BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                    AB 52|
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                                 THIRD READING


          Bill No:  AB 52
          Author:   Portantino (D)
          Amended:  8/30/10 in Senate
          Vote:     27 - Urgency

           
           SENATE HEALTH COMMITTEE  :  5-3, 8/11/10
          AYES:  Alquist, Strickland, Leno, Negrete McLeod, Pavley
          NOES:  Aanestad, Cedillo, Romero
          NO VOTE RECORDED:  Vacancy

           ASSEMBLY FLOOR  :  68-8, 6/2/09 - See last page for vote


           SUBJECT  :    Umbilical Cord Blood Collection Program

           SOURCE  :     American College of Obstetricians and  
          Gynecologists, 
                      IX/CA


           DIGEST  :    This bill requests the University of California  
          (UC) to develop a plan to establish and administer the  
          Umbilical Cord Blood Collection Program (UCBCP) for the  
          purpose of collecting units of umbilical cord blood for  
          public use, as specified, increases the fee for birth  
          certificate copies by $2 to provide funds to implement the  
          UCBCP, and requires the UC to implement the plan,  
          contingent on an unspecified amount of funds being  
          available in the UCBCP Fund (Fund).

           ANALYSIS  :    Existing federal law establishes a national  
          umbilical cord blood network and authorizes funding to  
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          collect and maintain human cord blood stem cells for the  
          treatment of patients and for research and also includes  
          directives for umbilical cord blood donation, education and  
          advocacy. 

          Existing state law:

          1. Requires the Department of Public Health (DPH), until  
             January 1, 2015, to establish the UCBCP for the purpose  
             of increasing the amount of umbilical cord blood that is  
             donated in the state and added to the national umbilical  
             cord blood inventory.

          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 purposes.

          3. Permits DPH to implement any additional standards for  
             blood banks, to collect and store umbilical cord blood,  
             through the adoption of regulations. 

          4. Establishes the Umbilical Cord Blood Collection Program  
             Fund (Fund), consisting of federal, state, and private  
             funds made available for purposes of the program.

          5. Requires DPH, contingent upon private funding, to  
             conduct the Umbilical Cord Blood Community Awareness  
             Campaign to provide awareness, assistance, and  
             information regarding umbilical cord blood banking  
             options using brochures, television, print media, radio,  
             the Internet, outdoor advertising, and other media;  
             establish an Internet Web site with specified  
             information; and, undertake public education activities  
             related to umbilical cord blood donation to targeted  
             populations, as appropriate.

          6. Requires DPH to provide umbilical cord blood samples to  
             the Birth Defect Monitoring Program, for storage and  
             research, as specified.

          This bill:

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          1. Requests UC, by July 1, 2011, to develop a plan to  
             establish and administer the UCBCP for the purpose of  
             collecting units of umbilical cord blood for public use  
             as specified, and deletes DPH's responsibility for  
             administering the program.

          2. Expresses intent that UC submit the plan to the health  
             and fiscal committees of the Legislature.

          3. Adds $2 to the current fee for certified copies of birth  
             certificates and requires the additional $2 to be paid  
             into the Fund for support of the UCBCP. 

          4. Provides that funds shall be appropriated for the UCBCP  
             to the extent the plan and implementation of the program  
             are consistent with the goals and intent of the bill.

          5. Provides that moneys appropriated for the UCBCP shall be  
             available for encumbrance or expenditure for three  
             fiscal years following the appropriation of the funds.

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

          7. Requires the inventory to be accessible by the National  
             Registry and other qualified registries and transplant  
             centers, as specified, for transplantation and research  
             uses.

          8. Permits 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. 

          9. Permits 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.

          10.Requires entities selected to bank, bank cord blood  
             units to have, at minimum, an investigational new drug  
             exemption or a biological license from the Federal Drug  

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             Administration. 

          11.Establishes qualifications for an entity to receive  
             umbilical cord blood units for research, and requires a  
             medical provider or research facility to comply with all  
             applicable state and federal laws with respect to  
             personally identifiable information contained in the  
             inventory.

          12.Subjects these entities to existing penalties for  
             violations.

          13.Expresses the intent of the Legislature 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 services, as specified.

          14.Expresses the intent of the Legislature that UC:

             A.    Develop a strategy to increase voluntary  
                participation by hospitals in the collection and  
                storage of umbilical cord blood and identify  
                funding sources to offset the financial impact on  
                hospitals.

