BILL ANALYSIS Ó
SB 411
Page 1
SENATE THIRD READING
SB 411 (Wolk)
As Amended June 9, 2014
Majority vote
SENATE VOTE :34-0
AGRICULTURE 7-0 APPROPRIATIONS 16-1
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|Ayes:|Eggman, Olsen, Dahle, |Ayes:|Gatto, Bigelow, |
| |Pan, Quirk, Salas, Yamada | |Bocanegra, Bradford, Ian |
| | | |Calderon, Campos, Eggman, |
| | | |Gomez, Holden, Jones, |
| | | |Linder, Pan, Quirk, |
| | | |Ridley-Thomas, Wagner, |
| | | |Lowenthal |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | |Nays:|Donnelly |
| | | | |
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SUMMARY : Increases the required percentage, for labeling
purposes, of olive oil sourced from a specific American
Viticultural Appellation (AVA) from 75% to 85%.
EXISTING LAW requires the State Department of Public Health
(DPH) to license and enforce statutes regarding the manufacture,
blending, production, and sale of olive oil; requires any olive
oil produced, processed, sold, offered for sale, given away, or
possessed in this state, that indicates on its label that it is
from an area that is one of the approved AVAs under federal law,
to be made from oil, of which 75% is derived solely from olives
grown in that approved AVA; and, makes the violation of these
provisions a crime.
Federal regulations establish AVAs, which are defined as
demarcated grape-growing regions having distinguishing features.
There are approximately 200 approved AVAs across the country;
permits a wine to be labeled with an approved AVA appellation if
no less than 85% of the wine is derived from grapes grown within
the boundaries of the AVA; and, permits a wine to be labeled
with an appellation of origin other than an AVA, such as a state
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or county, if at least 75% of the wine is derived from fruit or
agricultural products grown in the appellation.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, minor and absorbable costs to DPH.
COMMENTS : California olive oil has had a 75% sourcing
requirement since 1998 for the use of a specific AVA label. The
recently formed Olive Oil Commission of California (OOCC) has
requested the California Department of Food and Agriculture hold
a hearing on olive oil grade and labeling standards, which would
affect olive oil producers of 5,000 gallons annually or more.
The hearing includes the proposal to increase the sourcing
percentage requirement for the use of an AVA from 75% to 85%.
Should this bill become law it would affect all California olive
oil, not just those producing 5,000 or more per year.
Olive production may overlap some AVA regions, but many areas
where olives are grown in California do not have an AVA
designation, possibly putting some producers at a marketing
disadvantage. Furthermore, this may lead to deception of
consumers since there is no verification or enforcement by state
or local government, only by private action.
Prior legislation. SB 250 (Wolk), Chapter 344, Statutes of
2013, established OOCC to engage in olive oil quality and
nutritional research and to recommend grades and labeling
standards; authorized OOCC to levy an annual assessment, as
specified, on producers, as defined; and, to become operative
upon a favorable producer referendum vote.
SB 818 (Wolk), Chapter 567, Statutes of 2011, redefined
California's olive oil labeling requirements to conform to the
United States labeling standards, as outlined in the United
States 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 reuse a clean olive oil container, can,
or drum.
SB 920 (Thompson), Chapter 543, Statutes of 1997, specified that
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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% of the oil made from
olives grown in that AVA.
Analysis Prepared by : Jim Collin / AGRI. / (916) 319-2084
FN: 0004218