Amended in Assembly June 3, 2013

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, 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 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.

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 production ofbegin delete oilend delete olives for processing into olive
10oil and marketing of the 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 the industry within the state, national, and
17international marketplace.



The maintenance of the industry in California is
19necessary to ensure a continuous supply ofbegin delete oilend delete olives and the
20resulting olive oil and to ensure the needed levels of income are
21maintained for those engaged in the production ofbegin delete oilend delete olives for
22processing into olive oil and the marketing of olive oil.



The production ofbegin delete oilend delete olives for processing into olive
24oil and the marketing of olive oil produced in this state is hereby
P3    1declared to be a public interest. This chapter is enacted in the
2exercise of the police power of this state for the purpose of
3protecting the health, peace, safety, and general welfare of the
4people of this state.



The commission form of administration created by this
6chapter is uniquely situated to provide those engaged in the
7activities specified in this chapter the opportunity to avail
8themselves of the benefits of collective action in the broad fields
9of olive oilbegin delete research,end deletebegin insert research end insert and grades and labeling standards.



No action taken by the commission, or by any individual
11in accordance with this chapter or with rules and regulations
12adopted under this chapter, shall be deemed a violation of the
13Cartwright Act (Chapter 2 (commencing with Section 16700) of
14Part 2 of Division 7 of the Business and Professions Code), the
15Unfair Practices Act (Chapter 4 (commencing with Section 17000)
16of Part 2 of Division 7 of the Business and Professions Code), or
17any rule of statutory or common law against monopolies or
18combinations in restraint of trade.



It is hereby declared as a matter of legislative
20determination that members of the commission are intended to
21represent and further the interest of the particular industry
22concerned and that this representation and furtherance is intended
23to serve the public interest. Accordingly, the Legislature finds that
24with respect to persons who are elected or appointed to the
25commission, the particular industry concerned is tantamount to,
26and constitutes the public generally within the meaning of Section
2787103 of the Government Code.


29Article 2.  Definitions




Unless the context otherwise requires, the definitions
32in this article govern the construction of this chapter.



“Olive oil” means the oil obtained solely from the fruit
34of the olive tree (Olea europea L.) which is produced in California
35for commercial purposes.



begin delete“Oil olives” end deletebegin insert “Olives” end insertmeans fruit of the olive tree
37(Olea europea L.)begin delete grown for the purpose of processingend deletebegin insert that are
38processedend insert
into olive oil.



“Books and records” means books, records, contracts,
40documents, memoranda, papers, correspondence, or other written
P4    1data pertaining to matters relating to the activities subject to this



“Commission” means the Olive Oil Commission of



(a) “Districts” consist of the following:

6(1) District 1 consists of the Counties of Butte, Del Norte, Glenn,
7Humboldt, Lassen, Modoc, Plumas, Shasta, Siskiyou, Tehama,
8and Trinity.

9(2) District 2 consists of the Counties of Amador, Colusa, El
10Dorado, Lake, Marin, Mendocino, Napa, Nevada, Placer,
11Sacramento, Sierra, Solano, Sonoma, Sutter, Yolo, and Yuba.

12(3) District 3 consists of the Counties of Alameda, Calaveras,
13Contra Costa, Fresno, Imperial, Inyo, Kern, Kings, Los Angeles,
14Madera, Mariposa, Merced, Mono, Monterey, Orange, Riverside,
15San Benito, San Bernardino, San Diego, San Francisco, San
16Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara,
17Santa Cruz, Stanislaus, Tulare, Tuolumne, and Ventura.

18(b) The commission board of directors shall periodically
19determine whether the olive oil acreage in any of the districts varies
20by more than 20 percent from the olive oil acreage in other districts
21and draw new district lines in the event a variance exists. This
22action shall be approved by a two-thirds vote of the commission
23board of directors.

24(c) The boundaries of a district may be changed and districts
25may be added or eliminated by a two-thirds vote of the commission
26board of directors, which is concurred in by the secretary, if notice
27is provided to all persons subject to this chapter prior to the action.
28The boundaries need not coincide with county lines.



