BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AJR 9
                                                                  Page  1

          Date of Hearing:   March 31, 2009

                            ASSEMBLY COMMITTEE ON HEALTH
                                  Dave Jones, Chair
              AJR 9 (John A. Perez) - As Introduced:  February 26, 2009
           
          SUBJECT  :   Ryan White HIV/AIDS Treatment Modernization Act of  
          2006.

           SUMMARY  :   Urges the Congress and President of the United States  
          (U.S.) to enact legislation to extend, from September 30, 2009  
          to September 30, 2012, the sunset of the Ryan White HIV/AIDS  
          Treatment Modernization Act of 2006 (Ryan White Act).   
          Specifically,  this bill  :  

          1)Resolves that the Legislature urges the Congress and President  
            of the U.S. to enact legislation to extend, from September 30,  
            2009 to September 30, 2012, the sunset of the Ryan White Act.   


          2)Makes various findings and declarations, including the  
            following: 

             a)   The Department of Public Health (DPH) reports that  
               approximately 151,921 individuals have been diagnosed with  
               acquired immune deficiency syndrome (AIDS) in California  
               since 1983, 60,014 are living with AIDS, and more than  
               170,000 Californians are estimated to be living with the  
               human immunodeficiency virus (HIV).

             b)   The Office of AIDS, within DPH, in collaboration with  
               local governments and private providers, has developed a  
               complex and interdependent system of HIV/AIDS care and  
               treatment that relies on federal financial participation  
               through the Ryan White Act to assist the state in meeting  
               the growing health care and social service needs of people  
               living with HIV disease.

           EXISTING STATE LAW :

          1)Establishes the Office of AIDS as the lead agency within the  
            state responsible for coordinating state programs, services,  
            and activities relating to HIV, AIDS, and AIDS-related  
            conditions. 









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          2)Requires health care providers and clinical laboratories to  
            report cases of HIV infection to local health officers (LHOs)  
            using patient names, and requires LHOs to report unduplicated  
            HIV cases by name to DPH.

           EXISTING FEDERAL LAW  establishes the Ryan White Act,  
          administered by the U.S. Department of Health and Human Services  
          (HHS), Health Resources and Services Administration (HRSA),  
          HIV/AIDS Bureau, to provide HIV/AIDS care for those who do not  
          have sufficient health care coverage or financial resources for  
          coping with HIV disease.  The Ryan White Act provides funding  
          through states, localities, and providers for primary health  
          care, drugs, and support services.

           FISCAL EFFECT  :   None

           COMMENTS  :  
           
          1)PURPOSE OF THIS BILL  .  According to the author, this bill is  
            needed to protect funding for California; preserve existing  
            systems of treatment, care and other vital services for people  
            living with HIV/AIDS; and, ensure that California and other  
            states have sufficient time to mature their names-based HIV  
            reporting systems.  The author states the Ryan White Act  
            currently requires the use of names-based HIV data to  
            determine the allocation formula for funding to states and  
            certain local jurisdictions, but also includes exceptions to  
            the names-based HIV data requirement for states with immature  
            HIV data systems.  California did not institute a names-based  
            system of HIV data collection until 2006, and currently does  
            not have a fully mature names-based data system.  The author  
            states that without the protections that exist in the Ryan  
            White Act for states that do not have fully matured  
            names-based HIV data systems, California could suffer a  
            substantial reduction in formula funding which could devastate  
            established treatment, care, and support systems throughout  
            the state. 
           
           2)RYAN WHITE ACT  .  The Ryan White Act was first enacted by  
            Congress in 1990 as the Ryan White Comprehensive AIDS  
            Resources Emergency Act and has been reauthorized three times  
            to improve the quality and availability of care for  
            low-income, uninsured, and underinsured individuals and  
            families affected by HIV.  The federal government provides  
            over $2.1 billion annually for Ryan White Act programs, which  








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            provide primary medical care, pharmaceutical treatments, and  
            support services for over 500,000 Americans living with HIV  
            disease who would otherwise not have access to these services.  
             

