BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                  SB 1415|
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                                    CONSENT


          Bill No:  SB 1415
          Author:   Wolk (D)
          Amended:  As introduced
          Vote:     21

           
           SENATE AGRICULTURE COMMITTEE  :  7-0, 4/17/12
          AYES:  Cannella, Rubio, Berryhill, Evans, La Malfa, Vargas, 
            Wolk

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


           SUBJECT  :    Olive trees:  annual assessment:  exemptions

           SOURCE  :     Author


           DIGEST  :    This bill specifies that the Secretary of the 
          Department of Food and Agriculture (DFA) may exempt 
          varieties of olive trees from the 1% assessment of gross 
          sales on all deciduous pome and stone fruit trees, nut 
          trees, olive trees and grapevines if the assessment does 
          not provide any benefit to the varieties.

           ANALYSIS  :    Existing law allows the Secretary of DFA to 
          exempt certain species of pome and stone fruit trees, nut 
          trees, olive trees, grapevines, or ornamental varieties 
          from the assessment of 1% of gross sales.

          This bill removes species of olive trees from the plants 
          that the Secretary may exempt from the assessment and 
          instead allows the Secretary to exempt certain varieties of 
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          olive trees from the assessment.  This bill also makes a 
          clarifying change.

           Background  

          The Fruit Tree, Nut Tree and Grapevine Improvement Advisory 
          Board (IAB) was created by the Legislature in 1988.  The 
          primary purpose of the IAB is to conduct research to 
          further the interests of the industry.  The IAB is funded 
          by an industry assessment of 1% of gross sales on all 
          deciduous pome and stone fruit trees, nut trees, olive 
          trees and grapevines including seeds, seedlings, rootstocks 
          and topstock.    

          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.  DFA 
          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 author's office, this bill will clarify 
          the statute to allow the Secretary of DFA to exclude olive 
          trees that produce table olives.  This bill is a technical 
          clean-up of SB 707 (Cannella), Chapter 343, Statues of 
          2011, which includes olive trees in the existing 1% gross 
          sales fee assessment and extends the membership of the IAB 
          to representatives from the olive industry.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No


          MEL:mw  4/27/12   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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