“Ex officio members” are nonvoting members of the
30commission board of directors.



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



(a) “Handler” means a person who engages, in this
33state, in the operation of marketing olive oil that he or she has
34produced, or purchased or acquired from anbegin delete oilend delete olive producer, or
35that he or she is marketing on behalf of anbegin delete oilend delete olive producer,
36whether as owner, agent, employee, broker, or otherwise.

37(b) When the handler is a corporation or a limited liability
38company, all of the directors, officers, managers, and members of
39the corporation or limited liability company in their capacity as
40individuals shall be included, and any liability for failure to collect
P5    1or make payment of assessments to which a corporate handler or
2a handler that is a limited liability company may be subject
3pursuant to this chapter shall include identical liability upon each
4individual director, officer, manager, or member of the corporation
5or limited liability company.

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



“Market” or “marketing” means to sell olive oil into
8commercial channels of trade.



“Marketing season” or “fiscal year” are synonymous
10terms and mean the period beginning July 1 of any year and
11extending through June 30 of the following year.



“Producer” means any person that produces or causes
13to be producedbegin delete oilend delete olives that are processed into olive oil in the
14amount of 5,000 gallons or more during the marketing season and
15that shall, upon request of the commission, provide proof of
16commodity sale.



“Secretary” means the Secretary of Food and



“Advisory committee” means a committee appointed
20by the secretary from applications received from persons that
21produce or cause to be producedbegin delete oilend delete olives that are processed into
22less than 5,000 gallons of olive oil during the marketing season.


24Article 3.  Olive Oil Commission of California




(a) There is in the state government the Olive Oil
27Commission of California. Except as provided in subdivision (d),
28the commission board of directors shall be composed of the

30(1) Six producers, two from each district.

31(2) Three handlers, one from each district.

32(3) One public member who shall be appointed to the
33commission board of directors by the secretary from nominees
34recommended by the commission board of directors.

35(b) The chair of the advisory committee shall be an ex officio
36member of the commission board of directors.

37(c) The secretary and other appropriate persons as determined
38by the commission board of directors shall be ex officio members.

39(d) The commission board of directors may modify the number
40of producers and handlers who serve on the commission board of
P6    1directors by a two-thirds vote that is concurred in by the secretary,
2if proper notice is provided to all persons subject to this chapter
3prior to the action.

4(e) An advisory committee shall meet periodically to review
5issues affecting the purposes of this chapter and shall advise the
6commission board of directors. The committee shall consist of
7seven members who shall each serve three-year terms. The chair
8of the committee shall be selected by the members.



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

13(b) If the commission refuses or fails to cease those activities
14or functions or to make corrections as required by the secretary,
15the secretary may, upon written notice, suspend all or a portion of
16the activities or functions of the commission until such time as the
17cessation or correction of activities or functions as required by the
18secretary has been accomplished by the commission.

19(c) Actions of the commission in violation of the secretary’s
20written notice shall be without legal force or effect. The secretary,
21to the extent feasible, shall issue the written notice prior to the
22commission entering into any contractual relationship affecting
23the existing or proposed activities or functions that are the subject
24of the written notice.

25(d) Upon service of the written notice, the secretary shall notify
26the commission in writing of the specific acts that he or she
27determines are not in the public interest or are in violation of this
28chapter, and his or her reasons for requiring a cessation or
29correction of specific existing or proposed activities or functions,
30and may make recommendations that will make those activities
31or functions acceptable to the secretary.



The commission or the secretary may bring an action
33for judicial relief from the secretary’s written notice, or from
34noncompliance by the commission with the written notice, in a
35court of competent jurisdiction, which may issue a temporary
36restraining order, permanent injunction, or other applicable relief.



The commission shall reimburse the secretary for all
38expenditures incurred by the secretary in carrying out his or her
39duties and responsibilities under this chapter. However, a court
40may, if it finds that the secretary acted arbitrarily or capriciously
P7    1in restricting the activities or functions of the commission, relieve
2the commission of the responsibility for payment of the secretary’s
3legal costs with regard to that action.



