BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 1018
                                                                  Page  1

          Date of Hearing:   June 18, 2014

                          ASSEMBLY COMMITTEE ON AGRICULTURE
                           Susan Talamantes Eggman, Chair
                   SB 1018 (De Leòn) - As Amended:  March 26, 2014

           SENATE VOTE  :   35-0
           
          SUBJECT  :  Pest control: citrus disease prevention: prevention.

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

           EXISTING LAW:

           1)Creates CCPDPC within CDFA to advise the Secretary on efforts  
            to prevent and manage citrus pests and diseases.  An  
            assessment is levied on citrus producers and deposited into  
            CDMA for the sole purpose of combating citrus-specific pests  
            and diseases.  This account may also contain funds from  
            federal and other non-General Fund sources.

          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.  

          3)Requires CCPDPC to reimburse CDFA for all expenditures  
            incurred in carrying out, implementing, and administering the  
            statewide work plan.

           FISCAL EFFECT  :  Unknown. 

           COMMENTS  :  Huanglongbing (HLB) is a bacterial plant disease that  
          destroys the production, appearance and value of citrus trees,  
          ruining the citrus.  HLB is spread mainly by the Asian citrus  
          psyllid (ACP).  To date there is no known controls for HLB,  
          other than removing and destroying infected groves.  After a  
          2005 discovery in Florida, it took only two years for HLB to  








                                                                  SB 1018
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          transmit to all 32 Florida citrus producing counties and infect  
          over half of the citrus tree in that state.  Both ACP and HLB  
          have been found in California. 

          Citrus is a $2 billion industry in the State of California  
          (state).  California produces 82% of United States' fresh citrus  
          and directly employs more than 14,000 people.  It contributes an  
          additional $1.2 billion in economic value to the state and  
          supports another 10,000 jobs. 

          AB 281 (De Leon), Chapter 426, Statutes of 2009, allowed the  
          citrus producer to assess themselves to help combat the spread  
          of HLB.  The current assessment rate is 8 cents per 40 pound  
          carton, which amounts to $16 million annually and represents 64%  
          of the total budget for this program.

          Current law states that the CCPDPC makes recommendations to the  
          Secretary and has the authority to develop work plans, under the  
          approval of the Secretary.  CCPDPC does not have the authority  
          to require CDFA to obtain committee approval for any action.   
          Recent incidences when the CCPDPC was not consulted before  
          programmatic changes were made, when budgetary spending  
          authority was increased, or when additional funds were requested  
          by CDFA to cover costs related to citrus pest control and  
          prevention, concern the sponsors. 

          According to the sponsor, this bill would "strengthen the  
          program by setting clear guidelines for CCPDPC and the  
          Department.  Currently, no such guidelines exist, and as such  
          the efficacy of the program has suffered as a result.   
          Establishing a clear directive for the program will streamline  
          work by CCPDPC and CDFA, now and in the future."  Furthermore,  
          although previous issues have been resolved, this bill would  
          prevent similar issues in the future.

          Budgetary authority is held by the Secretary for most, if not  
          all, similar agricultural committees and commissions in  
          California. The committee may wish to consider whether it is  
          appropriate public policy to give committees budgetary authority  
          over state programs.  

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           








                                                                  SB 1018
                                                                  Page  3

          California Citrus Mutual
           
            Opposition 
           
          None on file 


           Analysis Prepared by  :    Victor Francovich / AGRI. / (916)  
          319-2084