BILL NUMBER: AB 1394	CHAPTERED
	BILL TEXT

	CHAPTER  103
	FILED WITH SECRETARY OF STATE  JULY 25, 2001
	APPROVED BY GOVERNOR  JULY 25, 2001
	PASSED THE ASSEMBLY  JULY 19, 2001
	PASSED THE SENATE  JULY 18, 2001
	AMENDED IN SENATE  JULY 16, 2001
	AMENDED IN SENATE  JULY 3, 2001
	AMENDED IN SENATE  MAY 29, 2001
	AMENDED IN SENATE  MAY 21, 2001
	AMENDED IN ASSEMBLY  MAY 9, 2001
	AMENDED IN ASSEMBLY  APRIL 16, 2001

INTRODUCED BY   Assembly Member Wiggins
   (Coauthors:  Assembly Members Aroner, Ashburn, Bates, Canciamilla,
Cardoza, Cogdill, Corbett, Correa, Florez, Frommer, Jackson, Kelley,
Leslie, Maldonado, Migden, Nation, Robert Pacheco, Papan, Pavley,
Pescetti, Salinas, Strom-Martin, Thomson, Wright, and Zettel)
   (Coauthors:  Senators Alpert, Chesbro, Costa, Johannessen,
Machado, McPherson, Monteith, and Perata)

                        FEBRUARY 23, 2001

   An act to amend Sections 221 and 277 of, and to add and repeal
Article 8.5 (commencing with Section 6047.1) to Chapter 9 of Part 1
of Division 4 of, the Food and Agricultural Code, relating to pests,
and declaring the urgency thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1394, Wiggins.  Pests:  Pierce's disease and the Glassy-winged
Sharpshooter.
   Existing law generally provides for the eradication of pests that
threaten this state's agriculture.  Existing law also creates the
Pierce's Disease Management Account within the Food and Agriculture
Fund for the purpose of research and other efforts to combat Pierce's
disease and its vectors.
   This bill would create in the Department of Food and Agriculture
the Pierce's Disease and Glassy-winged Sharpshooter Board, which
would consist of at least 14 and no more than 15 members with
specified numbers of representatives of producers and processors, as
defined, in the grape industry to be appointed by the Secretary of
Food and Agriculture, as specified.  This bill would set out the
powers of the board and would provide for a specified annual
assessment to be paid by processors into the Department of Food and
Agriculture Fund for the purposes of, among other things, research of
integrated pest management and other sustainable industry practices.
  This bill would provide that the assessment required to be
deposited in the Department of Food and Agriculture Fund may be
deposited with an entity that is a bank or other depository approved
by the Department of Finance, if specified conditions are met.  This
bill would repeal these provisions as of March 1, 2006.
   This bill would declare that it is to take effect immediately as
an urgency statute.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 221 of the Food and Agricultural Code is
amended to read:
   221.  The "Department of Food and Agriculture Fund," which is a
special fund, is continued in existence.  Any money that is directed
by law to be paid into the fund shall be paid into it and, unless
otherwise specifically provided, shall be expended solely for the
enforcement of the law under which the money was derived.  The
expenditure from the fund for the enforcement of any law shall not,
unless otherwise specifically provided, exceed the amount of money
that is credited to the fund pursuant to the law.
   Notwithstanding Section 13340 of the Government Code, all money
deposited in the fund under the provisions enumerated below is hereby
continuously appropriated to the department without regard to fiscal
years for expenditure in carrying out the purposes for which the
money was deposited and for making the refunds authorized by Section
302.
   All money deposited in the fund under the provisions enumerated
below is hereby exempted from Sections 13320 to 13324, inclusive, of
the Government Code:
   (a) Article 7 (commencing with Section 5821) and Article 7.5
(commencing with Section 5850) of Chapter 8 of Part 1 of Division 4,
Chapter 1 (commencing with Section 6701) of Part 3 of Division 4, and
Chapter 5 (commencing with Section 53301) of Division 18.
   (b) Article 5 (commencing with Section 6001) of Chapter 9 of Part
1 of Division 4.
   (c) Article 8.5 (commencing with Section 6047.1) of Chapter 9 of
Part 1 of Division 4.
   (d) Article 4.5 (commencing with Section 6971) and Article 5
(commencing with Section 6981) of Chapter 2 of Part 3 of Division 4.

   (e) Chapter 4 (commencing with Section 14200), Chapter 5
(commencing with Section 14501), and Chapter 6 (commencing with
Section 14901) of Division 7.
