BILL ANALYSIS                                                                                                                                                                                                    







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          |Hearing Date:January 11, 2006  |Bill No:SB                |
          |                               |162                       |
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            SENATE COMMITTEE ON GOVERNMENT MODERNIZATION, EFFICIENCY, AND  
                                   ACCOUNTABILITY
                             Senator Liz Figueroa, Chair

                    Bill No:  SB 162      Author:  Senator Ortiz
                    As Amended:  March 30, 2005        Fiscal:Yes

          
          SUBJECT:  State Department of Public Health.
          
          SUMMARY:  Establishes a Department of Public Health (DPH) within  
          the Health and Human Services Agency, and transfers various  
          responsibilities relating to public health, currently  
          administered by the Department of Health Services (DHS), to the  
          new department.  Establishes a 13-member Public Health Board to  
          provide public and expert involvement in the development of  
          policies, regulations, and programs administered by the DPH or  
          directly affecting the health of Californians.  Requires this  
          bill to be implemented on January 1, 2007, but only if an  
          appropriation for the purposes of this bill is made in the  
          Budget Act of 2006.

          Existing law:  Establishes the DHS within the Health and  
          Human Services Agency and gives the DHS responsibility over  
          a variety of health-related programs, including public  
          health, Medi-Cal and other public aid health care programs.

          This bill:

          1)Establishes the DPH within the Health and Human Services  
            Agency, under the control of a State Health Officer who is a  
            licensed physician appointed by the Governor and confirmed by  
            the Senate.

          2)Provides that the DPH succeeds to, and is vested with, the  
            duties, purposes, responsibilities, and jurisdiction exercised  
            by the DHS, as specified, with respect to all the following  
            provisions of law:






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             a)   The Office of Binational Border Health;
             b)   The Public Health Federal Fund, and the state laboratory  
               in Richmond;
             c)   Regulation of laboratories;
             d)   Provisions of law relating to local health officers;
             e)   Vital Records and Health Statistics;
             f)   Disease Prevention and Health Promotion;
             g)   Environmental Health;
             h)   Communicable Disease Prevention and Control; and,
             i)   Maternal, Child and Adolescent Health Care.

          3)States the intent of the Legislature that the jurisdiction of  
            the DPH also includes other programs that are related to  
            public health.

          4)Transfers the Division of Rural Health from the DHS to the  
            DPH.

          5)Transfers the Office of AIDS from the DHS to the DPH.

          6)Transfers the authority to commence all proper and necessary  
            actions for the following purposes from the DHS to the DPH:   
            to conjoin and abate nuisances dangerous to health; to compel  
            the performance of any act specifically enjoined upon any  
            person, officer, or board, by any law of this state relating  
            to public health; and, to protect and preserve the public  
            health.

          7)Transfers the authority to perform certain activities to  
            protect, preserve and advance the public health from the DHS  
            to the DPH, including studies, demonstrations of innovative  
            methods, provision of training programs, and dissemination of  
            information.

          8)Requires the DPH to have the same rulemaking authority vested  
            in the DHS with respect to those programs transferred from  
            that department.  Requires all regulations heretofore adopted  
            by the DHS relating to public health or any other function  
            performed by the DHS to remain in effect and be fully  
            enforceable unless and until readopted, amended, or repealed  
            by the State Health Officer.

          9)Transfers from the DHS to the DPH the requirement to maintain  
            a laboratory and branch laboratories as may be necessary to  
            perform the microbiological, physical, and chemical analyses  
            required to meet the responsibilities of the DPH.





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          10)States the intent of the Legislature that all public health  
            programs currently operated through the DHS to be transferred  
            to the DPH, without regard to whether or not that public  
            health program has been formally created by statute, and  
            defines "public health program," for purposes of this intent  
            language, as referring primarily to programs and functions  
            that seek to prevent illness and promote health, as compared  
            to programs involving either the direct delivery of health  
            care services or the payment for those services.

          11)Establishes the Public Health Board (Board) to provide public  
            and expert involvement in the development of policies,  
            regulations, and programs administered by the DPH or directly  
            affecting the health of Californians.

