BILL ANALYSIS                                                                                                                                                                                                    



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          ASSEMBLY THIRD READING
          AB 317 (Solorio)
          As Amended  January 15, 2010
          2/3 vote.  Urgency 

           EDUCATION           10-0        APPROPRIATIONS      17-0        
           
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          |Ayes:|Brownley, Nestande,       |Ayes:|De Leon, Conway, Ammiano, |
          |     |Ammiano, Arambula,        |     |Bradford, Charles         |
          |     |Buchanan, Eng, Garrick,   |     |Calderon, Coto, Davis,    |
          |     |Miller, Solorio,          |     |Fuentes, Hall, Harkey,    |
          |     |Torlakson                 |     |Miller, Nielsen, John A.  |
          |     |                          |     |Perez, Skinner, Solorio,  |
          |     |                          |     |Audra Strickland,         |
          |     |                          |     |Torlakson                 |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Creates an urgency statute that clarifies the  
          Superintendent of Public Instruction's (SPI) calculation of  
          funding for the 2009-10 and 2010-11 fiscal year whenever Average  
          Daily Attendance (ADA) has been materially decreased as a result  
          of the H1N1 (2009) influenza virus.  Specifically,  this bill : 

          1)Deems an epidemic to exist, for the purposes of granting  
            emergency credit for lost ADA or for meeting the 175-day  
            school year requirement, as a result of any pupil absence  
            related to the H1N1 (2009) influenza virus in any public  
            elementary or secondary school.

          2)Specifies that any decrease in ADA resulting from a pupil  
            absence related to the H1N1 (2009) influenza virus is a  
            material decrease for the purposes of granting emergency  
            credit for lost ADA or for meeting the 175-day school year  
            requirement.

          3)Defines pupil absence related to the H1N1 (2009) influenza  
            virus to include, but not necessarily be limited to, an  
            absence of a pupil who has:

             a)   Tested positive for the H1N1 (2009) influenza virus,  
               also commonly known as "pandemic influenza" or "swine  
               flu;"and,









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             b)   Not tested positive for the H1N1 (2009) influenza virus,  
               but whose absence occurs during an outbreak of that virus  
               that leads to complete or partial closure of the school, or  
               to their parents or guardians reasonably concluding that  
               school attendance would subject those pupils to a  
               heightened danger of being stricken with that virus.

           EXISTING LAW  :

          1)Provides funding for school districts that is, in part, based  
            on ADA, where ADA is calculated by dividing the number of days  
            of attendance for all pupils enrolled in the district by the  
            number of instructional days in the district's fiscal year  
            (FY), and a day of attendance is generally defined as a  
            minimum number of instructional minutes (specific to grade  
            level) in a classroom setting under the supervision of a  
            certificated employee of the school district.

          2)Authorizes the SPI, for the purposes of calculating funding  
            whenever ADA has been materially decreased as a result of an  
            emergency related to fire, flood, impassable roads, an  
            epidemic, an earthquake, a major safety hazard, a  
            transportation strike, or an order related to war or civil  
            disorder, to credit a local educational agency (LEA) with the  
            approximate ADA that would have been credited to the LEA had  
            the emergency not occurred.

          3)Defines, in regulation, a material decrease in ADA for the  
            purposes of granting emergency credit to occur when at least  
            ten percent of the students who would normally attend a school  
            do not attend on any one day.

           FISCAL EFFECT  :  Potential loss of General Fund/Proposition 98  
          savings, likely less than $50,000, to continue providing revenue  
          limit funding (general purpose) to school districts due to H1N1  
          absences.


           COMMENTS  :  Influenza A (H1N1) virus is the most common cause of  
          influenza (flu) in humans.  Some strains of H1N1 are endemic in  
          humans and cause a small fraction of all influenza-like illness  
          and a small fraction of all seasonal influenza.  H1N1 strains  
          caused a small percentage of all human flu infections in  
          2004-2005.  Other strains of H1N1 are endemic in pigs (swine  








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          influenza) and in birds (avian influenza).  In June 2009, the  
          World Health Organization (WHO) declared that flu due to a new  
          strain of swine-origin H1N1 was responsible for the 2009 flu  
          pandemic.  This pandemic H1N1 (2009) virus is often called swine  
          flu by the media.  



          According to an Oxford University study reconstructing the  
          origins and timescale of the 2009 flu pandemic, the H1N1 "strain  
          has been circulating among pigs, possibly among multiple  
          continents, for many years prior to its transmission to humans."  
           The report also concluded that the H1N1 (2009) strain was  
          "derived from several viruses circulating in swine," and that  
          the initial transmission to humans occurred several months  
          before recognition of the outbreak. According to the  
          researchers, movement of live pigs between Eurasia and North  
          America "seems to have facilitated the mixing of diverse swine  
          influenza viruses, leading to the multiple reassortment events  
          associated with the genesis of the (new H1N1) strain." 



