BILL ANALYSIS Ó
AB 572
Page 1
ASSEMBLY THIRD READING
AB
572 (Beth Gaines)
As Amended April 16, 2015
Majority vote
-----------------------------------------------------------------
|Committee |Votes |Ayes |Noes |
| | | | |
| | | | |
|----------------+------+--------------------+--------------------|
|Health |17-0 |Bonta, Maienschein, | |
| | |Bonilla, Burke, | |
| | |Chávez, Chiu, | |
| | |Gomez, Gonzalez, | |
| | |Lackey, Nazarian, | |
| | |Patterson, | |
| | | | |
| | | | |
| | |Ridley-Thomas, | |
| | |Rodriguez, | |
| | |Santiago, Thurmond, | |
| | |Waldron, Wood | |
| | | | |
|----------------+------+--------------------+--------------------|
|Appropriations |17-0 |Gomez, Bigelow, | |
| | |Bonta, Calderon, | |
| | |Chang, Daly, | |
| | |Eggman, Gallagher, | |
| | | | |
| | | | |
| | |Eduardo Garcia, | |
AB 572
Page 2
| | |Gordon, Holden, | |
| | |Jones, Quirk, | |
| | |Rendon, Wagner, | |
| | |Weber, Wood | |
| | | | |
| | | | |
-----------------------------------------------------------------
SUMMARY: Requires the California Department of Public Health
(DPH) to create a detailed diabetes action plan for the state, and
to report the results of the plan to the legislature biennially.
Requirements include the development of a detailed budget
blueprint identifying needs, costs, and resources required to
implement the plan and a proposed budget for each action step, as
well as policy recommendations for the prevention and treatment of
diabetes.
FISCAL EFFECT: According to the Assembly Appropriations
committee:
1) Costs of $275,000 in the first year for staff and contract
costs for fiscal and economic analysis, and $125,000 (General
Fund) ongoing until the 2024 sunset for one full-time staff to
track progress and report biennially.
2) Potentially significant up-front cost pressure to fund action
steps to prevent and control diabetes, with potentially
significant long-term savings if such action is successful.
COMMENTS: According to the author, diabetes has reached epidemic
levels in California. Some estimate the yearly cost of diabetes
in California to be over $24.5 billion. The author points out
that California has no statutory requirements in place for the
prevention and management of diabetes, and states that the State
of California has no action plan that specifically addresses the
fiscal impact of diabetes.
AB 572
Page 3
Diabetes is a chronic medical condition marked by high levels of
blood glucose (a form of sugar) resulting from defects in insulin
production, insulin action, or both. Ethnic minorities and those
who are poor or disadvantaged have especially high rates of
diabetes. In 2010, one in seven African American (14.3%), one in
nine American Indian/Alaskan Natives/Native Hawaiian/Other Pacific
Islander (11.6 %), one in 10 Latino (10.9%), one in 11 Asian
American (7.7%), and one in 14 white (7.0%) adults had diagnosed
diabetes. There is no known cure for diabetes. Increased risk of
heart disease, stroke, and kidney damage (and the need for
dialysis as a result) are the most deadly effects. Uncontrolled
high blood sugars may also affect the eyes and cause blindness.
Diabetes frequently affects circulation, and a simple cut on the
foot can lead to an amputation due to infection. Diabetics tend
to experience longer hospitalizations and mortality rates.
According to the California Diabetes Program, diabetes costs in
California exceed $24 billion each year. Direct medical costs
(e.g., hospitalizations, medical care, treatment, supplies)
account for about $18.7 billion, the other $5.8 billion include
indirect costs such as disability payments, time lost from work,
and premature death. The average annual treatment cost per case
for diagnosed diabetes in the U.S. was nearly $10,000 in 2007.
California has an estimated 3.9 million adults with diabetes
(2010), and the numbers are rising rapidly.
In January 2015, The California State Auditor published report
2014-113, titled "Even With a Recent Increase in Federal Funding,
Its Efforts to Prevent Diabetes Are Focused on a Limited Number of
Counties." The report highlighted the fact that DPH manages
federal grants that fund its diabetes prevention efforts.
California does not provide any state funding for diabetes
prevention. The recommendations of the report were that the state
should consider providing state funding to support efforts to
address diabetes, that DPH should develop a process for
AB 572
Page 4
identifying and applying for federal funding opportunities,
including routinely and proactively searching for grants, and DPH
should ensure that staff responsible for diabetes prevention
continues to develop appropriate knowledge and skills.
The California Black Health Network supports this bill due to the
states lack of plan to mitigate the escalating fiscal impact of
diabetes. They point out that while there has been extensive
legislation enacted to promote awareness and cost saving measures
for conditions such as cardiovascular disease and tobacco
addiction, current law is woefully inadequate in regards to
diabetes.
There is no known opposition to this bill.
Analysis Prepared by:
Dharia McGrew / HEALTH / (916) 319-2097 FN:
0000614