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BILL NUMBER: AB 83	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 28, 2003
	AMENDED IN ASSEMBLY  MARCH 13, 2003

INTRODUCED BY   Assembly Members Corbett and Firebaugh
   (Coauthors:  Assembly Members Chan,  Chu,  Goldberg,
Hancock,  Harman,  Jackson, Koretz, Laird, Lieber,
Mullin, and Yee)
   (Coauthors:  Senators Kuehl, Romero, and Soto)

                        JANUARY 6, 2003

   An act to add Article 12 (commencing with Section 116752) to
Chapter 4 of Part 12 of, and to repeal Article 12 (commencing with
Section 111070) of Chapter 5 of Part 5 of, Division 104 of the Health
and Safety Code, relating to drinking water.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 83, as amended, Corbett.  Bottled water.
   Existing law, commonly referred to as the California Safe Drinking
Water Act, imposes various functions and duties on the State
Department of Health Services with respect to the administration of
the act, and requires public water systems to comply with recommended
public health levels for contaminants in drinking water established
by the department.  Existing law further requires public water
systems, among other things, to have an approved emergency
notification plan, issue consumer confidence reports, and comply with
annual inspections.
   Existing law, the Sherman Food, Drug, and Cosmetic Law, provides
for the licensure and regulation by the department of specified
persons engaged in certain activities relating to bottled, vended,
hauled, and processed water.
   This bill would transfer the provisions relating to the licensure
and regulation of persons engaged in the above bottled water
activities from the Sherman Food, Drug, and Cosmetic Law to the
California Safe Drinking Water Act.  The bill would require bottled
water licensees to comply with provisions similar to those imposed on
public water systems regarding emergency notification plans,
consumer confidence reports, and annual inspections. Failure to
comply with the inspection provisions would be a misdemeanor.  The
creation of a new crime would impose a state-mandated local program.

   This bill, among other things, would revise the annual license fee
schedule and would create the Safe Bottled and Vended Water Account
in the General Fund, comprised of these fees, from which moneys would
be expended, upon appropriation by the Legislature, for purposes of
providing funds necessary to administer the above provisions.  It
would also require the labeling on bottled water sold at retail or
wholesale in a plastic beverage container to include specified
information, and would make various technical, nonsubstantive
changes.
   Existing law provides that a violation of certain provisions under
the California Safe Drinking Water Act relating to fraud is
punishable as a misdemeanor.
   Since a violation of these fraud provisions by bottled water
licensees would also be a misdemeanor, this bill would expand the
definition of a crime, thereby imposing a state-mandated local
program.
  The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) The California Safe Drinking Water Act establishes a statutory
framework for the regulation of the quality of "tap water" in the
state through drinking water quality standards, requirements for
consumer reporting of drinking water quality, and regulatory
oversight by the State Department of Health Services.
   (b) Because bottled water and vended water products are regulated
as food products rather than drinking water, many of the statutory
protections for consumers contained in the California Safe Drinking
Water Act that apply to tap water provided by public water systems do
not apply to bottled water products, creating a lack of consumer
certainty as to the contents of bottled water products.
   (c) In order to ensure consistent state oversight of drinking
water and to protect public health and inform California citizens, it
is necessary to renumber existing statutes, and consolidate existing
and proposed new statutes related to bottled and vended water into
the California Safe Drinking Water Act.
   (d) The general public perception is that bottled water and vended
water products are safer, or are of higher quality, than tap water.
However, the water quality requirements for bottled water are, in
many cases, less stringent than tap water.
   (e) Bottled water products are not subject to water quality "right
to know" consumer reporting requirements such as consumer confidence
report requirements, resulting in a lack of reliable and credible
information for consumers concerning the contents of bottled water
and vended water products.
   (f) The existing levels of fees for the bottled water regulatory
program are not sufficient to fund oversight of bottled water and
vended water products when compared to funding that is generated by
drinking water program regulatory fees paid by public water systems.

   (g) It is necessary to enact legislation to improve consumer
protection and ensure that the consumers of bottled water are
afforded the same water quality "right to know" protections and
regulatory oversight of bottled water products as those established
for tap water.
  SEC. 2.  Article 12 (commencing with Section 111070) of Chapter 5
of Part 5 of Division 104 of the Health and Safety Code is repealed.

  SEC. 3.  Article 12 (commencing with Section 116752) is added to
Chapter 4 of Part 12 of Division 104 of the Health and Safety Code,
to read:

      Article 12.  Bottled, Vended, Hauled, and Processed Water

   116752.  (a) "Bottled water" means any water that is placed in a
sealed container at a water-bottling plant to be used for drinking,
culinary, or other purposes involving a likelihood of the water being
ingested by humans.  Bottled water shall not include water packaged
with the approval of the department for use in a public emergency.
   (b) "Vended water" means any water that is dispensed by a
water-vending machine or retail water facility, or water from a
private water source, or other water as described in Section 116756.4
that is not placed by a bottler in sealed containers, and that is
dispensed by a water-vending machine, retail water facility, water
hauler, or any other person or facility for drinking, culinary, or
other purposes involving a likelihood of the water being ingested by
humans.  "Vended water" does not include water from a public water
system that has not undergone additional treatment.  Water sold
without further treatment is not "vended water" and shall be labeled
in accordance with Section 116756.4.
   (c) "Water-bottling plant" means any facility in which bottled
water is produced.
   (d) A "water-vending machine" means any self-service device that,
upon insertion of a coin, coins, or token, or upon receipt of payment
by any other means, dispenses a unit volume of water to be used for
drinking, culinary, or other purposes involving a likelihood of the
water being ingested by humans.
   (e) (1) "Water hauler" means any person who hauls water in bulk by
any means of transportation if the water is to be used for drinking,
culinary, or other purposes involving a likelihood of the water
being ingested by humans.
   (2) As used in this subdivision, "in bulk" means containers having
capacities of 250 gallons or greater.
