BILL ANALYSIS                                                                                                                                                                                                    



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          Date of Hearing:   March 23, 2010

                            ASSEMBLY COMMITTEE ON HEALTH
                              William W. Monning, Chair
            ACR 74 (Portantino and Hill) - As Amended:  February 24, 2010
           
          SUBJECT  :  Umbilical cord blood banking.

           SUMMARY  :  States that the Legislature desires to find ways to  
          help California gain a viable public umbilical cord blood  
          banking system to ensure that all races and ethnicities have an  
          equal probability of finding a match when medically necessary.   
          Specifically,  this resolution  :  

          1)Makes a number of legislative findings and declarations  
            related to the public and private umbilical cord blood  
            collection industry as a treatment for blood cancers and other  
            diseases, the lack of public knowledge about the differences  
            of the public and private umbilical cord blood banking  
            systems, the lack of genetic diversity of public umbilical  
            cord blood inventories, the importance of using umbilical cord  
            blood that is not suitable for transplantation for research  
            institutions to explore the potential of umbilical cord blood  
            stem cells to treat medical conditions, and the importance of  
            building a viable public banking system.

          2)States the Legislature's desire to find ways to help  
            California gain a viable public umbilical cord blood banking  
            system to ensure that all races and ethnicities have an equal  
            probability of finding a match when medically necessary.

          3)States the Legislature's support for research being done with  
            collected units that are not suitable for transplantation.

           EXISTING FEDERAL LAW  :  
           
          1)Establishes a national umbilical cord blood network and  
            authorizes funding to collect and maintain human cord blood  
            stem cells for the treatment of patients and for research.

          2)Includes a process for maternal donors to be informed of all  
            medically appropriate options for cord blood banking and  
            includes additional directives for cord blood donation,  
            education, and advocacy.









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           EXISTING STATE LAW  :

          1)Requires the California Department of Public Health (DPH) to  
            establish, by January 1, 2010, and until January 1, 2015, the  
            Umbilical Cord Blood Collection Program (UCBCP) for the  
            purpose of collecting and storing umbilical cord blood and  
            increasing the amount of umbilical cord blood that is donated  
            in the state and added to the National Cord Blood Inventory  
            (NCBI).

          2)Authorizes the UCBCP, to the extent private or public funds  
            are identified and secured for these purposes, to contract  
            with blood banks that are licensed or accredited to provide  
            umbilical cord blood banking storage services, for the purpose  
            of collecting and storing 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 Blood Community Awareness Campaign to provide  
            awareness and information regarding umbilical cord blood  
            banking options using print media, radio, the Internet,  
            outdoor advertising and other media, to establish an Internet  
            Web site, and to undertake public education activities related  
            to umbilical cord blood donation to targeted populations, as  
            appropriate.

           FISCAL EFFECT  :   None

           COMMENTS  :   

           1)PURPOSE OF THIS RESOLUTION  .  According to the author, most  
            cord blood is collected for private usage and although this  
            service is a great benefit to individuals, it does not ensure  
            the general public has access to this potential treatment for  
            a variety of medical conditions.  The author believes that  
            this resolution will help increase awareness for the need to  
            create a public cord blood banking system that will bring the  
            benefits of this resource to a broad and more diverse group of  
            Californians.

           2)UMBILICAL CORD BLOOD .  According to information from the  
            National Marrow Donor Program (NMDP), cord blood, which is the  
            blood collected from the umbilical cord and placenta after a  








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            baby is born, is rich in blood-forming cells that can be used  
            in transplants for patients with leukemia, lymphoma, and many  
            other life-threatening diseases.  Cord blood is one of three  
            sources of cells used in transplants; the other two are bone  
            marrow and peripheral blood stem cells.  The NMDP estimates  
            that, on any given day, more than 6,000 patients around the  
            world are searching the NMDP's registry for a matching bone  
            marrow or cord blood donor.  Since cord blood is stored and  
            ready to use and it does not require a perfect donor match,  
            the NMDP states that 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% 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  
            remains high.

