BILL ANALYSIS                                                                                                                                                                                                    



                        SENATE FOOD and AGRICULTURE COMMITTEE
                            Senator Dean Florez, Chairman

          BILL NO:    SB 140                    HEARING:  4/21/09
          AUTHOR:   Corbett                     FISCAL:  Yes
          VERSION:  4/15/09                     CONSULTANT:  John Chandler
          
               Citrus Nursery Stock Pest Cleanliness Program. URGENCY

          BACKGROUND AND EXISTING LAW

          The California Department of Food and Agriculture (CDFA) is  
          responsible for licensing nurseries in California.  Licensed  
          nurseries must pay a fee of no less than $180 for administering  
          nursery regulations and nursery stock grades and standards.   

          Existing law requires CDFA to provide for periodic inspections  
          of nurseries and may prescribe standards of cleanliness for  
          nursery stock which is produced or sold in California.  

          In the 1940s and 1950s, approximately 3 million citrus trees on  
          sour orange rootstock were killed by citrus tristeza virus in  
          Southern California alone.  Tristeza virus is spread through  
          budding and grafting or by aphids feeding on citrus.

          As required by the Citrus Tristeza Virus Interior Quarantine,  
          any tree from which buds, cuttings, or scions will be taken must  
          be tested for tristeza before using the propagative material.  

          Any tree that is tested and found negative for tristeza is  
          eligible to be a registered tree.  The tree is then issued a  
          metal tag with a unique identifying number.  CDFA maintains an  
          inventory of all citrus trees that have ever been registered.   
          Every year CDFA sends each nursery an inventory of their  
          registered trees, and they choose which ones to have tested for  
          tristeza.  If a tree tests positive for tristeza, registration  
          is cancelled.  The tree remains listed in the database but is  
          "hidden" so it never shows up on the grower's inventory again.   
          A tree can test positive for other diseases and remain  
          registered. 

          Periodically, citrus nurseries will test candidate trees for  
          psorosis and viroids.  Nurseries are given an annual allotment  
          of 20 percent of their registered trees to test for these  
          diseases.  The 20 percent limitation is due to limited funding  
          and greenhouse space to house the indicator trees used in the  
          testing.  Theoretically, 100 percent of all trees in a nursery  
          would then be tested every five years.  However, since growers  
          can move trees in and out of the program, there's no guarantee  




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          that all trees will be tested every five years.

          CDFA staff oversees the collection of samples for all the  
          disease testing, compiles the test results, and reports the  
          results to the grower and the agricultural commissioner's office  
          in the respective county.

          SB 1466 (Corbett) of 2008 would have required California  
          Department of Food and Agriculture to develop the Citrus Nursery  
          Stock Pest Cleanliness Program by January 1, 2010.   Status:  Died  
          in Assembly Appropriations Committee on Suspense.

          PROPOSED LAW

          SB 140 is an urgency bill that will do the following:

                 Require CDFA to develop a Citrus Nursery Stock Pest  
               Cleanliness Program (program) administered by CDFA.  

                 Require CDFA to consider outside input on feasibility,  
               cost, justification, and effectiveness when developing the  
               program.

                 Require any person who propagates or produces citrus  
               nursery stock to comply with lawful orders issued by CDFA.

                 Establish inspection requirements and testing standards  
               for the program.

                 Specify phase-in periods or effective dates for  
               regulations and requirements of the program. 

                 Require the program to comply with all federal and state  
               quarantine requirements, and regulations of pest  
               cleanliness standards.

                 Authorize CDFA to adopt and enforce regulations to  
               carryout the program.

                 Provide that serious citrus diseases and pathogens for  
               which there are currently no valid, reliable, or practical  
               test for determining their absence from citrus trees shall  
               only be included in the program within 45 days after a  
               valid, reliable and practical test that is economically  
               feasible is developed.  Rules or regulations adopted for  
               the addition of new pests to the program are exempt from  
               the Administrative Procedures Act.

                 Specify criteria for CDFA to designate third-party  




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               testing for disease and pathogen diagnostic testing and  
               analysis of the program.

                 Permit CDFA to establish rates or prices to cover costs  
               for administration, testing, inspection, and other services  
               under the program.  Costs shall take into consideration  
               CDFA cost savings associated with economy of scale factors  
               and nursery stock licensing fees currently collected. 

                 Declare the intent of the Legislature for a CDFA citrus  
               nursery stock pest cleanliness program.

          COMMENTS

          1.Nurseries are facing severe losses resulting from the  
            establishment and threat of new, devastating diseases like  
            citrus canker and Huanglongbing in California.  These diseases  
            damage and kill citrus trees, reduce yields and quality, and  
            increase costs for planting materials and regulatory  
            compliance.  

            The current voluntary Citrus Pest Inspection Program does not  
            offer sufficient protection against the introduction of new  
            diseases.  Citrus nursery stock producers have had a goal for  
            years to enhance the program which tests their propagating  
            material for various diseases. 

            SB 140 will provide improved protection against invasive pests  
            and diseases by requiring a mandatory citrus nursery stock  
            pest cleanliness program; it would reduce the number of pests  
            that threaten to destroy California's citrus industry.  In  
            addition, the bill will give CDFA the authority to add new  
            pests and diseases to the program when valid and reliable  
            testing has been developed and proven to be efficient and  
            economically feasible.  

          2.Opponents of SB 140 argue that the costs associated with  
            implementing this bill will be a burden to citrus nurseries.   
            They also state that the bill would grant too much authority  
            to CDFA to regulate and establish rates and prices for the  
            program without due process by exemption from rulemaking  
            provisions of the Administrative Procedures Act.  

          3.SB 140 is the rehash of a previous bill in 2008, SB 1466  
            (Corbett), which was held in Assembly Appropriations.  The  
            language of these two bills is substantially similar with only  
            a few minor changes.  The author feels that removing the need  
            for CDFA to hold fact finding hearings during the development  
            of this program should reduce the state costs of this bill and  




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            possibly address financial concerns.

          4.Although there are countless disease pressures on citrus  
            nursery stock, some diseases are potentially a greater threat  
            than others.  While the bill requires a cleanliness program,  
            it is also important that there is some mechanism for the  
            industry to advise the department on the program.  The  
            committee may want to consider if such a cleanliness program  
            for citrus nursery stock should specify involvement of an  
            industry advisory board.

          5.SB 140 would provide CDFA with authority to establish a  
            mandatory inspection program on citrus nursery stock and  
            establish rates and prices to pay for the mandatory program  
            without going through the Administrative Procedures Act.  This  
            give CDFA significant authority without any rulemaking  
            provisions which ensure public input and comment.  The  
            committee may want to consider if this authority is too broad  
            for CDFA.

          6.This bill includes an urgency clause due to the imminent and  
            present potential of invasive pest infestation or disease  
            infection of California citrus.

          SUPPORT
          
          BZ Nursery
          California Association of Nurseries and Garden Centers
          California Citrus Mutual
          Four Winds Growers, Inc
          ZCitrus
          Brokaw Nursery, LLC

          OPPOSITION
          
          Bautista Creek Ranches
          C&M Nursery
          Durling Nursery
          Maddock Nursery
          Young's Nursery, LLC













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          Corrected 4/17/09