BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          SB 707 (Cannella)
          
          Hearing Date: 5/16/2011         Amended: 5/4/2011
          Consultant: Bob Franzoia        Policy Vote: Agriculture 7-0
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          BILL SUMMARY: SB 707 would include olive trees within the plants 
          are that subject to an annual assessment of one percent on the 
          gross sales.  The assessment is paid into the State Treasury and 
          shall be credited to the Department of Food and Agriculture 
          Fund, a continuously appropriated fund.  By depositing 
          additional money into a continuously appropriated fund, this 
          bill makes an appropriation. This bill would extend membership 
          on the board to include representatives of licensed olive 
          nursery stock producers.
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                            Fiscal Impact (in thousands)

           Major Provisions         2011-12      2012-13       2013-14     Fund
           Agricultural special   No new costs; estimated revenue of 
          ($20)Special*
          assessment             annually                             

          * Department of Food and Agriculture Fund
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          STAFF COMMENTS:

          The board, which does not have a formal name, is established in 
          statute in Section 6988 of the Food and Agriculture Code.  
          Membership on the board shall consist (currently) of 11 
          representatives, a majority of whom are licensed producers of 
          pome, stone, nut, and grape nursery stock, but also users and a 
          public member as follows:
          (1) Two each from the stone fruit (including almonds), pome 
          fruit, and nut (other than almond) industries.
          (2) Four from the grape industry.
          (3) One public representative.

          This bill would revise (1) to be two each from the stone fruit 
          (including almonds) and nut (other than almond) industries and 








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          add and renumber (3) to read: one each from the pome fruit and 
          olive industries.

          Board members shall represent all areas of the state involved in 
          the production of pome and stone fruit trees, nut trees, and 
          grapevines.

          The one percent assessment on fruit and nut trees in 2009 was 
          $663,040.  Preliminary information indicates there were 
          approximately 31,000 acres of olive trees in 2009, or slightly 
          less than three percent of the total acreage dedicated to fruit 
          and nut trees.