Amended in Senate May 14, 2013

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 oil, and making an appropriation therefor.


SB 250, as amended, Wolk. Olive Oil Commission of California.

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 the Olive Oil Commission of California in the state government 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,begin delete carry out programs of research relating to olive oilend deletebegin insert conduct research for specified purposesend insert 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 amountbegin insert or the reasonable costs of implementing these provisionsend insert, on producers, as defined, and would authorize the commission tobegin delete expandend deletebegin insert expendend insert those funds for purposes of implementing the bill, thereby making an appropriation.

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 provisionsbegin delete and regulations adopted pursuant to these provisionsend delete.

Vote: majority. Appropriation: yes. 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. Olive Oil Commission of California


7Article 1.  Declarations and General Provisions




The productionbegin insert of oil olives for processing into olive
10oilend insert
and marketing ofbegin insert theend insert olive oil constitutes an important industry
11of this state which provides substantial and necessary revenues for
12the state and employment for its citizens.



The establishment of the commission is necessary for
14the efficient creation and management of the activities authorized
15in this chapter. The commission is also necessary to enhance the
16competitiveness of thebegin delete California olive oilend delete industry within the state,
17national, and international marketplace.



The maintenance of thebegin delete olive oilend delete industry in California
19is necessary to ensurebegin delete the public hasend delete a continuous supply ofbegin delete this
20important commodityend delete
begin insert oil olives and the resulting olive oilend insert and to
21ensure the needed levels of incomebegin insert are maintained end insert for those
22engaged in thebegin insert production of oil olives for processing intoend insert olive
P3    1oilbegin delete industry of this state are maintainedend deletebegin insert and the marketing of olive
2oilend insert



The productionbegin delete and handlingend deletebegin insert of oil olives for processing
4into olive oil and the marketingend insert
of olive oil produced in this state
5is hereby declared to be a public interest. This chapter is enacted
6in the exercise of the police power of this state for the purpose of
7protecting the health, peace, safety, and general welfare of the
8people of this state.



The commission form of administration created by this
10chapter is uniquely situated to provide those engaged inbegin delete the
11production of olive oilend delete
begin insert the activities specified in this chapterend insert the
12opportunity to avail themselves of the benefits of collective action
13in the broad fields of olive oil begin deletequalityend delete research,begin delete nutritional research,end delete
14 and grades and labeling standards.



No action taken by the commission, or by any individual
16in accordance with this chapter or with rules and regulations
17adopted under this chapter, shall be deemed a violation of the
18Cartwright Act (Chapter 2 (commencing with Section 16700) of
19Part 2 of Division 7 of the Business and Professions Code), the
20Unfair Practices Act (Chapter 4 (commencing with Section 17000)
21of Part 2 of Division 7 of the Business and Professions Code), or
22any rule of statutory or common law against monopolies or
23combinations in restraint of trade.



It is hereby declared as a matter of legislative
25determination that members of the commission are intended to
26represent and further the interest of the particular industry
27concerned and that this representation and furtherance is intended
28to serve the public interest. Accordingly, the Legislature finds that
29with respect to persons who are elected or appointed to the
30commission, the particular industry concerned is tantamount to,
31and constitutes the public generally within the meaning of Section
3287103 of the Government Code.


34Article 2.  Definitions




Unless the context otherwise requires, the definitions
37in this article govern the construction of this chapter.



“Olive oil” means the oil obtained solely from the fruit
39of the olive tree (Olea europea L.) which is produced in California
40for commercial purposes.

begin insert
P4    1

begin insert79812.5.end insert  

“Oil olives” means fruit of the olive tree (Olea
2europea L.) grown for the purpose of processing into olive oil.

end insert


“Books and records” means books, records, contracts,
4documents, memoranda, papers, correspondence, or other written
5data pertaining to matters relating to the activities subject to this



“Commission” means the Olive Oil Commission of



(a) “Districts” consist of the following:

10(1) District 1 consists of the Counties of Butte, Del Norte, Glenn,
11Humboldt, Lassen, Modoc, Plumas, Shasta, Siskiyou, Tehama,
12and Trinity.

13(2) District 2 consists of the Counties of Amador, Colusa, El
14Dorado, Lake, Marin, Mendocino, Napa, Nevada, Placer,
15Sacramento, Sierra, Solano, Sonoma, Sutter, Yolo, and Yuba.

