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
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          ____
          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.
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          ____
                            Fiscal Impact (in thousands)

           Major Provisions        2011-12      2012-13       2013-14     Fund
           Potential loss of      potentially significant          General
          fiscal oversight
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          ____

          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 








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          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.