BILL ANALYSIS Ó SB 822 Page 1 Date of Hearing: August 3, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair SB 822 (Roth) - As Amended May 31, 2016 ----------------------------------------------------------------- |Policy |Agriculture |Vote:|9 - 0 | |Committee: | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill increases the maximum monthly citrus assessment fee to be deposited into the Citrus Disease Management Account from $0.09 to $0.12 cents per 40 pound carton of citrus fruit FISCAL EFFECT: Estimated revenue increase of up to approximately $5 million annually from increased assessments fees (Special Fund). SB 822 Page 2 COMMENTS: 1)Purpose. According to the author, SB 822 will provide necessary funding to continue to combat the spread of a harmful disease and help protect California's citrus industry. 2)HLB and ACP. Huanglongbing, 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. Infected plants must be removed and destroyed in order to prevent further spread of HLB. HLB is spread by the Asian citrus psyllid, 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 cause the disease. Once infected, ACP carries the disease-causing bacteria for life and can transfer the disease when feeding on other citrus trees. 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 22 trees located in the surrounding areas. The new finds and the rapid migration of the disease-carrying insect have increased CDFA's surveillance, trapping, and analytical workloads. SB 822 Page 3 3)Current industry assessments. 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 (GF) 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. Analysis Prepared by:Luke Reidenbach / APPR. / (916) 319-2081