BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1793
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          Date of Hearing:  April 17, 2012

                            ASSEMBLY COMMITTEE ON HEALTH
                              William W. Monning, Chair
                AB 1793 (Yamada) - As Introduced:   February 21, 2012
           
          SUBJECT  :  Public health: federal funding: public health 
          emergencies.

           SUMMARY  :  Adds long-term care facilities to the list of local 
          health entities eligible to receive federal funding allocated 
          for the prevention of, and response to, public health 
          emergencies.  Specifically,  this bill  :   

          1)Clarifies that federal funding received by the Department of 
            Public Health (DPH) for bioterrorism preparedness and 
            emergency response is subject to appropriation in the annual 
            Budget Act or other statute.

          2)Adds long-term care facilities to the list of local health 
            entities eligible to receive federal funding when federal 
            funding is allocated and expended for the prevention of, and 
            response to, bioterrorist attacks and other public health 
            emergencies in accordance with a federally approved 
            collaborative state-local plan.  

          3)Requires that all applicable procedures and requirements in 
            existing law related to the allocation and the expenditure of 
            federal funds for public health emergency preparedness 
            programs apply to long-term care facilities.

          4)Deletes the sunset date of September 2012, making permanent 
            the sections of law that authorize the expenditures of federal 
            funds for emergency response and preparedness.

          5)Declares that the provisions in this bill take effect 
            immediately as an urgency statute in order to ensure an 
            adequate and timely response to public health threats by 
            preventing the lapse of provisions relating to the allocation 
            and the expenditure of federal funds for public health 
            emergency preparedness programs.

           EXISTING LAW  :

          1)Establishes procedures and requirements to govern the 








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            allocation to, and expenditure by, local health jurisdictions, 
            hospitals, clinics, emergency medical systems, and poison 
            control centers, of federal funding received for the 
            prevention of, and response to, public health emergencies.

          2)Provides that these procedures apply only when the specified 
            entities are designated by a federal or state agency to manage 
            the funds for public health preparedness and response to 
            public health emergencies pursuant to a specified 
            federally-approved plan.  

          3)Requires funds to be allocated to these entities through the 
            use of agreements that are exempt from provisions that 
            establish public contracting standards.

          4)Makes the provisions in 1) through 3) above inoperative as of 
            September 1, 2012, and repeals these provisions as of January 
            1, 2013.
           FISCAL EFFECT  :   This bill has not yet been heard by a fiscal 
          committee.

           COMMENTS  :    

           1)THE PURPOSE OF THIS BILL  .  According to the author, during a 
            bioterrorist attack or other public health emergency, such as 
            an epidemic or flood, the demand for acute hospital care may 
            surge beyond hospital capacity or people may not be able to 
            get to an acute care hospital.  The author maintains that 
            alternative health care facilities and professionals must also 
            be utilized.  The author asserts that long-term care 
            facilities are numerous, care for some of the State's most 
            frail and vulnerable residents, have medical professionals and 
            supplies, and should be considered in emergency planning.  

          The author argues that federal law deems long-term care 
            facilities eligible for funding, while state law does not.  
            Current California law limits participants to local health 
            jurisdictions, hospitals, clinics, emergency medical systems, 
            and poison control centers.  The author maintains that the 
            lack of conformity between federal and state law is causing 
            confusion about the participation of long-term care facilities 
            and funding for their efforts.  The author asserts that this 
            bill corrects this discrepancy between California law and the 
            federal guidelines, allowing emergency planners to include 
            long-term care facilities to preserve public health and 








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            safety.

           2)BACKGROUND  .  According to the federal Centers for Disease 
            Control and Prevention (CDC), the events of September 11th and 
            the devastation caused by Hurricane Katrina demonstrate the 
            long-term impact of such events to the public health 
            infrastructure and the importance of emergency preparedness.  
            CDC maintains that the reality of bioterrorism, as exemplified 
            by the anthrax cases reported in the United States, 
            underscores the importance of preparing for possible 
            bioterrorist attacks.  Despite the fact that significant 
            progress has been made in overall preparedness, according to 
            CDC, the nation's ability to detect bioterrorist threats, 
            communicate these in real time to clinical, public health, and 
            lay communities, and effectively triage and treat afflicted 
            populations continues to raise concern - especially for 
            certain vulnerable populations, such as the elderly, whose 
            unique psychological and medical needs require special 
            attention.

          A 2004 CDC National Nursing Home survey estimates that nearly 
            1.5 million adults are admitted to the nation's 16,100 
            long-term care facilities each year.  As the United States 
            population continues to age, long-term care facilities have 
            become an increasingly important component of the health 
            system but were not incorporated into larger disaster planning 
            efforts in September 2001, when Congress initially 
            appropriated funding to CDC to expand its support nationwide 
            of state and local public health preparedness.  Most health 
            care preparedness planning efforts were focused on hospital 
            and first responder preparedness.  However, the potential role 
            and needs of preparedness on the part of long-term care 
            facilities has emerged in local and national preparedness 
            discussions and guidelines.  

