BILL ANALYSIS                                                                                                                                                                                                    Ó




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                                    THIRD READING


          Bill No:  SB 1354
          Author:   Galgiani (D)
          Amended:  5/19/16  
          Vote:     27 - Urgency

           SENATE AGRICULTURE COMMITTEE:  5-0, 5/24/16
           AYES:  Galgiani, Cannella, Berryhill, Pan, Wolk

           SENATE APPROPRIATIONS COMMITTEE:  7-0, 5/27/16
           AYES:  Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen

           SUBJECT:   Agricultural pest control:  Asian citrus psyllid:   
                     Huanglongbing


          SOURCE:    Author


          DIGEST:  This bill requires the California Department of Food  
          and Agriculture (CDFA), upon appropriation specific for this  
          purpose, to 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.

          ANALYSIS:   Existing law establishes the California Citrus Pest  
          and Disease Prevention Committee (CCPDPC) within the 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 combating citrus-specific pests  
          and diseases.  This account may also contain funds from federal  








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          and other non-General Fund sources.  (AB 281, De Leon, Chapter  
          426, Statutes of 2009; Food and Agricultural Code §5911 et  
          seq.).

          This bill:

          1)Requires CDFA, upon appropriation of funds for that purpose,  
            to support research activities relating to the ACP and HLB.  
            These activities shall include, but not be limited to, all of  
            the following:

             a)   Finding a cure and/or suppression tactic for HLB.

             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 ACP in  
               priority areas where there is a reasonable expectation of  
               success.

             f)   New horticultural methods to maximize crop production in  
               the presence of HLB.

             g)   Support for new and existing containment research  
               facilities for projects investigating HLB.

          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.  

          Background









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          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 four million tons of citrus on 270,000 acres and  
          provided more than 14,000 jobs.

          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 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  
          two 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  








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          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  
          Crop Research Initiative funding toward citrus disease research  
          over the next five years.  In Fiscal Year (FY) 2015, the federal  
          government awarded $20 million in grants nationwide to  
          university researchers and extension projects to aid in the  
          fight against 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 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 in FY  
          2013-14 (AB 110, Blumenfield, Chapter 20, 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 ACP 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.

          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No










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          According to the Senate Appropriations Committee, as currently  
          written, this bill requires CDFA to support specified research  
          if funding is appropriated, but does not make an appropriation.  
          Consequently, this bill will result in cost pressures of unknown  
          magnitude, minimally in the hundreds of thousands of dollars  
          annually (General Fund).


          SUPPORT:   (Verified5/27/16)


          None received


          OPPOSITION:   (Verified5/27/16)


          None received


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





          Prepared by:  Anne Megaro / AGRI. / (916) 651-1508
          5/28/16 16:46:08








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