   (f) "Retail water facility" means any commercial establishment
where vended water is sold, and placed in customer's containers, or
placed in containers sold or given to customers who come to the
establishment to obtain water.
   (g) "Private water source" means a privately owned source of
water, other than a public water system, that is used for bottled or
vended water and meets the requirements of an approved source for
bottled water as defined in Section 129.3 of Title 21 of the Code of
Federal Regulations.
   (h) "Bottled water distributor" means any person, other than an
employee or representative of a bottled water plant, who delivers
bottled water directly to customers.
   116752.2.  (a) Any person who processes, packages, distributes,
transfers, or stores bottled water or vended water shall comply with
the good manufacturing practices described in Part 129 of Title 21 of
the Code of Federal Regulations.
   (b) Prior to bottling or vending water, the water shall be
subjected to filtration and effective germicidal treatment by ozone,
ultraviolet, carbon dioxide, or an equivalent disinfection process
approved by the department, except that the requirements for
filtration and germicidal treatment shall not apply to mineral water
as defined in, and from a source that is subject to, the council
directive of the European Economic Community pertaining to natural
mineral waters, dated July 15, 1980, or that is subject to any other
natural mineral water standard in the country of origin that
prohibits filtration and germicidal treatment, so long as both of the
following conditions are met:
   (1) The source and product are certified by the responsible
authority in the country of origin as complying with microbiological
standards at least equal to the standards of this article.
   (2) The product complies with microbiological standards of this
article.
   (c) Bottled or vended water that originates from a surface water
source that is not protected from surface contamination shall be
subjected to ozonation, filtration, or another effective process that
removes or destroys the cysts of the parasite Giardia lamblia.  For
the purposes of this section, a spring house, catchment basin,
storage tank, or bore hole adjacent to a natural spring water source
is not a surface water source.
   (d) Ollas or other water-holding dispensers, both refrigerated and
nonrefrigerated, water-vending machines, and water dispensers in
retail water facilities, shall be examined for cleanliness each time
they are serviced by the distributor, bottler, retail water facility,
or water-vending machine operator.  When necessary, these dispensers
shall be sanitized according to the methods described in Part 129 of
Title 21 of the Code of Federal Regulations.
   (e) Sanitary operations, equipment procedures, and process
controls used in the treatment, storage, transport, or dispensing of
water at a retail water facility shall comply with the good
manufacturing practices described in the following provisions of Part
129 of Title 21 of the Code of Federal Regulations:  subdivisions
(a) to (c), inclusive, of Section 129.37; Section 129.40; and
subdivisions (a), (c), (d), and (h) of Section 129.80.
   (f) Sanitary operations, equipment, procedures, and process
controls used in the treatment, storage, transfer, transport, or
dispensing of water by water haulers, shall comply with the good
manufacturing practices described in the following provisions of Part
129 of Title 21 of the Code of Federal Regulations:  subdivisions
(a) and (b) of Section 129.37; Section 129.40; and subdivisions (a),
(c), (d), and (h) of Section 129.89.
   (g) The design and construction of wells, bore holes, catchment
basins, spring houses, storage tanks, or other water-contact
equipment used by private water sources shall comply with the
requirements of the local regulatory authority.  Sanitary operations,
equipment procedures, and transfer controls used in the treatment,
storage, transfer, or dispensing of water by private water source
operators shall comply with the good manufacturing practices
described in the following provisions of Part 129 of Title 21 of the
Code of Federal Regulations:  subdivision (a) of Section 129.37;
Section 129.40; and subdivisions (a), (c), (d), (g), and (h) of
Section 129.80.
   (h) Bottled water may be processed through lines used also for
other food products under the following conditions:
   (1) Process lines, including storage tanks and associated
equipment, shall be used exclusively for the production of bottled
water, except for filling equipment, that may be used also for
filling other food products.
   (2) Before being used for the bottling of water, filling equipment
that is designed to be cleaned in-place and that is used for filling
other food products shall be thoroughly cleansed and sanitized
in-place in accordance with the manufacturer's specifications and in
compliance with Section 129.80 of Title 21 of the Code of Federal
Regulations and the supplementary procedures contained in paragraphs
(3) to (7), inclusive.
   (3) Immediately following completion of filling operations for any
other food product other than water, the filler shall be thoroughly
rinsed internally and externally with potable water.
   (4) In accordance with filler manufacturer's instructions, any
parts that are not designed to be cleaned in-place shall be
disassembled and removed.  All of these parts shall be cleansed and
sanitized prior to reassembly using appropriate cleansing and
sanitizing procedures, as specified in subdivisions (c) and (d) of
Section 129.80 of Title 21 of the Code of Federal Regulations.
   (5) All surfaces of the filler that do not contact food products
shall be cleaned manually so as to render all surfaces clean and free
of any residues.
   (6) The filler shall be prepared and all appropriate connections
made in accordance with the filler manufacturer's instructions to
place the filler in the clean-in-place mode.  The following
procedures shall be followed:
   (A) An alkaline cleaning solution of appropriate strength shall be
recirculated through the filler to provide effective cleaning of all
product contact surfaces, with a minimum recirculation time of 20
minutes at a temperature between 140 and 170 degrees Fahrenheit.
   (B) The cleaning solution shall be drained and followed with a
potable water rinse-to-drain for the removal of all residual cleaner
alkalinity.  This step may be supplemented by the application of an
acidified rinse prior to the potable water rinse in order to
neutralize any residual alkalinity on product contact surfaces.
   (7) Following reassembly of all parts to place the filler into the
product mode and just prior to bottling water, the filler shall be
sanitized in-place in accordance with procedures specified in
subdivision (d) of Section 129.80 of Title 21 of the Code of Federal
Regulations.
   (8) Any alternate cleaning, rinsing, or sanitizing operations or
processes not described in this section shall be approved in writing
by the department.
   (i) Bottled water and bulk waters sold at retail shall not contact
equipment, lines, tanks, or vehicles used for processing, packaging,
holding, or hauling of any nonfood product.