          Under current California law, DPH is required to submit an 
            annual collaborative state and local plan to the federal 
            government for approval as a condition of receiving federal 
            funding.  According to DPH, long-term care facilities licensed 
            as skilled nursing facilities have been recognized as a 
            critical partner and included in the State's plan to ensure an 
            integrated response in delivering health care during 
            emergencies.  According to the California Association of 
            Health Facilities (CAHF), however, while in the past it was 
            interpreted by DPH's legal counsel that long-term care 








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            facilities were eligible to receive federal funding related to 
            emergency preparedness, in 2011 they were informed that new 
            DPH legal counsel had taken a different interpretation of 
            existing law and concluded that long-term care facilities are 
            not included in the eligible group to receive federal 
            emergency preparedness and response funds.  

           3)FEDERAL FUNDING FOR BIOTERRORISM AND EMERGENCY PREPAREDNESS  .  
            Under current California law, local health jurisdictions, 
            hospitals, clinics, emergency medical systems, and poison 
            control centers are eligible to receive federal funding for 
            bioterrorism preparedness and public health emergency 
            response.  According to DPH, the department receives the 
            following three separate funding sources for public health 
            emergency preparedness and response: a) A federal grant from 
            the CDC, Public Health Emergency Preparedness (PHEP); b) A 
            federal grant from the federal Department of Health and Human 
            Services' Assistant Secretary for Preparedness and Response 
            (ASPR), Hospital Preparedness Program (HPP); and, c)  Funds 
            from the State General Fund.

          DPH explains that Los Angeles County receives its PHEP and HPP 
            allocations directly from the CDC and ASPR.  For the rest of 
            the state, DPH maintains, that PHEP funds are restricted to 
            State and local health departments.  DPH allocates 70% of the 
            PHEP funds to 58 local health departments using an allocation 
            formula that provides each local health department with a base 
            of $100,000 and distributes the remaining funds on the basis 
            of each county's population.  DPH preparedness functions are 
            supported with the remaining 30% of the allocation.  

          HPP funds, according to DPH, are intended for health care 
            facility and emergency medical services preparedness with 75% 
            of the funds allocated directly to or on behalf of the local 
            level.  The California Hospital Association, CAHF and the 
            California Primary Care Association receive HPP funds to 
            strengthen health care facility preparedness.  HPP funds are 
            allocated to county HPP entities to build health care 
            coalitions.  DPH maintains that each local HPP entity receives 
            a base of $135,000; the remaining funds are distributed on the 
            basis of each county's population.  Coalitions include 
            hospitals, clinics, emergency medical services/systems and 
            long-term care facilities as other partners.  Each county 
            determines the priority for use of HPP funds by health care 
            facilities and emergency medical services.








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          According to the CDC, public health systems and their respective 
            preparedness programs face many challenges.  Federal funds for 
            preparedness have been declining, causing state and local 
            planners to express concerns over their ability to sustain the 
            real and measurable advances made in public health 
            preparedness.  DPH reports that in Fiscal Year (FY) 2009-10 
            California received $222,982,000 (includes federal H1N1 
            response funds); in FY 2010-11 $123,088,000; and, in FY 
            2011-12 $102,062,000.

           4)SUPPORT  .  CAHF writes in support that when the sections of 
            California law were initially written, long-term care 
            facilities were not identified as a significant element of 
            disaster planning and response in the healthcare continuum.  
            Since then, federal authorities have come to the realization 
            that long-term care is an important piece of the healthcare 
            continuum when preparing for, responding to and recovering 
            from an emergency/disaster.  CAHF maintains that the long-term 
            health care community is now a key player in the planning, 
            response, and recovery efforts of local jurisdictions and 
            statewide operations.  CAHF argues that it is prudent to 
            continue, as established in this bill, to include long-term 
            care facilities as an identified entity in order to continue 
            to improve California's emergency preparedness, response and 
            recovery.  

          The California Commission on Aging writes that by including 
            long-term care facilities in this law and making the 
            provisions permanent, this bill brings California into 
            conformity with federal law regarding public health 
            preparedness and response helping to ensure the safety of 
            vulnerable long-term care residents during times of public 
            health emergencies. 

           5)PREVIOUS LEGISLATION  .  

             a)   SB 1103 (Committee on Budget and Fiscal Review), Chapter 
               228, Statutes of 2004, contained statutory changes that 
               enabled the Department of Health Services (now DPH) to 
               allocate federal funds to local health jurisdictions, 
               clinics, hospitals, emergency medical systems, and poison 
               control centers in an expeditious manner and exempted these 
               expenditures from public contract code requirements.









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             b)   SB 406 (Ortiz), Chapter 393, Statutes of 2002, 
               established the procedures by which federal funding may be 
               allocated to, and expended by, local health jurisdictions 
               for the prevention of, and response to, bioterrorism 
               attacks and other public health emergencies, pursuant to 
               the federally approved collaborative state-local plan.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Association of Health Facilities
          California Commission on Aging
          Crestwood Behavioral Health

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    Tanya Robinson-Taylor / HEALTH / (916) 
          319-2097