Except for the ex officio members of the commission
5board of directors, each member of the commission board of
6directors shall have an alternate member elected in the same
7manner as the member. An alternate member, in the absence of
8the member for whom he or she is an alternate, shall serve in place
9of the member. An alternate member may also serve in place of
10any other absent member of the same classification, producer or
11handler, if the member’s alternate is also absent. However, an
12alternate member may not serve in place of more than one absent
13member at a meeting. An alternate member serving in place of a
14member shall have and be able to exercise all rights, privileges,
15and powers of the member when serving. In the event of death,
16removal, resignation, or the disqualification of a member, the
17alternate for the member, or another alternate of the same
18classification if the alternate member for the member is absent,
19shall act as the member until a qualified successor is elected.



Any vacancy on the commission board of directors,
21including, but not limited to, the failure of any person elected or
22appointed to the commission board of directors as a member or
23alternate member to continue in his or her position due to a change
24in status making him or her ineligible to serve, or due to death,
25removal, or resignation, shall be filled by the election of another
26person, or appointment in the case of a public member, for the
27unexpired portion of the term, with elected positions to be filled
28by a majority vote of the commission board of directors. However,
29the person elected or appointed shall fulfill all the qualifications
30set forth in this article as required for the office he or she is to
31occupy. The qualifications of any person to fill a vacancy shall be
32certified in writing to the secretary. The secretary shall notify the
33commission if he or she determines that the person is not qualified.



A producer member or his or her alternate on the
35commission board of directors shall be an individual, partner, or
36employee of a producer who has a financial interest in producing,
37or causing to be produced,begin delete oilend delete olives for processing into olive oil.
38The producer member or his or her alternate shall be in compliance
39with this section during the entire term of his or her office.

P8    1


The public member, or his or her alternate on the
2commission board of directors, shall have all the powers, rights,
3and privileges of any other member on the commission board of
4directors. The public member shall not have any financial interest
5in the production or processing ofbegin delete oilend delete olives or the marketing of
6olive oil but may be an individual who provides services to
7individuals who do have a financial interest. The public member
8or his or her alternate shall be in compliance with this section
9during the entire term of his or her office.



(a) Except as provided in paragraphs (1) and (2), the
11term of office of all members of the commission board of directors
12and their alternates, except any ex officio member, shall be three
13years from the date of their election and until their successors are

15(1) Of the first producer members, one from each district shall
16serve two years and one from each district shall serve three years.

17(2) Of the first handler members, one shall serve one year, one
18shall serve two years, and one shall serve three years.

19(b) The determination of the term of each member shall be made
20by lot at the time of election.

21(c) An alternate shall serve the same term as the member for
22whom he or she serves as alternate.



The commission may sue and be sued and enter into
24contracts. Copies of its proceedings, records, and acts, when
25authenticated, shall be admissible in evidence in all courts of the
26state, and shall be prima facie evidence of the truth of all statements
27within the proceedings, records, and acts.



A quorum of the commission board of directors is a
29majority of the members authorized to vote. Except as otherwise
30provided in this chapter, the vote of a majority of these members
31present at a meeting at which there is a quorum shall constitute an
32act of the commission.



The secretary or his or her representatives shall be
34notified and may attend each meeting of the commission board of
35directors and any meetings of a committee established by the
36commission. However, the secretary is not entitled to attend an
37executive session of the commission board of directors called for
38the purpose of discussing potential or actual litigation against the

P9    1


A member of the commission board of directors or of
2any committee established by the commission, which may include
3nonmembers of the commission board of directors, shall not receive
4a salary. Except for ex officio government members, a member
5may receive reasonable and necessary traveling expenses and meal
6allowances, as established by the commission board of directors,
7for each day spent in actual attendance at, or in traveling to and
8from, meetings of the commission or committees of the
9commission, or on special assignment for the commission.



If the secretary is required to concur in a decision of
11the commission, he or she shall indicate his or her response within
1215 working days from notification of the decision. The response
13may be a request that additional information be provided.