          In January 2007, the American Academy of Pediatrics (AAP) issued  
            an updated policy statement on 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 one in 1,000 to one 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 and usually still  
            alive and available as a donor so banked blood is not needed.   
            AAP states that storing a child's cord blood is only  
            worthwhile when there is a sibling with a disease that 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  
            encourages families to donate their newborn's cord blood to  
            public banks, if accessible in their area, for use by other  
            individuals in need.

           3)PUBLIC AND PRIVATE CORD BLOOD BANKS  .  Public and private banks  
            provide for the collection and storage of cord blood.  Public  
            banks promote related and unrelated donation, similar to the  








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            current collection of whole blood units in the U.S., for  
            transplantation or research purposes.  Private banks store  
            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 $125 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  
            using standards governing all aspects of operation, including  
            collection, processing, and transplantation.  According to  
            their respective Web sites, 25 facilities nationwide are  
            currently accredited by the AABB and eight currently have FACT  
            accreditation.

           4)CALIFORNIA BANKS  .  According to the NMDP, there are currently  
            two participating public banks in California, StemCyte  
            International Cord Blood 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 currently 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.

           5)NATIONAL CORD BLOOD INVENTORY  .  The 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 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 and the use of cord blood for human  
            transplantation and cellular therapies.  The NCBI works to  
            achieve these goals by providing funds to reimburse a network  
            of eight participating cord blood banks nationwide for the  
            collection and storage of qualified cord blood units.  HRSA  
            has requested nearly $12 million in funding for the NCBI in  
            2009 to add approximately 8,650 new units of cord blood, for a  
            total of approximately 37,280 units collected to date.








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           6)UCBCP  .  AB 34 (Portantino), Chapter 516, Statutes of 2007,  
            creates the UCBCP for the purpose of collecting and storing  
            umbilical cord blood.  The UCBCP is permitted to contract with  
            licensed and accredited blood banks to provide cord blood  
            storage services, to the extent that public or private funds  
            or grants are available and creates a special fund for  
            donations and grants.  According to DPH, it has not received  
            public or private funds or grants to establish the UCBCP and  
            has not received notice from the Department of Finance that  
            any funds were deposited into the UCBCP Fund.  However, DPH  
            did report receiving a one-year grant of $471,240 from HRSA in  
            September 2009 to collect, process, and store cord blood from  
            minority populations in order diversify the national inventory  
            of umbilical cord blood stem cell units that are available for  
            transplantation.  This appropriation is currently awaiting  
            authorization through the budget process.

           
          7)RELATED LEGISLATION  .  AB 52 (Portantino), introduced in 2009,  
            extends for one year the date which DPH is required to  
            establish the UBCBP from January 1, 2011, until January 1,  
            2020, for the purpose of collecting and storing umbilical cord  
            blood for public use.  Additionally the bill would require DPH  
            to establish the California Umbilical Cord Collection Board  
            that would administer the program, and would require the  
            collection of a $9 fee for certified copies of birth  
            certificates, $2 of the fee would be paid to the Umbilical  
            Cord Blood Collection Program Fund.  AB 52 is currently in  
            Senate Health Committee.

           8)PREVIOUS LEGISLATION  :

             a)   AB 34 (Portantino) directs DPH to establish the UCBCP by  
               January 1, 2010, until January 1, 2015, for the purpose of  
               collecting and storing umbilical cord blood, permits the  
               UCBCP, to the extent public or private funds or grants are  
               identified, to contract with blood banks that are licensed  
               and accredited to provide cord blood storage services, and  
               creates a special fund for donations and grants to UCBCP.

             b)   SB 962 (Migden), Chapter 517, Statutes of 2007, requires  
               DPH to provide umbilical cord blood samples to the Birth  
               Defect Monitoring Program, for storage and research, as  
               specified.








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             c)   SB 1555 (Speier), Chapter 484, Statutes of 2006,  
               requires blood banks, in order to provide umbilical cord  
               blood banking storage services, to be licensed and requires  
               DPH, contingent upon private funding, to conduct the  
               Umbilical Blood Community Awareness Campaign.  
          
           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          American Congress of Obstetricians & Gynecologists, District  
          IX/California (sponsor)
          Blood Centers of California
          California Catholic Conference
          University of California

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    Martin Radosevich / HEALTH / (916)  
          319-2097