BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON HEALTH
                          Senator Ed Hernandez, O.D., Chair

          BILL NO:                    AB 572    
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          |AUTHOR:        |Beth Gaines                                    |
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          |VERSION:       |July 2, 2015                                   |
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          |HEARING DATE:  |July 15, 2015  |               |               |
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          |CONSULTANT:    |Reyes Diaz                                     |
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           SUBJECT  :  Diabetes prevention: treatment.

           SUMMARY  :  Requires the Department of Public Health (DPH) to update the  
          California Wellness Plan 2014 to include specified items, and  
          requires DPH to report to the Legislature on or before January  
          1, 2018, and as specified, on the progress of the update.
          
          Existing law:
          1)Establishes DPH to protect and improve the health of  
            communities through education, promotion of healthy  
            lifestyles, and research for disease and injury prevention.  
            Establishes the California Diabetes Program (CDP) within DPH.

          2)Provides DPH with the authority to perform activities that  
            protect, preserve, and advance public health, including  
            studies and dissemination of information.

          This bill:
          1)Requires DPH to update the California Wellness Plan 2014  
            (Plan) to include the following items:
                  a)        Priorities and performance measures that are  
                    based on evidence-based strategies to prevent or  
                    control diabetes. Requires the Plan to identify  
                    expected outcomes of the proposed priorities and  
                    performance measures and establish benchmarks for  
                    controlling and preventing relevant forms of diabetes.
                  b)        An analysis of the financial impact of  
                    diabetes on the state. Requires this assessment to  
                    include the number of persons living with diabetes,  
                    the number of family members affected by diabetes, the  
                    financial impact diabetes and its complications have  
                    on the state, and the financial impact of diabetes in  
                    comparison to other chronic diseases and conditions.







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                  c)        A summary of expenditures by DPH on programs  
                    and activities aimed at preventing or controlling  
                    diabetes.
                  d)        A summary of the amount and source of any  
                    funding directed to DPH for programs and activities  
                    aimed at controlling or preventing diabetes.
                  e)        A description of the existing level of  
                    coordination between state departments and entities  
                    regarding activities, programmatic activities, and the  
                    provision of information to the public regarding  
                    managing and preventing diabetes and its  
                    complications.
                  f)        A detailed budget blueprint identifying needs,  
                    costs, and resources required to update the Plan.  
                    Requires this blueprint to include a budget range for  
                    each priority and performance measure identified.
                  g)        Policy recommendations for the prevention and  
                    management of diabetes. 

          2)Requires DPH to submit a report to the Legislature on or  
            before January 1, 2018, and biennially thereafter, that  
            includes the progress of the Plan updates. Requires the report  
            to also include recommendations for improving Plan items based  
            on activities and findings to date. Requires DPH to make this  
            report and any updates available on its Internet Web site.

          3)Specifies that the requirement to submit a report to the  
            Legislature is inoperative on January 1, 2024.

          4)Makes findings and declarations about the increased prevalence  
            of diabetes in the state and the total health care cost of  
            diabetes and related complications. 

           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. 








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           PRIOR  
          VOTES  :  
          
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          |Assembly Floor:                     |80 - 0                      |
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          |Assembly Appropriations Committee:  |17 - 0                      |
          |------------------------------------+----------------------------|
          |Assembly Health Committee:          |17 - 0                      |
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          COMMENTS  :
          1)Author's statement.  According to the author, diabetes has  
            reached epidemic levels in California. As of 2012, about one  
            in seven adult Californians has diabetes and as many as one in  
            three will be diagnosed in the near future. The total cost for  
            treatment of diabetes in California exceeds $24.5 billion.  
            This dollar amount includes hospitalization, outpatient  
            treatment, disability payments, loss of individual  
            productivity, and more. As the number of those affected  
            increases, so too will the cost. Many of the costs related to  
            diabetes go towards the treatment of preventable disease  
            related complications. These costly complications, such as  
            blindness and limb amputation, are avoidable if the patient is  
            properly educated on the management of the disease. When  
            people are made aware of the signs of the onset of diabetes,  
            they will be able to address the situation and seek medical  
            attention before the disease has progressed and the  
            irreversible damage to the body has been done.

