BILL NUMBER: SB 250	ENROLLED
	BILL TEXT

	PASSED THE SENATE  SEPTEMBER 6, 2013
	PASSED THE ASSEMBLY  SEPTEMBER 4, 2013
	AMENDED IN ASSEMBLY  AUGUST 5, 2013
	AMENDED IN ASSEMBLY  JUNE 3, 2013
	AMENDED IN SENATE  MAY 14, 2013
	AMENDED IN SENATE  APRIL 10, 2013

INTRODUCED BY   Senator Wolk

                        FEBRUARY 12, 2013

   An act to add Chapter 29 (commencing with Section 79800) to Part 2
of Division 22 of the Food and Agricultural Code, relating to olive
oil, and making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 250, 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 achieving the purposes of 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.
   Appropriation: yes.


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 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 olives and the resulting olive oil
and to ensure the needed levels of income are maintained for those
engaged in the production of olives for processing into olive oil and
the marketing of olive oil.
   79803.  The production of 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 research and grades and labeling standards.
   79805.  No action taken by the commission, or by any individual in
accordance with this chapter or with rules and regulations adopted
under this chapter, shall be deemed a violation of the Cartwright Act
(Chapter 2 (commencing with Section 16700) of Part 2 of Division 7
of the Business and Professions Code), the Unfair Practices Act
(Chapter 4 (commencing with Section 17000) of Part 2 of Division 7 of
the Business and Professions Code), or any rule of statutory or
common law against monopolies or combinations in restraint of trade.
   79806.  It is hereby declared as a matter of legislative
determination that members of the commission are intended to
represent and further the interest of the particular industry
concerned and that this representation and furtherance is intended to
serve the public interest. Accordingly, the Legislature finds that
with respect to persons who are elected or appointed to the
commission, the particular industry concerned is tantamount to, and
constitutes the public generally within the meaning of Section 87103
of the Government Code.

      Article 2.  Definitions


   79811.  Unless the context otherwise requires, the definitions in
this article govern the construction of this chapter.
   79812.  "Olive oil" means the oil obtained solely from the fruit
of the olive tree (Olea europea L.) which is produced in California
for commercial purposes.
   79812.5.   "Olives" means fruit of the olive tree (Olea europea
L.) that are processed 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 olive producer, or that he or she is
marketing on behalf of an 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 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 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, 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 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 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 olives submit the names and mailing addresses of
producers from whom olives are received, and the volume of olive oil
resulting from each producer's 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 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 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 achieving the purposes of 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.
   79872.  This chapter does not apply to a producer's 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 olives purchased by them and olive oil handled
by them with the name of the producer or producers whose olives were
purchased or handled.
   (b) A producer who handles olive oil made from his or her 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
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 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 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 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 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 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.