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SB 707
THIRD READING
Bill No:
Author:
Amended:
Vote:
SB 707
Cannella (R) and Wolk (D)
5/4/11
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, 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,
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SB 707
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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
Agricultural special
assessment
no new costs; estimated revenue of
($20) annually
Fund
Special*
* 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.
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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-totype. 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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