Existing law creates the Citrus Disease Management Account in the Department of Food and Agriculture Fund, consisting of money from federal, industry, and other non-General Fund sources, to be available upon appropriation by the Legislature for the purpose of combating citrus specific pests, diseases, and their vectors.

This bill would appropriate $9,616,000 from the Citrus Disease Management Account to the Department of Food and Agriculture for operating expenses necessary for the prevention and management of citrus diseases.

This bill would declare that it makes an appropriation for the usual current expenses of the state, and shall go into immediate effect.

Existing law creates the Citrus Disease Management Account in the Department of Food and Agriculture Fund, consisting of money from federal, industry, and other non-General Fund sources, to be available upon appropriation by the Legislature for the purpose of combating citrus specific pests, diseases, and their vectors.

This bill would appropriate $9,616,000 from the Citrus Disease Management Account to the Department of Food and Agriculture for operating expenses necessary for the prevention and management of citrus diseases.

This bill would declare that it makes an appropriation for the usual current expenses of the state, and shall go into immediate effect.

Existing law creates the California Citrus Disease Management Account in the Department of Food and Agriculture Fund, consisting of money from federal, industry, and other non-General Fund sources, to be available upon appropriation by the Legislature for the purpose of combating citrus specific pests, diseases, and their vectors.

This bill would appropriate $9,616,000 from the Citrus Disease Management Account to the Department of Food and Agriculture for operating expenses necessary for the prevention and management of citrus diseases.

This bill would declare that it makes an appropriation for the usual current expenses of the state, and shall go into immediate effect.

(Without Reference to File)

SENATE THIRD READING

STR Bill Id:SB 243

Author:(Galgiani)

As Introduced Ver:February 6, 2017

Majority vote

SENATE VOTE: 39-0

SUMMARY: This bill would appropriate $9,616,000 from the Citrus Disease Management Account (CDMA) to the California Department of Food and Agriculture (CDFA) for operating expenses necessary for the prevention and management of citrus diseases.

EXISTING LAW: Establishes the California Citrus Pest and Disease Prevention Committee (CCPDPC) within the 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 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.

FISCAL EFFECT: Unknown. This bill is keyed non-fiscal by the Legislative Counsel.

COMMENTS: California is a top producer of citrus fruit and is ranked second only to Florida in citrus production but first in citrus products sold fresh to market. According to the most recent census, in 2012, the $2.1 billion California citrus industry grew nearly four million tons of citrus on 270,000 acres and provided more than 14,000 jobs.

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 deadly bacterial plant disease that results in inedible fruit and, ultimately, tree mortality. According to CDFA, HLB is the most devastating disease of citrus in the world. Currently, there is no cure and infected plants must be destroyed.

The first discovery of ACP and HLB in the United States was in Florida in 1998 and early September 2005, respectively. Within two years, the disease HLB spread to all citrus-producing counties and infected over half of all citrus trees in the state. Research from the University of Florida has shown that the economic damage due to HLB in Florida alone has resulted in a loss of $7.8 billion and 7,513 jobs between 2007 and 2014, reducing the industry to nearly a quarter of the size it once was. The disease HLB has also been detected in Georgia, Louisiana, South Carolina, Texas, and most recently, California.

In 2008, the pest ACP was first identified in Southern California. In the last three years, ACP has rapidly spread north into commercial citrus groves and residential trees, and quarantine boundaries have expanded to encompass one-third of the state. Meanwhile, in March 2012, HLB was detected in a residential, multi-grafted citrus tree in Los Angeles County. The tree was destroyed; however, the disease was detected again in 2015, and now more than 30 trees located in the surrounding areas have tested positive for HLB. The new finds and the rapid northern migration are of great concern, raising CDFA's surveillance, trapping, and analytical workloads.

