BILL NUMBER: SB 250	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 14, 2013
	AMENDED IN SENATE  APRIL 10, 2013

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.


	LEGISLATIVE COUNSEL'S DIGEST


   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,  carry out programs of research relating
to olive oil   conduct research for specified purposes
 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  or the reasonable costs of implementing these provisions
 , on producers, as defined, and would authorize the commission
to  expand   expend  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 provisions 
and regulations adopted pursuant to these provisions  .
   Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Chapter 29 (commencing with Section 79800) is added to
Part 2 of Division 22 of the Food and Agricultural Code, to read:
      CHAPTER 29.  OLIVE OIL COMMISSION OF CALIFORNIA



      Article 1.  Declarations and General Provisions


   79800.  The production  of oil olives for processing into
olive oil  and marketing of  the  olive oil constitutes
an important industry of this state which provides substantial and
necessary revenues for the state and employment for its citizens.
   79801.  The establishment of the commission is necessary for the
efficient creation and management of the activities authorized in
this chapter. The commission is also necessary to enhance the
competitiveness of the  California olive oil 
industry within the state, national, and international marketplace.
   79802.  The maintenance of the  olive oil 
industry in California is necessary to ensure  the public has
 a continuous supply of  this important commodity
  oil olives and the resulting olive oil  and to
ensure the needed levels of income  are maintained  for
those engaged in the  production of oil olives for processing
into  olive oil  industry of this state are maintained
  and the marketing of olive oil .
   79803.  The production  and handling   of oil
olives for processing into olive oil and the marketing  of
olive oil produced in this state is hereby declared to be a public
interest. This chapter is enacted in the exercise of the police power
of this state for the purpose of protecting the health, peace,
safety, and general welfare of the people of this state.
   79804.  The commission form of administration created by this
chapter is uniquely situated to provide those engaged in  the
production of olive oil   the activities specified in
this chapter  the opportunity to avail themselves of the
benefits of collective action in the broad fields of olive oil
 quality  research,  nutritional research,
 and grades and labeling standards.
   79805.  No action taken by the commission, or by any individual in
accordance with this chapter or with rules and regulations adopted
under this chapter, shall be deemed a violation of the Cartwright Act
(Chapter 2 (commencing with Section 16700) of Part 2 of Division 7
of the Business and Professions Code), the Unfair Practices Act
(Chapter 4 (commencing with Section 17000) of Part 2 of Division 7 of
the Business and Professions Code), or any rule of statutory or
common law against monopolies or combinations in restraint of trade.
   79806.  It is hereby declared as a matter of legislative
determination that members of the commission are intended to
represent and further the interest of the particular industry
concerned and that this representation and furtherance is intended to
serve the public interest. Accordingly, the Legislature finds that
with respect to persons who are elected or appointed to the
commission, the particular industry concerned is tantamount to, and
constitutes the public generally within the meaning of Section 87103
of the Government Code.

      Article 2.  Definitions


   79811.  Unless the context otherwise requires, the definitions in
this article govern the construction of this chapter.
   79812.  "Olive oil" means the oil obtained solely from the fruit
of the olive tree (Olea europea L.) which is produced in California
for commercial purposes. 
   79812.5.  "Oil olives" means fruit of the olive tree (Olea europea
L.) grown for the purpose of processing into olive oil. 
   79813.  "Books and records" means books, records, contracts,
documents, memoranda, papers, correspondence, or other written data
pertaining to matters relating to the activities subject to this
chapter.
   79814.  "Commission" means the Olive Oil Commission of California.

   79815.  (a) "Districts" consist of the following:
   (1) District 1 consists of the Counties of Butte, Del Norte,
Glenn, Humboldt, Lassen, Modoc, Plumas, Shasta, Siskiyou, Tehama, and
Trinity.
   (2) District 2 consists of the Counties of Amador, Colusa, El
Dorado, Lake, Marin, Mendocino, Napa, Nevada, Placer, Sacramento,
Sierra, Solano, Sonoma, Sutter, Yolo, and Yuba.
   (3) District 3 consists of the Counties of Alameda, Calaveras,
Contra Costa, Fresno, Imperial, Inyo, Kern, Kings, Los Angeles,
Madera, Mariposa, Merced, Mono, Monterey, Orange, Riverside, San
Benito, San Bernardino, San Diego, San Francisco, San Joaquin, San
Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz,
Stanislaus, Tulare, Tuolumne, and Ventura. 
   (b) The boundaries of a district may be changed and districts may
be added or eliminated by a two-thirds vote of the commission board
of directors, which is concurred in by the secretary, if proper
notice is provided to all persons subject to this chapter prior to
the action. The boundaries need not coincide with county lines.
 
