BILL ANALYSIS                                                                                                                                                                                                    






                                 SENATE HEALTH
                               COMMITTEE ANALYSIS
                        Senator Elaine K. Alquist, Chair


          BILL NO:       AB 2786                                      
          A
          AUTHOR:        Committee on Health                          
          B
          AMENDED:       August 20, 2010                             
          HEARING DATE:  August 25, 2010                              
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          CONSULTANT:                                                 
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          Orr/cjt                                                      
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                             PURSUANT TO S.R. 29.10

                                         
                                     SUBJECT
                                         
                       Reportable diseases and conditions
                                         
                                    SUMMARY  

          Allows the California Department of Public Health (CDPH) to  
          modify the list of communicable diseases and conditions for  
          which clinical labs must submit specimens to the local  
          public health laboratory to undergo further testing.   
          Allows CDPH to modify the list at any time, in consultation  
          with the California Conference of Local Health Officers  
          (CCLHO) and the California Association of Public Health  
          Laboratory Directors (CAPHLD). Authorizes additional  
          disclosures of public health records relating to human  
          immunodeficiency virus (HIV) or acquired immune deficiency  
          syndrome (AIDS) between specified local and state public  
          health agency staff, health care providers, and HIV  
          positive individuals who are the subject of the records.  
          Increases the penalties for negligent, willful or malicious  
          disclosure of content of any confidential public health  
          record to a third party, except as otherwise authorized by  
          law.

                             CHANGES TO EXISTING LAW  
                                                         Continued---



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          Existing law:
          Requires CDPH to establish a list of diseases and  
          conditions which local health officers are required to  
          report to CDPH, when identified.  The list may include both  
          communicable and noncommunicable diseases. Allows CDPH to  
          modify this list in consultation with CCLHO and exempts  
          this modification from the administrative regulation and  
          rulemaking requirements under California's Administrative  
          Procedures Act (APA).

          Exempts from civil and criminal penalties any person or  
          facility that fails to provide  notification of a  
          reportable disease or condition, unless the disease or  
          condition that is required to be reported has been printed  
          in the California Code of Regulations (CCR) for at least  
          six months. 

          Declares public health records relating to human  
          immunodeficiency virus (HIV) or acquired immunodeficiency  
          syndrome (AIDS) as confidential and prohibits their  
          disclosure, except as otherwise provided by law for public  
          health purposes or pursuant to a written authorization by  
          the person who is the subject of the record.

          Permits state or local public health agencies to disclose  
          personally identifying information in public health  
          records, as described, to other local, state, or federal  
          public health agencies or to corroborating medical  
          researchers, when the information is necessary to carry out  
          the duties of the agency or researcher in the  
          investigation, control, or surveillance of disease, as  
          determined by the state or local public health agency.

          Prohibits the negligent, willful or malicious disclosure of  
          the content of any confidential public health record, as  
          defined, to any third party, except pursuant to a written  
          authorization, as described or as otherwise authorized by  
          law, and establishes civil penalties for violations of  
          these provisions.  

          Establishes that any person who willfully, negligently, or  
          maliciously discloses the content of any confidential  
          public health record to a third party that results in  
          economic, bodily, or psychological harm to the person whose  




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          record was disclosed, is guilty of a misdemeanor,  
          punishable by imprisonment in the county jail and/or a fine  
          of up to twenty-five thousand dollars ($25,000).

          Existing regulations:
          Require health care providers and laboratories to report  
          cases of specified communicable diseases to the local  
          health officer where the patient resides. Allow individuals  
          to also report suspected cases of reportable diseases,  
          where no health care provider is available. Specify the  
          method(s) and timeframes by which certain diseases may be  
          reported.

          Require all local health department (LHD) employees and  
          contractors to sign a HIV/AIDS Confidentiality Agreement  
          prior to accessing confidential HIV-related public health  
          records, required to be renewed annually. Stipulates that  
          information reported pursuant to these regulations is  
          acquired in confidence and shall not be disclosed by the  
          LHO or his or her authorized designee except as authorized.  
          
          
          This bill:
          Requires CDPH to establish a list of communicable diseases  
          and conditions for which clinical laboratories shall submit  
          a culture or a specimen to the local public health  
          laboratory to undergo further study. Deletes specific  
          diseases that are enumerated in law as mandatory reportable  
          diseases.

          Permits CDPH to modify the list at any time, after  
          consultation with the CCLHO and the CAPHLD, without being  
          subject to regular rulemaking requirements under APA, but  
          requires that CDPH file the revised list with the Secretary  
          of State for publication in the California Code of  
          Regulations. 

