BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1559
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          ASSEMBLY THIRD READING
          AB 1559 (Pan)
          As Amended May 23, 2014
          Majority vote 

           HEALTH              19-0        APPROPRIATIONS      17-0        
           
           ----------------------------------------------------------------- 
          |Ayes:|Pan, Maienschein,         |Ayes:|Gatto, Bigelow,           |
          |     |Ammiano, Atkins, Bonilla, |     |Bocanegra, Bradford, Ian  |
          |     |Rendon, Ch�vez, Chesbro,  |     |Calderon, Campos,         |
          |     |Gomez, Gonzalez, Roger    |     |Donnelly, Eggman, Gomez,  |
          |     |Hern�ndez, Mansoor,       |     |Holden, Jones, Linder,    |
          |     |Nazarian, Nestande,       |     |Pan, Quirk,               |
          |     |Patterson, Ridley-Thomas, |     |Ridley-Thomas, Wagner,    |
          |     |Wagner, Wieckowski,       |     |Weber                     |
          |     |Bocanegra                 |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Requires the Department of Public Health (DPH) to  
          expand statewide screening of newborns to include screening for  
          adrenoleukodystrophy (ALD).  

           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). 

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee:

          1)Annual estimated screening costs to the DPH Newborn Screening  
            (NBS) Program statewide of $4.5 million (Genetic Disease  
            Testing Fund).  This test is estimated to cost $9 per child. 

          2)Annual estimated costs to the Medi-Cal program of $2.3 million  
            (45% General Fund (GF), remainder federal funds).  Medi-Cal  
            pays for approximately 50% of the births in the state, and  
            reimburses the NBS Program for screening costs associated with  








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            Medi-Cal births.  

          3)It appears likely that with the imposition of the screening  
            test, monitoring of ALD-diagnosed children who otherwise would  
            not have been monitored will increase costs by a small amount  
            in the California Children's Services (CCS) program, likely  
            less than $100,000 (GF/ federal) annually.  Treatment costs in  
            CCS associated with ALD would likely be similar to, or  
            possibly somewhat less than, what CCS pays currently, with  
            treatment being provided earlier, to slightly more children,  
            with lower costs, fewer risks, and better outcomes.  

            To the extent successful treatment avoided permanent  
            disability and reduce the number of children receiving  
            services the state would otherwise pay for, such as regional  
            center or long-term care services, unknown but potentially  
            significant annual GF cost savings are possible. 

           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  
          add the disease as a core condition for recommended screening of  
          all newborns in the United States  The review process should  








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          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.   
          The article "Long-term effect of bone-marrow transplantation for  
          childhood-onset cerebral X-linked adrenoleukodystrophy," in  
          medical journal the Lancet, August 26, 2000; Volume 356, found  
          the long-term beneficial effect of bone marrow transplantation  
          when the procedure is done at an early stage of the disease.


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


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