   116752.4.  The quality and labeling standards requirements for
bottled water and vended water, including mineral water, shall
include all standards prescribed by Section 165.110 of Title 21 of
the Code of Federal Regulations. In addition, bottled water and
vended water, when bottled, shall comply with the following quality
standards and any additional quality standards adopted by regulation
that the department determines are reasonably necessary to protect
the public health:
   (a) Bottled water and vended water shall meet all maximum
contaminant levels set for public drinking water that the department
determines are necessary or appropriate so that bottled water may
present no adverse effect on public health.  New or revised allowable
levels or monitoring provisions adopted for bottled water by the
United States Food and Drug Administration under the federal Food,
Drug and Cosmetic Act (21 U.S.C. Sec. 301 and following) that are
more stringent than the state requirements for bottled water are
incorporated into this chapter and are effective on the date
established by the federal provisions unless otherwise established by
regulations of the department.
   (b) Bottled and vended water shall not exceed 10 parts per billion
of total triahalomethanes or five parts per billion of lead unless
the department establishes a lower level by regulation.
   (c) Bottled and vended water shall contain no chemicals in
concentrations that the United States Food and Drug Administration or
the department has determined may have an adverse effect on public
health.
   116752.5.  (a) When a licensee has not complied with any maximum
contaminant level set for public drinking water standards, as
provided in subdivision (a) of Section 116752.4, when a monitoring
requirement specified by the department is not performed by a
licensee, or when a licensee fails to comply with the conditions of
any variance, the licensee shall notify the department and shall give
notice to consumers of that fact in the manner prescribed by the
department.  When a variance is granted, the licensee shall give
notice to consumers of that fact.
   (b) When a licensee determines that a significant rise in the
bacterial count of water has occurred in its bottled or vended water,
the licensee shall provide, at its own expense, a report on the rise
in bacterial count of the water, together with the results of an
analysis of the water, within 24 hours to the department and, where
appropriate, to the local health officer.
   (c) When the department receives the information described in
subdivision (b) and determines that it constitutes an immediate
danger to health, the department shall immediately notify the
licensee to implement the emergency notification plan required by
this article.
   (d) In the case of a failure to comply with any maximum
contaminant level set for public drinking water that represents an
imminent danger to the health of consumers, the licensee shall notify
consumers as provided in the approved emergency notification plan.
   (e) In addition, the same notification requirement shall be
required in any instance in which the department or the local health
officer recommends to the licensee that it notify its customers to
avoid internal consumption of the bottled or vended water and to use
an alternative source of drinking water due to a chemical
contamination problem that may pose a health risk.
   (f) The content of the notices required by this section shall be
approved by the department.  Notice shall be repeated at intervals,
as required by the department, until the department concludes that
there is compliance with its standards or requirements.  Notices may
be given by the department.
   (g) In any case where consumer notification is required by this
section because a contaminant is present in bottled or vended water
at a level in excess of a maximum contaminant level set for public
drinking water, the notification shall include identification of the
contaminant, information on possible effects of the contaminant on
human health, and information on specific measures that should be
taken by persons or populations who might be more acutely affected
than the general population.
   116752.6.  (a) No person may operate a facility licensed pursuant
to Section 116754 without an emergency notification plan that has
been submitted to, and approved by, the department.  The emergency
notification plan shall provide for immediate notice to the licensee'
s consumers of any significant rise in the bacterial count of water
or other failure to comply with any maximum contaminant level set for
public drinking water that represents an imminent danger to the
health of consumers.
   (b) No license or variance may be issued or amended under this
article until an emergency notification plan has been approved by the
department.
   (c) The department shall adopt regulations to implement this
section. The regulations may provide for the exclusion of licensees
from the requirements of this section when, in the judgment of the
department, the exclusion will best serve the public interest.
   116752.8.  Polycarbonate resins manufactured after January 1,
1988, and intended for use in fabricating containers for water
products defined in this article shall not contain in excess of three
parts per million residual methylene chloride or in excess of 200
parts per million residual monochlorobenzene unless the department
establishes a lower level by regulation.  For the purpose of
monitoring compliance with this section, the concentration of
methylene chloride and monochlorobenzene shall not exceed one part
per billion in water.  "Polycarbonate resins" means the substances
defined by Section 177.1580 of Title 21 of the Code of Federal
Regulations except as modified by this section.
   116753.  Any owner or operator of a water-vending machine or other
device from which any operator or customer dispenses vended water
shall comply with the following standards of design, construction,
and sanitation and any additional standards adopted by regulation
that the department determines are reasonably necessary to protect
the public health.  The water-vending machines or devices shall do
all of the following:
   (a) Comply with the construction and performance standards
established by the department or by an independent authority approved
by the department.
   (b) Be designed and constructed to permit easy cleaning and
maintenance of all exterior and interior surfaces.
   (c) Have all parts and surfaces that come into contact with the
water constructed of approved, corrosive-resistant, and nonabsorbent
material capable of withstanding repeated cleaning and sanitizing
treatment.
   (d) Have a recessed or guarded corrosion-resistant dispensing
spout.
   (e) Be designed so that all treatment of the vended water by
distillation, ion exchange, filtration, ultraviolet light, reverse
osmosis, mineral addition, or any other acceptable process is done in
an effective manner.
   (f) Have an effective system of handling drip, spillage, and
overflow of water.
   (g) Have a backflow prevention device approved by the department
for all connections with the water supply.
   (h) Dispense water disinfected by ultraviolet light or other
method approved by the department prior to delivery into the customer'
s container.
   (i) Be equipped with monitoring devices designed to shutdown
operation of the machine when the disinfection unit fails to
function.  Alternatively, machines shall be monitored daily at
startup and manually shutdown whenever the unit fails to function.