All moneys received by any person from assessments
15levied under the authority of this chapter or otherwise received by
16the commission shall be deposited in banks designated by the
17commission board of directors and shall be disbursed by order of
18the commission board of directors through an agent or agents
19designated for that purpose. Any authorized agent or agents shall
20be bonded by a fidelity bond, executed by a surety company
21authorized to transact business in the state, in favor of the
22commission, in the amount of not less than twenty-five thousand
23dollars ($25,000).



The state shall not be liable for the acts of the
25commission or its contracts. Payments of all claims arising by
26reason of the administration of this chapter or acts of the
27commission shall be limited to the funds collected by the
28commission. Members and alternate members of the commission
29board of directors, employees, and agents of the commission shall
30not be personally liable for the contracts of the commission, and
31members and alternate members of the commission board of
32directors, and employees of the commission shall not be responsible
33individually in any way to a producer, handler, or any other person
34for error in judgment, mistakes, or other acts, either of commission
35or omission, as principal, agent, or employee, except for his or her
36own individual acts of dishonesty or crime. Members and alternate
37members of the commission board of directors shall not be held
38responsible individually for any act or omission of any other
39member or alternate member. The liability of the members and
40alternate members of the commission board of directors shall be
P10   1several and not joint, and a member or alternate member shall not
2be liable for the default of any other member or alternate member.


4Article 4.  Powers and Duties




The powers and duties of the commission board of
7directors shall include, but are not limited to, all of the following:

8(a) Adopt and from time to time alter, rescind, modify, and
9amend bylaws, rules, and orders, and recommend regulations in
10accordance with Article 9 for carrying out this chapter, including
11rules for appeals from any bylaw, rule, regulation, order, or
12recommended regulation. These actions shall not be subject to
13Chapter 3.5 (commencing with Section 11340) of Part 1 of Division
143 of Title 2 of the Government Code.

15(b) Administer and enforce this chapter and perform all acts
16and exercise all powers incidental to, or in connection with, or
17determined reasonably necessary for, proper or advisable
18effectuation of the purposes of this chapter.

19(c) Appoint its own officers from the members of the
20commission board of directors, including a chairperson, one or
21more vice chairpersons, and any other officers as it determines
22necessary. The officers shall have the powers and duties delegated
23to them by the commission board of directors.

24(d) Employ a person to serve at the pleasure of the commission
25as president and chief executive officer, and other personnel,
26including legal counsel, necessary to carry out this chapter. The
27commission may retain a management firm or staff from any board,
28commission, or committee of the state to perform the functions
29prescribed by this subdivision under control of the commission
30board of directors. If a person subject to this subdivision engages
31in conduct that the secretary determines to be in violation of this
32chapter, or is not in the public interest, the secretary shall notify
33the commission of the conduct and request that corrective, and if
34 appropriate, disciplinary action, be taken by the commission board
35of directors. If the commission board of directors fails or refuses
36to correct the situation or to take disciplinary action satisfactory
37to the secretary, the secretary may suspend or discharge the person
38subject to this subdivision.

39(e) Fix the compensation for all employees.

P11   1(f) Appoint committees composed of both members and
2nonmembers of the commission board of directors to advise in
3carrying out this chapter.

4(g) Establish offices and incur expenses, invest funds, enter into
5contracts and agreements, and create liabilities and borrow funds
6in advance of receipt of assessments as determined necessary for
7the proper administration and enforcement of this chapter and the
8performance of its duties.

9(h) Keep accurate books, records, and accounts of all of its
10dealings, which shall be subject to an annual audit by an auditing
11firm selected by the commission board of directors with the
12concurrence of the secretary. The audit shall be made a part of an
13annual report to all producers ofbegin delete oilend delete olives and handlers subject to
14this chapter, and, notwithstanding Sections 9795 and 10231.5 of
15the Government Code, copies of the audit shall be submitted to
16the Legislature and the department. In addition, the secretary may,
17as he or she determines necessary, conduct, or cause to be
18conducted, a fiscal and compliance audit of the commission.

