BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON HEALTH
                          Senator Ed Hernandez, O.D., Chair

          BILL NO:                    SB 1316             
          
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          |AUTHOR:        |Wolk                                           |
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          |VERSION:       |February 19, 2016                              |
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          |HEARING DATE:  |April 6, 2016  |               |               |
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          |CONSULTANT:    |Reyes Diaz                                     |
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           SUBJECT :  Tissue banks: human milk

           SUMMARY  :  Requires a "human milk tissue bank," as defined, to comply  
          with specified nationally recognized guidelines, and the  
          Department of Public Health to adopt rules and regulations, for  
          the safe procuring, processing, storing, and distributing of  
          human milk that is collected from a "participating mother," as  
          defined. 
          
          Existing law:
          1)Requires every tissue bank operating in California to have a  
            current and valid tissue bank license issued or renewed by the  
            Department of Public Health (DPH), with the following  
            exceptions:
                  a)        Licensed blood banks;
                  b)        Entities collecting, processing, storing or  
                    distributing tissue for autopsy, biopsy, training,  
                    education, or for other medical or scientific research  
                    or investigation where transplantation of the tissue  
                    is not intended;
                  c)        A licensed physician and surgeon collecting  
                    tissue from his or her patient, or the implantation of  
                    tissue into his or her patient.  This exemption does  
                    not apply to any processing or storage of the tissue,  
                    except for the processing and storage of semen  
                    collected from a semen donor or obtained from a  
                    licensed tissue bank;
                  d)        The collection, processing, storage, or  
                    distribution of fetal tissue or tissue derived from a  
                    human embryo or fetus;
                  e)        The collection, processing, storage or  
                    distribution by an organ procurement organization;







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                  f)        The storage of prepackaged, freeze-dried bone  
                    by a general acute care hospital;
                  g)        The storage of freeze-dried bone and dermis by  
                    a licensed dentist, provided that it has been obtained  
                    from a licensed tissue bank and stored in accordance  
                    to the manufacturers' instructions and is used for the  
                    express purpose of implantation into a patient; and, 
                  h)        The storage of a human cell, tissue, or  
                    cellular- or tissue-based product that is either a  
                    medical device approved by the federal Food and Drug  
                    Administration (FDA), or that is a biologic product  
                    approved under the federal Public Health Service Act  
                    by a licensed physician or podiatrist. The medical  
                    device or biologic product must have been obtained  
                    from a licensed tissue bank, been stored in accordance  
                    with the device's or product's package insert and any  
                    other manufacturer instruction, and be used solely for  
                    the use of direct implantation into or application on  
                    the practitioner's own patient.

          2)Defines "tissue" as a human cell, group of cells, including  
            the cornea, sclera, or vitreous humor and other segments of,  
            or the whole eye, bones, skin, arteries, sperm, blood, other  
            fluids (including breast milk), and any other portion of a  
            human body.

          3)Defines "tissue bank" as a place, establishment, or  
            institution that collects, processes, stores, or distributes  
            tissue for transplantation into human beings. Defines  
            "transplantation" as the act or process of transferring  
            tissue, including by ingestion, from a donor to the body of  
            the donor or another human being.

          This bill:
          1)Defines "human milk tissue bank" as a tissue bank that  
            provides a participating mother with financial compensation  
            for procuring human milk for the purpose of human consumption.  
            Defines "participating mother" as a woman who provides her  
            human milk to a human milk tissue bank in exchange for  
            financial compensation.

          2)Requires a human milk tissue bank to do all of the following:

                  a)        Comply with the Human Milk Banking Association  
                    of North America (HMBANA) guidelines for safely  








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                    procuring, processing, storing, and distributing human  
                    milk until DPH adopts rules and regulations, as  
                    specified;
                  b)        Work with local, community-based or  
                    hospital-based lactation support groups to provide  
                    ongoing breastfeeding education and lactation support  
                    for a participating mother to ensure that her nursing  
                    children are adequately nourished by her human milk;  
                    and,
                  c)        Disclose to a prospective participating mother  
                    the purposes for which the procured milk is used.

