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 ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: May 19, 2016 |Policy Vote: AGRI. 5 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: Yes |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 27, 2016 |Consultant: Robert Ingenito | | | | ----------------------------------------------------------------- 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 SB 1354 (Galgiani) Page 1 of ? 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 SB 1354 (Galgiani) Page 2 of ? 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 SB 1354 (Galgiani) Page 3 of ? 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. -- END -- SB 1354 (Galgiani) Page 4 of ?