The CCPDPC is funded by the California citrus industry and by federal grants. In 2016, the Legislature voted to raise the fee assessment maximum from $0.09 to $0.12 per 40-pound carton. It is anticipated that this increase could raise revenues by roughly $6 million annually if the CCPDPC votes to increase the assessment to the maximum rate, which is expected to occur September 2017. CDFA projects that in Fiscal Year 2016-17, expenditures could total $25 million; thus, it is likely that CDFA will meet their $16 million budget before the end of the fiscal year. Therefore, increased spending authority for $9 million is sought so that existing funds may be spent to combat citrus pests and diseases in the current budget year.

Analysis Prepared by: Victor Francovich / AGRI. / (916) 319-2084 FN: 0000459

Date of Hearing: May 18, 2017

ASSEMBLY COMMITTEE ON AGRICULTURE

Anna Caballero, Chair

SBPCA Bill Id:SB 243

Author:(Galgiani) – As Introduced Ver:February 6, 2017

SENATE VOTE: 39-0

SUBJECT: Citrus disease prevention.

SUMMARY: This bill would appropriate $9,616,000 from the Citrus Disease Management Account (CDMA) to the Department of Food and Agriculture (CDFA) for operating expenses necessary for the prevention and management of citrus diseases.

EXISTING LAW: Establishes the California Citrus Pest and Disease Prevention Committee (CCPDPC) within the California Department of Food and Agriculture (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 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.

FISCAL EFFECT: Unknown

COMMENTS: California is a top producer of citrus fruit and is ranked second only to Florida in citrus production but first in citrus products sold fresh to market. According to the most recent census, in 2012, the $2.1 billion California citrus industry grew nearly four million tons of citrus on 270,000 acres and provided more than 14,000 jobs.

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 deadly bacterial plant disease that results in inedible fruit and, ultimately, tree mortality. According to CDFA, HLB is the most devastating disease of citrus in the world. Currently, there is no cure and infected plants must be destroyed.

The first discovery of ACP and HLB in the United States was in Florida in 1998 and early September 2005, respectively. Within two years, the disease HLB spread to all citrus-producing counties and infected over half of all citrus trees in the state. Research from the University of Florida has shown that the economic damage due to HLB in Florida alone has resulted in a loss of $7.8 billion and 7,513 jobs between 2007 and 2014, reducing the industry to nearly a quarter of the size it once was. The disease HLB has also been detected in Georgia, Louisiana, South Carolina, Texas, and most recently, California.

In 2008, the pest ACP was first identified in Southern California. In the last three years, ACP has rapidly spread north into commercial citrus groves and residential trees, and quarantine boundaries have expanded to encompass one-third of the state. Meanwhile, in March 2012, HLB was detected in a residential, multi-grafted citrus tree in Los Angeles County. The tree was destroyed; however, the disease was detected again in 2015, and now more than 30 trees located in the surrounding areas have tested positive for HLB. The new finds and the rapid northern migration are of great concern, raising CDFA’s surveillance, trapping, and analytical workloads.

The CCPDPC is funded by the California citrus industry and by federal grants. In 2016, the Legislature voted to raise the fee assessment maximum from nine cents to 12 cents per 40-pound carton. It is anticipated that this increase could raise revenues by roughly $6 million annually if the CCPDPC votes to increase the assessment to the maximum rate, which is expected to occur September 2017. CDFA projects that in FY 2016-17, expenditures could total $25 million; thus, it is likely that CDFA will meet their $16 million budget before the end of the fiscal year. Therefore, increased spending authority for $9 million is sought so that existing funds may be spent to combat citrus pests and diseases in the current budget year.

REGISTERED SUPPORT / OPPOSITION:

Support

California Citrus Mutual (Sponsor)

California Farm Bureau Federation

Opposition

None on file.

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

 THIRD READING  

Bill No: SB 243

Author:

:

Vote:

SENATE AGRICULTURE COMMITTEE: 4-0, 3/21/17

AYES: Galgiani, Wilk, Dodd, Pan

NO VOTE RECORDED: Berryhill

SUBJECT:

SOURCE: California Citrus Mutual

DIGEST:

This bill appropriates $9,616,000 from the Citrus Disease Management Account to the Department of Food and Agriculture for operating expenses necessary for the prevention and management of citrus diseases.

