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BILL ANALYSIS                                                                                                                                                                                                    




                    Appropriations Committee Fiscal Summary
          
                                           83 (Corbett)
          
          Hearing Date:  8/28/03          Amended: 8/27/03       
          Consultant:  George Cate            Policy Vote: H&HS 9-2  
          ENV Q 5-2                
          ____________________________________________________________ 
          ___
          BILL SUMMARY: 
          
          AB 83 creates a new program requiring bottled water and  
          water vending machines to meet new licensure requirements  
          similar to those imposed on public water systems regarding  
          emergency notification plans, consumer confidence reports,  
          specified labeling requirements and annual inspections.   
          This bill also transfers existing provisions relating to  
          the licensure and regulation of bottled water from the  
          Sherman, Food, Drug, and Cosmetic Law to the Safe Drinking  
          Water Act, and authorizes the Department of Health Services  
          (DHS) to revise the annual license fee schedule for persons  
          engaged in activities relating to bottled water and water  
          vending machines to cover the costs of this legislation.

                              Fiscal Impact (in thousands)
           
          Major Provisions        2003-04            2004-05               2005-06   
           Fund  
          
          Administration &             500        1,400         1,400General*
             enforcement

               * Potentially offset by license fee revenue

          
          STAFF COMMENTS:  
          
          This bill meets the criteria to be placed on the Suspense  
          file.

          DHS has estimated that the costs to start up this expanded  
          licensure program would be approximately $500,000 for the  
          first year and approximately $1.4 million per year to  
          administer and enforce the ongoing program.  The bill makes  
          no provision to cover the initial start-up costs.  So there  
          would be pressure to use General Fund money to cover some  










          of these costs.  However, eventually the revised fee  
          revenues would be sufficient to cover the annual ongoing  
          costs.