BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 822 (Roth) - Agricultural pest control: citrus disease
prevention
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|Version: January 5, 2016 |Policy Vote: AGRI. 4 - 0 |
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|Urgency: No |Mandate: No |
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|Hearing Date: April 11, 2016 |Consultant: Robert Ingenito |
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This bill meets the criteria for referral to the Suspense File.
Bill Summary: SB 822 would (1) 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 or its vectors, and (2) increase the maximum
citrus industry assessment fee from $0.09 to $0.12 per 40-pound
carton (carton).
Fiscal Impact:
The bill would make a $5 million General Fund appropriation
on a one-time basis, which would be available over multiple
fiscal years.
The bill would increase citrus industry assessed fee
authority by $0.03 per carton, from $0.09 to $0.12. If the
fee were raised to the maximum level, revenues would
SB 822 (Roth) Page 1 of
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increase by roughly $5 million annually.
Background: Citrus is a $2 billion industry in California. The
State produces roughly one-third 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 typically
die within 3-5 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 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, ACP 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 roughly $8 billion and 8,000 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 Southern California and has
since spread rapidly such that quarantine boundaries now
comprise one-third of the State. In March 2012, HLB was detected
in a multi-grafted citrus tree in a residential portion of Los
Angeles County. The tree was destroyed; however, the disease
was detected again in 2015 in 17 trees located in the
surrounding areas. The new finds and the rapid migration of the
disease-carrying insect have increased CDFA's surveillance,
SB 822 (Roth) Page 2 of
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trapping, and analytical workloads.
Proposed Law: This bill would (1) 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 or its vectors, and (2) increase the
maximum citrus assessment fee from $0.09 to $0.12 per carton.
Related Legislation:
AB 571 (Gatto, 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. The bill was vetoed by the
Governor.
AB 604 (De León 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 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: Current law establishes the California Citrus
Pest and Disease Prevention Committee (CCPDPC) within CDFA to
advise on efforts to prevent and manage citrus pests and
diseases. CCPDPC is generally funded by (1) the California
citrus industry, and (2) federal grants. 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. The current assessment rate
is the statutory maximum of $0.09 per carton. Assessment
revenues have averaged $15 million over the last five years, and
represent more than half of the total budget for program.
Additionally, $10 million dollars has been provided annually in
recent years through a grant from the United States Department
of Agriculture. However, this year, the federal government
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approved an additional $2 million in funding that will be used
to increase ACP detection and trapping in the San Joaquin
Valley.
CCPDPC received a one-time $1 million General Fund appropriation
in 2013-14. This bill would increase funding by an additional $5
million (General Fund). Additionally, if the industry assessment
were raised to $0.12 cents per carton, fee revenues would
increase by roughly $5 million annually, based on 2014-15
production levels.
Currently, $12 million of the industry-assessed fees are being
used to detect and trap ACP and remove HLB-infected citrus trees
in the Los Angeles Basin, the area of greatest infestation.
None of the assessment fees are currently being used to treat
commercial citrus groves.
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