BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON AGRICULTURE
                          Senator Cathleen Galgiani, Chair
                                2015 - 2016  Regular 

          Bill No:           SB 1354         Hearing Date: 5/24/16
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          |Author:    |Galgiani                                             |
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          |Version:   |5/19/16                                              |
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          |Urgency:   |Yes                   |Fiscal:    |Yes              |
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          |Consultant:|Anne Megaro                                          |
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            Subject:  Agricultural pest control:  Asian citrus psyllid:   
                                    Huanglongbing

           SUMMARY  :
          This bill would require the California Department of Food and  
          Agriculture to, upon appropriation specific for this purpose,  
          support research activities relating to Asian citrus psyllid  
          (ACP) and Huanglongbing (HLB) and to work with specified  
          stakeholders to establish a process for voluntary tracking of  
          best practices to manage ACP-infested and HLB-infected groves.   
          The information collected shall be used to establish recommended  
          management protocols based on best available science and  
          treatment outcomes.  This bill contains an urgency clause.

           BACKGROUND AND EXISTING  
          LAW  :
          California is the top-producing agricultural state in the nation  
          with $54 billion in agricultural commodity value in 2014.   
          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  







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          combating citrus-specific pests and diseases.  This account may  
          also contain funds from federal and other non-General Fund  
          sources.  (AB 281, 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 disease that causes the plant  
          to produce unpalatable 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  
          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 and now 22 trees located in the surrounding areas have  
          tested positive for HLB. The new finds and the rapid northern  
          migration is a cause of great concern.

          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,  
          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  








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          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.  


           PROPOSED  
          LAW  :

          This bill:

             1)   Requires CDFA to, upon appropriation of funds for that  
               purpose, support research activities relating to the Asian  
               citrus psyllid and Huanglongbing. These activities shall  
               include, but not be limited to, all of the following:
                  a.        Finding a cure and/or suppression tactic for  
                    Huanglongbing
                  b.        Development of early detection techniques to  
                    identify diseased trees
                  c.        Development of resistant rootstocks, scions,  
                    or psyllids
                  d.        Improved psyllid trapping and control methods
                  e.        Expanded biological control availability for  
                    the Asian citrus psyllid in priority areas where there  
                    is a reasonable expectation of success
                  f.        New horticultural methods to maximize crop  
                    production in the presence of Huanglongbing
                  g.        Support for new and existing containment  
                    research facilities for projects investigating  
                    Huanglongbing

             2)   Requires CDFA to, upon appropriation of funds for that  
               purpose, work with county agricultural commissioners, pest  
               control advisors, researchers, and/or the Citrus Research  
               Board to establish a process for voluntary tracking of best  
               practices to manage ACP-infested and HLB-infected groves.   
               The information collected shall be used to establish  
               recommended management protocols based on best available  
               science and treatment outcomes.  


           ARGUMENTS IN SUPPORT:
           According to the author, "California is facing a serious  
          infestation of Asian citrus psyllid, an invasive pest that  








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          threatens to kill every California citrus tree.  As already seen  
          in Florida, this tiny pest and the disease it carries,  
          Huanglongbing, has the ability to destroy both the citrus  
          industry as well as residential citrus trees. SB 1354 seeks to  
          provide solutions to manage ACP and HLB in California by  
          increasing the tools available to combat ACP-infested and  
          HLB-infected trees and groves.  In doing so, California might be  
          able to avoid massive devastation and stop ACP and HLB from  
          killing California's valuable crops and cherished residential  
          citrus trees.  The reality of HLB taking hold in California is  
          chilling, and the state must do what it can to support critical  
          activities that aim to not only mitigate the spread of ACP but  
          to find a cure for HLB."


           COMMENTS  :

           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.  

           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.

           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.  None of these funds are directed for use towards  
          advancing research to find new tools for ACP or HLB control.









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           Informational Hearing:  The Senate Committee on Agriculture held  
          an informational hearing on May 17, 2016, titled "Crisis in the  
          Golden State: Asian Citrus Psyllid's Threat to Destroy  
          California Citrus."  The hearing highlighted the urgent need for  
          additional support to not only mitigate the spread of ACP but to  
          find a cure for HLB, develop critical research and technology,  
          and improve enforcement and compliance with citrus treatment and  
          transportation regulations.

           Research and Technology:   According to expert witnesses at the  
          informational hearing, additional funding is needed to support  
          critical research projects.  For example, California would  
          benefit from the development of early detection techniques of  
          infected trees.  Florida and Texas did not have this technology  
          available, and unidentified HLB-infected trees remained in  
          groves and spread the disease to neighboring trees.  Current  
          technology requires sufficient time (roughly one year) for the  
          disease to build up in the tree to a detectable concentration.   
          However, California is in a position where, if early detection  
          techniques are developed, infected trees (both commercial and  
          residential) could be identified and removed, or treated,  
          immediately.  

          Other critical research needs include finding a cure for HLB,  
          increasing the availability of biological control (release of  
          non-stinging parasitic wasps), developing resistant trees and  
          psyllids, and improving psyllid trapping and control, among  
          others.  Current research projects are funded through USDA and  
          citrus industry grants; however, no General Fund monies are  
          appropriated for this purpose.

           Urgency:   This bill contains an urgency clause given that, due  
          to the rapid infestation of ACP and increasing HLB detections,  
          this bill is needed to provide immediate help to prevent this  
          invasive pest and disease from destroying residential and  
          commercial California citrus trees.

           RELATED  
          LEGISLATION  :

          SB 822 (Roth), of 2016.  Currently in the Senate Appropriations  
          Committee.  This bill would appropriate $5 million from the  
          General Fund to the Citrus Disease Management Account within the  
          California Department of Food and Agriculture Fund for the  
          purpose of combating citrus disease or its vectors.  This bill  








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          would also increase the monthly citrus assessment fee from $0.09  
          to $0.12 per 40 pound carton.

          SB 1282 (Leno and Allen).  Currently in the Senate  
          Appropriations Committee. This bill would require the California  
          Department of Pesticide Regulation to, by July 1, 2017, require  
          labeling of all commercially available seeds and plants sold at  
          retail establishments that have been treated with a  
          neonicotinoid pesticide to include a warning statement and logo  
          regarding the potential for the product to harm bees.  This bill  
          would also, by January 1, 2018, designate neonicotinoid  
          pesticides as restricted materials with the exception for  
          products sold or applied by veterinarians.

          AB 571 (Gatto).  Vetoed, 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.

          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.

           SUPPORT  :
          
          California Citrus Mutual

           OPPOSITION  :
          
          None received

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