BILL ANALYSIS                                                                                                                                                                                                    






                          SENATE COMMITTEE ON EDUCATION
                               Gloria Romero, Chair
                            2009-2010 Regular Session
                                         

          BILL NO:       AB 2385   
          AUTHOR:        John A. Perez
          INTRODUCED:    June 1, 2010
          FISCAL COMM:   Yes            HEARING DATE:  June 30, 2010
          URGENCY:       No             CONSULTANT:Daniel Alvarez

           SUBJECT  :    California Community College Nursing and Allied  
          Health  
                    Pilot Programs

           KEY POLICY ISSUES

           Should the California Community Colleges (CCCs) Chancellor  
          administer a pilot program to encourage up to five campuses  
          statewide to develop innovative nursing and allied health  
          programs?

          Should the CCCs be authorized to charge supplemental fees -  
          an amount in excess of the per-unit amount prescribed in  
          statute -- to students opting to enroll in innovative nursing  
          and allied health programs under the pilot program  
          established by this bill? 


           SUMMARY   

          This bill establishes the Pilot Program for Innovative  
          Nursing and Allied Health Care Profession Education at the  
          California Community Colleges to be administered by the CCC  
          Chancellor's Office.  Under this program, up to five campuses  
          would be selected by the CCC Chancellor to offer pilot  
          programs that test innovative delivery models and expand  
          student capacity in health care occupations for which there  
          is a substantial labor market demand.  Funding for these  
          pilot programs is intended to come from a combination of  
          sources including state apportionments, student fees  
          including supplemental fees authorized by this bill, federal  
          funds and private funds.  This pilot program would sunset on  
          January 1, 2018.

           BACKGROUND  




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          The CCCs provide instruction to about 1.5 million students at  
          109 colleges operated by 72 locally governed districts  
          throughout the state.  The system offers academic and  
          occupational programs at the lower division (freshman and  
          sophomore) level, as well as recreational courses and  
          precollegiate basic skills instruction.  The CCCs offer a  
          broad range of degrees, certificates, courses and transfer  
          majors including those in nursing and the allied health  
          professions (e.g. dental hygiene, dental assisting, medical  
          assistant, occupational therapy assistant, physical therapy  
          assistant, pharmacy technical, and sonography).  In addition,  
          many colleges have established programs intended to promote  
          regional economic development.  Current law requires CCCs to  
          charge each student a fee of $26 per unit effective with the  
          fall term of the 2009-10 academic year. (EC  70900; EC   
          76300)

           ANALYSIS  

           This bill  establishes a seven-year pilot program to be  
          administered by the CCC Chancellor's Office to encourage up  
          to five CCCs to establish innovative programs in areas which  
          prepare students for health occupations for which there is a  
          substantial labor market demand.  Specifically, the bill:

          1)   Requires the CCC Chancellor to:

               a)        Develop, contingent upon obtaining resources,  
                    a "request for application" (RFA) for CCCs to apply  
                    to participate on or after the 2011-12 academic  
                    year in this pilot program.  The RFA would be  
                    developed in collaboration with representatives  
                    from education, labor, business, licensing and  
                    credentialing entities and other appropriate  
                    entities.

               b)        Select up to five campuses, ideally  
                    geographically distributed throughout the state, to  
                    participate in the pilot program.  Existing  
                    innovative programs currently underway that require  
                    additional resources "to move to scale" would be  
                    eligible to apply.  

               c)        Pursue funding to help support the development  
                    and delivery of the pilot program including but not  




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                    limited to federal funds, private funds, employer  
                    contributions and state and federal workforce  
                    funds.

               d)        Collect data, evaluate the program and present  
                    findings and recommendations to the Legislature by  
                    January 1, 2017.

          2)   Requires participating campuses to:

               a)        Provide certificated training in health care  
                    fields for which there is a demonstrated labor  
                    shortage and documented demand from employers.

               b)        Demonstrate limited capacity or the need to  
                    sustain or expand existing innovative programs.

               c)        Provide evidence of sufficient clinical sites.

               d)        Include high-quality curriculum delivery  
                    models.

               e)        Have flexible delivery models (e.g. on-line or  
                    distance learning; and intensive week-end, evening,  
                    or summer courses.)


               f)        Enhance student success by providing student  
                    support services to students in the pilot program  
                    including but not limited to advisers, tutors,  
                    mentors, financial assistance and internship  
                    assistance.

               g)        Identify funding resources to support the  
                    pilot program, as specified.

          3)   Authorizes participating campuses when selecting  
               students for admission to the pilot program to use the  
               diagnostic assessments and multicriteria screening  
               assessments authorized under current law for admission  
               to CCC nursing programs.  (EC  78261 and EC  78261.5)

          4)   Authorizes participating campuses to collect  
               supplemental student fees from students in the program  
               to support the program.  Such fees would have to be  
               based on a fee schedule approved by the CCC Chancellor  




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               at the time the campus applies to participate in the  
               pilot program.  The bill specifies that any such fees  
               could not offset state apportionment funding, and part  
               or all of any CCC supplemental fee may be covered by  
               student financial aid for eligible students.

          5)   States legislative intent that the pilot program be  
               funded with a combination of state apportionment  
               funding, student fees, federal funds and private funds.

          6)   Includes a variety of findings and declarations.

          7)   Becomes inoperative on July 1, 2017, and sunsets on  
               January 1, 2018.