   (f) Part 1 (commencing with Section 16301) and Part 2 (commencing
with Section 17401) of Division 9.
   (g) Sections 19225, 19227, 19312, and 19315.
   (h) Division 10 (commencing with Section 20001).
   (i) Division 11 (commencing with Section 23001).
   (j) Part 4 (commencing with Section 27501) of Division 12.
   (k) Division 16 (commencing with Section 40501).
   (l) Chapter 9 (commencing with Section 44971) of Division 17.
   (m) Chapter 1 (commencing with Section 52001) of Division 18.
   (n) Chapter 2 (commencing with Section 52251) of Division 18.
   (o) Chapter 3 (commencing with Section 52651) of Division 18.
   (p) Chapter 4 (commencing with Section 52851) of Division 18.
   (q) Chapter 6 (commencing with Section 55401), Chapter 7
(commencing with Section 56101), and Chapter 7.5 (commencing with
Section 56701) of Division 20.
   (r) Section 58582.
   (s) Chapter 1 (commencing with Section 61301), Chapter 2
(commencing with Section 61801), and Chapter 3 (commencing with
Section 62700) of Part 3 of Division 21.
   (t) Chapter 5.5 (commencing with Section 12531) of Division 5 of
the Business and Professions Code.
   (u) Chapter 7 (commencing with Section 12700) of Division 5 of the
Business and Professions Code.
   (v) Chapter 14 (commencing with Section 13400) and Chapter 15
(commencing with Section 13700) of Division 5 of the Business and
Professions Code.
  SEC. 2.  Section 227 of the Food and Agricultural Code is amended
to read:
   227.  (a) Notwithstanding any other provision of law, in order to
avoid unnecessary charges and to provide for efficient program
implementation, the fees and assessments required by law to be paid
to the director or the Department of Food and Agriculture Fund to
support the agricultural programs specified in subdivision (b) of
Section 230, except those specified in Article 5 (commencing with
Section 6001) of Chapter 9 of Part 1 of Division 4, Article 8.5
(commencing with Section 6047.1) of Chapter 9 of Part 1 of Division
4, and Chapter 9 (commencing with Section 44971) of Division 17, may
be deposited in the Department of Food and Agriculture Fund, or with
an entity that is (1) a bank or other depository approved by the
Department of Finance, (2) a marketing order board or commission
created pursuant to this code, or (3) another state agency,
designated by the agricultural program's advisory body, if any.  The
fees and assessments required by law to be paid to the Department of
Food and Agriculture Fund in Article 8.5 (commencing with Section
6047.1) of Chapter 9 of Part 1 of Division 4 may be deposited in the
Department of Food and Agriculture Fund, or with an entity that is a
bank or other depository approved by the Department of Finance.  The
director may designate that entity if an advisory body has not been
created by statute for an agricultural program.  All unencumbered
funds in the Department of Food and Agriculture Fund and the
Agriculture Trust Fund, including income therefrom, that have been
collected pursuant to the agricultural program may also be deposited
with the designated entity.
   (b) The funds deposited with the designated entity shall be
expended exclusively for the purpose of implementing and continuing
the agricultural program for which they were collected.
   (c) Prior to the deposit of any funds with an entity designated
pursuant to subdivision (a), the entity shall enter into an agreement
with the department that shall include, but not be limited to, all
of the following requirements:
   (1) The entity shall serve as custodian for the safekeeping of the
funds.
   (2) Funds deposited with the entity shall be encumbered for the
exclusive purpose of implementing and continuing the agricultural
program for which they were collected.
   (3) Funds deposited with the entity shall be subject to an audit
at least once every two years by an auditor selected by the director.
  A copy of the audit shall be provided to the director within 30
days of completion of the audit.
   (4) The department shall be reimbursed for all expenses it incurs
that are reasonably related to implementing and continuing the
agricultural program for which the funds were collected in accordance
with the agreement.  With respect to the agricultural program
created in Article 8.5 (commencing with Section 6047.1) of Chapter 9
of Part 1 of Division 4, the department shall be limited to those
expenditures permitted under Section 6047.12.  When practicable, as
determined by the department, the designated entity shall deposit
advance payments for these expenses with the department.
   (5) The entity shall maintain a reserve in an amount sufficient to
pay for costs arising from unanticipated occurrences associated with
the administration of the program.  Provided that, with respect to
the agricultural program created in Article 8.5 (commencing with
Section 6047.1) of Chapter 9 of Part 1 of Division 4, the reserve
shall include only an amount sufficient to pay for costs associated
with the administrative expenditures described in Section 6047.12,
and may be expended annually for those purposes.
