BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 769
                                                                  Page  1

          Date of Hearing:   July 7, 2009

                            ASSEMBLY COMMITTEE ON HEALTH
                                  Dave Jones, Chair
                    SB 769 (Alquist) - As Amended:  June 30, 2009

           SENATE VOTE  :   Not relevant.
           
          SUBJECT  :  Federal funding:  supplemental appropriations:   
          pandemic flu.
           
          SUMMARY  :  Provides that federal funding received pursuant to the  
          federal Supplemental Appropriations Act for pandemic flu  
          preparedness and response is subject to appropriation by the  
          Legislature for allocation by the Department of Public Health  
          (DPH) pursuant to the existing federally approved state-local  
          plan.  Specifically,  this bill  :   

          1)Commencing with the 2009-10 fiscal year, makes subject to  
            appropriation by the Legislature in the annual Budget Act or  
            other statute federal funding received pursuant to H.R. 2346  
            (the federal Supplemental Appropriations Act, 2009) for  
            allocation by DPH for purposes of state and local public  
            health and emergency response infrastructure related to  
            pandemic flu, including, but not limited to, epidemiology,  
            communicable disease response, workforce, laboratory capacity,  
            public communications, and community mitigation guidance and  
            planning.

          2)Clarifies that this bill governs instances where federal  
            funding is allocated and expended for disease control and  
            prevention activities by local health jurisdictions (LHJs). 

          3)Requires DPH to allocate funds appropriated pursuant to this  
            bill to LHJs in the same proportion stipulated in the 2008-09  
            federally approved collaborative state-local plan.

          4)Makes legislative findings and declarations. 

           EXISTING LAW  :  

          1)Subjects funding received by DPH for bioterrorism preparedness  
            and emergency response to appropriation in the annual Budget  
            Act or other statute. 









                                                                  SB 769
                                                                  Page  2

          2)Provides for the allocation of federal funding to LHJs for the  
            purpose of preparing the state for public health emergencies,  
            including pandemic influenza, according to specified formulas  
            for specific fiscal years and for specified purposes. 

           FISCAL EFFECT  :  The current provisions of this bill have not  
          been analyzed by a fiscal committee. 

           COMMENTS  :   

           1)PURPOSE OF THIS BILL  .  According to the author, this bill is  
            needed to ensure appropriate allocation of federal funding for  
            emergency response and pandemic preparedness.  The author  
            states that for the past several years, the state has received  
            federal funds to be used for emergency preparedness and  
            response to such events as a pandemic flu outbreak.  Under the  
            existing state and local collaborative plan approved by the  
            federal government, 70% of the funding is distributed to LHJs,  
            while 30% remains with the state.  The federal supplemental  
            appropriations bill, H.R. 2346, provides $350 million in  
            one-time funding for state and local public health and  
            emergency response infrastructure, such as workforce,  
            laboratory capacity, public communications, and community  
            mitigation guidance and planning related to the H1N1 influenza  
            outbreak.  However, the author states, there is no linkage  
            between the H.R. 2346 funds and the existing statutory  
            mechanisms used to distribute emergency preparedness funds to  
            LHJs.  According to the author, this bill is needed to add the  
            H.R. 2346 funds to the previous stream of federal funds and  
            ensure that LHJs receive an adequate share of the funding.   
            The author further contends this bill facilitates timely  
            distribution of the funds.

           2)BACKGROUND  .  According to DPH, novel H1N1 is a new influenza  
            virus which was first detected in people in the United States  
            in April 2009 and which spreads from person-to-person, similar  
            to how regular seasonal influenza viruses spread.  The  
            symptoms of novel H1N1 flu virus in people are similar to the  
            symptoms of seasonal flu and include fever, cough, sore  
            throat, runny or stuffy nose, body aches, headache, chills,  
            and fatigue.  Some people infected with this virus also report  
            diarrhea and vomiting.  As of June 25, 2009, California had  
            1,294 confirmed cases and 225 probable cases, including 17  
            deaths and 142 hospitalizations, though most cases are mild  
            (for comparison, DPH reports that each year, approximately  








                                                                  SB 769
                                                                  Page  3

            4,500 Californians die from seasonal flu).  DPH states that  
            California hospital admissions and emergency room visits due  
            to the flu remain higher than normal for this time of year and  
            higher than what is typically seen during the traditional flu  
            season (October to May).  On June 11, the World Health  
            Organization raised the Pandemic Alert Level to Phase 6,  
            indicating that a global pandemic is underway.  Although the  
            H1N1 flu appears to be relatively mild, public health  
            officials remain concerned because flu viruses mutate quickly  
            and can become more virulent, in which case, a more serious  
            outbreak could occur in the fall.

