BILL ANALYSIS
Appropriations Committee Fiscal Summary
1242 (Wiggins)
Hearing Date: 3/11/02 Amended: 2/4/02
Consultant: Miriam B. Ingenito Policy Vote:
9-0
____________________________________________________________
___
BILL SUMMARY: AB 1242, and URGENCY measure, appropriates
$7.14 million of federal funds to the California Department
of Food and Agriculture (CDFA) to indemnify grape growers
for vine losses resulting from Pierce's disease spread by
the glassy-winged sharpshooter.
Fiscal Impact (in thousands)
Major Provisions 2002-03 2003-04
2004-05 Fund
Grape Growers Grants* $6,440 Federal
CDFA Admin. Costs* $700 Federal
_________
*The total federal grant is $7.14 million for both grants and
"reasonable and necessary" administrative costs. CDFA estimates it
will cost approximately $700 thousand to administer this program.
STAFF COMMENTS: This bill meets the criteria for referral
to the Suspense file. AB 1242, an urgency measure,
directs CDFA to distribute these funds via grants in
accordance with criteria established by the department that
is consistent with federal guidelines. These funds are
made available by the USDA only to compensate for vine
losses and the Agreement between USDA and CDFA explicitly
prohibits these funds to be used to compensate growers for
grape production losses. These federal funds can only be
expended by the CDFA to indemnify grape growers for vine
losses due to Pierce's disease that was spread by the
glassy-winged sharpshooter.
The federal conveyance allows for CDFA to deduct
"reasonable" amounts to cover the administration of these
grants. CDFA estimates it will need approximately $700,000
to cover the costs of administrative work (developing
criteria, working with USDA to get criteria approved) and
increased workload by the County Agriculture Commissioners
and the University of California Cooperative Extension Farm
Advisor that would be required to analyze the applications
and may be required to do additional inspections to verify
claims. Any unexpended funds set aside for administration
will be made available for grants.
AB 1242 is an urgency measure because these funds must be
distributed by CDFA by September 30, 2002.
AMENDMENTS: The author will offer amendments in committee
to specify the amount of federal funds available and add
co-authors.