BILL ANALYSIS
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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
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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
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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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