BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    THIRD READING


          Bill No:  SB 1018
          Author:   De León (D)
          Amended:  3/26/14
          Vote:     21

           
           SENATE AGRICULTURE COMMITTEE  :  5-0, 4/1/14
          AYES:  Galgiani, Cannella, Berryhill, Lieu, Wolk

           SENATE APPROPRIATIONS COMMITTEE  :  5-0, 4/28/14
          AYES:  De León, Gaines, Hill, Lara, Steinberg
          NO VOTE RECORDED:  Walters, Padilla


           SUBJECT  :    Pest control:  citrus disease prevention 

           SOURCE  :     California Citrus Mutual


           DIGEST  :    This bill specifies that only reasonable, rather than  
          all, expenditures incurred by the Department of Food and  
          Agriculture (DFA) be reimbursed from the Citrus Disease  
          Management Account (CDMA) for responsibilities related to the  
          Citrus Pest and Disease Prevention Program.  This bill requires  
          the Secretary of DFA (Secretary) to obtain approval from the  
          California Citrus Pest and Disease Prevention Committee (CCPDPC)  
          for any changes to program activities or increases in  
          expenditures.

           ANALYSIS  :    

          Existing law:

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          1.Establishes the CCPDPC within the DFA to advise the Secretary  
            on efforts to prevent and manage citrus pests and diseases.   
            An assessment is levied on citrus producers and deposited into  
            the CDMA for the sole purpose of combating citrus-specific  
            pests and diseases.  CDMA may also contain funds from federal  
            and other non-General Fund sources.  The current assessment  
            rate is eight cents per 40 pound carton, which amounts to $16  
            million annually and represents 64% of the total budget for  
            this program.

          2.Authorizes CCPDPC to develop, under the approval of the  
            Secretary, a statewide citrus-specific pest and disease work  
            plan and recommend an annual assessment rate and budget.   
            Requires the CCPDPC to reimburse the Secretary for all  
            expenditures incurred in carrying out, implementing, and  
            administering the statewide work plan.

          This bill:

          1.Specifies that only reasonable, rather than all, expenditures  
            incurred by DFA in carrying out responsibilities pursuant to  
            the Citrus Pest and Disease Prevention Program be reimbursed  
            by the CCPDPC.

          2.Requires the Secretary to obtain approval from the CCPDPC  
            before making any changes to program activities.

          3.Requires the Secretary to obtain approval from the CCPDPC  
            before seeking reimbursement for additional expenditures not  
            previously developed by CCPDPC.

           Background 
           
          Asian citrus psyllid (ACP) is an invasive pest that feeds on  
          citrus plants' leaves and stems and causes shoot deformation and  
          plant stunting.  More importantly, ACP may transmit  
          Huanglongbing (HLB), a bacterial plant disease that causes  
          citrus trees to produce unpalatable/inedible fruit before  
          ultimately killing the tree.  

          According to the University of California Division of  
          Agriculture and Natural Resources (UCANR), the citrus industry,  
          the University of California, and both the state and federal  
          governments are working to eliminate and prevent the  

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          establishment of ACP and HLB in California.  Much of the  
          research is conducted with funding from the citrus industry  
          through the Citrus Research Board; UCANR; DFA Specialty Crops  
          Block Grants; and the U.S. Department of Agriculture, National  
          Institute of Food and Agriculture (USDA-NIFA).

          The Agricultural Act of 2014 (H.R. 2642) was signed into law on  
          February 7, 2014, and directs $125 million of the USDA Specialty  
          Crop Research Initiative funding toward citrus disease research  
          over the next five years.  The federal 2014 budget includes an  
          additional $20 million to combat the spread of citrus pests and  
          diseases.

           Prior Legislation
           
          AB 571 (Gatto, 2013) would have appropriated $5 million from the  
          General Fund to the CDMA within the DFA Fund for the purposes of  
          combating citrus disease or its vectors.  The bill was vetoed by  
          Governor Brown.

          AB 604 (De Leon and Fuller, Chapter 17, Statutes of 2010)  
          authorizes DFA to spend any monies it had collected in the CDMA  
          on citrus specific pest and disease programs through June 30,  
          2010.

          AB 281 (De Leon, Chapter 426, Statutes of 2009) establishes the  
          CCPDPC and the CDMA within DFA to prevent and manage citrus  
          pests and diseases, and allows CCPDPC to levy fees on citrus  
          producers to pay for citrus disease detection and control  
          programs.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          According to the Senate Appropriations Committee, the fiscal  
          effect of this bill is uncertain; it would be determined by  
          whether or not a citrus pest and the disease it carries spread  
          from other countries and southern states (especially Florida) to  
          California agriculture.  If the disease does not become  
          established in California, this bill's costs would be minimal.   
          Conversely, if the disease becomes prevalent in California's  
          citrus groves, this bill's fiscal impact is unknown, but likely  
          significant.


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           SUPPORT  :   (Verified  4/28/14)

          California Citrus Mutual (source)


          JL:k  4/28/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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