BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 52
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 52 (Portantino)
          As Amended August 30, 2010
          2/3 vote.  Urgency
           
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          |ASSEMBLY:  |68-8 |(June 2, 2009)  |SENATE: |33-1 |(August 31,    |
          |           |     |                |        |     |2010)          |
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          Original Committee Reference:   HEALTH  

           SUMMARY  :  Requests the University of California (UC) to develop  
          a plan to establish and administer the Umbilical Cord Blood  
          Collection Program (UCBCP) on or before July 1, 2011, and  
          imposes a temporary $1 fee on specified birth certificates to  
          fund the program.

           The Senate amendments  :

          1)Shift administration of the UCBCP from the Department of  
            Public Health (DPH) to UC, if UC elects to administer the  
            program.

          2)Define public use of umbilical cord blood as blood units from  
            genetically diverse donors that will be owned by the UC. 

          3)Permit UC, for the purpose of implementing cord blood  
            collection goals of the program, to contract with one or more  
            entities that are in compliance with federal guidelines and  
            regulations.  

          4)Allow UC to use a competitive process to select entities to  
            administer the collection and research objectives of the  
            program, if the UC chooses not to undertake these activities  
            itself.

          5)Require entities selected pursuant to 4) above to receive,  
            process, and preserve, or bank cord blood units to have, at  
            minimum, an investigational new drug exemption or a biological  
            license from the Federal Drug Administration. 

          6)Express legislative intent that UC limit fees for access to  
            cord blood units to the reasonable and actual costs of  
            storage, handling, and providing units, as well as for related  








                                                                  AB 52
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            services, as specified.

          7)Express additional legislative intent that UC develop a  
            strategy to increase voluntary participation by hospitals in  
            the collection and storage of umbilical cord blood, as  
            specified; consider a medical contingency response program, as  
            specified; and explore the feasibility of operating the  
            program as a self-funding program.

          8)Permit UC to deny further access to any confidential  
            information maintained by UC to any person who violates its  
            policies to maintain confidentiality of information, and  
            subjects them to a civil penalty of up to $1,000. 

          9)Extend the sunset on the UCBCP from January 1, 2015, to  
            January 1, 2018.  



           EXISTING LAW  : 

          1)Requires DPH to establish the UCBCP by January 1, 2010, and  
            until January 1, 2015, for the purpose of increasing the  
            amount of umbilical cord blood that is donated in the state  
            and added to the NCBI.  

          2)Authorizes the UCBCP, to the extent private or public funds  
            are identified and secured for these purposes, to identify and  
            provide funds for grants or contracts with qualified blood  
            banks that are licensed and accredited to collect and store  
            umbilical cord blood for public transplantation services.   
            Permits DPH to implement any additional standards for blood  
            banks to collect and store umbilical cord blood through the  
            adoption of regulations. 

          3)Requires DPH, contingent upon private funding, to conduct the  
            Umbilical Cord Blood Community Awareness Campaign; establish  
            an Internet Web site with specified information; and,  
            undertake public education activities related to umbilical  
            cord blood donation to targeted populations, as appropriate.

           AS PASSED BY THE ASSEMBLY  , this bill extended for one year the  
          date by which DPH is required to establish UCBCP; and, required  
          DPH to contract with up to five licensed or accredited blood  
          banks to collect and store umbilical cord blood, as specified.








                                                                  AB 52
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           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee:
                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund  
          Operating funds          unknown, but cost pressure to fund  
          Special/*Federal
                                 more than $3,000 annually     
          Private/General
          $2 fee revenues          Approximately $3,000 annually,Special*
                                 commencing January 1, 2011
          Potential loss of a federal grant   $471          $0   $0Federal

          *Umbilical Cord Blood Collection Fund

           COMMENTS  :  The author states that the National Cord Blood  
          Inventory currently lacks ethnic and multiracial cord blood and  
          the UCBCP is intended to collect cord blood for public use and  
          increase the volume of cord blood that can be added to the  
          national inventory.  According to the author, DPH, with more  
          than 300 varied health programs, is facing major budget cuts and  
          significant reorganization and has not been willing to provide  
          support for the funding or administration strategy of the UCBCP.  
           The author argues that this bill shifts administration of the  
          program to UC, given that many relationships already exist  
          between the University and birthing hospitals throughout the  
          state, UC has cord blood experts within its system, and it  
          operated an umbilical cord blood bank at UCLA in the late 1990s.  
           The author states that this bill will ensure collections from  
          California's ethnically diverse communities will help to address  
          shortages in cord blood donations from minority groups and  
          increase the likelihood of transplant patients finding suitable  
          donor matches.


           Analysis Prepared by  :    Cassie Rafanan / HEALTH / (916)  
          319-2097
                                                               FN:  0006865