BILL ANALYSIS                                                                                                                                                                                                    Ó






                             SENATE COMMITTEE ON HEALTH
                          Senator Ed Hernandez, O.D., Chair

          BILL NO:       SB 411
          AUTHOR:        Wolk
          AMENDED:       April 1, 2013
          HEARING DATE:  April 24, 2013
          CONSULTANT:    Marchand

           SUBJECT  :  Food labeling: olive oil.
           
          SUMMARY  :  Requires any olive oil produced, processed, sold or  
          possessed in California, that indicates on its label that it is  
          from an area that is one of the approved American Viticultural  
          Areas (AVAs) established pursuant to federal regulations, to be  
          made of oil derived solely from olives grown in that approved  
          AVA, rather than the existing law requirement that at least 75  
          percent of the oil be derived from olives grown in the AVA.
          
          Existing state law:
          1.Requires any olive oil produced, processed, sold or possessed  
            in California, that indicates on its label "California Olive  
            Oil," or uses words of similar import that indicate that  
            California is the source of the oil, to be made of oil derived  
            solely from olives grown in California.

          2.Requires any olive oil produced, processed, sold or possessed  
            in California, that indicates on its label that it is from an  
            area that is one of the approved AVAs as set forth in federal  
            regulations, to be made of oil 75 percent of which is derived  
            solely from olives grown in that approved AVA.

          Existing federal regulations:
          1.Establishes AVAs, which are defined as delimited grape-growing  
            regions having distinguishing features, a name, and a  
            delineated boundary.  Permits a petition for the establishment  
            of an AVA to be made by any interested party, and specifies  
            what information must be contained in the petition.  There are  
            approximately 200 approved AVAs across the country, with  
            California AVAs including Napa Valley, the Central Coast,  
            Yountville, St. Helena, Paso Robles, Sonoma Valley, and many  
            others.

          2.Permits a wine to be labeled with an approved AVA appellation  
            if no less than 85 percent of the wine is derived from grapes  
            grown within the boundaries of the AVA.
                                                         Continued---



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          3.Permits a wine to be labeled with an appellation of origin  
            other than an AVA, such as a state or county, if at least 75  
            percent of the wine is derived from fruit or agricultural  
            products grown in the appellation.
          
          This bill: Requires any olive oil produced, processed, sold or  
          possessed in California, that indicates on its label that it is  
          from an area that is one of the approved AVAs established  
          pursuant to federal regulations, to be made of oil derived  
          solely from olives grown in that approved AVA, rather than the  
          existing law requirement that at least 75 percent of the oil be  
          derived from olives grown in the AVA.
          
           FISCAL EFFECT  :  This bill has not been analyzed by a fiscal  
          committee.

           

          COMMENTS  :  
           1.Author's statement.  In 2012, the University of California  
            Davis Olive Center (Olive Center) issued their third study  
            testing the quality and authenticity of extra virgin olive oil.  
            This study reaffirmed the existence of fraud, mislabeling and  
            adulteration of extra virgin olive oil imported and sold in  
            California. Consumers continue to be misled by deceiving and  
            fraudulent labels, and as a result continue to pay premium  
            prices for low-quality products that fail to provide the many  
            health benefits of using genuine extra virgin olive oil. SB 411  
            is one step to assuring the consumer that they are getting the  
            pure product they are paying for by requiring that any olive  
            oil that states an AVA on its label, is solely derived from  
            olives grown in that jurisdiction.


          2.UC Davis Olive Center Reports. The author cites a report from  
            the Olive Center as finding fraud in the labeling of olive oil.  
             According to its September 2012 report, the Olive Center  
            evaluated 21 olive oil samples sold to the restaurant and food  
            service sectors.  The Olive Center's analysis found that all  
            but one of the 15 "extra virgin" samples passed the most  
            commonly used United States Department of Agriculture (USDA)  
            chemistry standards, but despite this high passage rate, 60  
            percent of the samples failed the USDA "extra virgin" sensory  
            standard.  Some of the oils were so defective that they were  
            labeled as "not fit for human consumption" under the USDA  




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            standard.  Further, chemical purity tests indicated that one of  
            the 15 "extra virgin" samples and one of the six "olive oil"  
            samples were adulterated with inexpensive canola oil.


          3.Related legislation. SB 250 (Wolk) proposes to create an Olive  
            Oil Commission of California to engage in olive oil quality  
            and nutritional research and to recommend grades and labeling  
            standards.  SB 250 was passed by the Senate Agriculture  
            Committee, and is pending in Senate Appropriations Committee.

          4.Prior legislation. SB 818 (Wolk), Chapter 567, Statutes of  
            2011, redefined California's olive labeling requirements to  
            conform to the United States labeling standards as outlined in  
            the U.S. Standards for Grades of Olive Oil and Olive-Pomace  
            Oil published in the Federal Register, as specified.

          SB 634 (Wiggins), Chapter 694, Statutes of 2008, clarified the  
            definition of olive oil, conformed olive oil definitions,  
            grades, and labeling requirements to international standards,  
            authorized the addition of vitamin E to specified olive oil,  
            and permitted a consumer to re-use a clean olive oil  
            container, can, or drum.

          SB 920 (Thompson), Chapter 543, Statutes of 1997, specified that  
            olive oil labeled as California olive oil must be made from  
            California olives.  SB 920 also required olive oil labeled as  
            coming from an AVA to have at least 75 percent of the oil made  
            from olives grown in that AVA.
            
           SUPPORT AND OPPOSITION  :
          Support:  None received

          Oppose:   None received



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