BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           2287 (Monning)
          
          Hearing Date:  8/12/2010        Amended: 7/15/2010
          Consultant: Katie Johnson       Policy Vote: Health 7-1
          _________________________________________________________________ 
          ____
          BILL SUMMARY:  AB 2287 would require the California Health and  
          Human Services Agency to direct the appropriate departments  
          within the agency to apply for federal grants made available by  
          the federal Affordable Care Act to allow the state to develop a  
          stronger evidence base of effective prevention programming and  
          to engage in preventive care and health education activities  
          with specified goals.
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          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund
                                                                  
          CHHS staff to coordinate $50        $50      $50       General
          grant application activities

          State department activities         likely in the hundreds  
          ofFederal/
          related to grant procurement        thousands or millions of  
          dollars       General/
          and grant fund expenditures                            Other

          Cost pressure to continue state     likely in the hundreds  
          ofGeneral
          run grant activities after grant             thousands or  
          millions of dollars
          funding expiration                  
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          ____

          STAFF COMMENTS: SUSPENSE FILE. AS PROPOSED TO BE AMENDED.

          This bill would state that it is the intent of the Legislature  
          to ensure that state agencies maximize opportunities to obtain  
          additional federal funds through the Patient Protection and  
          Affordable Care Act (ACA), particularly when it can offset  
          General Funds, given California's significant fiscal challenges,  










          in order to improve state health care programs and invest in  
          health prevention and education, with the goal of building,  
          promoting, and sustaining healthy communities through reducing  
          chronic disease rates, eliminating conditions that lead to  
          health disparities, and increasing cultural and linguistic  
          appropriateness of health services.

          This bill would require the California Health and Human Services  
          Agency (CHHS) to direct the appropriate departments within the  
          agency to apply for federal grants under the Prevention and  
          Public Health Fund, created by Section 4002 of ACA, and the  
          Community Transformation Grants, created by Section 4201 of ACA,  
          to allow California to develop a stronger evidence base of  
          effective prevention programming and engage in preventive care  
          and health education activities, as specified. 

          The Prevention and Public Health Fund would be administered by  
          the federal Secretary for Health and Human Services (HHS) and  
          would be given out as grants to increase 
          Page 2
          AB 2287 (Monning)

          funding, over the 2008 level, for programs authorized by the  
          Public Health Services Act for prevention and wellness programs  
          such as the Community Transformation grant program, the  
          Education and Outreach Campaign Regarding Preventive Benefits,  
          and immunization programs. In FFY 2010, $500 million would be  
          available. This amount would grow over the subsequent years  
          through FFY 2015 in which $1.5 billion would be available. If  
          California were to apply for and obtain 10 percent of available  
          funds, the state would have the opportunity to spend $50 million  
          - $150 million through FY 2014-2015 and the first quarter of FY  
          2015-2016. States, local entities, and community and non-profit  
          organizations would be eligible to apply for these funds.

          While the amount of grant funding that California would secure  
          and spend would depend on the scope of the proposals that state  
          departments would develop and submit in their applications,  
          there could be cost pressure in the millions of dollars on the  
          General Fund and on other state funds in the event that the  
          grants for which the state would apply would require non-federal  
          matching funds as well as considerable General Fund cost  
          pressure likely in the millions of dollars to continue to fund  
          the programs created by the federal grants upon their  
          expiration.











          The author's proposed amendments would 1) require CHHS to direct  
          appropriate departments to apply for ACA grants only if CHHS  
          determines that there is a cost benefit to the state, 2) sunset  
          the provisions of this bill when ACA grant funding ends, 3)  
          require CHHS to notify the fiscal and appropriate policy  
          committees of the Legislature when the federal authority to  
          expend ACA funds expires.