16(3) District 3 consists of the Counties of Alameda, Calaveras,
17Contra Costa, Fresno, Imperial, Inyo, Kern, Kings, Los Angeles,
18Madera, Mariposa, Merced, Mono, Monterey, Orange, Riverside,
19San Benito, San Bernardino, San Diego, San Francisco, San
20Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara,
21Santa Cruz, Stanislaus, Tulare, Tuolumne, and Ventura.

begin delete

22(b) The boundaries of a district may be changed and districts
23may be added or eliminated by a two-thirds vote of the commission
24board of directors, which is concurred in by the secretary, if proper
25notice is provided to all persons subject to this chapter prior to the
26action. The boundaries need not coincide with county lines.

end delete
begin delete


end delete

28begin insert(b)end insert The commission board of directors shall periodically
29determine whether the olive oil acreage in any of the districts varies
30by more than 20 percent from the olive oil acreage in begin deletetheend delete other
31districts and draw new district lines in the eventbegin delete theend deletebegin insert aend insert variance
32exists. This action shall be approved by a two-thirds vote of the
33commission board of directors.

begin insert

34(c) The boundaries of a district may be changed and districts
35may be added or eliminated by a two-thirds vote of the commission
36board of directors, which is concurred in by the secretary, if notice
37is provided to all persons subject to this chapter prior to the action.
38The boundaries need not coincide with county lines.

end insert


“Ex officio members” are nonvoting members of the
40commissionbegin insert board of directorsend insert.

P5    1


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



(a) “Handler” means a person who engages, in this
3state, in the operation ofbegin delete processing, selling, orend delete marketing olive
4oil that he or she has producedbegin insert,end insert or purchased or acquired frombegin delete aend delete
5begin insert an oil olive end insert producer, or that he or she is marketing on behalf of
6begin delete aend deletebegin insert an oil oliveend insert producer, whether as owner, agent, employee, broker,
7or otherwise.

8(b) When the handler is a corporation or a limited liability
9company, all of the directors, officers, managers, and members of
10the corporation or limited liability company in their capacity as
11individuals shall be included, and any liability for failure to collect
12or make payment of assessments to which a corporate handler or
13a handler that is a limited liability company may be subject
14pursuant to this chapter shall include identical liability upon each
15individual director, officer, manager, or member of the corporation
16or limited liability company.

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



“Market” or “marketing” means to sellbegin delete or otherwise
19distributeend delete
olive oil into commercial channelsbegin delete or trade, resulting in
20the sale of olive oilend delete
begin insert of tradeend insert.



“Marketing season” or “fiscal year” are synonymous
22terms and mean the period beginning July 1 of any year and
23extending through June 30 of the following year.



“Producer” means any person that produces or causes
25to be producedbegin insert oilend insert olives that are processed into olive oil inbegin delete excessend delete
26begin insert the amountend insert of 5,000 gallonsbegin insert or moreend insert during the marketing season
27and that shall, upon request of the commission, provide proof of
28commodity sale.



“Secretary” means the Secretary of Food and



“Advisory committee” means a committee appointed
32by the secretary from applications received frombegin delete producersend deletebegin insert personsend insert
33 that producebegin insert or cause to be produced oilend insert olives that are processed
34into less than 5,000 gallons of olive oil during the marketing


37Article 3.  Olive Oil Commission of California




(a) There is in the state government the Olive Oil
40Commission of California. Except as provided in subdivision (d),
P6    1the commission board of directors shall be composed of the

3(1) Six producers, two from each district.

4(2) Three handlers, one from each district.

5(3) One public member who shall be appointed to the
6commissionbegin insert board of directorsend insert by the secretary from nominees
7recommended by the commission board of directors.

8(b) The chair of the advisory committee shall be an ex officio
9member of the commission board of directors.

10(c) The secretary and other appropriate persons as determined
11by the commission board of directors shall be ex officio members.

12(d) The commission board of directors may modify the number
13of producers and handlers who serve on the commission board of
14directors by a two-thirds vote that is concurred in by the secretary,
15if proper notice is provided to all persons subject to this chapter
16prior to the action.

17(e) An advisory committee shall meet periodically to review
18issues affecting the purposes of this chapter and shall advise the
19commission board of directors. The committee shall consist of
20seven members who shall each serve three-year terms. The chair
21of the committee shall be selected by the members.



(a) The secretary may require the commission to correct
23or cease any existing activity or function that is determined by the
24secretary not to be in the public interest or in violation of this

26(b) If the commission refuses or fails to cease those activities
27or functions or to make corrections as required by the secretary,
28the secretary may, upon written notice, suspend all or a portion of
29the activities or functions of the commission until such time as the
30cessation or correction of activities or functions as required by the
31secretary has been accomplished by the commission.

