BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 443
                                                                  Page  1

          Date of Hearing:   May 6, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                   AB 443 (Galgiani) - As Amended:  April 20, 2009 

          Policy Committee:                              AgricultureVote:8  
          - 0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill strengthens the Department of Food and Agriculture's  
          (CDFA's) ability to identify pests and diseases that threaten  
          the apple industry, and establishes penalties for unlawful  
          handling of apples and failure to provide required records and  
          reports.  Specifically, this bill:

          1)Requires the CDFA Secretary to appoint 10-member apple  
            committee comprised of four producers, four handlers, a  
            licensed pest control advisor, and a representative from the  
            University of California.

          2)Allows the committee to designate apple pests and diseases  
            identified after January 1, 2007, and to recommend CDFA  
            regulations for handling apples from designated pest areas in  
            other states.

          3)Requires the CDFA Secretary to establish a scientific advisory  
            panel to advise the committee and the secretary on apple pest  
            and disease biology, life cycle, range, reproduction, and  
            known control methods.

          4)Allows CDFA to investigate complaints, inspect apples, seize  
            and destroy apples, and impose civil penalties against persons  
            who unlawfully handle apples from designated pest areas or who  
            violate other regulatory provisions.

           FISCAL EFFECT  

          1)Unknown on-going costs between $500,000 and $2.5 million in  
            special funds collected through an industry assessment for  








                                                                  AB 443
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            CDFA to establish and support the activities of the scientific  
            advisory panel.

          2)The California Apple Commission currently has a budget of  
            $750,000 per year that is completely funded through industry  
            assessments.

           COMMENTS  

           1)Purpose  . This bill is sponsored by the California Apple  
            Commission to enhance CDFA's ability to protect the quality  
            and integrity of the California apple industry.  By  
            designating apple production areas in other parts of the  
            United States that are affected by apple pests and diseases,  
            this bill establishes a process to reduce the possibility that  
            these pests and diseases will adversely affect the industry  
            and consumer prices for apples.

           2)Background  .  While apples have been grown in California for  
            well over a century, only in the last two decades has  
            California emerged as a major commercial producer of apples.   
            Over 20 varieties of apples are produced by more than 450  
            growers in the state, primarily in the Central Valley and  
            along the Central Coast.  California ranks fifth in domestic  
            apple production, behind Washington, New York, Michigan, and  
            Pennsylvania, producing 3.45 million boxes for the 2005-06  
            season.  Major apple importers to the California market  
            include China, Argentina, Chile and New Zealand.

            Major apple pests include the Apple Maggot, the Codling Moth,  
            the Cribrate Weevil, the Green Apple Aphid, Lygus Bugs, and  
            Stink Bugs.  Apple diseases include Apple Scab, Armillaria  
            Root Rot, Bacterial Blossom Blast, European Canker, Fire  
            Blight, Root and Crown Rot, and Powdery Mildew.

            Several Light Brown Apple Moths have recently been detected in  
            several Bay Area counties and the Counties of Monterey and  
            Santa Cruz.  This moth destroys, stunts or deforms young  
            seedlings, spoils the appearance of ornamental plants, and  
            injures deciduous fruit tree crops, citrus and grapes.  CDFA  
            has established quarantine areas in these counties and the  
            U.S. Department of Agriculture recently acted to restrict the  
            interstate movement of nursery stock, cut flowers and greenery  
            from these counties and the State of Hawaii to prevent the  
            spread of the moth.








                                                                  AB 443
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           3)Related Legislation  . AB 1021 (Berryhill and Galgiani) a  
            substantially similar bill was introduced in the 2007-08  
            session.

            That bill was vetoed due to the late passage of the 2008-09  
            budget.  In the message the governor wrote, "I am only signing  
            bills that are the highest priority for California. This bill  
            does not meet that standard and I cannot sign it at this  
            time."

            AB 2425 (Matthews) of 2006 would have also established an  
            apple committee and scientific advisory panel similar to this  
            bill.  AB 2425, which failed in the Senate Agriculture  
            Committee, would have also imposed a 1.25 cent per pound  
            assessment to be paid to the California Apple Commission by  
            the first in-state handler of apples originating from  
            designated pest areas in other parts of the country to support  
            the committee and CDFA's related actions.
           

           
           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081