          2)Diabetes in California. DPH issued a study, The Burden of  
            Chronic Disease and Injury, in 2013 that highlights some of  
            the leading causes of death, such as heart disease, cancer,  
            stroke, and respiratory disease, all of which have a strong  
            connection to obesity. Diabetes is another serious chronic  
            disease stemming from obesity that adversely affects quality  
            of life and results in serious medical costs. The last decade  
            has witnessed a 32% rise in diabetes prevalence, affecting  
            some 3.9 million people and costing upwards of $24 billion per  
            year. According to the Center for Disease Control and  
            Prevention (CDC), more than one-third of U.S. adults are  
            obese, and approximately 12.5 million children and adolescents  








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            ages 2 to 19 years are obese. Research indicates a tripling in  
            the youth obesity rate over the past three decades. While this  
            increase has stabilized between the years 2005 and 2010, in  
            2010, 38%of public school children were overweight and obese.  
            Overweight youth face increased risks for many serious  
            detrimental health conditions that do not commonly occur  
            during childhood, including high cholesterol and type-2  
            diabetes. Additionally, more than 80% of obese adolescents  
            remain obese as adults.

          3)CDP. The CDP was established in 1981 and represents a  
            partnership between DPH and the University of California, San  
            Francisco. It primarily receives its funding from the CDC. A  
            few key objectives that the CDP focuses on include:

               a)     Monitoring statewide diabetes health status and risk  
                 factors;
               b)     Engaging in outreach to increase awareness about the  
                 disease;
               c)     Guiding public policy to support at-risk and  
                 vulnerable populations;
               d)     Offering leadership, guidance, and resources to  
                 community health interventions;
               e)     Seeking to improve the health care delivery system;  
                 and,
               f)     Reducing diabetes-related health disparities.

            The CDP achieves these through partnering with different  
            individual, community, health care, policy, and environmental  
            entities. 

          4)The California Wellness Plan. In February 2014, DPH's Chronic  
            Disease Prevention Branch published the Plan, the result of a  
            statewide process led by DPH to develop a roadmap for DPH and  
            partners to promote health and eliminate preventable chronic  
            disease in California. The Plan aligns with the Let's Get  
            Healthy California Taskforce priorities and includes 26  
            priorities and performance measures developed in 2012 that are  
            based upon evidence-based strategies to prevent chronic  
            disease and promote equity.  The Plan contains short,  
            intermediate, and long-term objectives with measurable effects  
            on a variety of chronic diseases, of which diabetes is a major  
            focus. The Plan also contains 15 objectives specific to  
            diabetes, including objectives to increase utilization of  
            diabetes prevention and self-management programs, as well as  








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            broad objectives to reduce the prevalence of obesity and  
            diabetes among children and adults. DPH's chronic disease  
            programs plan to collaborate with local and state partners,  
            including the Office of Health Equity, that are engaged in  
            diabetes prevention to implement the objectives. DPH intends  
            to monitor the progress of Plan objectives and publish regular  
            reports on outcomes.

            According to DPH, the Chronic Disease Control Branch Chief  
            ensures that, at a minimum, the Plan is reviewed in  
            conjunction with partners every five years to assess the need  
            for a new version. As funding permits and partners agree, a  
            process to create a new version of the Plan will be developed  
            and implemented, overseen by the Director of Coordination. The  
            process will capture observations and recommendations based on  
            lessons learned from Plan implementation efforts and from  
            which updated priorities and evidence-based strategies can be  
            determined. The process will identify specific revisions,  
            assign them to responsible parties, and establish target dates  
            for completion. This review process will be consistent with  
            the CDC and Evaluation Program guidelines. Triggers for  
            reviewing the Plan sooner than the five year cycle include,  
            but are not limited to:  a) major changes to DPH authority; or  
            b) major changes in federal and/or state funding, guidance, or  
            requirements. Any future versions of the Plan developed in  
            conjunction with partners will also be available to the public  
            on DPH's Web site. DPH further states that a one-day statewide  
            conference is planned for 2017 for partners and programs to  
            report on progress or short term outcomes of goals of the  
            Plan. A summary of conference reports will be posted online  
            after the conference.

