BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           2786 (Monning)
          
          Hearing Date:  8/2/2010         Amended: 4/14/2010
          Consultant: Katie Johnson       Policy Vote: Health 8-0
          _________________________________________________________________ 
          ____
          BILL SUMMARY:  AB 2786 would require the California Department  
          of Public Health (CDPH) to establish a list of communicable  
          diseases and conditions for which clinical laboratories must  
          submit specimens to the local public health laboratory to  
          undergo further testing and to specify conditions under which  
          the specimens must also be submitted to the state public health  
          laboratory. The bill would permit the list to be established and  
          to be modified at anytime, instead of through the current  
          regulatory process, in consultation with stakeholders.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund
                                                                  
          CDPH additional                       up to $185       up  
          to$370up to $370General
          laboratory staff

          Local public health             unknown, but potentially  
          significant ifGeneral*
          additional laboratory staff     the laboratories workload  
          increased
                                   enough to need to hire an additional  
          technician               

          *Could be eligible for reimbursement by the Commission on State  
          Mandates
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: This bill meets the criteria for referral to the  
          Suspense File.

          This bill would require the California Department of Public  
          Health (CDPH) to establish a list of communicable diseases and  
          conditions for which clinical laboratories must submit specimens  










          to the local public health laboratory to undergo further testing  
          and to specify conditions under which the specimens must also be  
          submitted to the state public health laboratory. The list's  
          establishment would not be subject to the rulemaking process  
          under the Administrative Procedures Act (APA). Additionally,  
          CDPH could update the list at anytime, instead of through the  
          current regulatory process. Both the establishment and any  
          modifications of the list would be required to be done in  
          consultation with the California Conference of Local Health  
          Officers and the California Association of Public Health  
          Laboratory Directors.

          Currently, no such list exists in a single place in statute or  
          regulations. California statute contains a requirement to  
          establish a list of reportable diseases and conditions,  
          communicable and non-communicable, in a manner similar to this  
          bill-exempt from the APA rulemaking process and in consultation  
          with stakeholders. California regulations contain the list of  
          dozens of reportable diseases and the timelines in which they  
          must be reported to local health officers and CDPH. They also  
          specify when cultures or 

          Page 2
          AB 2786 (Monning)

          specimens of certain diseases must be sent to a local public  
          health laboratory or CDPH laboratories. Currently, salmonella is  
          the only specimen required to be forwarded to the CDPH  
          laboratory from the local public health laboratory. Tuberculosis  
          and malarial blood films are required to be sent from a clinical  
          laboratory to either a local public health laboratory or to the  
          CDPH laboratory.

          This bill would state that it is the intent of the Legislature  
          to enable prompt identification of an outbreak and rapid  
          reporting and laboratory identification during an outbreak  
          situation, the emergence of a new disease or condition, or the  
          recognition of an identified disease or condition that may  
          constitute a danger to the public's health?The public health  
          laboratory must obtain the necessary specimens from all sources  
          in order to be able to quickly identify the organisms causing  
          illnesses and compare the subtypes, thus allowing a timely  
          public health response.

          Since the intent of this bill is to increase the ability of  
          state and local governments to adapt to emerging public health  










          risks through a system of culture and specimen testing, this  
          bill would increase the workload of both local and state public  
          health laboratories to the extent the establishment of the list  
          requires additional testing of cultures and specimens not  
          currently required by statute or regulation.

          In order to provide for up to 3 staff to process an increased  
          amount of analysis, CDPH could need resources of up to $370,000  
          annually, commencing with half year costs in FY 2010-2011.  
          Actual costs and staffing needs would depend on the composition  
          of the list and the terms under which a clinical and/or local  
          public health laboratory would be required to submit a culture  
          or specimen to the state laboratory.

          Similarly, there could be unknown costs to local public health  
          laboratories-each local health department is required to have  
          services available at an official public health laboratory that  
          can include one run by CDPH-to hire additional staff to the  
          extent that the list increases the number of cultures and  
          specimens that they would analyze. Again, actual costs and  
          staffing needs would depend on the magnitude of the increase of  
          cultures and specimens for which the list would require  
          characterization. Since this bill does not identify a specific  
          funding source for potential increased local costs, any  
          increased expenses could be found to be reimbursable by the  
          State Commission on Mandates.

          Although there is the potential for increased costs at the state  
          and local levels, this bill could also result in cost avoidance  
          for CDPH-the department would no longer incur the cost and time  
          associated with the promulgation of regulations related to the  
          addition of a disease for which a local public health laboratory  
          or a CDPH laboratory would receive a specimen. However, any  
          potential savings would not fully offset the costs of providing  
          ongoing laboratory staff.