BILL ANALYSIS �
AB 70
Page 1
ASSEMBLY THIRD READING
AB 70 (Monning)
As Amended January 23, 2012
Majority vote
HEALTH 12-1 APPROPRIATIONS 12-0
-----------------------------------------------------------------
|Ayes:|Monning, Ammiano, Atkins, |Ayes:|Fuentes, Blumenfield, |
| |Bonilla, Eng, Gordon, | |Bradford, Charles |
| |Hayashi, | |Calderon, Campos, |
| |Bonnie Lowenthal, | |Chesbro, Gatto, Hall, |
| |Mitchell, Pan, | |Hill, Ammiano, Mitchell, |
| |V. Manuel P�rez, Williams | |Solorio |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Smyth | | |
| | | | |
-----------------------------------------------------------------
SUMMARY : Expands the California Department of Public Health's
(DPH) authority to submit applications in partnership with other
nonprofit health entities to increase DPH's responsiveness and
flexibility when applying for funding opportunities related to
health prevention. Specifically, this bill :
1)Expands DPH's authority to submit applications in partnership
with other nonprofit health entities to increase DPH's
responsiveness and flexibility when applying for funding
opportunities related to health prevention such as those
available under the Affordable Care Act (ACA), the Healthy,
Hunger-Free Kids Act of 2010 (HHFKA), and the farm bill.
2)Permits DPH to take actions specified in 3) below, if all of
the following conditions are met:
a) There is a request for application, funding opportunity
announcement, or other similar solicitation issued by the
federal government, a state or local government outside of
California, or a nonprofit corporation, or their
contractors, grantees, or agents;
b) DPH is eligible to apply to the application, funding
opportunity announcement, or solicitation; and,
AB 70
Page 2
c) The application, funding opportunity announcement, or
solicitation is for a public health project that advances
the goals described in 7) below and the goals are, in whole
or in part, within the powers of DPH.
3)Permits DPH to take any of the following actions if all of the
requirements of 2) above have been met:
a) DPH may enter into a memorandum of understanding (MOU)
or agreement with another eligible applicant or entity
formed by two or more eligible applicants. Requires the
MOU or agreement to provide that the other eligible
applicant will respond to the application, funding
opportunity announcement, or solicitation as the lead
agency; or,
b) If eligibility to apply to an application, funding
opportunity announcement, or solicitation is restricted to
state and local health departments, and entities designated
by state and local health departments, permits DPH to enter
into a written MOU or agreement with a local health
department and its designees, public or private institution
of higher education, nonprofit organization, or separate
entity controlled by two or more of these entities.
Requires the MOU or agreement to provide that the entity
will be designated by DPH, in writing, to respond to the
solicitation as the lead agency.
4)Permits DPH to notify local health departments, public or
private institutions of higher education, nonprofit
corporations whose purpose includes public health, and
separate entities controlled by two or more of these entities,
of the opportunity to submit their credentials for designation
as a lead agency pursuant to 3) inclusive, above. Permits DPH
to review the credentials of entities that respond to the
notice and designate a qualified lead agency for purposes of
responding to and administering the activities described in a
request for application, funding opportunity announcement, or
other similar solicitation.
5)Requires a qualified lead agency designee to have the
institutional capacity to respond to and administer the
activities described in a request for application, funding
opportunity announcement, or similar solicitation.
AB 70
Page 3
6)Requires a qualified lead agency designee to agree in advance
to terms and conditions of designation specified by DPH, which
are to include, but are not limited to, the following:
a) Acceptance of full responsibility for compliance with
the terms and conditions of the award;
b) Granting of permission to the state to use, reproduce,
modify, and distribute intellectual property arising out of
the performance of the award to the extent permitted by the
award;
c) Indemnification of the state from and against any
claims, expenses, or liability arising out of the award;
and,
d) Appropriate provisions for the cancellation of the MOU
or agreement for the convenience of the state.