   (d) In transferring funds from the department to any entity
pursuant to subdivision (a), the director shall not be personally
liable in any way for errors in judgment, mistakes, or other acts,
either by commission or omission, except for his or her own
individual acts of dishonesty or crime.
  SEC. 3.  Article 8.5 (commencing with Section 6047.1) is added to
Chapter 9 of Part 1 of Division 4 of the Food and Agricultural Code,
to read:

      Article 8.5.  Pierce's Disease and the Glassy-winged
Sharpshooter

   6047.1.  The Legislature finds and declares the following:
   (a) The state's agricultural business economy could be seriously
damaged if measures are not taken to prevent the transmittal of plant
killing bacteria that cause Pierce's disease, and its vectors,
particularly the Glassy-winged Sharpshooter.  Furthermore, progress
made by winegrape growers and others in the adoption of integrated
pest management and sustainable farming practices are threatened if
this pest becomes established.
   (b) The funding to accomplish the purposes of this article shall
be derived from an assessment on all grapes grown in California and
crushed for wine, wine vinegar, juice concentrate, or beverage
brandy.
   (c) This article is not intended to establish a precedent, or to
supersede, or to reduce or in any way alter government funding of the
effort to combat Pierce's disease and other pests in this state.
   (d) The purposes of this article are enhanced by the many and
varied efforts of other agricultural commodities' industries to
combat this bacteria and its vectors.
   (e) This article is enacted for the protection of the winegrape
industry and is also declared to be enacted in the public interest
and in the exercise of the police power of the state for the purpose
of protecting the health, peace, safety, and general welfare of the
people of this state.
   (f) The assessments shall be collected and expended for purposes
consistent with Section 6046.
   6047.2.  For the purposes of this article, the following
definitions shall govern its construction:
   (a) "Board" means the Pierce's Disease and Glassy-winged
Sharpshooter Board.
   (b) "Department" means the Department of Food and Agriculture.
   (c) "Marketing season" begins July 1 of each year and ends June 30
of the next year.
   (d) "Producer" means a grower, including a cooperative, of grapes
in California for wine, wine vinegar, juice, concentrate, or beverage
brandy.
   (e) "Processor" means a processor who crushes grapes in California
for wine, wine vinegar, juice, concentrate, or beverage brandy.
   (f) "Person" means a producer, processor, or any other entity that
holds title to grapes subject to assessment.
   (g) "Purchase" means the taking by sale, discount, negotiation,
mortgage, pledge, lien, issue or reissue, gift, or any other
voluntary transaction creating an interest in property.  For purposes
of this paragraph, "sale" shall consist of the passing of title from
the seller to the buyer for a price.
   (h) "Purchased grapes" means grapes grown in California, crushed
by a processor for wine, wine vinegar, juice, concentrate, or
beverage brandy, and purchased from a person considered a separate
entity from the purchaser.
   (i) "Grapes not purchased" means all other grapes grown in
California and crushed by a processor for wine, wine vinegar, juice,
concentrate, or beverage brandy, including, but not limited to, the
following:
   (1) Grapes grown by a person who is not considered a separate
entity from the processor or who is a member of the processor
cooperative.
   (2) Grapes not purchased and crushed to the account of a person
who retains ownership of the grapes.
   (j) "Secretary" means the Secretary of Food and Agriculture.
   6047.3.  (a) Within 90 days after the effective date of this
section, the secretary shall create in the department the Pierce's
Disease and Glassy-winged Sharpshooter Board, which shall consist of
at least 14, but not more than 15 members, of which eight shall be
representatives of producers who are not also processors and six
shall be representatives of processors who are also producers.
   (b) The secretary shall appoint the members of the board from
recommendations received from the industry.  In making the
appointments, the secretary shall select no more than one person from
a producer or processor entity and shall ensure that there is
representation on the board from each of the major grape production
areas in the state.
   (c) The secretary may appoint one additional member to the board,
from nominees received from the board, who shall serve as the public
member.  The public member shall represent the interests of the
public in all matters coming before the board and shall have the same
voting and other rights and immunities as other members of the
board.
   (d) The secretary and other appropriate individuals, as determined
by the board, shall be nonvoting ex officio members of the board.
   (e) It is hereby declared, as a matter of legislative
determination, that persons appointed to the board are intended to
represent and further the interests of the industry concerned, and
that this representation and furtherance is intended to serve the
public interest.  Accordingly, the Legislature finds that, with
respect to persons who are appointed to the board, the industry
concerned is tantamount to, and constitutes, the public generally
within the meaning of Section 87103 of the Government Code.
