BILL ANALYSIS                                                                                                                                                                                                    



                                                                            
         AB 1242
                                                                Page  1

        CONCURRENCE IN SENATE AMENDMENTS
        AB 1242 (Wiggins)
        As Amended March 21, 2002
        2/3 vote.  Urgency
         
         
         ---------------------------------------------------------------------- 
        |ASSEMBLY: |     |(June 5, 2001)  |SENATE: |33-0 |(March 21, 2002)     |
         ---------------------------------------------------------------------- 
             (vote not relevant)


         ------------------------------------------------------------------------ 
        |COMMITTEE VOTE:  |13-0 |(March 21, 2002)    |RECOMMENDATION: |concur    |
        |                 |     |                    |                |          |
         ------------------------------------------------------------------------ 

        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;









                                                                            
         AB 1242
                                                                Page  2

           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,

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

         EXISTING FEDERAL LAW  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. 
         
        EXISTING LAW  authorizes CDFA to administer the Pierce's Disease  
        Control Program for the purpose of combating Pierce's disease and  
        its vectors.  

         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: 0004265