BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 281
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          ASSEMBLY THIRD READING
          AB 281 (De Leon)
          As Amended  May 4, 2009
          Majority vote 

           AGRICULTURE         8-0         APPROPRIATIONS      17-0        
           
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          |Ayes:|Galgiani, Tom Berryhill,  |Ayes:|De Leon, Nielsen,         |
          |     |Conway, Fuller, Ma,       |     |Ammiano,                  |
          |     |Mendoza, Yamada,  Bonnie  |     |Charles Calderon, Davis,  |
          |     |Lowenthal                 |     |Duvall, Fuentes, Hall,    |
          |     |                          |     |Harkey, Miller,           |
          |     |                          |     |John A. Perez, Price,     |
          |     |                          |     |Skinner, Solorio, Audra   |
          |     |                          |     |Strickland, Torlakson,    |
          |     |                          |     |Krekorian                 |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Creates the California Citrus Disease Prevention  
          Committee (CCDPC) within the California Department of Food and  
          Agriculture (CDFA), with the purpose of preventing and  
          controlling citrus diseases in California, and allows the CCDPC  
          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 pests and diseases, and definitions including  
            describing districts.

          2)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. 

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








                                                                  AB 281
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             a)   Conduct informational prevention programs specific to  
               citrus diseases;

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

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

             d)   Establish fees to be levied of up to $0.07 per a 40  
               pound carton of citrus, and create 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)   Allow CCDPC to recommend to the Secretary regulations  
               relating to the prevention of citrus disease.

          4)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.

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

          6)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.

           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;  








                                                                  AB 281
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          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 recommendations to the Secretary for citrus inspections or  
          survey procedures.  The CCAC may impose 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  :  According to the Assembly Appropriations  
          Committee, cost of this bill is borne by the citrus industry and  
          can range from a total of $1.6 million to $11 Million.

           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.
           
           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 diseases.
           

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


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