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
                                                                      

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                               Byron D. Sher, Chairman
                              2003-2004 Regular Session
                                           
          BILL NO:    AB 83             
          AUTHOR:     Corbett
          AMENDED:    August 19, 2003
          FISCAL:     Yes               HEARING DATE:     August 21, 2003
          URGENCY:    No                CONSULTANT:       Derek Ishikawa
                                                          Kip Lipper
           
          SUBJECT  :    CALIFORNIA SAFE DRINKING WATER ACT; 
                      BOTTLED WATER

           SUMMARY  :    
          
           Existing federal law, under the Federal Food, Drug, and Cosmetic  
          Act (FFDCA)  :

          1) Regulates bottled water as a food product.

          2) Provides the Food and Drug Administration (FDA) with broad  
             regulatory authority over food products, including bottled  
             water.

          3) Provides specific FDA Good Manufacturing Practice (GMP)  
             requirements for bottled water that provide guidance with  
             respect to sanitation, product quality, testing, record  
             keeping, and facility design. 

          4) Establishes uniform "Standard of Identity" definitions for  
             bottled water classifications. 

          5) Establishes limits for more than 75 microbiological,  
             physical, chemical, radiological substances for both source  
             water and finished bottled water products.

          6) Establishes uniform nutrition labeling for food products and  
             bottled water.

          7) Provides FDA with a wide range of enforcement tools,  
             including civil or criminal actions, if a product is either  
             adulterated or misbranded and a company declines to take  









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             corrective action.  

          8) Permits the sale of bottled water that contains a contaminant  
             in excess of an maximum contaminant level (MCL) if the level  
             of contamination is harmful to health and the substandard  
             nature of the product is disclosed through a statement on the  
             label. 

          9) Establishes uniform nutrition labeling for food products and  
             bottled water.

          10)Authorizes states to manage drinking water quality if the  
             state is certified as having a program as stringent as, or  
             more stringent than, the framework provided by the federal  
             Safe Water Drinking Act (SDWA).

           Existing state law  :
           
           1)Requires public water systems (PWS) to comply with recommended  
            public health goals for drinking water contaminants, as  
            established by the Department of Health Services (DHS).

          2)Requires PWS to maintain an emergency notification plan  
            approved by the department, to issue consumer confidence  
            reports, and to comply with annual inspections.

          3)Requires bottled and vended water to meet all of the same  
            maximum contaminant levels (MCLs) that are required of public  
            water systems.

          4)Provides for the licensure and regulation by DHS of persons  
            engaged in activities related to the bottled, vended, hauled,  
            and processed water, pursuant to the Sherman Food, Drug, and  
            Cosmetic Law (Sherman Law).

          5)Permits the unannounced inspection of bottled and vended water  
            licensees by DHS on an as-needed basis.  

          6)Requires bottlers and waterhaulers to provide specified  
            contact information and bottled/vended water content  
            information to be made available to customers on labels for  
            bottled or vended water or on billing statements for bottlers  
            and waterhaulers. 









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           This bill  :  

          1) Transfers the provisions relating to the licensure and  
             regulation of persons engaged in bottled and vended water  
             activities from the Sherman Law to the SDWA.

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

          3) Revises the annual fee license schedule to reflect cost-based  
             reimbursement and creates the Safe Bottled and Vended Water  
             Account in the General Fund, comprised of fees based on DHS'  
             costs in conducting these activities, from which moneys would  
             be expended for purposes of administering the provisions  
             above.

          4) By July 1, 2005, requires DHS to adopt regulations that  
             establish appropriate penalties for multiple violations,  
             including, but not limited to, written warnings, increased  
             inspection frequency, suspension of license, revocation of  
             license, monetary penalties, or permanent removal of a  
             water-vending machine from service. 

          5) 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 continue to comply with all manufacturing processes  
             required by federal law.

          6) Requires bottled and vended water to meet all MCLs set for  
             public drinking water by DHS in order to ensure that bottled  
             water presents no significant adverse effect on public  
             health.

