BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 1329| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 1329 Author: Davis (D) Amended: 9/2/11 in Senate Vote: 21 SENATE HEALTH COMMITTEE : 9-0, 7/6/11 AYES: Hernandez, Strickland, Alquist, Anderson, Blakeslee, De León, DeSaulnier, Rubio, Wolk SENATE APPROPRIATIONS COMMITTEE : 8-0, 8/15/11 AYES: Kehoe, Walters, Alquist, Emmerson, Lieu, Pavley, Price, Steinberg NO VOTE RECORDED: Runner ASSEMBLY FLOOR : 78-0, 5/19/11 (Consent) - See last page for vote SUBJECT : Ken Maddy California Cancer Registry SOURCE : Public Health Institute University of Southern California DIGEST : This bill requires the Department of Public Health to establish a process to receive applications for, and award a grant to, an agency to operate the statewide Ken Maddy California Cancer Registry. Exempts these grants from being subject to specified provisions of the Public Contract Code. Senate Floor Amendments of 9/2/11 broaden the options for CONTINUED AB 1329 Page 2 mechanisms that may be used to allocate funds to an entity operating the statewide cancer registry. ANALYSIS : Existing law : 1. Requires Department of Public Health (DPH) to conduct a program of epidemiological assessments of the incidence of cancer. 2. Requires the program to encompass all areas of the state for which cancer incidence data are available, and to include monitoring of cancers associated with suspected carcinogens encountered by the general public both in occupational locations and in the environment. 3. Allows DPH to contract with an agency, including, but not limited to a health systems agency, single or multiple county health departments, or nonprofit professional associations, representing a designated cancer reporting region for the purposes of collecting and collating cancer incidence data. 4. Requires the Director of DPH (Director) to establish a statewide system to collect information on the incidence of cancer using population-based cancer registries. 5. Requires these registries to be implemented or initiated by July 1, 1988, and requires that the statewide cancer reporting system be fully operational by July 1, 1990. 6. Authorizes the Director to enter into contracts as necessary to conduct the program, and accept grants of public or private funds for the program on behalf of the state. 7. Requires the Director to analyze available incidence data and prepare reports and perform studies as necessary to identify cancer hazards to the public health and their remedies. 8. Mandates the Director to require the reporting of cancer to DPH, or its authorized representative, in areas of CONTINUED AB 1329 Page 3 the state where cancer information is being collected. 9. Requires any hospital or other facility providing therapy to cancer patients to report all cancers diagnosed or treated, in designated cancer reporting areas, to DPH or an authorized representative, and allows DPH access to those records. 10.Requires specified health care providers diagnosing or providing treatment for cancer patients to report all cancers to DPH or an authorized representative, with specified exemptions, and allows DPH access to those records. 11.Authorizes DPH to fine entities that do not comply with these record-sharing requirements, and requires that fines collected be deposited into the General Fund. 12.Requires all information collected for the purpose of the registry be kept confidential. 13.Allows for the access of this confidential information to specified entities who agree in writing to maintain confidentiality, and who meet other various requirements. 14.Authorizes contracting between state agencies and private contractors. 15.Sets forth requirements for the procurement of goods and services by state agencies. 16.Sets forth the various responsibilities of the Department of General Services (DGS) in implementing state contracting procedures and policies. 17.Permits state agencies to use personal services contracts, when specified conditions are met, in order to achieve cost savings. 18.Specifies that proposals to contract out work can be eligible for approval if the contractor's wages are at the industry's level and do not significantly undercut state pay rates. CONTINUED AB 1329 Page 4 This bill: 1. Deletes DPH's authorization to contract with specified entities representing designated cancer reporting regions for the purpose of collecting and collating cancer incidence data. 2. Allows DPH to establish a competitive process to receive applications for, and issue, the award of a grant to an agency for the purpose of operating the statewide cancer reporting system. 3. Exempts these grants from the State Contract Act in the Public Contract Code that mandate that DGS administer contracts and develop a report describing the need for and terms of the contract. 4. States that DPH must include appropriate terms and conditions in a grant awarded to ensure the proper use of state funds, including provision for reimbursement of allowable costs, financial reporting, program performance reporting, monitoring of subgrants awarded by the grantee to an agency representing a designated cancer reporting region, retention and access requirements for records, independent auditing, termination, and disposition of assets acquired under the grant. 