BILL ANALYSIS                                                                                                                                                                                                    






                                 SENATE HEALTH
                               COMMITTEE ANALYSIS
                        Senator Elaine K. Alquist, Chair


          BILL NO:       SB 769                                       
          S
          AUTHOR:        Alquist                                      
          B
          AMENDED:       August 16, 2010                             
          HEARING DATE:  August 25, 2010                              
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          CONSULTANT:                                                 
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          Orr/                                                        
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                              PURSUANT TO S.R. 29.10
           
                                     SUBJECT
                                         
             Federal funding: supplemental appropriations: pandemic  
                                   influenza

                                     SUMMARY
                                         
          This bill provides that federal funding received pursuant  
          to the federal Supplemental Appropriations Act, 2009 for  
          pandemic flu preparedness and response, shall be subject to  
          appropriation by the Legislature for allocation by the  
          California Department of Public Health (CDPH) pursuant to  
          the 2008-09 federally approved collaborative state-local  
          plan, which effectively allocates funds in a 70/30  
          local/state split.   


                             CHANGES TO EXISTING LAW  
          
          Existing law:
          Establishes local health departments to protect and  
          preserve the public health.  Provides for the allocation of  
          state aid to local health departments according to a  
          specified formula for prescribed purposes, including  
          communicable disease control activities and community and  
          public health surveillance activities.

                                                         Continued---



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          Requires that federal funding received by the state for  
          bioterrorism preparedness and emergency response be subject  
          to appropriation in the annual Budget Act or other statute,  
          commencing with the 2003-04 fiscal year, and pursuant to  
          the federally approved collaborative state-local plan.  
          These provisions become inoperative as of September 1,  
          2010. 

          Established a basic allotment of one hundred thousand  
          dollars ($100,000) to the administrative bodies of each  
          local health jurisdiction (LHJ), subject to the  
          availability of funds appropriated in the annual Budget Act  
          or another act, for the 2003-04 fiscal year and subsequent  
          fiscal years. Requires that the balance, if any, of the  
          annual appropriation be allotted on a per capita basis in  
          proportion to the population of each eligible LHJ. These  
          provisions become inoperative as of September 1, 2010 and  
          are repealed as of January 1, 2011.
          
          This bill:
          Requires that federal funding received pursuant to the 2009  
          Supplemental Appropriations Act for pandemic influenza, for  
          purposes of state and local public health and emergency  
          response infrastructure, be subject to appropriation by the  
          Legislature in the annual Budget Act or other statute. This  
          applies to federal funding provided by the Public Health  
          Emergency Preparedness Cooperative Agreement and the Public  
          Health Emergency Response Cooperative Agreement for state  
          and LHJs.

          Requires that the proportion of funds allocated to support  
          LHJ activities shall be at least the proportion stipulated  
          in the 2008-09 federally approved state applications for  
          the Public Health Emergency Preparedness Cooperative  
          Agreement unless stipulated otherwise by federal law or  
          guidance. Makes an exception if the department, in  
          consultation with the California Conference of Local Health  
          Officers (CCLHO) and the County Health Executives  
          Association of California (CHEAC), submits an application  
          that specifies a different funding allocation.

          Allows CDPH to establish a minimum allocation of less than  
          one hundred thousand dollars ($100,000) to LHJs, if the  
          department consults with CCLHO and CHEAC.





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          Declares the bill provisions inoperative on September 1,  
          2012, thereby extending the sunset date two years.  

          Makes findings and declarations regarding public health  
          infrastructure and the need to ensure that federal funds  
          for public health emergency response to a pandemic  
          influenza outbreak are distributed appropriately to LHJs. 

          Declares the bill an urgency measure in order to ensure an  
          adequate and timely response to the H1N1 virus and other  
          public health threats. 


                                  FISCAL IMPACT  

          The Assembly Appropriations Committee estimates unknown  
          future distributions of federal funding, in the 70 percent-  
          30percent sharing ratio.

                            BACKGROUND AND DISCUSSION  

          The author asserts that this bill establishes a standard  
          that local health departments (LHDs) receive at least 70  
          percent of any public health emergency preparedness funds  
          released to the state by the federal government. This  
          formula, called the 70/30 split, has been used by the state  
          since September 11, 2001 to allocate federal public health  
          emergency preparedness funds to the local health  
          jurisdictions. Over $500 million have been allocated to  
          California for public health emergency preparedness since  
          that time.  These funds have been critical to the  
          modernization and enhancement of public health  
          infrastructure at the local level. Because of a lack of  
          both state and local funding, the author claims federal  
          dollars have been the only significant funds available to  
          improve the core public health capabilities of disease  
          identification, control and prevention. This bill also  
          extends the sunset on provisions that give CDPH the  
          authority to continue to allocate federal emergency  
          preparedness funds. 

          As a result of the H1N1 outbreak that began during the  
          spring of 2009, additional federal funding was supplied to  
          the states to respond to this public health threat.   
          Approximately $120 million has been provided to California  




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          for this purpose. The first three phases of this money have  
          been allocated to the locals on a 70/30 split. Several  
          billion dollars are still available at the federal level  
          for future pandemic flu outbreaks. This bill will insure  
          future federal allocations to California will be directed  
          to local levels based on the same 70/30 split.

          Pandemic influenza
          Influenza A (H1N1) virus is a subtype of influenza A and  
          the most common cause of flu in humans. In 2006, H1N1  
          caused approximately half of all human flu. In 2009, the  
          World Health Organization (WHO) declared that a new strain  
          of swine-origin was responsible for a global flu pandemic.  
          The WHO declared an alert level phase 6, indicating  
          widespread human infection. That was the first time it  
          raised the alert level that high in 40 years. The H1N1  
          isolated in American patients has been found to be a  
          genetic mixture of four strains: including avian, swine,  
          and human genetic characteristics.