   (j) Be equipped with either a self-closing, tight-fitting door on
the vending compartment, or an enclosed vending spout in order to
protect the vending spout when the water-vending machine is not in
use.  As an alternative, water-vending machines or other
water-dispensing devices may be enclosed in a room with tight-fitting
walls, ceilings, and one of the following:  a self-closing door, an
effective air screen device, or an alternative effective device
approved by the department.
   (k) Comply with the American Water Works Association (AWWA)
specifications for granular activated carbon if used in the treatment
of potable water (AWWA B604-74).
   (l) Be maintained in a clean and sanitary condition, free from
dirt and vermin.
   (m) Use a state approved and regulated public water supply or
private water source.
   (n) Be located in an area that can be maintained in a clean
condition and in a manner that avoids insect and rodent harborage.
   (o) Be equipped with monitoring devices designed to shut down the
labeled purified water delivery system if treatment of water by the
machine does not result in a total dissolved solids content of less
than 10 milligrams per liter in the purified water.  Alternatively,
machines shall be monitored daily at startup and manually shutdown
whenever the total dissolved solids content exceeds 10 milligrams per
liter in the purified water.
   116753.2.  It shall be unlawful to operate a water-bottling plant,
water-vending machine, retail water facility, or private water
source in violation of the minimum health standards of this article.

   116753.4.  It is unlawful for any person to operate a water
vending machine in this state that does not satisfy the minimum
standards prescribed by this article for the design, construction,
and sanitation of water-vending machines.
   116753.6.  The department, upon the request of a local health
officer, may authorize the local health officer to implement and
enforce those provisions of this article that relate to water-vending
machines, retail water facilities, and water haulers under the terms
and conditions specified by the department.
   116753.8.  No water-vending machine may be used in this state that
does not at least satisfy the minimum standards adopted by the
department.
   116753.9.  The department shall require that each water-vending
machine, retail water treatment plant, water hauler vehicle and
facility, and private water source be maintained in a clean and
sanitary condition at all times.
   116754.  (a) No person may operate a water-bottling plant or a
private water source, or be a bottled water distributor in this
state, except pursuant to a license issued by the department.  If a
person has a valid water-bottling plant license issued by the
department, additional license fees for a private water source
operator, a retail water facility operator, a water hauler, or a
bottled water distributor based and operating at the same address,
shall not be required.
   (b) No person may own or operate a water-vending machine or a
retail water facility or be a water hauler, except pursuant to a
license issued by the department or a permit issued by a local health
department.
   (c) It shall be unlawful for any person to bottle, collect, treat,
hold, distribute, haul, vend, or sell bottled water or vended water,
operate a retail water facility, or operate a private water source
without the license as required by this article.  Any bottled water
or vended water dispensed by a retail water facility or a private
water source that is not licensed in compliance with this article is
misbranded and may be embargoed pursuant to subdivision (e).
   (d) It shall be unlawful for a water bottler, distributor, vendor,
retail water facility operator, or private water source operator to
sell or otherwise distribute water that is unsafe for use, as
provided in Section 110445, or that is adulterated, as provided in
Section 110545, 110560, or 110565, or that is misbranded as provided
in Article 6 (commencing with Section 110660) of Chapter 5 of Part 5.

   (e) For the purposes of enforcing this section, water may be
embargoed pursuant to Section 111860 in its immediate container,
well, spring, spring vault, holding tank, water hauling vehicle,
retail water treatment system, spigot, or pipe if there is reasonable
cause to believe that it is adulterated.
   (f) Any retail water facility, water vendor, or water hauler that
violates this article may be subjected to the same penalty and
enforcement procedure provided for violation of this article by a
water-bottling plant.
   116754.1.  No bottled water produced in an out-of-state bottling
plant may be sold or distributed within this state unless either the
out-of-state bottler or the distributor shall have first obtained a
bottler's or distributor's license.
   116754.2.  (a) Each category 1 water bottling plant owner or
operator, category 2 water bottling plant owner or operator,
water-vending machine owner or operator, water hauler, retail water
facility operator, private water source operator, and bottled water
distributor shall reimburse the department for actual costs incurred
by the department for conducting those activities mandated by this
article relating to the issuance of licenses, inspections,
monitoring, surveillance, and water quality evaluation that relate to
that specific license.  The amount of reimbursement shall be
sufficient to pay, but shall not exceed, the department's actual cost
in conducting these activities.
   (b) For purposes of determining the fees provided for in
subdivision (a), the department shall maintain a record of its actual
costs for pursuing the activities specified in subdivision (a)
relative to each licensee required to pay the fees.  The fee charged
each licensee shall reflect the department's actual cost of
conducting the specified activities.
   (c) The department shall submit an invoice for cost reimbursement
for the activities specified in subdivision (a) to the licensee no
more than twice a year.
   (d) (1) The department shall submit one estimated cost invoice to
the licensee.  This invoice shall include the actual hours expended
during the first six months of the fiscal year.  The hourly cost rate
used to determine the amount of the estimated cost invoice shall be
the rate for the previous fiscal year.
   (2) The department shall submit a final invoice to the licensee
prior to October 1 following the fiscal year that the costs were
incurred.  The invoice shall indicate the total hours expended during
the fiscal year, the reasons for the expenditure, the hourly cost
rate of the department for the fiscal year, the estimated cost
invoice, and payments received.  The amount of the final invoice
shall be determined using the total hours expended during the fiscal
year and the actual hourly cost rate of the department for the fiscal
year.  The payment of the estimated invoice, exclusive of late
penalty, if any, shall be credited toward the final invoice amount.
   (3) Payment of the invoice issued pursuant to paragraphs (1) and
(2) shall be made within 90 days of the date of the invoice.  Failure
to pay the amount of the invoice within 90 days shall result in a
10-percent late penalty that shall be paid in addition to the
invoiced amount.
   (e) Each owner or operator of any water-bottling plant, retail
water facility, or private water source, each water hauler in
California, and each bottler or distributor of water bottled
out-of-state shall make application for a license on forms provided
by the department.  Applications shall be
                      submitted for each calendar year.