          Exempts physicians, surgeons and clinical labs that fail to  
          submit cultures or specimens for mandatory diseases from  
          civil and criminal penalties, unless they had been notified  
          by CDPH and the requirement had been noticed by CDPH for at  
          least six months in the CCR.  

          Authorizes specified disclosures of public health records  
          relating to human immunodeficiency virus or acquired immune  




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          deficiency syndrome between specified local public health  
          agency staff, health care providers, specified state public  
          health agency staff,  and HIV positive individuals who are  
          the subject of the records, for the purposes of enhancing  
          completeness of sexually transmitted disease reporting to  
          the federal Centers for Disease Control and Prevention  
          (CDC) and offering and coordinating care and treatment  
          services to HIV positive persons. 

          Increases the penalties for negligent, willful or malicious  
          disclosure of content of any confidential public health  
          record to a third party, except as otherwise authorized by  
          law.
          
          Makes specified legislative findings and declarations  
          regarding the need to enable prompt identification of an  
          outbreak, send positive specimens to the public health  
          laboratory for identification, and enable CDPH to include  
          newly emerging diseases and conditions in a timely manner. 

          Contains contingent language to avoid chaptering out  
          provisions contained in AB 2541 (Portantino and Fletcher).

                                  FISCAL IMPACT  

          The Senate Appropriations Committee estimates up to  
          $185,000 GF for additional laboratory staff at CDPH for FY  
          10-11, and up to 370,000 in subsequent fiscal years.  
          Unknown but potentially significant fiscal impact at the  
          local level if the laboratories' workloads increased enough  
          to need to hire additional technicians. 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.

                            BACKGROUND AND DISCUSSION  

          According to the sponsor, the Health Officers Association  
          of California (HOAC), this bill will allow CDPH and local  
          public health authorities to respond to a public health  
          emergency in a timely manner by removing the regulatory  




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          requirement to include new diseases and conditions on the  
          list of reportable diseases and conditions. Under current  
          law, several dozen diseases are reportable by mandate and a  
          subset of these requires submission of specimens. While the  
          mandatory disease listing has changed over time, the  
          universe of diseases under consideration has remained  
          fairly stable. According to the sponsor, it could take as  
          long as one and one-half to two years for CDPH to update  
          the list of reportable diseases, under existing law.  
          Whereas, under AB 2786, it could take as little as two  
          months, thereby providing CDPH greater flexibility in a  
          public health emergency.

          Existing law does not exempt CDPH from complying with APA  
          requirements when modifying the list of reportable diseases  
          and conditions for which public health labs are required to  
          submit specimens. The sponsor notes that there have been  
          instances in which CDPH has requested clinical laboratories  
          to submit specimens on a voluntary basis for potentially  
          severe bacterial diseases such as Shiga-toxin producing E.  
          coli. The sponsor claims that providing these types of  
          samples on a voluntary basis does not ensure a large enough  
          sample size to detect common source outbreaks. This was  
          apparent during a recent E. coli outbreak, during which  
          clinical laboratories in California were not performing the  
          additional tests necessary for identifying clusters of  
          cases revealing a common source outbreak.  

          According to the author, the most recent amendments will  
          allow further disclosure of personally identifying  
          information contained in HIV/AIDS-related public health  
          records for the purposes of HIV/AIDS reporting, care and  
          treatment services and case management. These amendments  
          will also allow HIV/AIDS, STD, and TB co-infection  
          reporting, medical care, and treatment. This will help  
          further CDPH's goals of increased reporting for HIV/AIDS  
          and increased reporting for HIV/AIDS, STD, and TB  
          co-infections. This should also help secure a maximum  
          amount of Ryan White and CDC federal funding for HIV/AIDS,  
          and improve the quality of patient care through better  
          coordination of HIV, STD, and TB co-infection care and  
          treatment. 

          Communicable disease reporting
          The list of nationally notifiable infectious diseases is  




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          revised periodically. For example, a disease may be added  
          to the list as a new pathogen emerges, or a disease may be  
          deleted as its incidence declines. Public health officials  
          at state health departments and CDC collaborate in  
          determining which diseases should be nationally notifiable;  
          the Conference of State and Territorial Epidemiologists  
          (CSTE), with input from CDC, makes recommendations annually  
          for additions and deletions to the list of nationally  
          notifiable diseases. However, reporting of nationally  
          notifiable diseases to CDC by the states is voluntary.  
          Reporting is currently mandated (i.e., by state legislation  
          or regulation) only at the state level. The list of  
          diseases that are considered notifiable, therefore, varies  
          slightly by state. All states generally report the  
          internationally quarantinable diseases (i.e., cholera,  
          plague, and yellow fever) in compliance with the World  
          Health Organization's International Health Regulations.