19(i) Present facts to, and negotiate with, state, federal, and foreign
20agencies on matters that affect the purposes of this chapter.

21(j) Make, in the name of the commission, contracts to render
22service in formulating and conducting plans and programs, and
23any other contracts or agreements determined to be necessary for
24the purposes specified in this chapter.

25(k) Conduct, and contract with others to conduct, research,
26including the study, analysis, dissemination, and accumulation of
27information obtained from research or elsewhere for purposes
28described in this chapter. In connection with the research, accept
29contributions of, or to match, private, state, or federal funds that
30may be available for these purposes, and to employ or make
31contributions of funds to other persons or state or federal agencies
32conducting the research.

33(l) Collect information and publish and distribute to producers
34a bulletin or other communication for dissemination of information
35relating to this chapter.

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

37(n) Establish an annual budget according to accepted accounting
38practices. The budget shall be concurred in by the secretary prior
39to disbursement of funds, except for disbursements made pursuant
40to subdivision (e).

P12   1(o) Submit to the secretary for his or her concurrence, an annual
2statement of contemplated activities authorized under this chapter.

3(p) Investigate and prosecute civil violations of this chapter and
4file complaints with appropriate law enforcement agencies or
5officers for suspected criminal violations of this chapter.

6(q) Engage in activities and administer any program authorized
7in Article 9 (commencing with Section 79901) of this chapter.

8(r) Prescribe the form and manner by which proponents and
9opponents of the commission may contact producers so long as
10all expenses associated with the contacts are paid in advance.


12Article 5.  Implementation and Voting Procedures




(a) Before February 1, 2014, the secretary shall
15establish a list of producers eligible to vote on the implementation
16of this chapter. In establishing the list, the secretary shall require
17that handlers ofbegin delete oilend delete olives submit the names and mailing addresses
18of producers from whombegin delete oilend delete olives are received, and the volume
19of olive oil resulting from each producer’sbegin delete oilend delete olives that was
20marketed during the preceding marketing season. The request for
21the information shall be in writing. The information shall be filed
22within 10 days following receipt of the written request for

24(b) A producer whose name does not appear on the secretary’s
25list may have his or her name placed on the list by filing with the
26secretary a signed statement identifying himself or herself as a
27producer. Failure to be on the list does not exempt the producer
28from paying assessments under this chapter.



This chapter, except as necessary to conduct an
30implementation referendum vote, shall not become operative until
31the secretary finds at least 40 percent of the total number of
32producers from the list established by the secretary pursuant to
33this article participate, and that either of the following occurs:

34(a) Sixty-five percent of the producers who voted in the
35referendum voted in favor of this chapter, and the producers so
36voting produced a majority of the total quantity ofbegin delete oilend delete olives
37processed into olive oil in the preceding marketing season by all
38of the producers voting in the referendum.

39(b) A majority of the producers who voted in the referendum
40voted in favor of this chapter, and the producers so voting produced
P13   165 percent or more of the total quantity ofbegin delete oilend delete olives processed into
2olive oil in the preceding marketing season by all of the producers
3voting in the referendum.



The secretary shall establish a period in which to
5conduct the referendum which shall not be less than 10 days or
6more than 60 days in duration and may prescribe additional
7procedures necessary to conduct the referendum. If the initial
8period established is less than 60 days, the secretary may extend
9the period. However, the total referendum period may not exceed
1060 days.



Nonreceipt of a ballot shall not invalidate a referendum.



If the secretary finds that a favorable vote has been
13given as provided in this article, he or she shall certify the vote
14and give notice of the vote to producers whose names and addresses
15are on file with the secretary.



If the secretary finds that a favorable vote has not been
17given as provided in this article, he or she shall certify the vote
18and declare this chapter inoperative. The secretary may conduct
19another implementation referendum vote one or more years after
20the previous vote has been taken.



(a) Upon certification of the commission, the secretary
22shall contact producers and handlers in a manner determined by
23the secretary for the purpose of nominating and electing persons
24to the commission board of directors.

