program will  
          streamline work by the Committee and the Department, now and in  
          the future."  Furthermore, although previous issues have been  
          resolved, this bill would prevent similar issues in the future.

           Committee Authority:   Current law states that the CCPDPC makes  
          recommendations to the secretary of CDFA and has the authority  
          to develop work plans under the approval of the secretary.   
          CCPDPC does not have the authority to require CDFA to obtain  
          committee approval for any action.  This is concerning to the  
          sponsors of this bill, given recent incidences when the CCPDPC  
          was not consulted before programmatic changes were made, when  
          budgetary spending authority was increased, or when additional  
          funds were requested by CDFA to cover costs related to citrus  
          pest control and prevention.  

          The committee may wish to consider whether or not it is  
          appropriate public policy to give committees budgetary authority  
          over state programs.  Budgetary authority is held by the  
          secretary of CDFA for most, if not all, similar agricultural  
          committees and commissions in California.

          The committee may wish to consider whether or not the bill  
          should be amended so that CDFA must consult with CCPDPC rather  
          than obtain approval from CCPDPC for the actions specified in  
          the bill.  This amendment would address the sponsor's concerns  
          while retaining authority with CDFA.


           RELATED LEGISLATION  :

          AB 571 (Gatto). Vetoed, 2013. This bill would have appropriated  
          $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.

          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.






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          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, and allows the committee to  
          levy fees on citrus producers to pay for citrus disease  
          detection and control programs.


           SUPPORT  :
          
          California Citrus Mutual (Sponsor)

           OPPOSITION  :
          
          None received