BILL ANALYSIS �
------------------------------------------------------------
|SENATE RULES COMMITTEE | SB 707|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
UNFINISHED BUSINESS
Bill No: SB 707
Author: Cannella (R) and Wolk (D)
Amended: 6/21/11
Vote: 21
SENATE AGRICULTURE COMMITTEE : 7-0, 5/3/11
AYES: Cannella, Rubio, Berryhill, Evans, La Malfa, Vargas,
Wolk
SENATE APPROPRIATIONS COMMITTEE : 9-0, 5/16/11
AYES: Kehoe, Walters, Alquist, Emmerson, Lieu, Pavley,
Price, Runner, Steinberg
SENATE FLOOR : 33-2, 5/31/11
AYES: Alquist, Calderon, Cannella, Corbett, De Le�n,
DeSaulnier, Dutton, Emmerson, Evans, Fuller, Gaines,
Hancock, Hernandez, Huff, Kehoe, La Malfa, Leno, Lieu,
Liu, Lowenthal, Negrete McLeod, Padilla, Pavley, Price,
Rubio, Runner, Simitian, Steinberg, Vargas, Walters,
Wolk, Wright, Yee
NOES: Anderson, Correa
NO VOTE RECORDED: Berryhill, Blakeslee, Harman,
Strickland, Wyland
ASSEMBLY FLOOR : 69-8, 8/29/11 - See last page for vote
SUBJECT : Agricultural development
SOURCE : Author
CONTINUED
SB 707
Page
2
DIGEST : This bill includes olive trees in the existing
one percent gross sales fee assessment, and extends the
membership of the Fruit Tree, Nut Tree and Grapevine
Improvement Advisory Board to representatives from the
olive industry.
Assembly Amendments authorize the Department of Food and
Agriculture (CDFA) to enter into agreements relating to
olive tree production and requires the Secretary of CDFA to
consult with the olive industry in appointing the Fruit
Tree, Nut Tree and Grapevine Improvement Advisory Board.
ANALYSIS : Existing law assesses a one percent fee
annually on gross sales of all deciduous pome and stone
fruit trees, nut trees, and grapevines, with certain
exceptions. Existing law allows the Secretary of the CDFA
to exempt certain species of pome and stone fruit trees,
nut trees, grapevines, or ornamental varieties, as
specified, from the assessment.
This bill includes olive trees within the plants subject to
the assessment and provides that ornamental varieties of
olive trees would be eligible for the exemption.
Existing law authorizes the CDFA to enter into agreements
with the University of California, any commissioner, and
any qualified research agency, to assist in development of
planting material for pome and stone fruit, nut tree, and
grapevine production, and requires the agreements to
provide for payment for services rendered from fees
collected, as specified.
This bill authorizes the CDFA to enter into agreements to
assist in the development of planting material for olive
tree production.
Existing law creates an industry advisory board to assist
and advise CDFA on the implementation of this research and
programs. Designates that CDFA appoint a board, in
consultation with the specified industry, with a majority
being licensed producers of pome, stone, nut and grape
nursery stock.
This bill extends the membership of the Fruit Tree, Nut
CONTINUED
SB 707
Page
3
Tree and Grapevine Improvement Advisory Board (IAB) to
representatives from the olive industry and requires the
Secretary of the CDFA to consult with the olive industry in
appointing the IAB.
Background
In 1988, the Legislature created the IAB with the primary
purpose of conducting research to further the interests of
the industry. The IAB is funded by an industry assessment
of one percent of gross sales on all deciduous pome and
stone fruit trees, nut trees, and grapevines including
seeds, seedlings, rootstocks and topstock.
The CDFA Secretary, upon consultation with the industry,
appoints an IAB board to provide assistance concerning the
implementation of this program. The board consists of 11
members serving two-year terms, with a maximum of three
consecutive terms.
The University of California, Davis is the home of the
Foundation Plant Services (FPS) program. The FPS 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. Certain funds from the IAB are used in
support of the FPS program.
Comments
According to the Assembly Appropriations Committee, the
existing one percent assessment on fruit tree, nut trees,
and grapevines in 2010 generated $1.2 million in funding
for the IAB. Olives are a modest but growing sector of
California agriculture. In 2009, there were
approximately 31,000 acres of olive trees, or slightly
less than three percent of the total acreage dedicated to
fruit and nut trees. Including olive trees in the
assessment will likely generate an additional $20,000 in
revenue for the program.
Related legislation . SB 818 (Wolk) redefines California's
CONTINUED
SB 707
Page
4
olive oil labeling requirements to conform to United States
labeling standards as outlined in the U.S. Standards for
Grades of Olive Oil and Olive-Pomace oil published in the
Federal Register that took effect on October 25, 2010
(federal regulations).
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 8/25/11)
California Olive Oil Council
Duarte Nursery
Santa Cruz Olive Tree Nursery
Sunridge Nurseries
The Burchell Nursery, Inc.
University of California
Vintage Nurseries
ARGUMENTS IN SUPPORT : Supporters of this bill state that
adding olives to the Foundation Plant Services 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 grown toward 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.
ASSEMBLY FLOOR : 69-8, 8/29/11
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson,
Eng, Feuer, Fletcher, Fong, Fuentes, Furutani, Beth
Gaines, Galgiani, Garrick, Gatto, Gordon, Hagman, Hall,
CONTINUED
SB 707
Page
5
Harkey, Hayashi, Roger Hern�ndez, Hill, Huber, Hueso,
Huffman, Jeffries, Lara, Bonnie Lowenthal, Ma, Mendoza,
Miller, Mitchell, Monning, Nestande, Nielsen, Olsen, Pan,
Perea, V. Manuel P�rez, Portantino, Skinner, Smyth,
Solorio, Swanson, Torres, Valadao, Wagner, Wieckowski,
Williams, Yamada, John A. P�rez
NOES: Donnelly, Grove, Jones, Knight, Logue, Mansoor,
Morrell, Norby
NO VOTE RECORDED: Gorell, Halderman, Silva
MEL:mw 8/30/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****
CONTINUED