32(c) Actions of the commission in violation of the secretary’s
33written notice shall be without legal force or effect. The secretary,
34to the extent feasible, shall issue the written notice prior to the
35commission entering into any contractual relationship affecting
36 the existing or proposed activities or functions that are the subject
37of the written notice.

38(d) Upon service of the written notice, the secretary shall notify
39the commission in writing of the specific acts that he or she
40determines are not in the public interest or are in violation of this
P7    1chapter, and his or her reasons for requiring a cessation or
2correction of specific existing or proposed activities or functions,
3and may make recommendations that will make those activities
4or functions acceptable to the secretary.



The commission or the secretary may bring an action
6for judicial relief from the secretary’s written notice, or from
7noncompliance by the commission with the written notice, in a
8court of competent jurisdiction, which may issue a temporary
9restraining order, permanent injunction, or other applicable relief.



The commission shall reimburse the secretary for all
11expenditures incurred by the secretary in carrying out his or her
12duties and responsibilities under this chapter. However, a court
13may, if it finds that the secretary acted arbitrarily or capriciously
14in restricting the activities or functions of the commission, relieve
15the commission of the responsibility for payment of the secretary’s
16legal costs with regard to that action.



Except for the ex officio members of the commission
18begin insert board of directorsend insert, each member of the commission board of
19directors shall have an alternate member elected in the same
20manner as the member. An alternate member, in the absence of
21the member for whom he or she is an alternate, shall serve in place
22of the member. An alternate member may also serve in place of
23any other absent member of the same classification, producer or
24handler, if the member’s alternate is also absent. However, an
25alternate member may not serve in place of more than one absent
26member at a meeting. An alternate member serving in place of a
27member shall have and be able to exercise all rights, privileges,
28and powers of the member when serving. In the event of death,
29removal, resignation, or the disqualification of a member, the
30alternate for the member, or another alternate of the same
31classification if the alternate member for the member is absent,
32shall act as the member until a qualified successor is elected.



Any vacancy on the commission board of directors,
34including, but not limited to, the failure of any person electedbegin insert or
35appointedend insert
to the commission board of directors as a member or
36alternate member to continue in his or her position due to a change
37in status making him or her ineligible to serve, or due to death,
38removal, or resignation, shall be filled by thebegin delete appointmentend deletebegin insert electionend insert
39 of another person,begin insert or appointment in the case of a public member, end insert
40 for the unexpired portion of the term,begin insert with elected positions to be
P8    1filledend insert
by a majority vote of the commission board of directors.
2However, thebegin delete appointeeend deletebegin insert person elected or appointedend insert shall fulfill
3all the qualifications set forth in this article as required for the
4office he or she is to occupy. The qualifications of any person to
5fill a vacancy shall be certified in writing to the secretary. The
6secretary shall notify the commission if he or she determines that
7the person is not qualified.



A producer member or his or her alternate on the
9commission board of directors shall be an individual, partner, or
10employee of a producer who has a financial interest in producing,
11or causing to be produced,begin delete olive oil for marketend deletebegin insert oil olives for
12processing into olive oilend insert
. The producer member or his or her
13alternate shall be in compliance with this section during the entire
14term of his or her office.



The public member, or his or her alternate on the
16commission board of directors, shall have all the powers, rights,
17and privileges of any other member on the commission board of
18directors. The public member shall not have any financial interest
19in thebegin insert production or processing of oil olives or the marketing ofend insert
20 olive oilbegin delete industryend delete but may be an individual who provides services
21to individuals who do have a financial interest. The public member
22or his or her alternate shall be in compliance with this section
23during the entire term of his or her office.



(a) Except as provided in paragraphs (1) and (2), the
25term of office of all members of the commission board of directors
26andbegin insert theirend insert alternates, except any ex officio member, shall be three
27years from the date of their election and until their successors are

29(1) Of the first producer members, one from each district shall
30serve two years and one from each district shall serve three years.

31(2) Of the first handler members, one shall serve one year, one
32shall serve two years, and one shall serve three years.

33(b) The determination of the term of each member shall be made
34by lot at the time of election.

begin insert

35(c) An alternate shall serve the same term as the member for
36whom he or she serves as alternate.

end insert


The commission may sue and be sued and enter into
38contracts. Copies of its proceedings, records, and acts, when
39authenticated, shall be admissible in evidence in all courts of the
P9    1state, and shall be prima facie evidence of the truth of all statements
2within the proceedings, records, and acts.



