BILL ANALYSIS AB 301 Page 1 Date of Hearing: April 22, 2009 ASSEMBLY COMMITTEE ON APPROPRIATIONS Kevin De Leon, Chair AB 301 (Fuentes) - As Amended: April 1, 2009 Policy Committee: Environmental Safety Vote: 5-1 Urgency: No State Mandated Local Program: Yes Reimbursable: No SUMMARY This bill requires certain applicants for the annual bottled-water license issued by the Food and Drug Branch of the Department of Public Health (DPH) to include information on volumes and sources, and requires the department to annually compile this information and make it available to the public. FISCAL EFFECT Minor costs, about $70,000 in 2010-11 and $40,000 annually thereafter, to the DPH to compile licensee information and make it available to the public. To the extent revenue generated by bottled-water licenses is not adequate to cover these costs, they would have to be covered by a General Fund appropriation. (GF or Food Safety Fund.) COMMENTS 1)Rationale . The author wants the DPH Food and Drug Branch to compile more information on the volume and sources of water bottled in California. The author notes that water extracted from local sources by bottlers and exported for sale in other areas is not available to local water users, thus effectively reducing a community's water supply. The author believes that decisions to extract and bottle water for export are made without consideration of the effect of such decisions on local water supplies. The author concludes that compilation of the information described in this bill will focus more attention on the potential negative effects on local communities that may result from extracting water from a local source for bottling and exportation. AB 301 Page 2 2)Prior Legislation . This bill is identical to AB 2275 (Fuentes, 2008), which passed the Assembly 47 to 27, and was rejected by the governor with a generic veto applied to numerous bills. 3)The McCloud Situation . In 2003, the Community Service District for the town of McCloud (Siskiyou County) contracted with Nestle Waters North American to sell a potion of McCloud's spring water without undertaking an environmental review to determine the water supply and other impacts of selling the spring water and to examine alternatives and impact mitigation measures. A group called "Concerned McCloud Citizens," filed a lawsuit against Nestle in 2004, winning the case in 2005. Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081