Plans for new labels which would have warned Californian consumers about the dangers of sugary drinks have been sidelined.
The laws were on course to be enacted after being approved by the Senate Health Committee.
However, the bill failed to pass the next hurdle as it was moved to the suspense file by the Senate Appropriations Committee – because of the high cost of enforcement.
The bill, which was introduced by Democratic State Senator Bill Monning, would require warning labels to be put on all beverage containers with added sweeteners that have 75 calories or more per 12 ounces.
The labels were developed by a national panel of nutrition and public health experts and would contain the following statement:
STATE OF CALIFORNIA SAFETY WARNING: Drinking beverages with added sugar(s) contributes to obesity, diabetes, and tooth decay.
Senator Monning promised to work towards reducing the £231,097 ($390,000) in immediate costs of enforcement of the bill so it can be sent back to another vote.
According to research, sugary drinks are the single largest contributor of surplus calories in the American diet.
Recent polls suggest that 74% of Californian voters regardless of their political affiliation support the measure.