A quorum of the commission board of directors is a
4majority of the membersbegin insert authorized to voteend insert. Except as otherwise
5provided in this chapter, the vote of a majority ofbegin insert theseend insert members
6present at a meeting at which there is a quorum shall constitute an
7act of the commission.



The secretary or his or her representatives shall be
9notified and may attend each meeting of the commission board of
10directors and any meetings of a committee established by the
11commission. However, the secretary is not entitled to attend an
12executive session of the commission board of directors called for
13the purpose of discussing potential or actual litigation against the



A member of the commission board of directors or of
16any committee established by the commission, which may include
17nonmembers of the commission board of directors, shall not receive
18a salary. Except for ex officio government members,begin delete the membersend delete
19begin insert a member end insert may receive reasonable and necessary traveling
20expenses and meal allowances, as established by the commission
21board of directors, for each day spent in actual attendance at, or
22in traveling to and from, meetings of the commission or committees
23of the commission, or on special assignment for the commission.



If the secretary is required to concur in a decision of
25the commission, he or she shall indicate his or her response within
2615 working days from notification of the decision. The response
27may be a request that additional information be provided.



All moneys received by any person from assessments
29levied under the authority of this chapter or otherwise received by
30the commission shall be deposited in banks designated by the
31commission board of directors and shall be disbursed by order of
32the commission board of directors through an agent or agents
33designated for that purpose. Any authorized agent or agents shall
34be bonded by a fidelity bond, executed by a surety company
35authorized to transact business in the state, in favor of the
36commission, in the amount of not less than twenty-five thousand
37dollars ($25,000).



The state shall not be liable for the acts of the
39commission or its contracts. Payments of all claims arising by
40reason of the administration of this chapter or acts of the
P10   1commission shall be limited to the funds collected by the
2commission.begin delete Members,end deletebegin insert Members andend insert alternate members of the
3commission board of directors, employees, and agents of the
4commission shall not be personally liable for the contracts of the
5commission, andbegin delete members,end deletebegin insert members andend insert alternate members of
6the commission board of directors, and employees of the
7commission shall not be responsible individually in any way to a
8producer, handler, or any other person for error in judgment,
9mistakes, or other acts, either of commission or omission, as
10principal, agent, or employee, except for his or her own individual
11acts of dishonesty or crime. Members and alternate members of
12the commission board of directors shall not be held responsible
13individually for any act or omission of any other member or
14alternate member. The liability of the members and alternate
15members of the commissionbegin insert board of directorsend insert shall be several
16and not joint, and a member or alternate member shall not be liable
17for the default of any other member or alternate member.


19Article 4.  Powers and Duties




The powers and duties of the commission board of
22directors shall include, but are not limited to, all of the following:

23(a) Adopt and from time to time alter, rescind, modify, and
24amend bylaws, rules,begin delete regulations,end delete andbegin delete ordersend deletebegin insert orders, and
25recommend regulations in accordance with Article 9end insert
for carrying
26out this chapter, including rules for appeals from any bylaw, rule,
27regulation,begin delete or ordersend deletebegin insert order, or recommended regulationend insert. These
28actions shall not be subject to Chapter 3.5 (commencing with
29Section 11340) of Part 1 of Division 3 of Title 2 of the Government

31(b) Administer and enforce this chapter and perform all acts
32and exercise all powers incidental to, or in connection with, or
33determined reasonably necessary for, proper or advisable
34effectuation of the purposes of this chapter.

35(c) Appoint its own officersbegin insert from the members of the commission
36board of directorsend insert
, including a chairperson, one or more vice
37chairpersons, and any other officers as it determines necessary.
38The officers shall have the powers and duties delegated to them
39by the commission board of directors.

P11   1(d) Employ a person to serve at the pleasure of the commission
2as president and chief executive officer, and other personnel,
3including legal counsel, necessary to carry out this chapter. The
4commission may retain a management firm or staff from any board,
5commission, or committee of the state to perform the functions
6prescribed by this subdivision under control of the commission
7board of directors. If a person subject to this subdivision engages
8in conduct that the secretary determines to be in violation of this
9chapter, or is not in the public interest, the secretary shall notify
10the commission of the conduct and request that corrective, and if
11 appropriate, disciplinary action, be taken by the commission board
12of directors. If the commission board of directors fails or refuses
13to correct the situation or to take disciplinary action satisfactory
14to the secretary, the secretary may suspend or discharge the person
15subject to this subdivision.