   (c) 
    (b)  The commission board of directors shall
periodically determine whether the olive oil acreage in any of the
districts varies by more than 20 percent from the olive oil acreage
in  the  other districts and draw new district lines
in the event  the   a  variance exists.
This action shall be approved by a two-thirds vote of the commission
board of directors. 
   (c) The boundaries of a district may be changed and districts may
be added or eliminated by a two-thirds vote of the commission board
of directors, which is concurred in by the secretary, if notice is
provided to all persons subject to this chapter prior to the action.
The boundaries need not coincide with county lines. 
   79816.  "Ex officio members" are nonvoting members of the
commission  board of directors  .
   79817.  "Handle" means to engage in the business of a handler.
   79818.  (a) "Handler" means a person who engages, in this state,
in the operation of  processing, selling, or 
marketing olive oil that he or she has produced  ,  or
purchased or acquired from  a  an oil olive
 producer, or that he or she is marketing on behalf of 
a   an oil olive  producer, whether as owner,
agent, employee, broker, or otherwise.
   (b) When the handler is a corporation or a limited liability
company, all of the directors, officers, managers, and members of the
corporation or limited liability company in their capacity as
individuals shall be included, and any liability for failure to
collect or make payment of assessments to which a corporate handler
or a handler that is a limited liability company may be subject
pursuant to this chapter shall include identical liability upon each
individual director, officer, manager, or member of the corporation
or limited liability company.
   (c) "Handler" does not include a retailer.
   79819.  "Market" or "marketing" means to sell  or
otherwise distribute  olive oil into commercial channels
 or trade, resulting in the sale of olive oil  
of trade  .
   79820.  "Marketing season" or "fiscal year" are synonymous terms
and mean the period beginning July 1 of any year and extending
through June 30 of the following year.
   79821.  "Producer" means any person that produces or causes to be
produced  oil  olives that are processed into olive oil in
 excess   the amount of 5,000 gallons 
or more  during the marketing season and that shall, upon
request of the commission, provide proof of commodity sale.
   79822.  "Secretary" means the Secretary of Food and Agriculture.
   79823.  "Advisory committee" means a committee appointed by the
secretary from applications received from  producers
  persons  that produce  or cause to be
produced oil  olives that are processed into less than 5,000
gallons of olive oil during the marketing season.

