Amended in Assembly August 5, 2013

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.

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 ofbegin delete implementingend deletebegin insert achieving the purposes ofend insert 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

SECTION 1.  

Chapter 29 (commencing with Section 79800)
2is added to Part 2 of Division 22 of the Food and Agricultural
3Code
, to read:

4 

5Chapter  29. Olive Oil Commission of California
6

6 

7Article 1.  Declarations and General Provisions
8

 

9

79800.  

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

13

79801.  

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.

18

79802.  

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

P3    1

79803.  

The production of olives for processing into olive oil
2and the marketing of olive oil produced in this state is hereby
3declared to be a public interest. This chapter is enacted in the
4exercise of the police power of this state for the purpose of
5protecting the health, peace, safety, and general welfare of the
6people of this state.

7

79804.  

The commission form of administration created by this
8chapter is uniquely situated to provide those engaged in the
9activities specified in this chapter the opportunity to avail
10themselves of the benefits of collective action in the broad fields
11of olive oil research and grades and labeling standards.

12

79805.  

No action taken by the commission, or by any individual
13in accordance with this chapter or with rules and regulations
14adopted under this chapter, shall be deemed a violation of the
15Cartwright Act (Chapter 2 (commencing with Section 16700) of
16Part 2 of Division 7 of the Business and Professions Code), the
17Unfair Practices Act (Chapter 4 (commencing with Section 17000)
18of Part 2 of Division 7 of the Business and Professions Code), or
19any rule of statutory or common law against monopolies or
20combinations in restraint of trade.

21

79806.  

It is hereby declared as a matter of legislative
22determination that members of the commission are intended to
23represent and further the interest of the particular industry
24concerned and that this representation and furtherance is intended
25to serve the public interest. Accordingly, the Legislature finds that
26with respect to persons who are elected or appointed to the
27commission, the particular industry concerned is tantamount to,
28and constitutes the public generally within the meaning of Section
2987103 of the Government Code.

30 

31Article 2.  Definitions
32

 

33

79811.  

Unless the context otherwise requires, the definitions
34in this article govern the construction of this chapter.

35

79812.  

“Olive oil” means the oil obtained solely from the fruit
36of the olive tree (Olea europea L.) which is produced in California
37for commercial purposes.

38

79812.5.  

“Olives” means fruit of the olive tree (Olea europea
39L.) that are processed into olive oil.

P4    1

79813.  

“Books and records” means books, records, contracts,
2documents, memoranda, papers, correspondence, or other written
3data pertaining to matters relating to the activities subject to this
4chapter.

5

79814.  

“Commission” means the Olive Oil Commission of
6California.

7

79815.  

(a) “Districts” consist of the following:

8(1) District 1 consists of the Counties of Butte, Del Norte, Glenn,
9Humboldt, Lassen, Modoc, Plumas, Shasta, Siskiyou, Tehama,
10and Trinity.

11(2) District 2 consists of the Counties of Amador, Colusa, El
12Dorado, Lake, Marin, Mendocino, Napa, Nevada, Placer,
13Sacramento, Sierra, Solano, Sonoma, Sutter, Yolo, and Yuba.

14(3) District 3 consists of the Counties of Alameda, Calaveras,
15Contra Costa, Fresno, Imperial, Inyo, Kern, Kings, Los Angeles,
16Madera, Mariposa, Merced, Mono, Monterey, Orange, Riverside,
17San Benito, San Bernardino, San Diego, San Francisco, San
18Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara,
19Santa Cruz, Stanislaus, Tulare, Tuolumne, and Ventura.

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

26(c) The boundaries of a district may be changed and districts
27may be added or eliminated by a two-thirds vote of the commission
28board of directors, which is concurred in by the secretary, if notice
29is provided to all persons subject to this chapter prior to the action.
30The boundaries need not coincide with county lines.

31

79816.  

“Ex officio members” are nonvoting members of the
32commission board of directors.

33

79817.  

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

34

79818.  

(a) “Handler” means a person who engages, in this
35state, in the operation of marketing olive oil that he or she has
36produced, or purchased or acquired from an olive producer, or that
37he or she is marketing on behalf of an olive producer, whether as
38owner, agent, employee, broker, or otherwise.