          In California, some diseases only require reporting from  
          health care providers by electronic transmission, including  
          facsimile, telephone, or mail within seven calendar days of  
          identification. Examples of these diseases include  
          Hepatitis (B, C, and D), Tetanus, and Toxic Shock Syndrome.  
          Diseases can also be required to be reported within one  
          working day of identification, including, but not limited  
          to foodborne diseases, Meningitis, Pertussis (Whooping  
          Cough), West Nile Virus, and Tuberculosis. More acutely  
          infectious diseases such as Avian Influenza, Rabies (human  
          or animal), and exposure to Anthrax all require immediate  
          reporting by telephone. Two or more cases of foodborne  
          disease from separate households suspected to have the same  
          source of illness, are also cause for immediate reporting  
          by telephone.  


          
          Clinical laboratories
          Health care providers who know of a case, or suspected  
          case, of any disease or condition on the CDPH list are  
          required to report to the local health officer of the  
          jurisdiction where the patient resides and are required to  
          send specimens to a clinical laboratory. Clinical  
          laboratories include all hospital laboratories and  
          community laboratories that receive tests from health care  
          providers for analysis.  Under regulation, labs are  




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          required to report test results on certain diseases  
          considered to be of "public health importance."  The list  
          of communicable diseases and conditions for which  
          laboratories in California must submit cultures is  
          currently established by regulation and adding or deleting  
          a disease or condition requires an administrative  
          regulation change under APA.  The APA does permit adoption  
          of emergency regulations, but requires a 5-day public  
          notice, and emergency regulations can only remain in effect  
          for up to 180 days.

          Confidential public health records 
          According to CDPH, all HIV/AIDS case reports and any  
          information collected or maintained in the course of  
          surveillance-related activities that may directly or  
          indirectly identify an individual are considered  
          confidential public health record(s) under California  
          Health and Safety Code (HSC) Section 121035(c) and must be  
          handled with the utmost confidentiality. Furthermore, HSC  
          121025(a) prohibits the disclosure of HIV/AIDS-related  
          public health records that contain any personally  
          identifying information to any third party, unless  
          authorized by law for public health purposes, or by the  
          written consent of the individual identified in the record  
          or his/her guardian/conservator. 

          Except as permitted by law, any person who negligently  
          discloses information contained in a confidential public  
          health record to a third party is subject to a civil  
          penalty of up to $2,500 plus court costs. Any person who  
          willfully or maliciously discloses the content of a public  
          health record, except as authorized by law, is subject to a  
          civil penalty of $5,000 to $10,000 plus court costs. Any  
          willful, malicious, or negligent disclosure of information  
          contained in a public health record in violation of state  
          law that results in economic, bodily, or psychological harm  
          to the person named in the record is a misdemeanor,  
          punishable by imprisonment for a period of up to one year  
          and/or a fine of up to $25,000 plus court costs. Each  
          disclosure in violation of California law is a separate,  
          actionable offense.

          Because an assurance of case confidentiality is the  
          foremost concern of the California Department of Public  
          Health, Office of AIDS (OA), employees are required to sign  




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          a Confidentiality Agreement. In the event of any suspected  
          breach, staff immediately notify the director or supervisor  
          of the local health department's HIV/AIDS surveillance unit  
          who in turn notify the Chief of the HIV/AIDS Case Registry  
          Section or designee. OA, in conjunction with the local  
          health department and the local health officer promptly  
          investigate the suspected breach. Any evidence of an actual  
          breach is reported to the law enforcement agency that has  
          jurisdiction. 

          HIV/AIDS funding
          California switched to name-based reporting in 2006 in  
          order to not risk major losses of federal Ryan White Act  
          funding. The state has since been in a transition period  
          between code-based reporting and full name-based reporting.  
          According to CDPH estimates, California's failure to be  
          fully name-based in HIV reporting, meant the loss of $3  
          million to $7 million in federal funding in 2009. 
          
          According to the LAO, only about 36,000 cases of HIV have  
          been reported by name to local health jurisdictions. This  
          number likely represents only one-third to one-half of HIV  
          cases statewide. According to the LAO, California could  
          potentially increase receipt of federal Ryan White Act  
          funding by several million to low tens of millions of  
          dollars annually simply by increasing the number of HIV  
          infections reported. 

