BILL ANALYSIS Ó SB 822 Page 1 SENATE THIRD READING SB 822 (Roth) As Amended May 31, 2016 Majority vote SENATE VOTE: 38-1 ------------------------------------------------------------------ |Committee |Votes|Ayes |Noes | | | | | | | | | | | | | | | | |----------------+-----+----------------------+--------------------| |Agriculture |9-0 |Dodd, Mathis, Eggman, | | | | |Gray, Grove, Irwin, | | | | |Jones-Sawyer, Quirk, | | | | |Salas | | | | | | | |----------------+-----+----------------------+--------------------| |Appropriations |20-0 |Gonzalez, Bigelow, | | | | |Bloom, Bonilla, | | | | |Bonta, Calderon, | | | | |Chang, Daly, Eggman, | | | | |Gallagher, Eduardo | | | | |Garcia, Holden, | | | | |Jones, Obernolte, | | | | |Quirk, Santiago, | | | | |Wagner, Weber, Wood, | | | | |Chau | | | | | | | SB 822 Page 2 | | | | | ------------------------------------------------------------------ SUMMARY: Increases the maximum monthly citrus assessment fee from $0.09 to $0.12 cents per 40 pound carton. 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 (Account) for the sole purpose of combating citrus-specific pests and diseases. The 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. FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill has an estimated revenue increase of up to approximately $5 million annually from increased assessments fees (Special Fund). COMMENTS: Citrus is a $2 billion industry in the State of California. California produces 82% of the United States' fresh citrus and directly employs more than 14,000 people. It contributes an additional $1.2 billion in economic value to the state and supports another 10,000 jobs. In March of 2012, Huanglongbing (HLB) was found in a Los Angeles-area backyard. HLB is a bacterial plant disease that destroys the production, appearance and value of citrus trees, ruining the citrus. HLB is spread mainly by the Asian Citrus SB 822 Page 3 Psyllid (ACP). To date there is no known controls for HLB other than removing and destroying infected groves. 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 trees in that state. 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 USDA. 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 (GF) in Fiscal Year 2013-14; however, no other monies from California's GF have been appropriated. 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. According to the author, this bill will provide much needed funding to continue to combat the spread and devastating effects of HLB on California's citrus industry. RELATED LEGISLATIONAB 862 (Agriculture), Chapter 374, Statutes of 2015, specified that all expenditures incurred by CDFA be reimbursed by the Citrus Disease Management Account. SB 1018 (De León), Chapter 924, Statutes of 2014, required the Secretary of CDFA to notify the CCPDPC for any changes to SB 822 Page 4 program activities or increases in expenditures, and specified that only reasonable, rather than all, expenditures incurred by CDFA be reimbursed by the program's funding account. AB 571 (Gatto) of 2013, would have appropriated $5 million from the GF to the Citrus Disease Management Account within the CDFA Fund for the purposes of combating citrus disease or its vectors. This bill was vetoed by the Governor. AB 604 (De León), Chapter 17, Statutes of 2010, authorized 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, established CCPDPC 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-GF sources. Analysis Prepared by: Victor Francovich / AGRI. / (916) 319-2084 FN: 0003976 SB 822 Page 5