BILL NUMBER: SB 1309 CHAPTERED BILL TEXT CHAPTER 837 FILED WITH SECRETARY OF STATE SEPTEMBER 30, 2006 APPROVED BY GOVERNOR SEPTEMBER 30, 2006 PASSED THE SENATE AUGUST 30, 2006 PASSED THE ASSEMBLY AUGUST 24, 2006 AMENDED IN ASSEMBLY AUGUST 21, 2006 AMENDED IN ASSEMBLY AUGUST 10, 2006 AMENDED IN ASSEMBLY AUGUST 7, 2006 AMENDED IN ASSEMBLY JUNE 26, 2006 AMENDED IN SENATE MAY 17, 2006 AMENDED IN SENATE MAY 3, 2006 AMENDED IN SENATE APRIL 17, 2006 INTRODUCED BY Senator Scott (Principal coauthor: Senator Perata) FEBRUARY 16, 2006 An act to amend Section 87482 of, to amend and renumber Sections 69616, 69616.1, 69616.2, 69616.3, 69616.4, 69616.5, 69616.6, 69616.7, 69616.8, 69616.9, and 69617 of, to add Article 3.51 (commencing with Section 78260), Article 3.52 (commencing with Section 78261), and Article 3.53 (commencing with Section 78262) to Chapter 2 of Part 48 of, to add Article 7.7 (commencing with Section 89267) to Chapter 2 of Part 55 of, to add Article 5.5 (commencing with Section 92645) to Chapter 6 of Part 57 of, to add the heading of Chapter 3 (commencing with Section 70100) to Part 42 of, and to add the heading of Article 1 (commencing with Section 70100) to Chapter 3 of Part 42 of, to add and repeal Article 10 (commencing with Section 33430) of Chapter 3 of Part 20 of, to add and repeal Article 2 (commencing with Section 70120) of Chapter 3 of Part 42 of, and to repeal the heading of Article 5.3 (commencing with Section 69616) of Chapter 2 of Part 42 of, the Education Code, relating to nursing education. LEGISLATIVE COUNSEL'S DIGEST SB 1309, Scott Nursing education: grants, loan assumptions, and faculty recruiting and retention. (1) Existing law establishes programs of nursing education at public and private institutions of higher education. This bill would express legislative intent with respect to expanding the capacity of the state's institutions of higher education to prepare students for nursing careers. (2) Existing law establishes the State Department of Education under the administration of the State Board of Education and the Superintendent of Public Instruction, and provides the department with numerous duties and responsibilities with respect to statewide administration of public elementary and secondary education programs and services. This bill would establish a Health Science and Medical Technology Project to provide competitive grant funds to California public schools offering grades 7 to 12, inclusive, to enhance existing or establish new health-related career pathway programs, including programs at California Partnership academies and regional occupational centers and programs, as well as other health science and medical technology pathway programs. The bill would express legislative intent with respect to the funding of this project. The bill would require the State Department of Education to report to the Legislature and the Governor on the efficacy of this project on or before January 1, 2012. The bill would repeal the program as of January 1, 2014. (3) Existing law establishes the Student Aid Commission as the primary state agency for the administration of state-authorized student financial aid programs available to students attending all segments of postsecondary education. Existing law establishes the State Nursing Assumption Program of Loans for Education (SNAPLE), administered by the commission, under which any person enrolled in an institution of postsecondary education and participating in that loan assumption program is eligible to receive a conditional warrant for loan assumption, to be redeemed upon becoming employed as a full-time nursing faculty member at a California college or university. Among other things, the SNAPLE act establishes eligibility requirements, including the receipt of a graduate degree from an accredited, participating institution before loan assumption payments may be made, limits each participant in the program to one loan assumption agreement, and provides for a progressive assumption of the amount of the loan over 3 consecutive years of teaching, up to a total loan assumption of $25,000. The SNAPLE act requires the commission to report annually to the Legislature, and states the intent of the Legislature that, commencing with the 2006-07 fiscal year, funding necessary for the administration of the program shall be included within the annual budget of the commission. This bill would amend the SNAPLE act to authorize the award of loan assumption agreements under the program to undergraduate students and to authorize the making of loan assumption payments to applicants who have taught on a part-time basis for the equivalent of 3 full-time academic years. The bill would authorize the extension of the term of a loan assumption agreement if a natural disaster prevents a program participant from completing one of the years of required teaching service. The bill would express the intent of the Legislature that the amendments made by the bill apply retroactively to existing loan assumption agreements made under the program, and would authorize the commission to amend any existing loan assumption agreements and to issue new loan assumption agreements to conform to this bill. The bill would also make various technical, nonsubstantive changes in the SNAPLE act. This bill would establish a loan assumption program for employees of specified state facilities within the SNAPLE program. This program would provide loan assumption benefits to persons who fulfill agreements to work full time for 4 consecutive years as clinical registered nurses in state-operated 24-hour facilities, as specified, that employ registered nurses and that, at the time the person commences employment at the facility, have a vacancy rate of greater than 10% in clinical registered nursing positions, as reported, pursuant to the bill, to the commission by the Department of Personnel Administration. The program would provide for a progressive assumption of the amount of a qualifying loan over 4 consecutive years of qualifying clinical registered nursing service, up to a total loan assumption of $20,000. The bill would require the commission to report specified data about program participants annually to the Legislature. The bill would require the Office of the Legislative Analyst to submit, on or before May 1, 2011, a report to the Legislature that includes the findings and recommendations of the Legislative Analyst with respect to the efficacy of the program. The bill would provide that this program would become inoperative on July 1, 2012, and would be repealed on January 1, 2013. (4) Existing law establishes the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, as one of the segments of public postsecondary education in this state. Existing law requires the board of governors to appoint