BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           2 (Wiggins)
          
          Hearing Date:  5/4/2009         Amended: 3/19/2009
          Consultant:  Bob Franzoia       Policy Vote: Ag 5-0
          _________________________________________________________________ 
          ____
          BILL SUMMARY: SB 2 would do the following:
          - Extend from 2011 to 2016, the Pierce's Disease Control Program  
          within the Department of Food and Agriculture.
          - Delete the requirement that General Funds designated for  
          research can only be expended when nonstate revenue sources  
          provide a 25 percent match.
          - Expand the research program to include designated new pests  
          and diseases affecting grapes grown in California.
          - Authorize the Pierce's Disease and Glassy-winged Sharpshooter  
          Board to make recommendations to the Department of Food and  
          Agriculture that a pest or disease be designated as a new pest  
          or disease and that money should be expended on research and  
          outreach.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
           Sunset extension       $2,050     $4,100      $4,100    General/
                                 $1,700     $2,400      $2,400    Special*

          Expansion of research  Unknown, potentially major cost  
          pressureGeneral/
          program                                                 Special*

          * Pierce's Disease Management Account (6064-3010) - in 2008, the  
          program received $22,500 in federal funds
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: This bill meets the criteria for referral to the  
          Suspense File.
          
          The current Pierce's Disease research program is funded by a  
          combination of General Funds, special funds (industry  
          assessment) and federal funds.  Both General Fund and special  
          support has decreased since the program was established by  










          Chapter 103/2001 (AB 1394, Wiggins).  Federal funding greatly  
          exceeds state and industry support for the program.  A reduction  
          in state or industry funding for the program may result in  
          reduced federal support.  Preliminary information suggests  
          research generated by the program is successful though the  
          benefits of that research are several years out.

          Staff notes that to the extent the program potentially increases  
          the amount of General Funds that may be expended on research  
          before nonstate sources are committed or for research on new  
          designated pests and diseases affecting grapes grown in the  
          state, there could be increased General Fund costs and  
          pressures.  In order to limit these costs and pressures, staff  
          recommends the bill be amended, as follows:

                                     Amendment 1

          Page 2
          SB 2 (Wiggins)

                             On page 3, lines 10 to 19:

               (2) The account shall consist of money transferred from the  
          General Fund and money made available from federal, industry,  
          and other sources.  Money made available from federal, industry,  
          and other sources shall be available for expenditure without  
          regard to fiscal year for the purpose of combating Pierce's  
          disease or its vectors and for the purpose described in Section  
          6047.30.  State general funds to be utilized for research shall  
          only be expended when the secretary has received commitments  
          from nonstate sources for at least a 25 percent match for each  
          state dollar to be expended.

          (This amendment would restore the last sentence of the above  
          paragraph which the March 19, 2009 version of the bill would  
          strike.)

                                     Amendment 2

                         On page 9, revise line 27 to read:
          that no General Fund money should be expended after March 1,  
          2011 on new research and outreach programs