39(b) When the handler is a corporation or a limited liability
40company, all of the directors, officers, managers, and members of
P5    1the corporation or limited liability company in their capacity as
2individuals shall be included, and any liability for failure to collect
3or make payment of assessments to which a corporate handler or
4a handler that is a limited liability company may be subject
5pursuant to this chapter shall include identical liability upon each
6individual director, officer, manager, or member of the corporation
7or limited liability company.

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

9

79819.  

“Market” or “marketing” means to sell olive oil into
10commercial channels of trade.

11

79820.  

“Marketing season” or “fiscal year” are synonymous
12terms and mean the period beginning July 1 of any year and
13extending through June 30 of the following year.

14

79821.  

“Producer” means any person that produces or causes
15to be produced olives that are processed into olive oil in the amount
16of 5,000 gallons or more during the marketing season and that
17shall, upon request of the commission, provide proof of commodity
18sale.

19

79822.  

“Secretary” means the Secretary of Food and
20Agriculture.

21

79823.  

“Advisory committee” means a committee appointed
22by the secretary from applications received from persons that
23produce or cause to be produced olives that are processed into less
24than 5,000 gallons of olive oil during the marketing season.

25 

26Article 3.  Olive Oil Commission of California
27

 

28

79831.  

(a) There is in the state government the Olive Oil
29Commission of California. Except as provided in subdivision (d),
30the commission board of directors shall be composed of the
31following:

32(1) Six producers, two from each district.

33(2) Three handlers, one from each district.

34(3) One public member who shall be appointed to the
35commission board of directors by the secretary from nominees
36recommended by the commission board of directors.

37(b) The chair of the advisory committee shall be an ex officio
38member of the commission board of directors.

39(c) The secretary and other appropriate persons as determined
40by the commission board of directors shall be ex officio members.

P6    1(d) The commission board of directors may modify the number
2of producers and handlers who serve on the commission board of
3directors by a two-thirds vote that is concurred in by the secretary,
4if proper notice is provided to all persons subject to this chapter
5prior to the action.

6(e) An advisory committee shall meet periodically to review
7issues affecting the purposes of this chapter and shall advise the
8commission board of directors. The committee shall consist of
9seven members who shall each serve three-year terms. The chair
10of the committee shall be selected by the members.

11

79832.  

(a) The secretary may require the commission to correct
12or cease any existing activity or function that is determined by the
13secretary not to be in the public interest or in violation of this
14chapter.

15(b) If the commission refuses or fails to cease those activities
16or functions or to make corrections as required by the secretary,
17the secretary may, upon written notice, suspend all or a portion of
18the activities or functions of the commission until such time as the
19cessation or correction of activities or functions as required by the
20secretary has been accomplished by the commission.

21(c) Actions of the commission in violation of the secretary’s
22written notice shall be without legal force or effect. The secretary,
23to the extent feasible, shall issue the written notice prior to the
24commission entering into any contractual relationship affecting
25the existing or proposed activities or functions that are the subject
26of the written notice.

27(d) Upon service of the written notice, the secretary shall notify
28the commission in writing of the specific acts that he or she
29determines are not in the public interest or are in violation of this
30chapter, and his or her reasons for requiring a cessation or
31correction of specific existing or proposed activities or functions,
32and may make recommendations that will make those activities
33or functions acceptable to the secretary.

34

79833.  

The commission or the secretary may bring an action
35for judicial relief from the secretary’s written notice, or from
36noncompliance by the commission with the written notice, in a
37court of competent jurisdiction, which may issue a temporary
38restraining order, permanent injunction, or other applicable relief.

39

79834.  

The commission shall reimburse the secretary for all
40expenditures incurred by the secretary in carrying out his or her
P7    1duties and responsibilities under this chapter. However, a court
2may, if it finds that the secretary acted arbitrarily or capriciously
3in restricting the activities or functions of the commission, relieve
4the commission of the responsibility for payment of the secretary’s
5legal costs with regard to that action.

6

79835.  

