AB83 - Bottled water. Sponsor: Ellen Corbett / 2003-2004 Legislature

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Summary
This bill requires bottled water licensees to comply with provisions similar to those imposed on public water systems regarding emergency notification plans, consumer confidence reports and inspections, and creates the Safe Bottled and Vended Water Account in the General Fund.
Status
This bill passed the Assembly, but did not pass the Senate. It did not become law.
BILL ANALYSIS                                                                                                                                                                                                    



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          Date of Hearing:   April 8, 2003

           ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS
                                  John Laird, Chair
                    AB 83 (Corbett) - As Amended:  March 13, 2003
           
          SUBJECT  :   Bottled Water.

           SUMMARY  :  Requires bottled water and water vending machine  
          licensees to comply with provisions similar to those imposed on  
          public water systems regarding emergency notification plans,  
          consumer confidence reports, and annual inspections.   
          Specifically,  this bill  :

          1)Transfers 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  
            (Sherman Law) to the California Safe Drinking Water Act  
            (SDWA).

          2)Requires bottled water licensees to comply with provisions  
            similar to those imposed on public water systems regarding  
            emergency notification plans, consumer confidence reports  
            (CCRs), and annual inspections.

          3)Revises the annual license fee schedule and creates the Safe  
            Bottled and Vended Water Account in the General Fund,  
            comprised of these fees, from which moneys would be expended  
            for purposes of administering the above provisions.

          4)Maintains the federal requirements relating to bottled water  
            by requiring that any person who processes, packages,  
            distributes, transfers, or stores bottled water or vended  
            water still comply with the good manufacturing practices  
            required by federal law.

          5)Requires that bottled and vended water shall meet all maximum  
            contaminant levels set for public drinking water that the  
            State Department of Health Services (DHS) determines are  
            necessary or appropriate so that bottled water may present no  
            adverse effect on public health.

          6)Specifies that bottled and vended water shall not exceed 10  
            parts per billion of total triahalomethanes or five parts per  
            billion of lead unless DHS establishes a lower level by  








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            regulation.

          7)Requires a licensee to notify DHS, and notify consumers as  
            required by DHS, if specified standards are not met or the  
            licensee fails to take certain steps in compliance with the  
            act such as:

             a)   Exceedence of any maximum contaminant level set for  
               public drinking water standards;

             b)   Failure to carry out any DHS required monitoring; or,

             c)   Failure to comply with the conditions of any variance,  
               the licensee shall notify the department and shall give  
               notice to consumers in the manner prescribed by DHS.

          8)Prohibits DHS from issuing a license or a variance to any  
            bottled or vending water operation unless it has an approved  
            emergency notification plan.  DHS is authorized to exempt  
            operations from this requirement when the DHS determines that  
            " will best serve the public interest."

          9)Incorporates 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 that are more stringent than the state  
            requirements for bottled water.  Such federal standards are  
            incorporated into this chapter and are effective on the date  
            established by the federal provisions unless otherwise  
            established by regulations of DHS.

          10)Requires each licensee to establish a toll-free multilingual  
            telephone hotline for consumers to request additional  
            information regarding water quality, the CCR, information from  
            local health departments regarding the quality of vended  
            water, if applicable.

          11)Authorizes DHS to require a licensee or transporter of  
            bottled or vended water to test for any substance, including  
            organic chemical contaminants, at any time that DHS believes  
            the substance may be present in the water source and may  
            threaten the public health.

          12)Authorizes DHS to require, by order, a licensee to reduce or  
            eliminate the concentration of any chemical that DHS  








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            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, DHS may  
            require treatment techniques to reduce the concentration of  
            the contaminants that require treatment, in DHS's judgment, to  
            prevent known or anticipated adverse effects on the health of  
            persons.

          13)Requires that 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 DHS, 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.

          14)Specifies certain labeling requirements for bottled and  
            vended water containers or machines which shall include at a  
            minimum (a) the name and address of the operator; (b) the  
            source of the water; (c) whether the water is obtained from an  
            approved public water supply or licensed private water source;  
            (d) any treatment process used; and, (e) contact information  
            and place to locate or obtain the CCR.

