BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                       AB 572


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          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


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          |                |      |Gordon, Holden,     |                    |
          |                |      |Jones, Quirk,       |                    |
          |                |      |Rendon, Wagner,     |                    |
          |                |      |Weber, Wood         |                    |
          |                |      |                    |                    |
          |                |      |                    |                    |
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          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


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          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  








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          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