BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 1354 (Galgiani) - Agricultural pest control:  Asian citrus  
          psyllid:  Huanglongbing
          
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          |Version: May 19, 2016           |Policy Vote: AGRI. 5 - 0        |
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          |Urgency: Yes                    |Mandate: No                     |
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          |Hearing Date: May 27, 2016      |Consultant: Robert Ingenito     |
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          This bill meets the criteria for referral to the Suspense File.


          Bill Summary: SB 1354, an urgency measure, would require the  
          California Department of Food and Agriculture (CDFA) to, upon  
          appropriation specific for this purpose, (1) support research  
          activities relating to the Asian citrus psyllid (ACP) and  
          Huanglongbing (HLB), and (2) work with specified stakeholders to  
          establish a process for voluntary tracking of best practices to  
          manage ACP-infested and HLB-infected groves.

          Fiscal Impact: As currently written, the bill would require CDFA  
          to support specified research if funding is appropriated, but  
          does not make an appropriation. Consequently, the bill would  
          result in cost pressures of unknown magnitude, minimally in the  
          hundreds of thousands of dollars annually (General Fund). 

          Background: Citrus is a $2 billion industry in California. The  
          State produces roughly one-third of the nation's fresh citrus on  
          roughly 270,000 acres, and directly employs in excess of than  
          14,000 people.

          Huanglongbing, also known as citrus greening disease, is a  







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          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. According to CDFA, HLB is the most  
          devastating disease of citrus in the world, affecting citrus in  
          Asia, Africa, Brazil, Central America, as well as the United  
          States. 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 causes  
          the disease. Once infected, ACP carries the disease-causing  
          bacteria for life and can transfer the disease when feeding on  
          other citrus trees. 

           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 tree in that state. Studies  
          conclude that HLB-related economic damage in Florida has  
          resulted in a loss of roughly $8 billion and 8,000 jobs over the  
          last five years. Additionally, HLB has since been detected in  
          Georgia, Louisiana, South Carolina, and Texas.

          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.

          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  








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          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.  

          Proposed Law: This bill would require CDFA to, upon  
          appropriation of funds for that purpose, (1) support specified  
          research activities relating to ACP and HLB, and (2) 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.  

          Related Legislation: 

                 SB 822 (Roth, 2016), 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 also would increase the monthly citrus  
               assessment fee from $0.09 to $0.12 per 40 pound carton. The  
               bill is currently on the Suspense File of this Committee.
          
                 SB 1282 (Leno and Allen, 2016 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. The bill is currently on the Suspense  
               File of this Committee.
          
                 AB 571 (Gatto, 2013) This bill would have appropriated  
               $5 million from the General Fund to the Citrus Disease  








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               Management Account within the California Department of Food  
               and Agriculture Fund for the purposes of combating citrus  
               disease or its vectors. The bill was vetoed by the  
               Governor.

          

          Staff Comments: Current law establishes the California Citrus  
          Pest and Disease Prevention Committee (CCPDPC) within CDFA to  
          advise on efforts to prevent and manage citrus pests and  
          diseases. CCPDPC is generally funded by (1) the California  
          citrus industry, and (2) federal grants. 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. The current assessment rate  
          is the statutory maximum of $0.09 per carton. Assessment  
          revenues have averaged $15 million over the last five years, and  
          represent more than half of the total budget for program. As  
          noted above, SB 822 would raise the assessment to $0.12 per  
          40-pound carton; fee revenues would increase by roughly $5  
          million annually, based on 2014-15 production levels.

          Funding (including federal, special funds and state funds)  
          related to ACP and HLB totaled $23.7 million in 2014-15. Funding  
          for 2015-16 is currently estimated to be $26.6 million in  
          2015-16. The budget projects spending of $27.7 in 2016-17. A  
          Senate budget subcommittee recently adopted a proposal to  
          augment CDFA's 2016-17 budget by $5 million for activities  
          related to ACP and HLB, none of which would be available for the  
          purposes of this bill.

          As noted above, this bill would require CDFA, upon the  
          appropriation of funds for that purpose, to support specified  
          research activities relating to ACP and HLB. The bill would also  
          require the department, upon the appropriation of funds for that  
          purpose, to 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  
          for managing ACP and HLB -infected groves, as specified. Funding  
          for such activities has not been appropriated, but would likely  
          cost, at a minimum, hundreds of thousands of dollars annually.


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