BILL ANALYSIS                                                                                                                                                                                                    






                                 SENATE HEALTH
                               COMMITTEE ANALYSIS
                        Senator Elaine K. Alquist, Chair


          BILL NO:       ACR 74                                       
          A
          AUTHOR:        Portantino, Hill                             
          C
          AMENDED:       February 24, 2010                            
          R
          HEARING DATE:  June 16, 2010                               
          CONSULTANT:                                                 
          7
          Tadeo                                                       
          4
                                        

                                     SUBJECT
                                         
                          Umbilical cord blood banking

                                     SUMMARY  

          Makes a number of legislative findings and declarations  
          related to public and private umbilical cord blood  
          collection as a means of providing treatment for blood  
          cancers and other diseases.  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. 

                             CHANGES TO EXISTING LAW  

          Existing federal law:
          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.
          
          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:
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          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).

          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.
          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 website, and to undertake public education  
          activities related to umbilical cord blood donation to  
          targeted populations, as  appropriate.
          
          This resolution:
          Makes a number of legislative findings and declarations  
          related to: 
                 the history of umbilical cord blood transplants,  
               research and treatment;  
                 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  




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               cord blood stem cells to treat medical conditions;  
               and, 
                 the importance of building a viable public banking  
               system.

          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.

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

                                  FISCAL IMPACT
           
          This resolution is keyed non-fiscal  . 

                           BACKGROUND AND DISCUSSION  

          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.

          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 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  




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          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 percent 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 1 in 1,000 to 1  
          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.
          
          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 collection of whole blood units in the U.S., for  




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          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 websites, twenty-five facilities nationwide are  
          currently accredited by the AABB and eight currently have  
          FACT accreditation.

          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.

          California Umbilical Cord Blood Collection Program 
          AB 34 (Portantino), Chapter 516, Statutes of 2007, creates  
          the California Umbilical Cord Blood Collection Program  
          (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  




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          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 to  
          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.

          National Cord Blood Inventory (NCBI)  
          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.

          Related bills
          AB 52 (Portantino) requires 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 requires DPH to  
          establish the California Umbilical Cord Collection Board  
          which would administer the program, and requires the  
          collection of a nine dollar fee for certified copies of  
          birth certificates until January, 1, 2020, two dollars of  
          which would be paid to the Umbilical Cord Blood Collection  
          Program Fund.  AB 52 is set to be heard in the Senate  
          Health Committee on June 23, 2010. 





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          Prior federal legislation:
          H.R. 2520 (Smith) of  2005 establishes a national umbilical  
          cord blood program and provides federal funding to expand  
          and administer umbilical cord blood transplants and  
          research. 
          
          Prior legislation
          AB 34 (Portantino), Chapter 516, Statutes of 2007, directs  
          DPH to establish the UCBCP by January 1, 2010, and 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.  
           
          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.
          
          SB 1555 (Speier), Chapter 484, Statutes of 2006, requires  
          blood banks to be licensed in order to provide umbilical  
          cord blood banking storage services and directs the  
          Department of Health Services (now DPH) to conduct the  
          Umbilical Blood Community Awareness Campaign, contingent  
          upon private funding.

          SB 253 Ortiz, Chapter 789, Statutes of 2002, permits all  
          forms of stem cell research in the State of California, and  
          requires certain health care providers to provide patients  
          with information relating to the disposition of any human  
          embryos remaining following fertility treatment. 
          
          SB 617, Speier, Chapter 464, Statutes of 2003, requires  
          tissue banks to inform donor families of all uses of  
          donated tissues, including for-profit uses.

          Arguments in support
          The American Congress of Obstetricians and Gynecologists,  
          District IX, California (ACOG), sponsor of this resolution,  
          states that a general public awareness of what cord blood  
          is, what it can do, and a nonbiased explanation of the  
          differences between private and public cord blood banking,  




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          brings clarity and support to umbilical cord blood banking.  


          The University of California (UC) states that increasing  
          umbilical cord banking for public use, such as for  
          transplant or for research, is an important policy goal  
          that the University is familiar with and supports.  UC  
          notes that the UCLA campus was selected by the National  
          Institutes of Health, as one of two sites, to build a  
          national cord blood bank system in the late 1990s, which  
          was shut down in April, 2001 due to funding limitations. UC  
          contends that ACR 74 highlights the financial challenges  
          faced by public umbilical cord blood banks. 

                                  PRIOR ACTIONS

           Assembly Health Committee:    18-0
          Be adopted by a voice vote on the Assembly Floor


                                    POSITIONS  
                                        
          Support:  American Congress of Obstetricians and  
          Gynecologists, District IX
                            Association of Northern California  
          Oncologists
                 Bay Bio
                 Blood Centers of California
                 California Academy of Physician Assistants
                 California Chronic Care Coalition
                 California Catholic Conference
                 National Bone Marrow Program
                 University of California 
           

          Oppose:  None received




                                   -- END --
          




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