BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 220| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ UNFINISHED BUSINESS Bill No: SB 220 Author: Corbett (D) Amended: 9/7/07 Vote: 21 SENATE HEALTH COMMITTEE : 6-4, 4/18/07 AYES: Kuehl, Alquist, Cedillo, Ridley-Thomas, Steinberg, Yee NOES: Aanestad, Cox, Maldonado, Wyland NO VOTE RECORDED: Negrete McLeod SENATE APPROPRIATIONS COMMITTEE : 9-6, 5/31/07 AYES: Torlakson, Cedillo, Corbett, Florez, Kuehl, Oropeza, Ridley-Thomas, Steinberg, Yee NOES: Cox, Aanestad, Ashburn, Dutton, Runner, Wyland NO VOTE RECORDED: Battin, Simitian SENATE FLOOR : 23-16, 6/7/07 AYES: Alquist, Calderon, Cedillo, Corbett, Ducheny, Florez, Kehoe, Kuehl, Lowenthal, Migden, Negrete McLeod, Oropeza, Padilla, Perata, Ridley-Thomas, Romero, Scott, Simitian, Steinberg, Torlakson, Vincent, Wiggins, Yee NOES: Aanestad, Ackerman, Ashburn, Battin, Cogdill, Correa, Cox, Denham, Dutton, Harman, Hollingsworth, Machado, Maldonado, Margett, McClintock, Wyland NO VOTE RECORDED: Runner ASSEMBLY FLOOR : 44-33, 9/10/07 - See last page for vote SUBJECT : Vended water CONTINUED SB 220 Page 2 SOURCE : Clean Water Action Consumer Federation of California East Bay Municipal Utility District Latino Issues Forum DIGEST : This bill enhances the Department of Public Healths regulatory process governing water dispensed from WVMs and the labeling requirements for bottled water. Assembly Amendments (1) changed the telephone hotline number that must be referenced in the bottled water report required in the bill from the United States Environmental Protection Agency's Safe Drinking Water Hotline to the United States Food and Drug Administration, Food and Cosmetic Hotline, (2) clarified that the changes in the bottled water labeling requirements only apply to water bottled on or after January 1, 2009, (3) clarified that the changes made to the labeling section of the bill do not take effect until January 1, 2009, and (4) made other technical and conforming changes. ANALYSIS : Existing federal law: 1. Charges the Food and Drug Administration (FDA) with regulating bottled water as a food. The Federal Food, Drug, and Cosmetic Act provides the FDA with broad regulatory authority over food. 2. Under the Safe Drinking Water Act (SDWA), sets the framework for regulation of drinking water quality in the United States by the Environmental Protection Agency. Under the SDWA, a state is authorized to assume responsibility for managing the safety of its drinking water quality if the state is certified as having a program at least as stringent as, or more stringent than, the federal program. California has been given that authority. Existing state law: 1. Defines a "water-vending machine" (WVM) as any SB 220 Page 3 self-service device that, upon payment, dispenses a unit volume of water to be used for drinking, culinary, or other purposes involving a likelihood of the water being ingested by humans.
2. Prescribes various quality and labeling standards for both bottled and vended water, including mineral water, and also limits the levels of certain contaminants that may be contained in those water products. 3. Establishes a fee schedule for bottled and vended water licenses, and sets the annual fee for WVMs at $10.25. Effective July 1, 2007, responsibility for the administration of the above-mentioned provisions will be transferred to the Department of Public Health (DPH). 4. Requires weights and measures sealers to inspect and test packaged commodities and all commercially used devices and to inspect the validity of transactions derived from the use of such devices. 5. Requires bottled water, WVMs, and containers provided by retail water facilities to contain specified information and to be clearly labeled in an easily readable format. 6. Requires that WVMs, retail water facilities, and private water sources that sell water at retail sites display prescribed information. 7. Permits bottled water to be labeled "drinking water," notwithstanding the source or characteristics of the water, only if it is processed pursuant to the FDA Good Manufacturing Practices, and any other requirements established by the Department of Health Services (DHS). Any vended water and any water from a retail water facility may be labeled "drinking water," notwithstanding the source or characteristics of the water, only if it is processed pursuant to current state law related to vending machines and any other requirements established by DHS. Effective July 1, 2007, responsibility for the administration of the above-mentioned provisions will be transferred to DPH. SB 220 Page 4 This bill: 1. Requires a WVM to be designed to remove turbidity, off-tastes and odors, provide disinfection treatment, and reduce or remove dissolved solids. 2. Requires, starting January 1, 2009, a WVM to be cleaned, serviced, and sanitized at least once every 31 days, requires WVM owners to keep inspection and consumer complaint records and make them available to the DPH upon request. 3. Requires DPH, starting January 1, 2009, to inspect at least 20 percent of WVMs annually, allows DPH to conduct more frequent and timely inspections of WVMs that violate the above provisions, and allows DPH to embargo a violating WVM and impose any penalty that DPH deems appropriate. 4. Increases, from $16 to $40, the annual license fee paid by WVM owners to DPH for each machine in operation. This license fee is annually adjusted to reflect inflation and other cost factors. 5. Requires the telephone number WVM owners and other retail vendors of water must currently provide for further information, service, or complaints to be toll-free or local, and requires the applicable DPH toll-free telephone to be posted. 6. Requires inspection information, container recommendations, and the WVM license decal or seal to be posted, and requires all information to be posted in both English and Spanish. 7. Requires bottled water plants, as a condition of licensure, to annually prepare a bottled water report that includes various statements as prescribed and requires the report be made available to consumers. 