BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 281
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 281 (De Leon)
          As Amended  September 2, 2009
          2/3 vote.  Urgency
           
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          |ASSEMBLY:  |77-0 |(June 1, 2009)  |SENATE: |38-0 |(September 4,  |
          |           |     |                |        |     |2009)          |
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           Original Committee Reference:   AGRI.

          SUMMARY  :  Creates the California Citrus Pest and Disease  
          Prevention Committee (CCPDPC) preventing and controlling citrus  
          diseases in California, and allows the CCPDPC to levy fees  
          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.  Contains an urgency clause, allowing this bill to  
          take effect immediately upon enactment.

           The Senate amendments  :

          1)Add citrus pests to the preview of CCPDPC.

          2)Create a Citrus Disease Management Account within CDFA, funded  
            with funds from federal, industry and other sources.  

          3)Clarify rules governing CCPDPC.

          4)Increase from $0.07 to $0.09 the maximum per carton assessment  
            CCPDPC may impose on citrus producers.

          5)Exempt producers producing less than 750 40-pound cartons from  
            CCPDPC fees. 

           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;  
          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 (FAC)  
          8400-8759)








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          The California Citrus Advisory Committee (CCAC), within CDFA,  
          makes recommendations to the Secretary of CDFA for citrus  
          inspections or survey procedures.  CCAC may impose a per carton  
          fee up to 11 mills ($0.011) on navel oranges, five mills  
          ($0.005) on lemons, and six mills ($0.006) on Valencia oranges  
          and Mandarin citrus, to accomplish CCAC goals.  CCAC was created  
          by legislation.  (FAC 48000-48003)

           AS PASSED IN THE ASSEMBLY  , this bill was substantially similar  
          to the version passed by the Senate.

           FISCAL EFFECT  :  According to the Senate Committee on  
          Appropriations, the estimated CDFA program cost is $500,000  
          annually, with unknown costs for the prevention program from  
          assessment revenues estimated to be $1.36 ($0.01/carton) million  
          until September 30, 2009, after which it could reach up to an  
          estimated $12.24 million ($0.09/carton).
           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 control 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.  This month HLB has  
          been detected in Mexico and in a shipment at the Fresno Airport.  
           The quarantine highlights the threat facing the California  
          citrus industry.

          The funding mechanism of CCPDPC in this bill is similar to the  
          funding mechanism for the glassy winged sharpshooter and the  
          Pierce's Disease prevention program.  The use of special and  
          industry funds to combat wine grape pests and diseases in  
          California are considered a success by the wine grape 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.








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


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