7)Requires the goals of public health projects described in
subdivision 1) above to include any of the following:
a) The creation of healthier school and community
environments, including, but not limited to, healthful food
options, free drinking water, and physical activity;
b) The creation of an infrastructure to support active
living and access to nutritious foods;
c) The development and promotion of programs targeting a
variety of age levels to increase healthy eating, physical
activity, food security, smoking cessation, mental health,
and safety, as well as address special population needs;
d) The promotion and improvement of access to healthful
food options in schools, child care facilities,
communities, worksites, and other settings;
e) The assessment and implementation of worksite wellness
programs; and,
f) The prioritization of strategies to address inequities
that lead to racial and ethnic health disparities.
AB 70
Page 4
8)Makes various legislative findings and declarations, including
the following:
a) Given the significant fiscal challenges ahead for
California, it is important for the Legislature to ensure
that state agencies maximize their opportunity to obtain
additional federal funds, particularly in cases where doing
so could offset state General Fund costs or assist the
state with the transformation of California's health care
system and the health and well-being of California's
children; and,
b) States it is the intent of the Legislature to take full
advantage of federal funding opportunities, such as the
ACA, the HHFKA, and the farm bill to improve state health
care and nutrition programs and invest in health prevention
and education, with the goal of building, promoting, and
sustaining healthy communities through a community
prevention focus that includes efforts toward the reduction
of chronic disease rates, the elimination of conditions
that lead to health disparities, and an increase in the
cultural and linguistic appropriateness of health and
nutrition services.
EXISTING FEDERAL LAW :
1)Authorizes the ACA (Public Law 111-148), a federal statute
signed into law along with the Health Care and Education
Reconciliation Act of 2010 (Public Law 111-152), to increase
access to health care through a number of measures, including
expanding Medicaid eligibility, subsidizing insurance
premiums, and setting aside funds for health promotion and
disease prevention, among other health issues.
2)Authorizes the HHFKA (Public Law 111-296) as a funding
mechanism and sets policy for United States Department of
Agriculture's (USDA's) core nutrition programs: the National
School Lunch Program, the School Breakfast Program, the
Special Supplemental Nutrition Program for Women, Infants and
Children, the Summer Food Service Program, and the Child and
Adult Care Food Program.
3)Authorizes the farm bill, officially known as The Food,
AB 70
Page 5
Conservation and Energy Act of 2008 (Public Law 110-246) which
governs federal farm and food policy.
EXISTING STATE LAW establishes and authorizes DPH to protect,
preserve, and advance public health.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, if the new authority provided in this bill increases
DPH's ability to apply for and receive grant funding, the state
could receive an increase in grant funding as compared to the
status quo. The amount and likelihood of a potential increase
in grant funding is unknown.
COMMENTS : According to the author, this bill would help ensure
that California takes full advantage of the federal prevention
grant opportunities such as those available under the federal
ACA, the HHFKA, and the farm bill. The author maintains that
the state faces many challenges that would limit the ability to
operate independently to secure federal and private funding and
to implement public health programs. These barriers include
bureaucratic and political limitations, human resource scarcity,
and chronic funding shortages, among many others. Such problems
are exacerbated by fiscal and economic challenges that limit the
ability of public health agencies to marshal the effort needed
to respond to emerging funding opportunities. Expanding DPH's
authority to use methods such as application partnerships with
other public and non-profit entities or other innovative
solutions will help to mitigate these problems and increase
DPH's effectiveness at securing federal funding. The author
argues that the current state fiscal situation requires that
innovative solutions be advanced to protect and improve the
public's health and secure the maximum level of federal funding
to support state and local public health programs.
According to the July 2008 Trust for America's Health
publication, Prevention for a Healthier America, investing $10
per person per year in proven community-based programs to
increase physical activity, improve nutrition, and prevent
smoking and other tobacco use, could save the country more than
$16 billion annually within five years. Out of the $16 billion
in savings the report found, Medicare could save more than $5
billion, Medicaid could save more than $1.9 billion, and private
payers could save more than $9 billion.
AB 70
Page 6
Analysis Prepared by : Tanya Robinson-Taylor / HEALTH / (916)
319-2097
FN: 0003046