BILL ANALYSIS Ó
SB 1018
Page 1
SENATE THIRD READING
SB 1018 (De León)
As Amended August 18, 2014
Majority vote
SENATE VOTE :35-0
AGRICULTURE 7-0 APPROPRIATIONS 17-0
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|Ayes:|Eggman, Olsen, Dahle, |Ayes:|Gatto, Bigelow, |
| |Pan, Quirk, Salas, Yamada | |Bocanegra, Bradford, Ian |
| | | |Calderon, Campos, |
| | | |Donnelly, Eggman, Gomez, |
| | | |Holden, Jones, Linder, |
| | | |Pan, Quirk, |
| | | |Ridley-Thomas, Wagner, |
| | | |Weber |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Requires the Secretary of the California Department of
Food and Agriculture (CDFA) (Secretary) to notify the California
Citrus Pest and Disease Prevention Committee (CCPDPC) for any
changes to program activities or increases in expenditures, and
allows CDFA to produce commercially available beneficial
biological organisms (BBO), as specified. Specifically, this
bill :
1)Specifies that only reasonable, rather than all, expenditures
incurred by CDFA be reimbursed from CDFA for responsibilities
related to the Citrus Pest and Disease Prevention Program
(program).
2)Requires the Secretary to notify CCPDPC for any changes to
program activities or increases in expenditures
3)Allows CDFA to engage in production of BBO if such BBOs are
not available in sufficient amounts for purchase from
commercial sources.
FISCAL EFFECT : According to the Assembly Committee on
Appropriations:
SB 1018
Page 2
1)To the extent the prior notice provisions of this bill limit
the ability of the Secretary to respond immediately to a
citrus pest or disease outbreak, it could potentially
jeopardize the containment of that pest or disease and
adversely affect California's citrus industry.
2)The bill allows the Committee discretion in reimbursing the
Secretary for expenditures related to the program, and any
costs not approved would become General Fund obligations.
3)To the extent other programs seek similar discretion in
reimbursing departments for costs incurred, substantial
administrative General Fund cost pressure and budget
uncertainty could result.
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
transmit to all 32 Florida citrus producing counties and infect
over half of the citrus trees in that state. Both ACP and HLB
have been found in California.
Citrus is a $2 billion industry in the State of California.
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 León), Chapter 426, Statutes of 2009, allowed the
citrus producers to assess themselves to help combat the spread
of HLB. The current assessment rate is $0.08 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
SB 1018
Page 3
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 CDFA.
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.
CDFA is opposed to this bill as it will inhibit CDFA's
flexibility to respond to crisis situations. Furthermore,
delayed response during an emergency would result in a decrease
in citrus crop production.
Analysis Prepared by : Victor Francovich / AGRI. / (916)
319-2084
FN: 0004823