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 


           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  

           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.


          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  

          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  

          2)Requires the chair of the OOCC Advisory Committee to designate  
            an alternate member to serve as Chair in the chair's absence.


          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  


          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

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