16(e) Fix the compensation for all employees.

17(f) Appoint committees composed of both members and
18nonmembers of the commission board of directors to advise in
19carrying out this chapter.

20(g) Establish offices and incur expenses, invest funds, enter into
21contracts and agreements, and create liabilities and borrow funds
22in advance of receipt of assessments as determined necessary for
23the proper administration and enforcement of this chapter and the
24performance of its duties.

25(h) Keep accurate books, records, and accounts of all of its
26dealings, which shall be subject to an annual audit by an auditing
27firm selected by the commission board of directors with the
28concurrence of the secretary. The audit shall be made a part of an
29annual report to all producers ofbegin delete olive oilend deletebegin insert oil olives and handlers
30subject to this chapterend insert
, and, notwithstanding Sections 9795 and
3110231.5 of the Government Code, copies of the audit shall be
32submitted to the Legislature and the department. In addition, the
33secretary may, as he or she determines necessary, conduct, or cause
34to be conducted, a fiscal and compliance audit of the commission.

35(i) Present facts to, and negotiate with, state, federal, and foreign
36agencies on matters that affect thebegin delete handling of olive oilend deletebegin insert purposes
37of this chapterend insert

38(j) Make, in the name of the commission, contracts to render
39service in formulating and conducting plans and programs, and
P12   1any other contracts or agreements determined to be necessary for
2the purposes specified in this chapter.

3(k) Conduct, and contract with others to conduct, research,
4including the study, analysis, dissemination, and accumulation of
5information obtained from research or elsewherebegin delete with respect to
6olive oil quality research and nutritional researchend delete
begin insert for purposes
7described in this chapterend insert
. In connection with the research, accept
8contributions of, or to match, private, state, or federal funds that
9may be available for these purposes, and to employ or make
10contributions of funds to other persons or state or federal agencies
11conducting the research.

12(l) Collect information and publish and distribute to producers
13a bulletin or other communication for dissemination ofbegin delete information,
14including, but not limited to, crop statistics relating to the olive
15oil industryend delete
begin insert information relating to this chapterend insert.

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

17(n) Establish an annual budget according to accepted accounting
18practices. The budget shall be concurred in by the secretary prior
19to disbursement of funds, except for disbursements made pursuant
20to subdivision (e).

21(o) Submit to the secretary for his or her concurrence, an annual
22statement of contemplated activities authorized under this chapter.

23(p) Investigate and prosecute civil violations of this chapter and
24file complaints with appropriate law enforcement agencies or
25officers for suspected criminal violations of this chapter.

26(q) Engage in activities and administer any program authorized
27in Article 9 (commencing with Section 79901) of this chapter.

28(r) Prescribe the form and manner by which proponents and
29opponents of the commission may contact producers so long as
30all expenses associated with the contacts are paid in advance.


32Article 5.  Implementation and Voting Procedures




(a) begin deletePrior to January 15, end deletebegin insertBefore February 1, end insert2014, the
35secretary shall establish a list of producers eligible to vote on the
36implementation of this chapter. In establishing the list, the secretary
37shall require thatbegin delete producers of olive oil in Californiaend deletebegin insert handlers of
38oil olivesend insert
submitbegin delete their names,end deletebegin insert the names andend insert mailing addressesbegin insert of
39producers from whom oil olives are receivedend insert
, and the volume of
40olive oilbegin delete producedend deletebegin insert resulting from each producer’s oil olives that
P13   1was marketedend insert
during the preceding marketing season. The request
2for the information shall be in writing. The information shall be
3filed within 10 days following receipt of the written request for

5(b) A producerbegin delete of olive oilend delete whose name does not appearbegin delete uponend delete
6begin insert on end insert the secretary’s list may have his or her name placed on the list
7by filing with the secretary a signed statement identifying himself
8or herself as a producer. Failure to be on the list does not exempt
9the producer from paying assessments under this chapter.



This chapter, except as necessary to conduct an
11implementation referendum vote, shall not become operative until
12the secretary finds at least 40 percent of the total number of
13producers from the list established by the secretary pursuant to
14this article participate, and that either of the following occurs:

15(a) Sixty-five percent of the producers who voted in the
16referendum voted in favor of this chapter, and the producers so
17voting produced a majority of the total quantity ofbegin insert oil olives
18processed intoend insert
olive oilbegin delete producedend delete in the preceding marketing season
19by all of the producers voting in the referendum.