   6047.4.  (a) The powers of the board shall be the following:
   (1) Submit recommendations to the secretary on, but not limited
to, the following:
   (A) Selection of officers.
   (B) Terms of office for board members.
   (C) Annual assessment rate.
   (D) Annual budget.
   (E) Expenditures authorized under Section 6047.5.
   (2) Receive money from the assessment and other sources.
   (3) Adopt, amend, and rescind all proper and necessary bylaws and
procedures.
   (b) A majority of the members of the board shall constitute a
quorum of the board.  The vote of a majority of the members present
at a meeting at which there is a quorum constitutes an act of the
board, except for actions taken pursuant to subdivision (a) of
Section 6047.7, which shall require a majority of the vote of the
board.  The board may continue to transact business at a meeting
where a quorum is initially present, notwithstanding the withdrawal
of members, provided any action is approved by the requisite majority
of the required quorum.
   (c) As authorized by the board, members of the board may receive
per diem and mileage in accordance with the rules of the Department
of Personnel Administration for attendance at meetings and other
approved board activities.
   6047.5.  (a) Expenditure of the funds pursuant to this article
shall be restricted to the following:
   (1) Reasonable administrative expenses of the board and the
department, subject to the limitation in Section 6047.12.
   (2) The collection, enforcement, deposit, and handling of the
assessments.
   (3) Subject to subdivision (d) of Section 6047.1, research and
other activities related to the transmittal of the plant killing
Pierce's disease bacteria, and its vectors, particularly the
Glassy-winged Sharpshooter, including, but not limited to, research
of integrated pest management and other sustainable industry
practices.
   (b) Except as provided in subdivision (c), data and related
information and materials produced during the course of research
conducted pursuant to this article that are in the possession of the
department, the board, or any entity engaged in research funded
pursuant to this article, shall be confidential and shall not be
released for any purpose, except to the extent that they are included
in any final publication of research, or except when required by a
court order after a hearing in a judicial proceeding involving this
article.
   (c) The restrictions in this section shall not apply to research
conducted by the University of California, except to the extent that
they are consistent with the university's policies on sponsored
research and publication, which may allow for, among other things, a
short period of review by the board in advance of publication.
   (d) Processors subject to this article and expenditure of the
funds collected pursuant to this article are subject to audit by the
department.
   6047.6.  The secretary shall accept the recommendations of the
board unless he or she determines that the recommendations are not
practicable or in the interest of the industry and the public. The
secretary shall provide the board with a written statement of the
reasons for his or her decision if the secretary does not accept a
recommendation of the board.
   6047.7.  During the first marketing season, beginning July 1,
2001, and ending June 30, 2002, the annual assessment shall be three
dollars ($3) for each one thousand dollars ($1,000) assessed pursuant
to Section 6047.9 for all grapes subject to assessment under this
article.  The department shall notify each processor of the
established assessment as soon as practicable.  For each marketing
season thereafter the following shall apply:
   (1) An annual assessment shall be recommended by the board and
submitted to the department for approval in an amount not to exceed
three dollars ($3) for each one thousand dollars ($1,000) assessed
pursuant to Section 6047.9 for all grapes subject to assessment under
this article.
   (2) The department shall notify each processor of the established
assessment rate by July 15, or as soon thereafter as possible.
   (b) In no event shall there be an assessment on the following:
   (1) Material other than grapes, and defects, or other weight
adjustments deducted from the gross weight ticket.
   (2) Any raisin-distilling material.
   (3) Grapes for which an assessment has been withheld, paid, or is
already owed.
   6047.8.  (a) The assessment is the obligation of the producer.
   (b) For purchased grapes, the processor who purchases the grapes
shall act on behalf of the person from whom the grapes were purchased
in collecting and remitting the assessment, shall deduct the
assessment from moneys owed by the processor, and shall pay the
assessment as provided in this article.
   (c) For grapes not purchased, the processor who crushes the grapes
shall do the following:
   (1) Charge the person who retains ownership of the grapes the
assessment and pay the assessment as provided in this article.
   (2) Be responsible for the remittance of the assessment for the
crushing of grapes from persons not considered a separate entity from
the processor.
   6047.9.  (a) For purposes of calculating the amount to be
collected by the processor for purchased grapes, the assessment shall
be based on the gross dollar value of the grapes, which is the gross
dollar amount payable for the grapes before any deductions for
governmental assessments and fees.
   (b) For purposes of calculating the assessment for grapes not
purchased, the assessment shall be based on the following:
   (1) The tonnage of grapes delivered less material other than
grapes and defects or other weight adjustments deducted from gross
weight.