25(b) Subsequent to the first election of members of the
26commission board of directors, or appointment in cases of a public
27 member, producers and handlers shall be selected pursuant to
28nomination and election procedures established by the commission
29board of directors with the concurrence of the secretary.



Prior to the referendum vote conducted by the secretary
31pursuant to this article, the proponents of the commission shall
32deposit with the secretary an amount of funds determined necessary
33by the secretary to defray the expenses of preparing the necessary
34lists and information and conducting the vote. Any funds not used
35for this purpose shall be returned to the proponents of the
36commission who deposited the funds with the secretary. Upon
37establishment of the commission, the commission board of
38directors may reimburse the proponents of the commission for any
39funds deposited with the secretary and for any legal expenses and
40costs incurred in establishing the commission.


P14   1Article 6.  Assessments and Records




(a) The commission board of directors shall, no later
4than the beginning of each marketing season, or as soon thereafter
5as possible, establish the assessment to be paid by producers and
6collected by handlers for the marketing season. The assessment
7shall not be more than twenty-five cents ($0.25) per gallon for all
8olive oil handled as specified in this chapter and shall not exceed
9the reasonable costs of implementing this chapter.

10(b) An assessment greater than the amounts in this section shall
11not be charged unless it is approved in accordance with the voting
12requirements provided in Section 79862. If a handler purchases
13begin delete oilend delete olives and processes thebegin delete oilend delete olives into olive oil, the handler
14shall pay an equivalent assessment for thebegin delete oilend delete olives processed.



This chapter does not apply to a producer’sbegin delete oilend delete olives
16processed into olive oil for his or her home use.



(a) Handlers of olive oil shall keep a complete and
18accurate record of allbegin delete oilend delete olives purchased by them and olive oil
19handled by them with the name of the producer or producers whose
20begin delete oilend delete olives were purchased or handled.

21(b) A producer who handles olive oil made from his or her begin deleteoilend delete
22 olives shall keep a complete and accurate record of the olive oil

24(c) The records described in subdivisions (a) and (b) shall
25contain information required by the commission. The records shall
26be preserved by the producer or handler for a period of two years
27and shall be offered and submitted for inspection at any reasonable
28time upon written demand by the commission or its duly authorized



(a) All proprietary information obtained by the
31commission or the secretary from any source, including the names
32and addresses of producers, shall be confidential and shall not be
33disclosed except if required by court order in a judicial proceeding.

34(b) Information on volume shipments and any other related
35information that is required for reports to governmental agencies,
36financial reports to the commission on aggregate sales and
37inventory information, and any other information that gives only
38totals, but excludes individual information, may be disclosed by
39the commission.

P15   1


The first handler of olive oil being assessed shall deduct
2the assessment from amounts paid by him or her to the producer,
3and shall be a trustee of the funds until they are paid to the
4commission at the time and in the manner prescribed by the
5commission board of directors. A producer who handles olive oil
6made from his or herbegin delete oilend delete olives shall pay an assessment directly to
7the commission at the time and in the manner prescribed by the
8commission board of directors.



Every handler shall be personally liable for the payment
10of the assessments collected from producers, and failure to collect
11the assessment from any producer shall not exempt the handler
12from liability.



An assessment that is levied as provided in this chapter
14is a personal debt of the producer assessed.



(a) A person who fails to file a return or pay an
16assessment within the time required by the commission shall pay
17to the commission a penalty of 10 percent of the amount of the
18assessment determined to be past due and, in addition, interest on
19the unpaid balance at the rate of 1.5 percent per month.

20(b) In addition to any other penalty imposed, the commission
21may require a person who fails to pay an assessment or related
22charge pursuant to this article to furnish and maintain a surety
23bond in a form and amount and for a period of time specified by
24the commission board of directors as assurance that all payments
25to the commission will be made when due.


27Article 7.  Actions and Penalties




A civil penalty not exceeding one thousand dollars
30($1,000) may be levied by the commission upon a person who
31does any of the following:

32(a) Willfully render or furnish a false report, statement, or record
33required by the commission, or in any way to affect the shipment
34and marketing of olive oil in order to avoid payment of assessments
35on the product’s highest value.