          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 :
                 Exceedence of any MCL set for public drinking water;
                 Failure to carry out any DHS-mandated monitoring; or,
                 Failure to comply with the conditions of any variance.









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          1) Prohibits DHS from issuing a license or a variance to any  
             bottled or vending water operation unless it has an approved  
             emergency notification plan or has been provided an exemption  
             by DHS that serves the "public interest."

          9)Requires each licensee to establish, or utilize, an existing  
            toll-free, multilingual telephone hotline for consumers to  
            request additional information regarding water quality, CCRs,  
            and information from local health departments regarding the  
            quality of bottled water, if applicable.  A water vending  
            machine licensee may use a local telephone number instead.

          10)Requires as a condition of licensure, each licensee to  
            prepare a consumer confidence report according to DHS' most  
            recent guidelines, and specifies the contents for the annual  
            CCR, which shall be available to the consumer and posted on  
            DHS' website.  The report shall include: the source of the  
            bottled or vended water; the definitions of MCLs, primary  
            drinking water standards and public health goals (PHGs); a  
            report on any regulated contaminant found in the water over  
            the past year; the contact information for additional consumer  
            information; and, a disclosure of any variance granted to the  
            licensee by DHS. 

          11)Specifies that the CCR must also have information in Spanish,  
            and any other language of a population that exceeds 10 percent  
            of the state's population based on current United States  
            Census data, stressing the importance of the report or  
            offering additional information, as determined to be necessary  
            by DHS.

          12)Specifies certain labeling requirements in both English and  
            Spanish for vended water containers or machines which shall  
            include at a minimum: the name and address of the operator; a  
            statement that the water is obtained from an approved public  
            water system or licensed private water source; any treatment  
            process used, the efficacy of that process in reducing  
            regulated contaminants to levels below detection by that  
            process, and, if appropriate, a statement indicating if no  
            contaminants are reduced by the treatment process; contact  
            information, and any relevant information from the CCR of  
            either the vendor or public water system.









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          13)Beginning July 1, 2004, requires bottled water sold at retail  
            or wholesale in this state in a plastic beverage container to  
            place on its label, an annually updated "CA Water Quality  
            Notice" to include the following: a statement indicating the  
            possible presence of unregulated contaminants, a statement  
            indicating the availability of more water quality information,  
            including a CCR, and one of a set of three distinct water  
            quality disclosures, depending on the presence or absence of  
            regulated contaminants as reported in the previous year's CCR,  
            as follows.  For bottled water where no regulated contaminants  
            were reported, a statement indicating the lack of detection of  
            such contaminants.  For bottled water where regulated  
            contaminants have been detected, but at levels not exceeding  
            the public health goal (PHG), a definition of public health  
            goal, a statement indicating the presence of regulated  
            contaminants, a statement indicating that none of the named  
            contaminants were detected at levels exceeding the PHG.  For  
            bottled water where regulated contaminants have been detected  
            at levels exceeding the PHG, a definition of public health  
            goal, a statement indicating the presence of regulated  
            contaminants, the names of those regulated contaminants  
            detected at levels above the PHG, and an indication of the  
            health concerns that resulted in the regulation of the  
            contaminant. 

          14)Requires bottlers and bottled water distributors that  
            distribute directly to consumer to annually mail, deliver, or  
            otherwise obtain a copy of the CCR.  In addition, each  
            licensee would provide its CCR to DHS for posting on the  
            department's website. 

          15)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  
            and 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. 

          16)Requires each licensee to reimburse the department for actual  









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            enforcement costs incurred by the department for specified  
            enforcement actions. 

          17)Requires DHS to inspect all water bottling plants,  
            water-vending machines, retail water facilities, private water  
            sources, and facilities and vehicles used in transporting  
            drinking water at least once every three years.   

          18)Makes any failure to comply with the inspection provisions a  
            misdemeanor. 

          19)Provides that in any civil action brought by DHS for  
            enforcement purposes, 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.

