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            will be repealed on January 1, 2013.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---



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            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.




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          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, 




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            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




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          Oppose:   None received.

                                      -- END --