8. Requires bottled water sold in a beverage container to include, on its label, additional label or on a package insert, the name and contact information for the bottler or brand owner, the source of the water in the bottle, SB 220 Page 5 contact information for obtaining a bottled water report on the quality of the water and other related information, as prescribed. 9. Requires bottlers who sell directly to consumers to include, on each billing statement, contact information for the bottler or brand owner and the how to obtain a bottled water report on the quality of the water. 10.Requires DPH, in its annual budget report to the Legislature, to provide information on WVM and bottled water licenses, inspections, violations and corrective actions, and fines levied. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: Yes According to the Senate Appropriations Committee: Fiscal Impact (in thousands) Major Provisions 2007-08 2008-09 2009-10 Fund Vendor inspections (DPH) $0 $142 $142General SUPPORT : (Verified 9/10/07) Clean Water Action (co-source) Consumer Federation of California (co-source) East Bay Municipal Utility District (co-source) Latino Issues Forum (co-source) Association of California Water Agencies California League of Conservation Voters California Trout California Watershed Network Culligan Environment California Environmental Justice Coalition for Water Environmental Working Group Food & Water Watch Irvine Ranch Water District Learning Disabilities Association of California Metropolitan Water District of Southern California SB 220 Page 6 National Resources Defense Council Planning and Conservation League San Francisco Public Utilities Commission San Jerardo Cooperative, Inc. Santa Clara Water District Santa Rosa Water District Sierra Club California Sonoma County Water Agency OPPOSITION : (Verified 9/10/07) California Bottled Water Association California Chamber of Commerce California Grocers Association International Bottled Water Association ARGUMENTS IN SUPPORT : The East Bay Municipal Utility District (EBMUD), the co-sponsor of this bill, writes that bottled water quality information is not consistently made available to consumers and that many vended water facilities are not clearly labeled or regularly inspected. EBMUD contends that this bill will provide improved consumer protection so that consumers can make informed choices about the drinking water they consume. The Learning Disabilities Association of California writes that this bill will ensure that purchasers of bottled and vended water are getting a safer, toxic-free product and that consumers have readable product information and phone numbers to call if questions or problems arise. The Environmental Working Group (EWG) contends that consumers pay 100 times more for vended water than for tap water and even higher prices for bottled water, and they have a right to know what is in this water. EWG also writes that the findings of their studies show that current laws governing vended and bottled water are not properly enforced and that this bill addresses this problem by setting up an inspection program. The Sierra Club of California and the Natural Resources Defense Council write that the state agency currently tasked with enforcing bottled and vended water regulations exercise limited oversight. They state that, in the case of vended water, inspections are conducted only when complaints are received and this puts low-income communities, who rely on vended water as their primary drinking water, at a disadvantage. SB 220 Page 7 ARGUMENTS IN OPPOSITION : The California Chamber of Commerce writes that bottled water is regulated as a food product under the FDA, which subjects the industry to specific packaging, sanitation, and food processing laws and that testing requirements, inspections and monitoring rules are already in place. The Chamber contends that since their members market products nationally and worldwide, it is more efficient to have national standards rather than state-only requirements, which add costs to products and complexities to distribution systems. The California Grocers Association (CGA) is concerned that the requirements of this bill are unnecessary in light of existing laws and regulations. CGA states that federal law already establishes maximum chemical contaminant levels and state law already specifies labeling requirements. CGA further states that bottled water is considered a food product under federal law and is subject to comprehensive statutory and regulatory framework. CGA contends that given this food product status, it seems impractical to change the state regulation, as bottled water will still be subject to federal packaging, sanitation, and food processing requirements. The California Nevada Soft Drink Association opposes this bill because existing state and federal law(s) already provides for the licensure and regulation of entities that produce bottled water, federal law establishes requirements for maximum chemical containment levels, and they fail to see the need for distributing the kinds of information contained in the CCR. The California Bottled Water Association writes that this bill imposes added costs and regulations to the industry but provides no greater consumer protections. ASSEMBLY FLOOR : AYES: Arambula, Bass, Beall, Berg, Brownley, Caballero, Charles Calderon, Carter, Coto, Davis, De La Torre, De Leon, DeSaulnier, Dymally, Eng, Evans, Feuer, Fuentes, Hayashi, Hernandez, Huffman, Jones, Karnette, Krekorian, Laird, Leno, Levine, Lieber, Lieu, Ma, Mendoza, Mullin, Nava, Portantino, Price, Ruskin, Salas, Saldana, Solorio, Soto, Swanson, Torrico, Wolk, Nunez NOES: Adams, Aghazarian, Anderson, Benoit, Berryhill, Blakeslee, Cook, DeVore, Duvall, Emmerson, Fuller, SB 220 Page 8 Gaines, Galgiani, Garcia, Garrick, Horton, Houston, Huff, Jeffries, Keene, La Malfa, Maze, Nakanishi, Niello, Parra, Plescia, Sharon Runner, Silva, Smyth, Spitzer, Tran, Villines, Walters NO VOTE RECORDED: Hancock, Strickland, Vacancy CTW:mw 9/11/07 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****