Amended in Senate April 10, 2013

Senate BillNo. 250

Introduced by Senator Wolk

February 12, 2013

An act to add Chapter 29 (commencing with Section 79800) to Part 2 of Division 22 of the Food and Agricultural Code, relating to olive begin deleteoil.end deletebegin insert oil, and making an appropriation therefor.end insert


SB 250, as amended, Wolk. begin deleteCalifornia end deleteOlive Oilbegin delete Commission.end deletebegin insert Commission of California.end insert

Under existing law, the Legislature finds and declares that the agricultural and seafood industries are vitally important elements of the state’s economy. Existing law provides for various commissions and councils to promote the marketing and production of agricultural or seafood commodities.

This bill would create thebegin delete Californiaend delete Olive Oil Commissionbegin insert of Californiaend insert in the state governmentbegin insert with a prescribed membership, and would specify the powers, duties, and responsibilities of the commission board of directors. The commission board of directors would be authorized to, among other things, carry out programs of research relating to olive oil and recommend to the Secretary of Food and Agriculture olive oil grades and labeling standards. The bill would authorize the commission to levy an annual assessment, not to exceed a specified amount, on producers, as defined, and would authorize the commission to expand those funds for purposes of implementing the bill, thereby making an appropriationend insert.

begin insert

The bill, except as necessary to conduct an election, would not become operative until the producers of olive oil vote in favor of the bill’s provisions, as prescribed. The bill would also provide for the suspension of the operation of its provisions and for concluding the operations of the commission under certain circumstances. The bill would authorize the commission to levy a civil penalty, as specified, on a person for rendering or furnishing false reports, secreting, destroying, or altering records, failing to furnish a report, or failing or refusing to furnish to the commission information concerning the name and address of persons from whom olive oil is received. The bill would authorize the commission to bring certain civil actions to enforce the bill’s provisions and regulations adopted pursuant to these provisions.

end insert

Vote: majority. Appropriation: begin deleteno end deletebegin insertyesend insert. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1


Chapter 29 (commencing with Section 79800)
2is added to Part 2 of Division 22 of the Food and Agricultural
, to read:


5Chapter  29. begin deleteCalifornia end deleteOlive Oil Commissionbegin insert of
6Californiaend insert
7begin delete


There is in the state government the California Olive
9Oil Commission.

end delete
begin insert


11Article begin insert1.end insert  Declarations and General Provisions



begin insert79800.end insert  

The production and marketing of olive oil constitutes
14an important industry of this state which provides substantial and
15necessary revenues for the state and employment for its citizens.


begin insert79801.end insert  

The establishment of the commission is necessary for
17the efficient creation and management of the activities authorized
18in this chapter. The commission is also necessary to enhance the
19competitiveness of the California olive oil industry within the state,
20national, and international marketplace.


begin insert79802.end insert  

The maintenance of the olive oil industry in California
22is necessary to ensure the public has a continuous supply of this
23important commodity and to ensure the needed levels of income
24for those engaged in the olive oil industry of this state are

P3    1

begin insert79803.end insert  

The production and handling of olive oil produced in
2this state is hereby declared to be a public interest. This chapter
3is enacted in the exercise of the police power of this state for the
4purpose of protecting the health, peace, safety, and general welfare
5of the people of this state.


begin insert79804.end insert  

The commission form of administration created by this
7chapter is uniquely situated to provide those engaged in the
8production of olive oil the opportunity to avail themselves of the
9benefits of collective action in the broad fields of olive oil quality
10research, nutritional research, and grades and labeling standards.


begin insert79805.end insert  

No action taken by the commission, or by any individual
12in accordance with this chapter or with rules and regulations
13adopted under this chapter, shall be deemed a violation of the
14Cartwright Act (Chapter 2 (commencing with Section 16700) of
15Part 2 of Division 7 of the Business and Professions Code), the
16Unfair Practices Act (Chapter 4 (commencing with Section 17000)
17of Part 2 of Division 7 of the Business and Professions Code), or
18any rule of statutory or common law against monopolies or
19combinations in restraint of trade.


begin insert79806.end insert  

It is hereby declared as a matter of legislative
21determination that members of the commission are intended to
22represent and further the interest of the particular industry
23concerned and that this representation and furtherance is intended
24to serve the public interest. Accordingly, the Legislature finds that
25with respect to persons who are elected or appointed to the
26commission, the particular industry concerned is tantamount to,
27and constitutes the public generally within the meaning of Section
2887103 of the Government Code.