           3)RECENT FEDERAL LEGISLATION  .  On June 24, 2009, President Obama  
            signed H.R. 2346, the Supplemental Appropriations Act, 2009,  
            which provides $1.85 billion to prepare for and respond to an  
            influenza pandemic, including the development and purchase of  
            vaccine, antivirals, medical supplies, diagnostics, and other  
            surveillance tools, and to assist international efforts and  
            respond to international needs relating to the 2009 H1N1  
            influenza outbreak, of which no less than $350 million is  
            intended for upgrading state and local capacity.  The last  
            conference report on HR 2346 states supplemental funding is  
            needed to continue to address the current H1N1 influenza  
            outbreak, but also to prepare for the potential of future  
            outbreaks, increased severity of the H1N1 virus, or for the  
            emergence of a new influenza strain.  Therefore, the funding  
            may be used for an array of pandemic influenza preparedness  
            and response activities. 

          4)INFORMATIONAL HEARING ON H1N1 INFLUENZA  .  On April 30, 2009,  
            the Senate and Assembly Committees on Health and the Senate  
            Select Committee on Disaster and Emergency Response held a  
            joint informational hearing on the H1N1 influenza outbreak.   
            During this hearing, DPH, California Emergency Management  
            Agency, Emergency Medical Services Authority, California  
            Department of Education, California Hospital Association,  
            California Primary Care Association, Health Officers  
            Association of California (HOAC), and California Association  
            of Public Health Laboratory Directors (CAPHLD) testified  
            regarding their response to the outbreak.  Witnesses stated  
            that due to funding cuts and anticipated personnel losses,  
            local health departments and local public health laboratories  
            might be unable to fully respond to a possible resurgence of  
            H1N1 flu in the fall.
           5)SUPPORT  .  HOAC, sponsor of this bill, writes that for the last  








                                                                  SB 769
                                                                  Page  4

            several years, the state has received federal funds to be used  
            for emergency preparedness and response to such events as a  
            pandemic flu outbreak.  HOAC states that because of the  
            economic downturn, California's local health departments have  
            been forced to lay off vital public health workers.  HOAC  
            recently surveyed its members and estimates that 920 local  
            public health personnel who were available to deal with the  
            H1N1 outbreak will not longer be available after July 1.  HOAC  
            argues that this bill is needed to ensure that LHJs receive a  
            significant portion of the H.R. 2436 funding.

           6)PREVIOUS LEGISLATION  .

             a)   SB 678 (Ortiz), Chapter 35, Statutes of 2004  
               appropriates $18,145,889 in federal funds to DPH (then  
               Department of Health Services) for implementing  
               bioterrorism and smallpox preparedness measures by the  
               state and LHJs.

             b)   SB 406 (Ortiz), Chapter 393, Statutes of 2002  
               establishes procedures and requirements to govern the  
               allocation to, and expenditure by, LHJs of federal funding  
               related to bioterrorist attacks and other public health  
               emergencies when LHJs are designated by a federal or state  
               agency to manage the funds for public health preparedness  
               and response to bioterrorist attacks and other public  
               health emergencies, pursuant to a specified federally  
               approved plan.  

           7)POLICY QUESTION  .  During the Informational Hearing on the H1N1  
            flu outbreak, representatives of primary care clinics and  
            hospitals expressed concern that they had not received timely  
            outbreak information from DPH, but also admitted that many of  
            their members were not enrolled in the California Health Alert  
            Network (CAHAN).  DPH has indicated that a significant  
            expansion of CAHAN to accommodate all hospitals and clinics  
            would require increased funding.  Should this bill require  
            some of the state's portion of H.R. 2346 funding be used to  
            expand CAHAN? 

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Health Officers Association of California (sponsor)








                                                                  SB 769
                                                                  Page  5

          County of Santa Clara Board of Supervisors
           
            Opposition 
           
          None on file. 


           Analysis Prepared by  :    Allegra Kim / HEALTH / (916) 319-2097