      Article 3.  Olive Oil Commission of California


   79831.  (a) There is in the state government the Olive Oil
Commission of California. Except as provided in subdivision (d), the
commission board of directors shall be composed of the following:
   (1) Six producers, two from each district.
   (2) Three handlers, one from each district.
   (3) One public member who shall be appointed to the commission
 board of directors  by the secretary from nominees
recommended by the commission board of directors.
   (b) The chair of the advisory committee shall be an ex officio
member of the commission board of directors.
   (c) The secretary and other appropriate persons as determined by
the commission board of directors shall be ex officio members.
   (d) The commission board of directors may modify the number of
producers and handlers who serve on the commission board of directors
by a two-thirds vote that is concurred in by the secretary, if
proper notice is provided to all persons subject to this chapter
prior to the action.
   (e) An advisory committee shall meet periodically to review issues
affecting the purposes of this chapter and shall advise the
commission board of directors. The committee shall consist of seven
members who shall each serve three-year terms. The chair of the
committee shall be selected by the members.
   79832.  (a) The secretary may require the commission to correct or
cease any existing activity or function that is determined by the
secretary not to be in the public interest or in violation of this
chapter.
   (b) If the commission refuses or fails to cease those activities
or functions or to make corrections as required by the secretary, the
secretary may, upon written notice, suspend all or a portion of the
activities or functions of the commission until such time as the
cessation or correction of activities or functions as required by the
secretary has been accomplished by the commission.
   (c) Actions of the commission in violation of the secretary's
written notice shall be without legal force or effect. The secretary,
to the extent feasible, shall issue the written notice prior to the
commission entering into any contractual relationship affecting the
existing or proposed activities or functions that are the subject of
the written notice.
   (d) Upon service of the written notice, the secretary shall notify
the commission in writing of the specific acts that he or she
determines are not in the public interest or are in violation of this
chapter, and his or her reasons for requiring a cessation or
correction of specific existing or proposed activities or functions,
and may make recommendations that will make those activities or
functions acceptable to the secretary.
   79833.  The commission or the secretary may bring an action for
judicial relief from the secretary's written notice, or from
noncompliance by the commission with the written notice, in a court
of competent jurisdiction, which may issue a temporary restraining
order, permanent injunction, or other applicable relief.
   79834.  The commission shall reimburse the secretary for all
expenditures incurred by the secretary in carrying out his or her
duties and responsibilities under this chapter. However, a court may,
if it finds that the secretary acted arbitrarily or capriciously in
restricting the activities or functions of the commission, relieve
the commission of the responsibility for payment of the secretary's
legal costs with regard to that action.
   79835.  Except for the ex officio members of the commission 
board of directors  , each member of the commission board of
directors shall have an alternate member elected in the same manner
as the member. An alternate member, in the absence of the member for
whom he or she is an alternate, shall serve in place of the member.
An alternate member may also serve in place of any other absent
member of the same classification, producer or handler, if the member'
s alternate is also absent. However, an alternate member may not
serve in place of more than one absent member at a meeting. An
alternate member serving in place of a member shall have and be able
to exercise all rights, privileges, and powers of the member when
serving. In the event of death, removal, resignation, or the
disqualification of a member, the alternate for the member, or
another alternate of the same classification if the alternate member
for the member is absent, shall act as the member until a qualified
successor is elected.
   79836.  Any vacancy on the commission board of directors,
including, but not limited to, the failure of any person elected 
or appointed  to the commission board of directors as a member
or alternate member to continue in his or her position due to a
change in status making him or her ineligible to serve, or due to
death, removal, or resignation, shall be filled by the 
appointment   election  of another person,  or
appointment in   the case of a public member,  for the
unexpired portion of the term,  with elected positions to be
filled  by a majority vote of the commission board of directors.
However, the  appointee   person elected or
appointed  shall fulfill all the qualifications set forth in
this article as required for the office he or she is to occupy. The
qualifications of any person to fill a vacancy shall be certified in
writing to the secretary. The secretary shall notify the commission
if he or she determines that the person is not qualified.
   79837.  A producer member or his or her alternate on the
commission board of directors shall be an individual, partner, or
employee of a producer who has a financial interest in producing, or
causing to be produced,  olive oil for market  
oil olives for processing into olive oil  . The producer member
or his or her alternate shall be in compliance with this section
during the entire term of his or her office.
   79838.  The public member, or his or her alternate on the
commission board of directors, shall have all the powers, rights, and
privileges of any other member on the commission board of directors.
The public member shall not have any financial interest in the 
production or processing of oil olives or the marketing of 
olive oil  industry  but may be an individual who
provides services to individuals who do have a financial interest.
The public member or his or her alternate shall be in compliance with
this section during the entire term of his or her office.
   79839.  (a) Except as provided in paragraphs (1) and (2), the term
of office of all members of the commission board of directors and
 their  alternates, except any ex officio member, shall be
three years from the date of their election and until their
successors are elected.
   (1) Of the first producer members, one from each district shall
serve two years and one from each district shall serve three years.
   (2) Of the first handler members, one shall serve one year, one
shall serve two years, and one shall serve three years.
   (b) The determination of the term of each member shall be made by
lot at the time of election. 
   (c) An alternate shall serve the same term as the member for whom
he or she serves as alternate. 
   79840.  The commission may sue and be sued and enter into
contracts. Copies of its proceedings, records, and acts, when
authenticated, shall be admissible in evidence in all courts of the
state, and shall be prima facie evidence of the truth of all
statements within the proceedings, records, and acts.
   79841.  A quorum of the commission board of directors is a
majority of the members  authorized to vote  . Except as
otherwise provided in this chapter, the vote of a majority of 
these  members present at a meeting at which there is a quorum
shall constitute an act of the commission.
   79842.  The secretary or his or her representatives shall be
notified and may attend each meeting of the commission board of
directors and any meetings of a committee established by the
commission. However, the secretary is not entitled to attend an
executive session of the commission board of directors called for the
purpose of discussing potential or actual litigation against the
department.
   79843.  A member of the commission board of directors or of any
committee established by the commission, which may include nonmembers
of the commission board of directors, shall not receive a salary.
Except for ex officio government members,  the members
  a member  may receive reasonable and necessary
traveling expenses and meal allowances, as established by the
commission board of directors, for each day spent in actual
attendance at, or in traveling to and from, meetings of the
commission or committees of the commission, or on special assignment
for the commission.
   79844.  If the secretary is required to concur in a decision of
the commission, he or she shall indicate his or her response within
15 working days from notification of the decision. The response may
be a request that additional information be provided.
   79845.  All moneys received by any person from assessments levied
under the authority of this chapter or otherwise received by the
commission shall be deposited in banks designated by the commission
board of directors and shall be disbursed by order of the commission
board of directors through an agent or agents designated for that
purpose. Any authorized agent or agents shall be bonded by a fidelity
bond, executed by a surety company authorized to transact business
in the state, in favor of the commission, in the amount of not less
than twenty-five thousand dollars ($25,000).
   79846.  The state shall not be liable for the acts of the
commission or its contracts. Payments of all claims arising by reason
of the administration of this chapter or acts of the commission
shall be limited to the funds collected by the commission. 
Members,   Members and  alternate members of the
commission board of directors, employees, and agents of the
commission shall not be personally liable for the contracts of the
commission, and  members,   members and 
alternate members of the commission board of directors, and employees
of the commission shall not be responsible individually in any way
to a producer, handler, or any other person for error in judgment,
mistakes, or other acts, either of commission or omission, as
principal, agent, or employee, except for his or her own individual
acts of dishonesty or crime. Members and alternate members of the
commission board of directors shall not be held responsible
individually for any act or omission of any other member or alternate
member. The liability of the members and alternate members of the
commission  board of directors  shall be several and not
joint, and a member or alternate member shall not be liable for the
default of any other member or alternate member.