ANALYSIS: Existing law establishes the California Citrus Pest and Disease Prevention Committee (CCPDPC) within the California Department of Food and Agriculture (CDFA) to advise the secretary of CDFA on efforts to prevent and manage citrus pests and diseases.

This bill appropriates $9,616,000 from the Citrus Disease Management Account to the CDFA for operating expenses necessary for the prevention and management of citrus diseases.

Background

California is the top-producing agricultural state in the nation with $47.1 billion in agricultural commodity value in 2015. California is also a top producer of citrus fruits and is ranked second only to Florida in citrus production but first in citrus product sold fresh to market. According to the most recent census, in 2012, the $2.1 billion California citrus industry grew nearly four million tons of citrus on 270,000 acres and provided more than 14,000 jobs.

Existing law establishes the CCPDPC within the 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 Citrus Disease Management Account for the sole purpose of combating citrus-specific pests and diseases. In 2016, SB 822 (Roth, Chapter 279) increased the maximum monthly citrus assessment fee from nine cents to 12 cents per 40-pound carton, and it is anticipated that the CCPDPC will vote in September to raise the fee to the maximum 12 cents. This account may also contain funds from federal and other non-General Fund sources. (AB 281, De Leon, Chapter 426, Statutes of 2009; Food and Agricultural Code §5911 et seq.).

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 deadly bacterial plant disease that results in inedible fruit and, ultimately, tree mortality. According to CDFA, HLB is the most devastating disease of citrus in the world. Currently, there is no cure and infected plants must be destroyed.

The first discovery of ACP and HLB in the United States was in Florida in 1998 and early September 2005, respectively. Within two years, the disease HLB spread to all citrus-producing counties and infected over half of all citrus trees in the state. Research from the University of Florida has shown that the economic damage due to HLB in Florida alone has resulted in a loss of $7.8 billion and 7,513 jobs between 2007 and 2014, reducing the industry to nearly a quarter of the size it once was. The disease HLB has also been detected in Georgia, Louisiana, South Carolina, Texas, and most recently, California.

In 2008, the pest ACP was first identified in Southern California. In the last three years, ACP has rapidly spread north into commercial citrus groves and residential trees, and quarantine boundaries have expanded to encompass one-third of the state. Meanwhile, in March 2012, HLB was detected in a residential, multi-grafted citrus tree in Los Angeles County. The tree was destroyed; however, the disease was detected again in 2015, and now 46 trees located in the surrounding areas have tested positive for HLB. The new finds and the rapid northern migration are of great concern, raising CDFA’s surveillance, trapping, and analytical workloads.

Comments

Spending authority. The CCPDPC is funded by the California citrus industry and by federal grants. In 2016, the Legislature voted to raise the fee assessment maximum from nine cents to 12 cents per 40-pound carton. It is anticipated that this increase could raise revenues by roughly $6 million annually if the CCPDPC votes to increase the assessment to the maximum rate, which is expected to occur September 2017. CDFA projects that in FY 2016-17 expenditures could total $25 million; thus, it is likely that CDFA will meet their $16 million budget before the end of the fiscal year. Therefore, increased spending authority for $9 million is sought so that existing funds may be spent to combat citrus pests and diseases in the current budget year.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT: (Verified 5/2/17)

California Citrus Mutual (source)

California Farm Bureau Federation

OPPOSITION: (Verified 5/2/17)

None received

ARGUMENTS IN SUPPORT: According to the author, “California is facing a serious infestation of Asian citrus psyllid, an invasive pest that threatens to kill every California citrus tree. As already seen in Florida, this tiny pest and the disease it carries, Huanglongbing, have the ability to destroy both the citrus industry and residential citrus trees. Last year, SB 822 (Roth) was signed into law which increased the assessment rate on a 40-pound carton of citrus from nine cents to 12 cents. This increase is anticipated to raise revenues in the Citrus Disease Management Account by $6 million annually, to be used to combat citrus pests and diseases. However, the authority for CDFA to spend these funds was not raised accordingly. SB 243 would increase the spending authority of CDFA so that the existing funds within the citrus account may be used immediately to support critical activities to stop the spread of ACP and HLB throughout California.”