Except for the ex officio members of the commission
7board of directors, each member of the commission board of
8directors shall have an alternate member elected in the same
9manner as the member. An alternate member, in the absence of
10the member for whom he or she is an alternate, shall serve in place
11of the member. An alternate member may also serve in place of
12any other absent member of the same classification, producer or
13handler, if the member’s alternate is also absent. However, an
14alternate member may not serve in place of more than one absent
15member at a meeting. An alternate member serving in place of a
16member shall have and be able to exercise all rights, privileges,
17and powers of the member when serving. In the event of death,
18removal, resignation, or the disqualification of a member, the
19alternate for the member, or another alternate of the same
20classification if the alternate member for the member is absent,
21shall act as the member until a qualified successor is elected.

22

79836.  

Any vacancy on the commission board of directors,
23including, but not limited to, the failure of any person elected or
24appointed to the commission board of directors as a member or
25alternate member to continue in his or her position due to a change
26in status making him or her ineligible to serve, or due to death,
27removal, or resignation, shall be filled by the election of another
28person, or appointment in the case of a public member, for the
29unexpired portion of the term, with elected positions to be filled
30by a majority vote of the commission board of directors. However,
31the person elected or appointed shall fulfill all the qualifications
32set forth in this article as required for the office he or she is to
33occupy. The qualifications of any person to fill a vacancy shall be
34certified in writing to the secretary. The secretary shall notify the
35commission if he or she determines that the person is not qualified.

36

79837.  

A producer member or his or her alternate on the
37commission board of directors shall be an individual, partner, or
38employee of a producer who has a financial interest in producing,
39or causing to be produced, olives for processing into olive oil. The
P8    1producer member or his or her alternate shall be in compliance
2with this section during the entire term of his or her office.

3

79838.  

The public member, or his or her alternate on the
4commission board of directors, shall have all the powers, rights,
5and privileges of any other member on the commission board of
6directors. The public member shall not have any financial interest
7in the production or processing of olives or the marketing of olive
8oil but may be an individual who provides services to individuals
9who do have a financial interest. The public member or his or her
10alternate shall be in compliance with this section during the entire
11term of his or her office.

12

79839.  

(a) Except as provided in paragraphs (1) and (2), the
13term of office of all members of the commission board of directors
14and their alternates, except any ex officio member, shall be three
15years from the date of their election and until their successors are
16elected.

17(1) Of the first producer members, one from each district shall
18serve two years and one from each district shall serve three years.

19(2) Of the first handler members, one shall serve one year, one
20shall serve two years, and one shall serve three years.

21(b) The determination of the term of each member shall be made
22by lot at the time of election.

23(c) An alternate shall serve the same term as the member for
24whom he or she serves as alternate.

25

79840.  

The commission may sue and be sued and enter into
26contracts. Copies of its proceedings, records, and acts, when
27authenticated, shall be admissible in evidence in all courts of the
28state, and shall be prima facie evidence of the truth of all statements
29within the proceedings, records, and acts.

30

79841.  

A quorum of the commission board of directors is a
31majority of the members authorized to vote. Except as otherwise
32provided in this chapter, the vote of a majority of these members
33present at a meeting at which there is a quorum shall constitute an
34act of the commission.

35

79842.  

The secretary or his or her representatives shall be
36notified and may attend each meeting of the commission board of
37directors and any meetings of a committee established by the
38commission. However, the secretary is not entitled to attend an
39executive session of the commission board of directors called for
P9    1the purpose of discussing potential or actual litigation against the
2department.

3

79843.  

A member of the commission board of directors or of
4any committee established by the commission, which may include
5nonmembers of the commission board of directors, shall not receive
6a salary. Except for ex officio government members, a member
7may receive reasonable and necessary traveling expenses and meal
8allowances, as established by the commission board of directors,
9for each day spent in actual attendance at, or in traveling to and
10from, meetings of the commission or committees of the
11commission, or on special assignment for the commission.

12

79844.  

If the secretary is required to concur in a decision of
13the commission, he or she shall indicate his or her response within
1415 working days from notification of the decision. The response
15may be a request that additional information be provided.

