BILL ANALYSIS Ó SENATE COMMITTEE ON HEALTH Senator Ed Hernandez, O.D., Chair BILL NO: AB 1793 AUTHOR: Yamada INTRODUCED: February 21, 2012 HEARING DATE: June 20, 2012 CONSULTANT: Marchand SUBJECT : Public health: federal funding: public health emergencies. SUMMARY : Eliminates the September 1, 2012, sunset date on provisions of law governing how federal funding for emergency preparedness is allocated, and adds long-term health facilities to the list of entities that can be designated to receive federal funds for emergency preparedness. Existing law: 1.Establishes provisions of law to govern those instances when federal funding is allocated and expended for public health preparedness and response by local health jurisdictions, hospitals, clinics, emergency medical systems, and poison control centers for the prevention of, and response to, bioterrorist attacks and other public health emergencies. These provisions become inoperative on September 1, 2012, and will be repealed on January 1, 2013. 2.Requires federal funding received by the Department of Public Health (DPH) for bioterrorism preparedness and emergency response to be subject to appropriation in the annual Budget Act or other statute. 3.Exempts federal grant funds appropriated by the Budget Act for public health preparedness and response from being subject to provisions of law governing contracting by state agencies. 4.Provides for the licensure and regulation of long-term health care facilities by DPH, including skilled nursing facilities and intermediate care facilities. This bill: 1.Adds long-term health facilities to the list of entities that can be designated by a federal or state agency to receive and manage funds for public health preparedness and response to bioterrorist attacks and other public health emergencies, Continued--- AB 1793 | Page 2 pursuant to a federally approved collaborative state-local plan. 2.Deletes the September 1, 2012, sunset date on provisions of law governing federal funding for public health emergency preparedness and response. 3.Contains an urgency clause that will make this bill effective upon enactment. FISCAL EFFECT : According to the Assembly Appropriations Committee, negligible state fiscal impact. PRIOR VOTES : Assembly Health: 19- 0 Assembly Appropriations:16- 0 Assembly Floor: 72- 0 COMMENTS : 1.Author's statement. During a bioterrorist attack or other public health emergency, such as an epidemic or flood, the demand for acute hospital care may surge beyond hospital capacity or people may not be able to get to an acute care hospital. Alternative health care facilities and professionals must also be able to rapidly implement the state-local emergency plan. Long-term care facilities are numerous, care for some of our most frail and vulnerable residents, and have medical professionals and supplies, which is why emergency planners must include long-term care facilities in their planning. Federal law deems long-term facilities as eligible for funding, while state law does not. For example, the Hospital Preparedness Program grant requires emergency planners to include "inpatient facilities and centers" and "long-term care" facilities in their planning. However, California's Health and Safety Code limits participants to local health jurisdictions, hospitals, clinics, emergency medical systems, and poison control centers. This lack of conformity between federal and state law is causing confusion about the participation of long-term care facilities and funding for their efforts. AB 1793 corrects this discrepancy between California law and the federal guidelines, allowing emergency planners to include long-term health care facilities to preserve public health and safety. AB 1793 | Page 3 2.Background on federal grant programs for emergency preparedness. According to DPH, it receives funding from two separate federal grant programs for public health emergency preparedness and response: The Public Health Emergency Preparedness (PHEP) program, under the Centers for Disease Control and Prevention (CDC), and the Hospital Preparedness Program (HPP), administered by the U.S. Department of Health and Human Services' Assistant Secretary for Preparedness and Response (ASPR). In the most recent fiscal year (2011-12), the Budget Act appropriated $102,062,000 from these two federal grant programs. DPH states that PHEP funds are restricted to state and local health departments. DPH allocates 70 percent of the PHEP funds to local health departments pursuant to a formula in statute and supports its own preparedness functions with the remaining 30 percent of the allocation. DPH states that HPP funds are intended for health care facility and emergency medical services preparedness. DPH allocates 75 percent of the funds directly to, or on behalf of, the local level. DPH states that the California Hospital Association, the California Association of Health Facilities, and the California Primary Care Association receive HPP funds to strengthen health care facility preparedness. HPP funds are allocated to county HPP entities to build health care coalitions. Coalitions include hospitals, clinics, emergency medical services/systems and long-term care facilities. DPH states that each county determines the priority for use of HPP funds by health care facilities and emergency medical services. 3.Prior legislation. SB 769 (Alquist), Chapter 506, Statutes of 2010, requires federal funding received, pursuant to the Supplemental Appropriations Act of 2009 (HR 2346), for pandemic flu, for purposes of state and local public health and emergency response infrastructure, to be subject to appropriation by the Legislature commencing with the 2009-10 fiscal year. SB 1103 (Committee on Budget and Fiscal Review), Chapter 228, Statutes of 2004, contained statutory changes that enables the Department of Health Services (now DPH) to allocate federal funds to local health jurisdictions, clinics, hospitals, AB 1793 | Page 4 emergency medical systems, and poison control centers in an expeditious manner and exempts these expenditures from Public Contract Code requirements. SB 406 (Ortiz), Chapter 393, Statutes of 2002, established the procedures by which federal funding may be allocated to, and expended by, local health jurisdictions for the prevention of, and response to, bioterrorism attacks and other public health emergencies, pursuant to the federally approved collaborative state-local plan. 4.Support. This bill is supported by the California Association of Health Facilities, which states that the participation of the long-term health care community as a resource will be instrumental in successfully addressing a health care surge within a community. The Orange County Board of Supervisors (OCBOS) states in support that this bill would repeal the sunset date of provisions of law allowing DPH to administer federal grant funds through agreements which are exempt from the Public Contract Code. OCBOS states that by allowing the distribution of funds through allocation agreements rather than contracts significantly decreases the amount of time necessary for DPH to process agreements with local health jurisdictions. The American Federation of State, County and Municipal Employees, AFL-CIO, states in support that this bill corrects the discrepancy between California law and the federal guidelines, allowing emergency planners to include long-term health care facilities to preserve public health and safety. The California Commission on Aging supports this bill to help assure the safety of vulnerable long-term care residents during times of public health emergencies. The County Health Executives Association of California states in support that this bill will continue to ensure that California's local health departments, and other eligible entities, receive their share of federal funding for their public health emergency preparedness activities in an equitable and timely manner. SUPPORT AND OPPOSITION : Support: American Federation of State, County and Municipal Employees, AFL-CIO California Association of Health Facilities California Commission on Aging County Health Executives Association of California Crestwood Behavioral Health, Inc. Orange County Board of Supervisors AB 1793 | Page 5 Oppose: None received. -- END --