BILL ANALYSIS                                                                                                                                                                                                    Ó



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          CONCURRENCE IN SENATE AMENDMENTS
          AB 1559 (Pan)
          As Amended August 21, 2014
          Majority vote
           
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          |ASSEMBLY:  |79-0 |(May 28, 2014)  |SENATE: |34-0 |(August 25,    |
          |           |     |                |        |     |2014)          |
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           Original Committee Reference:   HEALTH  

           SUMMARY  :  Requires the Department of Public Health (DPH) to  
          expand statewide screening of newborns to include screening for  
          adrenoleukodystrophy (ALD) as soon as the addition is approved  
          by the federal Recommended Uniform Screening Panel.  

           The Senate amendments  specify that DPH will begin testing for  
          ALD upon federal approval.

           EXISTING LAW  :  Requires DPH to establish a genetic disease unit  
          to coordinate all DPH programs in the area of genetic disease  
          that will promote a statewide program of information, testing,  
          and counseling services and to have the responsibility of  
          designating tests and regulations to be used in executing this  
          program and to have the responsibility of designating tests and  
          regulations to be used in executing the California Newborn  
          Screening Program (CNSP). 

           AS PASSED BY THE ASSEMBLY  , this bill required DPH to expand  
          statewide screening of newborns to include screening for ALD as  
          soon as possible.

           FISCAL EFFECT (as approved on August 14, 2014)  : 

          1)One-time costs of about $2 million for technical and  
            administrative activities to add ALD to the newborn screening  
            program (Genetic Disease Testing Fund).

          2)Annual screening costs of $4.7 million per year, covered by  
            fees (Genetic Disease Testing Fund).  Adding ALD to the  
            newborn screening program would require DPH to raise the fee  
            charged for screening by $11 per birth.

          3)Increased costs or about $2.6 million per year to the Medi-Cal  








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            program to pay the fees charged to support the newborn  
            screening program for births paid for by Medi-Cal (General  
            Fund and federal funds).

          4)Increased costs of about $50,000 per year to California Public  
            Employees' Retirement System (CalPERS) to pay the fees charged  
            to support the newborn screening program for births paid for  
            by CalPERS (various funds).

          5)Likely long-term savings due to improved clinical outcomes  
            from early testing and treatment (various funds).  According  
            to information provided by physicians treating children with  
            ALD, clinical outcomes can be greatly improved by early  
            diagnosis and treatment.  Without screening for ALD, a  
            diagnosis often is not made until serious symptoms have  
            occurred.  At that point, treatment is much less effective and  
            the child is at high risk for death or permanent disability.   
            On the other hand, if treatment is provided at the first sign  
            that ALD is occurring (through a magnetic resonance imaging  
            diagnosis, before clinical symptoms are observed) long-term  
            outcomes are greatly improved.
           COMMENTS  :  According to the author, ALD is an X-chromosome  
          genetic disorder that is passed down from mother to son and once  
          symptoms show, it progresses quickly and it is usually too late  
          to do anything meaningful to save the boy.  The author further  
          states that our knowledge about and ability to combat the  
          disease has increased greatly in the last couple decades,  
          including treatments that can cure patients if caught early  
          enough and this makes it imperative, medically and morally, that  
          we catch the disease as early as humanly possible - which makes  
          ALD the perfect candidate for newborn screening.

          In 1966, California began its CNSP with the testing of  
          phenylketonuria.  Since its creation, the CNSP has been expanded  
          several times as new discoveries are made and tests developed  
          and now screens for more than 70 disorders.  Diseases have been  
          added through regulation and legislation.

          Currently only New York and Connecticut screen newborns for ALD.  
           However, on January 16, 2014, the federal Discretionary  
          Advisory Committee on Heritable Disorders in Newborns and  
          Children, which advises the Secretary of the United States  
          Department of Health and Human Services on the most appropriate  
          application of universal newborn screening tests, technologies,  
          policies, guidelines, and standards, approved ALD for review to  








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          add the disease as a core condition for recommended screening of  
          all newborns in the United States  The review process should  
          take approximately two years before a final decision is made.

          According to the California Department of Health Care Services,  
          between 2004 and 2013, the cost of treating 22 children with the  
          disease in the California Children's Services program was  
          slightly more than $100,000 per child, during that nine-year  
          period.  

          ALD is a rare X-chromosome genetic disorder (which affects  
          mostly boys) that can cause injury to the brain, nerves, and  
          adrenal glands.  People with ALD do not generate enough of the  
          protein that breaks down very long chain fatty acids (VLCFA).   
          The myelin sheath, which acts as insulation around the nerves,  
          is made up of these fatty acids; buildup of the VLCFA prevents  
          the brain from communicating with the body.  The first signs of  
          ALD are behavioral and it is often misdiagnosed as attention  
          deficit disorder, but it rapidly leads to a vegetative state and  
          ultimately death.  The childhood form is the most severe and  
          affects boys between the ages of four and eight years old.  The  
          slightly milder adult version affects men in their 20s and 30s.   
          Unless treated before symptoms show, children affected with ALD  
          will die within a few months to a few years.  Early detection  
          and treatment provides dramatically better quality of life for  
          the affected individuals and their families.  Cord blood and  
          bone marrow transplants performed at a very early stage in the  
          disease have proven to treat and heal the patient, enabling a  
          healthy and long life.  


           Analysis Prepared by  :    Lara Flynn / HEALTH / (916) 319-2097 


          FN: 0005374