          12)Requires the Board to consist of 13 voting members, as  
            follows:

             a)   A dean of a California school of public health,  
               appointed by the Governor;
             b)   A dean of a California school of nursing, appointed by  
               the Governor;
             c)   A dean of a California school of medicine, appointed by  
               the Governor;
             d)   A public laboratory director, appointed by the Governor;
             e)   Two public members of national stature with broad  
               experience and professional expertise in public health, one  
               each appointed by the Speaker of the Assembly and the  
               Senate Committee on Rules;
             f)   Two members from community-based organizations with an  
               interest and mission of promoting public health, one each  
               appointed by the Speaker of the Assembly and the Senate  
               Committee on Rules;
             g)   The State Health Officer (who is required to be the  
               chairperson);
             h)   The physician leader of the state's medical emergency  
               response system;
             i)   The President of the California Conference of Local  
               Health Officers;
             j)   The health officer of a large metropolis, appointed by  
               the President of the California Conference of Local Health  
               Officers; and,
             aa)  A rural health officer, appointed by the President of  
               the California Conference of Local Health Officers.






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          13)Requires members of the Board to serve on a voluntary basis  
            and not receive any compensation for the performance of their  
            duties.

          14)Requires the Board to be provided independent professional  
            staff through the reassignment of existing resources.

          15)Requires the Board to do all of the following:

             a)   Through public meetings, provide oversight of public  
               health programs and regulations to improve effectiveness,  
               examine ways to better use existing resources, analyze  
               cost-effective alternatives for improving the health and  
               safety of Californians, and comment on regulations that  
               will affect the public health;
             b)   Encourage the participation of related government  
               agencies, such as the health professions boards and the  
               National Guard, as well as foundations and professional  
               associations, including the County Health Executives  
               Association, the Public Hospital Association, the  
               California Medical Association, the California Health Care  
               Association, the Western Occupational and Environmental  
               Medical Association, the California Conference of Local  
               Health Department Nursing Directors, and the public health  
               associations;
             c)   Systematically assess the opportunities to consolidate  
               or coordinate the work of other state health-related  
               advisory boards, such as the Health Policy and Data  
               Advisory Committee of the Office of Statewide Health  
               Planning and Development;
             d)   Encourage the development of effective partnerships to  
               tap the expertise of California's universities, academic  
               medical centers, community clinics, foundations, private  
               medicine, and the National Guard;
             e)   Explore strategic relationships with biotechnology and  
               other high technology sectors; and,
             f)   Report at least annually to the Governor and Legislature  
               on the priorities for government actions to improve the  
               public health and on ways resources could be used more  
               effectively.

          16)Requires the DHS, or the DPH if it has been established  
            pursuant to this bill, to convene a workgroup of experts to  
            develop specific recommendations on the creation of the DPH  
            and how the DPH fits into a long-term strategy to improve the  
            future of public health leadership in California.  Requires  





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            the workgroup to provide its recommendations and strategy to  
            the Governor and Legislature six months after the convening of  
            the workgroup.  Specifies that this provisions shall only be  
            implemented upon the receipt by the DHS of sufficient nonstate  
            resources to cover all costs, including the costs of staff  
            resources and of implementing this section.  Specifies that  
            the establishment of the DPH is not contingent upon the  
            formation or recommendations of this workgroup.

          17)Specifies that this bill, with the exception of the working  
            group described above, becomes operative on January 1, 2007,  
            and only if an appropriation for the purposes of this bill is  
            made in the Budget Act of 2006.

          FISCAL EFFECT:  Unknown.

          COMMENTS:
          
          1)Purpose.  According to the author, public health programs  
            and goals are constantly overlooked and overshadowed by  
            the Medi-Cal program.  Furthermore, several independent  
            studies have concluded that California suffers from a  
            severe lack of strong and effective state public health  
            leadership.  A new department would create the  
            opportunity to build strong leadership, resulting in  
            increased protection of the public health and safety for  
            Californians.

          California's local public health officers are among the  
            first responders to any public health threat, and are the  
            first to identify unusual disease occurrences.  These  
            officials must not only respond to threats of  
            bioterrorism, but must continue to control the spread of  
            diseases such as meningitis, HIV, hepatitis C, and  
            Chlamydia, among others.  Counties rely on local public  
            health agencies to detect and respond effectively to  
            significant threats, including major outbreaks of  
            infectious disease, pathogens resistant to antimicrobial  
            agents, and acts of bioterrorism.
           
