BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 746| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- UNFINISHED BUSINESS Bill No: SB 746 Author: Wolk (D), et al. Amended: 6/6/16 Vote: 21 PRIOR VOTES NOT RELEVANT SENATE AGRICULTURE COMMITTEE: 5-0, 8/17/16 (Pursuant to Senate Rule 29.10) AYES: Galgiani, Cannella, Berryhill, Pan, Wolk ASSEMBLY FLOOR: 78-0, 8/11/16 (Consent) - See last page for vote SUBJECT: Olive Oil Commission of California: voting members: chair of advisory committee SOURCE: Olive Oil Commission of California DIGEST: This bill changes 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. Assembly Amendments delete the Senate version of this bill relating to food safety and instead add the current language. ANALYSIS: Existing law: SB 746 Page 2 1)Establishes the Olive Oil Commission of California (OOCC) 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 OOCC Board of Directors. 2)Establishes the OOCC Advisory Committee to review issues affecting California olive oil and to advise the OOCC Board of Directors. 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. 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. 2)Requires the chair of the OOCC Advisory Committee to designate an alternate member to serve as Chair in the chair's absence. Background The 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. SB 746 Page 3 The OOCC Advisory Committee was created to provide an opportunity for smaller olive oil producers (processing less 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. 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 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 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 SB 746 Page 4 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. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: No According to the Assembly Appropriations Committee, negligible fiscal impact. SUPPORT: (Verified8/17/16) Olive Oil Commission of California (source) 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: (Verified8/17/16) None received 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. SB 746 Page 5 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. ASSEMBLY FLOOR: 78-0, 8/11/16 AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon NO VOTE RECORDED: Roger Hernández, Low Prepared by:Anne Megaro / AGRI. / (916) 651-1508 8/17/16 15:42:39 **** END ****