BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 822  


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          Date of Hearing:  August 3, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          SB 822  
          (Roth) - As Amended May 31, 2016


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          |Policy       |Agriculture                    |Vote:|9 - 0        |
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          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  


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          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