          3)Prohibits a human milk tissue bank from doing any of the  
            following:
                  a)        Procuring human milk from a mother within her  
                    first 180 days postpartum;
                  b)        Using the term "donor" to describe a  
                    participating mother; and,
                  c)        Using the term "community benefit" to describe  
                    itself or its activities.

          4)Requires DPH to adopt, on or before January 18, 2018, rules  
            and regulations governing a human milk tissue bank  
            substantially based upon HMBANA guidelines for safely  
            procuring, processing, storing, and distributing human milk.

           FISCAL  
          EFFECT  :  This bill has not been analyzed by a fiscal committee.
           
          COMMENTS  :
          1)Author's statement. According to the author, human milk is the  
            standard food for infants and young children-including  
            premature and sick newborns. As research evidence continues to  
            strengthen the case for exclusive human milk feeding for  
            neonatal intensive care unit (NICU) infants, there has been  
            increasing interest by pharmaceutical companies to develop  
            human milk-based products. For the past 40 years, a  
            non-profit, grassroots system of milk banking has supplied  
            donated human milk to California maternity hospitals, with  
            quality standards set by HMBANA. Despite addressing different  
            feeding needs, for-profit companies and non-profit HMBANA  
            members rely on the same source for their products:  
            breastfeeding mothers. This competition for human milk has  
            created ethically troubling situations. Safeguards established  
            by this bill would allow for-profit companies to continue to  








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            operate, while protecting the non-profit milk banks' supply of  
            donor milk. These guidelines would also ensure the protection  
            of breastfeeding mothers who have excess milk whether they  
            choose to donate or sell it.  
            
          2)Breastfeeding and human milk benefits. According to the Center  
            for Disease Control and Prevention's Web site, one of the most  
            highly effective preventive measures a mother can take to  
            protect the health of her infant is to breastfeed. However, in  
            the United States, although most mothers hope to breastfeed,  
            and 79% of babies start out being breastfed, only 19% are  
            exclusively breastfed six months later. Rates are  
            significantly lower for African-American infants. An article  
            in the Journal of Midwifery & Women's Health lists the  
            benefits of breastfeeding as decreased rates of sepsis,  
            necrotizing enterocolitis, allergies, diabetes, obesity, and  
            sudden infant death syndrome; increased tolerance for  
            feedings; higher IQ; and improved general health.

          3)Tissue bank licensure. To date, only four states (California,  
            Texas, Maryland, and New York) formally regulate milk banks.  
            The FDA states on its Web site that it has not been involved  
            in establishing voluntary guidelines or state standards for  
            milk banks. According to information provided by DPH to  
            committee staff, DPH requires tissue bank applicants to  
            provide policies and procedures for any process used to show  
            that the applicant can ensure the safe collection,  
            preservation, transportation, storage, and handling of the  
            tissue, and to show that potential tissue donors have been  
            tested or assessed for the transmission of disease through  
            transplantation. Tissue banks are also required to explain how  
            they are preventing the transmission of potential disease to  
            the tissue recipient. For human breast milk, DPH prohibits  
            donations for human ingestion from those who test reactive for  
            agents of viral hepatitis (HBV and HCV), HTVL 1 & 2, HIV 1 &  
            2, or syphilis. Each licensed tissue bank follows its own  
            policies and procedures, which DPH reviews prior to licensure.  
            The quality of breast milk is not regulated except as it  
            applies to microbial contamination. DPH currently licenses 95  
            tissue banks that include milk as a transplantable tissue:  
            five that qualify potential tissue donors, collect, process,  
            store, and distribute human milk; one that qualifies potential  
            donors and collects unprocessed milk; two that collect and  
            store unprocessed milk; and 87 hospital-based tissue banks  
            that store processed human milk for patients' prescription  








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            use. DPH does not distinguish between for-profit and  
            non-profit human milk tissue banks when issuing licenses.