   (f) Each water-vending machine owner or operator shall make
application each calendar year for a license for all machines on
forms provided by the department.  A decal or seal provided by the
department indicating a license fee has been paid shall be affixed in
a prominent place to each water-vending machine in service.
   116754.3.  (a) Each licensee shall reimburse the department for
actual costs incurred by the department for any of the following
enforcement activities related to that licensee:
   (1) Preparing, issuing, and monitoring compliance with an order or
a citation.
   (2) Preparing and issuing public notification.
   (b) The department shall submit an invoice for these enforcement
costs to the licensee that requires payment prior to September 1 of
the fiscal year following the fiscal year in which the costs were
incurred.  The invoice shall indicate the total hours expended, the
reasons for the expenditure, and the hourly cost rate of the
department.  The costs set forth in the invoice shall not exceed the
total actual costs to the department of enforcement activities
specified in this section.
   (c) As used in this section, "enforcement costs" do not include
"litigation costs" pursuant to Section 116754.5.
   (d) The department shall not be entitled to enforcement costs
pursuant to this section if either a court or the department
determines that enforcement activities were in error.
   (e) The maximum reimbursement, pursuant to this section, by a
licensee during any fiscal year shall not exceed one thousand dollars
($1,000), or twice the maximum for that licensee, as set forth in
subdivision (b) of Section 116754.2, whichever is greater.
   116754.4.  (a) Each licensee that requests a variance pursuant to
subdivision (e) of Section 116756 shall reimburse the department for
actual costs incurred by the department in processing the request.
   (b) The department shall submit an invoice to the licensee prior
to October 1 of the fiscal year following the fiscal year in which
the department's decision was rendered with respect to the request
for a variance. The invoice shall indicate the number of hours
expended by the department and the department's hourly cost rate.
Payment of the fee shall be made within 120 days of the date of the
invoice.  The department may revoke any approval of a request for a
variance for failure to pay the required fees.
   116754.5.  In any civil court action brought to enforce this
article, the prevailing party or parties shall be awarded litigation
costs, including, but not limited to, salaries, benefits, travel
expenses, operating equipment, overhead, other litigation costs, and
attorney's fees, as determined by the court.  Litigation costs
awarded to the department by the court shall be deposited into the
Safe Bottled and Vended Water Account established pursuant to Section
116754.6.
   116754.6.  (a) Notwithstanding Section 116590, all funds received
by the department pursuant to this article shall be deposited into
the Safe Bottled and Vended Water Account that is hereby established
in the General Fund.  Funds in the Safe Bottled and Vended Water
Account may not be expended for any purpose other than as set forth
in this article.  All moneys collected by the department pursuant to
Sections 116754.2 to 116754.5, inclusive, shall be deposited into the
Safe Bottled and Vended Water Account for use by the department,
upon appropriation by the Legislature, for the purposes of providing
funds necessary to administer this article.
   (b) The department's hourly cost rate to determine the
reimbursement for actual costs pursuant to Sections 116754.2,
116754.3, and 116754.4 shall be based upon the department's costs for
salaries, benefits, travel expenses, operating equipment,
administrative support, and overhead.
   (c) Fees assessed pursuant to this article shall not exceed actual
costs to the department.
   (d) The department shall develop a time accounting standard
designed to do all of the following:
   (1) Provide accurate time accounting.
   (2) Provide accurate invoicing based upon hourly rates comparable
to private sector professional classifications and comparable rates
charged by other states for comparable services.  These rates shall
be applied against the time spent by the actual individuals who
perform the work.
   (3) Establish work standards that address work tasks, timing,
completeness, limits on redirection of effort, and limits on the time
spent in the aggregate for each activity.
   (4) Establish overhead charge-back limitations, including, but not
limited to, charge-back limitations on charges relating to
reimbursement of services provided to the department by other
departments and agencies of the state, that reasonably relate to the
performance of the function.
   (5) Provide appropriate invoice controls.
   116754.7.  (a) The department may deny any license application or
revoke or suspend any license issued for cause.  The department shall
inform the person of any denial, revocation, or suspension in
writing, stating with particularity reasons for the denial,
revocation, or suspension.
   (b) As used in this section, "cause" means a violation of any
provision of this article or any regulation adopted pursuant to this
article.
   116754.8.  The department shall charge and collect a fee for each
department evaluation required to issue a new license for a
water-vending machine model or a retail water facility to determine
compliance with standards established by this article.  The fee shall
be three hundred dollars ($300) and shall be adjusted annually as
required by Section 100425.
   116755.  (a) The department shall require each bottler,
distributor, or vendor of bottled water, each owner or operator of
any water-vending machine, and each water hauler, retail water
facility operator, private water source operator, and applicant for a
license, to test for all substances necessary to establish
conformance to standards adopted pursuant to Section 116752.4 at the
times and frequencies the department may reasonably establish.
   (b) Each product dispensed by a water-vending machine or a retail
water facility shall be sampled and analyzed for coliform bacteria at
least once every six months.  The analysis shall be submitted to the
department indicating whether the water is pure and wholesome.
Analysis of vended water or water from retail water facilities shall
be submitted to the local health officers if the local health
officers are authorized by the department pursuant to Section
116753.6.
   (c) Purified waters from retail water facilities shall be analyzed
by the operator for dissolved solids by conductivity measurement not
less frequently than once every seven days.
   (d) Purified water from vending machines shall be analyzed by the
operator for the dissolved solids by conductivity measurement each
time the vending machine is serviced.
   116755.2.  (a) All sources of bottled water, vended water, and
water dispensed by a retail water facility shall be monitored
annually for the presence of volatile organic compounds of potential
public health concern, as specified by the United States
Environmental Protection Agency in Tables 2 and 14 contained in
Volume 50 of the Federal Register on pages 46904, 46923, and 46924 on
November 13, 1985, or as reasonably specified by the department as a
condition of licensure.