Prepared by:

5/3/17 12:16:29

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2017 - 2018 Regular Session

SB 243 (Galgiani) - Citrus disease prevention

This bill meets the criteria for referral to the Suspense File.

Bill Summary:

SB 243 would appropriate $9,616,000 from the Citrus Disease Management Account to the California Department of Food and Agriculture (CDFA) for operating expenses related to the prevention and management of citrus diseases.

Fiscal Impact:

The bill would make a one-time $9.6 million special fund appropriation (Citrus Disease Management Account).

Background:

Citrus is a $2 billion industry in California. The State produces roughly one-third of the nation’s fresh citrus on roughly 270,000 acres, and directly employs in excess of than 14,000 people.

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. According to CDFA, HLB is the most devastating disease of citrus in the world, affecting citrus in Asia, Africa, Brazil, Central America, as well as the United States. Infected plants must be removed and destroyed in order to prevent further spread of HLB.

HLB is spread by the Asian citrus psyllid (ACP), a tiny, invasive insect that feeds on the leaves and stems of citrus trees and causes shoot deformation and plant stunting. When an ACP feeds on an HLB-infected tree, it can pick up the bacteria that causes the disease. Once infected, ACP carries the disease-causing bacteria for life and can transfer the disease when feeding on other citrus trees.

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 tree in that state. Studies conclude that HLB-related economic damage in Florida has resulted in a loss of roughly $8 billion and 8,000 jobs over the last five years. Additionally, HLB has since been detected in Georgia, Louisiana, South Carolina, and Texas.

In 2008, ACP 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 a multi-grafted citrus tree in a residential portion of Los Angeles County. The tree was destroyed; however, the disease was detected again in 2015 in 17 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.

Proposed Law:

This bill would appropriate $9,616,000 from the Citrus Disease Management Account to the Department of Food and Agriculture for operating expenses necessary for the prevention and management of citrus diseases.

Related Legislation:

• SB 1354 (Galgiani) of 2016. Died in Assembly Appropriations Committee. Would have required CDFA to, upon appropriation specific for this purpose, support research activities relating to Asian citrus psyllid (ACP) and Huanglongbing (HLB) and to work with specified stakeholders to establish a process for voluntary tracking of best practices to manage ACP-infested and HLB-infected groves. The information collected would have been used to establish recommended management protocols based on best available science and treatment outcomes. This bill contained an urgency clause.
• SB 822 (Roth) Chapter 279, Statutes of 2016. Increases the monthly citrus assessment fee from nine cents to 12 cents per 40-pound carton.
• AB 571 (Gatto, 2013) This bill would have appropriated $5 million from the General Fund to the Citrus Disease Management Account within the California Department of Food and Agriculture Fund for the purposes of combating citrus disease or its vectors. The bill was vetoed by the Governor.
• AB 604 (De León and Fuller) Chapter 17, Statutes of 2010. Authorizes 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. Establishes the California Citrus Pest and Disease Prevention Committee and the Citrus Disease Management Account within CDFA to prevent and manage citrus pests and diseases. The Account shall consist of money from industry assessment fees but may also include federal and other non-General Fund sources.