end insert
begin insert


30Article begin insert2.end insert  Definitions



begin insert79811.end insert  

Unless the context otherwise requires, the definitions
33in this article govern the construction of this chapter.


begin insert79812.end insert  

“Olive oil” means the oil obtained solely from the fruit
35of the olive tree (Olea europea L.) which is produced in California
36for commercial purposes.


begin insert79813.end insert  

“Books and records” means books, records, contracts,
38documents, memoranda, papers, correspondence, or other written
39data pertaining to matters relating to the activities subject to this

P4    1

begin insert79814.end insert  

“Commission” means the Olive Oil Commission of


begin insert79815.end insert  

(a) “Districts” consist of the following:

4(1) District 1 consists of the Counties of Butte, Del Norte, Glenn,
5Humboldt, Lassen, Modoc, Plumas, Shasta, Siskiyou, Tehama,
6and Trinity.

7(2) District 2 consists of the Counties of Amador, Colusa, El
8Dorado, Lake, Marin, Mendocino, Napa, Nevada, Placer,
9Sacramento, Sierra, Solano, Sonoma, Sutter, Yolo, and Yuba.

10(3) District 3 consists of the Counties of Alameda, Calaveras,
11Contra Costa, Fresno, Imperial, Inyo, Kern, Kings, Los Angeles,
12Madera, Mariposa, Merced, Mono, Monterey, Orange, Riverside,
13San Benito, San Bernardino, San Diego, San Francisco, San
14Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara,
15Santa Cruz, Stanislaus, Tulare, Tuolumne, and Ventura.

16(b) The boundaries of a district may be changed and districts
17may be added or eliminated by a two-thirds vote of the commission
18board of directors, which is concurred in by the secretary, if proper
19notice is provided to all persons subject to this chapter prior to
20the action. The boundaries need not coincide with county lines.

21(c) The commission board of directors shall periodically
22determine whether the olive oil acreage in any of the districts
23varies by more than 20 percent from the olive oil acreage in the
24other districts and draw new district lines in the event the variance
25exists. This action shall be approved by a two-thirds vote of the
26commission board of directors.


begin insert79816.end insert  

“Ex officio members” are nonvoting members of the


begin insert79817.end insert  

“Handle” means to engage in the business of a handler.


begin insert79818.end insert  

(a) “Handler” means a person who engages, in this
31state, in the operation of processing, selling, or marketing olive
32oil that he or she has produced or purchased or acquired from a
33producer, or that he or she is marketing on behalf of a producer,
34whether as owner, agent, employee, broker, or otherwise.

35(b) When the handler is a corporation or a limited liability
36company, all of the directors, officers, managers, and members of
37the corporation or limited liability company in their capacity as
38individuals shall be included, and any liability for failure to collect
39or make payment of assessments to which a corporate handler or
40a handler that is a limited liability company may be subject
P5    1pursuant to this chapter shall include identical liability upon each
2individual director, officer, manager, or member of the corporation
3or limited liability company.

4(c) “Handler” does not include a retailer.


begin insert79819.end insert  

“Market” or “marketing” means to sell or otherwise
6distribute olive oil into commercial channels or trade, resulting
7in the sale of olive oil.


begin insert79820.end insert  

“Marketing season” or “fiscal year” are synonymous
9terms and mean the period beginning July 1 of any year and
10extending through June 30 of the following year.


begin insert79821.end insert  

“Producer” means any person that produces or causes
12to be produced olives that are processed into olive oil in excess of
135,000 gallons during the marketing season and that shall, upon
14request of the commission, provide proof of commodity sale.


begin insert79822.end insert  

“Secretary” means the Secretary of Food and


begin insert79823.end insert  

“Advisory committee” means a committee appointed
18by the secretary from applications received from producers that
19produce olives that are processed into less than 5,000 gallons of
20olive oil during the marketing season.

end insert
begin insert


22Article begin insert3.end insert  Olive Oil Commission of California



begin insert79831.end insert  

(a) There is in the state government the Olive Oil
25Commission of California. Except as provided in subdivision (d),
26the commission board of directors shall be composed of the

28(1) Six producers, two from each district.

29(2) Three handlers, one from each district.

30(3) One public member who shall be appointed to the
31commission by the secretary from nominees recommended by the
32commission board of directors.

33(b) The chair of the advisory committee shall be an ex officio
34member of the commission board of directors.

35(c) The secretary and other appropriate persons as determined
36by the commission board of directors shall be ex officio members.

