BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                    THIRD READING


          Bill No:  AB 1642
          Author:   Chesbro (D), et al.
          Amended:  As introduced
          Vote:     21

           
           SENATE AGRICULTURE COMMITTEE  :  5-0, 6/17/14
          AYES:  Galgiani, Cannella, Berryhill, Lieu, Wolk

           SENATE APPROPRIATIONS COMMITTEE  :  6-0, 6/30/14
          AYES:  De Le�n, Walters, Hill, Lara, Padilla, Steinberg
          NO VOTE RECORDED:  Gaines

           ASSEMBLY FLOOR  :  76-0, 5/27/14 - See last page for vote


           SUBJECT  :    Pest control:  Pierces Disease

            SOURCE  :     California Association of Winegrape Growers
                      Family Winemakers of California 
                      Wine Institute 


           DIGEST  :    This bill extends sunset dates for provisions  
          relating to Pierces Disease and the glassy-winged sharpshooter.

           ANALYSIS  :    

          Existing law: 

          1. Establishes the Pierce's Disease Control Program in the  
             Department of Food and Agriculture (DFA), and the Pierce's  
             Disease Management Account (Account) in the Food and  
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             Agriculture Fund. 

          2. Allows money in this Account to be expended as specified to  
             combat Pierce's Disease and its vectors, including the  
             glassy-winged sharpshooter, and for purposes relating to  
             other designated pests and diseases, as provided.  Makes  
             these provisions inoperative on March 1, 2016, and repeals  
             them on January 1, 2017.

          3. Creates in the DFA the Pierce's Disease and Glassy-Winged  
             Sharpshooter Board, which consists of specified members, and  
             prescribes the functions and duties of the Board with respect  
             to implementation of the Pierce's Disease Control Program. 

          4. Provides for an annual assessment to be paid by grape  
             processors, as defined, into the Food and Agriculture Fund  
             for the purposes of, among other things, research and other  
             activities related to the Pierce's Disease Control Program.   
             Repeals these provisions on March 1, 2016.

          This bill:

          1. Updates findings and declarations to increase the value of  
             the California grape industry to $60 billion.

          2. Extends from March 1, 2016, to March 1, 2021, the inoperative  
             date, and from January 1, 2017, to January 1, 2022, the  
             repeal date, of the Account.

          3. Extends from March 1, 2016, to March 1, 2021, the repeal date  
             of the Pierce's Disease and Glassy-Winged Sharpshooter Board,  
             assessment rate, reporting requirements, and other provisions  
             of statute regarding the disease and its vector.

          4. Extends from March 1, 2011, to March 1, 2016, the inoperative  
             date of provisions regarding Pierce's Disease and the  
             glassy-winged sharpshooter, unless a referendum is conducted  
             that results in a favorable vote.

          5. Extends from April 15, 2010, to April 15, 2015, the date that  
             the Secretary of the DFA shall establish a list of persons  
             eligible to vote in said referendum.

          6. Extends the sunset date of the Pierce's Disease Advisory Task  

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             Force from March 1, 2016, to March 1, 2021.

           

          Background
           
          Pierce's Disease is fatal to grapevines and is caused by a  
          bacterium, Xylella fastidiosa, which obstructs the grapevines'  
          water channels and eventually kills the plant by preventing  
          water transport through the vine.  Although Pierce's Disease has  
          been detected in California for over 100 years, it wasn't until  
          the 1990s that it became a serious threat when the glassy-winged  
          sharpshooter, an invasive leafhopper pest, became established in  
          California.  Pierce's Disease is readily spread by leafhopper  
          insects as they feed on grapevines, and the glassy-winged  
          sharpshooter has proven to be an effective transmitter.   
          According to the DFA, Pierce's Disease has been reported in 28  
          counties throughout California and threatens the multi-billion  
          dollar winegrape industry, as well as other crops such as  
          almonds, citrus, and stone fruits, which are susceptible to  
          varying strains of the bacterium.

          To combat this disease/vector complex, a task force was created  
          in 1999 that identified the need to create a statewide  
          eradication and control program, and in 2000 the legislature  
          responded by creating the Pierce's Disease Control Program  
          within the DFA and established a coordinating fund to support  
          research and control efforts.  

