BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 707|
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THIRD READING
Bill No: SB 707
Author: Cannella (R) and Wolk (D)
Amended: 5/4/11
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
SUBJECT : Agricultural special assessments
SOURCE : Author
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.
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
California Department of Food and Agriculture (CDFA) to
exempt certain species of pome and stone fruit trees, nut
trees, grapevines, or ornamental varieties, as specified,
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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.
Additionally, this bill extends the membership of the Fruit
Tree, Nut Tree and Grapevine Improvement Advisory Board
(IAB) to representatives from the olive industry.
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.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13
2013-14 Fund
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Agricultural special no new costs; estimated
revenue of Special*
assessment ($20) annually
* Department of Food and Agriculture Fund
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.
SUPPORT : (Verified 5/17/11)
California Olive Oil Council
Duarte Nursery
Santa Cruz Olive Tree Nursery
Sunridge Nurseries
The Burchell Nursery, Inc.
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 and that California will have a healthy olive
industry.
MEL:mw 5/17/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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