BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 822|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
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THIRD READING
Bill No: SB 822
Author: Roth (D)
Amended: 5/31/16
Vote: 21
SENATE AGRICULTURE COMMITTEE: 4-0, 3/29/16
AYES: Galgiani, Cannella, Pan, Wolk
NO VOTE RECORDED: Berryhill
SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/27/16
AYES: Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen
SUBJECT: Agricultural pest control: citrus disease
prevention: monthly assessment
SOURCE: California Citrus Mutual
DIGEST: This bill increases the maximum monthly citrus
assessment fee from $0.09 to $0.12 cents per 40 pound carton.
ANALYSIS: Existing law requires producers in the citrus fruit
industry to pay a monthly assessment not exceeding $0.09 per
carton of citrus fruit, to be used for citrus disease management
and pest control activities, which are deposited in the Citrus
Disease Management Account, except as specified.
This bill increases the monthly citrus assessment fee from $0.09
to $0.12 per 40 pound carton.
Background
California is the top-producing agricultural state in the nation
with $54 billion in agricultural commodity value in 2014.
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Page 2
California is also a top producer of citrus fruits and is ranked
second only to Florida in citrus production but first in citrus
product sold fresh to market. According to the most recent
census, in 2012, the $2.1 billion California citrus industry
grew nearly 4 million tons of citrus on 270,000 acres 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 $0.09 per 40 pound
carton, which amounts to $15 million annually and represents
more than half of the total budget for this program (AB 281, De
León, Chapter 426, Statutes of 2009; Food and Agricultural Code
§5911 et seq.).
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 the
plant to produce unpalatable/inedible fruit before ultimately
killing the tree. According to CDFA, HLB is the most
devastating disease of citrus in the world. There is no cure
and infected plants must be destroyed.
The first discovery of ACP and HLB in the United States was in
Florida in 1998 and early September 2005, respectively. Within
2 years, the disease HLB spread to all citrus-producing counties
and infected over half of all citrus trees in the state.
Studies have shown that the economic damage due to HLB in
Florida alone has resulted in a loss of $7.8 billion and 7,513
jobs since 2007, reducing the industry to nearly a quarter of
the size it once was. The disease HLB has also been detected in
Georgia, Louisiana, South Carolina, Texas, and most recently,
California.
In 2008, the pest ACP was first identified in Southern
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Page 3
California. In in the last two years, ACP has rapidly spread
north into commercial citrus groves and residential trees, and
quarantine boundaries have expanded to encompass one-third of
the state. Meanwhile, in March 2012, HLB was detected in a
residential, multi-grafted citrus tree in 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 northern migration is a cause of great
concern, raising CDFA's surveillance, trapping, and analytical
workloads.
According to the University of California, 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. In FY 2015, the federal government
awarded $20 million in grants nationwide to university
researchers and extension projects to aid in the fight against
HLB.
Comments
Funding sources. The CCPDPC is funded by the California citrus
industry and federal grants. Of the $25 million annual budget,
roughly $15 million is funded through the $0.09 per carton
assessment fee and $10 million through the United States
Department of Agriculture. However, this year, the federal
government approved an additional $2 million in funding that
will be used to increase psyllid detection and trapping in the
San Joaquin Valley. The CCPDPC received a one-time $1 million
appropriation from the General Fund in FY 2013-14 (AB 110,
Statutes of 2013), however no other monies from California's
General Fund have been appropriated.
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Budget request. The Senate Budget Subcommittee No. 2 approved a
General Fund allocation of $5 million to CDFA for Asian citrus
psyllid control, where $4.25 million is dedicated for
residential application and $750,000 for an interagency
agreement with the Department of Pesticide Regulation to provide
a consumer product database for a residential level study of the
impacts of neonicotinoid-treated seed and plants sold at the
retail level.
Residential citrus. Over half of all citrus trees in California
are located in residential backyards. 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.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
According to the Senate Appropriations Committee:
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 increase by roughly $5
million annually (special fund).
SUPPORT: (Verified5/31/16)
California Citrus Mutual (source)
Southwest California Legislative Council
Western Growers Association
OPPOSITION: (Verified5/31/16)
None received
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ARGUMENTS IN SUPPORT: According to the author, "SB 822 will
provide much needed funding to continue to combat the spread and
devastating effects of Huanglongbing (HLB) on California's
citrus industry. Florida has already lost approximately $7.8
billion in revenue, 162,000 citrus acres, and 7,513 jobs to HLB
and similar impacts are being seen in Texas. While California's
citrus industry has slowed the spread of the disease by raising
$15 million per year for trapping and treatments, it is not
enough. SB 822 seeks to increase the assessment on citrus
growers to raise up to an additional $5 million [?] to help
protect California's $3 billion citrus industry, 22,000 jobs and
countless residential citrus trees so important to California's
rich history."
Prepared by: Anne Megaro / AGRI. / (916) 651-1508
5/31/16 20:45:33
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