SENATE AGRICULTURE COMMITTEE Senator Anthony Cannella, Chairman BILL NO: SB 707 AUTHOR: Cannella VERSION: 02/18/11 HEARING: 05/03/11 FISCAL: Yes CONSULTANT: John Chandler Agricultural special assessments. BACKGROUND AND EXISTING LAW The Fruit Tree, Nut Tree and Grapevine Improvement Advisory Board (IAB) was created by the legislature in 1988. The primary purpose of the board 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, and grapevines including seeds, seedlings, rootstocks and topstock. The Secretary of California Department of Food and Agriculture (CDFA), 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 United States Department of Agriculture and the industry. Much of the funds from the IAB is used in support of the FPS program. PROPOSED LAW SB 707 would include olive trees in the existing 1% gross sales fee assessment and extend the membership of the advisory board to representatives from the olive industry. COMMENTS 1. Supporters of SB 707 state that adding olives to the Foundation Plant Services program would provide 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 would allow 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. SB 707 – Page 2 2. Current law allows the Secretary of CDFA to exempt certain species from the assessment. In the current bill, only ornamental varieties of olive trees would be eligible for the exemption. The committee may wish to consider if the Secretary of CDFA should have the ability to exempt non-ornamental varieties of olive trees. SUPPORT Duarte Nursery Santa Cruz Olive Tree Nursery Sunridge Nurseries Vintage Nurseries OPPOSITION None received