          2)Senate Public Health Hearing.  On June 2, 2004, the Senate  
            Health and Human Services Committee held a hearing titled  
            "Public Health:  Will California Rise to the Challenge?"   
            Representatives from a variety of organizations, including  
            RAND, the Little Hoover Commission, the California Medical  
            Association, the California Conference of Local Health  





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            Officers, and the County Health Executives Association of  
            California testified before the Committee regarding the nature  
            of work undertaken by DHS, the role of public health at that  
            state and local levels, and the need for a separate State DPH.  
             Studies on the subject by the Little Hoover Commission and  
            RAND were reviewed and a Legislative Analyst Office analysis  
            of the Little Hoover Commission report was shared with members  
            of the Committee.

          3)Little Hoover Commission Reports.  In April 2003, the Little  
            Hoover Commission released a report that found that  
            California's public health leadership and organizational  
            structure is ill-prepared to fulfill the primary obligation of  
            reducing injury and death from threats to public health such  
            as environmental hazards, bioterrorism and emerging infectious  
            diseases.  The report recommended that a public health  
            department, separate from Medi-Cal and other public health  
            insurance programs, be created to focus on emerging threats,  
            with physician and science-based leadership and an advisory  
            board that links California's health assets and experts.  The  
            report went on to name core public health functions that the  
            new department should undertake, including laboratory,  
            surveillance, and prevention services; emergency services;  
            food, drug, and drinking water safety; and functions of the  
            Office of Statewide Health Planning and Development (OSHPD).

          The Little Hoover Commission conducted their study because of  
            concerns about the ability of California's public health  
            system to respond to a large-scale public health emergency,  
            especially in light of the elevated concerns as the United  
            States faces potential threats of bioterrorism.  With the  
            events following September 11, 2001, many are concerned that  
            possible terror attacks may include unconventional weapons,  
            such as biological pathogens.

          In June of 2005, the Little Hoover Commission followed up on its  
            April 2003 report and other recommendations it has made in the  
            past few years regarding the preparedness of California to  
            respond to emergencies.  The Commission stated that it found  
            that several of its prior recommendations for improvements  
            have not been made a priority, and urged the Governor and the  
            Legislature to prioritize certain recommendations, including  
            enacting legislation to establish the separate department of  
            public health, with physician leadership and with advice and  
            oversight of a scientific public health board.






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          4)RAND Study.  In June 2004, the RAND Center for Domestic and  
            International Health Security released a report that examined  
            California's public health preparedness as a result of a  
            request for this information by the Little Hoover Commission.   
            To complete their assessment, they reviewed the federal  
            Centers for Disease Control and Prevention (CDC) Local  
            Preparedness Capacity Inventories from 2002 and conducted a  
            series of site visits to determine preparedness for a public  
            health emergency.  Among their findings were:

             a)   There is widespread variation among local health  
               jurisdictions with respect to ability to respond to  
               infectious disease outbreaks and other public health  
               threats;
             b)   There is considerable ambiguity surrounding the  
               appropriate roles for a local health jurisdiction, other  
               local agencies and the DHS;
             c)   There appears to be lacking a strong, central leadership  
               and coordination of public health; and,
             d)   The current organization of public health preparedness  
               activities in California leads to redundancies and  
               inefficiencies. 

            Based on those findings, RAND made a number of  
            recommendations, including that the organization of public  
            health in California be examined and that the role of strong,  
            central leadership focused on public health at a state level  
            is a key component to that reexamination.  The study also  
            called for improvement in the statewide epidemiologic  
            information system and the maintenance of a highly skilled  
            public health workforce in California, including workforce  
            planning activities.  Finally, the report called for an  
            evaluation of public health preparedness at the state level to  
            more fully understand the preparedness issues identified in  
            the report.  According to RAND, such an analysis would be  
            considered background work required prior to reorganization of  
            public health in California.

            In cases involving major disease outbreaks, city, county, and  
            state health departments act as the nation's first line of  
            defense, supported by the CDC, the National Institutes of  
            Health, and other federal agencies.  Local health departments  
            serve as the backbone for detection and response to a  
            biological weapons attack, supporting local law enforcement,  
            fire departments, and HAZMAT teams in identifying the  
            bacteria, and controlling its spread.





