BILL ANALYSIS Ó
SB 250
Page 1
SENATE THIRD READING
SB 250 (Wolk)
As Amended August 5, 2013
Majority vote
SENATE VOTE :35-2
AGRICULTURE 7-0 JUDICIARY 9-1
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|Ayes:|Eggman, Olsen, Atkins, |Ayes:|Wieckowski, Wagner, |
| |Dahle, Pan, Quirk, Yamada | |Alejo, Chau, Dickinson, |
| | | |Garcia, Maienschein, |
| | | |Muratsuchi, Stone |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | |Nays:|Gorell |
| | | | |
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APPROPRIATIONS 16-1
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|Ayes:|Gatto, Harkey, Bigelow, |
| |Bocanegra, Bradford, Ian |
| |Calderon, Campos, Eggman, |
| |Gomez, Hall, Holden, |
| |Linder, Pan, Quirk, |
| |Wagner, Weber |
| | |
|-----+--------------------------|
|Nays:|Donnelly |
| | |
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SUMMARY : This bill establishes the Olive Oil Commission of
California (OOCC) to engage in olive oil quality and nutritional
research and to recommend grades and labeling standards. This bill
authorizes OOCC to levy an annual assessment, as specified, on
producers, as defined. This bill becomes operative upon a favorable
producer referendum vote. Specifically, this bill :
1)Creates the OOCC to engage in olive oil quality and nutritional
research, and to recommend grades and labeling standards to the
Secretary of the California Department of Food and Agriculture
(CDFA).
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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 OOCC.
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 OOCC and that either of the following
must also occur:
a) Of those votes, 65% must vote in favor of OOCC. That same
65% must also represent producers who, when total production
volume is combined, produce the majority of oil olives
processed into olive oil of all those participating in the
referendum vote; and,
b) Of those votes, a majority of producers must vote in favor
of OOCC, and those producers must represent 65% or more of the
total quantity of oil olives processed into olive oil by those
participating in the referendum vote.
7)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.
8)Authorizes OOCC to levy civil penalties not exceeding $1,000, as
specified.
9)Authorizes OOCC to commence civil actions and utilize all remedies
provided in law for collection of assessments and civil penalties.
EXISTING LAW authorizes various marketing and promotion commissions
(commissions) to promote the production and marketing of California
agricultural commodities. Commissions have a variety of powers
covering promotion, advertising, education, production or
post-harvest research, and quality standards and inspections.
Commissions cover a variety of commodities.
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FISCAL EFFECT : According to the Assembly Appropriations Committee,
this bill has startup costs to CDFA of $40,000 and annual costs of
up to $20,000, but these costs will be borne by OOCC.
COMMENTS : According to the author, "California's olive oil industry
has been growing rapidly over the past five years. The industry
believes it is time to support a coordinated effort to provide for
olive oil research and standards to promote the sustainability and
success of this important agricultural product."
Supporters state OOCC 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 always adhere to the same high quality standards as
California producers.
According to CDFA, the purpose of marketing programs is to provide
agricultural producers and handlers an organizational structure,
operating under government sanction, which allows them to solve
production and marketing problems collectively that could not be
addressed individually. Current marketing programs' activities
include commodity promotion, research, and maintenance of quality
standards. Commissions provide a structure for solving problems and
also provide a vehicle for collecting funds to support activities.
For accomplishing the purposes stated by the author for this
industry, a commission may be an appropriate entity. Current
commissions and marketing orders have been successful in expanding
markets, improving product quality, and providing more research for
pests and disease prevention. In recent years, one commission was
terminated by the industry and another had an audit by the Secretary
of CDFA, which revealed potential misuse of funds. This bill has
language requiring annual audits, and upon determination of the
need, the Secretary of CDFA may conduct a fiscal and administrative
audit of OOCC.
Analysis Prepared by : Victor Francovich / AGRI. / (916) 319-2084
FN: 0002120
SB 250
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