BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
604 (De Leon)
Hearing Date: 4/12/2010 Amended: 3/24/2010
Consultant: Bob Franzoia Policy Vote: NA
_________________________________________________________________
____
BILL SUMMARY: AB 604, an urgency measure, would provide that the
Department of Food and Agriculture is authorized to spend any
funds collected and deposited into the Citrus Disease Management
Account in the Department of Food and Agriculture Fund through
June 30, 2010, thereby making an appropriation.
_________________________________________________________________
____
Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
Limited appropriation Negligible new administrative cost
through Special*
6/30/2010
* Citrus Disease Management Account in the Department of Food
and Agriculture Fund
_________________________________________________________________
____
STAFF COMMENTS: Chapter 426/2009 (AB 281, De Leon) created in
the Department of Food and Agriculture the 17 member California
Citrus Pest and Disease Prevention Committee and the
authorization to develop a statewide citrus specific pest and
disease work plan. This chapter provided for an assessment to
be paid by producers and remitted to the department and
deposited in the Citrus Disease Management Account for the sole
purpose of combating citrus specific pests, diseases, and their
vectors.
During the first marketing season, beginning February 1, 2010,
and ending September 30, 2010, the 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 an assessment
established by the committee that shall not exceed nine cents
($0.09) per carton. A producer of less than 750 cartons,
generally less than what is produced on one acre, shall not be
required to remit the assessment.
Generally, to implement a new fee and begin collecting revenue
requires a minimum of six months. As a result of the chapter's
urgency clause, a statutorily specified assessment and producer
support for commencing activities protecting citrus crops as
soon as possible, the department has collected $460,000 through
1/1/2010 and estimates collecting an additional $1,240,000
through 6/30/2010 ($1,700,000 total for 2009-2010). Absent the
appropriation authority proposed by this bill, this money would
not be available until appropriated by the Budget Act. In
future years, the money will be appropriated by the Budget Act.
Staff notes this bill previously was related to the San Joaquin
Valley Quality Cotton District. All provisions related to the
district have been deleted.