BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 995
                                                                  Page  1

          Date of Hearing:   April 21, 2009

                            ASSEMBLY COMMITTEE ON HEALTH
                                  Dave Jones, Chair
                     AB 995 (Block) - As Amended:  April 13, 2009
           
          SUBJECT  :   Tissue bank licensing.

           SUMMARY  :   Deletes requirements that the Department of Public  
          Health (DPH) regulate tissue banks, and instead requires tissue  
          banks to comply with the current standards of the American  
          Association of Tissue Banks (AATB), and changes the civil  
          administrative penalties DPH may impose for noncompliance with  
          the standards.  Specifically,  this bill  :  

          1)Deletes a requirement that DPH adopt regulations governing  
            tissue banks engaged in the collection of human  
            musculoskeletal tissue, skin, and veins for transplantation in  
            humans.  

          2)Prohibits a person from collecting, processing, storing, or  
            distributing human tissue except in accordance with the 12th  
            edition of Standards for Tissue Banking as published by AATB  
            and in effect on May 1, 2009.  Establishes the AATB standards  
            as the standards for all licensed tissue banks operating in  
            California or providing tissue to be used in California. 

          3)Requires DPH to, upon approval, adopt as regulations not later  
            than 90 days after publication by AATB, amendments to, or  
            later editions of, the AATB Standards for Tissue Banking.   
            Exempts adoption of the AATB standards from the requirements  
            of the Administrative Procedure Act.

          4)Authorizes DPH to impose, as an alternative to revocation or  
            suspension of a tissue bank license, a civil administrative  
            penalty of up to $100 per day of noncompliance per violation,  
            and limits the aggregate penalty to $3,000 per day.  Requires  
            the penalty to be imposed only after notice and an opportunity  
            to respond, in accordance with specified administrative  
            adjudication requirements. 

           EXISTING LAW  :

          1)Requires DPH to adopt, on or before July 1, 2004, rules and  
            regulations governing licensed tissue banks engaged in the  








                                                                  AB 995
                                                                  Page  2

            collection of human musculoskeletal tissue, skin, and veins  
            for transplantation in humans, and specifies that the  
            regulations must be based on criteria used by tissue bank  
            trade associations, including AATB, among other requirements.   
            Requires DPH to report, on or before July 1, 2003, to the  
            Legislature regarding the status of the proposed regulations. 

          2)Defines tissue to include any human cell, group of cells,  
            tissue or organ, including parts of, or the whole eye, bones,  
            skin, arteries, sperm, blood, other fluids, and any other  
            portion of a human body.  Defines a tissue bank as any place,  
            establishment, or institution that collects, processes,  
            stores, or distributes tissue for transplantation into human  
            beings. 

          3)Establishes requirements for the licensing of tissue banks and  
            for licensing fees.  Requires every tissue bank to have a  
            current and valid tissue bank license issued or renewed by  
            DPH, except as specified.  Provides that any person who  
            violates the body of law governing tissue banks is guilty of a  
            misdemeanor and upon conviction, must be punished by a fine  
            not to exceed $1,000 or by imprisonment in a county jail for a  
            period not to exceed 180 days, or by both fine and  
            imprisonment. 

           FISCAL EFFECT  :   This bill has not been analyzed by a fiscal  
          committee. 

           COMMENTS  :   

           1)PURPOSE OF THIS BILL  .  According to the author, DPH has been  
            unable to develop licensing standards for tissue banks for  
            several reasons.  First, because DPH Laboratory Field Services  
            (LFS) staff lacks internal expertise, it must rely on experts  
            in the tissue bank field to advise on tissue processing  
            standards this bill.  The author states it took several years  
            for LFS to draft initial regulations with input from experts  
            and stakeholders, and because of rapid changes in tissue  
            banking technology, the draft standards were outdated before  
            they could be reviewed by DPH legal staff.  In short, the  
            process of developing regulations was too slow and  
            unresponsive. 