   (b) In lieu of source water monitoring required by this section, a
water bottler, water vendor, or a retail water facility may document
that the source monitoring required by this section is conducted by
another entity approved by the department, or may comply with the
treatment requirements of subdivision (c).
   (c) Detection in the source water of a volatile organic compound,
except trihalomethanes, for which source monitoring is required
pursuant to this section shall be followed immediately by a program
of periodic monitoring by the water bottler, water vendor, or retail
water facility to confirm the presence or absence in the source water
of the volatile organic compound.  If the volatile organic compound
is confirmed to be present in the source water it shall be treated
using granular activated carbon treatment or an equivalent treatment
operated in accordance with good manufacturing practices as provided
in Section 129.80 of Title 21 of the Code of Federal Regulations
until the time that the concentration of the volatile organic
compound does not exceed either one part per billion, or any United
States Environmental Protection Agency or United States Food and Drug
Administration level for drinking water, or a maximum contaminant
level established by the department for bottled water.
   (d) The department may exempt any water bottler, water vendor, or
retail water facility from the monitoring requirements of this
section for any source based on a showing satisfactory to the
department that the source (1) does not contain the volatile organic
compound for which monitoring is required and (2) is not vulnerable
to contamination by the volatile organic compound because for surface
water sources the compounds are not applied, manufactured, stored,
disposed, or shipped upstream, and for groundwater sources, the
compounds are not applied, manufactured, stored, disposed, or shipped
in the groundwater recharge basin.
   116755.4.  (a) As a condition of licensure pursuant to Section
116754, each licensee shall annually prepare a consumer confidence
report and make that report available to each customer as required
under this article, and to the department, which shall make the
information available on its Web site.  The report shall include all
of the following information:
   (1) The source of the bottled or vended water.
   (2) A brief and plainly worded definition of the term "maximum
contaminant level," "primary drinking water standard," and "public
health goal."
   (3) If any regulated contaminant is detected in the bottled or
vended water during the past year, the report shall include all of
the following information:
   (A) The level of the contaminant found in the bottled or vended
water, and the corresponding public health goal and primary drinking
water standard for that contaminant.
   (B) Any violations of the primary drinking water standard that
have occurred as a result of the presence of the contaminant in the
bottled or vended water and a brief and plainly worded statement of
health concerns that resulted in the regulation of the contaminant.
   (C) Brief and plainly worded statements of health effects that
resulted in the regulation of a contaminant for any contaminant for
which a public water system is required by state or federal law to
include a statement of health effects upon detection of that
particular contaminant.
   (D) The licensee's address and telephone number to enable the
customer to obtain further information concerning contaminants and
potential health effects.
   (4) Information on the levels of unregulated contaminants, if any,
for which monitoring is required pursuant to state or federal law or
regulation.
   (5) Disclosure of any variances, pursuant to subdivision (e) of
Section 116756, granted to the licensee and the basis upon which the
variance was granted.
   (b) The report shall include information in Spanish expressing the
importance of the report or offering additional information.  In
addition, for each non-English-speaking group other than Spanish that
exceeds 10 percent of the state's population based upon the most
current United States Census data, the report shall include
information in the appropriate languages expressing the importance of
the report or offering additional information.  The department shall
make the final determination of the appropriate multilingual
requirements of the report.  
   (c) For purposes of this section, "licensee" means an owner or
operator of any water-bottling plant, a bottled water distributor or
vendor, an owner or operator of any water vending machine, a retail
water facility operator, and a private water source operator. 
   116755.6.  (a) Each licensee shall establish a toll-free telephone
hotline for consumers to request additional information regarding
water quality.  The toll-free telephone hotline shall have
multilingual capabilities and shall allow consumers to request
complete information regarding the quality of the licensee's bottled
or vended water product or products, including, but not limited to,
all of the following:
   (1) Consumer confidence reports prepared pursuant to Section
116755.4.
   (2) Publicly available water quality information for brands of
bottled water.
   (3) Information from local health departments regarding the
quality of vended water, if applicable.
   (b) If a licensee has a Web site presence, it shall provide active
linkages on its Web site to the information available on the
toll-free telephone hotline, as required by this section.
   116755.8.   Notwithstanding any other provision of this article,
the department may require any bottler, distributor, or vendor of
bottled water, any owner or operator of a water-vending machine, any
water hauler, any retail water facility operator, any private water
source operator, or any applicant for a license to test and submit
results to the department for any substance, including organic
chemical contaminants, at any time that the department believes the
substance may be present in the water source and threaten the public
health.
   116756.  (a) Upon a determination by the department that a
particular water source is subject to potential contamination, the
department shall notify the bottler, distributor, or vendor of
bottled water, the owner and operator of any water-vending machine,
any water hauler, any retail water facility operator, or any private
water source operator of the specific contaminants or class of
contaminants that pose a potential health risk.
   (b) Within 90 days after notification by the department, the
bottler, distributor, or vendor of bottled water, the owner and
operator of any water-vending machine, any water hauler, any retail
water facility operator, or any private water source operator shall
conduct an analysis of the water source and submit the results of the
analysis to the department.
   (c) If evidence of contamination is found, the department may, by
order, require the bottler, distributor, or vendor of bottled water,
the owner and operator of any water-vending machine, any water
hauler, any retail water facility operator, or any private water
source operator to conduct a source and product water analysis for
the contaminants of concern in accordance with conditions specified
by the department.  The water analysis shall be conducted and
reported on an annual basis, unless the department finds that
reasonable action requires either more frequent or less frequent
analysis.
   (d) The department may, by order, require the bottler,
distributor, or vendor of bottled water, the owner and operator of
any water-vending machine, any water hauler, any retail water
facility operator, or any private water source operator to reduce or
eliminate the concentration of any chemical that the department
determines may have an adverse effect on public health.  Until an
enforceable standard has been established for a chemical that may
have an adverse effect on human health, the department may require
treatment techniques to reduce the concentration of the contaminants
that require treatment, in the department's judgment, to prevent
known or anticipated adverse effects on the health of persons.  The
treatment system shall be designed to meet criteria designated by the
department or by an independent authority approved by the
department.
