BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 115| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: SB 115 Author: Fuller (R), et al. Amended: 4/20/15 Vote: 27 SENATE HEALTH COMMITTEE: 9-0, 4/29/15 AYES: Hernandez, Nguyen, Hall, Mitchell, Monning, Nielsen, Pan, Roth, Wolk SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/28/15 AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen SUBJECT: Valley fever SOURCE: Author DIGEST: This bill appropriates $1 million from the General Fund to the Department of Public Health for the 2015-16 fiscal year, for purposes of valley fever vaccine research, as specified. ANALYSIS: Existing law: 1)Requires funds appropriated to the Department of Public Health (DPH) for the purpose of valley fever (coccidioidomycosis) vaccine research to be used to continue and expand the current research effort being conducted by the Valley Fever Vaccine Project. 2)Permits DPH to contract on a sole source basis with a SB 115 Page 2 nonprofit organization that has provided funding for vaccine research on valley fever. Requires the contract to require the organization to distribute research grants to support research efforts that are likely to advance the effort to develop a vaccine. 3)Requires the contractor to establish an advisory group consisting of persons with relevant expertise in the fields of mycology and vaccine development and a representative from DPH. Requires the advisory group to approve grants for those whose research is likely to advance the effort to develop a safe and effective vaccine and to seek advice from the appropriate agencies in the National Institutes of Health and other federal agencies with experience in supporting vaccine research when reviewing the research of those receiving funds. 4)Requires the contractor to provide DPH with periodic status reports on the progress of the researchers receiving funds. Requires DPH to review progress reports from the contractor describing the research progress and plans for future funding. 5)Requires the contract to require that funding is provided on the condition that, if a valley fever vaccine is developed and successfully marketed, the state be reimbursed for the cost of grants made in proportion to the state's contribution to the research and development effort. This bill appropriates $1 million from the General Fund to DPH for the 2015-16 fiscal year, for purposes of valley fever vaccine research. This bill requires $100,000 to be allocated to DPH in the 2015-16 fiscal year for purposes of costs associated with the administration of existing law above. Background According to the Centers for Disease Control and Prevention (CDC), valley fever is caused by Coccidioides, a fungus that lives in soil in the southwestern United States and parts of Mexico, Central America, and South America. Inhaling the airborne fungal spores can cause infection, but is not spread from person to person. Most people who are exposed to the fungus do not get sick, but some people develop flu-like symptoms that may last for weeks to months. In a very small proportion of SB 115 Page 3 people who get valley fever, the infection can spread from the lungs to the rest of the body and cause more severe conditions, such as meningitis or even death. A March 2013 CDC report notes that more than 20,000 cases of valley fever are reported each year in the United States, but many more cases likely go undiagnosed. Some researchers estimate that each year the fungus infects more than 150,000 people, many of whom are sick without knowing the cause or have cases so mild they are not detected. It is difficult to avoid exposure to the fungus that causes valley fever, and there is no vaccine to prevent the infection. Endemic areas. Most cases of valley fever in the United States occur in people who live in or have traveled to the southwestern United States, especially Arizona and California. However, according to the CDC, the full extent of the current endemic areas is unknown and is a subject for further study. Incidence. In California, providers and labs are required to report valley fever to DPH. According to an article in the Spring 2013 Medical Board of California Newsletter written by DPH Infectious Diseases Branch staff, there has been a substantial increase in the numbers of reported cases and hospitalizations of valley fever. From 2000 to 2011, the annual number of reported cases increased greater than six-fold, from 816 to 5,366 cases. These increases represent a substantial and growing burden to California residents, providers, and the government, but the reason for the increase is unclear. Researchers believe that contributing factors may include changes in climate and rainfall patterns, soil-disturbing construction activities, an increase in susceptible persons moving to disease-endemic areas, and heighten awareness and diagnosis. While anyone in an endemic area is at risk, those working in occupations involving dirt and dust exposure may be at increased risk of infection. Several groups of people are at higher risk for developing the severe forms of valley fever, including African Americans, Asians, women in their 3rd trimester of pregnancy, and people with weak immune systems, including those with an organ transplant or who have HIV/AIDS. In California, highly endemic counties (more than 20 cases per 100,000 population per year), are Kern, Kings, Fresno, Merced, Madera, Tulare, and San Luis Obispo. Vaccine. Valley fever research has been going on since the 1930s and 40s, with not much progress towards a vaccine. SB 115 Page 4 According to a report published in October 2012 by the Reporting on Health Collaborative (an initiative of The California Endowment Health Journalism Fellowships at the