      Article 4.  Powers and Duties


   79851.  The powers and duties of the commission board of directors
shall include, but are not limited to, all of the following:
   (a) Adopt and from time to time alter, rescind, modify, and amend
bylaws, rules,  regulations,  and  orders
  orders, and recommend regulations in accordance with
Article 9  for carrying out this chapter, including rules for
appeals from any bylaw, rule, regulation,  or orders
  order, or recommended regulation  . These actions
shall not be subject to Chapter 3.5 (commencing with Section 11340)
of Part 1 of Division 3 of Title 2 of the Government Code.
   (b) Administer and enforce this chapter and perform all acts and
exercise all powers incidental to, or in connection with, or
determined reasonably necessary for, proper or advisable effectuation
of the purposes of this chapter.
   (c) Appoint its own officers  from the members of the
commission board of directors  , including a chairperson, one or
more vice chairpersons, and any other officers as it determines
necessary. The officers shall have the powers and duties delegated to
them by the commission board of directors.
   (d) Employ a person to serve at the pleasure of the commission as
president and chief executive officer, and other personnel, including
legal counsel, necessary to carry out this chapter. The commission
may retain a management firm or staff from any board, commission, or
committee of the state to perform the functions prescribed by this
subdivision under control of the commission board of directors. If a
person subject to this subdivision engages in conduct that the
secretary determines to be in violation of this chapter, or is not in
the public interest, the secretary shall notify the commission of
the conduct and request that corrective, and if appropriate,
disciplinary action, be taken by the commission board of directors.
If the commission board of directors fails or refuses to correct the
situation or to take disciplinary action satisfactory to the
secretary, the secretary may suspend or discharge the person subject
to this subdivision.
   (e) Fix the compensation for all employees.
   (f) Appoint committees composed of both members and nonmembers of
the commission board of directors to advise in carrying out this
chapter.
   (g) Establish offices and incur expenses, invest funds, enter into
contracts and agreements, and create liabilities and borrow funds in
advance of receipt of assessments as determined necessary for the
proper administration and enforcement of this chapter and the
performance of its duties.
   (h) Keep accurate books, records, and accounts of all of its
dealings, which shall be subject to an annual audit by an auditing
firm selected by the commission board of directors with the
concurrence of the secretary. The audit shall be made a part of an
annual report to all producers of  olive oil  
oil olives and handlers subject to this chapter  , and,
notwithstanding Sections 9795 and 10231.5 of the Government Code,
copies of the audit shall be submitted to the Legislature and the
department. In addition, the secretary may, as he or she determines
necessary, conduct, or cause to be conducted, a fiscal and compliance
audit of the commission.
   (i) Present facts to, and negotiate with, state, federal, and
foreign agencies on matters that affect the  handling of
olive oil   purposes of this chapter  .
   (j) Make, in the name of the commission, contracts to render
service in formulating and conducting plans and programs, and any
other contracts or agreements determined to be necessary for the
purposes specified in this chapter.
   (k) Conduct, and contract with others to conduct, research,
including the study, analysis, dissemination, and accumulation of
information obtained from research or elsewhere  with respect
to olive oil quality research and nutritional research 
 for purposes described in this chapter  . In connection
with the research, accept contributions of, or to match, private,
state, or federal funds that may be available for these purposes, and
to employ or make contributions of funds to other persons or state
or federal agencies conducting the research.
   (l) Collect information and publish and distribute to producers a
bulletin or other communication for dissemination of 
information, including, but not limited to, crop statistics relating
to the olive oil industry   information relating to this
chapter  .
   (m) Establish an assessment rate to defray operating costs.
   (n) Establish an annual budget according to accepted accounting
practices. The budget shall be concurred in by the secretary prior to
disbursement of funds, except for disbursements made pursuant to
subdivision (e).
   (o) Submit to the secretary for his or her concurrence, an annual
statement of contemplated activities authorized under this chapter.
   (p) Investigate and prosecute civil violations of this chapter and
file complaints with appropriate law enforcement agencies or
officers for suspected criminal violations of this chapter.
   (q) Engage in activities and administer any program authorized in
Article 9 (commencing with Section 79901) of this chapter.
   (r) Prescribe the form and manner by which proponents and
opponents of the commission may contact producers so long as all
expenses associated with the contacts are paid in advance.

