BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 707
                                                                  Page  1

          Date of Hearing:   June 29, 2011

                          ASSEMBLY COMMITTEE ON AGRICULTURE
                              Cathleen Galgiani, Chair
                 SB 707 (Cannella/Wolk) - As Amended:  June 21, 2011

           SENATE VOTE  :   33-2 
           
          SUBJECT  :  Agricultural Special Assessment: olive trees.

           SUMMARY  :  This bill adds olive trees, except for ornamental 
          olive trees, to the tree types that a special assessment is paid 
          on to fund research, provides virus tested and disease free 
          stock, true-to-type validations, and authorizes contacting for 
          research.  Further, it adds a licensed olive nursery 
          representative to the program's advisory board, reduces the pome 
          fruit representation from two to one, and makes technical 
          conforming changes. 

           EXISTING LAW  authorizes a 1% assessment be leveled on the gross 
          sales of all deciduous pome and stone fruit trees, nut trees, 
          and grapevine, including seeds, seedlings, rootstocks, and 
          topstock, also including specified ornamental varieties, 
          produced and sold within the state or produced within and 
          shipped from the state by any licensed nursery dealer, as 
          specified.  Establishes timing of assessment; defines gross 
          sales for assessment purposes; limits assessment use to solely 
          support programs described; authorizes the California Department 
          of Food and Agriculture (CDFA) to enter into agreements with any 
          specified research agency for the development of planting 
          materials for pome and stone fruit, nut tree and grapevine 
          productions.

          Creates an industry advisory board to assist and advise CDFA on 
          the implementation of this research and programs.  Designates 
          that CDFA, in consultation with the specified industry, to 
          appoint a board of 11 representatives, a majority being licensed 
          producers of pome, stone, nut and grape nursery stock; it is to 
          also include users and a public member and are to represent all 
          production areas of specified species in the state.  Specifies 
          length of appointed terms and number of terms permitted.  
          Requires board to meet at least twice a year and provides for 
          per diem for attending members.  Requires the board to review 
          and make recommendations to CDFA on program operations, fiscal 
          expenditures, assessments and proposals regarding planting 








                                                                  AB 707
                                                                  Page  2

          materials.

           FISCAL EFFECT  :  According to the Senate Committee on 
          Appropriations, there are no new costs, and the special 
          assessment on olive stock would generate approximately $20,000 
          per year, going to Special Funds.

           COMMENTS :  This special assessment and advisory board was 
          authorized by the Legislature in 1987 to address concerns over 
          rootstock diseases and the propagation of clean and healthy 
          plant material.   The advisory board is known as the Fruit Tree, 
          Nut Tree and Grapevine Improvement Advisory Board (IAB).  Since 
          the inception of the IAB, CDFA has developed registration and 
          certification services for the following: avocado, citrus, 
          deciduous fruit and nut trees, seed garlic, grapevine, and 
          strawberry nursery stock and nematode certification for nursery 
          stock produced for farm planting.  Significant research has been 
          conducted to reduce and eliminate certain diseases and problems 
          in farm plantings of nursery stock.

          The University of California, Davis, is the home of the 
          Foundation Plant Services (FPS) program.  This program produces, 
          tests, maintains and distributes to California nurseries, 
          foundation-level plant materials that are disease-free, 
          virus-tested and certified as true-to-type.  CDFA participates 
          in the cooperative oversight of the FPS program with the United 
          States Department of Agriculture and the industry.  Most of the 
          assessed funds from this program are used in support of the FPS 
          program.

          Supporters of this bill state that adding olives to the FPS 
          program provides California nurseries with plant materials that 
          are disease-free and certified as true-to-type.  Over the past 
          five years, olive oil plantings have increased significantly and 
          approach the largest in state history.  Further, the addition of 
          olives to the IAB allows the study of diseases such as 
          verticillium wilt, which has prevented olives from being planted 
          in large areas of the Central Valley.  The inclusion of olive 
          trees in the IAB will help ensure that nurseries and olive 
          farmers have certified disease-free trees that are true-to-type, 
          and that California will have a healthy olive industry.  
          Further, with the increasing number of varietal specific oils 
          being produced and marketed, the true-to-type validation has an 
          increasing importance to farmers and consumers.









                                                                  AB 707
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           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          California Olive Oil Council
          Duarte Nursery
          Santa Cruz Olive Tree Nursery
          Sunridge Nurseries
          The Burchell Nursery, Inc.
          The University of California
          Vintage Nurseries
           
            Opposition 
           
          None on file.


           Analysis Prepared by  :    Jim Collin / AGRI. / (916) 319-2084