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