BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Kevin de León, 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.