BILL ANALYSIS Ó HR 37 Page 1 Date of Hearing: August 29, 2012 ASSEMBLY COMMITTEE ON HEALTH Richard Pan, Chair HR 37 (Hill) - As Amended: August 24, 2012 AS PROPOSED TO BE AMENDED SUBJECT : Umbilical cord blood banking. SUMMARY : Makes various findings and declarations related to the uses and benefits of umbilical cord blood (UCB) as a treatment for blood cancers and other diseases and encourages hospitals to participate in free UCB and cord tissue collection programs. Specifically, this resolution : 1)Makes various findings and declarations related to the uses and benefits of umbilical cord blood (UCB) as a treatment for blood cancers, such as leukemia, myeloma, and lymphoma, and more than 80 inherited immunodeficiencies and other genetic and acquired blood diseases. 2)Expresses the intent of the Assembly to assist families who have newborns scoring three or less on the activity, pulse, grimace, appearance, and respiration (Apgar) scale by providing families access to the stem cells of the newborn and states that these children have a greater likelihood of developing neurological disabilities that may be helped by advancements in regenerative medicine. 3)States that there are seven low-Apgar UCB stem cell collection programs using regenerative medicine already in place in specified hospitals in California and these hospitals contract with an accredited umbilical cord blood bank that provides collection kits, processing, and training to ensure quality collection, sufficient collection volume, and sterility, as specified. 4)Encourages acute care hospitals to participate in free collection programs for UCB and cord tissue in general and in free collection programs that specifically provide parents of children born with low-Apgar scores the option of storing the child's UCB and cord tissue, at no cost to the parent, for therapeutic purposes as therapies become medically available. HR 37 Page 2 EXISTING FEDERAL LAW : 1)Establishes the National Cord Blood Inventory, administered by the federal Health Resources and Services Administration, to provide a national UCB 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. EXISTING STATE LAW : 1)Requests the University of California (UC) to establish and administer, until January 1, 2018, the Umbilical Cord Blood Collection Program (UCBCP) to increase the collection and availability of genetically diverse UCB for public use, including transplantation and adult stem cell research, and imposes a temporary $2 fee on specified birth certificates to fund the program. 2)Requires the Department of Public Health (DPH), contingent upon private funding, to conduct the Umbilical Blood Community Awareness Campaign to provide awareness and information regarding UCB banking options using print media, radio, the Internet, outdoor advertising and other media, to establish an Internet Web site, and to engage in public education activities related to UCB donation to targeted populations, as appropriate. FISCAL EFFECT : None COMMENTS : 1)PURPOSE OF THIS RESOLUTION . According to the author, cord blood is showing potential in research to treat conditions that have no cure today, such as brain injury, cerebral palsy, and hearing loss, through the process of regenerative medicine that enables scientists to evaluate the use of a child's own cord blood stem cells in experimental treatments. The author notes that current regenerative clinical trials and programs HR 37 Page 3 require a child's own cord blood stem cells as a condition of participation and this resolution is needed to raise awareness among hospitals of the pro bono collection and storage programs that are available to provide parents of at risk infants, such as those born with a low Apgar score, access to their child's own stem cells for use in these trials. 2)THE APGAR TEST . The National Institutes of Health (NIH) states that the Apgar scale is a quick test performed on a baby at one and five minutes after birth. The one-minute score determines how well the baby tolerated the birthing process and the five-minute score assesses how well the baby is doing outside the mother's womb. The Apgar test examines the baby's breathing effort, heart rate, muscle tone, reflex response to stimulation, and skin color. It is based on a total score of one to 10. The higher the score, the better the baby is doing after birth. Any score lower than seven is a sign that the baby needs medical attention. A low Apgar score is most often caused by a difficult birth, a Cesarean-section delivery, or fluid in the baby's airway. Generally, a low score at one minute is near-normal by five minutes. According to the NIH, the Apgar score is not designed to predict the future health of the child and a lower Apgar score is not an indication that a child will have serious or long-term health problems. 3)UCB . According to the National Marrow Donor Program (NMDP) cord blood is the blood collected from the umbilical cord and placenta after a baby is born. It contains blood-forming stem cells that can be used in transplants for patients who have leukemia, lymphoma, or certain blood, immune system, and metabolic disorders. It 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. 