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

           COMMENTS  :

           1) Purpose of Bill  .  According to the author's office:
           
              "Nearly 70% of all Californians consumer some or all of their  
             drinking water from bottled water sources, including retail  
             bottles, vending machines, water coolers, and through  
             point-of-use systems.  Despite the significant reliance on  
             bottled water products as a source of drinking water,  
             California law does not require bottled or vended water to  
             provide consumers with information about the quality of water  
             they are consuming.  

             The California Safe Drinking Water Act (SDWA) regulates the  
             quality of "tap water" in the state through enforceable  
             drinking water standards and oversight In many cases, bottled  
             water may be no better than tap water, but under the existing  
             statutory and regulatory framework, and in the absence of  
             consumer "right-to-know" reporting requirements, consumers  
             have no easy way of knowing the quality of their bottled  









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             water product.  Unlike public water systems, bottled water  
             sources and facilities are not inspected annually, do not  
             provide "right-to-know" reports to consumers, and do not pay  
             for state regulatory oversight of their industry.  AB 83 is  
             intended to require bottled water suppliers to meet the same  
             water quality standards as local tap water providers."

           2) The popularity of bottled waters raises some concerns  .   
             Market researchers
             expect that bottled water may soon become the nation's second  
             most popular beverage, after soft drinks.  According to the  
             Beverage Marketing Corp, manufacturers sold more than $7.7  
             billion worth of bottled water last year, an increase of 12.3  
             percent from 2001.  The marketing group reports that, in  
             2002, the average consumer drank 21 gallons of bottled water,  
             about 11 percent more than in 2001. 

             Most consumers are drawn to the convenience and taste of  
             bottled water  In similar fashion, some consumers-and many  
             members of immigrant communities who come from regions where  
             tap water is highly suspect and continue to maintain this  
             skepticism-are also drawn to bottled or vending machine water  
             believing it is more healthy and less contaminated than tap  
             water.  It should be noted that vended water machines, often  
             found outside of grocery stores, draw from a public water  
             system, and after some further treatment within the water  
             vending machine, dispense water to containers supplied by the  
             customer.  

             Several environmental and consumer advocacy groups argue that  
             water coming out of a bottle is no cleaner or safer than tap  
             water, in general, and is well beyond the price of tap water.  
              The Natural Resources Defense Council (NRDC) estimates that  
             bottled water is 240 times to 10,000 times more expensive  
             than tap water.  While consumers may pay a few dollars for  
             every thousand gallons of tap water, they can pay almost $2  
             per gallon of some brands of bottled water.  In a report  
             published in 1999 by 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.  










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             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 both state  
             and 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.
           
              There are instances where certain groups with sensitive or  
             severely compromised immune systems may appropriately desire  
             drinking water other than tap water, notwithstanding its  
             availability and its general safety. Depending on the water  
             quality of a public water system at a particular time or  
             location, members of these groups-including newborns, infants  
             and children, AIDS patients, and the elderly may be more  
             sensitive to the effects of various constituents found in  
             public drinking water.  

             Many of these individuals, in trying to distinguish between  
             the myriad of bottled and vended waters, may not have the  
             proper information to make an informed purchase.  Treated as  
             a food product under federal and state laws, bottled water  
             has nutrition labeling requirements that are similar to other  
             food products-providing information about calories and  
             protein, but nothing concerning the level and kind of the  
             water's contaminants.  Currently, an individual with concerns  
             about lead in water is not readily able to distinguish  
             between various brands of bottled water.  Given the kind of  
             information provided under existing nutrition labeling  
             requirements, consumers have little means of distinguishing  
             between vended, bottled, and tap water-let alone the myriad  
             varieties and brands within each category.

           3) Federal regulation treats bottled water as a food product  .   
             At the federal level, regulation of bottled water is part of  
             FDA's larger food safety program, which requires  
             manufacturers produce safe, wholesome and truthfully labeled  
             food products.  The FDA has also established regulations  
             specifically for bottled water, including standard of  
             identity regulations, which define different types of bottled  









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             water, and standard of quality regulations, which set maximum  
             levels of contaminants (chemical, physical, microbial and  
             radiological) allowed in bottled water.  From a regulatory  
             standpoint, the FDA describes bottled water as water that is  
             intended for human consumption and that is sealed in bottles  
             or other containers with no added ingredients, except that it  
             may contain a safe and suitable antimicrobial agent. 