Staff Comments:

Current law establishes the California Citrus Pest and Disease Prevention Committee (CCPDPC) within CDFA to advise on efforts to prevent and manage citrus pests and diseases. CCPDPC is generally funded by (1) the California citrus industry, and (2) federal grants. Specifically, 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. Producers are currently paying $0.09 per 40-lb carton of citrus. Revenue from industry assessments is estimated to be $18 million in 2016-17. Beginning October 1, 2017, the grower assessment rate will be increased to $0.12 per 40-lb carton. Based on 2016-17 production levels, the increased assessment will generate $24 million in revenue in 2017-18. Additionally, about $10 million dollars has been provided annually in recent years through a grant from the United States Department of Agriculture. Thus, citrus industry assessment revenues represent more than half of the total budget for the program.

Due to a growing number of (1) ACP detections in more areas of the State, most recently in Santa Clara, Solano, and Placer counties, and (2) a significant increase in detections of HLB in the Los Angeles Basin, the cost of responding to and preventing further spread of the insect and disease has increased sharply.

In September 2016, CCPDPC passed an operational budget of $26.6 million, exceeding both the program’s 2016-17 existing statutory spending authority and previous year’s budget. This bill would increase the program’s 2016-17 spending authority by $9.6 million to equal the amount of budgeted expenditures, with the funds coming from the Citrus Disease Management Account’s reserve. The reserve totaled $16 million at the end of 2015-16.

-- END --

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2017 - 2018 Regular Session

SB 243 (Galgiani) - Citrus disease prevention

This bill meets the criteria for referral to the Suspense File.

Bill Summary:

SB 243 would appropriate $9,616,000 from the Citrus Disease Management Account to the California Department of Food and Agriculture (CDFA) for operating expenses related to the prevention and management of citrus diseases.

Fiscal Impact:

The bill would make a one-time $9.6 million special fund appropriation (Citrus Disease Management Account).

Background:

Citrus is a $2 billion industry in California. The State produces roughly one-third of the nation’s fresh citrus on roughly 270,000 acres, and directly employs in excess of than 14,000 people.

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. According to CDFA, HLB is the most devastating disease of citrus in the world, affecting citrus in Asia, Africa, Brazil, Central America, as well as the United States. Infected plants must be removed and destroyed in order to prevent further spread of HLB.

HLB is spread by the Asian citrus psyllid (ACP), a tiny, invasive insect that feeds on the leaves and stems of citrus trees and causes shoot deformation and plant stunting. When an ACP feeds on an HLB-infected tree, it can pick up the bacteria that causes the disease. Once infected, ACP carries the disease-causing bacteria for life and can transfer the disease when feeding on other citrus trees.

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 tree in that state. Studies conclude that HLB-related economic damage in Florida has resulted in a loss of roughly $8 billion and 8,000 jobs over the last five years. Additionally, HLB has since been detected in Georgia, Louisiana, South Carolina, and Texas.

In 2008, ACP 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 a multi-grafted citrus tree in a residential portion of Los Angeles County. The tree was destroyed; however, the disease was detected again in 2015 in 17 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.

Proposed Law:

This bill would appropriate $9,616,000 from the Citrus Disease Management Account to the Department of Food and Agriculture for operating expenses necessary for the prevention and management of citrus diseases.

Related Legislation:

• SB 1354 (Galgiani) of 2016. Died in Assembly Appropriations Committee. Would have required CDFA to, upon appropriation specific for this purpose, support research activities relating to Asian citrus psyllid (ACP) and Huanglongbing (HLB) and to work with specified stakeholders to establish a process for voluntary tracking of best practices to manage ACP-infested and HLB-infected groves. The information collected would have been used to establish recommended management protocols based on best available science and treatment outcomes. This bill contained an urgency clause.
• SB 822 (Roth) Chapter 279, Statutes of 2016. Increases the monthly citrus assessment fee from nine cents to 12 cents per 40-pound carton.
• AB 571 (Gatto, 2013) This bill would have appropriated $5 million from the General Fund to the Citrus Disease Management Account within the California Department of Food and Agriculture Fund for the purposes of combating citrus disease or its vectors. The bill was vetoed by the Governor.
• AB 604 (De León and Fuller) Chapter 17, Statutes of 2010. Authorizes 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. Establishes the California Citrus Pest and Disease Prevention Committee and the Citrus Disease Management Account within CDFA to prevent and manage citrus pests and diseases. The Account shall consist of money from industry assessment fees but may also include federal and other non-General Fund sources.