          The author states there have been numerous high profiles cases  
            of tissue contamination that might have been avoided if DPH  








                                                                  AB 995
                                                                  Page  3

            had been able to apply specific AATB standards to tissue  
            banks.  For example, one out-of-state, California-licensed  
            tissue bank provided knee blocks contaminated with  
            Clostridium, resulting in injury to California patients and  
            death to patients in other states.  The author argues these  
            incidents could have been prevented if the AATB standards for  
            storage of excised tissue had been followed. 

          According to the author, tissue banks are not currently required  
            to comply with AATB standards, though many comply voluntarily.  
             The author argues this bill is needed to adopt the AATB  
            standards as a condition of tissue bank licensure so DPH can  
            take specific, standardized enforcement action as needed.  

           2)BACKGROUND  .  According to the United States (U.S.). Centers  
            for Disease Control and Prevention (CDC), the bones or tissues  
            that are transplanted from the body of one person to another  
            person are called allografts.  Tissue allografts can include  
            bones, heart valves, blood vessels, skin, and tendons, and are  
            usually obtained from deceased donors.  Tissue from one donor  
            can be processed into many forms and used to treat many  
            people.  Bone and tissue allografts are used in a variety of  
            procedures that can save lives, replace skin after severe  
            burns, repair limbs, restore eyesight, relieve pain, help  
            people start a family, or otherwise enhance a patient's  
            quality of life.  For example, tissue allografts can be used  
            to replace damaged heart valves and skin.  Tissue allografts  
            are also frequently used in orthopedic surgery to replace  
            tendons or bones damaged by trauma, tumors, or other  
            conditions.  According to the AATB, AATB-accredited tissue  
            banks in the U.S. distribute more than 2 million bone and  
            tissue allografts from 30,000 donors each year.  The Joint  
            Commission on Accreditation of Healthcare Organizations stated  
            in a 2005 tissue transplant meeting organized by the federal  
            government that tissue transplants had tripled since 1990. 

          In 2007, over 2,000 human tissue banks were registered with the  
            U.S. Food and Drug Administration (FDA).  Tissue banks perform  
            a variety of functions, including procuring ("recovery"),  
            processing, storing, and distributing human tissues.   
            According to a 2001 report by the U.S. Department of Health  
            and Human Services Office of the Inspector General (OIG),  
            among the 58 cadaveric tissue banks that were accredited by  
            AATB, 54 retrieved tissue, 34 processed tissue, and 56 stored  
            and distributed tissue.  Some tissue banks limit their  








                                                                  AB 995
                                                                  Page  4

            activities to specific tissues, such as semen or corneas.  Of  
            the 58 cadaveric tissue banks in the OIG report, 51 retrieved  
            musculoskeletal tissues, 37 retrieved cardiovascular tissues,  
            and 20 retrieved skin.  

          As a condition of participation in federal programs, every  
            hospital in the U.S. is required to report all deaths to the  
            organ procurement organization in its region, such as the  
            California Transplant Donor Network (Transplant Network).   
            When a potential donor is identified, the Transplant Network  
            contacts the tissue bank that contracts with the hospital, and  
            the tissue bank assesses the patient's medical chart and  
            history to determine whether the deceased person is suitable  
            for tissue donation.  If the deceased patient is deemed  
            suitable, the tissue bank contacts the next of kin, and a team  
            from the tissue bank comes to the hospital to remove the  
            tissues.  Tissues are sent to tissue banks for processing and  
            distribution.  Tissue banks subject tissues to one or more  
            disinfection processes that are designed to kill or remove any  
            bacteria, fungi, or viruses that might be present.  According  
            to CDC, different companies use different methods to disinfect  
            the tissue, including rinsing with antimicrobial chemicals,  
            sometimes under pressure, as well as irradiation.  In some  
            instances, multiple methods might be used.  CDC states  
            individual tissues from eligible donors are tested for the  
            presence of bacteria, mold, and fungi when they are removed  
            from the donor, and this testing is repeated after the tissues  
            have been subjected to the procedures designed to remove  
            organisms.  

