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:  3/21/02 in Senate
          Vote:     27 - Urgency

           
           PRIOR VOTES NOT RELEVANT
           
           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 December 31, 2002,  
          and (3) makes legislative findings and declarations.

           Senate Floor Amendments  of 3/21/02 (1) clarify that DFA may  
          not retain more than five percent of the federal allocation  
          to cover administrative expenses directly related to the  
                                                           CONTINUED





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          program, including department overhead and third-party  
          verifications, and (2) change the date for funds to be  
          available from September 30, 2003 to December 31, 2002.

           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 glassy-winged sharpshooter.

          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 $7.14 million in federal funds to be  
          made available, until December 31, 2002, 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.

          The bill provides that DFA may retain not more than five  
          percent of the federal allocation to cover administrative  
          expenses directly related to the program, including  
          department overhead and third-party verifications.

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

           Major Provisions                2002-03          20030-04         







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            2004-05           Fund

           Grape Growers Grants*     $6,440                             
                                   Federal

          DFA Admin Costs*           $   700                           
                                     Federal

          *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  
          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.

          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.  

           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  3/21/02   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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