20(b) A majority of the producers who voted in the referendum
21voted in favor of this chapter, and the producers so voting produced
2265 percent or more of the total quantity ofbegin insert oil olives processed intoend insert
23 olive oilbegin delete producedend delete in the preceding marketing season by all of the
24producers voting in the referendum.



The secretary shall establish a period in which to
26conduct the referendum which shall not be less than 10 days or
27more than 60 days in duration and may prescribe additional
28procedures necessary to conduct the referendum. If the initial
29period established is less than 60 days, the secretary may extend
30the period. However, the total referendum period may not exceed
3160 days.



Nonreceipt of a ballot shall not invalidate a referendum.



If the secretary finds that a favorable vote has been
34given as provided in this article, he or she shall certify the vote
35and give notice of the vote tobegin delete allend delete producers whose names and
36addresses are on file with the secretary.



If the secretary finds that a favorable vote has not been
38given as provided in this article, he or she shall certify the vote
39and declare this chapter inoperative. The secretary may conduct
P14   1another implementation referendum vote one or more years after
2the previous vote has been taken.



(a) Upon certification of the commission, the secretary
4shall contactbegin delete allend delete producers and handlers in a manner determined
5by the secretary for the purpose of nominating and electing persons
6to the commission board of directors.

7(b) Subsequent to the firstbegin delete selectionend deletebegin insert electionend insert of members of the
8commission board of directors,begin insert or appointment in cases of a public
9 member,end insert
producers and handlers shall be selected pursuant to
10nomination and election procedures established by the commission
11board of directors with the concurrence of the secretary.



Prior to the referendum vote conducted by the secretary
13pursuant to this article, the proponents of the commission shall
14deposit with the secretary an amount of funds determined necessary
15by the secretary to defray the expenses of preparing the necessary
16lists and information and conducting the vote. Any funds not used
17for this purpose shall be returned to the proponents of the
18commission who deposited the funds with the secretary. Upon
19establishment of the commission, the commission board of
20directors may reimburse the proponents of the commission for any
21funds deposited with the secretary and for any legal expenses and
22costs incurred in establishing the commission.


24Article 6.  Assessments and Records




(a) The commission board of directors shall, no later
27than the beginning of each marketing season, or as soon thereafter
28as possible, establish the assessment to be paid bybegin delete theend delete producers
29begin insert and collected by handlers end insert for the marketing season. The
30assessment shall not be more than twenty-five cents ($0.25) per
31gallon for all olive oil handled as specified in this chapterbegin insert and shall
32not exceed the reasonable costs of implementing this chapterend insert

33(b) An assessment greater than the amounts in this section shall
34not be charged unless it is approved in accordance with the voting
35requirements provided in Section 79862.begin insert If a handler purchases
36oil olives and processes the oil olives into olive oil, the handler
37shall pay an equivalent assessment for the oil olives processed.end insert



This chapter does not apply tobegin insert a producer’s oil olives
39processed intoend insert
olive oilbegin delete produced onlyend delete forbegin delete a producer’send deletebegin insert his or herend insert
40 home use.

P15   1


begin insert(a)end insertbegin insertend insertHandlers of olive oil shall keep a complete and
2accurate record of allbegin insert oil olives purchased by them andend insert olive oil
3handled by them with the name of the producer or producers whose
4begin delete olive oil wasend deletebegin insert oil olives were purchased orend insert handled.begin delete Aend delete

5begin insert(b)end insertbegin insertend insertbegin insertAend insert producerbegin delete that delivers or markets olive oil to persons other
6than to a handlerend delete
begin insert who handles olive oil made from his or her oil
7olives end insert
shall keep a complete and accurate record ofbegin delete all thatend deletebegin insert theend insert
8 olive oilbegin insert handledend insert.begin delete Theend delete

9begin insert(c)end insertbegin insertend insertbegin insertTheend insert recordsbegin insert described in subdivisions (a) and (b)end insert shall
10contain information required by the commission. The records shall
11be preserved by the producer or handler for a period of two years
12and shall be offered and submitted for inspection at any reasonable
13time upon written demand by the commission or its duly authorized



(a) All proprietary information obtained by the
16commission or the secretary from any source, including the names
17and addresses of producers, shall be confidential and shall not be
18disclosed except if required by court order in a judicial proceeding.

19(b) Information on volume shipments and any other related
20information that is required for reports to governmental agencies,
21financial reports to the commissionbegin delete orend deletebegin insert onend insert aggregate sales and
22inventory information, and any other information that gives only
23totals, but excludes individual information, may be disclosed by
24the commission.



