BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 281
                                                                  Page  1

          Date of Hearing:   May 13, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                     AB 281 (De Leon) - As Amended:  May 4, 2009 

          Policy Committee:                              AgricultureVote:8  
          - 0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill creates the California Citrus Disease Prevention  
          Committee (CDPC) within the California Department of Food and  
          Agriculture (CDFA). Specifically, this bill: 

          1)Requires the secretary of the California Department of Food  
            and Agriculture (CDFA), within 30 days of the effective date  
            of this legislation, to appoint the initial members of the  
            committee.

          2)Provides that the CDPC shall be composed of 14 producer  
            representatives, two nursery operators, one public member, and  
            various ex officio members, as appropriate.

          3)Authorizes an additional industry assessment in the first  
            marketing season of up to one cent per carton (40 pounds) for  
            citrus handled, to be paid by producers. Thereafter, the  
            assessment will be a maximum of seven cents per carton.

          4)Requires the funds collected through the assessment to be used  
            to purchase equipment for detecting, controlling, and testing  
            for citrus diseases, to cover any costs of the committee,  
            including workload costs associated with CDFA administering  
            the committee.

          5)Requires the funds to be deposited in the Department of Food  
            and Agriculture Fund or in the Agriculture Trust Fund.


           FISCAL EFFECT  









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          The maximum assessment for the first marketing season will  
          generate approximately $1.6 million in revenue for the CDPC  
          based on a $0.01 per carton assessment for the first growing  
          season.  Annually thereafter, the CDPC's operating revenue will  
          be approximately $11 million, based on a $0.07 per carton  
          maximum assessment. 

           COMMENTS  

           1)Purpose  . 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 are 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.  However, the  
            quarantine highlights the threat facing the California citrus  
            industry.  
           
          2)California Citrus Industry  . California's citrus industry ranks  
            second in the United States after Florida. California's total  
            citrus production averaged 3.2 million tons per season over  
            the past three seasons, about 24 % of the total. Oranges, on  
            average, accounted for 66% of the state's citrus crop, lemons  
            25%, grapefruits 6%, and tangerines/clementines 3%. While  
            California produces 24% of the nation's oranges, its crop  
            accounts for approximately 80% of those going to the  
            fresh-market.

           3)California Citrus Advisory Committee  . In 2005, the California  
            Citrus Industry sponsored legislation establishing a continued  
            inspection program pertaining to the standards for orange  
            maturity and citrus freeze damage. The legislation also allows  
            funding for the Department to provide the citrus industry with  
            a state crop estimating service and an acreage survey. The  
            citrus commodities that are affected by this legislation are  
            Navel oranges, Valencia oranges, lemons, and mandarin citrus  
            varieties. The new legislation amends the legislation  
            developed in 1994 that established the original program. (The  
            Navel and Valencia Program).








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            The purpose of this program is to protect the industry and the  
            general public from substandard product and to insure that the  
            established minimum maturity and quality standards are met, as  
            well as to provide the industry with current and accurate data  
            regarding the states citrus acreage and citrus crop  
            information. 

            The California Citrus Advisory Committee's purpose is to  
            oversee the implementation of the inspection program and  
            oversee crop and acreage survey work preformed through CASS  
            (California Agricultural Statistics Service). This committee  
            also makes recommendations to the Secretary on matters  
            pertaining to their industry. The committee is comprised of 12  
            voting members who are handlers and producers of citrus in  
            California.

            Legislation specifies inspection programs are to be conducted  
            in nine counties by county agricultural commissioners. The  
            nine counties are: Fresno, Kern, Madera, Orange, Riverside,  
            San Bernardino, Santa Clara, Tulare, and Ventura. 

            Funding for this program is based on a fee (between $0.005 and  
            $0.011) assessed to every shipped carton of oranges, mandarin  
            citrus varieties and lemons. The assessments collected are  
            used to cover county agricultural commissioners' costs for the  
            inspection program, maintain a reserve to be used in the event  
            of a freeze and provide funding for CASS to perform acreage  
            and crop surveys. 

           4)Related Legislation  . AB 443 (Galgiani) strengthens CDFA's  
            ability to identify pests and diseases that threaten the apple  
            industry, and establishes penalties for unlawful handling of  
            apples and failure to provide required records and reports.  
            This bill is currently on this committee's suspense file. 

            In this session, SB 140 (Corbett) 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. That bill is currently  
            pending in the Senate Appropriations Committee.

            In 2008, SB 1466 (Corbett) would have required CDFA to  
            establish by January 1, 2010, a Citrus Nursery Stock Pest  
            Cleanliness Program. That bill was held on this committee's  








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            suspense fill.  It was removed from this committee pursuant to  
            the suspension of Assembly Rule 96.  It subsequently died on  
            the Assembly's third reading file. 








           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081