   (2) The weighted average price per ton delivered basis purchased
from all nonrelated sources for wine, concentrate, juice, vinegar,
and beverage brandy by processors, by type, variety and reporting
district where grown for the grapes delivered, sources as reported by
the secretary pursuant to Section 55601.5 for the immediately
preceding marketing season.
   6047.10.  (a) All assessments payable under this article shall be
remitted to the department no later than January 10 of each year.
The department shall deposit the assessments remitted in  the
Department of Food and Agriculture Fund.
   (b) In no event shall any proprietary information specified in
Section 6047.13 that is received by the department in collecting
assessments be transferred to the board.
   (c) Processors shall not charge producers an administrative fee
for collecting and remitting assessments.
   6047.11.  Any producer who disputes the amount of the assessment
may file a claim with the department.  The producer shall prove his
or her claim by a preponderance of the evidence.
   6047.12.  (a) Expenditures charged by the department and the board
for administrative purposes shall not exceed a total of 7 percent of
the assessments collected pursuant to this article.  Administrative
purposes shall include, but not be limited to, all auditing expenses
and all costs and attorneys fees resulting from, or relating to,
litigation involving this article against the department, or the
board and its members and agents, and expenses associated with
Section 6047.4 and paragraphs (1) and (2) of subdivision (a) of
Section 6047.5.
   (b) Notwithstanding subdivision (a), the Joint Legislative Audit
Committee and the State Auditor shall maintain independent authority
to audit the expenditure of industry assessments.
   6047.13.  All proprietary information obtained by the board or the
department from producers, processors, or any other source,
including, but not limited to, the names and addresses of all
producers and processors in the possession of the board or the
department are confidential and shall not be disclosed except when
required by a court order after a hearing in a judicial proceeding
involving this article.
   6047.14.  (a) The sole remedy against any producer who fails to
pay the assessment and against any processor who fails to collect and
remit assessments within the time required by the secretary shall be
an action to collect the delinquent assessments and payment to the
secretary a penalty of 10 percent of the amount of the assessment
determined to be due and, in addition, payment to the secretary of
11/2 percent interest per month on the unpaid balance.
   (b) A producer may not bring any claim against a processor for
damages, or otherwise, in connection with the assessment or the
required deduction by the processor of the moneys owed to the
producer as provided in this article.
   6047.15.  Upon termination of this article, and based upon a
recommendation of the board subject to approval by the secretary, any
collected assessments not required to defray financial obligations
incurred pursuant to this article shall be returned on a pro rata
basis to all persons from whom assessments were collected during the
marketing season immediately preceding the date of termination or
paid to any existing state or federal program engaged in disease
prevention or research activities in the grape industry.  The
assessments refunded to processors shall be paid to producers if the
assessment was previously deducted from moneys owed to the producer
by the processor.
   6047.16.  No action in law or equity may be brought against any
members or agent of the board, nor shall any member or agent of the
board be personally liable for the actions of the board or the
department.  No member or agent of the board is responsible
individually in any way to any other person for errors in judgment,
mistakes, or other acts, either of commission or omission, as a
principal, agent, or employee, except for his or her own individual
acts of dishonesty or crime.  No member or agent of the board, is
responsible individually for an act or omission of any other member
or agent of the board, or the department.  Liability is several and
not joint, and no member or agent of the board is liable for the
default of any other member or agent of the board, or the department.

   6047.17.  This article shall not be subject to Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code.
   6047.18.  This article shall be liberally construed.  If any
provision of this article or the application thereof to any person or
circumstances is held to be invalid, the invalidity shall not affect
other provisions or applications of the article which can be given
effect without the invalid provision or application, and, to this
end, the provisions of this article are severable.
   6047.19.  (a) On or before December 31st of every year, the
secretary, after consultation with the advisory board, shall report
on the status of this chapter to the chairs of the policy and fiscal
committees that have the appropriate subject matter jurisdiction in
the Assembly and the Senate.
   (b) The report shall include a financial accounting, including the
distribution of industry assessments and any unexpended amount on
deposit, of the department's efforts to contain Pierce's disease and
its vectors.
   (c) This article shall remain in effect only until March 1, 2006,
and as of that date is repealed, unless a later enacted statute, that
is enacted before March 1, 2006, deletes or extends that date.
  SEC. 4.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order to protect the winegrape industry from the plant killing
Pierce's disease bacteria, and its vectors, it is necessary for this
act to take effect immediately as an urgency statute.