University of Southern California's Annenberg School for Communication and Journalism), when a valley fever vaccine was evaluated in the late 1970s and early 1980s, and proved to be effective in mice and monkeys, hundreds of people signed up for the human clinical (Phase III) trials. However, patients complained of very sore arms and swelling at the injection site even at low doses. The shot was so painful people dropped out of the trial, and ultimately the vaccine did not show conclusive protection. In 1997, a Bakersfield-based committee worked with California State University, Bakersfield to select five U.S. scientists to develop a new vaccine with funding from the California HealthCare Foundation (CHCF) and the State of California. The project was launched with a $1.5 million grant from CHCF, $700,000 in state general funds, and a contribution of more than $100,000 from rotary clubs. With further contributions over the next decade from CHCF, the federal government, the state, the County of Kern and nonprofit groups, total funding reached about $16 million. However, funding dried up and the research stalled. According to an article published in The Atlantic in August 2014, a valley fever epidemic hit Kern County in 2001 and remains ongoing. It led to the deaths of more than three dozen inmates since 2006 at two nearby state prisons, Avenal and Pleasant Valley. Because the prisons house high concentrations of black and Filipino inmates, valley fever infection rates are higher than the state average: 1,000 times higher at Pleasant Valley, where more than 1,000 inmates have contracted valley fever over the past five years, and 189 times higher at Avenal. Following a federal mandate to transfer more than 2,500 at-risk inmates out of Kern County in 2013, the National Institutes of Health and the CDC announced plans to start a clinical trial in Bakersfield. In June of 2014, the FDA also announced plans to include cocci on its Generating Antibiotic Incentives Now program, a federal system intended to encourage the development of new antibacterial or antifungal drugs to treat what the government deems serious or life-threatening infections. Adding cocci to the list extends the period that valley fever antibiotics or vaccines can be sold without any generic-brand competition on the market by five years, which is expected to act as an incentive for a pharmaceutical company to jump on SB 115 Page 5 board and manufacture a vaccine. According to an August 2014 announcement from UC Merced, the university's Health Sciences Research Institute received approval and funding to conduct patient studies at Children's Hospital Central California in Madera. Researchers will study the blood of 30 pediatric patients with valley fever to understand the immune system's response to the disease, with a long-term goal of developing a vaccine. Comments Author's statement. According to the author, California has seen an increase of valley fever case counts from 719 to 5,697 over the last 13-year period. Valley fever is caused by air or soil disturbance of Coccidioides fungi, which live and breed within the soil. When the dust containing the Coccidioides spores is breathed in the fungus attacks the respiratory system, causing infection that can lead to symptoms that resemble a cold, influenza, or pneumonia. Within California, cases of valley fever have been reported from most counties. Over 75% of cases have been reported in portions of Sacramento Valley, all of the San Joaquin Valley, desert regions, and portions of Southern California. Valley fever can be costly and debilitating, with nearly 75% of patients missing work or school because of their illness, and more than 40% requiring hospitalization. There is also an influx of cases among prison inmates and employees. Anyone can get valley fever, even young and healthy people. Although there is currently not a known cure for valley fever, researchers are closer to developing a vaccine that will help combat this devastating disease. Experts say the lack of funding and serious attention to valley fever has stalled efforts to combat the disease. Prior Legislation AB 1955 (Ashburn, 2002), SB 1027 (Ashburn, 2003) and SB 492 (Ashburn, 2005) were substantially similar to this bill. AB 1955, SB 1027 and SB 492 were held on the Assembly Appropriations Committee suspense file. FISCAL EFFECT: Appropriation: Yes Fiscal Com.:YesLocal: No SB 115 Page 6 According to the Senate Appropriations Committee, $1 million appropriation from the General Fund. SUPPORT: (Verified5/28/15) California Prison Moratorium Project Center on Race, Poverty and the Environment Central California Environmental Justice Network Coalition for Clean Air Comite Si Se Puede Committee for a Better Arvin Committee for a Better Shafter Global Community Monitor Greenfield Walking Group Leadership Council for Justice and Accountability Padres Socios de Lamont Physicians for Social Responsibility - Los Angeles Residentes Organizados al Servicio de un Ambiente Sano Tri-Valley CARES Valley Fever Solutions OPPOSITION: (Verified5/28/15) None received ARGUMENTS IN SUPPORT: Valley Fever Solutions writes that drug development is frightfully expensive, and vaccine development is even worse. Valley fever is considered an orphan disease, which means it is devilishly hard to find investors until drug development is significantly advanced, to the point scientists can demonstrate the drugs is going to work. Government support for combating this rare disease is important and precious and is often the make or break component without which motivated researchers simply have to turn away and work on other projects that have better support. SB 115 Page 7 Prepared by:Melanie Moreno / HEALTH / 5/31/15 12:39:13 **** END ****