16

79845.  

All moneys received by any person from assessments
17levied under the authority of this chapter or otherwise received by
18the commission shall be deposited in banks designated by the
19commission board of directors and shall be disbursed by order of
20the commission board of directors through an agent or agents
21designated for that purpose. Any authorized agent or agents shall
22be bonded by a fidelity bond, executed by a surety company
23authorized to transact business in the state, in favor of the
24commission, in the amount of not less than twenty-five thousand
25dollars ($25,000).

26

79846.  

The state shall not be liable for the acts of the
27commission or its contracts. Payments of all claims arising by
28reason of the administration of this chapter or acts of the
29commission shall be limited to the funds collected by the
30commission. Members and alternate members of the commission
31board of directors, employees, and agents of the commission shall
32not be personally liable for the contracts of the commission, and
33members and alternate members of the commission board of
34directors, and employees of the commission shall not be responsible
35individually in any way to a producer, handler, or any other person
36for error in judgment, mistakes, or other acts, either of commission
37or omission, as principal, agent, or employee, except for his or her
38own individual acts of dishonesty or crime. Members and alternate
39members of the commission board of directors shall not be held
40responsible individually for any act or omission of any other
P10   1member or alternate member. The liability of the members and
2alternate members of the commission board of directors shall be
3several and not joint, and a member or alternate member shall not
4be liable for the default of any other member or alternate member.

5 

6Article 4.  Powers and Duties
7

 

8

79851.  

The powers and duties of the commission board of
9directors shall include, but are not limited to, all of the following:

10(a) Adopt and from time to time alter, rescind, modify, and
11amend bylaws, rules, and orders, and recommend regulations in
12accordance with Article 9 for carrying out this chapter, including
13rules for appeals from any bylaw, rule, regulation, order, or
14recommended regulation. These actions shall not be subject to
15Chapter 3.5 (commencing with Section 11340) of Part 1 of Division
163 of Title 2 of the Government Code.

17(b) Administer and enforce this chapter and perform all acts
18and exercise all powers incidental to, or in connection with, or
19determined reasonably necessary for, proper or advisable
20effectuation of the purposes of this chapter.

21(c) Appoint its own officers from the members of the
22commission board of directors, including a chairperson, one or
23more vice chairpersons, and any other officers as it determines
24necessary. The officers shall have the powers and duties delegated
25to them by the commission board of directors.

26(d) Employ a person to serve at the pleasure of the commission
27as president and chief executive officer, and other personnel,
28including legal counsel, necessary to carry out this chapter. The
29commission may retain a management firm or staff from any board,
30commission, or committee of the state to perform the functions
31prescribed by this subdivision under control of the commission
32board of directors. If a person subject to this subdivision engages
33in conduct that the secretary determines to be in violation of this
34chapter, or is not in the public interest, the secretary shall notify
35the commission of the conduct and request that corrective, and if
36 appropriate, disciplinary action, be taken by the commission board
37of directors. If the commission board of directors fails or refuses
38to correct the situation or to take disciplinary action satisfactory
39to the secretary, the secretary may suspend or discharge the person
40subject to this subdivision.

P11   1(e) Fix the compensation for all employees.

2(f) Appoint committees composed of both members and
3nonmembers of the commission board of directors to advise in
4carrying out this chapter.

5(g) Establish offices and incur expenses, invest funds, enter into
6contracts and agreements, and create liabilities and borrow funds
7in advance of receipt of assessments as determined necessary for
8the proper administration and enforcement of this chapter and the
9performance of its duties.

10(h) Keep accurate books, records, and accounts of all of its
11dealings, which shall be subject to an annual audit by an auditing
12firm selected by the commission board of directors with the
13concurrence of the secretary. The audit shall be made a part of an
14annual report to all producers of olives and handlers subject to this
15chapter, and, notwithstanding Sections 9795 and 10231.5 of the
16Government Code, copies of the audit shall be submitted to the
17Legislature and the department. In addition, the secretary may, as
18he or she determines necessary, conduct, or cause to be conducted,
19a fiscal and compliance audit of the commission.