           1)TISSUE BANK LICENSING  .  According to DPH, 545 tissue banks  
            currently hold California licenses; of these, 421 are in  
            California and 125 are out-of-state.  The license application  
            and renewal fees are each $975.  DPH is authorized to do any  
            of the following:

             a)   Enter or inspect, with or without announcement, any  
               building, premise, equipment, materials, records, or  
               information to secure compliance with, or prevent a  
               violation of, tissue bank laws or regulations adopted by  
               DHS; 
             b)   Inspect, photograph, or copy any records, reports, test  
               results, test specimens, or other information relevant to  
               determining compliance with state laws and regulations;
             c)   Secure any sample, photograph, or other evidence from  








                                                                  AB 995
                                                                  Page  5

               any building or premise for the purpose of enforcing state  
               laws and regulations; and,
             d)   Require licensed tissue banks to demonstrate  
               satisfactory performance in a proficiency testing program  
               in laboratory procedures which the tissue bank performs.

            DPH reports that it inspects tissue banks, and has a goal of  
            inspecting each tissue bank once every two years, but with  
            current staff is only able to inspect about 60 per year. 

           1)AATB  .  CDC describes AATB as a voluntary accreditation  
            organization that sets standards for tissue banking.  AATB  
            traces its founding to 1949, when a group of physicians and  
            scientists founded the U.S. Navy tissue bank, the nation's  
            first tissue bank.  AATB states its mission is to: a)  
            Establish and promulgate standards to provide tissue banks  
            with performance requirements for the purposes of preventing  
            disease transmission and assisting clinical performance of  
            tissue transplants; b) Foster education and research; and, c)  
            Promote quality and safety in tissue banking and  
            transplantation.  AATB also states it is dedicated to ensuring  
            that human tissues intended for transplantation are of uniform  
            high quality, safe and free of infectious disease, and  
            available in quantities sufficient to meet national needs.   
            The AATB states it has accredited more than 100 tissue banks  
            and has 1,100 individual members.  

          The 12th Edition of the Standards of Tissue Banking was  
            published in February 2008 and establishes performance  
            requirements for donor selection as well as for the  
            processing, storage, packaging, labeling, and distribution of  
            transplantable human musculoskeletal, skin, reproductive,  
            cardiac, and vascular tissue.  The AATB Standards also  
            establish requirements related to organization; recordkeeping;  
            personnel qualifications; consent procedures for living and  
            deceased donors; screening donors; testing tissues for  
            infections; informing donors of test results; re-testing  
            donors; and, quality control measures, including proficiency  
            testing and investigation of errors.  The Standards are also  
            updated regularly with replacement sections, and AATB also  
            publishes Guidance Documents.  The 13th Edition is due in  
            2010.  AATB also provides accreditation, which can take nine  
            months; 14 California tissue banks have received AATB  
            accreditation.  Additionally, AATB provides certification for  
            tissue bank personnel and a specialty certification for  








                                                                  AB 995
                                                                  Page  6

            reproductive cryotechnology specialists. 

          According to AATB, six states and the District of Columbia  
            require tissue banks to obtain AATB accreditation; several  
            other states require adherence to AATB standards for all or  
            specified tissue bank activities; and, two states incorporate  
            AATB standards by reference, for example, burn centers may  
            only obtain tissue from AATC-accredited tissue banks.  AATB  
            also states its standards serve as a model for FDA  
            regulations, Health Canada's Draft Guidance for tissue safety,  
            New York Department of Health's tissue and cell standards,  
            European Union Directives, European Association of Tissue  
            Banks standards, the British Association of Tissue Banks  
            standards, and the developing standards for the Latin American  
            Association for Tissue Banks. 