             B.    Consider a medical contingency response program  
                to prepare for and respond effectively to  
                biological, chemical, or radiological attacks,  
                accidents, and other public health emergencies  
                where victims potentially benefit from treatment.

             C.    Explore the feasibility of operating the program  
                as a self-funding program, including the potential  
                of charging users a reimbursement fee.

          15.Permits UC to deny further access to any confidential  
             information maintained by the UC to any person who  
             violates its policies to maintain confidentiality of  
             information, and subject them to a civil penalty of up  
             to $1,000. 

          16.Sunsets the UCBCP and the $2 additional birth  
             certificate fee on January 1, 2018.


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           Background
           
           Umbilical cord blood  .  Umbilical cord blood refers to the  
          blood that remains in the umbilical cord and placenta  
          following birth.  It is one of three sources of cells used  
          in transplants, along with bone marrow and peripheral blood  
          stem cells.  According to a July 2002 fact sheet by the  
          March of Dimes, blood retrieved from the umbilical cord is  
          a rich source of stem cells that can be used to treat  
          various genetic disorders that affect the blood and immune  
          system, leukemia and certain cancers, some inherited  
          disorders of body chemistry, and other life-threatening  
          diseases.  Stem cells from umbilical cord blood offer some  
          advantages over those retrieved from bone marrow.   
          Umbilical cord blood stem cells are much easier to obtain;  
          a broader range of recipients may benefit from them; and, a  
          potentially fatal complication called graft versus host  
          disease, in which donor cells can attack the recipient's  
          tissues, appears to occur less frequently with umbilical  
          cord blood than with bone marrow.  Stem cells from  
          umbilical cord blood have proven in many instances to be  
          superior to traditional bone marrow transplants because  
          they require a less perfect match than bone marrow  
          transplants, thus making it more likely to find a suitable  
          donor, especially among minority populations. 

          The National Marrow Donor Program (NMDP) estimates that on  
          any given day, more than 6,000 patients around the world  
          are searching the NMDPs registry for a matching bone marrow  
          or umbilical cord blood donor.  The NMDP states that since  
          umbilical cord blood is stored, ready to use and does not  
          require a perfect donor match, it is especially useful for  
          patients who need a transplant quickly, patients who have  
          difficulty finding a matched bone marrow donor, and  
          patients from racially diverse communities who often have  
          uncommon tissue types.  Patients are more likely to match  
          someone who shares their racial and ethnic heritage.  The  
          NMDP reports that, in 2008, 36 percent of the 90,000 cord  
          blood units in its registry went to patients from racially  
          or ethnically diverse communities and the need for cord  
          blood donations from these populations remain high.

           Umbilical cord blood banking for personal use  .  In January  
          2007, the American Academy of Pediatrics (AAP) issued an  

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          updated policy statement on umbilical cord blood banking  
          for potential future transplantation.  The AAP estimates  
          that the chances of a child needing his or her own cord  
          blood stem cells in the future range from 1 in 1,000 to 1  
          in 200,000.  In the event that a child requires a stem cell  
          transplant, the AAP indicates that it is unlikely that the  
          child's own cord blood would be the desired source of stem  
          cells, because the cells would reintroduce the disease into  
          the child's body.  In these cases, a sibling donor is ideal  
          as a donor.  AAP states that storing a child's cord blood  
          is only worthwhile when there is a sibling with a disease  
          who can be treated by a transplant.  Under these  
          circumstances, there is a one-in-four chance that the new  
          baby will be a match for his or her sibling.  Given that  
          the probability of using one's own cord blood in the first  
          20 years of life is very small, the AAP does not favor  
          storage of cord blood for personal use and instead  
          encourages families to donate their newborn's cord blood to  
          public banks, if accessible in their area, for use by other  
          individuals in need.

           Umbilical cord blood banks (Banks)  .  Public and private  
          Banks provide for the collection and storage of cord blood.  
           Public banks promote both related and unrelated donation,  
          similar to the current collection of whole blood units in  
          the U.S., for transplantation or research purposes.   
          Private Banks store umbilical cord blood from an individual  
          for subsequent use by the same individual or his or her  
          family members, should the need arise.  Private Banks  
          typically charge between $1,000 and $2,000 in collection  
          fees and between $50 and $150 annually for storage.  Public  
          Banks do not charge for cord blood that is donated for  
          public use.  The American Association of Blood Banks (AABB)  
          and the Foundation for the Accreditation of Cellular  
          Therapy (FACT) provide voluntary accreditation of cord  
          blood banks and establish standards governing all aspects  
          of operation, including collection, processing, and  
          transplantation.  According to their respective Web sites,  
          27 facilities nationwide are currently accredited by the  
          AABB and 17 currently have FACT accreditation.