37(d) The commission board of directors may modify the number
38of producers and handlers who serve on the commission board of
39directors by a two-thirds vote that is concurred in by the secretary,
P6    1if proper notice is provided to all persons subject to this chapter
2prior to the action.

3(e) An advisory committee shall meet periodically to review
4issues affecting the purposes of this chapter and shall advise the
5commission board of directors. The committee shall consist of
6seven members who shall each serve three-year terms. The chair
7of the committee shall be selected by the members.


begin insert79832.end insert  

(a) The secretary may require the commission to
9correct or cease any existing activity or function that is determined
10by the secretary not to be in the public interest or in violation of
11this chapter.

12(b) If the commission refuses or fails to cease those activities
13or functions or to make corrections as required by the secretary,
14the secretary may, upon written notice, suspend all or a portion
15of the activities or functions of the commission until such time as
16the cessation or correction of activities or functions as required
17by the secretary has been accomplished by the commission.

18(c) Actions of the commission in violation of the secretary’s
19written notice shall be without legal force or effect. The secretary,
20to the extent feasible, shall issue the written notice prior to the
21commission entering into any contractual relationship affecting
22the existing or proposed activities or functions that are the subject
23of the written notice.

24(d) Upon service of the written notice, the secretary shall notify
25the commission in writing of the specific acts that he or she
26determines are not in the public interest or are in violation of this
27chapter, and his or her reasons for requiring a cessation or
28correction of specific existing or proposed activities or functions,
29and may make recommendations that will make those activities or
30functions acceptable to the secretary.


begin insert79833.end insert  

The commission or the secretary may bring an action
32for judicial relief from the secretary’s written notice, or from
33noncompliance by the commission with the written notice, in a
34court of competent jurisdiction, which may issue a temporary
35restraining order, permanent injunction, or other applicable relief.


begin insert79834.end insert  

The commission shall reimburse the secretary for all
37expenditures incurred by the secretary in carrying out his or her
38duties and responsibilities under this chapter. However, a court
39may, if it finds that the secretary acted arbitrarily or capriciously
40in restricting the activities or functions of the commission, relieve
P7    1the commission of the responsibility for payment of the secretary’s
2legal costs with regard to that action.


begin insert79835.end insert  

Except for the ex officio members of the commission,
4each member of the commission board of directors shall have an
5alternate member elected in the same manner as the member. An
6alternate member, in the absence of the member for whom he or
7she is an alternate, shall serve in place of the member. An alternate
8member may also serve in place of any other absent member of
9the same classification, producer or handler, if the member’s
10alternate is also absent. However, an alternate member may not
11serve in place of more than one absent member at a meeting. An
12alternate member serving in place of a member shall have and be
13able to exercise all rights, privileges, and powers of the member
14when serving. In the event of death, removal, resignation, or the
15disqualification of a member, the alternate for the member, or
16another alternate of the same classification if the alternate member
17for the member is absent, shall act as the member until a qualified
18successor is elected.


begin insert79836.end insert  

Any vacancy on the commission board of directors,
20including, but not limited to, the failure of any person elected to
21the commission board of directors as a member or alternate
22member to continue in his or her position due to a change in status
23making him or her ineligible to serve, or due to death, removal,
24or resignation, shall be filled by the appointment of another person,
25for the unexpired portion of the term, by a majority vote of the
26commission board of directors. However, the appointee shall fulfill
27all the qualifications set forth in this article as required for the
28office he or she is to occupy. The qualifications of any person to
29fill a vacancy shall be certified in writing to the secretary. The
30secretary shall notify the commission if he or she determines that
31the person is not qualified.


begin insert79837.end insert  

A producer member or his or her alternate on the
33commission board of directors shall be an individual, partner, or
34employee of a producer who has a financial interest in producing,
35or causing to be produced, olive oil for market. The producer
36member or his or her alternate shall be in compliance with this
37section during the entire term of his or her office.


begin insert79838.end insert  

The public member, or his or her alternate on the
39commission board of directors, shall have all the powers, rights,
40and privileges of any other member on the commission board of
P8    1directors. The public member shall not have any financial interest
2in the olive oil industry but may be an individual who provides
3services to individuals who do have a financial interest. The public
4member or his or her alternate shall be in compliance with this
5section during the entire term of his or her office.


begin insert79839.end insert  

(a) Except as provided in paragraphs (1) and (2), the
7term of office of all members of the commission board of directors
8and alternates, except any ex officio member, shall be three years
9from the date of their election and until their successors are

11(1) Of the first producer members, one from each district shall
12serve two years and one from each district shall serve three years.

