BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 769
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          SENATE THIRD READING
          SB 769 (Alquist)
          As Amended August 31 2009
          Majority vote 

           SENATE VOTE  :Vote not relevant  
           
           HEALTH              18-0        APPROPRIATIONS      17-0        
           
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          |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  








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          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  








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          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 


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