BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
281 (De Leon)
Hearing Date: 7/23/2009 Amended: 6/26/2009
Consultant: Bob Franzoia Policy Vote: Food & Ag 4-0
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BILL SUMMARY: AB 281 would create in the Department of Food and
Agriculture (CDFA) the 17 member California Citrus Pest and
Disease Prevention Committee (committee) to be appointed by the
Secretary of Agriculture. This bill would set out the powers
and duties of the committee including the authority to develop a
statewide citrus specific pest and disease work plan that
includes informational programs to educate and train residential
owners of citrus fruit, local communities, groups and
individuals on the prevention of pests and diseases and their
vectors. This bill would provide for a monthly assessment to be
paid by producers and remitted to CDFA and deposited in the
continuously appropriated Citrus Disease Management Account
(CDMA), which the bill would create in the Department of Food
and Agriculture Fund. This bill would provide for a referendum
voting procedure regarding the continued operation of these
provisions. Violation of the assessment requirements on
producers and handlers of citrus fruit would be a misdemeanor.
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Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
Citrus Pest and Disease
Prevention Committee
- CFDA program costsEstimated $500 annually Special*
- prevention programUnknown, major costs ongoing; offset
bySpecial*
assessment revenue
- revenue ($1,360) annually at $0.01 per 40
poundSpecial*
carton (136,000 cartons in 2006-07) until
9/30/2009 potentially increasing
thereafter
up to $0.09 per carton
* Citrus Disease Management Account
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STAFF COMMENTS: Chapter 180/2005 (AB 85, Maze) revised and
renamed as the California Citrus Advisory Committee, an
inspection program adopted in 1994 pertaining to the standards
for orange maturity and citrus freeze damage. Chapter 180/2005
also provided funding for CDFA to provide the citrus industry
with a state crop estimating service and an acreage survey. The
purpose of this program is to protect the industry and the
public from substandard products and to ensure that the
established minimum maturity and quality standards are met.
That committee's purpose is to oversee the implementation of the
inspection program and oversee crop and acreage survey work
preformed under CDFA's California
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AB 281 (De Leon)
Agricultural Statistics Service branch. That committee is
comprised of 12 voting members who are handlers and producers of
citrus in California. Funding for this program is based on a
combined mil fee assessed to every shipped carton of citrus
(minus grapefruit). 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 to perform the acreage and crop surveys
noted above.
SB 140 (Corbett), awaiting hearing in the Assembly
Appropriations Committee, would establish the Citrus Nursery
Stock Pest Cleanliness Program. SB 140 is similar to SB 1466
(Corbett) 2008 which failed in the same committee.
According to the findings and declarations, the purpose of this
bill is to establish an industry funded program to assist in
combating pests and diseases and their vectors, specific to
citrus when found in California. The committee may develop
programs for the surveying, detecting, analyzing, and treatment
of pests and diseases,
During the first marketing season, beginning February 1, 2010,
and ending September 30, 2010, the monthly assessment to be paid
by producers shall be one cent ($0.01) per carton (40 pounds).
Thereafter, in addition to any other assessments, fees, or
charges that may be required, producers shall pay a monthly
assessment established by the committee that shall not exceed
nine cents ($0.09) per carton. In 2007-08, growers produced 37
million cartons of lemons, 69 million cartons of navel oranges,
23 million cartons of Valencia oranges, and 7 million cartons of
tangerines, mandarins, tangelos and tangors. A producer
producing less than 750 cartons, generally less than what is
produced on one acre, shall not be required to remit the
assessment.
Producers disputing the amount of the assessment may file a
claim with the Secretary and shall prove his or her claim by a
preponderance of the evidence. Additionally, no later than June
30, 2013, the Secretary shall hold public hearings to determine
whether the operation of this act should be continued. A
specified voting procedure may be used to determine approval.
The CDMA shall consist of money transferred from the General
Fund and money from federal, industry, and other sources. Money
from federal, industry and other non-General Fund source shall
be available for expenditure without regard to fiscal year for
the sole purpose of combating citrus specific pests, diseases,
and their vectors. Staff notes the reference to General Funds
and non-General Funds appears to conflict. In order for the
Legislature to maintain oversight over a new program and account
and to reduce pressure on the General Fund staff recommends this
bill be amended to delete the continuous appropriation and the
reference to the General Fund (page 4, line 28) (this maintains
the CDMA's access to non General Funds).