BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 604
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 604 (De Leon and Fuller)
          As Amended March 24, 2010
          2/3 vote.  Urgency
           
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          |ASSEMBLY:  |     |(June 1, 2009)  |SENATE: |36-0 |(April 15,     |
          |           |     |                |        |     |2010)          |
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               (vote not relevant)
           
           Original Committee Reference:   AGRI.  
           
          SUMMARY  :  Authorizes the California Department of Food and  
          Agriculture (CDFA) to spend, until June 30, 2010, any monies it  
          has collected since November 2009 on citrus specific pest and  
          disease programs created by AB 281 (De Leon), Chapter 426,  
          Statutes of 2009.   

           The Senate amendments  delete the Assembly version of this bill  
          and instead:

          1)Authorize CDFA to spend, until June 30, 2010, any funds it has  
            collected pursuant to the Citrus Disease Prevention law (Food  
            and Agricultural Code (FAC), Sections 5911-5940) on citrus  
            specific pest and disease programs.

          2)Add an urgency clause, allowing this bill to take effect  
            immediately upon enactment.

           EXISTING LAW  allows for the formation of the California Citrus  
          Pest and Disease Prevention Committee (CCPDPC), preventing and  
          controlling citrus diseases in California; allows the CCPDPC to  
          levy fees within CDFA, with the purpose of preventing and  
          controlling citrus diseases in California; and, allows the  
          CCPDPC to levy fees on citrus producers to pay for citrus  
          disease detection and control programs (FAC, Sections 5911 -  
          5940).

           AS PASSED BY THE ASSEMBLY  , this bill restructured the purpose of  
          the San Joaquin Valley Quality Cotton District's statutes to be  
          "subject to" new requirements, as described below:

          1)Required that on January 1, 2010, the district statutes and  
            regulations become inoperative, except for the following  








                                                                  AB 604
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            provisions:

             a)   The protection of the San Joaquin Valley Cotton Board  
               (Board) actions from liability as a monopoly or  
               combinations in the restraint of trade;

             b)   The protection of the state from acts of the Board or  
               their contracts;

             c)   The creation of the Board, its membership and their  
               election;

             d)   The use of proceeds for enforcement of this chapter,  
               Board functions, cotton testing and related administrative  
               expenses; and,

             e)   The deposit and expenditure of funds.

          1)Permitted the Board, in concurrence with the Secretary of CDFA  
            (Secretary), to periodically determine what specific sections  
            of the district's authorizing chapter and related regulations  
            shall be operative and for what period of time.

          2)Authorized the Board, notwithstanding other provisions of the  
            authorizing chapter and with the Secretary's concurrence, to  
            decide if funds collected will be refunded in whole or part to  
            eligible persons, or transferred to persons or organizations  
            subject to this chapter.

          3)Required the Board to annually report, to the Legislature, the  
            specific actions taken under this new authority and required  
            the Board to notify, prior to taking any actions concerning  
            items 2) and 3) above, in a properly noticed public hearing,  
            all eligible growers and industry members.

           FISCAL EFFECT  :  According to the Senate Committee on  
          Appropriations, this bill has limited appropriation due to  
          negligible new administrative costs through the Citrus Disease  
          Management Account in the Department of Food and Agriculture  
          Fund (special funds).

           COMMENTS  :  AB 281 allows CDFA to collect the assessment on  
          citrus at the beginning of the citrus harvest season in October  
          2009.  The bill did not include language appropriating the money  
          collected for fiscal year 2009-10.  These funds need to be  








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          appropriated to fund industry supported programs aimed at  
          controlling the spread of the Asian Citrus Pysllid (ACP) and  
          preventing the introduction of the devastating disease  
          Huanglongbing (HLB).  Delaying the appropriation of those funds  
          would delay the implementation of these programs, thereby  
          seriously threatening the future survival of California's citrus  
          industry.
          
          The California citrus industry is under threat from several  
          destructive citrus diseases, including Citrus Canker and 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, causing serious  
          economic impacts. 

          In September and October 2008, CDFA placed quarantines on  
          southern San Diego County and southern Imperial County for ACP,  
          a known carrier of HLB.  In the summer of 2009, HLB was detected  
          in Mexico and in a produce shipment at the Fresno International  
          Airport.  The quarantine highlights the threat facing the  
          California citrus industry.
          
           
          Analysis Prepared by  :    Victor Francovich / AGRI. / (916)  
          319-2084 


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