          The virus is contagious and is believed to spread from human to  
          human in much the same way as seasonal flu, though H1N1 (2009)  
          is more contagious than seasonal flu and the contagious stage  
          lasts longer.  The virulence of swine flu virus is actually mild  
          and the mortality rates are relatively low.  In mid-2009 the US  
          Centers for Disease Control and Prevention (CDC) noted that most  
          infections were mild, similar to seasonal flu, and that recovery  
          tended to be fairly quick. The number of deaths from the H1N1  
          (2009) virus remains a only fraction of the annual number of  
          deaths from seasonal flu.  According to the WHO in November,  
          2009, "more than 207 countries and overseas territories or  
          communities have reported laboratory confirmed cases of pandemic  
          influenza H1N1 2009, including over 7,820 deaths"; WHO has also  
          tracked more than 622,482 laboratory-confirmed cases of H1N1.   
          The first case of H1N1 (2009) influenza was detected in  
          California on April 18, 2009.



          Due to the virus' historical origins, including earlier  
          outbreaks of H1N1-type strains in the 1970s, the CDC  has found  








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          that children have no preexisting immunity to the H1N1 (2009)  
          strain but that adults, particularly those over 60, have some  
          degree of immunity.  This has created disproportionate impacts  
          among public school students and has led to greater absences  
          than generally experienced during seasonal flu outbreaks.



          The pandemic nature of the H1N1 (2009) outbreak, the difficulty  
          in making a symptom-based diagnosis that distinguishes between  
          H1N1 and seasonal flu, and the time and cost involved in using  
          laboratory tests to make that distinction led the medical  
          community in many cases to abandon laboratory testing for H1N1  
          (2009).  In turn, state and county health officials, who are  
          responsible for issuing proclamations in the event of epidemics,  
          across the state have reacted in various ways; in some counties  
          officials have declared a H1N1 (2009) epidemic after flu  
          symptoms have been noted in the county population, while in  
          other counties no epidemic has been declared because no  
          laboratory confirmation of H1N1 (2009) has been made.  This  
          non-level playing field has the potential for creating  
          inequitable impacts on funding for public schools.



          Much of the funding for California's public schools is based on  
          pupil attendance; as more pupils are absent, funding falls.   
          Current law allows the SPI, in the event of specified  
          emergencies or disasters, including epidemics, that lead to a  
          material decrease in ADA, to credit a LEA with the attendance  
          and funding that would have been received if the emergency had  
          not occurred.  In the case of absences resulting from illness,  
          the SPI has relied on state and county health officials'  
          declarations of the existence of an epidemic to certify that the  
          absences resulted from an epidemic.  Clearly the non-level  
          playing field created by different decisions with respect to  
          declaring an epidemic makes the application of current law to  
          the case of the H1N1 (2009) pandemic problematic.  The author  
          notes that, "Existing state law is inadequate to preserve  
          funding to schools during this crisis."



          In addition, current law and regulation define a material  








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          decrease in ADA for the purposes of granting emergency ADA  
          credit to occur when at least 10% of the students who would  
          normally attend a school do not attend on any one day.  The  
          author explains that, "Thus, large schools can experience  
          250-400 students who are home ill with the swine flu, but those  
          schools cannot claim the ADA relief since they have not reached  
          the 10% threshold."  It should be noted that this 10% threshold  
          does not create a problem for FY 2009-10; on April 28, 2009 the  
          Governor declared a state of emergency with respect to the swine  
          flu, thus allowing the SPI to treat any decrease in attendance  
          as material under current law.  The 10% threshold issue will,  
          however, be relevant in FY 2010-11 if H1N1 (2009) related  
          absences continue.

          This bill proposes to eliminate the inequities that result under  
          current law and processes with respect to absences related to  
          the H1N1 (2009) virus by deeming an epidemic to exist, for the  
          purposes of granting emergency credit for lost ADA or for  
          meeting the 175-day school year requirement, as a result of any  
          pupil absence related to the H1N1 (2009) influenza virus in any  
          public elementary or secondary school, and by specifying that  
          any decrease in ADA resulting from a pupil absence related to  
          the H1N1 (2009) influenza virus is a material decrease for the  
          purposes of granting emergency credit for lost ADA.  The  
          problems in applying current law to the situation that have  
          arisen with the H1N1 (2009) virus are real, and this bill  
          provides a valid proposal for mediating those problems; in  
          addition, by making H1N1 (2009) specific changes, this bill  
          deals with these issues within existing law and a process that  
          has been in place for more than thirty years, and allows both  
          the SPI and LEAs to resolve this issue using that  
          well-understood, long-used process.


           Analysis Prepared by :    Gerald Shelton / ED. / (916) 319-2087 

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