BILL ANALYSIS                                                                                                                                                                                                    



                        SENATE FOOD and AGRICULTURE COMMITTEE
                            Senator Dean Florez, Chairman

          BILL NO:    AB 281                    HEARING:  7/7/09
          AUTHOR:   De Leon                     FISCAL:  Yes
          VERSION:  6/26/09                     CONSULTANT:  John Chandler
          
            Citrus disease prevention: California Citrus Pest and Disease  
                                Prevention Committee

          BACKGROUND AND EXISTING LAW

          The California Citrus Advisory Committee (CCAC) within the  
          California Department of Food and Agriculture (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.  

          California law authorizes the formation of pest control  
          districts (PCD) within a county to help with control of  
          potential pests.  PCDs are granted broad powers to raise  
          assessments; eradicate, remove, or prevent citrus pests; and  
          enter property for inspection.  In order to form a PCD, a county  
          petition signed by 51 percent of the land in the district must  
          be filed with the county supervisors who will then hold a  
          hearing on the formation of the district.  In the Central  
          Valley, a number of citrus-growing counties have formed a PCD to  
          combat citrus tristeza virus.

          In September and October of 2008, discoveries of the Asian  
          Citrus Psyllid triggered quarantines and eradication programs in  
          Southern California.  The Asian Citrus Psyllid is a known vector  
          of Huanglongbing (HLB), citrus greening, which has contributed  
          to the decline of the Florida citrus industry.  

          PROPOSED LAW

          AB 281 will do the following:

                 Establish the Citrus Disease Management Account for the  
               purposes of combating    citrus-specific pests and  
               diseases.

                 Establish the California Citrus Pests and Disease  
               Prevention Committee (committee) with 17 members appointed  
               by CDFA and made up of 14 producers from designated  
               districts across the state and representing different  




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               varieties of citrus, one public member, and two citrus  
               nursery operators from northern California and southern  
               California areas.  All members will serve five-year terms.

                 Specify that the committee shall meet at the request of  
               CDFA or by request of three members of the committee.  

                 Authorize the committee to develop a statewide  
               citrus-specific pest and disease work plan which will  
               initiate informational programs to educate and train  
               residential citrus owners on citrus pest and disease  
               prevention, and surveying and detecting and treatment  
               analysis for citrus pest and disease.

                 Authorize the committee to make recommendations to CDFA  
               on annual assessment rate, annual budget, expenses needed  
               to implement the statewide work plan, fee amounts, and  
               adoption of regulations.

                 Specify that CDFA has 30 days to respond to committee  
               regulations by initiating rulemaking, declining the  
               recommendation, or requesting further information from the  
               committee.  

                 Require the committee to reimburse CDFA for all expenses  
               associated with administration of the committee,  
               enforcement activities, and regulatory recommendations of  
               the statewide work plan.

                 Establish a monthly assessment on citrus producers of  
               $0.01 per 40-pound carton, collected from the producer by  
               the first handler and deposited in the Citrus Disease  
               Management Account for citrus disease prevention.  The  
               assessment may not exceed $0.09 per 40-pound carton.   
               Producers of 750 cartons or less are exempt from the  
               assessment.  Failure to pay the assessment may result in a  
               10% penalty and 1.5% interest per month.  

                 Require CDFA to hold a public hearing by June 30, 2013,  
               and every four years thereafter to determine if there is  
               substantial opposition to the citrus disease prevention  
               program.  If opposition is determined, CDFA must hold a  
               referendum of assessment payers on the continuation of the  
               program.  

          COMMENTS






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          1.Proponents state the pests and diseases like HLB present a  
            clear and present danger to the California citrus industry.   
            AB 281 will develop in California an outreach program for all  
            citrus producers, both residential and production, to help  
            with citrus pest and disease prevention in California.  
            Further, AB 281 will provide much needed industry funding for  
            pest prevention programs in California citrus.  

          2.The California Citrus Disease Prevention Committee has a  
            number of responsibilities under AB 281, including annual  
            review of assessments and program effectiveness and other  
            duties.  With such responsibility over the finances of this  
            program, it would be important that the committee meet at  
            least once per year.  However, currently, they are only  
            required to meet at the request of CDFA or at the request of  
            three members of the Citrus Disease Prevention Committee.  The  
            committee may wish to consider if the bill should include a  
            provision that the California Citrus Disease Prevention  
            Committee meet at least once per year.

          3.AB 281 specifies at least five geographical districts  
            throughout the state from which California Citrus Disease  
            Prevention Committee producer members shall be drawn.  While  
            the California citrus industry is currently a $1.8 billion  
            industry, it is inevitable that the industry will continue to  
            evolve over time as growing areas shift around the state.  The  
            committee may wish to consider if there should be some  
            mechanism for the district boundaries to be shifted as the  
            citrus industry evolves.

          4.A new assessment of $0.01 per carton, to a maximum of $0.09  
            per carton, will be levied on the citrus industry with the  
            passage of AB 281.  This bill only requires a referendum of  
            the citrus industry by 2013 rather than prior to  
            implementation.  It would seem that if the Citrus Disease  
            Prevention Committee and CDFA are going to be assessing the  
            industry to pay for these programs, it would be helpful to  
            have total signoff from the industry before producers are  
            handed new bills for a new industry committee.  The committee  
            may wish to consider if the enactment of AB 281 should include  
            a referendum of the industry.   

          PRIOR ACTIONS

          Assembly Floor 77-0
          Assembly Appropriations17-0
          Assembly Agriculture  8-0





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          SUPPORT
          
          California Citrus Mutual

          OPPOSITION
          
          None received