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--- SB 411 Page 2 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 SB 411 Page 3 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 -- END --