BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   SB 769|
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                                 THIRD READING


          Bill No:  SB 769
          Author:   Alquist (D)
          Amended:  5/28/09
          Vote:     21

           
           SENATE HEALTH COMMITTEE  :  11-0, 4/22/09
          AYES:  Alquist, Strickland, Aanestad, Cedillo, Cox,  
            DeSaulnier, Leno, Maldonado, Negrete McLeod, Pavley, Wolk

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


           SUBJECT  :    Federal funding:  economic stimulus:  local  
          health 
                        administration

           SOURCE  :     Health Officers Association of California 


           DIGEST  :    This bill requires federal funding received  
          pursuant to the American Recovery and Reinvestment Act of  
          2009, for purposes of chronic disease prevention and  
          wellness, to be subject to appropriation by the Legislature  
          commencing with the 2009-10 fiscal year.

           ANALYSIS  :    Under existing federal law, the American  
          Recovery and Reinvestment Act of 2009 (Recovery Act), makes  
          supplemental appropriations for job preservation and  
          creation, infrastructure investment, energy efficiency and  
          science, assistance to the unemployed, and state and local  
          fiscal stabilization, for the fiscal year ending September  
          30, 2009.
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          Existing state law establishes local health departments to  
          protect and preserve the public health, and provides for  
          the allocation of state aid to local health departments  
          according to a specified formula for prescribed purposes,  
          including communicable disease control activities and  
          community and public health surveillance activities.

          This bill:

          1.Requires federal funding received pursuant to the  
            Recovery Act, for purposes of chronic disease prevention  
            and wellness, to be subject to appropriation by the  
            Legislature commencing with the 2009-10 fiscal year.

          2.Provides that its provisions apply when federal funding  
            is allocated and expended for disease control and  
            prevention activities by local health jurisdictions.

           Background
           
          The Recovery Act includes spending increases and tax  
          relief, intended to spur an economic recovery and create  
          jobs.  The final bill includes $507 billion in spending  
          programs and $282 billion in tax relief.   According to a  
          summary of the House Committee on Appropriations, the money  
          allocated for healthcare-related activities is distributed  
          as follows:

          1. Health Information Technology: $19 billion to jumpstart  
             efforts to computerize health records.

          2. Prevention and Wellness Fund: $1 billion to fight  
             preventable chronic diseases and infectious diseases. Of  
             this amount, $300 million goes towards immunization  
             programs and $650 million goes towards clinical and  
             community-based prevention and wellness strategies.

          3. Healthcare Effectiveness Research: $1.1 billion for  
             Healthcare Research and Quality programs to compare the  
             effectiveness of different medical treatments. 

          4. Community Health Centers:  $2 billion for the provision  
             of services to the uninsured, renovate clinics, and make  







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             health information technology improvements.

          5. Training Primary Care Providers: $500 million to address  
             workforce shortages and future demand.  

          6. Indian Health Service: $500 million to modernize aging  
             hospitals and health clinics and make healthcare  
             technology upgrades to improve healthcare for  
             underserved rural populations.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  5/27/09)

          Health Officers Association of California (source)


           ARGUMENTS IN SUPPORT  :    According to the Health Officers  
          Association of California (HOAC), hiring public health  
          nurses and other professionals will immediately stimulate  
          the economy by providing an infusion of money to local  
          health departments that have been forced to slash their  
          workforce as a result of the economic downturn.  HOAC  
          writes that this bill will make sure that public health  
          funding provided by the federal government will be used  
          where it can do the most good, both for the economy and for  
          public health.


          CTW:do  5/27/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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