a chief executive officer, known as the Chancellor of the California Community Colleges. Existing law establishes community college districts throughout the state, and authorizes these districts to provide instruction to students at the community college campuses maintained by the districts. The bill would establish the California Community Colleges Nursing Faculty Recruitment and Retention Program for purposes of facilitating the recruitment and retention of qualified nursing faculty. The bill would specify the amount of the grants that would be disbursed, under the program, to each participating community college district. The bill would repeal provisions of this program relating to the development of 5 nursing resource centers, contingent upon the receipt of funds from the United States Department of Labor, as of January 1, 2012. (5) Existing law authorizes the governing board of a community college district to employ any qualified individual as a temporary faculty member for a complete school year, but prohibits the employment of a person under this provision for more than 2 semesters or 3 quarters within any period of 3 consecutive years. This bill would exempt persons serving as clinical nursing faculty from this limit, and instead limit these persons to employment under this provision for up to 4 semesters or 6 quarters within any period of 3 consecutive academic years between July 1, 2007, and June 30, 2014. The bill would require districts employing persons under this provision to provide specified data to the Chancellor of the California Community Colleges on or before June 30, 2012, and would require the chancellor to report to the Legislature and the Governor on or before September 30, 2012, on specified topics related to this provision. The bill would prohibit a district from employing a person pursuant to this provision if the hiring of that person results in an increase in the ratio of part-time to full-time nursing faculty in that district. (6) Existing law establishes the California State University under the administration of the Trustees of the California State University, and provides for the operation of 25 component institutions of the university. This bill would express legislative intent with respect to the expansion and funding of baccalaureate degree nursing programs of the university. (7) Existing law establishes the University of California under the administration of the Regents of the University of California, and authorizes the provision of instruction at the 10 component institutions of the university. This bill would express legislative intent with respect to the expansion and funding of baccalaureate and master's degree nursing programs of the university. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. (a) The Legislature hereby finds and declares that California is facing a health care crisis of immense proportion in major part due to a critical shortage of registered nurses. California currently ranks 49th among states in nurses per capita. This shortage is expected to increase over the next five years due to the aging of both the general population and of the nursing workforce. It is estimated that, in order to fill the projected shortage, California will need to graduate an additional 3,300 nurses a year. (b) Furthermore, state educational institutions do not currently have the capacity to meet California's nursing workforce needs. Schools are filled to capacity and have long waiting lists. A shortage of faculty and clinical facilities makes it difficult for schools to expand their programs. A significant number of students fail to complete registered nursing programs because of a lack of preparation, limited program support services, and college admission policies. (c) The Legislature also finds that diversity in the health care workforce is essential to providing quality access to health care to the multicultural and ethnic communities in the state. (d) Therefore, the Legislature declares its intent to establish the Nursing Education Pipeline Act of 2006 to expand the number of nurses educated in California over the next five years by accomplishing all of the following: (1) Expanding the capacity of health career programs at the secondary level. (2) Increasing nursing education enrollment in community colleges and the California State University system. (3) Recruiting and retaining nursing faculty. (4) Streamlining the clinical placement process and thereby increasing clinical placement opportunities for both students and hospitals. (5) Enhancing financial assistance for nursing students and nurses choosing to become nursing faculty. (6) Providing additional resources to community colleges to reduce program attrition. (7) Creating a statewide health workforce database to monitor workforce supply and demand issues and educational capacity to meet workforce needs. SEC. 2. Article 10 (commencing with Section 33430) is added to Chapter 3 of Part 20 of the Education Code, to read: Article 10. Health Science and Medical Technology Project 33430. (a) This article establishes the Health Science and Medical Technology Project, administered by the State Department of Education to provide competitive grant funds to California public schools offering grades 7 to 12, inclusive, to enhance existing or establish new health-related career pathway programs. Programs eligible for funding include, but are not necessarily limited to, California partnership academies and regional occupational centers and programs, as well as other health science and medical technology pathway programs. Grant recipients shall, at a minimum, offer a coherent sequence of standards-based academic and Career Technical Education coursework in selected pathways that will result in higher levels of achievement, technical skills, and knowledge necessary for students to pursue a full range of health care employment at support, technical, or professional levels. (b) Funding provided for the purposes of this article shall be used for any of the following purposes: standards-based curriculum development, development of a sequence of courses in selected pathways, program articulation in grades 7 to 14, inclusive, material and equipment, student support, work-based learning experiences, and professional development. 33431. The State Department of Education shall report to the Legislature and the Governor on the efficacy of the project established under this article on or before January 1, 2012. 