             Generally, over the years, the FDA has adopted EPA standards  
             for tap water as standards for bottled water.  As a result,  
             standards for contaminants in tap water and bottled water are  
             very similar.  However, in some instances, standards for  
             bottled water are different than for tap water.  Lead is one  
             prominent example.  Because lead can leach from pipes as  
             water travels from water utilities to home faucets, the EPA  
             set an action level of 15 parts per billion (ppb) in tap  
             water.  This means that when lead levels are above 15 ppb in  
             tap water that reaches home faucets, water utilities must  
             treat the water to reduce the lead levels to below 15 ppb.   
             In bottled water, where lead pipes are not used, the lead  
             limit is set at 5 ppb.  Based on FDA survey information,  
             bottlers can readily produce bottled water products with lead  
             levels below 5 ppb. This action was consistent with the FDA's  
             goal of reducing consumers' exposure to lead in drinking  
             water to the extent practicable.
           
          4) Transfer of bottle/vended water division presents costs, but  
             may prove useful.   East Bay Municipal Utility District  
             (EBMUD), one of the bill's sponsors, states that AB 83 would  
             "eliminate the double-standard regarding the regulation of  
             bottled water as compared to the regulation of tap water?by  
             enhancing the regulatory oversight of the bottled and vended  
             water industry in California.  Specifically, this bill would  
             move oversight of bottled and vended waters from the Sherman  
             Law to SDWA, so that bottled and vended water regulation  
             would be administered by the DHS' Drinking Water Program  
             instead of its Food Safety Program.   

              Proponents of the bill state that this move would help to  
             recognize the growing role that bottled and vended waters are  
             playing as primary sources of drinking water for an  
             increasing number of Californians by making certain that the  
             same consumer protections contained in the SDWA relating to  









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             tap water also apply to bottled and vended water products.   
             In essence, the sponsors argue that resulting gains in  
             economies of scale will help to ensure that oversight of all  
             important sources of drinking water-be it vended, bottled, or  
             tap-is consistent.   

              Opponents of the bill believe that imposing another set of  
             requirements on the bottled water purveyors is redundant in  
             most areas and conflicts with federal regulations in others.   
             The California Chamber of Commerce feels that this bill will  
             "serve no purpose other than to increase costs to the  
             industry and ultimately the consumer."  The International  
             Bottled Water Association believes that the regulations,  
             which treat bottled water as a "food product," are sufficient  
             and that these state and federal regulations are required by  
             law to be as stringent as standards for public water systems.  
              It says that public water systems' regulations, drawn up for  
             "nonpackaged, continuous distribution systems," are different  
             and should stay that way.  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.   

           5) Bill would provide for expanded consumer "right-to-know"  
             reporting duties for bottled and vended water.   

              a)    Consumer Confidence Reports.  Under existing federal  
                and state laws, public water systems are required to  
                provide each customer of the system with an annual report,  
                referred to as a consumer confidence report (CCR), on the  
                level of contaminants in the drinking water purveyed by  
                that system. The CCRs summarize the results of drinking  
                water monitoring taken over the previous year.  CCRs  
                provide consumers with practical information, including:  
                1) the quality of the local drinking water; 2) whether or  
                not the tap water meets EPA's safety standards; 3) likely  
                sources of any contaminants; 4) what the health risks are  
                                  in systems that violate the safety standards; 5)  
                information on sources; and 6) violations and enforcement  
                data.  Bottled and vended water purveyors are not  
                currently required to provide this kind of information to  









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                consumers.
           
