BILL ANALYSIS                                                                                                                                                                                                    Ó



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

          BILL NO:                    AB 2696             
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          |AUTHOR:        |Beth Gaines                                    |
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          |VERSION:       |April 18, 2016                                 |
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          |HEARING DATE:  |June 15, 2016  |               |               |
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          |CONSULTANT:    |Reyes Diaz                                     |
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           SUBJECT  :  Diabetes prevention and management

           SUMMARY  : Requires the Department of Public Health (DPH) to submit a  
          report to the Legislature, as specified with certain criteria,  
          regarding the prevention and management of diabetes and its  
          complications. Requires DPH to post annually specified  
          information on its Internet Web site.
          
          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 submit a report to the Legislature, on or  
            before January 1, 2019, that includes a summary and  
            compilation of recommendations on diabetes prevention and  
            management, if any, from the University of California (UC),  
            the Centers for Disease Control and Prevention (CDC), the  
            California Wellness Plan, statewide diabetes stakeholder  
            groups, and other entities identified by DPH as having  
            relevant finding and recommendations.

          2)Requires DPH report to include any recommendations on  
            evidence-based strategies to prevent or manage diabetes, an  
            analysis on the financial impact diabetes and its  
            complications have on the state, policy recommendations for  







          AB 2696 (Beth Gaines)                             Page 2 of ?
          
          
            the prevention and management of diabetes, and the existing  
            level of coordination between state departments in providing  
            information to the public regarding managing and preventing  
            diabetes and its complications.

          3)Requires DPH, commencing January 1, 2017, to post annually  
            information on its Internet Web site a summary of the amount  
            and source of funding directed to DPH and the expenditures on  
            programs and activities aimed at preventing and managing  
            diabetes.

          4)Makes DPH's reporting requirement in 1) above inoperative on  
            January 1, 2024. Makes findings and declarations about the  
            effect of diabetes and its complications on the state's health  
            care system, as well as the disproportionate effect on the  
            underserved and on ethnic minorities.

           FISCAL  
          EFFECT  : According to the Assembly Appropriations Committee, the  
          report is consistent with ongoing diabetes-related activities;  
          costs are expected to be absorbable within existing resources.


           PRIOR  
          VOTES  :  
          
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          |Assembly Floor:                     |80 - 0                      |
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          |Assembly Appropriations Committee:  |20 - 0                      |
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          |Assembly Health Committee:          |19 - 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 1 in  
            7 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  
            dollars. 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  








          AB 2696 (Beth Gaines)                             Page 3 of ?
          
          
            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 CDC, more than one-third of U.S. adults  
            are obese, and approximately 12.5 million children and  
            adolescents ages two 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,








          AB 2696 (Beth Gaines)                             Page 4 of ?
          
          
               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  
            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  








          AB 2696 (Beth Gaines)                             Page 5 of ?
          
          
            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  
            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)Prior legislation. AB 572 (Beth Gaines of 2015), would have  
            required DPH to update the California Wellness Plan 2014 to  
            include specified items, including priorities and performance  








          AB 2696 (Beth Gaines)                             Page 6 of ?
          
          
            measures that are based upon evidence-based strategies to  
            prevent and control diabetes, and to submit a report to the  
            Legislature by January 1, 2018, to include the progress of  
            those specified plan items. AB 572 was held under submission  
            in the Senate Appropriations Committee.

            AB 270 (Nazarian of 2015), would have required DPH to apply to  
            the State Department of Motor Vehicles to sponsor a diabetes  
            awareness, education, and research specialized license plate  
            program.  Would have established the Diabetes Awareness Fund,  
            with revenues to be used by DPH to fund programs related to  
            diabetes awareness and prevention.  AB 270 was held under  
            submission in the Senate Appropriations Committee. 

            SB 1316 (Cannella of 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 of 2014), would have required DPH to  
            complete and submit to the Legislature a Diabetes Burden  
            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.  
            
          7)Support.  The California Center for Public Health Advocacy  
            (CCPHA) argues that the state has no plan in place to mitigate  
            the escalating fiscal impact of diabetes. 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. Diabetes prevention spending in  
            California is lower than any other state, at just $.03 per  
            person each year. CCPHA states that if legislative action is  
            not taken, California can expect a worsening diabetes crisis  
            that will overwhelm health care providers, dramatically  








          AB 2696 (Beth Gaines)                             Page 7 of ?
          
          
            increase health care costs, and leave millions of Californians  
            suffering needlessly.

           SUPPORT AND OPPOSITION  :
          Support:  California Center for Public Health Advocacy 
          
          Oppose:   None received
          
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