Existing law creates the California Citrus Pest and Disease Prevention Committee in the Department of Food and Agriculture to, among other things, develop a statewide citrus specific pest and disease work plan. Existing law provides for a monthly assessment to be paid by producers, as defined, which is deposited in the Citrus Disease Management Account in the Department of Food and Agriculture Fund. Moneys in the Citrus Disease Management Account are available upon appropriation by the Legislature for specified activities relating to citrus disease prevention.

This bill would appropriate $10,000,000 from the General Fund to the Citrus Disease Management Account in the Department of Food and Agriculture Fund, and would make those funds available for expenditure by the department, without regard to fiscal year, for the purpose of combating citrus specific pests, diseases, and their vectors.

Date of Hearing: April 5, 2017

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

ABPCA Bill Id:AB 1232

Author:(Fong) – As Introduced Ver:February 17, 2017

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill appropriates $10 million from the General Fund (GF) to the Citrus Disease Management Account (CDMA) in the California Department of Food and Agriculture (CDFA) Fund for the purposes of citrus disease prevention.

FISCAL EFFECT:

One-time $10 million appropriation from the GF to the CDMA.

COMMENTS:

1. HLB and ACP. Huanglongbing (HLB), also known as citrus greening disease, is a bacterial plant disease that, while not harmful to humans or animals, is fatal for citrus trees. The disease destroys citrus trees’ production, appearance and economic value. Diseased trees produce hard, bitter, misshapen fruit, and the trees typically die within 3-5 years of being infected. HLB is considered to be one of the most serious plant diseases in the world and currently there is no cure. Infected plants must be removed and destroyed in order to prevent further spread of HLB.

In 2008, Asian Citrus Psyllid (ACP), responsible for spreading HLB, was first identified in Southern California and has since spread rapidly such that quarantine boundaries now comprise one-third of the State. In March 2012, HLB was detected in Los Angeles County, and the disease was detected again in 2015 in 22 trees located in the surrounding areas. The new finds and the rapid migration of the disease-carrying insect have increased CDFA’s surveillance, trapping, and analytical workloads.

1. Current industry assessments. An assessment is levied on citrus producers and deposited into the Citrus Disease Management Account for the sole purpose of combating citrus-specific pests and diseases. This account may also contain funds from federal and other non-GF sources. SB 822 (Roth), Chapter 279, Statutes of 2016, increased the industry assessment rate from $0.09 to $0.12 per 40 pound carton, and was expected to raise an estimated $5 million more for combatting HLB.
2. Purpose. According to the author, AB 1232 will provide much-needed funding to continue to combat the spread and devastating effects of HLB.

Analysis Prepared by: Luke Reidenbach / APPR. / (916) 319-2081

Date of Hearing: March 22, 2017

ASSEMBLY COMMITTEE ON AGRICULTURE

Anna Caballero, Chair

ABPCA Bill Id:AB 1232

Author:(Fong) – As Introduced Ver:February 17, 2017

SUBJECT: Agricultural pest control: citrus disease prevention: funding.

SUMMARY: This bill appropriates $10 million from the General Fund (GF) to the Citrus Disease Management account (CDMA) in the California Department of Food and Agriculture (CDFA) for the purpose of citrus disease prevention.

EXISTING LAW: Establishes the California Citrus Pest and Disease Prevention Committee (CCPDPC) within CDFA to advise the Secretary of CDFA 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. This account may also contain funds from federal and other non-GF sources.

FISCAL EFFECT: Unknown

COMMENTS: Citrus is a $2 billion industry in the State of California (State). California produces 82% of the 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.

In March of 2012, Huanglongbing (HLB) was found in a Los Angeles-area backyard. 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.

The CCPDPC is funded by the California citrus industry and federal grants. Of the $30 million annual budget, roughly $20 million is funded through the $0.12 per carton assessment fee and $10 million through USDA. However, this year, the federal government approved an additional $2 million in funding that will be used to increase ACP detection and trapping in the San Joaquin Valley. The CCPDPC received a one-time $1 million appropriation from the GF in FY 2013-14; however, no other monies from California’s GF have been appropriated.

Over half of all citrus trees in California are located in residential backyards. Currently, $15 million of the industry-assessed fees are being used to detect and trap ACP and remove HLB-infected citrus trees in the Los Angeles Basin, the area of greatest infestation. None of the assessment fees are currently being used to treat commercial citrus groves.

According to the author, this bill will provide much needed funding to continue to combat the spread and devastating effects of HLB on California’s citrus industry.

RELATED LEGISLATION

:

SB 822 (Roth), Chapter 279, Statutes of 2016, increased the maximum monthly citrus assessment fee used for the purpose of combating citrus disease, from $0.09 to $0.12 cents per 40 pound carton.

AB 862 (Agriculture), Chapter 374, Statutes of 2015, specified that all expenditures incurred by CDFA be reimbursed by the Citrus Disease Management Account.

SB 1018 (De León), Chapter 924, Statutes of 2014, required the Secretary of CDFA to notify the CCPDPC for any changes to program activities or increases in expenditures, and specified that only reasonable, rather than all, expenditures incurred by CDFA be reimbursed by the program’s funding account.

AB 571 (Gatto) of 2013, would have appropriated $5 million from the GF to the Citrus Disease Management Account within the CDFA Fund for the purposes of combating citrus disease or its vectors. This bill was vetoed by the Governor.

AB 604 (De León and Fuller), Chapter 17, Statutes of 2010, authorized CDFA to spend any monies it had collected in the Citrus Disease Management Account on citrus specific pest and disease programs through June 30, 2010.

AB 281 (De León), Chapter 426, Statutes of 2009, established CCPDPC and CDMA within CDFA to prevent and manage citrus pests and diseases. CDMA shall consist of money from industry assessment fees but may also include federal and other non-GF sources.

REGISTERED SUPPORT / OPPOSITION:

Support

California Citrus Mutual

Opposition

None on file

Analysis Prepared by: Victor Francovich / AGRI. /