BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 818
                                                                  Page  1

          Date of Hearing:   June 29, 2011

                          ASSEMBLY COMMITTEE ON AGRICULTURE
                              Cathleen Galgiani, Chair
                      SB 818 (Wolk) - As Amended:  June 13, 2011

           SENATE VOTE  :  40-0
           
          SUBJECT  :  Food labeling: olive oil.

           SUMMARY  :  Redefines California's olive oil labeling 
          requirements, making technical yet substantive changes, to 
          conform to United States (U.S.) labeling standards as outlined 
          in the U.S. Standards for Grades of Olive Oil and Olive-Pomace 
          oil published in the Federal Register that took effect on 
          October 25, 2010 (federal regulations).   Specifically,  this 
          bill  :   

          1)Adds a reference to the definition for flavored oil oils. 

          2)Restates the hierarchy of virgin olive oil grades to be from 
            highest to lowest and establishes categories of olive oils, 
            both edible and not fit for human consumption, without further 
            processing, rather than quality.

          3)Adds the hierarchy for olive-pomace oil grades to be from 
            highest to lowest of quality among olive-pomace oils and 
            establishes that these oil's grades to b in the following 
            categories:

             a)   Olive-pomace oil;

             b)   Refined olive-pomace oil; and,

             c)   Crude olive-pomace oil.

          4)Deletes current definitions of olive oil grades.

          5)Redefines olive oil grades for each category of oils, making 
            technical yet substantive changes, and referencing the federal 
            regulations.  Specific changes for each grade of oils are as 
            follows:

             a)   Adds to the grade of "Virgin olive oil" the terms 
               "without further processing," and changes each of the 








                                                                  SB 818
                                                                  Page  2

               following definitions as follows:

               i)     Deletes "extra virgin oil" reference to certified 
                 taste panel or taste panel operated by the University of 
                 California or California State University and adds "that 
                 has excellent flavor and odor expressed as a median of 
                 defects equal to zero and median of fruitiness greater 
                 than zero, has a free fatty acid content, and references 
                 the federal regulations.

               ii)    Adds to the "Virgin olive oil" definition the words, 
                 "that has reasonably good flavor and odor expressed as a 
                 medium of defects between zero and 2.5 and median of 
                 fruitiness greater than zero" and adds reference to 
                 federal regulations.

               iii)   Deletes the term "Ordinary virgin olive oil," and 
                 replaces it with "Virgin olive oil not fit for human 
                 consumption without further processing" and adds 
                 "sometimes known as "lampante virgin olive oil," poor 
                 flavor and odor expressed as a median of defects between 
                 2.5 and 6.0, or when the median of defects is less than 
                 or equal to 2.5 and the median of fruitiness is zero, and 
                 decreases the oleic acid from 3.3 grams to 2.0, and 
                 references the federal regulations.

             b)   Adds to the "Olive oil" definition the term "without 
               further processing," changes the reference from acidity to 
               fatty acid content and references the federal regulations.

             c)   Adds to the "Refined olive oil" definition a reference 
               for glyceridic structure as "basic glycerin-fatty acid 
               content" and adds reference to federal regulations.

             d)   Adds to the "Olive-pomace oil" category as "the product 
               that remains after the mechanical extraction of olive oil." 
                Redefines each oil definition in this category by 
               replacing "acidity" with "fatty acid" and referencing the 
               federal regulations.

          6)Creates, for purposes of this chapter, the following 
            definitions:

             a)   "Median of defects" means the flavor and odor of virgin 
               olive oil as the calculation of the median score from a 








                                                                  SB 818
                                                                  Page  3

               panel of tasters characterizes negative attributes, 
               including but not limited to, musty, fusty, wine-vinegary, 
               muddy-sediment and rancid.

             b)   "Median of fruitiness" means the calculation of the 
               median score from a panel of tasters that characterizes 
               virgin olive oil produced from olives, such as, but not 
               limited to, olive, apple, green, sweet grass, nutty, and 
               tomato.

             c)   "Panel of tasters" means the method of analyzing 
               organoleptic characteristics of virgin olive oil as defined 
               in federal regulations.

          7)Adds "olive-pomace oil" to be labeling requirements that meet 
            these definitions.

          8)Requires "virgin olive oil not fit for human consumption, 
            sometimes known as lampante virgin olive oil, to be refined 
            before consumption."

          9)Makes it unlawful to label "olive-pomace oil" as olive oil.

          10)Adds the federal regulations reference to the legislative 
            intent.

          11)Makes technical, conforming changes.

          12)Includes a new crime state mandate disclaimer.

           EXISTING LAW:

           1)Establishes labeling requirements for olive oils sold in 
            California, providing definitions and criteria, for specific 
            types of olive oils, to meet in order to use a specific label. 


