BILL ANALYSIS Ó
SB 1018
Page 1
Date of Hearing: August 6, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 1018 (De León) - As Amended: June 30, 2014
Policy Committee:
AgricultureVote:7-0
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill makes the following modifications to the Citrus Pest
and Disease Prevention Program:
1)Places a $350,000 cap on general administrative cost
contribution from the Citrus Disease Management Account to the
Department of Food and Agriculture (DFA).
2)Requires the Secretary of the DFA (the Secretary) to provide
notice to the California Citrus Pest and Disease Prevention
Committee (the Committee) prior to making any changes to
program activities or increases in expenditures.
3)Specifies that only reasonable , rather than all, expenditures
incurred by the Secretary in carrying out his or her duties or
responsibilities under the program shall be reimbursed by the
Committee from the Citrus Disease Management Account.
The bill also allows DFA to produce and distribute biological
control organisms instead of procuring them from private
commercial businesses when such organisms are not available in
sufficient amounts to meet the department's needs.
FISCAL EFFECT
The fiscal effects of this bill are uncertain but could be
substantial depending on circumstances.
1)This bill limits the overall contribution the program makes to
DFA for general administrative costs (the "pro rata"
contribution), which will result in additional costs to other
SB 1018
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DFA programs or the General Fund if the pro rata contribution
requirement exceeds the cap.
2)To the extent the prior notice provisions of this bill limit
the ability of the Secretary to respond immediately to a
citrus pest or disease outbreak, it could potentially
jeopardize the containment of that pest or disease and
adversely affect California's citrus industry.
3)The bill allows the Committee discretion in reimbursing the
Secretary for expenditures related to the program, and any
costs not approved would become GF obligations.
4)To the extent other programs seek to limit pro rata
administrative cost contribution in a similar manner and/or
seek similar discretion in reimbursing departments for costs
incurred, substantial administrative GF cost pressure and
budget uncertainty could result.
COMMENTS
1) Purpose. According to the sponsor, California Citrus Mutual,
this bill would strengthen the Citrus Pest and Disease
Prevention Program by setting clear guidelines for the
Committee and the Department. The sponsor contends that no
such guidelines currently exist, and the efficacy of the
program has suffered as a result. The sponsor further asserts
that although previous disagreements with respect to staffing
between the Committee and the Secretary have been resolved,
this bill would prevent similar issues in the future.
2) Huanglongbing and the California Citrus Industry.
Huanglongbing (HLB) is a bacterial plant disease that destroys
the production, appearance, and value of citrus trees, ruining
the citrus crop. HLB is spread mainly by the Asian Citrus
Psyllid (ACP). To date there are no known controls for HLB,
other than removing and destroying infected groves. After a
2005 discovery in Florida, HLB spread to all 32 Florida citrus
producing counties and infected over half of the citrus trees
in that state within two years. Both ACP and HLB have been
discovered in California.
Citrus is a $2 billion industry in this state. California
produces 82% of the fresh citrus in the United States and
directly employs more than 14,000 people.
SB 1018
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3) The Citrus Pest and Disease Prevention Program. The Committee
resides within DFA and advises the Secretary on efforts to
prevent and manage citrus pests and diseases. To fund the
program, an assessment is levied on citrus producers and
deposited in the Citrus Disease Management Account for the
purpose of combating citrus-specific pests and diseases. The
account may also hold funds from federal and other non-GF
sources.
The program authorizes the Committee to develop, under
approval from the Secretary, a statewide citrus pest and
disease work plan and recommend the annual assessment rate and
budget. The Committee is required to reimburse DFA for all
expenditures incurred in implementing and administering the
statewide work plan. Current law does not require the DFA or
the Secretary to obtain approval for any action undertaken
pursuant to the statewide work plan. The sponsor claims that
certain programmatic changes were made, including an increase
to budgetary spending authority and a request for additional
funds to cover citrus pest control activities, without prior
consulatation and approval from the Committee.
4) Budgetary Power of Committees. Budgetary authority is held by
the Secretary for most, if not all, similar agricultural
committees and commissions in California. The committee may
wish to consider whether it is appropriate public policy to
give committees budgetary authority, including reimbursement
of program expenditures, over state programs.
5) Biological Control Agents. Currently, DFA may not produce and
distribute beneficial biological control agents if a
commercial producer makes those organisms available for
purchase, regardless as to the amount of organisms available.
This bill amends this section to allow DFA to produce and
distribute its own organisms if the amount commercially
available is insufficient to meet its needs.
Analysis Prepared by : Joel Tashjian / APPR. / (916) 319-2081