          Funding for public health emergency preparedness and  
          response
          Congress authorized funding for the Public Health Emergency  
          Preparedness (PHEP) cooperative agreement to support  
          preparedness nationwide in state, local, tribal, and  
          territorial public health departments in 2002, shortly  
          after the events of September 11, 2001, and subsequent  
          anthrax attacks. The PHEP cooperative agreement provides  
          funding to enable public health departments to have the  
          capacity and capability to effectively respond to the  
          public health consequences of not only terrorist threats,  
          but also infectious disease outbreaks, natural disasters,  
          and biological, chemical, nuclear, and radiological  
          emergencies. 

          Congress appropriated funding in June 2009 through the 2009  
          Supplemental Appropriations Act for the "Public Health and  
          Social Services Emergency Fund" to prepare for and respond  
          to an influenza pandemic. This funding provided the  
          Department of Health and Human Services (HHS), the Centers  
          for Disease Control and Prevention (CDC), and other federal  
          and state agencies with resources to respond to ongoing and  
          emerging outbreaks of novel H1N1 influenza in the United  
          States. To date, CDC is administering $1.35 billion through  
          the Public Health Emergency Response (PHER) grant to  




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          upgrade state and local pandemic influenza preparedness and  
          response capacity. 

          Funding was distributed in phases. Phase I funding of $260  
          million was awarded beginning July 31, 2009. An additional  
          $248 million in PHER Phase II funding was released  
          nationwide beginning August 21, 2009, and another $846  
          million in PHER Phase III funding was awarded nationwide  
          for implementation of the 2009 H1N1 influenza mass  
          vaccination campaign, which began in October of 2009. 

          A total of $49.7 million in PHER Phase IV funding has been  
          awarded to 15 states and localities, including California,  
          to complete their H1N1 vaccination programs, specifically  
          targeting high-risk populations, minority and hard-to-reach  
          populations, and underserved and vulnerable populations  
          that may have been unable to access vaccination services  
          previously. Phase IV funds have been allocated using a  
          base-plus-population formula, with 100 percent of the funds  
          available beginning March 18, 2010. 

          Prior legislation
          SB 678 (Ortiz), Chapter 35,  Statutes of 2004, allocated  
          $18 million in federal funding for implementing  
          bioterrorism and smallpox preparedness measures to DPH and  
          LHJ.

          SB 406 (Ortiz), Chapter 393, Statutes of 2002, established   
          requirements with respect to allocation of federal  
          emergency funding and the state-local plan similar to SB  
          769.

          Arguments in support
          The County of San Diego believes this bill establishes  
          procedures for the distribution of the federal funding  
          received by the state for the purpose of responding to a  
          pandemic influenza outbreak, and authorizes CDPH to  
          establish a minimum allocation of $100,000 to LHJs as  
          specified. Receipt of supplemental funding could help  
          support the maintenance of San Diego County's current  
          public health workforce and could improve the quality of  
          the county's response to a local influenza pandemic in  
          terms of surveillance, laboratory capacity, and technology.  

          




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                                  PRIOR ACTIONS
           
          Senate Health:           11-0
          Senate Floor:            36-0
          Assembly Health:         18-0
          Assembly Appropriations: 17-0
          Assembly Floor:          77-0
          Senate Floor:            26-1
          Assembly Floor:          76-0


                                     COMMENTS
                                         
          1. Recent amendments.  When this bill was heard in the  
          Senate Health Committee on April 22, 2009, it did the  
          following:

          a.  Required federal funding received pursuant to the  
          Recovery Act, for purposes of 
               chronic disease prevention and wellness, to be subject  
          to appropriation by the  
               Legislature commencing with the 2009-10 fiscal year. 

          b.  Provided that its provisions apply when federal funding  
          is allocated and expended for 
               disease control and prevention activities by LHJs and  
          specifies that funds appropriated 
               for those purposes cannot be used to supplant funding  
          for existing levels of service.

          c.  Required allocations to be made by the Department of  
          Public Health (DPH) to the 
               administrative bodies of qualifying local health  
          jurisdictions and requires funds to be 
               used for activities to improve and enhance  
          evidence-based clinical and community-
               based prevention and wellness strategies authorized by  
          the federal Public Health 
               Services Act that deliver specific measurable health  
          outcomes that address chronic 
               disease rates.

          The Assembly amendments:

          a. Specify that the provisions of the bill apply to federal  




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          funding provided by the Public 
               Health Emergency Preparedness Cooperative Agreement  
          and the Public Health 
               Emergency Response Cooperative Agreement for state and  
          local health jurisdictions 
               (LHJ).

           b.  Require that the proportion of funds allocated to  
           support LHJ activities shall be at 
                least the proportion stipulated in the 2008-09  
           federally approved state applications for 
                the Public Health Emergency Preparedness Cooperative  
           Agreement unless stipulated 
                otherwise by federal law or guidance with specified  
           exceptions. 

           c.  Allow the department to establish a minimum allocation  
           of less than one hundred 
               thousand dollars ($100,000) to LHJs, as specified.

          d.  Sunset the bill as of January 1, 2013.

      e.   Declare the bill an urgency measure.


                                    POSITIONS  

          Support:  Health Officers Association of California  
          (Sponsor)
                 California State Association of Counties
                 County Health Executives Association of California
                 County of San Diego
                 Regional Council of Rural Counties
                 Santa Clara County Board of Supervisors
                 Urban Counties Caucus

          Oppose:  None received
                                   -- END --