BILL ANALYSIS                                                                                                                                                                                                    �



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          Date of Hearing:   August 8, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                   SB 694 (Padilla) - As Amended:  August 6, 2012 

          Policy Committee:                             HealthVote:19-0
                       Business and Professions         Vote: 8-0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              No

           SUMMARY  

          This bill, contingent on a declaration by the Department of 
          Finance that sufficient funds are available, creates a Statewide 
          Office of Oral Health (Office) within the Department of Public 
          Health (DPH), defines the Office's duties, and authorizes the 
          Office to oversee a large study assessing the ability of 
          midlevel dental practitioners to perform specified additional 
          procedures.  Specifically, this bill:

          1)Establishes the Office contingent on the receipt of adequate 
            funding. 

          2)Establishes a dental director to oversee the office, and 
            describes the director's qualifications.

          3)Establishes duties for the Office, including but not limited 
            to: 

               a)     Advancing and protecting the oral health of all 
                 Californians.
               b)     Developing a comprehensive and sustainable state 
                 oral health action plan to address the state's unmet oral 
                 health needs.
               c)     Encouraging private and public collaboration to meet 
                 the oral health needs of Californians.
               d)     Securing funds to support infrastructure and 
                 statewide and local programs.
               e)     Promoting evidence-based approaches to increase oral 
                 health literacy.
               f)     Establishing a system for surveillance and oral 
                 health reporting.








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               g)     Duties assigned to DPH under current law, including 
                 supporting and augmenting the efforts of city and county 
                 health departments in the implementation of a dental 
                 health component in their program plans.
               h)     Identifying and securing funding sources in order to 
                 maintain the office.
               i)     Overseeing the design and implementation of a 
                 workforce study to assess the ability of trained 
                 mid-level dental practitioners to perform a list of seven 
                 procedures, including convening an advisory group and 
                 reporting on findings to the Legislature.  

          4)Specifies Office duties shall be prioritized contingent on 
            available funds.

          5)Allows DPH to receive financial aid from any source to carry 
            out the bill's provisions.

          6)Prohibits GF moneys from being used for this bill's purposes.

          7)Requires the Department of Finance (DOF) to make a 
            determination within 90 days of receiving funds, and annually 
            thereafter, regarding the funding status of the office.  

          8)Makes the establishment of a dental director contingent on a 
            determination by DOF that sufficient funds are available. 

          9)Describes in detail a workforce study the Office is authorized 
            to oversee, and requires a California university dental school 
            to design and implement the study. 

          10)Requires all funding for the workforce study and evaluation 
            to be secured from non-GF public or private sources. Prohibits 
            any one interest group from providing more than half the 
            private funding for the study.  

          11)Makes provisions describing the study inoperative on January 
            1, 2014 if the study has not commenced by that date.

          12)Repeals the bill's provisions on January 1, 2017.

           FISCAL EFFECT  

          1)Annual costs of up to $750,000 (donations/GF cost pressure) 
            through 2016 to establish and staff the Office, including a 








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            dental director, research scientist, and other program and 
            support staff.  

          2)One-time costs to develop a surveillance system would be at 
            least $2 million (donations/GF cost pressure) based on 
            development costs of similar systems.  Ongoing costs to 
            maintain the system would likely be in the hundreds of 
            thousands of dollars. 

          3)The bill envisions study costs in the range of several million 
            dollars to $10 million would be funded by non-state dollars, 
            such as federal and foundation money.  The Office would absorb 
            the cost of overseeing the design and implementation of the 
            study within the staff budget listed in (1).

          4)Although the bill includes a prohibition on GF funding, it 
            creates significant and ongoing state cost pressure (further 
            discussed below).

          5)Minor costs to the DOF to monitor and issue determinations 
            regarding the funding status of the Office.
           
           COMMENTS  

           1)Rationale  . The author indicates this bill is intended to 
            address the dental health access dilemma in California.  He 
            cites high rates of tooth decay among children, as well as 
            shortages of pediatric dental providers that are expected to 
            worsen as additional children gain dental coverage in 2014 
            under federal law.  He indicates a need to study innovative 
            policies to determine the best way to bring basic oral health 
            care to underserved children in the state.  In addition, he 
            believes state oral health leadership is crucial to draw down 
            federal dollars and coordinate essential dental public health 
            functions, including assessing need and capacity to address 
            that need. This bill is sponsored by The Children's 
            Partnership, a national nonprofit child advocacy organization.

           2)Fiscal Comments  .  This bill creates significant ongoing fiscal 
            pressure on the state regardless of its prohibition on GF 
            funding, as it intends to create ongoing state leadership in 
            oral health, as well as an ongoing surveillance 
            infrastructure.  The bill requires DOF to make a determination 
            regarding whether funding is sufficient to establish the 
            Office, but the bill lacks clarity as to how much funding is 








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            sufficient (for example, it is common for federal grants for 
            infrastructure projects similar to that envisioned by this 
            bill to provide ongoing funding for three to five years).  

            The bill also creates state fiscal risk because it lacks a 
            strong mechanism for abolishing the Office and surveillance 
            functions if non-GF funding is inadequate.  The bill does 
            indicate that duties can be prioritized based on available 
            funding, but the dental director position and support at a 
            minimum would cost the state $300,000 annually.  If a 
            surveillance system were established, there would be strong 
            fiscal pressure to maintain the system.  

            In addition, it is unclear which state entity has initial 
            responsibility to solicit funds in order to establish the 
            Office.  Finally, the bill does not create a special fund or 
            account to receive donations and fund the Office.  Presumably, 
            donations would be made to the GF in absence of a special fund 
            or account to receive donations for this purpose.   

           3)Support  . Children's health advocacy groups support this bill 
            as a way to increase access to children's dental care. The 
            California Dental Association states they support establishing 
            the Office as long as sufficient federal and private funds are 
            secured, and points out that a study as specified in the bill 
            is the appropriate next step in building the necessary 
            evidence base prior to any consideration of expanded or 
            increased scope of practice.     

           4)Opposition  .  The Hispanic Dental Association, California 
            Academy of General Dentists, and individual dentists oppose 
            the provision in this bill relating to the workforce study 
            because the study would include non-dentists doing surgical or 
            irreversible procedures.  

            The California Nurses Association states this bill allows 
            non-dentist providers to provide care outside of their scope 
            of licensure, contending this is a dangerous precedent for our 
            health care delivery system and for our educational system 
            which is set up to train appropriately licensed practitioners. 
             

           Analysis Prepared by  :    Lisa Murawski / APPR. / (916) 319-2081 










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