BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:  July 8, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          SB 65  
          (Wolk) - As Amended March 9, 2015


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          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:








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          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  








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            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