BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 65|
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CONSENT
Bill No: SB 65
Author: Wolk (D)
Amended: 3/9/15
Vote: 21
SENATE AGRICULTURE COMMITTEE: 5-0, 4/7/15
AYES: Galgiani, Cannella, Berryhill, Pan, Wolk
SENATE HEALTH COMMITTEE: 8-0, 4/22/15
AYES: Hernandez, Nguyen, Mitchell, Monning, Nielsen, Pan,
Roth, Wolk
NO VOTE RECORDED: Hall
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SUBJECT: Food labeling: olive oil
SOURCE: Author
DIGEST: This bill removes the use of American Viticultural
Areas from olive oil labels and instead uses specific regions or
estates within California to indicate oil source. This bill
requires 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.
ANALYSIS: American Viticultural Areas (AVAs) 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
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established in California was Napa Valley in 1981, and today
there are approximately 130 approved AVAs in California. (29
CFR Part 9).
Existing state law:
1)Requires the California Department of Public Health to
regulate and enforce food labeling laws and regulations and
may also determine that a food is misbranded if its label is
false or misleading (Health and Safety Code §110660 et seq.).
2)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 (AVA, see below)
must contain 75% olive oil made from olives grown in that
specified region.
3)Creates the Olive Oil Commission of California (OOCC) to
engage in olive oil quality and nutritional research and 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.
This bill:
1)Specifies that olive oil labeled "California Olive Oil" must
be 100% derived from California-grown olives.
2)Deletes the use of AVAs for olive oil labeling.
3)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.
4)Requires that olive oil labeled as originating from a specific
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estate in California contain at least 95% of oil made from
olives grown on that specified estate.
Background
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.
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 conforms state law to these new
regulations by removing the reference to AVAs and strengthens
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 existing law, these labeling requirements
will apply to all California producers, not just those affected
by OOCC standards.
Regions vs AVA. AVAs 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 delineation from one region to
another. The OOCC may wish to address this issue in future
recommendations.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: Yes
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SUPPORT: (Verified5/4/15)
None received
OPPOSITION: (Verified5/4/15)
None received
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."
Prepared by:Anne Megaro / AGRI. / (916) 651-1508
5/6/15 16:16:13
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