13(2) Of the first handler members, one shall serve one year, one
14shall serve two years, and one shall serve three years.

15(b) The determination of the term of each member shall be made
16by lot at the time of election.


begin insert79840.end insert  

The commission may sue and be sued and enter into
18contracts. Copies of its proceedings, records, and acts, when
19authenticated, shall be admissible in evidence in all courts of the
20state, and shall be prima facie evidence of the truth of all
21statements within the proceedings, records, and acts.


begin insert79841.end insert  

A quorum of the commission board of directors is a
23majority of the members. Except as otherwise provided in this
24chapter, the vote of a majority of members present at a meeting
25at which there is a quorum shall constitute an act of the


begin insert79842.end insert  

The secretary or his or her representatives shall be
28notified and may attend each meeting of the commission board of
29directors and any meetings of a committee established by the
30commission. However, the secretary is not entitled to attend an
31executive session of the commission board of directors called for
32the purpose of discussing potential or actual litigation against the


begin insert79843.end insert  

A member of the commission board of directors or of
35any committee established by the commission, which may include
36nonmembers of the commission board of directors, shall not receive
37a salary. Except for ex officio government members, the members
38may receive reasonable and necessary traveling expenses and
39meal allowances, as established by the commission board of
40directors, for each day spent in actual attendance at, or in traveling
P9    1to and from, meetings of the commission or committees of the
2commission, or on special assignment for the commission.


begin insert79844.end insert  

If the secretary is required to concur in a decision of
4the commission, he or she shall indicate his or her response within
515 working days from notification of the decision. The response
6may be a request that additional information be provided.


begin insert79845.end insert  

All moneys received by any person from assessments
8levied under the authority of this chapter or otherwise received
9by the commission shall be deposited in banks designated by the
10commission board of directors and shall be disbursed by order of
11the commission board of directors through an agent or agents
12designated for that purpose. Any authorized agent or agents shall
13be bonded by a fidelity bond, executed by a surety company
14authorized to transact business in the state, in favor of the
15commission, in the amount of not less than twenty-five thousand
16dollars ($25,000).


begin insert79846.end insert  

The state shall not be liable for the acts of the
18commission or its contracts. Payments of all claims arising by
19reason of the administration of this chapter or acts of the
20commission shall be limited to the funds collected by the
21commission. Members, alternate members of the commission board
22of directors, employees, and agents of the commission shall not
23be personally liable for the contracts of the commission, and
24members, alternate members of the commission board of directors,
25and employees of the commission shall not be responsible
26individually in any way to a producer, handler, or any other person
27for error in judgment, mistakes, or other acts, either of commission
28or omission, as principal, agent, or employee, except for his or
29her own individual acts of dishonesty or crime. Members and
30alternate members of the commission board of directors shall not
31be held responsible individually for any act or omission of any
32other member or alternate member. The liability of the members
33and alternate members of the commission shall be several and not
34joint, and a member or alternate member shall not be liable for
35the default of any other member or alternate member.

end insert
begin insert


37Article begin insert4.end insert  Powers and Duties



begin insert79851.end insert  

The powers and duties of the commission board of
40directors shall include, but are not limited to, all of the following:

P10   1(a) Adopt and from time to time alter, rescind, modify, and
2amend bylaws, rules, regulations, and orders for carrying out this
3chapter, including rules for appeals from any bylaw, rule,
4regulation, or orders. These actions shall not be subject to Chapter
53.5 (commencing with Section 11340) of Part 1 of Division 3 of
6Title 2 of the Government Code.

7(b) Administer and enforce this chapter and perform all acts
8and exercise all powers incidental to, or in connection with, or
9determined reasonably necessary for, proper or advisable
10effectuation of the purposes of this chapter.

11(c) Appoint its own officers, including a chairperson, one or
12more vice chairpersons, and any other officers as it determines
13necessary. The officers shall have the powers and duties delegated
14to them by the commission board of directors.

15(d) Employ a person to serve at the pleasure of the commission
16as president and chief executive officer, and other personnel,
17including legal counsel, necessary to carry out this chapter. The
18commission may retain a management firm or staff from any board,
19commission, or committee of the state to perform the functions
20prescribed by this subdivision under control of the commission
21board of directors. If a person subject to this subdivision engages
22in conduct that the secretary determines to be in violation of this
23chapter, or is not in the public interest, the secretary shall notify
24the commission of the conduct and request that corrective, and if
25 appropriate, disciplinary action, be taken by the commission board
26of directors. If the commission board of directors fails or refuses
27to correct the situation or to take disciplinary action satisfactory
28to the secretary, the secretary may suspend or discharge the person
29subject to this subdivision.

