Amended in Assembly June 3, 2013

Amended in Senate May 14, 2013

Amended in Senate April 10, 2013

Senate Bill No. 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.

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, 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:

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 begin delete oil end delete 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 industry within the state, national, and
international marketplace.

79802.  

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

79803.  

The production of begin delete oil end delete 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
activities specified in this chapter the opportunity to avail
themselves of the benefits of collective action in the broad fields
of olive oil begin delete research, end delete begin insert research end insert 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.  

begin delete “Oil olives” end delete begin insert “Olives” end insert means fruit of the olive tree
(Olea europea L.) begin delete grown for the purpose of processing end delete begin insert that are
processed end insert 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 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 other districts
and draw new district lines in the event 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 marketing olive oil that he or she has
produced, or purchased or acquired from an begin delete oil end delete olive producer, or
that he or she is marketing on behalf of an begin delete oil end delete 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 olive oil into
commercial channels 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 begin delete oil end delete olives that are processed into olive oil in 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 persons that
produce or cause to be produced begin delete oil end delete 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 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 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, begin delete oil end delete 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 begin delete oil end delete olives or the marketing of
olive oil 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, 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 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 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, and orders, and recommend regulations in
accordance with Article 9 for carrying out this chapter, including
rules for appeals from any bylaw, rule, regulation, 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 begin delete oil end delete 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 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 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
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) 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 handlers of begin delete oil end delete olives submit the names and mailing addresses
of producers from whom begin delete oil end delete olives are received, and the volume
of olive oil resulting from each producer’s begin delete oil end delete 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 whose name does not appear 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 begin delete oil end delete olives
processed into olive oil 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 begin delete oil end delete olives processed into
olive oil 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 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 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 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 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
begin delete oil end delete olives and processes the begin delete oil end delete olives into olive oil, the handler
shall pay an equivalent assessment for the begin delete oil end delete olives processed.

79872.  

This chapter does not apply to a producer’s begin delete oil end delete olives
processed into olive oil for his or her home use.

79873.  

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

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

(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 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 begin delete oil end delete 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 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 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 begin delete oil end delete olives for processing
into olive oil or handling of olive oil, 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 begin delete oil end delete 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 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 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 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. The secretary shall not hold
a referendum as a result of 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 begin delete oil end delete
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 begin delete oil end delete olives
processed into olive oil 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 begin delete oil end delete olives processed into
olive oil 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
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, 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.  

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