BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



           ------------------------------------------------------------ 
          |SENATE RULES COMMITTEE            |                   AB 301|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 651-1520         Fax: (916) |                         |
          |327-4478                          |                         |
           ------------------------------------------------------------ 
           
                                         
                                 THIRD READING


          Bill No:  AB 301
          Author:   Fuentes (D), et al
          Amended:  8/17/10 in Senate
          Vote:     21

           
           SENATE HEALTH COMMITTEE  :  7-3, 6/10/09
          AYES:  Alquist, Cedillo, DeSaulnier, Leno, Maldonado,  
            Negrete McLeod, Wolk
          NOES:  Strickland, Aanestad, Cox
          NO VOTE RECORDED:  Pavley

           SENATE ENV. QUALITY COMMITTEE  :  5-2, 6/22/09
          AYES:  Simitian, Corbett, Hancock, Lowenthal, Pavley
          NOES:  Runner, Ashburn

           SENATE APPROPRIATIONS COMMITTEE  :  7-4, 8/12/10
          AYES:  Kehoe, Alquist, Corbett, Leno, Price, Wolk, Yee
          NOES:  Ashburn, Emmerson, Walters, Wyland
           
          ASSEMBLY FLOOR  :  49-27, 5/11/09 - See last page for vote


           SUBJECT  :    Vended water

           SOURCE  :     Food and Water Watch


           DIGEST  :    This bill requires applicants for licenses to  
          bottle water in California report the volume of the water,  
          the source, and the county of the source to the Department  
          of Public Health, and requires the Department of Public  
          Health to compile this information and make it available to  
                                                           CONTINUED





                                                                AB 301
                                                                Page  
          2

          the public.

           ANALYSIS  :    Existing federal law authorizes the Federal  
          Food and Drug Administration to regulate standards for  
          bottled water products in interstate commerce, under the  
          Federal Food, Drug and Cosmetic Act.

          Existing federal law authorizes the United States  
          Environmental Protection Agency to regulate standards for  
          tap water, under the Safe Drinking Water Act.

          Existing state law establishes the Department of Public  
          Health (DPH), Food and Drug Branch, which is responsible  
          for licensing and regulating manufacturers of bottled water  
          and providers of vended water.

          The Sherman Food, Drug, and cosmetics Law prescribes  
          various quality and labeling standards for bottled water  
          and vended water, and limits the levels of certain  
          contaminants that may be contained in those water products.

          Existing state law requires a water-bottling plant to  
          annually prepare a bottled water report, including  
          information about the source of the bottled water (i.e., a  
          spring, drilled well, or municipal water supply), as a  
          condition of licensure.  Existing law requires that the  
          report include a brief description of the treatment process  
          used for producing the bottled water.

          Existing state law requires DPH to charge and collect a fee  
          for each license application submitted, in an amount  
          reasonably necessary to produce sufficient revenue for  
          DPH's enforcement efforts, and in accordance with a  
          prescribed fee schedule.

          This bill:

          1.Requires those applicants who apply for a license as a  
            water-bottling plant or a private water source in the  
            state, to provide to DPH:

             A.    The total volume of the water bottled or sold for  
                wholesale or retail use during a specified time  
                period preceding the application submission, or an  







                                                                AB 301
                                                                Page  
          3

                estimate of the total volume of water the applicant  
                expects to bottle or sell during the period of  
                licensure.

             B.    Whether the source of the water was a public or  
                private water agency, or artesian well, lake, river,  
                or spring.

             C.    The county where the source of water is located.

          2.Requires DPH to annually compile a listing of this  
            information and make it available to the public.

          3.Requires DPH to ensure the report does not contain  
            duplicative data as to applicants who apply for both a  
            water-bottling plant license and a private water source  
            license.

          4.Stipulates that water from a private water source that is  
            sold or delivered to a water-bottling plant shall be  
            reported separately from water sold or delivered for  
            other uses from that same water source.

           Background
           
          According to DPH, bottled water is sold or distributed to  
          consumers in sealed containers for drinking, culinary, or  
          other purposes involving a likelihood of being ingested by  
          humans.  Bottled water must be bottled only at a licensed  
          water bottling plant.  Vended water is water dispensed by a  
          water vending machine, retail water facility (or store),  
          water from a private water source, or water delivered by a  
          water hauler for drinking, culinary, or other purposes  
          involving a likelihood of being ingested by humans.  Vended  
          waster does not include bottled water.