30(e) Fix the compensation for all employees.

31(f) Appoint committees composed of both members and
32nonmembers of the commission board of directors to advise in
33carrying out this chapter.

34(g) Establish offices and incur expenses, invest funds, enter into
35contracts and agreements, and create liabilities and borrow funds
36in advance of receipt of assessments as determined necessary for
37the proper administration and enforcement of this chapter and the
38performance of its duties.

39(h) Keep accurate books, records, and accounts of all of its
40dealings, which shall be subject to an annual audit by an auditing
P11   1firm selected by the commission board of directors with the
2concurrence of the secretary. The audit shall be made a part of
3an annual report to all producers of olive oil, and, notwithstanding
4Sections 9795 and 10231.5 of the Government Code, copies of the
5audit shall be submitted to the Legislature and the department. In
6addition, the secretary may, as he or she determines necessary,
7conduct, or cause to be conducted, a fiscal and compliance audit
8of the commission.

9(i) Present facts to, and negotiate with, state, federal, and
10foreign agencies on matters that affect the handling of olive oil.

11(j) Make, in the name of the commission, contracts to render
12service in formulating and conducting plans and programs, and
13any other contracts or agreements determined to be necessary for
14the purposes specified in this chapter.

15(k) Conduct, and contract with others to conduct, research,
16including the study, analysis, dissemination, and accumulation of
17information obtained from research or elsewhere with respect to
18olive oil quality research and nutritional research. In connection
19with the research, accept contributions of, or to match, private,
20state, or federal funds that may be available for these purposes,
21and to employ or make contributions of funds to other persons or
22state or federal agencies conducting the research.

23(l) Collect information and publish and distribute to producers
24a bulletin or other communication for dissemination of information,
25including, but not limited to, crop statistics relating to the olive
26oil industry.

27(m) Establish an assessment rate to defray operating costs.

28(n) Establish an annual budget according to accepted
29accounting practices. The budget shall be concurred in by the
30secretary prior to disbursement of funds, except for disbursements
31made pursuant to subdivision (e).

32(o) Submit to the secretary for his or her concurrence, an annual
33statement of contemplated activities authorized under this chapter.

34(p) Investigate and prosecute civil violations of this chapter and
35file complaints with appropriate law enforcement agencies or
36officers for suspected criminal violations of this chapter.

37(q) Engage in activities and administer any program authorized
38in Article 9 (commencing with Section 79901) of this chapter.

P12   1(r) Prescribe the form and manner by which proponents and
2opponents of the commission may contact producers so long as
3all expenses associated with the contacts are paid in advance.

end insert
begin insert


5Article begin insert5.end insert  Implementation and Voting Procedures



begin insert79861.end insert  

(a) Prior to January 15, 2014, the secretary shall
8establish a list of producers eligible to vote on the implementation
9of this chapter. In establishing the list, the secretary shall require
10that producers of olive oil in California submit their names, mailing
11addresses, and the volume of olive oil produced during the
12preceding marketing season. The request for the information shall
13be in writing. The information shall be filed within 10 days
14following receipt of the written request for information.

15(b) A producer of olive oil whose name does not appear upon
16the secretary’s list may have his or her name placed on the list by
17filing with the secretary a signed statement identifying himself or
18herself as a producer. Failure to be on the list does not exempt the
19producer from paying assessments under this chapter.


begin insert79862.end insert  

This chapter, except as necessary to conduct an
21implementation referendum vote, shall not become operative until
22the secretary finds at least 40 percent of the total number of
23producers from the list established by the secretary pursuant to
24this article participate, and that either of the following occurs:

25(a) Sixty-five percent of the producers who voted in the
26referendum voted in favor of this chapter, and the producers so
27voting produced a majority of the total quantity of olive oil
28produced in the preceding marketing season by all of the producers
29voting in the referendum.

