BILL ANALYSIS Ó
SB 411
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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
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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