BILL ANALYSIS Ó SB 65 Page 1 Date of Hearing: July 8, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair SB 65 (Wolk) - As Amended March 9, 2015 ----------------------------------------------------------------- |Policy |Agriculture |Vote:|9 - 0 | |Committee: | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: YesReimbursable: No SUMMARY: This bill replaces American Viticultural Areas (AVAs) with specific California regions for olive oil labelled as having been sourced from a specific area; increases, from 75% to 85%, the content of the olive oil that must be sourced from that specific California region in order to be so labelled; and requires at least 95% of the content of the olive oil be sourced from a specific estate in order to use the term "estate" on the label. FISCAL EFFECT: SB 65 Page 2 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. 2)New 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 (OOCC) adopted new grade and labeling standards in 2014 that affect olive oil producers of 5,000 gallons annually or more, including the 85% regional content standard. The most recent OOCC report indicated there were 10 producers in the state that bottled above that threshold, accounting for 98% of all olive oil bottled in California. This bill requires non-OOCC olive oil producers to meet limited labeling requirements consistent with the OOCC standards, providing some uniformity to olive oil labels. 3)California Oleicultural Areas. The 85% content standard mirrors that which is commonly required for wine labelled with a specific AVA. Although this bill does not define the "specific regions" of California, or establish criteria for determining a specific region, this bill's approach is likely still superior to using AVAs, which may lead to consumer confusion over implied premium quality and give AVA-sourced olive oil a competitive advantage over non-AVA sourced olive SB 65 Page 3 oil that is otherwise of comparable or superior quality. The committee may wish to consider whether establishing criteria or a process for establishing labelling regions would further improve labelling transparency. Analysis Prepared by:Joel Tashjian / APPR. / (916) 319-2081