33432. This article shall remain in effect only until January 1, 2014, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2014, deletes or extends that date. SEC. 3. The heading of Article 5.3 (commencing with Section 69616) of Chapter 2 of Part 42 of the Education Code, as amended and renumbered by Section 21 of Chapter 79 of the Statutes of 2006, is repealed. SEC. 4. Section 69616 of the Education Code, as amended by Section 22 of Chapter 79 of the Statutes of 2006, is amended and renumbered to read: 70100. (a) The Legislature hereby recognizes the growing need for new faculty members in the nursing field at California's colleges and universities. This need will be fueled largely by the large number of current faculty approaching retirement age who will need to be replaced and the expected growth in enrollment demand in California. Further, to increase the supply of nurses in California, there must be an expansion of nursing educator opportunities in public colleges and universities that will produce the necessary faculty to teach in nursing programs in the state. (b) The Legislature finds that the rising costs of higher education, coupled with a shift in available financial aid from scholarships and grants to loans, make loan repayment options an important consideration in a student's decision to pursue a graduate degree in nursing education or in a field related to nursing. (c) It is the intent of the Legislature that the State Nursing Assumption Program of Loans for Education (SNAPLE) be designed to encourage persons to complete their graduate educations and serve as nursing faculty in a registered nursing program at an accredited California college or university. (d) As used in this article, "commission" means the Student Aid Commission. SEC. 5. Section 69616.1 of the Education Code, as amended by Section 23 of Chapter 79 of the Statutes of 2006, is amended and renumbered to read: 70101. (a) Program participants shall meet all of the following eligibility criteria prior to selection into the program and shall continue to meet these criteria, as appropriate, during the payment periods: (1) The participant shall be a United States citizen or eligible noncitizen. (2) The participant shall be a California resident attending an eligible school or college. (3) The participant shall be making satisfactory academic progress. (4) The participant shall have complied with United States Selective Service requirements. (5) The participant shall not owe a refund on any state or federal educational grant or have delinquent or defaulted student loans. (b) Any person enrolled in an institution of postsecondary education and participating in the loan assumption program set forth in this article may be eligible to receive a conditional warrant for loan assumption, to be redeemed pursuant to this act upon becoming employed as a full-time nursing faculty member at a California college or university or the equivalent of full-time service as a nursing faculty member employed part time at one or more California colleges or universities. (c) (1) The commission shall award loan assumption agreements to undergraduate students with demonstrated academic ability and financial need, as determined by the commission pursuant to Article 1.5 (commencing with Section 69503) of Chapter 2, and to graduate students with demonstrated academic ability. (2) The applicant shall have completed a baccalaureate degree program or be enrolled in an academic program leading to a baccalaureate level or a graduate level degree. (3) The applicant shall be currently enrolled in or admitted to a program in which he or she will be enrolled on at least a half-time basis each academic term as defined by an eligible institution. The applicant shall agree to maintain satisfactory academic progress. (4) The applicant shall have been judged by his or her postsecondary institution to have outstanding ability on the basis of criteria that may include, but need not be limited to, any of the following: (A) Grade point average. (B) Test scores. (C) Faculty evaluations. (D) Interviews. (E) Other recommendations. (5) The applicant shall have received, or be approved to receive, a loan under one or more of the following designated loan programs: (A) The Federal Family Education Loan Program (20 U.S.C. Sec. 1071 et seq.). (B) The Federal Direct Loan Program. (C) Any loan program approved by the commission. (6) The applicant shall have agreed to teach nursing on a full-time basis at one or more accredited California colleges or universities for at least three years, or on a part-time basis for the equivalent of three full-time academic years, commencing not more than 12 months after obtaining an academic degree, unless the applicant, within 12 months after obtaining the academic degree, enrolls in an academic degree program leading to a more advanced degree in nursing or a field related to nursing. (7) An applicant who teaches on less than a full-time basis may participate in the program, but is not eligible for loan repayment until that person teaches for the equivalent of a full-time academic year. (d) A person participating in the program pursuant to this section shall not receive more than one loan assumption agreement, and shall not be eligible to receive a grant pursuant to Article 3.51 (commencing with Section 78260) of Chapter 2 of Part 48. SEC. 6. Section 69616.2 of the Education Code, as amended by Section 24 of Chapter 79 of the Statutes of 2006, is amended and renumbered to read: 70102. The commission shall commence loan assumption payments pursuant to this article upon verification that the applicant has fulfilled all of the following: (a) The applicant has received a baccalaureate degree or a graduate degree from an accredited, participating institution. (b) The applicant has provided the equivalent of full-time nursing instruction at one or more regionally accredited California colleges or universities for one academic year or the equivalent. (c) The applicant has met the requirements of the loan assumption agreement and all other conditions of this article. SEC. 7. Section 69616.3 of the Education Code, as amended by Section 25 of Chapter 79 of the Statutes of 2006, is amended and renumbered to read: 70103. The terms of the loan assumptions granted under this article shall be as follows, subject to the specific terms of each loan assumption agreement: (a) After a program participant has completed one academic year, or the equivalent of full-time teaching nursing studies, at one or more regionally accredited, eligible California colleges or universities, the commission shall assume up to eight thousand three hundred thirty-three dollars ($8,333) of the outstanding liability of the participant under one or more of the designated loan programs. (b) After the program participant has completed two consecutive academic years, or the equivalent of full-time teaching, at one or more regionally accredited California colleges or universities, the commission shall assume up to an additional eight thousand three hundred thirty-three dollars ($8,333) of the outstanding liability of the participant under one or more of the designated loan programs, for a total loan assumption of up to sixteen thousand six hundred sixty-six dollars ($16,666). (c) After a program participant has completed three consecutive academic years, or the equivalent of full-time teaching, at one or more regionally accredited California colleges or universities, the commission shall assume up to an additional eight thousand three hundred thirty-four dollars ($8,334) of the outstanding liability of the participant under one or more of the designated loan programs, for a total loan assumption of up to twenty-five thousand dollars ($25,000). (d) The commission may assume liability for loans received by the program participant to pay for the costs of obtaining the program participant's undergraduate and graduate degrees. (e) The term of the loan assumption agreement shall be not more than 10 years from the date on which the agreement was executed by the program participant and the commission. SEC. 8. Section 69616.4 of the Education Code, as amended by Section 26 of Chapter 79 of the Statutes of 2006, is amended and renumbered to read: 70104. (a) Except as provided in subdivision (b), if a program participant fails to complete a minimum of three academic years of teaching on a full-time basis or the equivalent on a part-time basis, as required by this article under the terms of the agreement pursuant to paragraph (6) of subdivision (c) of Section 70101, the loan assumption agreement is no longer effective and shall be deemed terminated, and the commission shall not make any further payments. The participant shall resume responsibility for any remaining loan obligations, but shall not be required to repay any loan payments previously made through this program. (b) Notwithstanding subdivision (a), if a program participant becomes unable to complete one of the three years of teaching service on a full-time basis, or the equivalent on a part-time basis, due to a serious illness, pregnancy, or other natural causes, the term of the loan assumption agreement shall be extended for a period not to exceed one academic year. The commission shall make no further payments under the loan assumption agreement until the applicable teaching requirements specified in Section 70103 have been satisfied. (c) If a natural disaster prevents a program participant from completing one of the required years of teaching service due to the interruption of instruction at the employing accredited California college or university, the term of the loan assumption agreement shall be extended for the period of time equal to the period from the interruption of instruction at the employing accredited California college or university to the resumption of instruction. The commission shall make no further payments under the loan assumption agreement until the applicable teaching requirements specified in Section 70103 have been satisfied. SEC. 9. Section 69616.5 of the Education Code, as amended by Section 27 of Chapter 79 of the Statutes of 2006, is amended and renumbered to read: 70105. (a) The commission shall accept nominations from accredited colleges and universities made pursuant to this article. (b) The commission shall choose from among those nominations of undergraduate students deemed financially needy with outstanding student loans pursuant to Article 1.5 (commencing with Section 69503), and of graduate students with outstanding student loans, based upon criteria that may include, but are not necessarily limited to, all of the following: (1) Grades at the undergraduate level in a subject field related to nursing. (2) Grades in the undergraduate program. (3) Aptitude for graduate work in the field of nursing. (4) General aptitude for graduate study. (5) Critical human resource needs. (c) The commission may develop additional criteria for the selection of award recipients consistent with the purposes of this article. SEC. 10. Section 69616.6 of the Education Code is amended and renumbered to read: 70106. The commission shall administer this article, and shall adopt rules and regulations for that purpose. The rules and regulations shall include, but need not be limited to, provisions regarding the period of time for which a warrant shall remain valid and the development of projections for funding purposes. In developing these rules and regulations, the commission shall solicit the advice of representatives from postsecondary education institutions, the Office of Statewide Health Planning and Development, and the nursing community. SEC. 11. Section 69616.7 of the Education Code is amended and renumbered to read: 70107. The commission shall work to develop a streamlined application process for participation in the program set forth in this article. SEC. 12. Section 69616.8 of the Education Code is amended and renumbered to read: 70108. The commission shall report annually to the Legislature on this program. The report shall include, but not be limited to, all of the following: (a) The total number of loan assumption agreements offered, by education level and institution. (b) The number of loan assumption agreements paid out, by education level and institution. (c) The number of loan assumption agreements that are redeemed, by year of service (year one through year three). (d) The annual and cumulative attrition rate of participants, by education level and institution. SEC. 13. Section 69616.9 of the Education Code is amended and renumbered to read: 70109. Notwithstanding any other law, in any fiscal year, the commission shall award no more than the number of warrants that are authorized by the Governor and the Legislature in the annual Budget Act for that year for the assumption of loans pursuant to this article. SEC. 14. Section 69617 of the Education Code is amended and renumbered to read: 70110. It is the intent of the Legislature that, commencing with the 2006-07 fiscal year, funding necessary for the administration of the student loan assumption program implemented pursuant to this article shall be included within the annual budget of the commission. SEC. 15. The heading of Chapter 3 (commencing with Section 70100) is added to Part 42 of the Education Code, to read: CHAPTER 3. State Nursing Assumption Program of Loans for Education (SNAPLE) SEC. 16. The heading of Article 1 (commencing with Section 70100) is added to Chapter 3 of Part 42 of the Education Code, to read: Article 1. Nursing Faculty SEC. 17. Article 2 (commencing with Section 70120) is added to Chapter 2 of Part 42 of the Education Code, to read: Article 2. Employees of State Facilities 70120. (a) (1) Any person enrolled in an eligible institution, or any person who agrees to work full time as a registered nurse in a state-operated 24-hour facility that employs registered nurses, may be eligible to enter into an agreement for loan assumption, to be redeemed pursuant to Section 70122 upon becoming employed as a clinical registered nurse in a state-operated 24-hour facility that employs registered nurses and that has a clinical registered nurse vacancy rate of greater than 10 percent as reported annually to the commission by the Department of Personnel Administration pursuant to Section 70121. In order to be eligible to enter into an agreement for loan assumption, an applicant shall satisfy all of the conditions specified in subdivision (b). (2) As used in this article, "eligible institution" means a postsecondary institution that is determined by the Student Aid Commission to meet both of the following requirements: (A) The institution is eligible to participate in state and federal financial aid programs. (B) The institution maintains an accredited program of professional preparation for licensing as a registered nurse in California. (3) As used in this article, "state-operated 24-hour facility" includes, but is not necessarily limited to, a state-operated prison, psychiatric hospital, or veterans' home. (b) (1) The applicant has been admitted to, or is enrolled in, an accredited program of professional preparation for licensing as a registered nurse in California. (2) The applicant is currently enrolled, or has been admitted to a program in which he or she will be enrolled, on a full-time basis, as determined by the participating institution. The applicant shall agree to maintain satisfactory academic progress and a minimum of full-time enrollment, as defined by the participating eligible institution. (3) The applicant has been judged by his or her postsecondary institution to have outstanding ability on the basis of criteria that may include, but need not be limited to, any of the following: (A) Grade point average. (B) Test scores. (C) Faculty evaluations. (D) Interviews. (E) Other recommendations. (4) The applicant has received, or is approved to receive, a loan under one or more of the following designated loan programs: (A) The Federal Family Education Loan Program (20 U.S.C. Sec. 1071 et seq.). (B) Any loan program approved by the Student Aid Commission. (5) The applicant has agreed to work full time for at least four consecutive years as a clinical registered nurse in a state-operated 24-hour facility that employs registered nurses and that has a clinical registered nurse vacancy rate of greater than 10 percent as reported annually to the commission by the Department of Personnel Administration. (c) No applicant who has completed fewer than 60 semester units, or the equivalent, shall be eligible under this section to participate in the loan assumption program set forth in this article. (d) An agreement shall remain valid even if the state-operated facility at which the applicant is employed ceases to be listed pursuant to Section 70121 after the applicant is employed there. (e) A person participating in the program pursuant to this section shall not enter into more than one agreement. 70121. On or before January 31, 2007, and each January 31 thereafter until, and including, January 31, 2012, the Department of Personnel Administration shall provide the commission with a list including each state-operated 24-hour facility that employs registered nurses where, as of the immediately preceding January 1, there is a vacancy rate in clinical registered nurse positions that exceeds 10 percent. 70122. The commission shall commence loan assumption payments, as specified in Section 70123, upon verification that the applicant has fulfilled all of the following: (a) The applicant has become a registered nurse licensed to practice in California. (b) The applicant is working full time as a clinical registered nurse in a state-operated 24-hour facility that employs registered nurses and that, at the time the applicant commenced employment there, had a clinical registered nurse vacancy rate of greater than 10 percent as reported, pursuant to Section 70121, by the Department of Personnel Administration in its most recent annual report to the commission. (c) The applicant has met the requirements of the agreement and all other pertinent conditions of this article. 70123. The terms of a loan assumption granted under this article shall be as follows, subject to the specific terms of each agreement: (a) After a program participant has completed one year of full-time employment as described in subdivision (b) of Section 70122, the commission shall assume up to five thousand dollars ($5,000) of the participant's outstanding liability under one or more of the designated loan programs. (b) After a program participant has completed two years of full-time employment as described in subdivision (b) of Section 70122, the commission shall assume up to an additional five thousand dollars ($5,000) of the participant's outstanding liability under one or more of the designated loan programs, for a total loan assumption of up to ten thousand dollars ($10,000). (c) After a program participant has completed three years of full-time employment as described in subdivision (b) of Section 70122, the commission shall assume up to an additional five thousand dollars ($5,000) of the participant's outstanding liability under one or more of the designated loan programs, for a total loan assumption of up to fifteen thousand dollars ($15,000). (d) After a program participant has completed four years of full-time employment as described in subdivision (b) of Section 70122, the commission shall assume up to an additional five thousand dollars ($5,000) of the participant's outstanding liability under one or more of the designated loan programs, for a total loan assumption of up to twenty thousand dollars ($20,000). 70124. (a) Except as provided in subdivision (b), if a program participant fails to complete a minimum of four consecutive years of full-time employment as required by this article, under the terms of the agreement pursuant to paragraph (5) of subdivision (b) of Section 70120, the participant shall assume full liability for all student loan obligations remaining after the commission's assumption of loan liability for the last year of qualifying clinical registered nursing service pursuant to Section 70123. (b) Notwithstanding subdivision (a), if a program participant becomes unable to complete one of the four consecutive years of qualifying clinical registered nursing service due to serious illness, pregnancy, or other natural causes, the term of the loan assumption agreement shall be extended for a period not to exceed one year. The commission shall make no further payments under the loan assumption agreement until the applicable work requirements as specified in Section 70122 have been satisfied. (c) If a natural disaster prevents a program participant from completing one of the required years of work due to the interruption of employment at the employing state facility, the term of the loan assumption agreement shall be extended for the period of time equal to the period from the interruption of employment at the employing state facility to the resumption of instruction. The commission shall make no further payments under the loan assumption agreement until the applicable teaching requirements specified in Section 70103 have been satisfied. 70125. The commission shall administer this article, and shall adopt rules and regulations for that purpose. The rules and regulations shall include, but need not be limited to, provisions regarding the period of time during which an agreement shall remain valid, the reallocation of resources in light of agreements that are not utilized by program participants, the failure, for any reason, of a program participant to complete a minimum of four consecutive years of qualifying clinical registered nursing service, and the development of projections for funding purposes. 70126. On or before January 31, 2008, and on or before each January 31 thereafter until, and including, January 31, 2012, the commission shall report annually to the Legislature regarding both of the following, on the basis of sex, age, and ethnicity: (a) The total number of program participants and the type of program of professional preparation they are attending or have attended. (b) The numbers of participants who complete one, two, three, or four years of qualifying clinical registered nursing service, respectively. 70127. On or before May 1, 2011, the Office of the Legislative Analyst shall submit a report to the Legislature that includes the findings and recommendations of the Legislative Analyst with respect to the efficacy of the program established by this article. 70128. In selecting applicants for participation in this program, the commission shall grant priority to applicants who, in the determination of the commission, are included in any of the following categories: (a) Persons who possess a baccalaureate degree at the time of initial application. (b) Persons who are enrolled in an accelerated program of professional preparation for licensing as a registered nurse in California. (c) Persons who are recipients of federally subsidized student loans or other need-based student loans. 70129. This article shall become inoperative on July 1, 2012, and, as of January 1, 2013, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2013, deletes or extends the dates on which it becomes inoperative and is repealed. SEC. 18. Article 3.51 (commencing with Section 78260) is added to Chapter 2 of Part 48 of the Education Code, to read: Article 3.51. Nursing Faculty 78260. (a) (1) In order to further the state's interests in a major expansion in the number of educated nurses in California, the Legislature finds that it is necessary to ensure a significant expansion in the number of qualified nursing faculty at California Community Colleges. Therefore, the Legislature hereby creates the California Community Colleges Nursing Faculty Recruitment and Retention Program in the Chancellor's Office of the California Community Colleges for purposes of facilitating the recruitment and retention of qualified nursing faculty. The Chancellor of the California Community Colleges shall allocate funds on a competitive grant basis to community college districts that commit to sustained increases in the number of full-time equivalent students taught in the district's nursing programs, as specified by the chancellor, and that also commit to the terms and conditions specified in this section. (2) It is the intent of the Legislature that the grants awarded under this article should be one-time grants and that the total amount of the funding for this article in any fiscal year should be limited to the amount appropriated for that purpose in the annual Budget Act. The Legislature finds and declares that the initial funding for this article is the appropriation contained in paragraph (30) of subdivision (a) of Section 43 of Chapter 79 of the Statutes of 2006. (b) (1) (A) The grant amount to each participating district shall be based on the number of full-time faculty at the district who are in their first through fifth year of service as an instructor in a California Community College registered nursing program in the fiscal year for which funds are disbursed. Notwithstanding any other provision of law, a community college district that receives an allocation for the making of grants under this article shall have up to five years to disburse these funds. (B) Except as provided in paragraph (3), the amount granted to any person under this article shall not exceed a total of twenty thousand dollars ($20,000) disbursed over a five-year period with a maximum of six thousand dollars ($6,000) in any one year. (2) Disbursements under this section shall be based on the following schedule: (A) Six thousand dollars ($6,000) for each instructor in his or her first year. (B) Five thousand dollars ($5,000) for each instructor in his or her second year. (C) Four thousand dollars ($4,000) for each instructor in his or her third year. (D) Three thousand dollars ($3,000) for each instructor in his or her fourth year. (E) Two thousand dollars ($2,000) for each instructor in his or her fifth year. (3) Notwithstanding the amounts listed in paragraph (2), the amount granted to a person under this article may be supplemented, in any year of the five-year cycle of disbursements under paragraph (2), by up to one thousand dollars ($1,000) in local matching funds, plus an equal amount of funds disbursed pursuant to this program. (4) A person who receives a grant under this article shall not be eligible for participation in the State Nursing Assumption Program of Loans for Education Chapter 3 (commencing with Section 70100) of Part 42. (c) Each district is authorized, through its shared governance and collective bargaining relationships, to allocate actual payments to faculty in their first through fifth years of service as a nursing instructor on a different basis if the district finds that its ability to recruit and retain nursing faculty is thereby enhanced. (d) Each district may use a portion of the grant proceeds to offer incentives to either full-time or part-time nursing instructors for the purpose of instruction in clinical settings during weekends and evenings. This subdivision shall not construed to be limited to faculty in their first through fifth years of service as nursing instructors. (e) As a condition of receiving grant funds under this article, each district agrees to provide the chancellor with all data requested by the chancellor on the expenditure of funds and program outcomes. (f) The chancellor shall report annually by March 1 to the Legislature and the Governor on program expenditures and outcomes by participating district and college. SEC. 19. Article 3.52 (commencing with Section 78261) is added to Chapter 2 of Part 48 of the Education Code, to read: Article 3.52. Nursing Students 78261. (a) The Legislature finds and declares both of the following: (1) The Legislature intends to facilitate both the expansion of associate degree nursing programs and the improvement in completion rates in those programs. (2) The Legislature also intends that community colleges employ nationally validated diagnostic assessment tools that are aligned with national nursing certification requirements. Both students and the state benefit when diagnostic assessments are supplemented with educational opportunities to assist students in meeting skill levels. (b) It is the intent of the Legislature to create a Nursing Enrollment Growth and Retention program in the Chancellor's Office of the California Community Colleges. The purpose of this program shall be to provide grants to community college associate degree of nursing programs that meet either of the following conditions: (1) The nursing program has low or moderate program attrition levels. (2) The nursing program provides a comprehensive program of diagnostic assessment, prenursing preparation, and program-based support to students. (c) It is the intent of the Legislature that this program shall be funded, beginning in the 2006-07 fiscal year, by a redirection of the ten million dollars ($10,000,000) provided annually pursuant to the Budget Act of 2005, along with an additional investment of two million eight hundred eighty-six thousand dollars ($2,886,000) annually, for a total program budget of twelve million eight hundred eighty-six thousand dollars ($12,886,000) annually. Unencumbered funds that were appropriated in the Budget Act of 2005 may be used for capacity building and equipment in the 2006 -07 fiscal year. (d) The Board of Governors of the California Community Colleges and the Chancellor of the California Community Colleges may award grants to community college districts with associate degree nursing programs to expand enrollment, reduce program attrition, or both. Funds shall be used only for the following purposes: expanding enrollment, providing diagnostic assessments, and developing and offering preentry coursework to prospective nursing students and diagnostic assessments and supportive services to enrolled nursing students. For purposes of this section, supportive services include, but are not necessarily limited to, tutoring, case management, mentoring, and counseling services. Funds may also be used to develop alternative delivery models such as part-time, evening, weekend, and summer program offerings. In order to qualify for these funds, a community college associate degree nursing program shall do either of the following: (1) Have a program attrition rate, as determined by the Board of Registered Nursing's Annual School Report or the Information Program Data System of the Chancellor's Office of the California Community Colleges, of 15 percent or less for the year prior to application for funding. (2) Commit to implement a comprehensive program of diagnostic assessment, prenursing enrollment preparation, and program-based support to enrolled students, as defined in this article. (e) Prior to awarding any funds to be used for reducing program attrition, the chancellor's office shall do all of the following: (1) Identify, in collaboration with community college associate degree nursing programs, nationally validated diagnostic assessment tools that determine the likelihood of academic success in registered nursing education programs. (2) Establish, in collaboration with community college associate degree nursing programs, the systemwide proficiency level necessary for academic success for each diagnostic assessment tool. (3) Define the kinds of educational and support services that qualify for funding under this program. (f) As a condition of receiving grants under paragraph (2) of subdivision (d), a community college district shall, at a minimum, do all of the following: (1) Utilize diagnostic assessment tools prior to enrollment to determine readiness for community college associate degree nursing programs. (2) Develop educational preentry coursework, including, but not necessarily limited to, tutorials or noncredit instruction, aligned to the entry level nursing standards and curriculum for students who fail to demonstrate readiness based upon the diagnostic assessment tools. (3) Provide access to prenursing coursework for all students who do not demonstrate readiness based upon the diagnostic assessment tools. (4) Require that students demonstrate readiness through the diagnostic assessment or successful completion of the prenursing coursework specified above prior to commencing the registered nursing program. (5) Ensure that students that participate in educational preentry coursework in order to demonstrate readiness based upon the diagnostic assessment tools are not disadvantaged in the program enrollment process. (g) As a condition of receiving grant funds pursuant to paragraph (2) of subdivision (d), each recipient district shall report to the chancellor's office the following data for the academic year on or before a date determined by the chancellor's office: (1) The number of students enrolled in the nursing program. (2) The number of students taking diagnostic assessments. (3) The number of students failing to meet proficiency levels as determined by diagnostic assessment tools. (4) The number of students failing to meet proficiency levels that enroll in preentry preparation classes. (5) The number of students who successfully complete preentry preparation classes. (6) The average number of months between initial diagnostic assessment, demonstration of readiness, and enrollment in the nursing program for students failing to meet proficiency standards on the initial diagnostic assessment. (7) The average number of months between diagnostic assessment and program enrollment for students meeting proficiency standards on the initial diagnostic assessment. (8) The number of students who completed the associate degree nursing program and the number of students who pass the National Council Licensure Examination (NCLEX). (h) (1) Data reported to the chancellor under this article shall be disaggregated by age, gender, ethnicity, and language spoken at home. (2) The chancellor's office shall compile and provide this information to the Legislature and the Governor by March 1 of each year. (i) It is the intent of the Legislature that, pursuant to funding to be provided in the annual Budget Act, in the 2009-10 academic year, the California Community Colleges should increase the statewide enrollment of full-time equivalent registered nursing students by 450 and, beginning in the 2010-11 academic year and continuing each academic year thereafter, add 900 new full-time equivalent registered nursing students. SEC. 20. Article 3.53 (commencing with Section 78262) is added to Chapter 2 of Part 48 of the Education Code, to read: Article 3.53. Nursing Resource Centers 78262. (a) The Chancellor's Office of the California Community Colleges shall fund the development of regional nursing resource centers that bring together school, hospital, and faculty needs and availability in a regionalized, online format to help schools match their student clinical needs to available openings, assist hospitals to manage their clinical rotation schedules, and facilitate the filling of vacant nursing faculty positions. (b) The chancellor's office shall fund regional nursing resource center startup grants to develop clinical placement and clinical faculty resource systems. Each startup grant shall last for no more than 30 months. An applicant for a grant under this article shall do all of the following: (1) Select an entity for managing the grant. (2) Ensure the participation of at least 75 percent of the nursing programs and hospitals in the coverage area. (3) Provide matching funds on a 1:1 basis. (4) Demonstrate the sustainability of the system after the grant terminates. (c) The chancellor's office shall be responsible for developing a request for funding application from hospital and school regional partnerships seeking grant funds and providing technical assistance to communities for the purpose of developing proposals. SEC. 21. Section 87482 of the Education Code is amended to read: 87482. (a) (1) Notwithstanding Section 87480, the governing board of a community college district may employ any qualified individual as a temporary faculty member for a complete school year but not less than a complete semester or quarter during a school year. The employment of those persons shall be based upon the need for additional faculty during a particular semester or quarter because of the higher enrollment of students during that semester or quarter as compared to the other semester or quarter in the academic year, or because a faculty member has been granted leave for a semester, quarter, or year, or is experiencing long-term illness, and shall be limited, in number of persons so employed, to that need, as determined by the governing board. (2) Employment of a person under this subdivision may be pursuant to contract fixing a salary for the entire semester or quarter. (b) No person, other than a person serving as clinical nursing faculty and exempted from this subdivision pursuant to subdivision (c), shall be employed by any one district under this section for more than two semesters or three quarters within any period of three consecutive years. (c) (1) Notwithstanding subdivision (b), a person serving as clinical nursing faculty may be employed by any one district under this section for up to four semesters or six quarters within any period of three consecutive academic years between July 1, 2007, and June 30, 2014, inclusive. (2) A district that employs faculty pursuant to this subdivision shall provide data to the chancellor's office as to how many faculty members were hired under this subdivision, and what the ratio of full-time to part-time faculty was for each of the three academic years prior to the hiring of faculty under this subdivision and for each academic year for which faculty is hired under this subdivision. This data shall be submitted, in writing, to the chancellor's office on or before June 30, 2012. (3) The chancellor shall report, in writing, to the Legislature and the Governor on or before September 30, 2012, in accordance with data received pursuant to paragraph (2), how many districts hired faculty under this subdivision, how many faculty members were hired under this subdivision, and what the ratio of full-time to part-time faculty was for these districts in each of the three academic years prior to the operation of this subdivision and for each academic year for which faculty is hired under this subdivision. (4) A district may not employ a person pursuant to this subdivision if the hiring of that person results in an increase in the ratio of part-time to full-time nursing faculty in that district. SEC. 22. Article 7.7 (commencing with Section 89267) is added to Chapter 2 of Part 55 of the Education Code, to read: Article 7.7. Baccalaureate Degree Nursing Programs 89267. It is the intent of the Legislature: (a) That, pursuant to funding to be appropriated in the Budget Act of 2007, the trustees should increase, by at least 340, the number of full-time equivalent students in baccalaureate degree nursing programs, beginning in the 2007 -08 fiscal year. (b) That the trustees provide a report to the Governor and the Legislature on or before March 15, 2007, on the proposed expenditure plans to expand nursing programs to enroll an additional 340 full-time equivalent students as a result of the funds appropriated in the Budget Act of 2007. (c) To support the expansion of future baccalaureate degree nursing enrollment with annual appropriations in the State Budget Act. SEC. 23. Article 5.5 (commencing with Section 92645) is added to Chapter 6 of Part 57 of the Education Code, to read: Article 5.5. Baccalaureate and Master's Degree Nursing Programs 92645. It is the intent of the Legislature that all of the following occur: (a) That, pursuant to funding to be appropriated in the Budget Act of 2007, the Regents of the University of California should offer at least 175 full-time equivalent students in baccalaureate degree nursing programs, at least 140 state-supported full-time equivalent students in accelerated master's level nursing programs, including entry-level master's programs and entry-level master's clinical programs, at least 41 full-time equivalent associate degree nursing (ADN) transitional to bachelor's of science of nursing (BSN) and full-time equivalent master of science of nursing (MSN) students, and at least 40 full-time equivalent students in traditional master of science in nursing (MSN) degree programs by the 2007-08 academic year. (b) That the regents provide a report to the Governor and the Legislature on or before March 15, 2007, on the proposed expenditure plans to expand nursing programs to enroll the additional students identified in subdivision (a). (c) That the expansion of future baccalaureate, accelerated master' s degree, ADN transitional to BSN and MSN degrees, and traditional MSN degree nursing enrollment be supported with appropriations in the annual Budget Act.