30(b) A majority of the producers who voted in the referendum
31voted in favor of this chapter, and the producers so voting produced
3265 percent or more of the total quantity of olive oil produced in
33the preceding marketing season by all of the producers voting in
34the referendum.


begin insert79863.end insert  

The secretary shall establish a period in which to
36conduct the referendum which shall not be less than 10 days or
37more than 60 days in duration and may prescribe additional
38procedures necessary to conduct the referendum. If the initial
39period established is less than 60 days, the secretary may extend
P13   1the period. However, the total referendum period may not exceed
260 days.


begin insert79864.end insert  

Nonreceipt of a ballot shall not invalidate a referendum.


begin insert79865.end insert  

If the secretary finds that a favorable vote has been
5given as provided in this article, he or she shall certify the vote
6and give notice of the vote to all producers whose names and
7addresses are on file with the secretary.


begin insert79866.end insert  

If the secretary finds that a favorable vote has not been
9given as provided in this article, he or she shall certify the vote
10and declare this chapter inoperative. The secretary may conduct
11another implementation referendum vote one or more years after
12the previous vote has been taken.


begin insert79867.end insert  

(a) Upon certification of the commission, the secretary
14shall contact all producers and handlers in a manner determined
15by the secretary for the purpose of nominating and electing persons
16to the commission board of directors.

17(b) Subsequent to the first selection of members of the
18commission board of directors, producers and handlers shall be
19selected pursuant to nomination and election procedures
20established by the commission board of directors with the
21concurrence of the secretary.


begin insert79868.end insert  

Prior to the referendum vote conducted by the secretary
23pursuant to this article, the proponents of the commission shall
24deposit with the secretary an amount of funds determined necessary
25by the secretary to defray the expenses of preparing the necessary
26lists and information and conducting the vote. Any funds not used
27for this purpose shall be returned to the proponents of the
28commission who deposited the funds with the secretary. Upon
29establishment of the commission, the commission board of directors
30may reimburse the proponents of the commission for any funds
31deposited with the secretary and for any legal expenses and costs
32incurred in establishing the commission.

end insert
begin insert


34Article begin insert6.end insert  Assessments and Records



begin insert79871.end insert  

(a) The commission board of directors shall, no later
37than the beginning of each marketing season, or as soon thereafter
38as possible, establish the assessment to be paid by the producers
39for the marketing season. The assessment shall not be more than
P14   1twenty-five cents ($0.25) per gallon for all olive oil handled as
2specified in this chapter.

3(b) An assessment greater than the amounts in this section shall
4not be charged unless it is approved in accordance with the voting
5requirements provided in Section 79862.


begin insert79872.end insert  

This chapter does not apply to olive oil produced only
7for a producer’s home use.


begin insert79873.end insert  

Handlers of olive oil shall keep a complete and accurate
9record of all olive oil handled by them with the name of the
10producer or producers whose olive oil was handled. A producer
11that delivers or markets olive oil to persons other than to a handler
12shall keep a complete and accurate record of all that olive oil. The
13records shall contain information required by the commission.
14The records shall be preserved by the producer or handler for a
15period of two years and shall be offered and submitted for
16inspection at any reasonable time upon written demand by the
17commission or its duly authorized agent.


begin insert79874.end insert  

(a) All proprietary information obtained by the
19commission or the secretary from any source, including the names
20and addresses of producers, shall be confidential and shall not be
21disclosed except if required by court order in a judicial proceeding.

22(b) Information on volume shipments and any other related
23information that is required for reports to governmental agencies,
24financial reports to the commission or aggregate sales and
25inventory information, and any other information that gives only
26totals, but excludes individual information, may be disclosed by
27the commission.


begin insert79875.end insert  

The first handler of olive oil being assessed shall deduct
29the assessment from amounts paid by him or her to the producer,
30and shall be a trustee of the funds until they are paid to the
31commission at the time and in the manner prescribed by the
32commission. A producer who handles olive oil shall pay an
33assessment directly to the commission at the time and in the manner
34prescribed by the commission board of directors.


begin insert79876.end insert  

Every handler shall be personally liable for the payment
36of the collected assessments from producers, and failure to collect
37the assessment from any producer shall not exempt the handler
38from liability.


begin insert79877.end insert  

An assessment that is levied as provided in this chapter
40is a personal debt of the producer assessed.

P15   1

begin insert79878.end insert  

(a) A person who fails to file a return or pay an
2assessment within the time required by the commission shall pay
3to the commission a penalty of 10 percent of the amount of the
4assessment determined to be past due and, in addition, interest on
5the unpaid balance at the rate of 1.5 percent per month.