      Article 5.  Implementation and Voting Procedures


   79861.  (a) Prior to January 15,   Before
February 1,  2014, the secretary shall establish a list of
producers eligible to vote on the implementation of this chapter. In
establishing the list, the secretary shall require that 
producers of olive oil in California   handlers of oil
olives  submit  their names,   the names
and  mailing addresses  of producers from whom oil olives
are received  , and the volume of olive oil  produced
  resulting from each producer's oil olives that was
marketed  during the preceding marketing season. The request for
the information shall be in writing. The information shall be filed
within 10 days following receipt of the written request for
information.
   (b) A producer  of olive oil  whose name does not
appear  upon   on  the secretary's list
may have his or her name placed on the list by filing with the
secretary a signed statement identifying himself or herself as a
producer. Failure to be on the list does not exempt the producer from
paying assessments under this chapter.
   79862.  This chapter, except as necessary to conduct an
implementation referendum vote, shall not become operative until the
secretary finds at least 40 percent of the total number of producers
from the list established by the secretary pursuant to this article
participate, and that either of the following occurs:
   (a) Sixty-five percent of the producers who voted in the
referendum voted in favor of this chapter, and the producers so
voting produced a majority of the total quantity of  oil olives
processed into  olive oil  produced  in the
preceding marketing season by all of the producers voting in the
referendum.
   (b) A majority of the producers who voted in the referendum voted
in favor of this chapter, and the producers so voting produced 65
percent or more of the total quantity of  oil olives processed
into  olive oil  produced  in the preceding
marketing season by all of the producers voting in the referendum.
   79863.  The secretary shall establish a period in which to conduct
the referendum which shall not be less than 10 days or more than 60
days in duration and may prescribe additional procedures necessary to
conduct the referendum. If the initial period established is less
than 60 days, the secretary may extend the period. However, the total
referendum period may not exceed 60 days.
    79864.  Nonreceipt of a ballot shall not invalidate a referendum.

