BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 411
                                                                  Page  1

          Date of Hearing:   July 2, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                      SB 411 (Wolk) - As Amended:  June 9, 2014

          Policy Committee:                               
          AgricultureVote:7-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill increases, from 75% to 85%, the content of olive oil  
          that must be sourced from a specific American Viticultural  
          Appellation (AVA) in order to be labelled as having been sourced  
          from that AVA.

           FISCAL EFFECT  

          Minor and absorbable costs to the Department of Public Health.

           COMMENTS  

          1)  Purpose.   According to the author, a 2012 study from the  
            University of California Davis Olive Center reaffirmed the  
            existence of fraud, mislabeling, and adulteration of extra  
            virgin olive oil imported and sold in California.  The author  
            claims consumers are misled by deceiving and fraudulent  
            labels, and as a result may pay premium prices for  
            lower-quality olive oil.  The author contends this bill will  
            help assure consumers that they are getting the higher-quality  
            olive oil for which they are paying.

          2)  85% Content Standard.   California adopted the current 75%  
            content standard for olive oil using a specific AVA label in  
            1998.  The recently-formed Olive Oil Commission of California  
            requested the Department of Food and Agriculture hold a  
            hearing on olive oil grade and labeling standards.  Proposed  
            new standards would affect olive oil producers of 5,000  
            gallons annually or more, and include a similar proposal to  
            increase the content requirement olive oil that uses an AVA  
            label from 75% to 85%.  By contrast, this bill affects all  








                                                                  SB 411
                                                                  Page  2

            California olive oil producers using an AVA label regardless  
            of production volume.

          3)  Wine Standard for Olive Oil.   The 85% content standard mirrors  
            that which is commonly required for wine labelled with a  
            specific AVA.  The committee may wish to consider whether AVA  
            labels and content standards are meaningful for olive oil,  
            considering that those standards and regions were created for  
            purposes of distinguishing between wines but not other  
            agricultural products.  Similarly, allowing olive oil or other  
            agricultural products to use AVA labelling may lead to  
            consumer confusion over the implied premium quality of those  
            products and give AVA-sourced olive oil a competitive  
            advantage over non-AVA sourced olive oil that is otherwise of  
            comparable or superior quality.


           Analysis Prepared by  :    Joel Tashjian / APPR. / (916) 319-2081