BILL ANALYSIS AB 52 Page 1 Date of Hearing: April 22, 2009 ASSEMBLY COMMITTEE ON APPROPRIATIONS Kevin De Leon, Chair AB 52 (Portantino) - As Amended: April 1, 2009 Policy Committee: HealthVote:14-2 Urgency: Yes State Mandated Local Program: No Reimbursable: SUMMARY This bill extends and significantly expands the Umbilical Cord Blood Collection Program (UCBCP) established by AB 34 (Portantino), Chapter 516, Statutes of 2007. Specifically, this bill: 1)Extends the implementation date of UCBCP from January 1, 2010 to January 1, 2011. 2)Increases the fee charged for a certified copy of a birth certificate from $7 to $9 until 2020. Requires the additional fee revenue to be deposited in a special fund established by AB 34. 3)Requires the Department of Public Health (DPH) to contract with up to five licensed or accredited blood banks to build a diverse inventory of cord blood, store the cord blood, and make it available for medical transplantation or medical research. 4)Requires the UCBCP to meet numerous objectives, including the establishment of a public awareness campaign, a public health emergency program, collection targets for specified ethnic groups, and an increase in hospital participation. 5)Establishes a 15-member Committee to implement new UCBCP activities established in this bill. Requires the Committee to make recommendations by January 1, 2012 to the governor and Legislature. Requires DPH and the Committee to submit reports on the Program's effectiveness to the Assembly and Senate Health and Judiciary Committees and the governor by January 1, 2013 and January 1, 2018. AB 52 Page 2 6)Requires participating blood banks to comply with federal requirements associated with the National Cord Blood Inventory. FISCAL EFFECT 1)Increased annual special fund revenues of $3 million as a result of a $2 increased fee on 1.5 million certified birth certificates until 2020. Revenues will change with changes in California's birth rate or demand for the vital records documents. Fee revenues will support the activities of contracted blood banks. Private blood banks currently charge $1,000 to $2,000 in one-time collection fees and $50 to $150 in annual storage fees. Public blood banks do not charge collection and storage fees on cord blood available for public use. 2)Certified birth certificates are required for acquisition of personal documents such as a Social Security cards for newborns and for other personal documents for adults, such as passports. There are 550,000 births in California annually. The other million certified birth certificates subject to the fee increase established in this bill are for children and adults requiring additional vital records documentation. 3)Annual DPH fee-supported special fund staffing costs of $550,000 to $650,000 for contract management, research and policy collaboration, and technical assistance. COMMENTS 1)Rationale . This bill is sponsored by the American College of Obstetricians and Gynecologists (ACOG). As a continued effort by the author and ACOG, this bill increases the availability of cord blood and the ethnic diversity of the supply of cord blood to better reflect the diverse genetic needs of California families. Umbilical cord blood collection is a relatively recent phenomenon and the cord blood available publicly does not reflect the racial diversity of California. Thousands of patients with blood diseases such as leukemia, myeloma, lymphoma, and sickle cell anemia die each year after failing to find matching stem cells that are found in very high concentrations in cord blood. By increasing the likelihood and frequency of cord blood matches, this bill will AB 52 Page 3 eventually reduce illness and death associated with these kinds of diseases. 2)Background . Stem cells provide a mechanism by which organisms, including humans, are able to renew themselves through cell regeneration and differentiation. The three categories of mammalian stem cells are: embryonic stem cells, adult stem cells, and cord blood stem cells. Stem cells can be easily grown and transformed into specialized cells such as muscles or nerves. Umbilical cord blood is of particular interest due to the ease of collection and the low risk of collection and treatment. Compared to bone marrow collection, cord blood collection is non-invasive, painless, inexpensive, and relatively simple. In addition, cord blood matching requires a less close match than is required with adult stem cells. 3)The National Cord Blood Inventory (NCBI) was established pursuant to the Stem Cell Therapeutic and Research Act of 2005, Public Law 109-129. As a part of the Act, the NCBI has a goal of collection of 150,000 units of cord blood. One California blood bank is a part of NCBI collection efforts. In addition to federal efforts started by the prior administration with regard to cord blood, the President recently overturned a policy signed by President Bush in 2001 that prohibited the National Institutes of Health from supporting research on embryonic stem cells beyond the 60 cell lines that existed at that time. Analysis Prepared by : Mary Ader / APPR. / (916) 319-2081