   79865.  If the secretary finds that a favorable vote has been
given as provided in this article, he or she shall certify the vote
and give notice of the vote to  all  producers whose
names and addresses are on file with the secretary.
   79866.  If the secretary finds that a favorable vote has not been
given as provided in this article, he or she shall certify the vote
and declare this chapter inoperative. The secretary may conduct
another implementation referendum vote one or more years after the
previous vote has been taken.
   79867.  (a) Upon certification of the commission, the secretary
shall contact  all  producers and handlers in a
manner determined by the secretary for the purpose of nominating and
electing persons to the commission board of directors.
   (b) Subsequent to the first selection  
election  of members of the commission board of directors, 
or appointment in cases of a public   member, 
producers and handlers shall be selected pursuant to nomination and
election procedures established by the commission board of directors
with the concurrence of the secretary.
   79868.  Prior to the referendum vote conducted by the secretary
pursuant to this article, the proponents of the commission shall
deposit with the secretary an amount of funds determined necessary by
the secretary to defray the expenses of preparing the necessary
lists and information and conducting the vote. Any funds not used for
this purpose shall be returned to the proponents of the commission
who deposited the funds with the secretary. Upon establishment of the
commission, the commission board of directors may reimburse the
proponents of the commission for any funds deposited with the
secretary and for any legal expenses and costs incurred in
establishing the commission.

      Article 6.  Assessments and Records


   79871.  (a) The commission board of directors shall, no later than
the beginning of each marketing season, or as soon thereafter as
possible, establish the assessment to be paid by  the
 producers  and collected by handlers  for the
marketing season. The assessment shall not be more than twenty-five
cents ($0.25) per gallon for all olive oil handled as specified in
this chapter  and shall not exceed the reasonable costs of
implementing this chapter  .
   (b) An assessment greater than the amounts in this section shall
not be charged unless it is approved in accordance with the voting
requirements provided in Section 79862.  If a handler purchases
oil olives and processes the oil olives into olive oil, the handler
shall pay an equivalent assessment for the oil   olives
processed. 
   79872.  This chapter does not apply to  a producer's oil
olives processed into  olive oil  produced only
 for a producer's   his or her 
home use.
   79873.   (a)    Handlers of olive oil shall keep
a complete and accurate record of all  oil olives purchased by
them and  olive oil handled by them with the name of the
producer or producers whose  olive oil was   oil
olives were purchased or  handled.  A
    (b)     A  producer  that
delivers or markets olive oil to persons other than to a handler
  who handles olive oil made from his or her oil olives
 shall keep a complete and accurate record of  all that
  the  olive oil  handled  .  The

    (c)     The  records  described in
subdivisions (a) and (b)  shall contain information required by
the commission. The records shall be preserved by the producer or
handler for a period of two years and shall be offered and submitted
for inspection at any reasonable time upon written demand by the
commission or its duly authorized agent.
   79874.  (a) All proprietary information obtained by the commission
or the secretary from any source, including the names and addresses
of producers, shall be confidential and shall not be disclosed except
if required by court order in a judicial proceeding.
   (b) Information on volume shipments and any other related
information that is required for reports to governmental agencies,
financial reports to the commission  or   on
 aggregate sales and inventory information, and any other
information that gives only totals, but excludes individual
information, may be disclosed by the commission.
   79875.  The first handler of olive oil being assessed shall deduct
the assessment from amounts paid by him or her to the producer, and
shall be a trustee of the funds until they are paid to the commission
at the time and in the manner prescribed by the commission 
board of directors  . A producer who handles olive oil  made
from his or her oil olives  shall pay an assessment directly to
the commission at the time and in the manner prescribed by the
commission board of directors.
   79876.  Every handler shall be personally liable for the payment
of the  assessments  collected  assessments
 from producers, and failure to collect the assessment from
any producer shall not exempt the handler from liability.
   79877.  An assessment that is levied as provided in this chapter
is a personal debt of the producer assessed.
   79878.  (a) A person who fails to file a return or pay an
assessment within the time required by the commission shall pay to
the commission a penalty of 10 percent of the amount of the
assessment determined to be past due and, in addition, interest on
the unpaid balance at the rate of 1.5 percent per month.
   (b) In addition to any other penalty imposed, the commission may
require a person who fails to pay an assessment or related charge
pursuant to this article to furnish and maintain a surety bond in a
form and amount and for a period of time specified by the commission
board of directors as assurance that all payments to the commission
will be made when due.

