BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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          |SENATE RULES COMMITTEE            |                  AB 1242|
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                                 THIRD READING


          Bill No:  AB 1242
          Author:   Wiggins (D), et al
          Amended:  3/14/02 in Senate
          Vote:     27 - Urgency

           
           SENATE AG. & WATER RESOURCES COMMITTEE  :  9-0, 3/4/02
          AYES:  Costa, Alpert, Battin, Bowen, Johannessen, Kuehl,  
            Machado, Poochigian, Torlakson

           SENATE APPROPRIATIONS COMMITTEE  :  10-0, 3/11/02
          AYES:  Alpert, Battin, Bowen, Escutia, Johannessen,  
            Karnette, McPherson, Murray, Perata, Poochigian


           SUBJECT  :    Pest control:  glassy-winged sharpshooter

           SOURCE  :     California Association of Winegrape Growers
                      Wine Institute


           DIGEST  :    This bill (1) appropriates $7.14 million of  
          federal funds to the State Department of Food and  
          Agriculture (DFA) to indemnify grape growers for vine  
          losses resulting from Pierce's disease spread by the  
          glassy-winged sharpshooter, (2) provides that the funds be  
          available for expenditure by DFA until September 30, 2003,  
          and (3) makes legislative findings and declarations.

           ANALYSIS  :    SB 671 (Chesbro), Chapter 21, Statutes of  
          2000, created the Pierce's Disease Control Program within  
          the DFA.  The program's goal is to eradicate Pierce's  
          disease and its vector glass-winged sharpshooter.

                                                           CONTINUED





                                                               AB 1242
                                                                Page  
          2

          Congress passed a measure appropriating $7.14 million in  
          funds to indemnify winegrape growers for losses occurring  
          from the spread of Pierce's disease by the glassy-winged  
          sharpshooter.  Specifically, the federal legislation  
          appropriates funds allocated by the federal government to  
          California through H.R. 2213 to be distributed by DFA.

          This bill makes the following legislative findings and  
          declarations:

          1.California is the leading producer of wine in the United  
            States.

          2.The glassy-winged sharpshooter is a potent vector for  
            Pierce's disease, which harms vines.

          3.The destruction of millions of dollars of vines has led  
            to economic hardship in rural communities.

          This bill appropriates federal funds to be made available,  
          until September 30, 2003, subject to Public Law 106-224,  
          and subject to regulations, to directly compensate growers  
          for vine losses resulting from Pierce's disease spread by  
          the glassy-winged sharpshooter via individual grants.

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes    
          Local:  No

           Major Provisions                2002-03          20030-04         
            2004-05           Fund

           Grape Growers Grants*     $6,440                             
                                   Federal

          DFA Admin Costs*           $   700                           
                                     Federal

          *The total grant is $7.14 million for both grants and  
          "reasonable and necessary" administrative costs.  DFA  
          estimates it will cost approximately $700,000 to administer  
          this program.  
           
          According to the Senate Appropriations Committee analysis,  
          these funds are made available by the USDA only to  







                                                               AB 1242
                                                                Page  
          3

          compensate for vine losses and the agreement between USDA  
          and DFA explicitly prohibits these funds to be used to  
          compensate growers for grape production losses.  These  
          federal funds can only be expended by DFA to indemnify  
          grape growers for vine losses due to Pierce's disease that  
          was spread by the glassy-winged sharpshooter.

          The federal conveyance allows DFA to deduct "reasonable"  
          amounts to cover the administration of these grants.  DFA  
          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.  

          These funds must be distributed by DFA by September 30,  
          2002.

           SUPPORT  :   (Verified  3/14/02)

          California Association of Winegrape Growers (co-source)
          Wine Institute (co-source)
          California Farm Bureau Federation
          Family Winemakers of California



          TSM:cm  3/14/02   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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