          15)   Requires bottled water sold at retail or wholesale in this  
            state in a plastic beverage container, to also include on the  
            label, if any regulated contaminant is detected in the bottled  
            water (as reported in the CCR for the previous year), the  
            following information: (a) the range of the contaminant level  
            found in the bottled water; (b) the corresponding maximum  
            contaminant level and public health goal for that contaminant;  
            (c) any violations that have occurred as a result of the  
            presence of the contaminant in the bottled water; (d) an  
            indication of the health concerns that resulted in the  
            regulation of the contaminant.  This labeling information is  
            to be updated annually and the CCR is to be mailed by any  
            bottlers, bottled water distributors, and water haulers that  
            distribute directly to consumers.

          16)   Directs DHS to review all labels prepared pursuant to this  
            article, and may require any changes in order to comply with  
            this article prior to issuing a license.









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          17)   Authorizes any duly designated DHS representative at any  
            reasonable hour of the day, to enter and inspect any licensed  
            facility or any place where bottled water or vended water  
            records are stored, kept, or maintained.  DHS may also  
            inspect, copy any records, reports, test results, or other  
            information required to carry out this article.  In addition  
            DHS is authorized to establish any monitoring equipment or  
            obtain water supply samples necessary to assess compliance  
            with this article.

          18)   Specifies the contents for the annual CCR, which shall be  
            provided to the consumer as required by DHS and posted on  
            DHS's web site.  The report shall include (a) the source of  
            the bottled or vended water, (b) the definition of maximum  
            contaminant levels (MCLs), primary drinking water standards  
            and public health goals (PHGs), (c) a report on any regulated  
            contaminant found in the water over the past year, (d) the  
            contact information for additional consumer information, (e) a  
            disclosure of any variance granted to the licensee by DHS.   
            The CCR must also have information in Spanish, and any other  
            language of a population that exceeds 10 percent of the United  
            States population, stressing the importance of the report or  
            offering additional information, as determined to be necessary  
            by DHS.

          19)   Makes certain findings relating to the differences between  
            the way drinking water is regulated by DHS under the SDWA and  
            the Sherman Law.

          20)   Make violations of these bottled water SDWA provisions  
            relating to fraud also punishable as a misdemeanor as are  
            those relating to public water supplies, as well as a failure  
            to comply with the inspection provisions.

          21)Provides that the prevailing party 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 in any civil court action brought to enforce this  
            article.

           EXISTING LAW:   The federal Safe Drinking Water Act (federal act)  
          sets the framework for regulating drinking water quality in the  
          United States. Under the federal act, states are authorized to  
          assume responsibility for managing the safety of its drinking  








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          water quality if it is certified as having a program at least as  
          stringent as, or more stringent than, the federal program.   
          California has been given that authority.

          Under the state's program, the SDWA imposes various functions  
          and duties on DHS with respect to the administration of the act,  
          and requires public water systems (PWSs) to comply with  
          recommended public health levels for contaminants in drinking  
          water established by DHS.

          PWSs, among other requirements, must have an approved emergency  
          notification plan, issue consumer confidence reports (CCRs), and  
          comply with annual inspections.

          The Sherman Law provides for the licensure and regulation by DHS  
          of persons engaged in activities relating to bottled, vended,  
          hauled, and processed water.

           FISCAL EFFECT  :  Unknown, but authorizes collection of fee to  
          cover actual expenses.

           COMMENTS  :  This bill would essentially transfer the provisions  
          relating to the licensure and regulation of persons engaged in  
          the above bottled and vending water activities from the Sherman  
          Law to the SDWA.  This modification would require bottled water  
          licensees to comply with provisions similar to those imposed on  
          PWSs regarding emergency notification plans, CCRs, and annual  
          inspections.

          1)According to the sponsors, the SDWA 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 DHS.  They want to make sure that  
            the same protections for consumers that are contained in the  
            SDWA relating to tap water also apply to bottled and vended  
            water products.  By moving the regulation of bottled and  
            vended water distribution from the Sherman Law to the SDWA,  
            the primary state regulatory agency remains DHS, but, the  
            author feels that the consumer will have greater certainty as  
            to the contents of bottled water products and will better  
            ensure consistent state oversight of drinking water.

          2)With an estimated, seventy percent of California's consumers  
            consuming some or all of their drinking water needs from  








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            bottled or vending machine water, the sponsors contend that  
            the general public perception is that bottled water and vended  
            water products are safer, or are of higher quality, than tap  
            water even though the water quality requirements for bottled  
            water are, in some cases, less stringent than tap water.   
            Particularly, they want to make sure that bottled and vending  
            water suppliers are inspected annually, provide the same  
            "right to know" information to their consumers that PWS  
            provide and to cover the departmental costs associated with  
            protecting consumers health.