      Article 7.  Actions and Penalties


   79881.  A civil penalty not exceeding one thousand dollars
($1,000) may be levied by the commission upon a person who does any
of the following:
   (a) Willfully  to  render or furnish a false
report, statement, or record required by the commission, or in any
way to affect the shipment and marketing of olive oil in order to
avoid payment of assessments on the product's highest value.
   (b) Fail to render or furnish a report, statement, or record
required by the commission.
   (c) When engaged in the producing  of oil olives for
processing into olive oil  or handling of olive oil,  to
 fail or refuse to furnish to the commission or its duly
authorized agents, upon request, information concerning the name and
address of the persons from whom he or she has received olive oil and
the quantity so received.
   (d) Secrete, destroy, or alter records required to be kept by this
chapter.
   79882.  For purposes of according individuals aggrieved by its
actions or determinations, the commission board of directors shall
establish procedures for an informal hearing before the commission or
before a committee of the commission established for this purpose.
Appeals from the decision of the commission board of directors may be
made to the secretary. The determination of the secretary shall be
subject to judicial review upon petition filed with the appropriate
superior court.
   79883.  (a) The commission may commence civil actions and utilize
all remedies provided in law or equity for the collection of
assessments and civil penalties, and for obtaining injunctive relief
or specific performance, relating to this chapter and the rules and
regulations adopted under this chapter. A court shall issue to the
commission any requested writ of attachment or injunctive relief upon
a prima facie showing by verified complaint that a named defendant
has violated this chapter or any other rule or regulation of the
commission, including, but not limited to, the nonpayment of
assessments. No bond shall be required to be posted by the commission
as a condition for the issuance of any writ of attachment or
injunctive relief.
   (b) A writ of attachment shall be issued pursuant to Chapter 5
(commencing with Section 485.010) of Title 6.5 of Part 2 of the Code
of Civil Procedure, except that the showing specified in Section
485.010 is not required. Injunctive relief shall be issued pursuant
to Chapter 3 (commencing with Section 525) of Title 7 of Part 2 of
the Code of Civil Procedure, except that the showing of irreparable
harm or of inadequate remedy at law specified by Section 526 or 527
is not required.
   (c) Upon entry of any final judgment on behalf of the commission
against any defendant, the court shall enjoin the defendant from
conducting any type of business regarding  the production of oil
olives or handling of  olive oil until there is full compliance
with, and satisfaction of, the judgment.
   (d) Upon a favorable judgment for the commission, the court may
order that the commission be reimbursed for reasonable attorney's
fees and other related costs actually incurred. Venue for these
actions is at the domicile or place of business of the defendant or
in the county of the principal office of the commission. The
commission may be sued only in the county of its principal office.
   79884.  Any action by the commission for any penalty or other
remedy that is prescribed under this chapter shall be commenced
within two years from the date of discovery of the alleged violation.
Any action against the commission by any person shall be commenced
within two years from the date of the alleged violation.
   79885.  The commission shall not be required to allege or prove
that an adequate remedy at law does not exist in any action brought
under this chapter.
   79886.  This chapter shall be liberally construed. If any section,
clause, or part of this chapter is for any reason held
unconstitutional or invalid as applied to any person or as applied
under certain circumstances, that decision shall not affect the
remaining portions of this chapter or the application of this chapter
to any other persons or under any other circumstance.
   79887.  The termination of this chapter shall not affect or waive
any right, duty, obligation, or liability that has arisen or that may
thereafter arise in connection with this chapter, release or
extinguish any violation of this chapter, or affect or impair any
right or remedies of the commission with respect to any violation.