           California banks and collection facilities  .  According to  
          the NMDP, there are currently two participating public  
          banks in California, StemCyte International Cord Blood  

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          Center in West Covina, which provides both public and  
          private banking services, and Children's Hospital of Orange  
          County Cord Blood Bank.  Another public bank in San Diego,  
          the Ashley Ross Cord Blood Program, participates in the  
          NMDP, but it is not actively collecting cord blood at this  
          time due to funding shortages.  According to the nonprofit  
          Parent's Guide to Cord Blood Foundation, there are  
          additionally four private banks operating in the state:  
          CordBancUSA in Monterey, Cord Blood America and FamilyCord,  
          both based in Los Angeles, and Cord Blood Registry in San  
          Bruno.

          The Laboratory Field Services Branch of DPH regulates  
          umbilical cord blood banks in California.  An umbilical  
          cord blood bank that operates within California, accepts  
          collections from California, or releases cord blood units  
          to California, is required to obtain a biologics license  
          from DPH, which must be renewed annually.  DPH requires  
          applicants to comply with specific requirements relating to  
          personnel, relevant business permits, standard operating  
          procedures, informed consent, laboratory testing,  
          equipment, safety manuals and emergency plans, supplier and  
          vendor information, quality control, and records.   
          Generally, DPH requires facilities to be inspected prior to  
          approving a license but will accept accreditation by AABB  
          in lieu of an inspection in limited cases. 
            
          According to the NMDP, because cord blood donation is only  
          beginning to grow in prevalence, not all hospitals  
          currently collect cord blood donations.  The NMDP's  
          registry is the largest listing of cord blood in the world  
          (over 190,000 units), and includes banks outside of the  
          U.S.  In the U.S., NMDP has 14 cord blood banks with more  
          than 46,000 cord blood units.  In 2005, more than 250 cord  
          blood units were provided for transplant, 29 percent of  
          which went to racial and ethnic minorities.  Forty percent  
          of the cord blood units listed by NMDP are from minority  
          racial and ethnic donors. 

          Children's Hospital Oakland Research Institute operates a  
          Sibling Donor Cord Blood Program for families who have a  
          child with a transplant-treatable condition, and who are  
          expecting a baby who is a full sibling of the affected  
          child.  UCLA operated a cord blood bank which originated  

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          with National Institutes of Health grants, but could not  
          continue due to a lack of funding.  The Ashley Ross Cord  
          Blood Bank in San Diego has collected 2,300 cord blood  
          units but is now releasing only one unit per month and is  
          not accepting new donors as a result of lack of funding.    
          One public and private bank in Florida, Cryobanks  
          International, will accept and process donated cord blood  
          units from anywhere in the United States. 
           
           Marrow and umbilical cord blood matching  .  According to  
          NMDP, marrow and cord blood transplants require matching  
          certain tissue traits of the donor and patient.  Because  
          these traits are inherited, a patient's most likely match  
          is someone of the same heritage.  American Indian, Alaska  
          Native, Asian,  African-American, Latino, Native Hawaiian  
          and other Pacific Islander, and multiple-race patients face  
          a greater challenge in finding matched donors or cord blood  
          than white patients.  NMDP and other organizations, such as  
          the National Cord Blood Program, are working to raise  
          awareness and recruit more cord blood donors in  
          underrepresented communities.  In 2006, 26 percent of all  
          recipients from minority racial and ethnic groups received  
          cord blood transplants.  Even with more than 50,000 cord  
          blood units listed under NMDP, some patients were unable to  
          find a match because of the rarity of their tissue traits. 

           National Cord Blood Inventory  .  The National Cord Blood  
          Inventory (NCBI), administered by the federal Health  
          Resources and Services Administration (HRSA), was formed in  
          2006 to build a genetically and ethnically diverse  
          inventory of 150,000 new units of high-quality umbilical  
          cord blood for transplantation and to make these cord blood  
          units available to physicians and patients for blood stem  
          cell transplants, and for research focusing on cord blood  
          stem cell biology.  The NCBI works to achieve these goals  
          by providing funds to eight participating cord blood banks  
          nationwide.  HRSA requested nearly $12 million in funding  
          for the NCBI in 2009 to add approximately 8,650 new units  
          of cord blood, and has collected a total of approximately  
          37,280 units collected to date. 
           