          5)State Auditor report. In January 2015, the 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. DPH spending on  
            diabetes prevention has declined over time due to reductions  
            in its federal funding. In fiscal year 2013-14, federal  
            funding for diabetes prevention decreased from more than $1  
            million in previous fiscal years to $817,000. DPH's maternal  
            diabetes program also experienced significant reductions in  
            federal funding over the last three fiscal years, declining  








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            from $1.2 million in fiscal year 2010-11 to $71,000 in fiscal  
            year 2013-14. In fiscal year 2012-13-the most recent year for  
            which nationwide data is available-California had the lowest  
            per capita funding for diabetes prevention in the nation. The  
            report also found that DPH spent its limited federal funds in  
            an appropriate manner and complied with applicable grant  
            requirements. For the 40 expenditures reviewed from fiscal  
            years 2009-10 through 2013-14, DPH expenditures were in  
            accordance with federal requirements, and the amounts spent  
            were found reasonable.  Additionally, despite a concern that  
            was raised about the relationship between DPH diabetes and  
            tobacco control programs, the report found DPH has not spent  
            its limited diabetes funds on tobacco cessation activities.

          The Auditor recommended that the state consider providing state  
            funding to support efforts to address diabetes, that DPH  
            should develop a process for 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.

          6)Related legislation. SB 203 (Monning), would have required a  
            safety warning to be affixed to sugar sweetened beverages that  
            states "STATE OF CALIFORIA SAFETY WARNING: Drinking beverages  
            with added sugar(s) contributes to obesity, diabetes, and  
            tooth decay".  SB 203 failed in the Senate Health Committee. 

            AB 270 (Nazarian), would require DPH to apply to the State  
            Department of Motor Vehicles to sponsor a diabetes awareness,  
            education, and research specialized license plate program.  
            Establishes the Diabetes Awareness Fund and specifies that  
            revenues from the fund will be used by DPH to fund programs  
            related to diabetes awareness and prevention. AB 270 is  
            pending in the Senate Appropriations Committee.
            
          7)Prior legislation. SB 1316 (Cannella, 2014), would have  
            required the Department of Health Care Services, DPH, and the  
            Board of Administration of the Public Employees' Retirement  
            System to submit a report to the Legislature regarding their  
            respective diabetes-related programs. SB 1316 was never  
            referred out of Senate Rules Committee.
            
            AB 1592 (Beth Gaines, 2014), would have required DPH to  
            complete and submit to the Legislature a Diabetes Burden  








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            Report by December 31, 2015, including, among other things,  
            actionable items for consideration by the Legislature that  
            would aid in attaining the goals set forth by DPH in the  
            California Wellness Plan for 2014. Would have required DPH to  
            include in the report guidelines that would reduce the fiscal  
            burden of diabetes to the state. AB 1592 was vetoed by the  
            Governor, stating that DPH had already submitted its Diabetes  
            Burden Report to the CDC, as required, and is unable to  
            withdraw the report to include additional information  
            prescribed by the bill.  

          8)Support. Supporters of this bill argue that diabetes is the  
            seventh-leading cause of death in the U.S. and is a leading  
            cause of adult blindness, kidney failure, and non-traumatic  
            amputation of the lower limbs. Supporters also point out that  
            one out of every seven adults (nearly three million) in the  
            state is diagnosed with diabetes, adding to health care costs  
            and related costs totaling nearly $37.1 billion, which could  
            be preventable with treatment and prevention programs.  
            Supporters further argue that diabetes disproportionately  
            affects underserved populations, including Black, Hispanic,  
            and Asian and Pacific Islander communities.
             
           SUPPORT AND OPPOSITION  :
          Support:  American Diabetes Association
                    American Federation of State, County and Municipal  
               Employees
                    Asian American, Native Hawaiian, and Pacific Islander  
               Diabetes Coalition
                    Association of California Healthcare Districts
                    Bayer Corporation
                    Biocom
                    Boehringer-Ingelheim Pharmaceutical Company
                    California Academy of Family Physicians
                    California Black Health Network
                    California Chronic Care Coalition
                    Congress of California Seniors
                    National Council of Asian Pacific Islander Physicians
          
          Oppose:   None received.
          
                                          

                                      -- END --
          








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