BILL ANALYSIS Ó
SENATE COMMITTEE ON AGRICULTURE
Senator Cathleen Galgiani, Chair
2015 - 2016 Regular
Bill No: SB 746 Hearing Date: 8/17/16
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|Author: |Wolk |
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|Version: |6/6/16 |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Anne Megaro |
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Subject: Olive Oil Commission of California: voting members:
chair of advisory committee
SUMMARY :
This bill would change the chair of the advisory committee from
an ex-officio member to a voting member on the Olive Oil
Commission of California Board of Directors. This bill also
requires the chair of the advisory committee to designate an
alternate to serve in the chair's absence.
BACKGROUND AND EXISTING
LAW :
The Olive Oil Commission of California (OOCC) was created in
2013 to engage in olive oil 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 California producers
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.
The OOCC Advisory Committee was created to provide an
opportunity for smaller olive oil producers (processing less
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than 5,000 gallons a year and, therefore, not eligible to
participate as "producers" within the OOCC) to advise the OOCC
on issues affecting 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 and approximately 38,000 acres dedicated to
the production of extra virgin olive oil. With over 75 olive
varieties grown in California, it is estimated that the 2015-16
harvest produced over 4 million gallons of extra virgin olive
oil.
Existing law:
1) Establishes the Olive Oil Commission of California to
engage in olive oil research and to recommend grades and
labeling standards. The OOCC is comprised of six
producers, three handlers, a public member, and ex-officio
members which include the chair of the OOCC Advisory
Committee, the secretary of CDFA, and other appropriate
persons as determined by the board.
2) Establishes the OOCC Advisory Committee to review issues
affecting California olive oil and to advise the OOCC Board
of Dnirectors.
3) Prescribes OOCC membership, board of directors, powers
and duties, implementing and voting procedures, assessments
and recordkeeping, penalties, continuation or termination
of the commission, and creation of quality standards.
4) Authorizes the OOCC to levy an annual assessment, not to
exceed $0.25 per gallon of olive oil, on producers
processing more than 5,000 gallons in one marketing season,
as defined.
PROPOSED
LAW :
This bill:
1) Changes the chair of the OOCC Advisory Committee from an
ex-officio member to a full voting member of the OOCC Board
of Directors.
SB 746 (Wolk) Page 3 of ?
2) Requires the chair of the OOCC Advisory Committee to
designate an alternate member to serve as Chair in the
chair's absence.
ARGUMENTS IN SUPPORT:
According to the author, "The Olive Oil Commission of California
desire[s] to include representation from the small and artisan
olive oil producers, as well as large olive oil producers, [and]
will promote unity and strength of the California industry as it
continues to grow and produce high quality extra virgin olive
oil."
According to those in support, this bill is part of an ongoing
effort by the OOCC to give small and artisan producers full
participation in policymaking and activities of the commission.
Although the OOCC is made up only of larger producers, the
decisions of the commission affect the entire industry;
therefore, it is fair that smaller producers be represented.
COMMENTS :
Need for this bill. This bill ratifies the action taken by the
OOCC board on September 9, 2015. At this meeting, board member
participation was discussed, and it was suggested that the
advisory committee chair be made a voting member of the OOCC so
that small producers effectively will be stakeholders in OOCC
activities. The board unanimously approved a motion to begin
the process to have "ex-officio" removed from law.
Commissions and Councils. There are approximately 16 active
commissions and councils, all of which are governed by boards of
directors and overseen by the California Department of Food and
Agriculture (CDFA). These entities were created to enhance
their industries by investing in promotion, advertising,
education, marketing research, scientific research, and/or the
creation and regulation of quality standards. Generally,
commissions and councils are initiated by the industry and go
into effect following an affirmative industry referendum vote
and, at times, a periodic vote to reaffirm their existence.
Once in effect, every member of the industry, as specified, is
required to follow all laws and regulations including, but not
limited to, the payment of assessment fees.
Unlike marketing orders and marketing agreements, commissions
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and councils are created through commodity-specific legislation.
Generally, councils are advisory to CDFA and all actions are
subject to CDFA approval. Commissions have greater autonomy and
do not serve an advisory purpose; however, CDFA must concur with
their annual budget and activities statement, and CDFA has the
authority to issue cease and desist orders for commission
actions that CDFA deems to not be in the public interest.
RELATED
LEGISLATION :
SB 65 (Wolk), Chapter 138, Statutes of 2015. Removes the use of
American Viticultural Areas from olive oil labels and instead
specifies regions or estates within California to indicate oil
source. 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.
SB 250 (Wolk), Chapter 344, Statutes of 2013. Creates the Olive
Oil Commission of California to engage in olive oil 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 requires olive oil with an
American Viticultural Areas (AVA) label to contain at least 75%
oil made from olives grown within the specified AVA.
PRIOR
ACTIONS :
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|Assembly Floor: |78 - 0 |
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|Assembly Appropriations Committee: |20 - 0 |
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|Assembly Rules Committee: |11 - 0 |
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SB 746 (Wolk) Page 5 of ?
SUPPORT :
Olive Oil Commission of California (Sponsor)
California Olive Oil Council
Cal Athena
California Olive Ranch
Dickson Napa Ranch
Lodi Farming, Inc.
Olio Nuevo
The Groves on 41
Santa Cruz Olive Tree Nursery
Yocha Dehe Wintun Nation
OPPOSITION :
None received
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