          In November 2006, HRSA awarded $12 million to six  
          institutions in California, Colorado, New York, North  
          Carolina, Texas, and Washington to begin collections for  

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          the NCBI.  According to HRSA, NCBI will collect and  
          maintain high-quality cord blood units and make them  
          available for transplantation through the newly created  
          C.W. Bill Young Cell Transplantation Program.  The NCBI  
          target is 150,000 new units of high-quality cord blood  
          collected from diverse populations, including those that  
          have historically been the least able to find a suitable  
          adult bone marrow donor match.  The targeted demographics  
          for the initial cord blood collections are:  19 percent  
          African-American; 26 percent Latino; 6.5 percent Asian;  
          37.5 percent Caucasian; 10 percent multi-race; and, one  
          percent other underrepresented populations.  HRSA undertook  
          a second cycle of competitive contracts to increase the  
          NCBI early in federal fiscal year 2007.

            FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  9/14/10)

          American College of Obstetricians and Gynecologists, IX/CA  
          (source)
          African American Blood Drive and Bone Marrow Registry for  
          Sickle Cell Disease Awareness 
          American Federation of State, County, and Municipal  
          Employees 
          Association of Northern California Oncologists 
          Blood Centers of California 
          California Catholic Conference 
          California Communities United Institute 
          California Hospital Association 
          California Medical Association 
          California Nurses Association 
          California Nurse-Midwives Association 
          California State University, Long Beach, Nursing Students 
          City of Hope 
          City of Los Angeles 
          Commission on the Status of Women 
          Joanne Pang Foundation 
          Kaiser Permanente Medical Care Program 
          March of Dimes 
          Medical Oncology Association of Southern California
          Planned Parenthood Affiliates of California, Inc.
          Project RACE 

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          University of California

           OPPOSITION :    (Verified  9/14/10)

          Child Abuse Prevention Center

          ARGUMENTS IN SUPPORT  :    UC states that by promoting public  
          cord blood collection in one of the most ethnically diverse  
          states in the nation, this bill expands the number of  
          specific ethnic and multicultural cord blood units in the  
          national inventory and increase the chance of a suitable  
          match for Californians in need of a transplant.

          Writing on a previous version of the bill, the American  
          College of Obstetricians and Gynecologists states that due  
          to the high cost of testing and storing umbilical cord  
          blood, it is reasonable to fund cord blood banking efforts  
          with public dollars in order to increase the inventory of  
          usable cord blood units.

           ARGUMENTS IN OPPOSITION  :    The Child Abuse Prevention  
          Center (CAP Center) states that it opposes this bill unless  
          amended to remove the increase in birth certificate fees as  
          a funding source for the UCBCP.  CAP Center states that  
          birth certificate fees have long been a source of funding  
          for child abuse prevention and intervention programs, and  
          that adding to the fees for other purposes may make it less  
          feasible to further raise them in the future for child  
          abuse prevention.  CAP argues that, given that fees for  
          death certificates are lower than those for birth  
          certificates, an increase in death certificate fees would  
          be a more appropriate funding source for the bill.  
           
           ASSEMBLY FLOOR  : 
          AYES: Adams, Ammiano, Anderson, Arambula, Beall, Tom  
            Berryhill, Blakeslee, Blumenfield, Brownley, Buchanan,  
            Caballero, Charles Calderon, Carter, Chesbro, Cook, Coto,  
            Davis, De La Torre, De Leon, DeVore, Emmerson, Eng,  
            Evans, Feuer, Fletcher, Fong, Fuentes, Furutani,  
            Galgiani, Garrick, Gilmore, Hall, Harkey, Hayashi,  
            Hernandez, Hill, Huber, Huffman, Jeffries, Jones,  
            Krekorian, Lieu, Bonnie Lowenthal, Ma, Mendoza, Miller,  
            Monning, Nava, Nestande, Nielsen, John A. Perez, V.  
            Manuel Perez, Portantino, Price, Ruskin, Salas, Saldana,  

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            Skinner, Smyth, Solorio, Swanson, Torlakson, Torres,  
            Torrico, Tran, Villines, Yamada, Bass
          NOES: Fuller, Gaines, Hagman, Knight, Logue, Niello, Silva,  
            Audra Strickland
          NO VOTE RECORDED: Bill Berryhill, Block, Conway, Duvall


          CTW:do  9/14/10   Senate Floor Analyses 
                                                                     
                         SUPPORT/OPPOSITION:  SEE ABOVE

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