           2)FEDERAL REGULATION OF TISSUE BANKS  .  Tissue banks must  
            register with FDA and adhere to all FDA regulations governing  
            tissue banking, and are subject to inspection by the FDA.  The  
            FDA Center for Biologics Evaluation and Research regulates  
            human tissues intended for transplantation (although the U.S.  
            Health Resources and Services Administration regulates the  
            transplantation of organs such as kidneys, livers, and  
            hearts).  According to a 2007 report of the FDA Human Tissue  
            Task Force, FDA did not begin regulating human tissue intended  
            for transplantation until 1993, when it issued requirements  
            for donor screening and testing.  In 1997, FDA issued a  
            revised approach with three rules, which was finalized and  
            became effective in 2005.  One rule requires firms to register  
            and list their tissue products with FDA.  The second rule  
            requires tissue establishments to evaluate donors, through  
            screening and testing, to reduce the transmission of  
            infectious diseases through tissue transplantation.  The third  
            rule establishes current good tissue practices for tissues  
            intended for transplantation. 

           3)SUPPORT  .  AATB writes in support that although California  
            tissue banks must be licensed by the State and registered with  
            FDA, adherence to AATB standards would provide additional  
            consumer safety and protection in every aspect of tissue  
            banking.  AATB further states the standards contain the latest  
            expertise of tissue bank professionals and are developed with  
            input from tissue-specific councils and appropriate standing  
            or ad hoc committees as needed.  The Blood Centers of  
            California (BCC) writes in support that it has functioned  








                                                                  AB 995
                                                                  Page  7

            under standards published by the American Association of Blood  
            Banks, which serve as the state law governing all blood  
            centers in California, and that this has worked well.  BCC  
            writes this bill will provide assurance that adherence to  
            standards provide governance in every aspect of tissue  
            banking.  The American Federation of State, County, and  
            Municipal Employees, AFL-CIO writes it supports this bill to  
            encourage the regulation of tissue banks within California. 
           4)RELATED LEGISLATION  .  

             a)   AB 1397 (Hill), pending in the Assembly, deletes a  
               requirement that DPH adopt regulations related to  
               processing sperm to minimize infectiousness and removes  
               other requirements related to sperm donations in cases  
               where the donor tests positive for human T-lymphotrophic  
               virus-1.
             b)   AB 1132 (Jones), pending in the Assembly, requires the  
               Department of Motor Vehicles to include organ and tissue  
               donation information on the vehicle registration  
               application and renewal forms and allows drivers who  
               register or renew their vehicle to make a voluntary $2  
               contribution to benefit organ donation education and  
               awareness.

           5)PREVIOUS LEGISLATION  .

             a)   AB 1060 (Laird), Chapter 427, Statutes of 2008,  
               establishes an exemption from existing tissue bank  
               licensure requirements for licensed dentists who store  
               freeze-dried bone and dermis, under specified conditions.
             b)   SB 1135 (Polanco and Murray), Chapter 929, Statutes of  
               2002 requires DPH (then Department of Health Services  
               (DHS)), on or before July 1, 2003, to adopt rules and  
               regulations governing tissue banks, and requires the rules  
               and regulations to be substantially the same as the  
               standards set forth in the most recent publication of the  
               AATB Standards for Tissue Banking.
             c)   AB 2167 (Gallegos), Chapter 829, Statutes of 2000,  
               requires DPH (DHS) to submit a report to the Legislature no  
               later than January 1, 2003, that includes examining  
               administrative expenditures of tissue banks; use of  
               informed consent in tissue donation and recovery;  
               disclosure requirements by tissue banks to the donor or the  
               person authorized to make a donation on behalf of a  
               decedent of all potential uses of donated and recovered  








                                                                  AB 995
                                                                  Page  8

               tissues; a system in which individuals for whom donated  
               tissues are medically necessary are given priority; the  
               feasibility of state subsidies to implement the system;  
               and, the process for tissue recovery and distribution.

           6)POLICY QUESTION  .  This bill allows DPH to adopt regulations  
            without the public review process required under the  
            Administrative Procedure Act.  The author may wish to consider  
            requiring DPH to provide the public an opportunity to review  
            new AATB standards and provide comment before DPH adopts them  
            as regulations.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Department of Public Health (sponsor)
          American Association of Tissue Banks 
          American Federation of State, County, and Municipal Employees,  
          AFL-CIO
          Blood Centers of California

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    Allegra Kim / HEALTH / (916) 319-2097