36(b) Fail to render or furnish a report, statement, or record
37required by the commission.

38(c) When engaged in the producing ofbegin delete oilend delete olives for processing
39into olive oil or handling of olive oil, fail or refuse to furnish to
40the commission or its duly authorized agents, upon request,
P16   1information concerning the name and address of the persons from
2whom he or she has received olive oil and the quantity so received.

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



For purposes of according individuals aggrieved by its
6actions or determinations, the commission board of directors shall
7establish procedures for an informal hearing before the commission
8or before a committee of the commission established for this
9purpose. Appeals from the decision of the commission board of
10directors may be made to the secretary. The determination of the
11secretary shall be subject to judicial review upon petition filed
12with the appropriate superior court.



(a) The commission may commence civil actions and
14utilize all remedies provided in law or equity for the collection of
15assessments and civil penalties, and for obtaining injunctive relief
16or specific performance, relating to this chapter and the rules and
17regulations adopted under this chapter. A court shall issue to the
18commission any requested writ of attachment or injunctive relief
19upon a prima facie showing by verified complaint that a named
20defendant has violated this chapter or any other rule or regulation
21of the commission, including, but not limited to, the nonpayment
22of assessments. No bond shall be required to be posted by the
23commission as a condition for the issuance of any writ of
24attachment or injunctive relief.

25(b) A writ of attachment shall be issued pursuant to Chapter 5
26(commencing with Section 485.010) of Title 6.5 of Part 2 of the
27Code of Civil Procedure, except that the showing specified in
28Section 485.010 is not required. Injunctive relief shall be issued
29pursuant to Chapter 3 (commencing with Section 525) of Title 7
30of Part 2 of the Code of Civil Procedure, except that the showing
31of irreparable harm or of inadequate remedy at law specified by
32Section 526 or 527 is not required.

33(c) Upon entry of any final judgment on behalf of the
34commission against any defendant, the court shall enjoin the
35defendant from conducting any type of business regarding the
36production ofbegin delete oilend delete olives or handling of olive oil until there is full
37compliance with, and satisfaction of, the judgment.

38(d) Upon a favorable judgment for the commission, the court
39may order that the commission be reimbursed for reasonable
40attorney’s fees and other related costs actually incurred. Venue
P17   1for these actions is at the domicile or place of business of the
2defendant or in the county of the principal office of the
3commission. The commission may be sued only in the county of
4its principal office.



Any action by the commission for any penalty or other
6remedy that is prescribed under this chapter shall be commenced
7within two years from the date of discovery of the alleged violation.
8Any action against the commission by any person shall be
9commenced within two years from the date of the alleged violation.



The commission shall not be required to allege or prove
11that an adequate remedy at law does not exist in any action brought
12under this chapter.



This chapter shall be liberally construed. If any section,
14clause, or part of this chapter is for any reason held unconstitutional
15or invalid as applied to any person or as applied under certain
16circumstances, that decision shall not affect the remaining portions
17of this chapter or the application of this chapter to any other persons
18or under any other circumstance.



The termination of this chapter shall not affect or waive
20any right, duty, obligation, or liability that has arisen or that may
21thereafter arise in connection with this chapter, release or
22extinguish any violation of this chapter, or affect or impair any
23right or remedies of the commission with respect to any violation.


25Article 8.  Continuation or Suspension and Termination




(a) Five years after implementation of this chapter, the
28secretary shall hold a public hearing, after providing proper notice
29to persons subject to this chapter and any other persons or entities
30who have requested, in writing, notice of the hearing, to determine
31whether the operation of this chapter should be continued. If the
32secretary finds after the hearing that a substantial question exists
33among the producers assessed under this chapter regarding whether
34the operation of this chapter should be continued, the secretary
35shall submit the chapter to a reapproval referendum to be conducted
36among producers to determine whether the operation of this chapter
37shall be reapproved and continued in effect.