      Article 8.  Continuation or Suspension and Termination


   79891.  (a) Five years after implementation of this chapter, the
secretary shall hold a public hearing, after providing proper notice
to  all  persons subject to this chapter and any
other persons or entities who have requested, in writing, notice of
the hearing, to determine whether the operation of this chapter
should be continued. If the secretary finds after the hearing that a
substantial question exists among the  persons  
producers  assessed under this chapter regarding whether the
operation of this chapter should be continued, the secretary shall
submit the chapter to a reapproval referendum to be conducted among
producers to determine whether the operation of this chapter shall be
reapproved and continued in effect.
   (b) If the secretary finds after conducting a hearing that no
substantial question exists or, if a reapproval referendum is
required, that a majority of the eligible producers voting in the
referendum voted in favor of continuing the operation of this
chapter, the secretary shall certify the vote and this chapter shall
remain operative. If the secretary finds that a favorable vote has
not been given, he or she shall certify the vote and declare the
operation of this chapter suspended upon the expiration of the
current marketing season. Thereupon, the operations of the commission
shall be concluded and funds distributed in the manner provided in
Section 79894. A bond or security shall not be required for the
referendum.
   79892.  Following a hearing, and favorable referendum if required,
the process specified in Section 79891 shall be conducted by the
secretary every five years thereafter between July 1 and June 30 of
the following year, unless a referendum is conducted as the result of
a petition pursuant to Section 79893. In that case, the hearing, and
referendum if required, shall be conducted every five years
following the industry petitioned referendum.
   79893.  (a) Upon a finding by a two-thirds vote of the commission
board of directors that the operation of this chapter has not tended
to effectuate its declared purposes, the commission may recommend to
the secretary that the commission be suspended. Any suspension shall
not become effective until expiration of the current marketing
season.
   (b)  (1)    The secretary shall, upon receipt of
a recommendation, or may, after a public hearing to review a
petition  filed with him or her requesting the suspension,
signed by 15 percent of the producers by number that produced not
less than 15 percent of the volume in the immediately preceding
marketing season,   described in paragraph (2)
requesting the suspension,  cause a referendum to be conducted
among the listed producers to determine if the operations of the
commission shall be suspended.  However, the  
The  secretary shall not hold a referendum as a result of
 the   a  petition  described in
paragraph (2)  unless the petitioner shows by the weight of
evidence that  the implementation of  this chapter has not
effectuated its declared purposes. 
   (2) A petition filed requesting suspension of the commission shall
be signed by at least 15 percent of the producers, by number, who
also produce at least 15 percent of the total volume of oil olives
marketed in the preceding marketing season. 
   (c) The secretary shall establish a referendum period, which shall
not be less than 10 days or more than 60 days in duration. The
secretary may prescribe additional procedures necessary to conduct
the referendum. At the close of the established referendum period,
the secretary shall tabulate the ballots filed during the period. The
secretary shall suspend the operation of this chapter, if the
secretary finds at least 40 percent of the total number of producers
from the list established by the secretary participate, and that
either of the following occurs:
   (1) Sixty-five percent of the producers that voted in the
referendum voted in favor of suspension, and the producers so voting
produced a majority of the total quantity of  oil olives
processed into  olive oil  produced  in the
preceding marketing season by all of the producers voting in the
referendum.
   (2) A majority of the producers that voted in the referendum voted
in favor of suspension, and the producers so voting produced 65
percent or more of the total quantity of  oil olives processed
into  olive oil  produced  in the preceding
marketing season by all of the producers voting in the referendum.
   79894.  After the effective date of suspension of this chapter,
the operations of the commission shall be concluded and all moneys
held by the commission, and moneys collected by assessment and not
required to defray the expenses of concluding and terminating
operations of the commission, shall be returned upon a pro rata basis
to all persons from whom assessments were collected in the
immediately preceding marketing season. However, if the commission
board of directors finds that the amounts returnable are so small as
to make impractical the computation and remitting of the pro rata
refund to those persons, any moneys remaining after payment of all
expenses of winding up and terminating operations shall be withdrawn
from the approved depository and paid into an appropriate state or
federal program or used to fund activities related to the subject
matter of this chapter.
   79895.  Upon suspension of the operation of this chapter, the
commission shall mail a copy of the notice of suspension to 
all  producers affected by the suspension whose names and
addresses are on file.

      Article 9.  Quality Standards


   79901.  The commission board of directors may recommend to the
secretary the adoption  and amendment  of olive oil grades
and labeling standards,  the amendment of the standards when
appropriate, and the adoption of inspection procedures, enforcement,
and fees associated with the activity  in accordance with
the California Marketing Act of 1937 (Chapter 1 (commencing with
Section 58601) of Part 2 of Division 21), unless otherwise specified
in this article. 
   79902.  Grades and standards adopted pursuant to this article
shall be implemented by the secretary at the beginning of the
marketing season following the date on which the activity is approved
by the secretary. 
    79903.   79902.   The commission 
board of directors  shall serve as the advisory body to the
secretary on all matters pertaining to this article.