BILL ANALYSIS SB 769 Page 1 SENATE THIRD READING SB 769 (Alquist) As Amended August 31 2009 Majority vote SENATE VOTE :Vote not relevant HEALTH 18-0 APPROPRIATIONS 17-0 ----------------------------------------------------------------- |Ayes:|Jones, Fletcher, Adams, |Ayes:|De Leon, Conway, Ammiano, | | |Ammiano, Block, Carter, | |Charles Calderon, Coto, | | |Conway, De La Torre, De | |Davis, Fuentes, Hall, | | |leon, Emmerson, Hall, | |Harkey, Miller, Nielsen, | | |Hayashi, Hernandez, | |John A. Perez, Skinner, | | |Bonnie Lowenthal, Nava, | |Solorio, Audra | | |V. Manuel Perez, Salas, | |Strickland, Torlakson, | | |Audra Strickland | |Hill | | | | | | ----------------------------------------------------------------- SUMMARY : Provides that federal funding received pursuant to the federal Supplemental Appropriations Act, 2009 (Public Law 111-32) for pandemic flu preparedness and response is subject to appropriation by the Legislature for allocation by the Department of Public Health (DPH) pursuant to the 2008-09 federally approved collaborative state-local plan; authorizes DPH to establish a minimum allocation of $100,000 to a local health jurisdiction (LHJ), as specified; and, requires DPH to expand its electronic communications capacity to accommodate every hospital and primary care clinic during a public health emergency. FISCAL EFFECT : According to the Assembly Appropriations Committee, a one-time allocation of $28 million in federal funding from the federal Public Health and Social Services Fund related to pandemic flu generally and the H1N1 virus specifically, to be shared 30%-70% (state/county) among DPH and LHJs. Additional unknown future distributions of federal funding in the 30%-70% sharing ratio. At this time, an additional $5.8 billion of federal funds nationally has been set aside by Congress to support additional public health activities related to pandemic flu. COMMENTS : According to the author, this bill is needed to SB 769 Page 2 ensure appropriate allocation of federal funding for emergency response and pandemic preparedness. The author states that for the past several years, the state has received federal funds to be used for emergency preparedness and response to such events as a pandemic flu outbreak. Under the existing state and local collaborative plan approved by the federal government, 70% of the funding is distributed to LHJs, while 30% remains with the state. According to the author, this bill is needed to add the Supplemental Appropriations Act funds to the previous stream of federal funds and ensure that LHJs receive an adequate share of the funding. The author further contends this bill facilitates timely distribution of the funds. According to DPH, novel H1N1 is a new influenza virus which was first detected in people in the United States in April 2009 and which spreads from person-to-person, similar to how regular seasonal influenza viruses spread. The symptoms of novel H1N1 flu virus in people are similar to the symptoms of seasonal flu and include fever, cough, sore throat, runny or stuffy nose, body aches, headache, chills, and fatigue. Some people infected with H1N1 also report diarrhea and vomiting. As of August 25, 2009, California had 1,528 hospitalizations, including 128 deaths, due to H1N1 flu (for comparison, DPH reports that each year, approximately 4,500 Californians die from seasonal flu). DPH states that California hospital admissions and emergency room visits due to flu remain higher than normal for this time of year and higher than what is typically seen during the traditional flu season (October to May). Although the H1N1 flu appears to be relatively mild, public health officials remain concerned because flu viruses mutate quickly and can become more virulent, in which case, a more serious outbreak could occur in the fall. On June 24, 2009, President Obama signed the Supplemental Appropriations Act, which provides $1.85 billion nationally to prepare for and respond to an influenza pandemic, including the development and purchase of vaccine, antivirals, medical supplies, diagnostics, and other surveillance tools, and to assist international efforts and respond to international needs relating to the 2009 H1N1 influenza outbreak. No less than $350 million of the appropriation is intended for upgrading state and local capacity. The supplemental funding is intended to continue to address the current H1N1 influenza outbreak, but also to prepare for the potential of future outbreaks, increased SB 769 Page 3 severity of the H1N1 virus, or for the emergence of a new influenza strain. Therefore, the funding may be used for an array of pandemic influenza preparedness and response activities. In July and August, the federal government awarded DPH over $46 million through the Supplemental Appropriations Act and on August 27, 2009, the Schwarzenegger Administration submitted a Section 28 application to the Legislature for authority to use the funds. DPH anticipates additional supplemental funding, but the federal government has not announced the award amounts for the remaining funds. On April 30, 2009, the Senate and Assembly Committees on Health and the Senate Select Committee on Disaster and Emergency Response held a joint informational hearing on the H1N1 influenza outbreak. During this hearing, DPH, California Emergency Management Agency, Emergency Medical Services Authority, California Department of Education, California Hospital Association, California Primary Care Association, Health Officers Association of California, and California Association of Public Health Laboratory Directors testified regarding their response to the outbreak. Witnesses stated that due to funding cuts and anticipated personnel losses, local health departments and local public health laboratories might be unable to fully respond to a possible resurgence of H1N1 flu in the fall. In a follow-up hearing on August 27, 2009, a local health officer reiterated the severe consequences of funding shortfalls and noted that resources were reduced more than previously anticipated. Analysis Prepared by : Allegra Kim / HEALTH / (916) 319-2097 FN: 0002693