BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1242
                                                                  Page  1

           (Without Reference to File)  

          CONCURRENCE IN SENATE AMENDMENTS
          AB 1242 (Wiggins)
          As Amended March 21, 2002
          2/3 vote.  Urgency
           
           ----------------------------------------------------------------- 
          |ASSEMBLY:  |     |(June 5, 2001)  |SENATE: |32-0 |(March 21,     |
          |           |     |                |        |     |2002)          |
           ----------------------------------------------------------------- 
               (vote not relevant)                
          
           Original Committee Reference:    AGRI.  

           SUMMARY  :  Appropriates $7.14 million of federal funds to the  
          California Department of Food and Agriculture (CDFA) to  
          compensate grape growers for losses resulting from Pierce's  
          disease, provides that these funds be available for expenditure  
          by CDFA until December 31, 2002, and makes legislative findings  
          and declarations.

           The Senate amendments  delete the Assembly version of this bill  
          and instead:

          1)Appropriate $7.14 million of federal funds to be made  
            available until December 31, 2002, to directly compensate  
            growers for vine losses resulting from Pierce's disease and  
            its vector, the glassy-winged sharpshooter.  The funds will be  
            made available to CDFA pursuant to Public Law 106-224 and  
            distributed to growers via individual grants in accordance  
            with current federal guidelines and regulatory criteria.

          2)Prohibit CDFA from using more than 5%, or $357,000 of the  
            total federal funding for administrative costs.

          3)Make the following legislative findings and declarations:

             a)   California is the leading producer of wine in the United  
               States;

             b)   The glassy-winged sharpshooter is a potent vector for  
               Pierce's disease, which harms vines by shutting down the  
               plant's ability to consume water and nutrients; and,









                                                                  AB 1242
                                                                  Page  2

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

           EXISTING LAW  :

          1)Authorizes CDFA to administer the Pierce's Disease Control  
            Program for the purpose of combating Pierce's disease and its  
            vectors.  (Food & Agriculture Code  6046)

          2)Authorizes the United States Food and Drug Administration  
            (FDA) and the United States Department of Agriculture (USDA)  
            to distribute $7.14 million in federal funds to indemnify  
            winegrape growers for losses occurring from the spread of  
            Pierce's disease by the glassy-winged sharpshooter.  (H.R.  
            2213)

           AS PASSED BY THE ASSEMBLY  , this bill created 'The Farm Futures  
          Act of 2001', made findings and declarations regarding the  
          importance of family farms, and appropriated funding for the  
          collaboration and education of intergenerational farmers in  
          order to promote farm preservation in California.

           FISCAL EFFECT  :  Out of the total $7.14 federal funding, $6.783  
          million will be distributed to growers and $357,000 will be used  
          by CDFA to administer this program.

           COMMENTS  :  There is an urgent need for this measure in order to  
          accommodate USDA's budget cycle, as well as to comply with  
          constraints due to the glassy-winged sharpshooter's biological  
          cycle.  These funds will be made available to compensate  
          winegrape growers for voluntarily removing vines that have been  
          affected due to Pierce's disease spread by the glassy-winged  
          sharpshooter.  Elimination of these plants aids the entire state  
          in its efforts to contain the spread of this disease.       

          CDFA estimates it will need 5% of the total federal funding to  
          cover the costs of administrative work (developing criteria,  
          working with USDA to get criteria approved) and increased  
          workload by the County Agricultural 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  
          funds left over will be made available for grants.  
           









                                                                 AB 1242
                                                                  Page  3

          Analysis Prepared by  :  Dawn Clover / AGRI. / (916) 319-2084


                                                               FN: 0004260