              b)    Bill would require licensees to prepare CCRs and make  
                them available.  Bottlers, vendors, and water retailers  
                would have to prepare CCRs and make them available on  
                website and upon consumer request.  This measure would  
                additionally require vended water purveyors to prominently  
                post the source of the water, CCR-type information, and an  
                explanation of the machine's treatment process and its  
                efficacy on their machines.  Explanation of the machine's  
                treatment process and its efficacy would be required to be  
                provided in both Spanish and English.  

                 i)         Supporters state that CCRS would provide  
                     important consumer information  .  Proponents argue  
                     that this information would provide much-needed  
                     consumer disclosure information to the state's many  
                     residents that rely on bottled, vended, and retail  
                     facility water as major sources of drinking water.   
                     Although existing statute requires bottlers, vendors,  
                     and water retailers to subject their water to a  
                     series of tests, supporters of the bill argue that  
                     the results of these tests are inaccessible and are  
                     not in a consumer-friendly format.  As a result,  
                     consumers have little opportunity to substantively  
                     differentiate between different vendors, bottlers,  
                     and retailers based on water quality.  For instance,  
                     some bottle waters may contain contaminants such as  
                     nitrates, lead, arsenic, and microbes that can pose  
                     risks to the public health, especially pregnant  
                     women, infants, the elderly, and immunocompromised  
                     people.

                Newscasts and newspaper articles, moreover, have  
                     highlighted anecdotal stories of vended water or  
                     water retailer fraud-whereby certain machines have  
                     provided unimproved tap water to unknowing consumers  
                     as "vended" water.  The additional disclosures  
                     provided in this bill, supporters argue, would help  
                     to prevent such situations-in addition to providing  
                     consumers with important health-related information.

                 ii)        Opponents of the bill argue that CCRs are  









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                     unnecessary  .  Opponents, such as the International  
                     Bottled Water Association and Glacier Water-the  
                     state's largest vended-water company-state that  
                     several of these provisions are unworkable and  
                     unnecessary.  Bottlers, for example, contend that  
                     they do not currently prepare CCRs and would not be  
                     readily able to adapt existing annual and quarterly  
                     DHS bottled water quality analyses to a CCR-type  
                     format.  Instead, they suggest requiring DHS to post  
                     on its website annual and quarterly finished product  
                     testing analyses that must already be submitted by  
                     all bottlers.

                Vendors maintain that vended water machines draw from  
                     local public water systems and therefore CCR-type  
                     information would change from water system to water  
                     system-a significant administrative burden given the  
                     thousands of vended water machines throughout the  
                     state.  Moreover, opponents argue that there are no  
                     guarantees that such information, if posted, would  
                     remain on the side of the machine-opening up the  
                     vended water purveyors to fines and penalties.

                 iii)       Suggested Amendment: Notice of availability of  
                     CCRs may provide consumers with sufficient  
                     information  .  Rather than require that CCRs be posted  
                     on the sides of vending machines where they might be  
                     subject to vandalism or weather-related damage, and  
                     less intelligible than a personal copy that a  
                     consumer might inspect at his/her leisure, the  
                     committee may wish to consider whether it might be  
                     more appropriate for vendors to provide notice on  
                     their machines that the CCR is available by phone,  
                     email, mail, or on a website on their machines.  In  
                     addition, the committee may also wish to consider  
                     requiring vendors to post the date of the machine's  
                     last servicing to better assure consumers of the  
                     machine's continued efficacy.

                 iv)        Additional consumer protections may be gained  
                     by providing comparative water quality analysis on a  
                     single website/document  .   Currently, the bill requires  
                     licensees, except for vended and retail water  









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                     purveyors, to prepare CCRs and post them on a  
                     website.  While website-posted CCRs certainly improve  
                     access to water quality information, such information  
                     could be provided in an even more accessible and  
                     consumer-friendly manner.  Given the difficulties of  
                     gathering and then comparing CCRs from various  
                     bottled and vended water companies, the committee may  
                     wish to consider establishing a single website that  
                     could serve as a water quality information  
                     "clearinghouse" that would facilitate  
                     comparison-shopping by consumers.  Such a  
                     website-hosted by the department-could post detected  
                     levels of a range of selected water quality  
                     indicators on a side-by-side basis for easier  
                     comparison.
                 
