BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2452
                                                                  Page  1

          Date of Hearing:   May 14, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                      AB 2452 (Pan) - As Amended:  May 6, 2014 

          Policy Committee:                              HealthVote:18-0

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

           SUMMARY  

          This bill requires, by January 1, 2016, the Secretary of State  
          to establish and maintain access to a secure internet portal  
          that collects advance health care directives (AHCDs) and related  
          documentation, and requires the SOS to establish related  
          processes that allow individuals and health care providers to  
          access the documents.  This bill also:

          1)Requires SOS to respond by the close of business on the next  
            business day to a request for information made pursuant to  
            existing law by the emergency department of a general acute  
            care hospital when the request is made by means other than  
            through the Secretary of State's Internet website.

          2)Requires, by January 1, 2016, SOS to consult with licensed  
            health care facilities to integrate a process for retrieving  
            documents and information stored in the AHCD Registry from a  
            statewide health information exchange system.

           FISCAL EFFECT 

          1)Estimated one-time costs of $2.5 million (GF/fee revenue) for  
            information technology (IT) planning and development,  
            regulations, and secure storage of records.  

          2)Unknown ongoing staff costs to SOS to maintain and operate the  
            system, likely under $1 million annually (GF/fee revenue).

          3)Current law allows the SOS to charge a fee to each registrant  
            in an amount such that, when all fees charged to registrants  
            are aggregated, the aggregated fees do not exceed the actual  
            cost of establishing and maintaining the registry.  The SOS  








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            currently charges a fee of $10 per registration.  Fee revenue  
            is currently minor, as there are only about 5,000 registrants  
            and only a few hundred new registrants annually.  To the  
            extent the new system was more efficient and effective, fee  
            revenue could increase. 

           COMMENTS  

           1)Purpose  .  According to the author, this bill is needed because  
            the current AHCD database is outdated and impractical for use  
            by doctors and other health care providers in a timely manner.  
             The current system relies on hardcopies and faxing to provide  
            requesting medical professionals with information.  Because  
            patients are often in critical condition or incapacitated when  
            these decisions must be made, doctors require immediate  
            notification about the AHDCs of their patients.  The author  
            argues modernizing the system to primarily operate as an  
            online portal where all AHDCs are available quickly will allow  
            doctors to know more about their patients in emergency  
            situations and better understand their patients' desires.

           2)Background  .  An AHDC is a set of written instructions that a  
            person gives that specifies what actions should be taken for  
            their health, if they are no longer able to make decisions  
            because of illness or incapacity.  The California Probate Code  
            defines AHDC as an individual health care instruction or a  
            power of attorney for health care.  Current law codifies a  
            statutory AHDC form that includes an explanation of each part,  
            an explanation of the duties of a designated agent, and  
            instructions for signing the form, including an explanation of  
            witnessing requirements or notarization requirements.  The use  
            of this form is optional, and does not preclude the use of  
            additional or different forms.
                
            3)California Health and Human Services Agency (CHHSA)  
            Initiative  . This bill appears to align with an initiative  
            being coordinated by the CHHSA, which has convened  
            stakeholders to make transformational improvements to the  
            health care system through California's State Innovation Model  
            (CalSIM) grant proposal to the federal government.  The CalSIM  
            effort has identified improving end-of-life care as one of  
            four initiatives for improving the health care system.    
            Specifically, the CalSIM plan notes that one key reason for  
            the misalignment of patient preferences with care received  
            toward the end of life is a lack of advanced care planning,  








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            including determining and documenting individual goals and  
            wishes for specific treatments based on medical conditions and  
            personal preferences.  The CalSIM end-of-life care initiative  
            is designed to encourage the use of palliative care when  
            patients prefer it to more intensive care options.
                
            4)Prior Legislation  . AB 2445 (Canciamilla), Chapter 882,  
            Statutes of 2004, authorized issuing an identification card  
            and allowed the SOS to charge a fee for the AHDC registry.

          AB 891 (Alquist), Chapter 658, Statutes of 1999, established the  
            Health Care Decisions Law, which also governs AHDCs, including  
            establishing the program at the SOS.

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