   (e) The department may grant variances from the requirements of
subdivision (d), if the bottler, distributor, or vendor of bottled
water, the owner and operator of any water-vending machine, any water
hauler, any retail water facility operator, or any private water
source operator demonstrates either of the following:
   (1) That the prescribed treatment technique is not necessary to
protect the health of consumers because its water source is not
subject to, nor is it likely to be subject to, significant chemical
contamination.
   (2) An alternative treatment technique is at least as efficient in
lowering the level of contaminants to be controlled.
   116756.2.  All testing of bottled water, bottled water sources,
water distributed by water haulers, water from retail water facility,
and water from vending machines shall be done by laboratories
approved by the department, laboratories certified by the United
States Environmental Protection Agency, laboratories certified by the
primary enforcement authority in states that have been granted
primacy by the United States Environmental Protection Agency, or
laboratories certified (accredited) by a third-party organization
acceptable to a primacy state.
   116756.4.  (a) Labeling and advertising of bottled water and
vended water shall conform with this article, Chapter 4 (commencing
with Section 110290) of Part 5, and applicable portions of Part 101
of Title 21 of the Code of Federal Regulations.
   (b) Each container of bottled water sold in this state, each
water-vending machine, and each container provided by retail water
facilities located in this state shall be clearly labeled in an
easily readable format. Retail water facilities that do not provide
labeled containers shall post, in a location readily visible to
consumers, a sign conveying required label information.
   (c) Retail water facilities and private water sources that sell
water at retail shall display in a position clearly visible to
customers the following information:
   (1) The name and address of the operator.
   (2) The source of the water in a typeface at least equal to the
size of the typeface of the corporate name or trademark.
   (3) The fact that the water is obtained from an approved public
water supply or licensed private water source.
   (4) A statement describing the treatment process used.
   (5) If no treatment process is utilized, a statement to that
effect.
   (6) A telephone number that may be called for further information,
service, or complaints.
   (7) The means by which a customer may order or download consumer
information relating to water quality, including the consumer
confidence report prepared pursuant to Section 116755.4, as provided
in Section 116755.6.
   (d) Retail water facilities and private water source operators
that sell water at retail shall also display the consumer confidence
report, prepared pursuant to Section 116755.4, in a take-home format.

   (e) Bottled water may be labeled "drinking water," notwithstanding
the source or characteristics of the water, only if it is processed
pursuant to the Food and Drug Administration Good Manufacturing
Practices contained in Section 165.110 and Parts 110 and 129 of Title
21 of the Code of Federal Regulations, Sections 12235 to 12285,
inclusive, of Title 17 of the California Code of Regulations, and any
other requirements established by the department pursuant to
Sections 116755, 116755.2, and 116755.8.  Any vended water and any
water from a retail water facility may be labeled "drinking water,"
notwithstanding the source or characteristics of the water, only if
it is processed pursuant to Article 10 (commencing with Section
114200) of Chapter 4 of Part 7 and any other requirements established
by the department pursuant to Sections 116755, 116755.2, and
116755.8.
   116756.5.  Water-vending machines shall display, in a position
clearly visible to customers, the following information:
   (a) The name and address of the operator.
   (b) The source of the water in a typeface at least equal to the
size of the typeface of the corporate name or trademark.
   (c) The fact that the water is obtained from an approved public
water supply or licensed private water source.
   (d) A statement describing the treatment process used.
   (e) If no treatment process is utilized, a statement to that
effect.
   (f) A telephone number that may be called for further information,
service, or complaints.
   (g) The most current version of the consumer confidence report
prepared pursuant to Section 116755.4.
   (h) The means by which a customer may order or download consumer
information relating to water quality, including the consumer
confidence report prepared pursuant to Section 116755.4, as provided
in Section 116755.6. The information required by this subdivision
shall be displayed in Spanish, and for each non-English-speaking
group other than Spanish that exceeds 1,000 residents or 10 percent
of the residents in the community in which the water-vending machine
is located, whichever is less, the information shall be displayed in
the appropriate languages.  The department shall make the final
determination of which water-vending machines need to include
multilingual information.
   (i) The date on which the water-vending machine was last cleaned
and serviced by the owner or operator.
   116756.6.  (a) The labeling on bottled water sold at retail or
wholesale in this state in a plastic beverage container, as defined
in Section 14517 of the Public Resources Code, shall include one of
the following:
   (1) A telephone number of the bottler or brand owner.
   (2) The bottler's or brand owner's mailing address.
   (b) Bottlers or brand owners may also include other forms of
contact, including, but not limited to, the bottler's or brand owner'
s e-mail address or Web site.
   116756.7.  (a) Notwithstanding Section 116756.6, the labeling on
bottled water sold at retail or wholesale in this state in a plastic
beverage container, as defined in Section 14517 of the Public
Resources Code, shall also include the following:
   (1) The source of the bottled water in a typeface at least equal
to the size of the typeface of the corporate name or trademark.
   (2) If any regulated contaminant is detected in the bottled water,
as reported in the consumer confidence report prepared pursuant to
Section 116755.4, the label shall also include the following
information:
   (A) The range of the contaminant level found in the bottled water
and the corresponding maximum contaminant level and public health
goal for that contaminant.
   (B) Any violations of the maximum contaminant level that have
occurred as a result of the presence of the contaminant in the
bottled water.
   (C) An indication of the health concerns that resulted in the
regulation of the contaminant.
   (3) The means by which a customer may order or download consumer
information relating to water quality, including the consumer
confidence report prepared pursuant to Section 116755.4, as provided
in Section 116755.6.
   (b) The label information required by this section shall be
updated annually, commensurate with publication of the annual
consumer confidence report prepared pursuant to Section 116755.4.
