BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 281
                                                                  Page  1

          Date of Hearing:  April 29, 2009

                          ASSEMBLY COMMITTEE ON AGRICULTURE
                              Cathleen Galgiani, Chair
                    AB 281 (De Leon) - As Amended:  April 23, 2009
           
          SUBJECT  :  California Citrus Disease Prevention Committee. 

           SUMMARY  :  Creates the California Citrus Disease Prevention  
          Committee (CCDPC) in the California Department of Food and  
          Agriculture (CDFA), with the purpose of preventing and  
          controlling citrus diseases in California; and, allows the  
          committee to levy fees on citrus producers to pay for citrus  
          disease detection and control programs.  Specifically,  this  
          bill  :  

          1)Provides declaration and general provisions for CCDPC,  
            including stating that CCDPC is necessary for the control of  
            citrus pest and disease.

          2)Provides definitions including describing districts.

          3)Creates CCDPC composed of 14 citrus producers, two citrus  
            nursery operators, and one public member.  Producers are to be  
            appointed to CCDPC by the Secretary (secretary) of CDFA  
            proportionally, based on citrus production in each district,  
            with an attempt to represent all citrus varieties grown in  
            California.  The nursery operators are to be appointed to  
            CCDPC by the secretary, one from northern California and one  
            from southern California.  The public member is to be  
            appointed by the secretary. 

          4)Establishes CCDPC's duties and powers to include but not be  
            limited to the following:

             a)   Conducting informational prevention programs specific to  
               citrus diseases;

             b)   Conducting survey, detection, and analysis programs  
               specific to citrus diseases; 

             c)   Acquire real and personal property necessary to exercise  
               CCDPC's powers.

             d)   Establishes fees to be levied of up to $0.07 per 40  








                                                                  AB 281
                                                                  Page  2

               pound carton of citrus, and creates procedures for  
               collection and reporting, including penalties of 10% for  
               failure to pay with an interest rate on unpaid balances of  
               1.5% per month; 

             e)   Hire personnel to manage and carry out the functions of  
               CCDPC;

             f)   Perform all acts and exercise all powers incidental to  
               the purpose of this chapter; and;

             g)   Allows CCDPC to recommend to the secretary regulation  
               relating to the prevention of citrus disease.

          5)Requires the secretary, within 30 working days of receiving  
            CCDPC 's recommendations, to initiate the rulemaking process,  
            ask CCDPC for additional information, or, if the secretary  
            declines to initiate a rulemaking process, provide a written  
            reason for the decision.

          6)Requires CCDPC to reimburse the secretary for all costs  
            incurred for implementation of CCDPC's recommendations.  

          7)Provides a process for continuing or dissolving of CCDPC,  
            including requiring the secretary, in the 2016-17 citrus  
            marketing season, and then every four years thereafter, to  
            hold one or more public hearings to decide if it should  
            continue, which may result in a referendum.

          8)Requires the secretary, within 90 days of determining the need  
            for a referendum, to establish a list of citrus producers  
            eligible to vote in the referendum.  For the referendum to  
            pass, it must meet the following requirements:

             a)   At least 40% by number of the total producers from the  
               list must participate in the vote and either of the  
               following must occur:

               i)     65% of the producers vote in favor of the referendum  
                 and the producers voting paid a majority of the  
                 assessment in the preceding marketing year by all  
                 producers voting; or,

               ii)    A majority of producers vote in favor of the  
                 referendum and those producers voting paid 65% of the  








                                                                  AB 281
                                                                  Page  3

                 assessment in the preceding marketing year by all  
                 producers voting.

          9)Requires the secretary to establish a period to conduct a  
            referendum for voting of not less than 10 days and not more  
            than 60 days.

           EXISTING LAW  allows for the formation of a citrus pest control  
          district (CPCD) within a county for the purpose of eradication,  
          removal, and prevention of any and all citrus pests;   allows  
          CPCD to consolidate with any other CPCD anywhere in the state;  
          and, allows CPCD to raise fees on citrus producers to accomplish  
          CPCD's goals.  A petition from citrus producers is needed to  
          form or dissolve CPDC.  (Food and Agriculture Code Section  
          8400-8759)

          The California Citrus Advisory Committee (CCAC), within CDFA,  
          makes recommendation to the secretary for citrus inspection or  
          survey procedures.  The CCAC can raise a per carton fee up to:   
          11 mills ($0.011) on navel oranges, 5 mills ($0.005) on lemons,  
          and 6 mills ($0.006) on Valencia oranges and mandarin citrus, to  
          accomplish CCAC goals.  CCAC was created by legislation.  (Food  
          and Agriculture Code Section 48000-48003)

           FISCAL EFFECT  :  Unknown. This bill is keyed fiscal by  
          Legislative Counsel.

           COMMENTS  :  According to the author, the $1.5 billion California  
          citrus industry is under threat from several destructive citrus  
          diseases, including Citrus Canker and Huanglongbing (HLB).  To  
          date there is no known controls for these diseases 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. 

          In September and October 2008, CDFA placed a quarantine on  
          southern San Diego County and southern Imperial County for the  
          Asian citrus psyllid, a known carrier of HLB.  CDFA noted that  
          HLB has not been detected in California.  The quarantine  
          highlights the threat facing the California citrus industry.  

          While the citrus industry is agreed in the need to address this  
          threat facing the industry, it does not appear in agreement as  
          to the structure of CCDPC.  The citrus industry is still  
          discussing this bill and changes are anticipated.








                                                                  AB 281
                                                                  Page  4


          The structure of CCDPC creates a precedent for new authority  
          from other committees within CDFA.  Other committees such as the  
          Egg Shell Advisory Committee, the Wine Grape Inspection Advisory  
          Committee and CCAC have the authority to advise the secretary on  
          specific policy issues and are created by statute without a vote  
          of those affected.  None of these current committees have the  
          power to implement policy or action on their own. CCDPC both  
          advises the secretary and is allowed to develop and implement  
          pest detection programs.
           
          The powers of CCDPC are closer to those of a pest control  
          district or a marketing commission.  In forming or dissolving a  
          pest control district or marketing commission, a petition or  
          referendum of the constituency affected by the district of  
          commission is required.  In many cases the dissolution of a  
          district or commission is reviewed after a period of time to see  
          if the district or commission is still needed.  CCDPC is created  
          in statute without a vote but does have a four year review as to  
          the need of CCDPC.
           
          The Committee may wish to consider, in creating CCDPC, should  
          its powers resemble that of a committee within CDFA, where a  
          vote has not been required to create a committee, or does it  
          need to conform more to those of a pest control district or a  
          marketing commission, where a vote is required to create a pest  
          control district or marketing commission..

           RELATED LEGISLATION  :  SB 140 (Corbett) of 2009 directs CDFA to  
          implement a Citrus Nursery Stock Pest Cleanliness program, with  
          the purpose of protecting the California Citrus Nursery Stock  
          industry from pests and disease.

           REGISTERED SUPPORT / OPPOSITION  :  

           Support 
           
          Citrus Mutual (sponsor)
          California Association of Nurseries and Garden Centers
          Western Growers

           Opposition 
           
          None on file.
           








                                                                 AB 281
                                                                  Page  5

          Analysis Prepared by  :    Victor Francovich / AGRI. / (916)  
          319-2084