              c)    Bill would require water quality information to be  
                included on bottled water labeling.  This measure would  
                require bottled water labels to include an annually  
                updated "CA Water Quality Notice," no less than one inch  
                by one inch, which would include:  
                              Disclosure of regulated contaminants  
                     detected, but that do not exceed the public health  
                     goal.
                             Disclosure of regulated contaminants  
                     detected above public health goals, and the health  
                     concerns associated with these contaminants.
                             Statements explaining "public health goal"  
                     and disclosing the potential presence of unregulated  
                     contaminants.  
                             Contact information for further water  
                     quality inquiries.  

                i)     FDA has considered CCR-type labeling for bottled  
                 water  .  As a result of the 1996 SDWA amendments signed by  
                 President Clinton, the FDA in consultation with US  
                 Environmental Protection Agency was required to conduct a  
                 draft study on the feasibility of appropriate methods, if  
                 any, of informing customers of the contents of bottled  
                 water.  The FDA has evaluated the applicability of having  
                 a draft study on the feasibility of appropriate methods,  
                 if any, of informing customers of the contents of bottled  
                 water.  The FDA concluded that it was feasible and that  









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                 most, but not all, of the information contained within a  
                 CCR is relevant to bottled water. (Some information is  
                 relevant only to public water systems.)  The FDA  
                 recognized that there was some important additional  
                 information that could be placed on the label, but  
                 believed the best method to disseminate the information  
                 to consumers was through a phone number or address. 

               The FDA concluded that the volume of information on a CCR  
                 precluded placing it on a water bottle, along with the  
                 fact that the information in the CCR could change  
                 frequently enough to make it a burden to business to  
                 change the label.  The FDA did not believe that the  
                 Internet should be the sole source for customer  
                 information, given the large number of customers who lack  
                 Internet access. 

                ii)       Supporters state that water quality labels would  
                 provide important consumer information  .  NRDC states that  
                 the "labeling component?that requires water bottlers to  
                 place a summary of their "right-to-know reports" on the  
                 bottle itself?is the most direct way to empower consumers  
                 to make informed choices about the water they drink and  
                 give to their children."  Some bottled water may contain  
                 contaminants such as nitrates, lead, arsenic, and  
                 microbes that can pose risks to the public health,  
                 especially pregnant women, infants, the elderly, and  
                 immunocompromised people.

               Supporters also argue that providing water quality  
                 information on the labels would also help to educate  
                 consumers about important water quality terms, such as  
                 "public health goal" that are currently used in public  
                 water system CCRs.

                iii)      Opponents of the bill argue that the bill's  
                 additional label requirements are unnecessary and  
                 preempted by federal law  .  Opponents to the bill  
                 reiterate their concerns that these labeling requirements  
                 are unnecessary, given existing federal law that  
                 prohibits the sale of any bottled water if it violates  
                 the laws that cover it.  They further assert that the  
                 labeling requirements will conflict with federal labeling  









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                 requirements and be preempted.  Opponents point out that  
                 in 1995, the FDA considered and rejected a requirement  
                 that bottled water labels specify the water source.   
                 Opponents contend that CCRs are not really used by the  
                 public in the way the sponsors contend, so requiring  
                 their preparation and distribution would waste time and  
                 money.  Also they say that the CCR information will not  
                 necessarily reflect existing conditions in the bottle  
                 because the measurements are from the previous year.   
                 Moreover, opponents state that given the space  
                 constraints posed by the limited surface area of bottled  
                 water containers, it would be difficult to provide  
                 consumer-friendly water quality information on labels  
                 that wouldn't be better provided in some other off-label,  
                 more comprehensive format, such as a report or a website.

