BILL ANALYSIS Ó
Senate Appropriations Committee Fiscal Summary
Senator Kevin de León, Chair
SB 1018 (de León) - Pest Control: Citrus Disease Prevention:
Expenditure Reimbursement
Amended: March 26, 2014 Policy Vote: Agriculture 5-0
Urgency: No Mandate: No
Hearing Date: April 28, 2014
Consultant: Robert Ingenito
This bill may meet the criteria for referral to the Suspense
File.
Bill Summary: SB 1018 would specify that only reasonable, rather
than all, expenditures incurred by the California Department of
Food and Agriculture (CDFA) 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 of CDFA to obtain approval from the
California Citrus Pest and Disease Prevention Committee
(Committee) for any changes to program activities or increases
in expenditures.
Fiscal Impact: The fiscal effect of this bill is uncertain; it
would be determined by whether or not a citrus pest and the
disease it carries spread from other countries and southern
states (especially Florida) to California agriculture. If the
disease does not become established in California, the bill's
costs would be minimal. Conversely, if the disease becomes
prevalent in the State's citrus groves, the bill's fiscal impact
is unknown, but likely significant (See Staff Comments).
Background: California's citrus industry is valued at roughly $2
billion annually. The State reportedly produces 80 percent of
the nation's fresh citrus on 270,000 acres, and directly employs
in excess of 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 kills the tree's
entire root and branch system and doesn't allow fruit to grow
beyond the green stage. The scarred fruit usually falls off the
tree and rots on the ground before it can be harvested. Thus,
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the disease destroys citrus trees' production, appearance and
economic value.
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 bacterium
that causes the disease. Once infected, a psyllid carries the
disease-causing bacteria for life and can transfer HLB when
feeding on other citrus trees.
HLB is the most devastating disease of citrus in the world,
affecting citrus in Asia, Africa, Brazil, Central America, as
well as the United States (especially Florida). Currently there
is no cure. Infected plants must be removed and destroyed in
order to prevent further spread of HLB.
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 trees 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 several
other Southern states.
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.
Current law establishes the Committee within CDFA to advise it
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
roughly two-thirds of the total budget for this program.
Under current law, the Committee develops, under the approval of
the Secretary of CDFA, a statewide citrus-specific pest and
disease work plan and recommends an annual assessment rate and
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budget. The Committee reimburses CDFA for all expenditures
incurred in carrying out, implementing, and administering the
statewide work plan.
Proposed Law: This bill (1) would specify 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 Committee, (2) require
the Secretary of CDFA to obtain approval from the Committee
before making any changes to program activities, and (3)
requires the Secretary of CDFA to obtain approval from the
Committee before seeking reimbursement for additional
expenditures not previously developed by the Committee. The term
"reasonable" is not defined in the bill.
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 281 (De León) 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.
Staff Comments: Under the bill, CDFA's authority to approve
immediate eradication efforts in response to a detection of HLB
would be curtailed. The bill would instead require CDFA to seek
the Committee's authority before altering current work plan
activities. Costs would result under scenarios in which the
presence of HLB and the size of the area affected exceed what is
envisioned in the developed work plan.
Specifically, to make a request of the Committee to alter the
work plan, CDFA would need to conduct an emergency meeting.
Under current law related to open meetings, this process would
take a minimum of 10 calendar days before approval of additional
activities can begin. This expanded window to act during an
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emergency will allow the threat to spread and increase the costs
for containment. These additional costs are unknown, and would
depend upon the extent of the spread of HLB.
Additionally, delayed response during an emergency would result
a decrease in citrus crop production. Consequently, the amount
of revenue assessed and deposited into the Food and Agriculture
Fund would decline.