6(b) In addition to any other penalty imposed, the commission
7may require a person who fails to pay an assessment or related
8charge pursuant to this article to furnish and maintain a surety
9bond in a form and amount and for a period of time specified by
10the commission board of directors as assurance that all payments
11to the commission will be made when due.

end insert
begin insert


13Article begin insert7.end insert  Actions and Penalties



begin insert79881.end insert  

A civil penalty not exceeding one thousand dollars
16($1,000) may be levied by the commission upon a person who does
17any of the following:

18(a) Willfully to render or furnish a false report, statement, or
19record required by the commission, or in any way to affect the
20shipment and marketing of olive oil in order to avoid payment of
21assessments on the product’s highest value.

22(b) Fail to render or furnish a report, statement, or record
23required by the commission.

24(c) When engaged in the producing or handling of olive oil, to
25fail or refuse to furnish to the commission or its duly authorized
26agents, upon request, information concerning the name and address
27of the persons from whom he or she has received olive oil and the
28quantity so received.

29(d) Secrete, destroy, or alter records required to be kept by this


begin insert79882.end insert  

For purposes of according individuals aggrieved by
32its actions or determinations, the commission board of directors
33shall establish procedures for an informal hearing before the
34commission or before a committee of the commission established
35for this purpose. Appeals from the decision of the commission
36board of directors may be made to the secretary. The determination
37of the secretary shall be subject to judicial review upon petition
38filed with the appropriate superior court.


begin insert79883.end insert  

(a) The commission may commence civil actions and
40utilize all remedies provided in law or equity for the collection of
P16   1assessments and civil penalties, and for obtaining injunctive relief
2or specific performance, relating to this chapter and the rules and
3regulations adopted under this chapter. A court shall issue to the
4commission any requested writ of attachment or injunctive relief
5upon a prima facie showing by verified complaint that a named
6defendant has violated this chapter or any other rule or regulation
7of the commission, including, but not limited to, the nonpayment
8of assessments. No bond shall be required to be posted by the
9commission as a condition for the issuance of any writ of
10attachment or injunctive relief.

11(b) A writ of attachment shall be issued pursuant to Chapter 5
12(commencing with Section 485.010) of Title 6.5 of Part 2 of the
13Code of Civil Procedure, except that the showing specified in
14Section 485.010 is not required. Injunctive relief shall be issued
15pursuant to Chapter 3 (commencing with Section 525) of Title 7
16of Part 2 of the Code of Civil Procedure, except that the showing
17of irreparable harm or of inadequate remedy at law specified by
18Section 526 or 527 is not required.

19(c) Upon entry of any final judgment on behalf of the commission
20against any defendant, the court shall enjoin the defendant from
21conducting any type of business regarding olive oil until there is
22full compliance with, and satisfaction of, the judgment.

23(d) Upon a favorable judgment for the commission, the court
24may order that the commission be reimbursed for reasonable
25attorney’s fees and other related costs actually incurred. Venue
26for these actions is at the domicile or place of business of the
27defendant or in the county of the principal office of the commission.
28The commission may be sued only in the county of its principal


begin insert79884.end insert  

Any action by the commission for any penalty or other
31remedy that is prescribed under this chapter shall be commenced
32within two years from the date of discovery of the alleged violation.
33Any action against the commission by any person shall be
34commenced within two years from the date of the alleged violation.


begin insert79885.end insert  

The commission shall not be required to allege or prove
36that an adequate remedy at law does not exist in any action brought
37under this chapter.


begin insert79886.end insert  

This chapter shall be liberally construed. If any section,
39clause, or part of this chapter is for any reason held
40unconstitutional or invalid as applied to any person or as applied
P17   1under certain circumstances, that decision shall not affect the
2remaining portions of this chapter or the application of this chapter
3to any other persons or under any other circumstance.


begin insert79887.end insert  

The termination of this chapter shall not affect or waive
5any right, duty, obligation, or liability that has arisen or that may
6thereafter arise in connection with this chapter, release or
7extinguish any violation of this chapter, or affect or impair any
8right or remedies of the commission with respect to any violation.

end insert
begin insert


10Article begin insert8.end insert  Continuation or Suspension and Termination



begin insert79891.end insert  

(a) Five years after implementation of this chapter,
13the secretary shall hold a public hearing, after providing proper
14notice to all persons subject to this chapter and any other persons
15or entities who have requested, in writing, notice of the hearing,
16to determine whether the operation of this chapter should be
17continued. If the secretary finds after the hearing that a substantial
18question exists among the persons assessed under this chapter
19regarding whether the operation of this chapter should be
20continued, the secretary shall submit the chapter to a reapproval
21referendum to be conducted among producers to determine whether
22the operation of this chapter shall be reapproved and continued
23in effect.

