BILL ANALYSIS                                                                                                                                                                                                    




                    Appropriations Committee Fiscal Summary
          
                                                201 (Romero)
          
          Hearing Date:  5/19/03               Amended: 4/29/03
          Consultant:     Miriam Barcellona Ingenito    Policy Vote:  
          EQ 5-2 
                                                                       
                                                  H&HS 8-1
          ____________________________________________________________ 
          ___
          BILL SUMMARY:  SB 201 would (1) transfer all of the  
          Department of Health Service's (DHS's) ionizing radiation  
          functions to the Department of Toxic Substances Control  
          (DTSC); and (2) require that future cleanups of sites  
          contaminated by radioactivity in California meet U.S.  
          Environmental Protection Agency standards.
                              Fiscal Impact (in thousands)
           Major Provisions        2003-04             2004-05               2005-06   
           Fund  
          DHS Program Shift      (about $15,000)                                
                         GF/SF*
          DTSC Program Shift     about  $15,000                                 
                        GF/SF**
          Additional DTSC Costs  unknown, in excess of $3,770 annually          
            GF
          UC Costs                       unknown, in excess of $1,000 annually  
                     GF
          _____________
          *Radiation Control Fund
          ** Radioactive Materials Control Fund, created in SB 201
          
          STAFF COMMENTS:  This bill meets the criteria for referral  
          to the Suspense file.  

          SB 201 would move most, but not all of the personnel from  
          DHS's radiological health and environmental management  
          branches to DTSC. Staff estimates that this would result in  
          about a $15 million program shift from DHS to DTSC.  DTSC  
          would be required to develop new position classifications  
          and hire second level supervisor positions and a  
          radiological health program manager. DTSC would likely  
          require additional legal staff and public participation  
          staff to deal with the increased workload.  Additionally,  
          SB 201 would require DTSC to complete and implement a  
          classification review of the health physicist  










          classification.  There would be additional costs associated  
          with physically moving those personnel and equipment, which  
          are spread throughout the State, and integrate them into  
          DTSC's headquarter and field offices.   Administrative  
          costs to the State would increase by about $3.77 million  
          annually because administrative costs per person are  
          significantly higher at DTSC ($37,000 per employee) than at  
          DHS ($8,000).  (Those estimates are based on the figures  
          presented in the Governor's 2003-2004 Budget submitted to  
          the Legislature in January.)
          
          SB 201 would (1) repeal the Radiological Control Law and  
          enact the Radioactive Materials Management Act, (2)  
          establish the Radioactive Materials Control Fund and (3)  
          require that all fees, penalties, interest earned and fines  
          collected under the Radioactive Materials Management Act be  
          deposited into the fund for expenditure by the department  
          upon appropriation by the Legislature to implement that  
          act.  SB 201 would create the Nuclear Medicine and  
          Radiological Materials Control Fund in the State Treasury  
          and would require the fees and 



































          SB 201 (Romero)
          Page 2

          penalties collected under certain provisions, including  
          certain moneys currently in the Radiation Control Fund, to  
          be deposited into the fund.  It would authorize the  
          department of Health Services to expend the money in the  
          fund to implement and enforce those provisions.  It is not  
          unclear what functions are remaining at DHS nor is it clear  
          how the existing funds in the current Radiation Control  
          Fund would be divided between the two new funds.

          In addition to the existing requirements under law that are  
          being transferred to DTSC, SB 201 would make new  
          definitions and has new requirements; for example, SB 201  
          would prohibit DTSC from certifying that a radioactive  
          contamination is remediated unless remediation is conducted  
          pursuant to specified standards, guidance, procedures and  
          practices (it would use a detection level equal to  
          back-ground). Given DTSC currently does not have expertise  
          in this area, it was unable to provide estimated costs to  
          fully implement SB 201. However, costs could be  
          significant. 

          The University of California (UC) would also incur  
          significant costs by the changes made in SB 201.  According  
          to UC, by changing regulations away from the current 500  
          millrem per year patient release limit to the risk level of  
          one cancer in a million as the patient release limit, SB  
          201 would significantly increase patient care costs without  
          providing individual or public health benefits.  Costs for  
          one treatment alone are estimated to be in excess of $1  
          million annually.  UC is currently working on other  
          estimates for other treatments that would be impacted.   
          STAFF NOTES that the author is working with UC and may  
          amend these provisions to not change the current patient  
          release limit.   



















          Based on figures taken from the Governor's 2003-2004  
          Budget, administrative costs are significantly higher per  
          person at DTSC than at DHS (see table below).  

           -------------------------------------------------------------------- 
          |Dept.|Total |Admin PYs  |Total Admin.  |Percentage of   |Admin/PY   |
          |     |PYs   |           |(in           |Positions in    |(in        |
          |     |      |           |thousands)    |Admin.          |thousands) |
          |-----+------+-----------+--------------+----------------+-----------|
          |DHS  |5,673.|816.8      |$44,957       |14.4%           |$8         |
          |     |5     |           |              |                |           |
          |-----+------+-----------+--------------+----------------+-----------|
          |DTSC |1,011.|187.5      |$37,871       |18.5%           |$37        |
          |     |7     |           |              |                |           |
           -------------------------------------------------------------------- 


          Administrative costs for 130 additional people, using  
          numbers in the Governor's budget, would result in increased  
          costs to DTSC of $4.81 million and savings of only $1.04  
          million to DHS (resulting in a $3.77 million cost to the  
          state).