BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair AB 1329 (Davis) Hearing Date: 8/15/2011 Amended: 7/11/2011 Consultant: Katie Johnson Policy Vote: Health 9-0 _________________________________________________________________ ____ BILL SUMMARY: AB 1329 would permit the California Department of Public Health (CDPH) to establish a competitive process to receive applications for, and to award a grant to, an agency to operate the statewide Ken Maddy California Cancer Registry (CCR) outside of the Public Contract Code. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2011-12 2012-13 2013-14 Fund Potential loss of potentially significant General fiscal oversight _________________________________________________________________ ____ STAFF COMMENTS: This bill may meet the criteria for referral to the Suspense File. Existing law requires CDPH to establish a statewide system for the collection of information determining the incidence of cancer. The California Cancer Registry (CCR) was established by AB 136 (Connelly), Chapter 841, Statutes of 1985, and for 25 years has collected data on over 3.8 million cases of cancer. It is a system of 10 regions in California that are represented by 5 regional registries with 7 locations with CDPH/CCR also maintaining centralized registry functions. In both FY 2010-2011 and FY 2011-12, CDPH was allocated approximately $7 million in General Fund to administer the CCR contract. The CCR is also funded by a variety of federal funds that are sent directly to the regional registries. The current CDPH contract to administer the CCR expires on June 30, 2012, and CDPH indicates that the Department of General Services (DGS) will no longer permit it to contract out for specific positions since those positions have state service equivalents pursuant to Government Code Section 19130. CDPH has yet to decide how it would rebid the contract. Without this > (>) Page 1 bill, CDPH would still be able to rebid its contract and administer the CCR funds, but not as it has in the past. The ability of CDPH to perform fiscal oversight of the CCR funds could decrease if this program were to move from being administered through a contract to a grant program. Although this bill would require CDPH to include specified terms and conditions in the grant to ensure the proper use of state funds, including provision for reimbursement of allowable costs, financial reporting, program performance, monitoring of the grant, retention and access requirements for records, and independent auditing, CDPH could not compel a grantee to meet specified milestones, deadlines, or deliverables in exchange for funds as it could a contractor. There could be potentially significant cost pressure to the extent a grantee fails to complete the scope of work contained in the grant within the prescribed budget.