Staff Comments:

Current law establishes the California Citrus Pest and Disease Prevention Committee (CCPDPC) within CDFA to advise on efforts to prevent and manage citrus pests and diseases. CCPDPC is generally funded by (1) the California citrus industry, and (2) federal grants. Specifically, 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. Producers are currently paying $0.09 per 40-lb carton of citrus. Revenue from industry assessments is estimated to be $18 million in 2016-17. Beginning October 1, 2017, the grower assessment rate will be increased to $0.12 per 40-lb carton. Based on 2016-17 production levels, the increased assessment will generate $24 million in revenue in 2017-18. Additionally, about $10 million dollars has been provided annually in recent years through a grant from the United States Department of Agriculture. Thus, citrus industry assessment revenues represent more than half of the total budget for the program.

Due to a growing number of (1) ACP detections in more areas of the State, most recently in Santa Clara, Solano, and Placer counties, and (2) a significant increase in detections of HLB in the Los Angeles Basin, the cost of responding to and preventing further spread of the insect and disease has increased sharply.

In September 2016, CCPDPC passed an operational budget of $26.6 million, exceeding both the program’s 2016-17 existing statutory spending authority and previous year’s budget. This bill would increase the program’s 2016-17 spending authority by $9.6 million to equal the amount of budgeted expenditures, with the funds coming from the Citrus Disease Management Account’s reserve. The reserve totaled $16 million at the end of 2015-16.

-- END --

SENATE COMMITTEE ON AGRICULTURE

Senator Cathleen Galgiani, Chair

2017 - 2018 Regular

Bill No: SB 243 Hearing Date: 3/21/17

Subject: Citrus disease prevention

SUMMARY

:

This bill would appropriate $9,616,000 from the Citrus Disease Management Account to the Department of Food and Agriculture for operating expenses necessary for the prevention and management of citrus diseases.

BACKGROUND AND EXISTING LAW

:

California is the top-producing agricultural state in the nation with $47.1 billion in agricultural commodity value in 2015. California is also a top producer of citrus fruits and is ranked second only to Florida in citrus production but first in citrus product sold fresh to market. According to the most recent census, in 2012, the $2.1 billion California citrus industry grew nearly 4 million tons of citrus on 270,000 acres and provided more than 14,000 jobs.

Existing law establishes the California Citrus Pest and Disease Prevention Committee (CCPDPC) within the California Department of Food and Agriculture (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 Citrus Disease Management Account for the sole purpose of combating citrus-specific pests and diseases. In 2016, SB 822 (Roth) increased the maximum monthly citrus assessment fee from nine cents to 12 cents per 40-pound carton. This account may also contain funds from federal and other non-General Fund sources. (AB 281, De Leon, Chapter 426, Statutes of 2009; Food and Agricultural Code §5911 et seq.).

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 deadly bacterial plant disease that results in inedible fruit and, ultimately, tree mortality. According to CDFA, HLB is the most devastating disease of citrus in the world. Currently, there is no cure and infected plants must be destroyed.

The first discovery of ACP and HLB in the United States was in Florida in 1998 and early September 2005, respectively. Within 2 years, the disease HLB spread to all citrus-producing counties and infected over half of all citrus trees in the state. Research from the University of Florida has shown that the economic damage due to HLB in Florida alone has resulted in a loss of $7.8 billion and 7,513 jobs between 2007 and 2014, reducing the industry to nearly a quarter of the size it once was. The disease HLB has also been detected in Georgia, Louisiana, South Carolina, Texas, and most recently, California.