24(b) If the secretary finds after conducting a hearing that no
25substantial question exists or, if a reapproval referendum is
26required, that a majority of the eligible producers voting in the
27referendum voted in favor of continuing the operation of this
28chapter, the secretary shall certify the vote and this chapter shall
29remain operative. If the secretary finds that a favorable vote has
30not been given, he or she shall certify the vote and declare the
31operation of this chapter suspended upon the expiration of the
32current marketing season. Thereupon, the operations of the
33commission shall be concluded and funds distributed in the manner
34provided in Section 79894. A bond or security shall not be required
35for the referendum.


begin insert79892.end insert  

Following a hearing, and favorable referendum if
37required, the process specified in Section 79891 shall be conducted
38by the secretary every five years thereafter between July 1 and
39June 30 of the following year, unless a referendum is conducted
40as the result of a petition pursuant to Section 79893. In that case,
P18   1the hearing, and referendum if required, shall be conducted every
2five years following the industry petitioned referendum.


begin insert79893.end insert  

(a) Upon a finding by a two-thirds vote of the
4commission board of directors that the operation of this chapter
5has not tended to effectuate its declared purposes, the commission
6may recommend to the secretary that the commission be suspended.
7Any suspension shall not become effective until expiration of the
8current marketing season.

9(b) The secretary shall, upon receipt of a recommendation, or
10may, after a public hearing to review a petition filed with him or
11her requesting the suspension, signed by 15 percent of the
12producers by number that produced not less than 15 percent of
13the volume in the immediately preceding marketing season, cause
14a referendum to be conducted among the listed producers to
15determine if the operations of the commission shall be suspended.
16However, the secretary shall not hold a referendum as a result of
17the petition unless the petitioner shows by the weight of evidence
18that this chapter has not effectuated its declared purposes.

19(c) The secretary shall establish a referendum period, which
20shall not be less than 10 days or more than 60 days in duration.
21The secretary may prescribe additional procedures necessary to
22conduct the referendum. At the close of the established referendum
23period, the secretary shall tabulate the ballots filed during the
24period. The secretary shall suspend the operation of this chapter,
25if the secretary finds at least 40 percent of the total number of
26producers from the list established by the secretary participate,
27and that either of the following occurs:

28(1) Sixty-five percent of the producers that voted in the
29referendum voted in favor of suspension, and the producers so
30voting produced a majority of the total quantity of olive oil
31produced in the preceding marketing season by all of the producers
32voting in the referendum.

33(2) A majority of the producers that voted in the referendum
34voted in favor of suspension, and the producers so voting produced
3565 percent or more of the total quantity of olive oil produced in
36the preceding marketing season by all of the producers voting in
37the referendum.


begin insert79894.end insert  

After the effective date of suspension of this chapter,
39the operations of the commission shall be concluded and all moneys
40held by the commission, and moneys collected by assessment and
P19   1not required to defray the expenses of concluding and terminating
2operations of the commission, shall be returned upon a pro rata
3basis to all persons from whom assessments were collected in the
4immediately preceding marketing season. However, if the
5commission board of directors finds that the amounts returnable
6are so small as to make impractical the computation and remitting
7of the pro rata refund to those persons, any moneys remaining
8after payment of all expenses of winding up and terminating
9operations shall be withdrawn from the approved depository and
10paid into an appropriate state or federal program or used to fund
11activities related to the subject matter of this chapter.


begin insert79895.end insert  

Upon suspension of the operation of this chapter, the
13commission shall mail a copy of the notice of suspension to all
14producers affected by the suspension whose names and addresses
15are on file.

end insert
begin insert


17Article begin insert9.end insert  Quality Standards



begin insert79901.end insert  

The commission board of directors may recommend to
20the secretary the adoption of olive oil grades and labeling
21standards, the amendment of the standards when appropriate, and
22the adoption of inspection procedures, enforcement, and fees
23associated with the activity in accordance with the California
24Marketing Act of 1937 (Chapter 1 (commencing with Section
2558601) of Part 2 of Division 21), unless otherwise specified in this


begin insert79902.end insert  

Grades and standards adopted pursuant to this article
28shall be implemented by the secretary at the beginning of the
29marketing season following the date on which the activity is
30approved by the secretary.


begin insert79903.end insert  

The commission shall serve as the advisory body to the
32secretary on all matters pertaining to this article.

end insert