BILL ANALYSIS Ó AB 1149 Page 1 Date of Hearing: April 21, 2015 ASSEMBLY COMMITTEE ON HEALTH Rob Bonta, Chair AB 1149 (Wood) - As Introduced February 27, 2015 SUBJECT: Public health emergencies: funding. SUMMARY: Allows trade associations that represent specific local health entities to receive federal funding allocated by the Department of Public Health (DPH) for the prevention of, and response to, public health emergencies. Contains an urgency clause to ensure that the provisions of this bill go into immediate effect upon enactment. EXISTING LAW: 1)Establishes procedures and requirements to govern the allocation to, and expenditure by, local health jurisdictions, hospitals, clinics, emergency medical systems, and poison control centers, of federal funding received for the prevention of, and response to, public health emergencies. 2)Provides that the procedures in 1) above apply only when the AB 1149 Page 2 specified entities are designated by a federal or state agency to manage the funds for public health preparedness and response to public health emergencies pursuant to a specified federally-approved plan. 3)Requires funds to be allocated to these entities through the use of agreements that are exempt from provisions that establish public contracting requirements. FISCAL EFFECT: This bill has not been analyzed by a fiscal committee. COMMENTS: 1)PURPOSE OF THIS BILL. According to the author, due to a recent change in DPH's interpretation of current law, trade associations that represent specific health facilities are no longer able to receive Hospital Preparedness Program (HPP) grant funding administered by the Emergency Preparedness Office at DPH. This federally funded program is designated to support programs that strengthen preparedness for public health emergencies such as natural disasters, terror attacks, and epidemic illnesses. Since the program began in 1996, trade associations have played a major role in the HPP and have proven to be valuable assets. The infrastructure and communication channels within associations make them particularly well suited to tackle the education and outreach challenges inherent to the HPP. The author states that this bill will allow associations to remain a valuable resource for the HPP. The familiarity and credibility trade associations bring to the table, when dealing with their membership, creates a training and teaching environment that is uniquely suited to deliver a high quality program. Finally, by allowing the trade associations to play AB 1149 Page 3 their role, DPH would save valuable resources that otherwise would be expended searching for other entities to execute the program. 2)BACKGROUND. In 2003, the federal government established the HPP. Funding was designated to support programs that strengthen public health emergency preparedness through enhanced planning, increased integration or improved infrastructure. Due to the timing of allocation and expenditure of federal funds, these funds are distributed through a noncompetitive grant process administered by DPH. Historically, trade associations have played a major role in the HPP and have proven to be valuable assets in achieving the goals of the HPP. Recently, DPH has stated that current law does not explicitly provide authorization for state associations that work with specific health facilities to implement emergency preparedness training and education in the state. Under current law, the specific health facilities are exempt from the public contracting code for the purposes of HPP management. Without this exemption, the trade associations would have to participate in the competitive bid process. 3)SUPPORT. According to the California Association of Health Facilities, sponsor of this bill, this bill will assure HPP funding continues to be directed at the associations that are suited to provide appropriate training and education to health facilities in California. associations have channels and an infrastructure that already exists which allows for communication, outreach, and education to thousands of healthcare providers. Associations have the expertise, and state and local authorities have called on us for years to AB 1149 Page 4 assist them in identifying and addressing the issues in disaster preparedness and response. This has been a highly effective arrangement to date, and the newly interpreted path by DPH would hamper the process if this bill is not passed in a timely manner. 4)PREVIOUS LEGISLATION. a) AB 1793 (Yamada), Chapter 166, Statutes of 2012, 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. b) SB 1103 (Committee on Budget and Fiscal Review), Chapter 228, Statutes of 2004, contains statutory changes that enables DPH to allocate federal funds to local health jurisdictions, clinics, hospitals, emergency medical systems, and poison control centers in an expeditious manner and exempts these expenditures from public contract code requirements. c) SB 406 (Ortiz), Chapter 393, Statutes of 2002, establishes 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. REGISTERED SUPPORT / OPPOSITION: AB 1149 Page 5 Support California Association of Health Facilities (sponsor) California Hospital Association California Primary Care Association Opposition None on file. Analysis Prepared by:Dharia McGrew / HEALTH / (916) 319-2097