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          1)LAO Analysis.  In early 2004, the author of this bill  
            requested that the LAO analyze the Little Hoover Commission  
            report.  The LAO analysis outlined the advantages and  
            disadvantages of creating a DPH.  According to the report, DHS  
            is projected to dedicate over 48% of its staff and 96% of its  
            total resources to health service delivery (for Medi-Cal and  
            other health care programs) in 2003-04.  Therefore, the  
            distribution of resources may have effect on the focus of the  
            DHS and its leadership on the Medi-Cal program.

          According to the LAO, the main advantage of centralizing public  
            health activities is a greater focus on improving health  
            through public health activities. Additionally, to the extent  
            that reductions or slower growth in public health activities  
            are a reflection of DHS priorities, it is possible that a  
            separation from Medi-Cal would put public health budgets in a  
            stronger position to compete for resources.  A centralization  
            of public health programs may also expedite policy and budget  
            decisions and increase overall department responsiveness to  
            constituency groups.  Finally, a centralization of core public  
            health functions in one department may reveal funding  
            opportunities that are not currently apparent or accessible.

          The LAO analysis also outlined perceived disadvantages to the  
            creation of a new DPH.  As proposed by the Little Hoover  
            Commission, the DPH would be on par with the California Health  
            and Human Services Agency (CHHSA) and other cabinet-level  
            agencies, with the director reporting directly to the  
            Governor.  The LAO analysis suggested that the location of the  
            DPH outside of CHHSA would probably hinder state efforts to  
            coordinate health-related programs and activities.   
            Additionally, the separation of DHS public health programs  
            from Medi-Cal could lead to missed opportunities for the  
            integration of public health research and information gained  
            in the field into health care delivery systems (such as  
            Medi-Cal managed care).

          Also as proposed by the Little Hoover Commission, the  
            consolidation of OSHPD and Emergency Medical Services  
            Authority (EMSA) with a new public health department may  
            result in a lower emphasis on the departments' current  
            activities and lengthen the decision-making process in  
            relation to their issues.  Additionally, these departments  
            would have to compete against other public health programs for  
            management's time and resources.





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          SB 162 does not place the DPH in the cabinet nor include OSHPD  
            or EMSA.

          2)Related Legislation.  AB 2769 (Richman, 2004) would have  
            established a DPH and a Public Health Improvement Board and  
            specified that the DPH is responsible for the administration  
            of all public health programs.  This bill failed passage in  
            the Assembly Health Committee.

          SB 858 (Ortiz, principal coauthor Richman, 2004) was virtually  
            identical to this bill.  SB 858 was held in the Assembly  
            Appropriations Committee.

          3)Arguments in Support.  The Health Officers of California  
            (HOAC), the sponsor of SB 162, argues that DHS has as its  
            main concern the multi-billion dollar Medi-Cal program,  
            the size of which overshadows public health.  As a  
            result, they believe that public health preparedness and  
            leadership have been in decline since the formation of  
            DHS in the 1970s.  

          The Little Hoover Commission states in support that shortly  
            after the terrorist attacks of September 11, 2001, the  
            Commission identified the public health system as the  
            weakest link in California's homeland defense.  The  
            Commission concluded, based on a subsequent review of the  
            public health infrastructure, that strengthening the  
            public health system would require changes in  
            organizational structure, and recommended that a new  
            Department of Public Health be created to consolidate  
            public health functions.

          The California Medical Association also support this bill,  
            arguing that a separate Department of Public Health would  
            help create a more coordinated, multidisciplinary  
            approach to addressing public health threats, and would  
            strengthen the capabilities at the stat and local levels  
            to respond to emerging public health problems.

          The California Association of Professional Scientists  
            (CAPS) states that it is concerned that public health can  
            get lost in the shuffle because it is combined in DHS  
            with a variety of human services functions.  CAPS argues  
            that organizing the office to provide more emphasis on  
            public health will serve all Californians better,  





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            particularly given the public health threats that are  
            looming.

          
          SUPPORT AND OPPOSITION:
          
           Support:   
          Health Officers of California (sponsor)
          California Association of Professional Scientists
          California Medical Association
          Little Hoover Commission

           Opposition:  None on file


          Consultant:Vincent D. Marchand