          2)Requires the State Department of Public Health to enforce 
            various provisions of existing law regarding the manufacture, 
            blending, production, and sale of olive oil.

          3)Makes the violation of these provisions a crime.

          4)Defines olive oil to mean the edible oil obtained solely from 
            the fruit of the olive tree to the exclusion of oils obtained 








                                                                  SB 818
                                                                  Page  4

            using solvents or reesterification processes and of any 
            mixture with oils derived of other kinds except in the making 
            of flavored olive oil.

          5)Defines olive oil grades and provides that olive oil grades 
            are to be in a specified order.  

          6)Requires California labeled product from a specified area to 
            contain a minimum of 75% of that product from the area stated 
            on the label.

          Federal Regulations, published on March 4, 2010, redefined olive 
          oil definitions to more closely conform to the International 
          Olive Oil Counsel's standards.  These regulations became 
          effective on October, 24, 2010.

           FISCAL EFFECT  :   According to the Senate Appropriations 
          Committee, this bill had no significant additional state costs, 
          will not require appropriation of state funds, and will cause no 
          significant reduction in revenues (Senate Rule 28.8).

           COMMENTS  :   According to the Author, this legislation will place 
          California's olive oil standards in conformity with the recently 
          established new U.S. Department of Agriculture standards and it 
          will also correct technical errors in the original California 
          statute.  These revisions will facilitate in the marketing of 
          olive oil and olive-pomace oil by employee terms consistent with 
          the marketplace, require truth in labeling, and provide a basis 
          for enforcement by state or federal agencies if a product is 
          mislabeled.

          In 2008, the Assembly Committee on Agriculture and the 
          Legislature approved new labeling requirements for olive oil 
          sold in California.  This was in an effort to support 
          California's growing olive oil industry and to educate consumers 
          as to the differences in olive oil products.  Europe has had 
          olive oil standards in place for many years, as established by 
          the International Olive Counsel.   The U.S. standards had not 
          been updated since the mid 1940's.  

          In March 2010, the federal government published the changes to 
          the federal definition for olive oil, which are similar to the 
          European standards, but is permissive.  SB 818 adopts the 
          federal standard but continues to require olive oil labels to 
          meet the state statutes.








                                                                  SB 818
                                                                  Page  5


          California olive production accounts for 99% of the olive oil 
          produced in the U.S.  This industry is developing a rapid 
          following, similar to the California wine industry of the mid 
          1970's.  Unlike wine, olive oil does not need to age to develop 
          a complex tasting structure, quite the opposite.  The faster the 
          olive can be crushed and processed, then delivered to market, 
          the better quality it is.  Contrary to foreign oils which many 
          times take months and even years after pressing to reach 
          California consumers, the California product can take weeks.  
          There are some consumers that will go to suppliers on the day of 
          the crush to resupply themselves.

           PRIOR LEGISLATION  :  SB 634 (Wiggins), Chapter 694, Statutes of 
          2008, clarified the definition of olive oil, repealed previous 
          licensure provisions, conformed olive oil definitions, grades 
          and labeling requirements to international standards, authorized 
          the addition of vitamin E to specified olive oil, and permitted 
          a consumer to re-use a clean olive oil container, can, or drum. 

          AB 2824 (Berryhill), Chapter 695, Statutes of 2008, clarified 
          the definitions of olive oil similar to SB 634 but was chaptered 
          out by the provisions of SB 634 (Wiggins), Chapter 694, Statutes 
          of 2008. 

          SB 920 (Thompson), Chapter 543, Statutes of 1997, specified that 
          olive oil labeled as California olive oil must be made from 
          California olives.  If the olive oil is labeled as coming from a 
          viticultural area, as specified in federal law, 75% of the oil 
          must be from olives grown in that viticultural area.  Permits 
          the blending of olive oil if the contents and proportions of the 
          blend are prominently displayed on the label. 

          SB 1666 (Thompson), Chapter 530, Statutes of 1996, established a 
          working group of state and industry officials to make 
          recommendations to the Legislature concerning labeling standards 
          for olive oil.  

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Boundary Bend Limited
          California Olive Oil Council
          Carriage Estate Olive Oil








                                                                  SB 818
                                                                  Page  6

          Corto Olive
          D'Olive Olive Oil
          Frate Sole Olive Oil
          Il Fiorello Olive Oil Company
          McEvoy of Marin, LLC
          Rancho Paloma
          Rosenthal Olive Ranch
          Tallgrass Land and Cattle Company
          Yocha Dehe Wintun Nation
          7 individuals
           
            Opposition 
           
          None on file.


           Analysis Prepared by  :    Jim Collin / AGRI. / (916) 319-2084