          According to HRSA, the Ryan White Act has five parts.  Part A  
            provides emergency assistance to Eligible Metropolitan Areas  
            and Transitional Grant Areas that are most severely affected  
            by the HIV/AIDS epidemic.  Part B provides grants to all  
            states and territories, each of which include a base grant,  
            the AIDS Drug Assistance Program (ADAP) award, ADAP  
            supplemental grants, and grants to states for Emerging  
            Communities - those reporting between 500 and 999 cumulative  
            AIDS cases over the most recent five years.  The majority of  
            Part B funding is distributed through the ADAP, the formula  
            for which is based on each state's proportion of the nation's  
            estimated living HIV/AIDS cases (ELCs); Part B base grants are  
            also based on ELCs.  Part C, the Early Intervention Services  
            program, funds comprehensive primary health care in outpatient  
            settings for people living with HIV disease.  Part D grants  
            are for agencies that provide family-centered primary medical  
            care, treatment, and support services to improve access to  
            health care for women, infants, children, and youth with  
            HIV/AIDS.  Part F comprises several programs to serve  
            underserved populations, provide dental care, support training  
            centers to train health care providers who treat patients with  
            HIV/AIDS, and evaluate and address the disproportional impact  
            of HIV/AIDS on women and minorities. 

           Names-based HIV Reporting  .  The Ryan White Act requires that  
            states have name-based HIV data (for determining ELCs) which  
            the secretary of HHS has certified are accurate and reliable.   
            In the most recent reauthorization of the Ryan White Act,  
            states with maturing name-based reporting systems, such as  
            California, are allowed to submit HIV data to HRSA, but incur  
            a 5% penalty on Part A and Part B funds.  Once the secretary  
            of HHS certifies a state's data as accurate and reliable, the  
            state may use the U.S. Centers for Disease Control and  
            Prevention (CDC) HIV data system and avoid the 5% penalty.   
            CDC estimates that the earliest all states will have mature  
            HIV data systems is 2012.  California, having begun  
            names-based reporting in April of 2006, has not had enough  
            time to collect enough names-based data to have certifiable  
            data.  
             








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            California Allocation  .  California's federal fiscal year  
            2007-08 allocation of Part B funds, including ADAP, was  
            approximately $122 million.  DPH estimates allocations to  
            local governments and community-based organizations at $111  
            million, for a combined total exceeding $230 million for  
            California through the Ryan White Act in fiscal year 2007-08.

             Future of the Ryan White Act  .  According to the Federal AIDS  
            Policy Partnership Ryan White Work Group (Work Group), a  
            nationwide group of HIV policy experts, the 2006  
            reauthorization of the Ryan White Act included many  
            significant changes, including changing the distribution  
            formulas from estimated living AIDS cases to actual living HIV  
            and AIDS cases, a core services requirement, and provisions  
            regarding unobligated funds.  The HIV/AIDS advocacy community  
            and others have not yet been able to evaluate the effects of  
            these changes as sufficient data are not currently available.   
            The Work Group also states the HIV/AIDS community is engaged  
            in the development of a national AIDS strategy and broader  
            health reform.  The Work Group recommends a minimum three-year  
            extension of the Ryan White Act as a prudent course of action  
            in order to maintain health stability for persons living with  
            HIV/AIDS while the larger issues of our nation's health care  
            system and a national strategic plan for HIV/AIDS prevention,  
            care and treatment are developed, assessed and analyzed.  

           3)SUPPORT  .  AIDS Project Los Angeles (APLA), the sponsor of this  
            bill; the Center for AIDS Research, Education, and Services  
            (CARES); the Southern California HIV Advocacy Coalition;  
            Altamed Health Services Corporation; Bienestar Human Services,  
            Inc., and the City of Los Angeles AIDS Coordinator's Office  
            write in support that the Ryan White Work Group and other  
            groups are advocating an extension of the existing law rather  
            than going through the cumbersome process of new legislation.   
            These supporters write that extending the Ryan White Act would  
            free up time and energy in Washington for developing a  
            comprehensive national AIDS strategy and health care reform,  
            and most importantly, that an extension will give California  
            more time to mature its names-based HIV case reporting system.  
             The County of Los Angeles writes that it supports this bill  
            because an extension of the Ryan White Act will preserve and  
            possibly increase funding for Los Angeles County, as well as  
            allow the County to continue to develop HIV data over the next  
            three years, which would maximize the County's competitiveness  
            for Ryan White funding.  The AIDS Services Foundation Orange  








