BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 250|
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THIRD READING
Bill No: SB 250
Author: Wolk (D)
Amended: 4/10/13
Vote: 21
SENATE AGRICULTURE COMMITTEE : 5-0, 4/16/13
AYES: Galgiani, Cannella, Berryhill, Lieu, Wolk
SENATE APPROPRIATIONS COMMITTEE : 7-0, 4/29/13
AYES: De Le�n, Walters, Gaines, Hill, Lara, Padilla, Steinberg
SUBJECT : Olive Oil Commission of California
SOURCE : Author
DIGEST : This bill establishes the Olive Oil Commission of
California (Commission) to engage in olive oil quality and
nutritional research and to recommend grades and labeling
standards. This bill prescribes membership, board of directors,
powers and duties, implementing and voting procedures,
assessments and recordkeeping, penalties, continuation or
termination of the Commission, and creation of quality
standards. This bill authorizes the Commission to levy an
annual assessment, not to exceed a specified amount, on
producers, as defined, and authorizes the Commission to expand
those funds for purposes of implementing the bill, thereby
making an appropriation. This bill becomes operative upon a
favorable producer referendum vote.
ANALYSIS :
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Existing law:
1.Provides for the creation of marketing programs within the
California Food and Agriculture Code, Division 22. There are
currently 16 active commissions in California, all of which
are governed by boards of directors and overseen by the
California Department of Food and Agriculture (CDFA). These
commissions were created to enhance their industries by
investing in promotion, advertising, education, marketing
research, scientific research, and the creation and regulation
of quality standards.
2.Provides that commissions are industry-funded programs and
assessed through grower and/or handler fees. The industry
pays for all costs of the Commission, including all costs for
governmental oversight. The fee rate may be prescribed in
statute with the potential to be increased by a referendum
vote of the Commission.
This bill:
1.Creates the Olive Oil Commission of California to engage in
olive oil quality and nutritional research, and to recommend
grades and labeling standards to the Secretary of the CDFA.
2.States declarations and general provisions and definitions, as
specified.
3.Creates a board of directors (board) with prescribed
membership, powers, duties and responsibilities of the
Commission.
4.Designates that all monies received by any person from
assessments levied be deposited in banks of the board's
choosing.
5.Establishes implementation and voting procedures.
6.Requires 40% of the total number of producers to cast a
referendum vote to begin operation of the Commission and that
either of the following must also occur:
A. Of those votes, 65% must vote in favor of the
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Commission. That same 65% must also represent producers
who, when total production volume is combined, produce the
majority of olive oil of all those participating in the
referendum vote.
B. Of those votes, a majority of producers must vote in
favor of the Commission, and those producers must represent
65% or more of the total quantity of olive oil produced by
those participating in the referendum vote.
1.Establishes an assessment rate to be paid by producers of not
more than $0.25 per gallon of olive oil. An increase in this
rate must be approved by a referendum vote, and a penalty
shall be paid on any past due assessment.
2.Authorizes the Commission to levy civil penalties not
exceeding $1,000 , as specified.
3.Authorizes the board to establish procedures for individuals
aggrieved by its actions, including appeals and judicial
review.
4.Authorizes the Commission to commence civil actions and
utilize all remedies provided in law for collection of
assessments and civil penalties.
Background
California produces 99% of the olives grown in the United
States. According to the California Olive Oil Council, there
are over 400 growers on approximately 30,000 acres dedicated to
the production of olive oil. With over 50 varieties of olives
grown in California, it is estimated that the 2013 harvest will
produce over 2.4 million gallons of oil.
Related Legislation
AB 2695 (Hernandez, Chapter 605, Statutes of 2010), creates the
California Nursery Producers Commission with prescribed
membership, powers, duties, and responsibilities of the
Commission. Authorizes the Commission to engage in outreach,
education, promotion, marketing, and research relating to
nursery products.
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AB 1912 (Evans, Chapter 585, Statutes of 2010), creates the
California Apiary Research Commission with prescribed
membership, powers, duties and responsibilities of the
Commission. Authorizes the Commission to engage in research and
education programs relating to honeybees.
AB 606 (Ma, Chapter 366, Statutes of 2009), creates the
California Blueberry Commission with prescribed membership,
powers, duties, and responsibility of the commission.
Authorizes the Commission to engage in education, promotion,
marketing, and research relating to blueberries.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee, because this
measure authorizes an industry assessment, it would have no
impact on the State's General Fund or CDFA's budget. If the
maximum assessment of $0.25 per gallon is leveled on 2.4 million
gallons of olive oil, the Commission would receive $600,000 in
operating revenue.
SUPPORT : (Verified 4/30/13)
Anchordoguy & Co.
Bari Olive Oil Company
Blossom Vineyards
California Harvesting
California League of Food Processors
California Olive Oil Council
California Olive Ranch
Dickson Napa Ranch
ENZO Olive Oil Company/P-R Farms, Inc.
Kennedy Ranch
Lodi Farming, Inc.
Maben Family, LLC
McCorkle Land Company
ARGUMENTS IN SUPPORT : According to the author, "California's
olive oil industry has been growing exponentially over the past
five years. The industry believes it is time to support a
coordinated effort to provide for olive oil research and
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standards to promote the sustainability and success of this
important agricultural product."
According to supporters of this bill, the Commission will
address fraudulent practices in the marketplace. Supporters
state that "California produces some of the highest quality
extra virgin olive oil. However, the California olive oil
industry faces fierce global competition from producers who do
not adhere to the same high quality standards as California
producers. In fact, the UC Davis Olive Center released a
surprising study based on laboratory and sensory testing that
found that 69% of imported extra-virgin olive oils bought off
the shelves of California supermarkets failed to meet
international standards. The study concluded that many of them
were falsely labeled as extra virgin grade."
>
JL:ej 4/30/13 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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