20(i) Present facts to, and negotiate with, state, federal, and foreign
21agencies on matters that affect the purposes of this chapter.

22(j) Make, in the name of the commission, contracts to render
23service in formulating and conducting plans and programs, and
24any other contracts or agreements determined to be necessary for
25the purposes specified in this chapter.

26(k) Conduct, and contract with others to conduct, research,
27including the study, analysis, dissemination, and accumulation of
28information obtained from research or elsewhere for purposes
29described in this chapter. In connection with the research, accept
30contributions of, or to match, private, state, or federal funds that
31may be available for these purposes, and to employ or make
32contributions of funds to other persons or state or federal agencies
33conducting the research.

34(l) Collect information and publish and distribute to producers
35a bulletin or other communication for dissemination of information
36relating to this chapter.

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

38(n) Establish an annual budget according to accepted accounting
39practices. The budget shall be concurred in by the secretary prior
P12   1to disbursement of funds, except for disbursements made pursuant
2to subdivision (e).

3(o) Submit to the secretary for his or her concurrence, an annual
4statement of contemplated activities authorized under this chapter.

5(p) Investigate and prosecute civil violations of this chapter and
6file complaints with appropriate law enforcement agencies or
7officers for suspected criminal violations of this chapter.

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

10(r) Prescribe the form and manner by which proponents and
11opponents of the commission may contact producers so long as
12all expenses associated with the contacts are paid in advance.

13 

14Article 5.  Implementation and Voting Procedures
15

 

16

79861.  

(a) Before February 1, 2014, the secretary shall
17establish a list of producers eligible to vote on the implementation
18of this chapter. In establishing the list, the secretary shall require
19that handlers of olives submit the names and mailing addresses of
20producers from whom olives are received, and the volume of olive
21oil resulting from each producer’s olives that was marketed during
22the preceding marketing season. The request for the information
23shall be in writing. The information shall be filed within 10 days
24following receipt of the written request for information.

25(b) A producer whose name does not appear on the secretary’s
26list may have his or her name placed on the list by filing with the
27secretary a signed statement identifying himself or herself as a
28producer. Failure to be on the list does not exempt the producer
29from paying assessments under this chapter.

30

79862.  

This chapter, except as necessary to conduct an
31implementation referendum vote, shall not become operative until
32the secretary finds at least 40 percent of the total number of
33producers from the list established by the secretary pursuant to
34this article participate, and that either of the following occurs:

35(a) Sixty-five percent of the producers who voted in the
36referendum voted in favor of this chapter, and the producers so
37voting produced a majority of the total quantity of olives processed
38into olive oil in the preceding marketing season by all of the
39producers voting in the referendum.

P13   1(b) A majority of the producers who voted in the referendum
2voted in favor of this chapter, and the producers so voting produced
365 percent or more of the total quantity of olives processed into
4olive oil in the preceding marketing season by all of the producers
5voting in the referendum.

6

79863.  

The secretary shall establish a period in which to
7conduct the referendum which shall not be less than 10 days or
8more than 60 days in duration and may prescribe additional
9procedures necessary to conduct the referendum. If the initial
10period established is less than 60 days, the secretary may extend
11the period. However, the total referendum period may not exceed
1260 days.

13

79864.  

Nonreceipt of a ballot shall not invalidate a referendum.

14

79865.  

If the secretary finds that a favorable vote has been
15given as provided in this article, he or she shall certify the vote
16and give notice of the vote to producers whose names and addresses
17are on file with the secretary.

18

79866.  

If the secretary finds that a favorable vote has not been
19given as provided in this article, he or she shall certify the vote
20and declare this chapter inoperative. The secretary may conduct
21another implementation referendum vote one or more years after
22the previous vote has been taken.

23

79867.  

(a) Upon certification of the commission, the secretary
24shall contact producers and handlers in a manner determined by
25the secretary for the purpose of nominating and electing persons
26to the commission board of directors.

27(b) Subsequent to the first election of members of the
28commission board of directors, or appointment in cases of a public
29 member, producers and handlers shall be selected pursuant to
30nomination and election procedures established by the commission
31board of directors with the concurrence of the secretary.