In 2008, the pest ACP was first identified in Southern California. In the last three years, ACP has rapidly spread north into commercial citrus groves and residential trees, and quarantine boundaries have expanded to encompass one-third of the state. Meanwhile, in March 2012, HLB was detected in a residential, multi-grafted citrus tree in Los Angeles County. The tree was destroyed; however, the disease was detected again in 2015, and now more than 30 trees located in the surrounding areas have tested positive for HLB. The new finds and the rapid northern migration are of great concern, raising CDFA’s surveillance, trapping, and analytical workloads.

PROPOSED LAW

:

This bill:

1. Appropriates $9,616,000 from the Citrus Disease Management Account to the Department of Food and Agriculture for operating expenses necessary for the prevention and management of citrus diseases.

ARGUMENTS IN SUPPORT:

According to the author, “California is facing a serious infestation of Asian citrus psyllid, an invasive pest that threatens to kill every California citrus tree. As already seen in Florida, this tiny pest and the disease it carries, Huanglongbing, have the ability to destroy both the citrus industry and residential citrus trees. Last year, SB 822 (Roth) was signed into law which increased the assessment rate on a 40-pound carton of citrus from nine cents to 12 cents. This increase is anticipated to raise revenues in the Citrus Disease Management Account by $5 million annually, to be used to combat citrus pests and diseases. However, the authority for CDFA to spend these funds was not raised accordingly. SB 243 would increase the spending authority of CDFA so that the existing funds within the citrus account may be used immediately to support critical activities to stop the spread of ACP and HLB throughout California.”

COMMENTS

:

Spending authority. The CCPDPC is funded by the California citrus industry and by federal grants. In January 2017, the CCPDPC voted to recommend that the secretary raise the fee assessment from nine cents to 12 cents per 40-pound carton, which could raise revenues by another $5 million. CDFA projects that in FY 2016-17 expenditures could total $25 million; thus, it is likely that CDFA will meet their $16 million budget well before the end of the fiscal year. Therefore, increased spending authority for $9 million is sought so that existing funds may be spent to combat citrus pests and diseases in the current budget year.

RELATED LEGISLATION

:

SB 825 (Budget) of 2016. Died in Senate Budget Committee. Among other provisions, this bill would have appropriated $5 million from the General Fund for Asian citrus psyllid control, where $4,250,000 would have been for CDFA’s use in quarantine areas and $750,000 would have gone to the Department of Pesticide regulation for a study on neonicotinoids. This bill was the Senate’s version of the state budget before it went to conference with the Assembly. During conference, the $4,250,000 funding for Asian citrus psyllid control was removed and the final budget bill signed by the governor was SB 826.

SB 1354 (Galgiani) of 2016. Died in Assembly Appropriations Committee. Would have required CDFA to, upon appropriation specific for this purpose, support research activities relating to Asian citrus psyllid (ACP) and Huanglongbing (HLB) and to work with specified stakeholders to establish a process for voluntary tracking of best practices to manage ACP-infested and HLB-infected groves. The information collected would have been used to establish recommended management protocols based on best available science and treatment outcomes. This bill contained an urgency clause.

SB 822 (Roth) Chapter 279, Statutes of 2016. Increases the monthly citrus assessment fee from nine cents to 12 cents per 40-pound carton.

AB 571 (Gatto). Vetoed, 2013. Would have appropriated $5 million from the General Fund to the Citrus Disease Management Account within the California Department of Food and Agriculture Fund for the purposes of combating citrus disease or its vectors.

AB 604 (De León and Fuller) Chapter 17, Statutes of 2010. Authorizes CDFA to spend any monies it has 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. Establishes the California Citrus Pest and Disease Prevention Committee and the Citrus Disease Management Account within CDFA to prevent and manage citrus pests and diseases. The account shall consist of money from industry assessment fees but may also include federal and other non-General Fund sources.

SUPPORT

:

California Citrus Mutual (Sponsor)

OPPOSITION

:

None received

-- END --