          4)HMBANA. According to its Web site, HMBANA is a professional  
            association for supporters of non-profit donor human milk  
            banking and promotes the health of babies and mothers through  
            the provision of safe pasteurized donor milk and support of  
            breastfeeding. HMBANA is the only professional membership  
            association for milk banks in Canada and the United States,  
            and its guidelines are used globally as a standard for donor  
            milk banking. Each HMBANA member milk bank is assessed yearly  
            and required to provide evidence of adherence to the most  
            recent edition of guidelines for the establishment and  
            operation of a donor human milk bank. As part of the screening  
            process, HMBANA guidelines exclude donors based on a number of  
            clinical issues unique to human milk and infants, including:  
            excessive alcohol consumption; use of marijuana, either  
            medically or casually; use of tobacco or nicotine products,  
            including casually and occasionally; those exposed to  
            second-hand smoke; vegetarians and vegans who do not  
            supplement their diets with Vitamin B12; and those who have  
            used illegal drugs within the past 12 months. 

            According to HMBANA, the tissue processing fees charged by its  
            member milk banks helps defray the cost of donor screening,  
            milk processing, record keeping, donor recruitment, and  
            dispensing of pasteurized milk. HMBANA states that it does not  
            condone the practice of buying and selling human milk as a  
            commodity (and the guidelines specifically prohibit  
            remuneration for the donation of human milk), as introducing a  
            profit motive could put the infant of the lactating mother at  
            risk if she were to feel pressure to provide a certain volume  
            of milk to a bank or a recipient, rather than feeding her own  
            infant. HMBANA also states that a medical institution that is  
            given incentives to provide a specific volume of milk may  
            pressure mothers to become donors regardless of their own  
            infants' needs, and that the recipient is also potentially at  
            risk if this perceived pressure motivates a donor to  
            adulterate her milk to increase volume. 

          5)Rising concerns over the commercialization of human milk.  
            Donor human milk bank experts and health care providers are  
            concerned about the emerging business of financially  
            compensating lactating women and selling their human-milk  
            based products at a much higher price than donor human milk  








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            banks do, as well as creating competition for a scarce  
            resource. A March 2015 article in The New York Times, "Breast  
            Milk Becomes a Commodity, With Mothers Caught Up in Debate,"  
            cites the differences in the amount of human milk produced in  
            a year: Prolacta, a for-profit milk bank based in California,  
            processed 2.4 million ounces of milk in 2014 and aimed to do  
            3.4 million in 2015. In comparison, all 18 non-profit banks  
            nationwide that are HMBANA members dispensed 3.1 million  
            ounces in 2013. HMBANA milk banks charge hospitals a few  
            dollars an ounce to cover the cost of screening donors and  
            pasteurizing the donated milk, which it says does not always  
            cover its costs. Prolacta's fortifier, which is used in  
            combination with donor human milk, contains higher levels of  
            protein, fats, and minerals and can cost about $180 an ounce.  
            Prolacta launched the Tiny Treasures Milk Bank in 2014, which  
            pays $1 per ounce either directly to the donor or to the  
            charity of her choice. A typical baby consumes about $10,000  
            worth of Prolacta's product over several weeks, and the cost  
            is generally paid for by hospitals or insurers, not parents,  
            according to The New York Times article.

            Prolacta's product is intended for extremely premature infants  
            who weigh less than 2.76 pounds at birth. Prolacta states that  
            the high cost is attributed to a higher screening level than  
            HMBANA guidelines require, including lab tests to check for  
            adulteration, ensuring DNA of the human milk matches the  
            donor, and ensuring that the nutritional standard for the  
            product is 20 calories per fluid ounce, in addition to many of  
            the same screenings that HMBANA guidelines require. The  
            founder of Prolacta left the company in 2009 and started  
            another for-profit human milk bank, Medolac, based in Oregon,  
            which produces sterilized donor human milk that does not  
            require freezing or refrigeration. Other companies are also in  
            the process of entering the human milk market. 

