BILL ANALYSIS Ó
SENATE COMMITTEE ON AGRICULTURE
Senator Cathleen Galgiani, Chair
2015 - 2016 Regular
Bill No: SB 65 Hearing Date: 4/7/15
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|Author: |Wolk |
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|Version: |3/9/15 |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Anne Megaro |
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Subject: Food labeling: olive oil
SUMMARY :
This bill would remove the use of American Viticultural Areas
from olive oil labels and instead use specific regions or
estates within California to indicate oil source. This bill
would require that olive oil labeled as originating from a
specific region of California contain at least 85% oil made from
olives grown in that specified region, and if labeled from a
specific estate, 95% from olives grown on the specified estate.
BACKGROUND AND EXISTING
LAW :
Existing State Law:
The California Department of Public Health is responsible for
regulating and enforcing food labeling laws and regulations and
may determine that a food is misbranded if its label is false or
misleading (Health and Safety Code §110660 et seq.).
Existing law requires any olive oil produced, processed, sold,
given away, or possessed in California to be derived solely from
olives grown in California if the label indicates that it
contains California olive oil. Similarly, olive oil with a
label claim indicating a specific region of California (American
Viticultural Area, see below) must contain 75% olive oil made
from olives grown in that specified region.
The Olive Oil Commission of California (OOCC) was created in
2013 to engage in olive oil quality and nutritional research and
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to recommend grading and labeling standards to the California
Department of Food and Agriculture (CDFA). After a successful
producer referendum, the OOCC developed California olive oil
grading and labeling standards that would apply only to
Californians processing over 5,000 gallons of olive oil,
refined-olive oil, or olive-pomace oil, per year. CDFA approved
these recommendations, and they became effective on September
26, 2014.
Existing Federal Law:
American Viticultural Areas (AVA) were established in 1980 by
the federal Alcohol and Tobacco Tax and Trade Bureau to
delineate grape-growing regions in the United States based on
differences in climate, geology, soil characteristics, and
physical features such as topography or watersheds. In
addition, wines may use an AVA label only if 75% of the wine is
derived from grapes grown in that region. The first AVA
established in California was Napa Valley in 1981, and today
there are approximately 130 approved AVAs in California. (29
CFR Part 9).
California Olive Oil:
California produces 99% of the olives grown within the United
States. According to the California Olive Oil Council, there
are over 400 growers on approximately 30,000 acres dedicated to
the production of olive oil. With over 75 olive varieties grown
in California, it is estimated that the 2013-14 harvest will
produce over 3.5 million gallons of extra virgin olive oil.
PROPOSED
LAW :
This bill:
Specifies that olive oil labeled "California Olive Oil"
must be 100% derived from California-grown olives.
Deletes the use of American Viticultural Areas for olive
oil labeling.
Requires that olive oil labeled as originating from a
specific region of California contain at least 85% of oil
made from olives grown in that specified region.
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Requires that olive oil labeled as originating from a
specific estate in California contain at least 95% of oil
made from olives grown on that specified estate.
ARGUMENTS IN SUPPORT:
According to the author, "The California Health and Safety Code
contains outdated language relating to utilizing California and
its regions in the labeling of olive oil by referencing American
Viticultural Areas (AVA's) established by the federal Alcohol
and Tobacco Tax and Trade Bureau (TTB) which regulates wine. SB
65 will replace the outdated language with language that
incorporates the OOCC standards for 'California' labeling and
applies it to all California olive oil producers."
ARGUMENTS IN OPPOSITION:
None received.
COMMENTS :
Conform State Law: The OOCC recommendations approved by CDFA in
2014 included Section 11.3.4, which developed labeling
requirements in regards to "provenance," or origination of the
olive oil. This bill would conform state law to these new
regulations by removing the reference to American Viticultural
Areas and strengthen the standard of olive oil origination,
requiring 100% of the olives to be grown in California, 85%
within the stated region or 95% from the specific estate, if
such provenance label claims are made. By amending current law,
these labeling requirements would apply to all California
producers, not just those affected by OOCC standards.
Appellation vs AVA: American Viticultural Areas were created
for the wine industry to group wines within a specific region
(i.e. Napa Valley). Given the abundance of microclimates in
California, which have an effect on product quality and taste,
it is understandable that a different commodity, olive oil,
would benefit from the creation of its own provenance areas
based on variables affecting olive groves, not vineyards.
However, the specific regions established in this bill are
neither described nor detailed, and, therefore, require no
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delineation from one region to another. In contrast, wines that
do not label under an AVA may choose to label with an
appellation of origin, such as a state or county, as long as 75%
of the grapes are grown in that appellation area. The committee
may wish to consider whether including a reference to
appellations or other region delineation would further the
purpose of this bill and clarify "specified region."
RELATED
LEGISLATION :
SB 411 (Wolk) of 2014. Would have required olive oil labeled
with an approved AVA designation to be made of oil derived
solely from olives grown in that AVA, instead of 75% from olives
grown in the AVA.
SB 250 (Wolk), Chapter 344, Statutes of 2013. Creates the Olive
Oil Commission of California to engage in olive oil quality and
nutritional research and to recommend grades and labeling
standards.
SB 818 (Wolk), Chapter 567, Statutes of 2011. Conforms
California olive oil labeling requirements to United States
labeling standards published in the U.S. Standards for Grade of
Olive Oil and Olive-Pomace Oil.
SB 920 (Thompson), Chapter 543, Statutes of 1997. Requires that
olive oil sold as "California Olive Oil" must be solely derived
from California-grown olives and required olive oil with an AVA
label to contain at least 75% of oil made from olives grown
within the specified AVA.
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SUPPORT :
None received
OPPOSITION :
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None received
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