          The governor proclaimed a Water Shortage State of Emergency  
          in February 2009, claiming that the state is in its "third  
          consecutive year of drought," where he described that "the  
          rainfall and snowpack deficits in each year of the current  
          drought have put California further and further behind in  
          meeting essential water needs."  The drought is also  
          affecting our agriculture industry.  According to the  
          governor, "the lack of water has forced California farmers  







                                                                AB 301
                                                                Page  
          4

          to abandon or leave unplanted more than 100,000 acres of  
          agricultural land" which could cost Californians jobs and  
          increase food prices.  Continued unchecked depletion of the  
          potable water supply could also pose a threat to our  
          emergency preparedness efforts, which could make residents  
          even more vulnerable during a disaster.

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

          According to the Senate Appropriations Committee:

                          Fiscal Impact (in thousands)

             Major Provisions                2010-11     2011-12     
             2012-13               Fund  

            Compiling and       $50       $40       $40        
            General
            publicizing information

           SUPPORT  :   (Verified  8/16/10)

          Food and Water Watch (source)
          Alliance for Democracy
          American Federation of State, County and Municipal  
          Employees
          Amigos de los Rios
          Breast Cancer Fund
          California Apollo Alliance
          California Coastkeeper Alliance
          Center on Policy Initiatives 
          Clean Water Action
          Concerned Citizen's Coalition of Stockton
          Concerned McCloud Citizens
          East Bay Municipal Utility District
          Ella Baker Center for Human Rights Environmental Working  
          Group 
          Friends of the Los Angeles River
          McCloud Watershed Council
          Movement Generation
          Planning and Conservation League
          San Diego Area Municipal Employees Union
          San Diego Bay Council







                                                                AB 301
                                                                Page  
          5

          Santa Clarita Organization for Planning and the Environment
          Santa Monica Baykeeper
          Southern California Watershed Alliance
          TreePeople
          Tuolumne River Trust
          Urban Semillas
          Wildcoast

           OPPOSITION  :    (Verified  8/16/10)

          Department of Public Health

           ARGUMENTS IN SUPPORT  :    Supporters contend that credible  
          and transparent information would help both the public and  
          decision makers to understand more accurately the impacts  
          of proposed bottle-water facilities in California.  Without  
          this information, local communities and decision makers may  
          now know exactly how much of their local water supply is  
          sold and transported out of the local area.

           ARGUMENTS IN OPPOSITION  :    DPH does not believe that this  
          bill will provide any improvement in public health  
          protection to California consumers.  DPH feels that the  
          information they already collect regarding the identity of  
          source water from bottlers is sufficient to ensure quality.  
           DPH also believes the information they are being asked to  
          collect may be considered proprietary, because it can act  
          as an indicator of the company's financial health.  
           

           ASSEMBLY FLOOR  : 
          AYES:  Ammiano, Arambula, Beall, Block, Blumenfield,  
            Brownley, Buchanan, Caballero, Charles Calderon, Carter,  
            Chesbro, Coto, Davis, De La Torre, De Leon, Eng, Evans,  
            Feuer, Fong, Fuentes, Furutani, Hall, Hayashi, Hernandez,  
            Hill, Huffman, Jones, Krekorian, Lieu, Bonnie Lowenthal,  
            Ma, Mendoza, Monning, Nava, John A. Perez, V. Manuel  
            Perez, Portantino, Price, Ruskin, Salas, Saldana,  
            Skinner, Solorio, Swanson, Torlakson, Torres, Torrico,  
            Yamada, Bass
          NOES:  Adams, Anderson, Bill Berryhill, Tom Berryhill,  
            Blakeslee, Conway, Cook, DeVore, Emmerson, Fletcher,  
            Fuller, Gaines, Garrick, Gilmore, Hagman, Harkey,  
            Jeffries, Knight, Logue, Miller, Nestande, Niello,  







                                                                AB 301
                                                                Page  
          6

            Nielsen, Silva, Audra Strickland, Tran, Villines
          NO VOTE RECORDED:  Duvall, Galgiani, Huber, Smyth


          CTW:mw  8/17/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

                                ****  END  ****