32

79868.  

Prior to the referendum vote conducted by the secretary
33pursuant to this article, the proponents of the commission shall
34deposit with the secretary an amount of funds determined necessary
35by the secretary to defray the expenses of preparing the necessary
36lists and information and conducting the vote. Any funds not used
37for this purpose shall be returned to the proponents of the
38commission who deposited the funds with the secretary. Upon
39establishment of the commission, the commission board of
40directors may reimburse the proponents of the commission for any
P14   1funds deposited with the secretary and for any legal expenses and
2costs incurred in establishing the commission.

3 

4Article 6.  Assessments and Records
5

 

6

79871.  

(a) The commission board of directors shall, no later
7than the beginning of each marketing season, or as soon thereafter
8as possible, establish the assessment to be paid by producers and
9collected by handlers for the marketing season. The assessment
10shall not be more than twenty-five cents ($0.25) per gallon for all
11olive oil handled as specified in this chapter and shall not exceed
12the reasonable costs ofbegin delete implementingend deletebegin insert achieving the purposes ofend insert
13 this chapter.

14(b) An assessment greater than the amounts in this section shall
15not be charged unless it is approved in accordance with the voting
16requirements provided in Section 79862. begin delete If a handler purchases
17 olives and processes the olives into olive oil, the handler shall pay
18an equivalent assessment for the olives processed.end delete

19

79872.  

This chapter does not apply to a producer’s olives
20processed into olive oil for his or her home use.

21

79873.  

(a) Handlers of olive oil shall keep a complete and
22accurate record of all olives purchased by them and olive oil
23handled by them with the name of the producer or producers whose
24olives were purchased or handled.

25(b) A producer who handles olive oil made from his or her olives
26shall keep a complete and accurate record of the olive oil handled.

27(c) The records described in subdivisions (a) and (b) shall
28contain information required by the commission. The records shall
29be preserved by the producer or handler for a period of two years
30and shall be offered and submitted for inspection at any reasonable
31time upon written demand by the commission or its duly authorized
32agent.

33

79874.  

(a) All proprietary information obtained by the
34commission or the secretary from any source, including the names
35and addresses of producers, shall be confidential and shall not be
36disclosed except if required by court order in a judicial proceeding.

37(b) Information on volume shipments and any other related
38information that is required for reports to governmental agencies,
39financial reports to the commission on aggregate sales and
40inventory information, and any other information that gives only
P15   1totals, but excludes individual information, may be disclosed by
2the commission.

3

79875.  

The first handler of olive oil being assessed shall deduct
4the assessment from amounts paid by him or her to the producer,
5and shall be a trustee of the funds until they are paid to the
6commission at the time and in the manner prescribed by the
7commission board of directors. A producer who handles olive oil
8made from his or her olives shall pay an assessment directly to the
9commission at the time and in the manner prescribed by the
10commission board of directors.

11

79876.  

Every handler shall be personally liable for the payment
12of the assessments collected from producers, and failure to collect
13the assessment from any producer shall not exempt the handler
14from liability.

15

79877.  

An assessment that is levied as provided in this chapter
16is a personal debt of the producer assessed.

17

79878.  

(a) A person who fails to file a return or pay an
18assessment within the time required by the commission shall pay
19to the commission a penalty of 10 percent of the amount of the
20assessment determined to be past due and, in addition, interest on
21the unpaid balance at the rate of 1.5 percent per month.

22(b) In addition to any other penalty imposed, the commission
23may require a person who fails to pay an assessment or related
24charge pursuant to this article to furnish and maintain a surety
25bond in a form and amount and for a period of time specified by
26the commission board of directors as assurance that all payments
27to the commission will be made when due.

28 

29Article 7.  Actions and Penalties
30

 

31

79881.  

A civil penalty not exceeding one thousand dollars
32($1,000) may be levied by the commission upon a person who
33does any of the following:

34(a) Willfully render or furnish a false report, statement, or record
35required by the commission, or in any way to affect the shipment
36and marketing of olive oil in order to avoid payment of assessments
37on the product’s highest value.