          6)Creating economic opportunities or exploitation? The article  
            in The New York Times and another in Newsweek, "The Booming  
            Market for Breast Milk," quote lactating mothers who were able  
            to make extra income from selling their breast milk. The women  
            state that they produced extra milk and adequately fed their  
            babies before donating. The Newsweek article states, "This  
            free-market model [of selling human milk unregulated over the  
            Internet at any price] has wedged itself between traditional  
            non-profit human milk banks, neighborhood milk-swapping sites,  
            and the newest bio-science companies looking to make a  








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            killing" from breast milk. A January 2015 article in The  
            Detroit News, "Detroit groups question pitch for breast milk,"  
            cites backlash that Medolac received when it planned to pay  
            Detroit mothers for donated breast milk. A coalition of  
            organizations accused Medolac of targeting low-income black  
            women in a city with the highest infant mortality in the  
            nation. Medolac's initiative was included in the Clinton  
            Global Initiative's Web site as a co-op campaign to increase  
            breastfeeding in urban areas while injecting nearly $6.57  
            million into urban communities by providing a source of income  
            for breastfeeding women, as well as helping to raise  
            breastfeeding rates for black infants, which are about 50%  
            lower than for white infants at birth, age six months, and age  
            12 months, even when controlling for the family's income or  
            education level, according to The Detroit News. Non-profit  
            human milk banks fear that paying women for donating breast  
            milk can lead to women selling their breast milk while relying  
            on formula to feed their babies. In a 2011 article published  
            in Wired Magazine, Prolacta stated that it did not compensate  
            donors for fear that financial incentive would attract women  
            desperate enough to work the system. Prolacta's CEO was quoted  
            as saying, "We have to make it altruistic. Otherwise, there'll  
            be a picture of a mom on the front page of The New York Times  
            saying, 'I sold my milk for crack.'" 

          7)Prior legislation. SB 246 (Figueroa, Chapter 480, Statutes of  
            2006), required a hospital that collects, processes, stores,  
            or distributes human milk collected from a mother exclusively  
            for her own child to comply with HMBANA standards until or  
            unless DPH approved alternative standards; exempted a hospital  
            from the tissue bank licensure and regulation requirements for  
            the purpose of collecting, processing, storing, or  
            distributing human milk collected from a mother exclusively  
            for her own child; exempted from any screening test  
            requirement human milk collected from a mother exclusively for  
            her own child; and specified that the provisions in this bill  
            do not apply to any hospital that collects, processes, stores,  
            or distributes milk from human milk banks or other outside  
            sources.

            SB 1785 (Figueroa, of 2006), was identical to SB 246. SB 1785  
            was held under submission in the Senate Appropriations  
            Committee. 
            
            AB 532 (Lempert, Chapter 87, Statutes of 1999), made the  








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            procurement, processing, distribution, or use of human milk  
            for the purpose of human consumption the rendition of a  
            service rather than the sale of a product.
            
          8)Support. Supporters, largely health providers and advocates,  
            argue that California has significant disparities in pre-term  
            birth rates, particularly among the low-income population, and  
            ensuring they get the best possible nutrition is a health  
            equity priority. Supporters state that they are seeing efforts  
            to pay women to harvest mothers' milk for use in synthesized  
            human milk products, which are not widely used for all  
            premature infants and meant for distribution largely outside  
            of the region. Supporters state we must ensure that for-profit  
            synthesized human milk products do not undermine the supply of  
            evidence-based, pasteurized donor human milk for medically  
            fragile infants in the state. The American Academy of  
            Pediatrics argues that the commercialization of human milk is  
            concerning to pediatricians because of its negative impact on  
            low-income mothers and children, and has led to a decrease in  
            donations to non-profit milk banks, which distribute milk  
            regardless of ability to pay. Mother's Milk Bank states that  
            their community outreach increasingly finds that breastfeeding  
            mothers are growing more confused by the different venues for  
            milk collection, and by where and how their milk is ultimately  
            used. Supporters state that this bill will require for-profit  
            milk banks to accurately characterize their transactions with  
            participating mothers.