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            County (ASF) writes in support that although California's  
            names-based reporting system is two years old, it has not had  
            sufficient time to fully capture and reliably report all HIV  
            cases in California.  ASF writes that since federal funding is  
            allocated using HIV/AIDS case data, additional time is needed  
            to mature California's reporting system so that funding  
            corresponds correctly with size and scope of the HIV/AIDS  
            epidemic in California.  ASF further writes that a change in  
            the Ryan White Act while the California HIV reporting system  
            is still ramping up would jeopardize federal funding and  
            threaten to destabilize local systems of care. 

           4)OPPOSE UNLESS AMENDED  .  The AIDS Healthcare Foundation (AHF),  
            which is based in Los Angeles and states it is the nation's  
            largest provider of HIV/AIDS medical care, writes that it  
            wholeheartedly agrees with the objective of extending the Ryan  
            White Act while California's names-based reporting system  
            matures so that California can receive its fair share of  
            funding under a new formula.  However, AHF objects to  
            extending the Ryan White Act without changes that would  
            improve control of the HIV/AIDS epidemic.  AHF is concerned  
            with funding equity within and among states and that the Ryan  
            White Act does not go far enough to provide a practical means  
            for California and other states to normalize HIV care,  
            routinize HIV screening, and improve linkages to care.  AHF  
            further argues that the Ryan White Act allows other states to  
            minimize care to people with HIV/AIDS, citing waiting lists  
            for ADAP and incomplete access to all necessary HIV/AIDS  
            drugs.  AHF states it would support this bill if its message  
            to Congress were solely pertinent to delaying a names-based  
            funding allocation formula, and suggests that the author amend  
            this bill to simply urge Congress to include a deferral of the  
            new funding formula in any reauthorization of the Ryan White  
            Act. 

           5)RELATED LEGISLATION  .  

             a)   AB 1045 (John A. Perez), pending in the Assembly, limits  
               a clinical laboratory reporting requirement for CD4+ T-Cell  
               tests (CD4 tests) to those results related to a case of HIV  
               infection, and would permit a clinical laboratory to,  
               instead, elect to report all CD4 test results, regardless  
               of whether they relate to a case of HIV infection, in a  
               manner specified by the LHO. 









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             b)   AB 221 (Portantino), pending in the Assembly, allows an  
               HIV counselor who is not a licensed phlebotomist to perform  
               skin punctures for the purpose of HIV testing if he or she  
               works under the direction of a licensed physician and has  
               been trained in accordance with specified requirements.

           6)PREVIOUS LEGISLATION  .

             a)   SB 1184 (Kuehl) Chapter 347, Statutes of 2008, requires  
               clinical laboratories to report all CD4 test results to the  
               LHO, and if the CD4 test is related to an HIV infection,  
               requires the LHO to report the infection to DPH.  SB 1184  
               was intended to make HIV/AIDS reporting and data more  
               complete. 

             b)   SB 699 (Soto), Chapter 20, Statutes of 2005, requires  
               HIV cases to be reported to the LHO by name rather than by  
               code and requires LHOs to report HIV cases by name to the  
               Department of Health Services (now DPH).  

           7)POLICY QUESTION  .  Should this resolution urge Congress and the  
            President to not only extend the sunset of the Ryan White Act  
            but also to continue to provide formula-based funding to  
            states with maturing names-based reporting systems? 

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          AIDS Project Los Angeles (sponsor)
          AIDS Services Foundation Orange County
          Altamed Health Services Corporation
          American Federation of State, County, and Municipal Employees,  
          AFL-CIO 
          Bienestar Human Services, Inc.
          Center for AIDS Research, Education, and Services 
          City of Los Angeles AIDS Coordinator's Office
          County of Los Angeles
          Southern California HIV Advocacy Coalition

           Opposition 
           
          None on file

           Oppose Unless Amended  








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          AIDS Healthcare Foundation
           
          Analysis Prepared by  :    Allegra Kim / (916) 319-2097