38(b) Fail to render or furnish a report, statement, or record
39required by the commission.

P16   1(c) When engaged in the producing of olives for processing into
2olive oil or handling of olive oil, fail or refuse to furnish to the
3commission or its duly authorized agents, upon request, information
4concerning the name and address of the persons from whom he or
5she has received olive oil and the quantity so received.

6(d) Secrete, destroy, or alter records required to be kept by this
7chapter.

8

79882.  

For purposes of according individuals aggrieved by its
9actions or determinations, the commission board of directors shall
10establish procedures for an informal hearing before the commission
11or before a committee of the commission established for this
12purpose. Appeals from the decision of the commission board of
13directors may be made to the secretary. The determination of the
14secretary shall be subject to judicial review upon petition filed
15with the appropriate superior court.

16

79883.  

(a) The commission may commence civil actions and
17utilize all remedies provided in law or equity for the collection of
18assessments and civil penalties, and for obtaining injunctive relief
19or specific performance, relating to this chapter and the rules and
20regulations adopted under this chapter. A court shall issue to the
21commission any requested writ of attachment or injunctive relief
22upon a prima facie showing by verified complaint that a named
23defendant has violated this chapter or any other rule or regulation
24of the commission, including, but not limited to, the nonpayment
25of assessments. No bond shall be required to be posted by the
26commission as a condition for the issuance of any writ of
27attachment or injunctive relief.

28(b) A writ of attachment shall be issued pursuant to Chapter 5
29(commencing with Section 485.010) of Title 6.5 of Part 2 of the
30Code of Civil Procedure, except that the showing specified in
31Section 485.010 is not required. Injunctive relief shall be issued
32pursuant to Chapter 3 (commencing with Section 525) of Title 7
33of Part 2 of the Code of Civil Procedure, except that the showing
34of irreparable harm or of inadequate remedy at law specified by
35Section 526 or 527 is not required.

36(c) Upon entry of any final judgment on behalf of the
37commission against any defendant, the court shall enjoin the
38defendant from conducting any type of business regarding the
39production of olives or handling of olive oil until there is full
40compliance with, and satisfaction of, the judgment.

P17   1(d) Upon a favorable judgment for the commission, the court
2may order that the commission be reimbursed for reasonable
3attorney’s fees and other related costs actually incurred. Venue
4for these actions is at the domicile or place of business of the
5defendant or in the county of the principal office of the
6commission. The commission may be sued only in the county of
7its principal office.

8

79884.  

Any action by the commission for any penalty or other
9remedy that is prescribed under this chapter shall be commenced
10within two years from the date of discovery of the alleged violation.
11Any action against the commission by any person shall be
12commenced within two years from the date of the alleged violation.

13

79885.  

The commission shall not be required to allege or prove
14that an adequate remedy at law does not exist in any action brought
15under this chapter.

16

79886.  

This chapter shall be liberally construed. If any section,
17clause, or part of this chapter is for any reason held unconstitutional
18or invalid as applied to any person or as applied under certain
19circumstances, that decision shall not affect the remaining portions
20of this chapter or the application of this chapter to any other persons
21or under any other circumstance.

22

79887.  

The termination of this chapter shall not affect or waive
23any right, duty, obligation, or liability that has arisen or that may
24thereafter arise in connection with this chapter, release or
25extinguish any violation of this chapter, or affect or impair any
26right or remedies of the commission with respect to any violation.

27 

28Article 8.  Continuation or Suspension and Termination
29

 

30

79891.  

(a) Five years after implementation of this chapter, the
31secretary shall hold a public hearing, after providing proper notice
32to persons subject to this chapter and any other persons or entities
33who have requested, in writing, notice of the hearing, to determine
34whether the operation of this chapter should be continued. If the
35secretary finds after the hearing that a substantial question exists
36among the producers assessed under this chapter regarding whether
37the operation of this chapter should be continued, the secretary
38shall submit the chapter to a reapproval referendum to be conducted
39among producers to determine whether the operation of this chapter
40shall be reapproved and continued in effect.