           STAFF COMMENTS  

           1)   Need for the bill  .  According to the author, the CCC  
               system offers educational programs in a variety of  
               allied health care professions and prepares  
               approximately 70% of California's registered nurses.   
               These are among the most costly CCC programs, which, in  
               recent years have been subjected to budget cuts.   
               Colleges have thus been forced to limit enrollment and  
               are struggling to keep pace with program demand.

           2)   Supplemental fee authority.    Perhaps the most  
               significant feature of this bill is that it allows up to  
               five CCCs for a limited period of time to charge higher  
               student fees for enrollment in certain programs.  Does  
               it make sense to have higher student fees, particularly  
               for higher cost programs and/or those with strong  
               student demand and strong labor market demand?  There  
               currently exist a wide variety of differential fees  
               within California's public and private higher education  
               institutions.

          For example, a student admitted in 2009-10 to a California  
               State University (CSU) School of Nursing to pursue a  
               Bachelor's of Science Degree in Nursing (BSN) would pay  
               student fees of approximately $5,000 per year for each  
               of two years whereas this same student pursuing a BSN at  
               the University of California (UC) would pay an estimated  
               $10,000. An identical student pursing a BSN at Samuel  
               Merritt University in Oakland would pay approximately  
               $35,000 per year.  A student pursuing an Associate  




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               Degree of Nursing at a CCC in 2010-11 is expected to pay  
               $26 per unit.  Part-time nursing students at Samuel  
               Merritt University pay $1,504 per unit.

          UC currently charges special fee rates for 12 professional  
               programs including nursing, medicine and pharmacy.   
               These special fees are substantially higher that the  
               fees paid by students in other programs.

          In addition, both UC and CSU have accredited extension  
               programs through which students (matriculated and  
               nonmatriculated) may take credit courses; extension  
               course fees are substantially higher than university  
               fees as there is no state subsidy and students must pay  
               the full cost of delivering the course.  In one advanced  
               degree nursing program offered by UC, students pay a  
               higher fee for a portion of the program offered through  
               extension, and then have their fees reduced when they  
               transition to the portion of the program offered through  
               the campus (and which is state subsidized.)  Students in  
               a nearly identical program at a different UC campus pay  
               the state-subsidized fee level throughout the entire  
               program.
           
          Staff notes that the author requests the bill be amended to   
               (1) strike all language authorizing participating CCCs  
               to impose a supplemental fee on students, and (2) expand  
               the ability of a pilot program to be funded in  
               combination with various sources including employer  
               based partnerships.

           3)   Developing the request for application (RFA)  .  This bill  
               requires the CCC Chancellor to develop an RFA for the  
               pilot program in collaboration with various entities,  
               including "business."  Would it be more appropriate to  
               include other entities with a greater nexus to the  
               provision of health care or health-care related  
               education as part of this collaboration? 

               Staff recommends amendments to strike "business" and  
               include "hospitals and nursing organizations, and health  
               care employers."  The author also requests the inclusion  
               of "regional occupational centers and programs."  
                
           4)   Selection Criteria for a pilot college  .  Section 2 of  
               the bill [EC  78265 (f))] requires a participating CCC,  




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               among other things, to "include high quality curriculum  
               delivery models."  Though innovation is critical,  
               curriculum standards determined by state licensing  
               entities may be inadvertently modified in order to  
               adhere to requirements of the pilot program approach.  
           
                Staff recommends amendments to clarify that pilot  
               programs shall not alter clinical units or hours  
               determined by the appropriate state licensing entities  
               that oversee each particular health occupation and that  
               existing approved curriculum is deemed to satisfy this.   
                

           5)   Evaluation.  The bill requires that the CCC Chancellor  
               conduct and submit an evaluation of this pilot to the  
               Legislature by January 1, 2017, (six months prior to the  
               program becoming inoperative).  Does it make sense to  
               have the agency charged with administering the program  
               also responsible for conducting its evaluation?  Would  
               it make more sense to have the Legislative Analyst's  
               Office rather than the CCC Chancellor report to the  
               Legislature on the efficacy of this program?  
               Staff recommends an amendment that the Chancellor's  
               Office contract with an external evaluator to conduct an  
               independent evaluation.

           6)   Staff also recommends the following  technical/clarifying  
               amendments:

                     Page 6, line 12 [EC 78265 (f) (4)] delete:  
                 "Proposals utilizing online and distance learning  
                 courses" and, instead, insert: "All courses"

                     Page 6, line 16 [EC 78265 (f) (5)] delete "by"  
                 and, instead, insert: "including by not limited to"

                     Page 6, line 26 [EC 78265 (f) (8)] delete:  
                 "student financial aid"

           1)   Policy arguments.   
          
                        Proponents argue that the community colleges  
                    educate the majority of nurses in the state and are  
                    well positioned to implement changes to attract a  
                    diverse pool of candidates and address the state's  
                    pressing workforce shortages with a pilot program  




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                    that could be a cost-effective model for other  
                    healthcare education programs.

                        Opponents contend that the inclusion  
                    authorizing supplemental fees creates a situation  
                    where academically qualified students may be  
                    discriminated due to not having the means to pay  
                    additional expenses.  In addition, concerns that  
                    existing program and licensure requirements may be  
                    compromised in order to reduce time and increase  
                    capacity of the allied health care professions.

           SUPPORT
           
          Latino Coalition for a Healthy California
          California Postsecondary Education Commission

           OPPOSITION
           
          California Nurses Association
          Faculty Association of California Community Colleges
          American Nurses Association of California