BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   AB 281|
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                                 THIRD READING


          Bill No:  AB 281
          Author:   De Leon (D), et al
          Amended:  8/26/09 in Senate
          Vote:     21

           
           SENATE FOOD AND AGRICULTURE COMMITTEE  :  4-0, 7/7/09
          AYES:  Florez, Maldonado, Hancock, Hollingsworth
          NO VOTE RECORDED:  Pavley
           
          SENATE APPROPRIATIONS COMMITTEE  :  13-0, 7/23/09
          AYES:  Kehoe, Cox, Corbett, Denham, Hancock, Leno, Oropeza,  
            Price, Runner, Walters, Wolk, Wyland, Yee

           ASSEMBLY FLOOR  :  77-0, 6/1/09 - See last page for vote


           SUBJECT  :    Citrus disease prevention: California Citrus  
          Pest and Disease
                      Prevention Committee

           SOURCE  :     California Citrus Mutual


           DIGEST  :    This bill creates the California Citrus Disease  
          Prevention Committee within the Department of Food and  
          Agriculture for the purpose of preventing and controlling  
          citrus disease in California, and allows the committee to  
          levy fees on citrus producers to pay for citrus disease  
          detection and control programs.

           Senate Floor Amendments  of 8/26/09 (1) make numerous  
          technical clean-up changes and clarifications; (2)  
                                                           CONTINUED





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          establish a "Technical Advisory Committee" to develop a  
          citrus tristeza virus effective plan; (3) require the  
          California Citrus Pest and Disease Prevention Committee and  
          the Department of Food and Agriculture to enter into a  
          memorandum of understanding with citrus pest control  
          districts by July 1, 2011, for the purpose of funding the  
          implementation of the citrus tristeza virus effective plan.

           ANALYSIS  :    The California Citrus Advisory Committee  
          (CCAC) with the Department of Food and Agriculture (DFA)  
          makes recommendations to the Secretary for citrus  
          inspection or survey procedures.  The CCAC can raise a  
          per-carton fee up to 11 mills ($0.011) on naval oranges,  
          five mills ($0.005) on lemons, and six mills ($0.006) on  
          Valencia oranges and mandarin citrus to accomplish CCAC  
          goals.
           
          Existing law authorizes the formation of pest control  
          districts within a county to help with control of potential  
          pests.  Pest control districts are granted broad powers to  
          raise assessments; eradicate, remove, or prevent citrus  
          pests; and enter property for inspection.  In order to form  
          a pest control district, a county petition signed by 51  
          percent of 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 pest control  
          district to combat the 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.

          This bill:

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

           2.Establishes the California Citrus Pests and Disease  
             Prevention  Committee (committee) with 17 members  







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             appointed by DFA and made up of 14 producers from  
             designated districts across the state and representing  
             different varieties of citrus, one public member, and  
             two citrus nursery operators from the northern  
             California and southern California areas.  All members  
             will serve four-year terms.

           3.Specifies that the committee shall meet at the request  
             of DFA or by a request of three members of the  
             committee.

           4.Authorizes 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.

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

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

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

           8.Establishes 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 percent penalty and 1.5 percent interest per month.

           9.Requires DFA to hold a public hearing by June 30, 2013,  
             and every four years thereafter, to determine if there  







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             is substantial opposition to the citrus disease  
             prevention program.  If opposition is determined, DFA  
             must hold a referendum of producers on the continuation  
             of the program.

          10.Requires the committee, no later than July 1, 2011, in  
             consultation with DFA, to enter into a memorandum of  
             understanding with citrus pest control districts  
             responsible for funding citrus tristeza virus prevention  
             activities.

          11.Specifies that the memorandum of understanding shall  
             include, but not be limited to, the following:

             A.    Language providing that the program, protocols,  
                and implementation for the citrus tristeza virus  
                effective plan will be developed and approved b the  
                Technical Advisory Committee, or its successor, in  
                consultation with the committee.

             B.    Provision for the funding required to implement  
                the citrus tristeza virus effective plan.

          12.Provides that in the event the committee and the pest  
             control districts do not agree on the terms of the  
             memorandum of understanding, the citrus pest control  
             districts shall conduct an election to determine which  
             entity shall provide funding for the citrus tristeza  
             virus effective plan.

          13.Stipulates that the ballot shall ask landowners within  
             the citrus pest control districts to select either:

             A.    the California Citrus Disease Management Committee  
                and the DFA through the Citrus Disease Management  
                Account to fund the citrus tristeza virus effective  
                plan; or

             B.    the citrus pest control districts as the funding  
                entity of the citrus tristeza virus effective plan.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes








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          According to the Senate Appropriations Committee:

                          Fiscal Impact (in thousands)

            Major Provisions        2009-10     2010-11     2011-12      Fund  

           Citrus Pest and Disease         
           Prevention Committee
            - DFA program costs            Estimated $500  
           annuallySpecial*

            - prevention program           Unknown, major costs  
           ongoing;             Special*
                                offset by assessment revenue

            - revenue           ($1,360) annually at $0.01 per  
           40-pound             Special*
                                carton (136,000 cartons in 2006-07  
           until 
                                9/30/09 potentially increasing  
           thereafter 
                                up to $0.09 per carton

           * Citrus Disease Management Account

           SUPPORT  :   (Verified  8/26/09)

          California Citrus Mutual (source)
          Western Growers


           ARGUMENTS IN SUPPORT  :    Proponents state the pests and  
          diseases like HLB present a clear and present danger to the  
          California citrus industry.  This bill will develop in  
          California an outreach program for all citrus producers,  
          both residential and production, to help with citrus pests  
          and disease prevention in California.  Further, this bill  
          provides much needed industry funding for pest prevention  
          programs in California citrus.


           ASSEMBLY FLOOR  : 
          AYES:  Adams, Ammiano, Anderson, Arambula, Beall, Bill  
            Berryhill, Tom Berryhill, Blakeslee, Blumenfield,  







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            Brownley, Buchanan, Caballero, Charles Calderon, Carter,  
            Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon,  
            DeVore, Duvall, Emmerson, Eng, Evans, Feuer, Fletcher,  
            Fong, Fuentes, Fuller, Furutani, Gaines, Galgiani,  
            Garrick, Gilmore, Hagman, Hall, Harkey, Hayashi,  
            Hernandez, Hill, Huber, Huffman, Jeffries, Jones,  
            Krekorian, Lieu, Logue, Bonnie Lowenthal, Ma, Mendoza,  
            Miller, Monning, Nava, Nestande, Niello, Nielsen, John A.  
            Perez, V. Manuel Perez, Portantino, Ruskin, Salas,  
            Saldana, Silva, Skinner, Smyth, Solorio, Audra  
            Strickland, Swanson, Torlakson, Torres, Torrico, Tran,  
            Villines, Yamada, Bass
          NO VOTE RECORDED:  Block, Knight, Price


          TSM:cm  8/28/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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