          California spends roughly $1.2 billion a year (40 percent  
          GF) on medical treatment and HIV/AIDS programs. The Ryan  
          White Act provides $125 million in federal funding per year  
          to California. Increased federal funds would likely be used  
          to reduce GF spending for the treatment of the disease.

          Related bills
          AB 2541 (Portantino) of 2010 would delete the exemption  
          from electronic reporting for
          HIV infections and would make conforming changes. The bill  
          would provide that health care providers and laboratories  
          report cases of HIV infection to the local health officer  
          using patient names and set guidelines regarding such  
          reports. Pending in the Senate Health Committee.

          Prior legislation
          SB 541 (Alquist) Chapter 605, Statues of 2008, requires  




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          health care facilities to prevent unlawful or unauthorized  
          access to, use, or disclosure of, patients' medical        
          information and to establish safeguards to protect the  
          privacy of patients' medical information.  Authorizes CDPH  
          to levy administrative penalties against facilities for  
          failure to prevent unlawful or unauthorized access, use, or  
          disclosure of patients' medical information, and for  
          failure to report instances of unlawful or unauthorized  
          access, use, or disclosure of information.
          
          AB 211 (Jones) Chapter 602, Statutes of 2008, requires  
          every provider of health care to implement appropriate  
          specified safeguards to protect the privacy of a patient's  
          medical information. The bill would require every provider  
          of health care to reasonably safeguard confidential medical  
          information from unauthorized or unlawful access, use, or  
          disclosure.

          SB 356 (Negrete McLeod) of 2007 would have required CDPH to  
          establish a list of communicable diseases  and conditions  
          for which clinical laboratories are  required to submit  
          specimens to the local public health laboratory and state  
          public health laboratory for further testing. This bill  
          would have permitted the list to be modified by CDPH at any  
          time, in consultation with the California Conference of  
          Local Health Officers, and to exempt the modifications from  
          APA regulation change and rulemaking requirements.  SB 356  
          was vetoed by Governor Schwarzenegger because the delay in  
          passing the 2008-2009 state budget forced him to prioritize  
          the bills sent to his desk.  

          AB 682 (Berg), Chapter 550, Statutes of 2007, revised the  
          written and informed consent standards associated with  
          testing blood for the human immunodeficiency virus (HIV),  
          including prenatal HIV testing, to no longer require  
          affirmative approval prior to administering an HIV test.  
          Established the new HIV testing consent standard as the  
          right to decline the test.
          
          SB 699 (Soto), Chapter 20, Statutes of 2006, required  
          health care providers and laboratories to report HIV cases  
          by the patient's name rather than code in order to comply  
          with federal funding requirements.

          AB 1091 (Negrete McLeod), Chapter 262, Statutes of 2003,  




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          allows CDPH, in consultation with the California Conference  
          of Local Health Officers, to modify the list of reportable  
          diseases that health care providers are required to report.  
          CDPH can modify this list at any time without having to  
          comply with APA requirements.

                                  PRIOR ACTIONS

           Assembly Health:         18-0
          Assembly Appropriations: 15-0      
          Assembly Floor:     74-0
          Senate Health:      8-0
          Senate Appropriations:11-0

                                     COMMENTS
           
          1.  Senate Floor amendments. When this bill passed the  
          Senate Health Committee on June 30, 2010, the bill: a)  
          allowed CDPH to modify the list of communicable diseases  
          and conditions for which clinical labs must submit  
          specimens to the local public health laboratory to undergo  
          further testing; and b) allowed CDPH to modify the list at  
          any time, in consultation with the CCLHO and the CAPHLD.

          Recent Senate Floor amendments:
          a.  Authorize specified disclosures of public health  
          records relating to human 
               immunodeficiency virus (HIV) or acquired immune  
          deficiency syndrome (AIDS)  
               between specified local public health agency staff,  
          health care providers, specified 
               state public health agency staff,  and HIV positive  
          individuals who are the subject of 
               the records, for the purposes of enhancing  
          completeness of STD reporting to the 
               federal Centers for Disease Control and Prevention  
          (CDC) and offering and 
               coordinating care and treatment services to HIV  
          positive persons; 

          b.  Increase the penalties for negligent, willful or  
          malicious disclosure of content of any 
               confidential public health record to a third party,  
          except as otherwise authorized by 
               law; and, 




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          c.  Add contingent language to avoid chaptering out  
          provisions in AB 2541 (Portantino and Fletcher).

                                    POSITIONS  
                                        
          Support:  Health Officers Association of California  
          (sponsor)


          Oppose:  None received
                                        
                                   -- END --