P18   1(b) If the secretary finds after conducting a hearing that no
2substantial question exists or, if a reapproval referendum is
3required, that a majority of the eligible producers voting in the
4referendum voted in favor of continuing the operation of this
5chapter, the secretary shall certify the vote and this chapter shall
6remain operative. If the secretary finds that a favorable vote has
7not been given, he or she shall certify the vote and declare the
8operation of this chapter suspended upon the expiration of the
9current marketing season. Thereupon, the operations of the
10commission shall be concluded and funds distributed in the manner
11provided in Section 79894. A bond or security shall not be required
12for the referendum.

13

79892.  

Following a hearing, and favorable referendum if
14required, the process specified in Section 79891 shall be conducted
15by the secretary every five years thereafter between July 1 and
16June 30 of the following year, unless a referendum is conducted
17as the result of a petition pursuant to Section 79893. In that case,
18the hearing, and referendum if required, shall be conducted every
19five years following the industry petitioned referendum.

20

79893.  

(a) Upon a finding by a two-thirds vote of the
21commission board of directors that the operation of this chapter
22has not tended to effectuate its declared purposes, the commission
23may recommend to the secretary that the commission be suspended.
24Any suspension shall not become effective until expiration of the
25current marketing season.

26(b) (1) The secretary shall, upon receipt of a recommendation,
27or may, after a public hearing to review a petition described in
28paragraph (2) requesting the suspension, cause a referendum to be
29conducted among the listed producers to determine if the operations
30of the commission shall be suspended. The secretary shall not hold
31a referendum as a result of a petition described in paragraph (2)
32unless the petitioner shows by the weight of evidence that the
33implementation of this chapter has not effectuated its declared
34purposes.

35(2) A petition filed requesting suspension of the commission
36shall be signed by at least 15 percent of the producers, by number,
37who also produce at least 15 percent of the total volume of olives
38marketed in the preceding marketing season.

39(c) The secretary shall establish a referendum period, which
40shall not be less than 10 days or more than 60 days in duration.
P19   1The secretary may prescribe additional procedures necessary to
2conduct the referendum. At the close of the established referendum
3period, the secretary shall tabulate the ballots filed during the
4period. The secretary shall suspend the operation of this chapter,
5if the secretary finds at least 40 percent of the total number of
6producers from the list established by the secretary participate,
7and that either of the following occurs:

8(1) Sixty-five percent of the producers that voted in the
9referendum voted in favor of suspension, and the producers so
10voting produced a majority of the total quantity of olives processed
11into olive oil in the preceding marketing season by all of the
12producers voting in the referendum.

13(2) A majority of the producers that voted in the referendum
14voted in favor of suspension, and the producers so voting produced
1565 percent or more of the total quantity of olives processed into
16olive oil in the preceding marketing season by all of the producers
17voting in the referendum.

18

79894.  

After the effective date of suspension of this chapter,
19the operations of the commission shall be concluded and all moneys
20held by the commission, and moneys collected by assessment and
21not required to defray the expenses of concluding and terminating
22operations of the commission, shall be returned upon a pro rata
23basis to all persons from whom assessments were collected in the
24immediately preceding marketing season. However, if the
25commission board of directors finds that the amounts returnable
26are so small as to make impractical the computation and remitting
27of the pro rata refund to those persons, any moneys remaining after
28payment of all expenses of winding up and terminating operations
29shall be withdrawn from the approved depository and paid into an
30appropriate state or federal program or used to fund activities
31related to the subject matter of this chapter.

32

79895.  

Upon suspension of the operation of this chapter, the
33commission shall mail a copy of the notice of suspension to
34producers affected by the suspension whose names and addresses
35are on file.

36 

37Article 9.  Quality Standards
38

 

39

79901.  

The commission board of directors may recommend
40to the secretary the adoption and amendment of olive oil grades
P20   1and labeling standards, in accordance with the California Marketing
2Act of 1937 (Chapter 1 (commencing with Section 58601) of Part
32 of Division 21), unless otherwise specified in this article.

4

79902.  

The commission board of directors shall serve as the
5advisory body to the secretary on all matters pertaining to this
6article.



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