The first handler of olive oil being assessed shall deduct
26the assessment from amounts paid by him or her to the producer,
27and shall be a trustee of the funds until they are paid to the
28commission at the time and in the manner prescribed by the
29commissionbegin insert board of directorsend insert. A producer who handles olive oil
30begin insert made from his or her oil olivesend insert shall pay an assessment directly to
31the commission at the time and in the manner prescribed by the
32commission board of directors.



Every handler shall be personally liable for the payment
34of thebegin insert assessmentsend insert collectedbegin delete assessmentsend delete from producers, and
35failure to collect the assessment from any producer shall not exempt
36the handler from liability.



An assessment that is levied as provided in this chapter
38is a personal debt of the producer assessed.



(a) A person who fails to file a return or pay an
40assessment within the time required by the commission shall pay
P16   1to the commission a penalty of 10 percent of the amount of the
2assessment determined to be past due and, in addition, interest on
3the unpaid balance at the rate of 1.5 percent per month.

4(b) In addition to any other penalty imposed, the commission
5may require a person who fails to pay an assessment or related
6charge pursuant to this article to furnish and maintain a surety
7bond in a form and amount and for a period of time specified by
8the commission board of directors as assurance that all payments
9to the commission will be made when due.


11Article 7.  Actions and Penalties




A civil penalty not exceeding one thousand dollars
14($1,000) may be levied by the commission upon a person who
15does any of the following:

16(a) Willfullybegin delete toend delete render or furnish a false report, statement, or
17record required by the commission, or in any way to affect the
18shipment and marketing of olive oil in order to avoid payment of
19assessments on the product’s highest value.

20(b) Fail to render or furnish a report, statement, or record
21required by the commission.

22(c) When engaged in the producingbegin insert of oil olives for processing
23into olive oilend insert
or handling of olive oil, begin deleteto end deletefail or refuse to furnish to
24the commission or its duly authorized agents, upon request,
25information concerning the name and address of the persons from
26whom he or she has received olive oil and the quantity so received.

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



For purposes of according individuals aggrieved by its
30actions or determinations, the commission board of directors shall
31establish procedures for an informal hearing before the commission
32or before a committee of the commission established for this
33purpose. Appeals from the decision of the commission board of
34directors may be made to the secretary. The determination of the
35secretary shall be subject to judicial review upon petition filed
36with the appropriate superior court.



(a) The commission may commence civil actions and
38utilize all remedies provided in law or equity for the collection of
39assessments and civil penalties, and for obtaining injunctive relief
40or specific performance, relating to this chapter and the rules and
P17   1regulations adopted under this chapter. A court shall issue to the
2commission any requested writ of attachment or injunctive relief
3upon a prima facie showing by verified complaint that a named
4defendant has violated this chapter or any other rule or regulation
5of the commission, including, but not limited to, the nonpayment
6of assessments. No bond shall be required to be posted by the
7commission as a condition for the issuance of any writ of
8attachment or injunctive relief.

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

17(c) Upon entry of any final judgment on behalf of the
18commission against any defendant, the court shall enjoin the
19defendant from conducting any type of business regardingbegin insert the
20production of oil olives or handling ofend insert
olive oil until there is full
21compliance with, and satisfaction of, the judgment.

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



Any action by the commission for any penalty or other
30remedy that is prescribed under this chapter shall be commenced
31within two years from the date of discovery of the alleged violation.
32Any action against the commission by any person shall be
33commenced within two years from the date of the alleged violation.



The commission shall not be required to allege or prove
35that an adequate remedy at law does not exist in any action brought
36under this chapter.



This chapter shall be liberally construed. If any section,
38clause, or part of this chapter is for any reason held unconstitutional
39or invalid as applied to any person or as applied under certain
40circumstances, that decision shall not affect the remaining portions
P18   1of this chapter or the application of this chapter to any other persons
2or under any other circumstance.



The termination of this chapter shall not affect or waive
4any right, duty, obligation, or liability that has arisen or that may
5thereafter arise in connection with this chapter, release or
6extinguish any violation of this chapter, or affect or impair any
7right or remedies of the commission with respect to any violation.


