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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                                 THIRD READING


          Bill No:  AB 83
          Author:   Corbett (D), et al
          Amended:  8/27/03 in Senate
          Vote:     21

           
           SENATE HEALTH & HUMAN SERV. COMMITTEE  :  9-2, 7/9/03
          AYES:  Ortiz, Alarcon, Chesbro, Escutia, Figueroa, Florez,  
            Kuehl, Romero, Vincent
          NOES:  Aanestad, Ashburn
          NO VOTE RECORDED:  Battin, Vasconcellos

           SENATE ENV. QUALITY COMMITTEE  :  5-2, 8/21/03
          AYES:  Sher, Chesbro, Figueroa, Kuehl, Romero
          NOES:  Denham, McPherson

           ASSEMBLY FLOOR  :  41-33, 6/4/03 - See last page for vote


           SUBJECT  :    Bottled water

           SOURCE  :     Clean Water Action
                      East Bay Municipal Utility District
                      Natural Resources Defense Council


           DIGEST  :    This bill 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,  
                                                           CONTINUED





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          and Cosmetic Law to the Safe Drinking Water Act, and  
          authorizes the State Department of Health Services 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. 

           ANALYSIS  : 

          This bill:  

          1. Transfers the provisions, under current law relating to  
             the licensure and regulation of persons engaged in  
             bottled and vended water activities from the Sherman Law  
             to SDWA.  Authorizes, however, pursuant to the Sherman   
             Law, bottled water to be prepared with added flavors,  
             extracts, essences, or fruit juice concentrates as  
             specified, and requires specified information on  
             labeling and in advertising this bottled water product.

          2. Requires bottled water licensees to comply with  
             provisions similar to those imposed on PWS 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 above provisions.

          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.








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          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.

          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 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 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  







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             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 PWS 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 PWS.

             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 the  
                source of the bottled water and a "California Water  
                Quality Notice" to include the statement:  "For more  
                information and to obtain additional consumer  
                information relating to water quality, including a  
                consumer confidence report, contact [bottled water  
                company name] at [telephone number or toll-free  
                telephone number] and [at least one or more of the  
                following:  mailing address, E-mail address, and  
                bottled water company Web site address].  Defines  
                "source" as an identification of the product's water  
                as being from a spring, well, artesian well, or  
                public water system.  If a product's water is a mix,  
                blend, or combination of sources, then "source" means  
                an identification of all of those sources.

          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 DHS 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  







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             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 DHS for actual  
             enforcement costs incurred by DHS 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
           
          According to the author's office:

            "Nearly 70% of all Californians consume 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.  








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            "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 water product.  Unlike PWS, 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."

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

           SUPPORT  :   (Verified  8/28/03)

          Clean Water Action (co-source)
          East Bay Municipal Utility District (co-source)
          Natural Resources Defense Council (co-source)
          AIDS Project Los Angeles
          American Federation of State, County and Municipal  
                         Employees
          Association of California Water Agencies
          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 California
          Latino Issues Forum
          Los Angeles County Board of Supervisors
          Metropolitan Water District of Southern California







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          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
          State Attorney General
          West County Toxics Coalition
          Numerous individuals  
           
           OPPOSITION  :    (Verified  8/28/03)

          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
          Numerous grocery store owners

           ARGUMENTS IN SUPPORT  :    East Bay Municipal Utility  
          District (EBMUD), one of the bill's sponsors, states that  
          this bill "eliminate[s] 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  







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          Program.  
           
           Proponents of this bill state that this move helps 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 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.   
           
          Proponents argue that the information provided in this bill  
          will give 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 this 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  
          immuno-compromised people.

           ARGUMENTS IN OPPOSITION  :    Opponents of this 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 PWS.  It says that PWS 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  







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          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.   
           
          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  
          PWS 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.


           ASSEMBLY FLOOR  : 
          AYES:  Berg, Bermudez, Chan, Chu, Cohn, Corbett, Correa,  
            Diaz, Dymally, Firebaugh, Frommer, Goldberg, Hancock,  
            Harman, Jackson, Kehoe, Koretz, Laird, Leno, Levine,  
            Lieber, Liu, Longville, Lowenthal, Montanez, Mullin,  
            Nakano, Nation, Nunez, Oropeza, Parra, Pavley, Reyes,  
            Ridley-Thomas, Salinas, Simitian, Steinberg, Wiggins,  
            Wolk, Yee, Wesson
          NOES:  Aghazarian, Bates, Benoit, Bogh, Campbell,  
            Canciamilla, Cogdill, Cox, Daucher, Dutton, Garcia,  
            Haynes, Shirley Horton, Houston, Keene, La Malfa, La  
            Suer, Leslie, Maddox, Maldonado, Matthews, Maze,  
            McCarthy, Mountjoy, Nakanishi, Pacheco, Plescia, Richman,  
            Runner, Samuelian, Spitzer, Strickland, Wyland


          CP:mel  8/28/03   Senate Floor Analyses 








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                         SUPPORT/OPPOSITION:  SEE ABOVE

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