          3)The sponsors cite the findings of a report published in 1999  
            by the Natural Resources Defense Council,  Bottled Water: Pure  
            Drink or Pure Hype  .  This report examined the public  
            perception that bottled water is safer for babies and one's  
            health generally.  The NRDC study included testing of more  
            than 1,000 bottles of 103 brands of bottled water.  While most  
            of the tested waters were found to be of high quality, some  
            brands were contaminated - about one-third of the waters  
            tested contained levels of contamination --including synthetic  
            organic chemicals, bacteria, and arsenic -- in at least one  
            sample that exceeded allowable limits under either state or  
            bottled water industry standards or guidelines.  While the  
            report does not claim there is a widespread "acute" health  
            risk, it notes that public concern about tap water quality is  
            at least partly responsible for the growth in bottled water  
            sales, which have tripled in the past 10 years.

          4)The Consumer's Union cites an example of how the US EPA  
            requires tap water suppliers to monitor for asbestos, while  
            the US Food and Drug Administration does not.  The sponsors  
            are trying to bring these standards together by unifying all  
            water for drinking purposes in the state SDWA.  For example,  
            the County of Los Angeles feels that it is important that  
            consumers know about potential levels of lead, aluminum,  
            arsenic and salt, whether it comes from the tap or a vending  
            machine.

          5)The sponsors also assert that existing levels of fees for the  
            bottled and vended water regulatory program are insufficient  
            to fund adequate 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.









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          6)The author of this measure thinks that it is important that  
            bottled and vending water providers consistently meet at least  
            the same standards PWSs have to meet and that this measure  
            will provide the consumer with necessary data to make an  
            informed choice and assure that adequate oversight is in place  
            through consistent inspection and reporting requirements.

          7)The opponents to this measure feels that imposing another set  
            of requirements on the bottled water purveyors is redundant in  
            most areas and conflicts with federal regulations in others.   
            Ultimately, the California Chamber of Commerce feels that this  
            will "serve no purpose other than to increase costs to the  
            industry and ultimately the consumer."

          8)The International Bottled Water Association believes that the  
            regulations, which treat, bottled water as a "food product",  
            are sufficient and that these regulations are required by law  
            to be as stringent as standards for PWSs.  It says that PWSs  
            regulations, drawn up for "nonpackaged, continuous  
            distribution systems," are different and should stay that way.

          9)Opponents contend that the consumer should be confident in  
            their bottled water because as a food product, it simply  
            cannot be sold legally if it violates the laws that cover it.   
            They assert that the enforcement mechanisms of the FDA are  
            more stringent than those under the SDWA.

          10)Opponents also contend that the CCR is not really used by the  
            public in the way the sponsors contend and so would be a waste  
            of time and dollars.  Also they say that the CCR information  
            will not necessarily reflect existing conditions in the bottle  
            because it is from the previous year.  Lastly, they assert  
            that the labeling requirements will conflict with federal  
            labeling requirements and be preempted.  In 1995, they point  
            out that the FDA considered and rejected a requirement that  
            bottled water labels specify the water source.

          11)Currently this measure also requires bottled water  
            transporters to prepare and post CCRs.  The author and the  
            Committee may wish to consider whether this requirement should  
            be removed from the measure as they are not really involved in  
            marketing the water to the consumer.

          12)Technical amendment: Section 116756.5 (g) requires that the  
            most current version of the consumer confidence report must be  








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            posted on a vending machine.  The Committee and the author may  
            want to clarify whether the vending machine operator must post  
            the entire report or just the critical information.  (Page 23,  
            lines 28-29).

           REGISTERED SUPPORT / OPPOSITION  :

           Support
           
          American Federation of State, County, and Municipal Employees
          Association of California Water Agencies
          Attorney Genera, State of California
          California Communities Against Toxics
          California League of Conservation Voters
          Clean Water Action (sponsor)
          Consumers Union
          East Bay Municipal Utility District (sponsor)
          Environmental Justice Coalition For Water
          Planning and Conservation League
          Sierra Club California
          National Environmental Trust
          Natural Resources Defense Council (sponsor)
          Physicians for Social Responsibility
          14 Individuals

          Adobe Springs Water Company (Support if Amended)

           Opposition 
           
          California Chamber of Commerce
          International Bottle Water Association
           
          Analysis Prepared by  :    Michael Endicott / E.S. & T.M. / (916)  
          319-3965

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