BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          SB 250 (Wolk) - California Olive Oil Commission
          
          Amended: April 10, 2013         Policy Vote: Agriculture 5-0
          Urgency: No                     Mandate: No
          Hearing Date: April 29, 2013    Consultant: Robert Ingenito
          
          This bill does not meet the criteria for referral to the  
          Suspense File.


          Bill Summary: SB 250 would create the Olive Oil Commission of  
          California (commission) and would specify the powers, duties,  
          and responsibilities of the commission.  This commission would  
          be authorized to carry out programs of education, promotion,  
          marketing, and research relating to olive oil. This bill would  
          authorize the commission to levy an annual assessment on  
          producers and handlers of olive oil, and would authorize the  
          expenditure of those funds for purposes of the commission,  
          thereby making an appropriation.  This bill would not become  
          operative until the producers and handlers vote in favor of this  
          bill's provisions.  The commission would be authorized to levy a  
          civil penalty and to bring civil actions to enforce the  
          provisions of this bill.  The commission would be authorized to  
          recommend to the Secretary of Food and Agriculture within the  
          California Department of Food and Agriculture (CDFA) the  
          adoption of olive oil quality standards, product labeling, or  
          marketing activity.

          Fiscal Impact: Because this measure authorizes an industry  
          assessment, it would have no impact on the State's General Fund  
          or CDFA's budget.  If the maximum assessment of $0.25 per gallon  
          is leveled on 2.4 million gallons of olive oil, the commission  
          would receive $600,000 in operating revenue. 

          Related Legislation: AB 2695 (Hernandez), Chapter 605, Statutes  
          of 2010.  Created the California Nursery Producers Commission  
          with prescribed membership, powers, duties, and responsibilities  
          of the commission.  Authorized the commission to engage in  
          outreach, education, promotion, marketing, and research relating  
          to nursery products.

          AB 606 (Ma), Chapter 366, Statutes of 2009.  Created the  








          SB 250 (Wolk)
          Page 1


          California Blueberry Commission with prescribed membership,  
          powers, duties, and responsibility of the commission. Authorized  
          the commission to engage in education, promotion, marketing, and  
          research relating to blueberries.  

          Staff Comments: Current law provides that commissions are  
          industry-funded programs and are assessed through grower and/or  
          handler fees. The industry pays for all costs of the commission,  
          including all costs of government oversight. 

          At present, the State accounts for 99 percent of national olive  
          production, and has roughly 400 growers on approximately 30,000  
          acres dedicated to the production of olive oil.