   116756.8.  Bottlers, bottled water distributors, and water haulers
that distribute directly to consumers shall annually mail or deliver
a copy of the consumer confidence report prepared pursuant to
Section 116755.4 to each customer.
   116757.  (a) In addition to the requirements of this article, if a
bottler, distributor, water hauler, retail water facility operator,
or vending machine operator provides information in the labeling or
advertising stating or implying that this water is of a specific
water type (for example, "spring water") or treated in a specific
manner (for example, "purified"), the type or treatment shall be
clearly labeled in an easily readable format.  In order to be so
labeled, the source or treatment shall conform to the definitions
established in Section 165.110 of Title 21 of the Code of Federal
Regulations, or, if not defined in that section, with the following
criteria:
   (1) "Mineralized water" means bottled or vended water that meets
the requirements of "mineral water" except that the water contains
added minerals.
   (2) "Natural water" means bottled or vended spring, artesian well,
or well water that is unmodified by mineral addition or deletion,
except "natural water" may be filtered and shall be sanitized with
ozone or an equivalent disinfection process and treated to reduce the
concentration of any substance that exceeds safety standards
established by the department.
   (3) "Naturally sparkling water" means bottled water or vended
water with a carbon dioxide content from the same source as the
water.
   (4) "Sparkling," "carbonated," or "carbonation added" means
bottled water or vended water that contains carbon dioxide.
   (b) Notwithstanding any other provision of this section, water
from a public water system that is unprocessed by the bottler or
vendor shall be in compliance with Section 165.110(a)(3)(ii) of Title
21 of the Code of Federal Regulations.
   116757.2.  Except as provided in Section 116752.4, any bottled
water or vended water, the quality of which is below the quality
required by this article, shall be labeled with a statement of
substandard quality, as prescribed by subsection (b) of Section
165.110 of Subpart B of Part 165 of Title 21 of the Code of Federal
Regulations.
   116757.4.  (a) A bottled water, as defined in Section 116752, with
natural or added carbonation, may be prepared with added flavors,
extracts, essences, or fruit juice concentrates derived from a spice
or fruit and comprising less than 1 percent by weight of the final
product.  The final product shall contain no sweeteners, or additives
other than the flavors, extracts, essences, or fruit juice
concentrates and carbon dioxide and shall be designated on labels and
in advertising as follows:
   (1) The common or usual name of the characterizing flavor shall
accompany the designation of the bottled water product type, as
specified in Section 116757.
   (2) The product may be designated as "natural" only if it meets
the requirements for the designation as provided in Section 116757,
and naturally derived flavors, extracts, or essences are used.
   (b) Products labeled pursuant to this section shall comply with
all other provisions of this article.  Products with one type or one
source of bottled water that are labeled pursuant to this section
shall not be blended with water that is not bottled water or that is
of another bottled water type.
   116757.6.  (a) Bottlers and water haulers that distribute directly
to consumers shall provide a sentence on each billing statement that
includes the following:
                                                                (1) A
telephone number of the bottler or brand owner.
   (2) The bottler's or brand owner's mailing address.
   (3) The means by which a customer may order or download consumer
information relating to water quality, including the consumer
confidence report prepared pursuant to Section 116755.4, as provided
in Section 116755.6.
   (b) Bottlers or brand owners may also include other forms of
contact, including, but not limited to, the bottler's or brand owner'
s e-mail address or Web site.
   116757.8.  (a) The department may, by written permission, allow a
person to package water for use in public emergencies without
obtaining a water bottling license, where the emergency has resulted
in the interruption of, or has compromised the quality of, the public
drinking water supply.  This permission may authorize the suspension
of any provision of this article and related regulations.
   (b) (1) The department may at any time change or impose on the
permittee any requirements such as testing, equipment, and
documentation that the department deems necessary to protect public
health but in doing so shall consider the effect of those
requirements in light of the urgency of the situation.  The
department may grant or withdraw this permission at any time.
   (2) Packing, distribution, and use of water under this permit
shall only be allowed during the emergency period and shall end upon
the restoration of adequate public drinking supplies as determined by
the department. Distribution shall be limited to the area affected.
Water so packaged shall be prominently labeled "drinking water,"
"for emergency use only," and "not for sale," or similar wording
approved by the department.
   (c) This section shall not be construed to restrict licensed
water-bottling plants from providing water processed in accordance
with this article in emergency situations.
   116758.  The department, prior to issuing a license, shall review
all labels prepared pursuant to this article, and may require any
changes in order to comply with this article.
   116759.  (a) In order to carry out the purposes of this article,
any duly authorized representative of the department may, at any
reasonable hour of the day, do any of the following:
   (1) Enter and inspect any licensed facility or any place where
bottled water or vended water records are stored, kept, or
maintained.
   (2) Inspect and copy any records, reports, test results, or other
information required to carry out this article.
   (3) Set up and maintain monitoring equipment for purposes of
assessing compliance with this article.
   (4) Obtain samples of the water supply.
   (5) Photograph any portion of the facilities, any activity, or any
sample taken.
   (b) Any duly authorized representative of the department may, at
any time, do any of the following:
   (1) Inspect any water vending machine.
   (2) Set up and maintain monitoring equipment for purposes of
assessing compliance with this article.
   (3) Obtain samples of vended water.
   (4) Photograph any portion of the water vending machine, any
activity, or any samples taken.
   (c) The department shall inspect each water-bottling plant,
water-vending machine, retail water facility, and private water
source, as well as each facility and vehicle involved in bottled
water distribution or water hauling at least annually, and shall
provide an opportunity for a representative of the water-bottling
plant, water-vending machine owner or operator, water hauler, retail
water facility operator, private water source operator, or bottled
water distributor to accompany the representative of the department
during the inspection.
   (d) It shall be a misdemeanor for any person to prevent, interfere
with, or attempt to impede in any way any duly authorized
representative of the department from undertaking the activities
authorized by this section.
  SEC. 4.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.