4)UCBCP . Pursuant to AB 52 (Portantino), Chapter 529, Statutes of 2010, the UCBCP is administered by the UC Davis Health HR 37 Page 4 System to serve Californians through collection of UCB units that are representative of the state's unique and genetically diverse population; storage of these UCB units in public cord blood banks that are licensed by the FDA and searchable and accessible to those in need of a transplant; and, distribution to qualified research laboratories of UCB units that are not suitable for transplant. The UCBCP reports that it has just completed the contracting process for partnering with existing FDA-licensed collection sites and cord blood banks. According to the UCBCP, priority contracts have also been negotiated with hospitals that have high birth rates, serve patients of under-represented ethnicities, and that are not currently performing cord blood collections. The UCBCP indicates that it expects to begin accepting collections by January 2013. The UCBCP is funded through a $2 fee on all birth certificates in California that will be used to support the costs associated with collections, such as administration, collection personnel, collection materials, and shipping of the UCB units. The fee is set to run through 2017 and will provide about $2 million dollars per year in funding, after which, the UCBCP will need to be self-supporting. 5)PUBLIC AND PRIVATE CORD BLOOD BANKS . According to the American College of Obstetricians and Gynecologists (ACOG) Committee on Obstetric Practice, cord blood is kept in public or private banks. Public banks operate like blood banks and collect cord blood for later use for anyone who needs it. The cord blood is tracked in a database so that a unit can be found quickly when needed. Public banks do not charge collection fees. Donors to public banks, including parents who donate their newborn's blood, are subject to a screening process that involves a detailed medical and lifestyle history of the baby's mother, father, and their families. Private banks store cord blood for directed donation, meaning the blood is held for use by the individual donor or their 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. Although ACOG takes no position for or against cord blood banking, it recommends that physicians disclose that there is no reliable estimate of a child's likelihood of actually using HR 37 Page 5 his or her own saved cord blood later. Some experts estimate this likelihood at 1 in 2,700, while others argue the rate is even lower. ACOG states that physicians should also disclose to their patients that it is unknown how long cord blood can successfully be stored. Cord blood banks are voluntarily accredited through the American Association of Blood Banks (AABB) and the Foundation for the Accreditation of Cellular Therapy (FACT) using standards governing all aspects of their operations, including collection, processing, and transplantation. According to their respective Web sites, 29 facilities nationwide are currently accredited by the AABB and nine currently have FACT accreditation. 6)CALIFORNIA BANKS . According to the NMDP, there are currently three participating public banks in California, StemCyte International Cord Blood Center in West Covina, which provides both public and private banking services, Children's Hospital of Orange County Cord Blood Bank, and the M.D. Anderson Cord Blood Bank in Palo Alto. According to the nonprofit Parent's Guide to Cord Blood Foundation, there are currently three private banks operating in the state: PacifiCord, based in Irvine; FamilyCord, based in Los Angeles; and, the largest, Cord Blood Registry (CBR), based in San Bruno, in the author's district. 7)PREVIOUS LEGISLATION . a) AB 52 requests the University of California to establish and administer the UCBCP for the purpose of collecting units of UCB for public use, for transplantation, and for providing nonclinical units for specified research. b) ACR 74 (Portantino), Chapter 116, Statutes of 2010, expresses the Legislature's desire to find ways to help California gain a viable public UCB banking system, to ensure that all races and ethnicities have an equal probability of finding a match when medically necessary. c) SB 962 (Migden), Chapter 517, Statutes of 2007, requires DPH to provide UCB samples to the Birth Defect Monitoring Program, for storage and research, as specified. d) SB 1555 (Speier), Chapter 484, Statutes of 2006, HR 37 Page 6 requires DPH to conduct the Umbilical Blood Community Awareness Campaign to, among other things, provide awareness, assistance, and information regarding umbilical cord blood banking options. Authorizes a primary prenatal care provider to provide pregnant women with information regarding options for UCB banking during the first prenatal visit. 8)SUPPORT . CBR writes in support that it offers the Newborn Possibilities Program, designed to ensure that a newborn's cord blood and cord tissue stem cells are processed and stored at no cost for up to five years in cases of identified medical need, as well as high-risk deliveries, to enhance treatment options and increase access to clinical trials for conditions where limited treatment options currently exist. CBR states that this resolution will help raise awareness within hospitals that newborns identified as being at-risk for developing neurological disability, based on a low Apgar score, may have their cord blood and cord tissue stored without cost and will allow hospitals, by collecting cord blood and tissue for at-risk newborns, to help give these children access, if needed, to their own stem cells for potential use in FDA-regulated clinical trials. REGISTERED SUPPORT / OPPOSITION : Support Cord Blood Registry Several individuals Opposition None on file. Analysis Prepared by : Cassie Royce / HEALTH / (916) 319-2097