38(b) If the secretary finds after conducting a hearing that no
39substantial question exists or, if a reapproval referendum is
40required, that a majority of the eligible producers voting in the
P18   1referendum voted in favor of continuing the operation of this
2chapter, the secretary shall certify the vote and this chapter shall
3remain operative. If the secretary finds that a favorable vote has
4not been given, he or she shall certify the vote and declare the
5operation of this chapter suspended upon the expiration of the
6current marketing season. Thereupon, the operations of the
7commission shall be concluded and funds distributed in the manner
8provided in Section 79894. A bond or security shall not be required
9for the referendum.



Following a hearing, and favorable referendum if
11required, the process specified in Section 79891 shall be conducted
12by the secretary every five years thereafter between July 1 and
13June 30 of the following year, unless a referendum is conducted
14as the result of a petition pursuant to Section 79893. In that case,
15the hearing, and referendum if required, shall be conducted every
16five years following the industry petitioned referendum.



(a) Upon a finding by a two-thirds vote of the
18commission board of directors that the operation of this chapter
19has not tended to effectuate its declared purposes, the commission
20may recommend to the secretary that the commission be suspended.
21Any suspension shall not become effective until expiration of the
22current marketing season.

23(b) (1) The secretary shall, upon receipt of a recommendation,
24or may, after a public hearing to review a petition described in
25paragraph (2) requesting the suspension, cause a referendum to be
26conducted among the listed producers to determine if the operations
27of the commission shall be suspended. The secretary shall not hold
28a referendum as a result of a petition described in paragraph (2)
29unless the petitioner shows by the weight of evidence that the
30implementation of this chapter has not effectuated its declared

32(2) A petition filed requesting suspension of the commission
33shall be signed by at least 15 percent of the producers, by number,
34who also produce at least 15 percent of the total volume of begin deleteoilend delete
35 olives marketed in the preceding marketing season.

36(c) The secretary shall establish a referendum period, which
37shall not be less than 10 days or more than 60 days in duration.
38The secretary may prescribe additional procedures necessary to
39conduct the referendum. At the close of the established referendum
40period, the secretary shall tabulate the ballots filed during the
P19   1period. The secretary shall suspend the operation of this chapter,
2if the secretary finds at least 40 percent of the total number of
3producers from the list established by the secretary participate,
4and that either of the following occurs:

5(1) Sixty-five percent of the producers that voted in the
6referendum voted in favor of suspension, and the producers so
7voting produced a majority of the total quantity ofbegin delete oilend delete olives
8processed into olive oil in the preceding marketing season by all
9of the producers voting in the referendum.

10(2) A majority of the producers that voted in the referendum
11voted in favor of suspension, and the producers so voting produced
1265 percent or more of the total quantity ofbegin delete oilend delete olives processed into
13olive oil in the preceding marketing season by all of the producers
14voting in the referendum.



After the effective date of suspension of this chapter,
16the operations of the commission shall be concluded and all moneys
17held by the commission, and moneys collected by assessment and
18not required to defray the expenses of concluding and terminating
19operations of the commission, shall be returned upon a pro rata
20basis to all persons from whom assessments were collected in the
21immediately preceding marketing season. However, if the
22commission board of directors finds that the amounts returnable
23are so small as to make impractical the computation and remitting
24of the pro rata refund to those persons, any moneys remaining after
25payment of all expenses of winding up and terminating operations
26shall be withdrawn from the approved depository and paid into an
27appropriate state or federal program or used to fund activities
28related to the subject matter of this chapter.



Upon suspension of the operation of this chapter, the
30commission shall mail a copy of the notice of suspension to
31producers affected by the suspension whose names and addresses
32are on file.


34Article 9.  Quality Standards




The commission board of directors may recommend
37to the secretary the adoption and amendment of olive oil grades
38and labeling standards, in accordance with the California Marketing
39Act of 1937 (Chapter 1 (commencing with Section 58601) of Part
402 of Division 21), unless otherwise specified in this article.

P20   1


The commission board of directors shall serve as the
2advisory body to the secretary on all matters pertaining to this