          9)Letters of concern. Prolacta expresses concerns with this  
            bill. Prolacta states that they are the only company that  
            makes clinically proven, high-value nutritional products  
            derived from human milk, which have been proven to prevent  
            debilitating illnesses unique to vulnerable babies. Prolacta  
            states that the provisions in this bill would significantly  
            inhibit their ability to successfully practice in their own  
            state, and that prohibiting them from collecting milk from  
            women before 180 days postpartum is illogical when they  
            currently require a physician's note every four months that  
            states the mother is healthy and the baby is receiving all of  
            the milk they require for their growth and development.  
            Prolacta states that this safeguard prevents moms from  
            donating their milk to the company instead of feeding their  
            own children. Prolacta also states that they strongly advocate  
            for the regulation of the human milk industry and are  
            currently leading a federal effort to have the FDA adopt  








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            safety regulations. Prolacta states that this bill will not  
            only stifle innovation and impede significant scientific  
            research but will also jeopardize the milk supply for babies  
            who need the company's specialty lifesaving formulas. One  
            individual writes with concerns that are substantially similar  
            to Prolacta's, including the prohibition of for-profits to use  
            of the term "donor" when referencing participating mothers and  
            the requirement to comply with HMBANA guidelines. The  
            individual suggests amendments to this bill that would a)  
            prohibit all milk banks from accepting milk from mothers  
            within the 180-day postpartum period, unless a physician's  
            authorization is given; b) strike language that prohibits  
            for-profits from referring to mothers as "donors" if they are  
            compensated; and c) require all milk banks to test for  
            nicotine and drugs of common abuse, and to test finished milk  
            products for diseases and viruses.

          10)Opposition. The National Coalition for Infant Health (NCfIH)  
            argues that this bill will have unintended consequences of  
            reducing the supply of human breast milk donations and  
            production of a critical breastmilk supply for premature  
            babies. NCfIH states that the prohibition to receive milk from  
            mothers who are within the 180-day postpartum period is not  
            evidence based, and that only for-profit companies manufacture  
            the human milk-based supplements that help premature babies.  
            Other opponents, comprised of four donating mothers, argue  
            that their ability to donate extra milk, rather than throw it  
            away, has enabled them to earn extra income to support their  
            families while continuing to provide breast milk to their  
            babies and help other babies in need. They argue that the  
            organizations to which they donate have always made it clear  
                                         to them how the donated milk is being used and have required  
            rigorous screening before being able to donate. 
          
          11)Policy comments. 
               a)     The author of this bill states that the safeguards  
                 contained in this bill will allow for-profits to continue  
                 to operate. For-profits would be allowed to receive  
                 donated milk from women within the 180-day postpartum  
                 period, but they just would not be allowed to financially  
                 compensate donors during that time period. What is  
                 unclear is whether a for-profit would be required to  
                 obtain two separate licensure types: the current license  
                 for a "tissue bank" and an additional license for the new  
                 definition of "human milk tissue bank." The author may  








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                 wish to clarify this.
               b)     It is unclear how DPH would track if a human milk  
                 tissue bank is providing compensation. The author may  
                 wish to clarify that DPH, when developing rules and  
                 regulations, is required to create a mechanism for  
                 tracking if a tissue bank is providing compensation.
               c)     This bill requires DPH to develop rules and  
                 regulations governing a human milk tissue bank  
                 substantially based upon the HMBANA guidelines. While  
                 non-profit milk banks comply with HMBANA guidelines,  
                 nothing in current statute requires them to. The author  
                 may wish to amend language to require both for-profit and  
                 non-profit milk banks to comply with rules and  
                 regulations developed by DPH that, at a minimum, are  
                 substantially based upon HMBANA guidelines for safely  
                 procuring, processing, storing, and distributing human  
                 milk.
          
           SUPPORT AND OPPOSITION  :
          Support:  American Academy of Pediatrics
                    California Breastfeeding Coalition
                    California Center for Public Health Advocacy
                    California Conference of Local Health Department  
                    Nutritionists
                    California WIC Association
                    March of Dimes
                    Monterey County Nutrition Programs
                    Mother's Milk Bank of San Jose
                    NEC Society
                    UC Davis Foods for Health Institute
                    Four individuals
          
          Oppose:   National Coalition for Infant Health
                    Four individuals
          


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