5. Allows DPH to additionally use contracts and other methods of allocating funds, such as cooperative agreements and subvention agreements, in addition to grants for the purpose of funding the operation of the statewide cancer registry. Background California Cancer Registry (CCR) . The Ken Maddy CCR was established in 1985 and is California's statewide population-based cancer surveillance system. The CCR collects information about almost all cancers diagnosed in California. The information is used to develop strategies and policies for cancer prevention, treatment, and control, such as determining where early detection, educational or CONTINUED AB 1329 Page 5 other programs should be directed. In addition, health researchers use the data to analyze demographic and geographic factors that affect cancer risk, early detection, and effective treatment of cancer patients. Due to the size and diversity of the California population, more is now known about the occurrence of cancer in diverse populations than ever before. To date, the CCR has collected detailed information on over 3.4 million cases of cancer among Californians diagnosed from 1988 forward, and more than 162,000 new cases are added annually. CCR is recognized as one of the leading cancer registries in the world, and has been the cornerstone of a substantial amount of cancer research. More than 450 funded research projects, and 1,900 publications have used CCR data. CCR is managed by the DPH Cancer Surveillance and Research Branch (CSRB), which is responsible for collecting statewide data about cancer and cancer risk factors, conducting surveillance and research into the causes, cures, and controls of cancer, and communicating the results to the public. CSRB also manages the Survey Research Group, which specializes in conducting scientific health-related surveys, and California's Comprehensive Cancer Control Program, which oversees the California Dialogue on Cancer, a statewide comprehensive cancer control coalition. Similar programs that DPH administers include the Birth Defects Monitoring Program, the Parkinson's Disease Registry, and the California Immunization Registry. DPH also operates a voluntary stroke registry through the California Heart Disease and Stroke Prevention Program. CCR funding . The state General Fund provided $8.8 million in fiscal year 2010-11 for the state contract to provide partial support for state-level CCR functions, and a portion of the data collection costs incurred in the regional registries. Federal funding is essential to the CCR. The majority of the funding to support the statewide registry comes from grants and contracts currently awarded to the regional registries, with consent by the National Cancer Institute's Surveillance, Epidemiology, and End Results Program (SEER) and the federal Centers for Disease CONTINUED AB 1329 Page 6 Control and Prevention's (CDC) National Program of Cancer Registries. Current federal SEER funding is $8 million per year over seven years to three California SEER registries. These registries are also able to draw down an additional $10 million in CDC funds. State contracts . The state enters into different types of contracts, including contracts for public works projects, information technology projects, and contracts for personal services and consultants. These contracts are usually subject to a competitive selection process. Generally, personal services are required to be performed by civil service employees whenever feasible, pursuant to Government Code Section 19130. The State Constitution generally requires contracting to be limited to those services that cannot be performed by civil service employees, except as provided for in statute. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No According to the Senate Appropriations Committee, "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." SUPPORT : (Verified 9/6/11) Public Health Institute (co-source) University of Southern California (co-source) American Cancer Society, California Division California Cancer Registry CONTINUED AB 1329 Page 7 Cancer Prevention Institute of California City of Hope Desert Sierra Cancer Surveillance Program, Region 5 of the California Cancer Registry ARGUMENTS IN SUPPORT : University of Southern California (USC) states that this bill has been introduced in response to DPH's inability to release a request for proposal/agreement for the operation of the CCR due to administrative barriers. Since its inception in 1985, the CCR has been a partnership between the state, nonprofit research entities, and health providers to collect, analyze, and disseminate information on cancer incidence and mortality. The current five-year grant is set to expire in July 2012, and USC claims that in previous years, the request for proposal/agreement would have been released months ago. USC claims that if DPH cannot rebid the contract in time, registry functions would be disrupted. This bill seeks to alleviate the current administrative obstacles that DPH has encountered by giving authorization to DPH to issue a competitive granting process for the administration of the program in order to protect the flow of federal funds and streamline the process of funding the registry. ASSEMBLY FLOOR : AYES: Achadjian, Allen, Ammiano, Atkins, Beall, Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, Brownley, Buchanan, Butler, Charles Calderon, Campos, Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson, Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani, Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Grove, Hagman, Halderman, Hall, Harkey, Hayashi, Roger Hernández, Hill, Huber, Hueso, Huffman, Jeffries, Jones, Knight, Lara, Logue, Bonnie Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell, Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan, Perea, V. Manuel Pérez, Portantino, Silva, Skinner, Smyth, Solorio, Swanson, Torres, Valadao, Wagner, Wieckowski, Williams, Yamada, John A. Pérez NO VOTE RECORDED: Alejo, Gorell CONTINUED AB 1329 Page 8 CTW:do 9/6/11 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED