Office of House Bill AnalysisH.B. 3572
By: George
Public Health


Each year thousands of individuals in the United States are diagnosed with
fatal blood-related diseases, such as leukemia, lymphoma, aplastic anemia,
and deficiencies of the immune system. A majority of such cases are treated
through bone marrow transplants, yet approximately 10,000 to 15,000
Americans each year who need a bone marrow transplant are unable to find
suitable donors. In lieu of a bone marrow transplant, umbilical cord blood,
which is rich in stem cells, may be used to treat a variety of these fatal
blood-related diseases. Unfortunately, treatment by umbilical cord blood is
not always an option because of the lack of facilities, problematic
collection procedures, and costs associated with testing, processing, and
storage. House Bill 3572 establishes a grant program for the establishment
of an umbilical cord blood bank in Texas. 


It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the commissioner of health and human
services in SECTIONS 2 and 4 of this bill. 


House Bill 3572 requires the Health and Human Services Commission (HHSC),
subject to available funds, to establish a grant program for the
establishment of an umbilical cord blood bank for recipients of blood and
blood components who are unrelated to the donors of the blood. The bill
requires the commissioner of health and human services (commissioner) by
rule to establish eligibility criteria for awarding the grant. In awarding
the grant, the bill requires HHSC to consider the ability, experience, and
commitment of the grant applicant to operate and maintain such a facility.
The bill provides that a grant recipient must enter into a contract under
which the recipient agrees to operate and maintain an unrelated donor
umbilical cord blood bank for eight years, to gather, collect, and preserve
umbilical cord blood only from live births, and to comply with financial
and reporting requirements imposed on the recipient under rules adopted by
the commissioner. The bill requires the commissioner to adopt rules
necessary to implement the Act not later than January 1, 2002. An awarded
grant is governed by provisions regarding uniform grant and contract
management and rules adopted under these provisions. The bill requires the
grant to be awarded in the fiscal biennium beginning September 1, 2001, and
authorizes it to be awarded in subsequent bienniums only if money is
specifically appropriated for that purpose.  


September 1, 2001.