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