9Article 8.  Continuation or Suspension and Termination




(a) Five years after implementation of this chapter, the
12secretary shall hold a public hearing, after providing proper notice
13tobegin delete allend delete persons subject to this chapter and any other persons or
14entities who have requested, in writing, notice of the hearing, to
15determine whether the operation of this chapter should be
16continued. If the secretary finds after the hearing that a substantial
17question exists among thebegin delete personsend deletebegin insert producersend insert assessed under this
18chapter regarding whether the operation of this chapter should be
19continued, the secretary shall submit the chapter to a reapproval
20referendum to be conducted among producers to determine whether
21the operation of this chapter shall be reapproved and continued in

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



Following a hearing, and favorable referendum if
36required, the process specified in Section 79891 shall be conducted
37by the secretary every five years thereafter between July 1 and
38June 30 of the following year, unless a referendum is conducted
39as the result of a petition pursuant to Section 79893. In that case,
P19   1the hearing, and referendum if required, shall be conducted every
2five years following the industry petitioned referendum.



(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) begin insert(1)end insertbegin insertend insertThe secretary shall, upon receipt of a recommendation,
10or may, after a public hearing to review a petitionbegin delete filed with him
11or her requesting the suspension, signed by 15 percent of the
12producers by number that produced not less than 15 percent of the
13volume in the immediately preceding marketing season,end delete
begin insert described
14in paragraph (2) requesting the suspension,end insert
cause a referendum
15to be conducted among the listed producers to determine if the
16operations of the commission shall be suspended.begin delete However, theend delete
17begin insert Theend insert secretary shall not hold a referendum as a result ofbegin delete theend deletebegin insert aend insert
18 petitionbegin insert described in paragraph (2)end insert unless the petitioner shows by
19the weight of evidence thatbegin insert the implementation ofend insert this chapter has
20not effectuated its declared purposes.

begin insert

21(2) A petition filed requesting suspension of the commission
22shall be signed by at least 15 percent of the producers, by number,
23who also produce at least 15 percent of the total volume of oil
24olives marketed in the preceding marketing season.

end insert

25(c) The secretary shall establish a referendum period, which
26shall not be less than 10 days or more than 60 days in duration.
27The secretary may prescribe additional procedures necessary to
28conduct the referendum. At the close of the established referendum
29period, the secretary shall tabulate the ballots filed during the
30period. The secretary shall suspend the operation of this chapter,
31if the secretary finds at least 40 percent of the total number of
32producers from the list established by the secretary participate,
33and that either of the following occurs:

34(1) Sixty-five percent of the producers that voted in the
35referendum voted in favor of suspension, and the producers so
36voting produced a majority of the total quantity ofbegin insert oil olives
37processed intoend insert
olive oilbegin delete producedend delete in the preceding marketing season
38by all of the producers voting in the referendum.

39(2) A majority of the producers that voted in the referendum
40voted in favor of suspension, and the producers so voting produced
P20   165 percent or more of the total quantity ofbegin insert oil olives processed intoend insert
2 olive oilbegin delete producedend delete in the preceding marketing season by all of the
3producers voting in the referendum.



After the effective date of suspension of this chapter,
5the operations of the commission shall be concluded and all moneys
6held by the commission, and moneys collected by assessment and
7not required to defray the expenses of concluding and terminating
8operations of the commission, shall be returned upon a pro rata
9basis to all persons from whom assessments were collected in the
10immediately preceding marketing season. However, if the
11commission board of directors finds that the amounts returnable
12are so small as to make impractical the computation and remitting
13of the pro rata refund to those persons, any moneys remaining after
14payment of all expenses of winding up and terminating operations
15shall be withdrawn from the approved depository and paid into an
16appropriate state or federal program or used to fund activities
17related to the subject matter of this chapter.



Upon suspension of the operation of this chapter, the
19commission shall mail a copy of the notice of suspension to begin deleteallend delete
20 producers affected by the suspension whose names and addresses
21are on file.


23Article 9.  Quality Standards




The commission board of directors may recommend
26to the secretary the adoptionbegin insert and amendmentend insert of olive oil grades
27and labeling standards,begin delete the amendment of the standards when
28appropriate, and the adoption of inspection procedures,
29enforcement, and fees associated with the activityend delete
in accordance
30with the California Marketing Act of 1937 (Chapter 1 (commencing
31with Section 58601) of Part 2 of Division 21), unless otherwise
32specified in this article.

begin delete


Grades and standards adopted pursuant to this article
34shall be implemented by the secretary at the beginning of the
35marketing season following the date on which the activity is
36approved by the secretary.

end delete
P21   1

begin delete79903.end delete
2begin insert79902.end insert  

The commissionbegin insert board of directorsend insert shall serve as the
3advisory body to the secretary on all matters pertaining to this