          Funding for the Pierce's Disease Control Program is supported  
          through federal, state, and industry sources.  Industry  
          assessment fees are administered by the DFA, whereby California  
          producers of grapes crushed for wine, juice, vinegar,  
          concentrate, or beverage brandy must pay an annual assessment  
          fee capped at $3 per $1000 gross dollar value of grapes  
          assessed.  The Secretary of the DFA, upon recommendation of the  
          Pierce's Disease and Glassy-winged Sharpshooter Board,  
          determines the assessment rate, which is currently set at  
          $0.75/$1000 value.

          There is no known cure for Pierce's Disease.  However, nearly 25  
          years of research have uncovered conventional plant-breeding  
          methods to develop disease-resistant rootstock and grapevines  
          and identified biological control methods.  Researchers are  

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          continuing to develop new technologies to find a solution to  
          Pierce's Disease.

           Related legislation  

          SB 2 (Wiggins, Chapter 325, Statutes of 2009) extended the  
          authorized use of funds within the Account for purposes relating  
          to other pests and diseases and extends sunset dates to 2016 for  
          provisions relating to Pierce's Disease and the glassy-winged  
          sharpshooter.

          SB 1650 (Chesbro, Chapter 485, Statutes of 2004) extended sunset  
          dates to 2011 for provisions relating to Pierce's Disease and  
          the glassy-winged sharpshooter.

          SB 295 (Chesbro, Chapter 12, Statutes of 2005) made conforming  
          changes and clarifies provisions relating to Pierce's Disease  
          and the glassy-winged sharpshooter.

          AB 1394 (Wiggins, Chapter 103, Statutes of 2001) created the  
          Pierce's Disease and Glassy-winged Sharpshooter Board.

          SB 671 (Chesbro, Chapter 21, Statutes of 2000) created the  
          Account within the DFA and appropriates $6.7 million from the  
          General Fund to this account to combat Pierce's Disease or its  
          vectors.

          AB 1232 (Agriculture, Chapter 627, Statutes of 1999)  
          appropriated $750,000 for Pierce's Disease research provided  
          that $250,000 in private contributions is committed from the  
          viticulture and enology industry; creates a task force to advise  
          the Secretary of the DFA on the control and management of  
          Pierce's Disease.

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

          According to the Senate Appropriations Committee, the DFA  
          indicates that annual costs to administer this bill roughly $20  
          million, and are fully funded by federal funds and industry  
          assessments.  The DFA also will incur a one-time cost of about  
          $50,000 related to the Glassy-Winged Sharpshooter Board  
          extension referendum, also covered by industry assessments.


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           SUPPORT  :   (Verified  7/1/14)

          California Association of Winegrape Growers (co-source)
          Family Winemakers of California (co-source)
          Wine Institute (co-source)
          County of Santa Clara

           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          Pierce's Disease is still a threat and this bill extends the  
          operation date of the Pierce's Disease Control Program, allowing  
          the DFA to continue funding programs and research towards  
          stopping the glassy-winged sharpshooter and controlling Pierce's  
          Disease.

          The annual DFA report on Pierce's Disease states that the  
          Pierce's Disease Control Program has served as a model for other  
          pest and disease control programs and has been highly successful  
          over the last 10 years, mainly due to the successful cooperative  
          efforts of state and federal government, winegrape growers, and  
          researchers.  Supporters agree, stating that the program "has  
          been proven to be a successful venture between industry and  
          government.  Through the industry assessment, growers make a  
          commitment to generate revenue that in turn has attracted tens  
          of millions of dollars of federal contributions to fund the  
          fight against Pierce's Disease."

           ASSEMBLY FLOOR  :  76-0, 5/27/14
          AYES: Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,  
            Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian  
            Calderon, Campos, Chau, Ch�vez, Chesbro, Conway, Cooley,  
            Dababneh, Dahle, Daly, Dickinson, Eggman, Fong, Fox, Frazier,  
            Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell,  
            Gray, Grove, Hagman, Hall, Harkey, Roger Hern�ndez, Holden,  
            Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal,  
            Maienschein, Mansoor, Medina, Melendez, Mullin, Muratsuchi,  
            Nazarian, Nestande, Olsen, Pan, Perea, John A. P�rez, V.  
            Manuel P�rez, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas,  
            Skinner, Stone, Ting, Wagner, Waldron, Weber, Wieckowski,  
            Wilk, Williams, Yamada, Atkins
          NO VOTE RECORDED: Donnelly, Patterson, Quirk-Silva, Vacancy


          JL:d  7/1/14   Senate Floor Analyses 


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                           SUPPORT/OPPOSITION:  SEE ABOVE

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