               iv)         DHS has voiced similar preemption concerns  
                 regarding additional labeling  .  While not taking a stance  
                 on the merits of such additional labeling, DHS itself has  
                 stated that federal laws regarding nutrition and  
                 specifically bottled water labeling are quite specific,  
                 and would likely preempt the state from establishing  
                 substantial labeling requirements where those  
                 requirements significantly impacted interstate commerce.   
                 The department has cited at least one instance in 1997  
                 where federal courts agreed that federal law preempted  
                 the state from establishing a state identity standard for  
                 "spring water." 

                v)     Suggested Amendment: Smaller, one-sentence  
                 disclosures on labels may be more appropriate  .  Due  
                 concerns about workability issues of including CCR-type  
                 information on labeling and remaining likelihood of  
                 federal preemption of state labeling laws, it may be more  
                 appropriate for the label to require bottlers to include  
                 on their label a statement indicating both the  
                 availability and means of obtaining a CCR for the bottled  
                 water.

           1) Inspections of bottled and vended water facilities and  
             equipment would occur on a three-year rotating basis  .   
             Currently, DHS inspects bottled, vended, and retail water  
             facilities on an as-needed basis. 









                                                                AB 83
                                                                Page 17


              a)   Current Bill  .  This bill would subject bottlers and  
               vendors to inspections by DHS or an authorized  
               representative on a rotating three-year basis-with bottlers  
               being inspected the first year, and vended water  
               machines-some 8,600 statewide-being largely inspected the  
               second and third years. According to DHS, inspections of  
               bottled water facilities and vended water machines  
               currently occur on an as-needed basis-with a focus on  
               historical violators or consumer-identified problems.   
               Supporters contend that such inspections would ensure  
               regulatory conformity and could be accomplished  
               cost-effectively-and help to end situations where "bad"  
               actors purvey unimproved tap water as "vended water."

              b)   Opponents argue that inspections are duplicative,  
               unnecessary, and costly  .  Bottlers are not necessarily  
               opposed to increased inspections, but question their  
               necessity given existing oversight by both USFDA & DHS.   
               Vended water purveyors argue that inspecting all machines  
               is unnecessary and that they currently conduct a series of  
               water quality tests.  Again, vendors state that they do not  
               contaminate tap water and only improve tap water that must  
               already meet EPA MCLs.  Moreover, both bottlers and vendors  
               cite the lack of demonstrated need for increased  
               inspections in the absence of a demonstrated health risk  
               posed by both bottled and vended water.  Both state that  
               they are subject to trade association guidelines that are  
               in many respects more stringent that either federal or  
               state standards, and state that regular maintenance and  
               servicing by company employees obviates the need for  
               regular inspections by DHS.

               Concerned about the fiscal impact of reimbursing DHS for  
               inspection of all of its vended water machines, vendors  
               draw attention to the fact that there are some 8,600  
               machines located throughout the state.  Vendors argue that  
               inspecting all machines is unnecessary, and that a random  
               sample would suffice.
           
              c)   DHS has concerns about the impact of mandatory  
               inspections on its other duties. DHS has indicated that  
               while it dedicates six personnel years (PYs) to its bottled  









                                                                AB 83
                                                                Page 18

               and vended water division, actual employees shift away from  
               those duties on an as-needed basis to address far other,  
               far more prevalent health concerns, such as food-borne  
               outbreaks.  According to the department, a statutory  
               bottled and vended water inspection mandate that would not  
               seem to result in any measurable public health benefit  
               might constrain its ability to effectively respond to other  
               more pressing foodborne concerns.  The department has also  
               indicated that bottled and vended water have not presented  
               a historical public health risk and thus, inspections  
               performed on an as-needed basis have been sufficient to  
               ensure compliance.  

              d)   Combination of limited DHS-testing and enhanced  
               self-certification may provide cost-effective oversight.   
               Though increased oversight of both bottled and vended water  
               facilities seems appropriate, it does not seem necessary to  
               inspect all vended water machines in the state.  Perhaps  
               the department could conduct a random sample of a  
               particular company's machines or inspections that provide  
               particular focus for regions of concern (e.g. LA County or  
               Central Valley) would seem more appropriate.   
               Alternatively, to minimize the department's costs, but  
               ensure increased oversight of bottlers, vendors, and  
               retailers, the committee may wish to consider requiring  
               vendors, bottlers, and retailers to self-test and/or  
               self-certify the results of an enhanced range of water  
               quality tests for all facilities.  To provide an additional  
               level of oversight, the committee may also wish to consider  
               requiring DHS to conduct a series of limited tests that  
               would, for example, randomly subject licensees to an  
               inspection of some percentage of their machines/facilities.  
                

