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                                                                                                                                                                                                    



                                                                  AB 83
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          ASSEMBLY THIRD READING
          AB 83 (Corbett)
          As Amended June 2, 2003
          Majority vote 

           ENVIRONMENTAL SAFETY         4-1APPROPRIATIONS      17-7        
           
           ----------------------------------------------------------------- 
          |Ayes:|Laird, Chu, Hancock,      |Ayes:|Berg, Berg, Kehoe,        |
          |     |Lowenthal                 |     |Corbett, Diaz, Firebaugh, |
          |     |                          |     |Goldberg, Leno, Nation,   |
          |     |                          |     |Chan, Nunez, Pavley,      |
          |     |                          |     |Ridley-Thomas, Simitian,  |
          |     |                          |     |Wiggins, Yee, Laird       |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Aghazarian                |Nays:|Bates, Daucher, Haynes,   |
          |     |                          |     |Maldonado, Pacheco,       |
          |     |                          |     |Runner, Samuelian         |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           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,  








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            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 (MCLs) set for public drinking water that  
            the State Department of Health Services (DHS) determines are  
            necessary or appropriate so that bottled water may cause no  
            adverse effect on public health.

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

          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  
            it "will best serve the public interest."

          9)Incorporates new or revised allowable contaminant levels or  
            monitoring provisions adopted for bottled water by the United  
            States Food and Drug Administration under the Sherman Law 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, or utilize an existing  
            toll-free, multilingual telephone hotline for consumers to  
            request additional information regarding water quality, CCR,  
            and information from local health departments regarding the  








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            quality of bottled water, if applicable.  A water vending  
            machine licensee may use a local telephone number instead.

          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 order a licensee to reduce or eliminate the  
            concentration of any chemical that DHS 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, in DHS's judgment, are needed 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 certified laboratories, as specified.

          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 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 CCR for the previous year), the  
            following information:  a) the range of the contaminant level  
            found in the bottled water; b) the corresponding MCL 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; and, d) an indication of the  
            health concerns that resulted in the regulation of the  
            contaminant.  This labeling information is to be updated  
            annually and CCR is to be mailed by any bottlers or bottled  
            water distributors that distribute directly to consumers.









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          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.

          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)   Requires DHS to inspect each water-bottling plant  
            annually.  DHS must inspect each retail water facility,  
            private water source and vehicle used in transporting drinking  
            water at least once every four years.

          19)   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 definitions of 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; and, 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.

          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.









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

           EXISTING LAW  , under 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 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.

          Imposes various functions and duties on DHS, under the state's  
          SDWA, 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.

          Requires PWSs to have an approved emergency notification plan,  
          to issue CCRs, and to comply with annual inspections.

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

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee analysis:
          Significant upfront costs, in the range of $1.2 million in  
          fiscal year (FY) 2003-04 and FY 2004-05, to DHS to expand its  
          current program of regulating bottled and vended water  
          companies.  These costs are potentially covered by increased  
          fees imposed by DHS to cover the department's ongoing costs.

          Significant ongoing increased costs, in the range of $750,000  
          annually, to administer and enforce the expanded regulatory  
          program.  These costs are covered by revenue generated by fees  
          imposed on licensees.  

           COMMENTS  :  This bill would essentially transfer the provisions  
          relating to the licensure and regulation of persons engaged in  
          bottled and vending machine 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.








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          1)According to the sponsors, Clean Water Action, Natural  
            Resources Defense Council (NRDC) and East Bay Municipal  
            Utilities District, 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 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, 70% of California's consumers consuming  
            some or all of their drinking water needs from 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 regularly, to 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  
            NRDC,  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 some level of contamination,  
            including synthetic organic chemicals, bacteria, and arsenic.   
            In at least one sample, allowable limits under either state or  
            bottled water industry standards were exceeded.  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.








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          4)The Consumer's Union cites an example of how the United States  
            (U.S.) Environmental Protection Agency requires tap water  
            suppliers to monitor for asbestos, while the U.S. Food and  
            Drug Administration (FDA) 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 PWSs.

          6)The author of this bill thinks that it is important that  
            bottled and vending water providers consistently meet at least  
            the same standards that 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 feel 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.









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          10)Opponents also contend that CCRs are not really used by the  
            public in the way the sponsors contend and so it 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 FDA considered and rejected a requirement that  
            bottled water labels specify the water source.


          Analysis Prepared by  :    Michael Endicott / E.S. & T.M. / (916)  
          319-3965 

                                                                FN: 0001512

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