BILL ANALYSIS                                                                                                                                                                                                    �



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          ASSEMBLY THIRD READING
          AB 2452 (Pan)
          As Amended May 23, 2014
          Majority vote 

           HEALTH              18-0        APPROPRIATIONS      16-0        
           
           ----------------------------------------------------------------- 
          |Ayes:|Pan, Maienschein,         |Ayes:|Gatto, Bigelow,           |
          |     |Ammiano, Chau, Bonta,     |     |Bocanegra, Bradford, Ian  |
          |     |Ch�vez, Chesbro, Gomez,   |     |Calderon, Campos, Eggman, |
          |     |Gonzalez, Roger           |     |Gomez, Holden, Jones,     |
          |     |Hern�ndez, Lowenthal,     |     |Linder, Pan, Quirk,       |
          |     |Waldron, Nazarian,        |     |Ridley-Thomas, Wagner,    |
          |     |Nestande, Patterson,      |     |Weber                     |
          |     |Ridley-Thomas, Wagner,    |     |                          |
          |     |Wieckowski                |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Requires the Secretary of State (SOS) to establish an  
          electronic process for submittal and retrieval of advance health  
          care directives (AHCDs).  Specifically,  this bill  :  

       1)Requires the SOS to establish an electronic process for the  
            registry of AHCDs to allow downloading of electronic  
            reproductions of AHCDs and requires the SOS to post this  
            information on a secure portion of the office's Web site and  
            to allow downloading and retrieving a copy of the electronic  
            reproduction.  Requires the new electronic registry to merge  
            with the existing (paper based) registry.

       2)Requires a person to submit specified information to the SOS to  
            have the AHCD registered and lists acceptable documents that  
            can be submitted for registration, including, a values  
            statement or other document that supplements the AHCD, a power  
            of attorney form, and a physician orders for life-sustaining  
            treatment form, among others.

       3)Provides the steps the SOS must take to register an AHCD or other  
            acceptable document, including assigning a registration number  
            and password and issuing a registration card with pertinent  
            information for accessing the electronic retrieval system. 

       4)Directs the SOS to limit access to the registry except when the  
            password and registration are supplied, a court orders access  







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            or when the SOS determines that providing access is in the  
            best interest of the registrant.

       5)Requires the SOS to establish procedures for administering the  
            registry, including how to register replacement AHCDs and  
            other documents, as well as removal of AHCDs that have been  
            revised or revoked, and requires the SOS, to the extent  
            practical, to work with any entity licensed as a health care  
            facility to develop a process for retrieving documents and  
            information related to AHCDs from a statewide health  
            information exchange system.

       6)Mandates the SOS make the electronic registry and system  
            available January 1, 2016, and requires the registry to be  
            fully supported by fees by January 1, 2020.

       7)Requires the SOS to develop and submit a financial sustainability  
            plan to the Legislature by January 1, 2018 which details the  
            amount of revenue generated by the fees charged, the estimated  
            costs of maintaining the registry, the number of participants  
            in the registry and projected future participation, and, a  
            plan for ensuring that the fee revenue will support the  
            ongoing costs of maintaining the registry.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee estimated one-time costs of $2.5 million General Fund  
          (GF/fee revenue, for information technology planning and  
          development, regulations, and secure storage of records and  
          unknown ongoing staff costs to SOS to maintain and operate the  
          system, likely under $1 million annually (GF/fee revenue).   
          After 2020, the program must be fully supported by fee revenue.   
          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 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 would likely  
          increase.

           COMMENTS  :  According to the author, this bill is needed because  
          the current Advanced Healthcare Directive database is outdated  
          and impractical for use by doctors and other health care  
          providers.  The current system relies on hardcopies and faxing  







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          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 AHCDs of their patients.  The  
          author argues modernizing the system to primarily operate as an  
          online portal where all AHCDs are available quickly will allow  
          doctors to know more about their patients in emergency  
          situations and better understand their patients' desires.

          An AHCD 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 document can take many forms, including a  
          living will, personal directive, advance directive, or advance  
          decision. California does not provide for a living will in law,  
          only an AHCD.  The California Probate Code Section 4605 defines  
          AHCD as an individual health care instruction or a power of  
          attorney for health care.  Current law codifies a statutory AHCD  
          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.

          The demand and need for AHCDs is partly in response to the  
          increasing sophistication and prevalence of medical technology.   
          Improvements in health care have led to significant changes in  
          the death experience of many Americans.  Of United States  
          deaths, 50% to 75% occur in health care facilities.  People are  
          more likely to die of a chronic condition with their  
          deterioration and eventual death occurring after a prolonged  
          period rather than the result of a sudden incident, such as a  
          fatal heart attack or accident.  Researchers have documented  
          that medical care for the dying can be unnecessarily prolonged,  
          painful, expensive, and emotionally burdensome to both patients  
          and their families.
           

          Analysis Prepared by  :    Lara Flynn / HEALTH / (916) 319-2097 


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