BILL ANALYSIS �
AB 70
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Date of Hearing: January 19, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 70 (Monning) - As Amended: January 5, 2012
Policy Committee: HealthVote:12-1
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill requires the state Department of Public Health to
develop a plan to increase their flexibility to respond to
federal funding opportunities. Specifically, this bill:
1)Requires that DPH examine all appropriate methods at its
disposal, including, but not limited to, direct applications
and applications in partnership with other public and
nonprofit entities.
2)Specifies that the plan shall be developed in order to provide
a stronger evidence base for public health prevention
activities, including improving nutrition, enhancing physical
activity, and addressing health disparities.
FISCAL EFFECT
1)One-time costs to DPH will likely be minor and dependent on
the thoroughness and depth of DPH's review and its results.
If significant research and input from many different
stakeholders is needed to develop the plan, costs could be
higher but are not likely to exceed $100,000. The bill is not
likely to result in a need for additional positions, but could
redirect staff time away from other work.
2)The bill only requires a plan; it does not require that DPH
implement the plan. Depending upon what process improvements
the plan suggests, implementation of the plan produced
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pursuant to this bill could result in additional costs. For
example, creating new types of contractual arrangements could
result in minor additional administrative costs.
3)If the report yields a plan that is implemented and improves
the state's ability to complete grant applications, the state
could receive more funding through federal grants as compared
to the status quo. The extent to which this would occur is
unknown.
COMMENTS
1)Rationale . According to the author, this bill attempts to
ensure that California Department of Public Health makes use
of all appropriate methods to apply for federal funding,
thereby maximizing the ability of the state to compete for
federal grants. The author maintains that the state faces
many challenges that impede its ability to secure funding,
including bureaucratic and funding limitations, lack of
personnel, and chronic funding shortages.
The author cites recent, situations where CDPH lacked capacity
to apply directly for federal grants, yet could not
effectively partner with other public or non-profit agencies
that could have applied on the state's behalf. He indicates
that although these so-called "designated agent" arrangements
have been used successfully in the past, CDPH currently has
scaled back the use of agents to apply for and administer
grants, citing uncertain authority. This bill is sponsored by
the Public Health Institute, a non-profit organization that
has a long history of partnership with CDPH and administration
of public health grants and programs.
2)Public Health Prevention Funding Opportunities . Public health
prevention strategies promote healthy lifestyles and habits in
order to prevent disease and disability. The Centers for
Disease Control and Prevention (CDC) is the primary federal
agency for conducting and supporting public health prevention
activities. In addition to grant opportunities that the CDC
has long offered, specific public health prevention funding
has been made available through recent federal legislation,
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including the 2009 federal stimulus package, the 2010 federal
health care reform law, and recent child nutrition and farm
bills.
3)Current CDPH Process for Seeking Federal Grants . Currently,
CDPH indicates that opportunities for federal grants are
identified by programs within the department, and decisions on
which to apply for are made at both the program and department
(executive) level. Applications are driven both by
availability of funding and the extent to which the
opportunities meet DPH's mission and strategic objectives.
CDPH applies for some grants in partnership with other
entities, primarily local health jurisdictions (city or county
health departments) or non-profit entities.
CDPH also indicates that outside entities have coordinated
applications for certain grants in partnership with CDPH.
Outside entities, according to the department, are often able
to effectively coordinate the application for and
administration of grants involving multiple partners.
4)CDPH Success With Procuring and Administering Federal Grants .
CDPH currently receives a variety of federal grants, both
competitive and fixed. No objective assessment of CDPH's
overall success with procuring federal grants is available,
and the department has not performed such an assessment.
However, a 2011 independent review of the department cited a
lack of effective internal governance and identified problems
with contracts and procurement. Weaknesses in these areas may
hamper the department's effectiveness in accessing and
administering federal grants.
In addition, there is anecdotal evidence indicating that the
department has faced challenges in effectively coordinating
applications for federal funding. For example, PHI, the
sponsor of this bill, indicates that in 2011, CDPH's late
decision not to apply for a federal Community Transformation
Grant resulted in PHI submitting a last-minute application in
an ultimately successful attempt to capture funding for the
state. CDPH indicates the department is currently exploring
options to increase its ability to apply for federal grant
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opportunities that align with the department's mission and
strategic objectives.
Analysis Prepared by : Lisa Murawski / APPR. / (916) 319-2081