           1) Bill would replace existing licensing fees with cost-based  
             reimbursement.   
              The measure would support its regime of enhanced regulatory  
             oversight through cost-based reimbursement, i.e., licensees  
             would pay back the department for the costs of inspecting and  
             ensuring water quality compliance.   The sponsors 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  









                                                                AB 83
                                                                Page 19

             compared to funding that is generated by drinking water  
             program regulatory fees paid by public water systems, which  
             do reimburse the department for enforcement costs.   
             Opponents-especially Glacier Water-argue that requiring  
             licensees to reimburse DHS for unspecified and potentially  
             large costs of inspections would not only be costly-but  
             unnecessary.  If increased inspections were to be part of  
             this measure, opponents would prefer fixing fees at set  
             costs. 

           2) Proposed penalties may be better consolidated under existing  
             provisions under SDWA  .  This bill would provide civil and  
             monetary penalties for bottlers and vended water purveyors  
             that violate its provisions, similar to those existing for  
             public water systems under SDWA.  To provide greater clarity  
             and parity between bottled/vended water purveyors and public  
             water systems, it may be more appropriate to reorganize these  
             enforcement and penalty provisions within existing articles  
             of SDWA that deal specifically with violations, penalties,  
             and compliance orders.  

           3) Technical Amendment.  Given concerns that federal bottled  
             water laws might preempt certain provisions of this measure,  
             the author may wish to consider including a severability  
             clause to ensure the continued viability of unaffected  
             sections. 

           SOURCE  :        Clean Water Action, Natural Resources Defense  
                         Council
                         And East Bay Municipal Utilities District  

          SUPPORT  :       AIDS Project Los Angeles, American Federation of  
                         State, County and Municipal Employees,  
                         Association of California Water Agencies,  
                         Attorney General, State of California, Breast  
                         Cancer Action, Breast Cancer Fund, California  
                         Communities Against Toxics, California League of  
                         Conservation Voters, California Municipal  
                         Utilities Association, California Nurses  
                         Association, California Water Association, City  
                         and County of San Francisco, City of Hemet,  
                         Consumer Action, Consumers Union, Environmental  
                         Justice Coalition for Water, Gray Panthers  









                                                                AB 83
                                                                Page 20

                         California, Latino Issues Forum, Los Angeles  
                         County Board of Supervisors, Metropolitan Water  
                         District of Southern California, National  
                         Environmental Trust, Physicians for Social  
                         Responsibility-Los Angeles, Planning and  
                         Conservation League, San Francisco AIDS  
                         Foundation,  Santa Clara Valley Water District,  
                         Sierra Club California, Southern California Water  
                         Committee, West County Toxics Coalition, 30  
                         individuals  

          OPPOSITION  :    Arrowhead Mountain Spring Water, California  
                         Bottle Water Association, California Chamber of  
                         Commerce, California Grocers Association,  
                         California Nevada Soft Drink Association,  
                         California Taxpayers Association, Carlsbad  
                         Chamber of Commerce, Culligan Water, Danone  
                         Waters of North America, Glacier Water, Greater  
                         Fresno Area Chamber of Commerce, International  
                         Bottle Water Association, Latin Business  
                         Association, Los Angeles Area Chamber of  
                         Commerce, Mid Valley Chamber of Commerce,  
                         National Automatic Merchandising Association,  
                         Sacramento Metropolitan Chamber of Commerce, San  
                         Diego Chamber of Commerce, Yosemite Waters,  
                         Approximately 100 owners of grocery stores  
 

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