BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 98
                                                                  Page  1

          Date of Hearing:   January 31, 2012

                            ASSEMBLY COMMITTEE ON BUDGET
                               Bob Blumenfield, Chair
             SB 98 (Committee on Budget and Fiscal Review) - As Amended:  
                                  January 26, 2012
           
          SUBJECT  :   Board of Registered Nursing

           SUMMARY  :   This bill restores the Board of Registered Nursing 
          until 2016.  Specifically,  this bill  :

          1)Restores the Board of Registered Nursing (BRN) and establishes 
            a new sunset date of January 1, 2016;

          2)Establishes the BRN within the Department of Consumer Affairs 
            (DCA);

          3)Re-establishes the terms of office for the nine members of the 
            BRN at four years, but with staggered initial appointments in 
            order to have staggered terms going forward, as follows:

             a)   Senate appointment - public member: 4 years
             b)   Assembly appointment - public member: 4 years

             c)   Governor's appointments:
             d)   #1 - public member: 1 year
             e)   #2 - public member: 5 years
             f)   #3 - RN #1: 2 years
             g)   #4 - RN #2: 3 years
             h)   #5 - nurse educator: 4 years
             i)   #6 and #7 - nurse administrator and advanced practice 
               nurse: Governor's choice on which one serves 2 years and 
               which one serves 3 years for their initial terms

          1)Ratifies the interagency agreement between the BRN and the 
            Director of Consumer Affairs;

          2)Provides for an interim executive officer until the board 
            appoints a permanent executive officer, and deems that interim 
            executive officer to be the same person who was serving as 
            executive officer before the board expired;

          3)Appropriates to the BRN unencumbered funds in the Board of 
            Registered Nursing Fund (Fund) that were appropriated to the 








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            BRN in the 2011 Budget Act and $1,000 from the Fund for the 
            purpose of administering the Nursing Practice Act.

           EXISTING LAW:

           1)Provides for the regulation of various health professions by 
            regulatory boards within the DCA. 

          2)Establishes the Nursing Practice Act, which provides for the 
            certification and regulation of registered nurses, nurse 
            practitioners, and advanced practice nurses by the BRN within 
            the DCA. 

          3)Establishes within the DCA, the Division of Investigation 
            (DOI), to investigate alleged misconduct by licensees of 
            boards.  Allows the Director of the DCA to employ such 
            investigators, inspectors, and deputies as are necessary to 
            investigate and prosecute all violations of any law.  States 
            Legislative intent that inspectors used by boards are not 
            required to be employees of the DOI, but may be either 
            employees or under contract to the boards.

          4)Provides that investigators of the DOI and the Medical Board 
            of California and Dental Board of California have the 
            authority of peace officers and that those entities are also 
            authorized to employ individuals who are not peace officers to 
            provide investigative services.

          5)(Repealed) Specified that the BRN consisted of nine members 
            and that as of January 1, 2012, the BRN would sunset (and be 
            repealed), unless a later enacted statute were to be enacted 
            prior to January 1, 2012.  This did not occur.  The BRN is 
            subject to review by the Legislature prior to its sunset date. 
             

          6)Specified that the provision, which provided for the 
            appointment of the Executive Officer for the BRN would be 
            repealed as of January 1, 2012, unless a later enacted statute 
            was enacted before January 1, 2012. 

           FISCAL EFFECT  :   Approximately $30 million (BRN Fund) annually 
          in regulatory costs will continue to be incurred as a result of 
          extending the sunset on the BRN.  The BRN is fully-funded with 
          fee revenue.









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           COMMENTS  :  The BRN is responsible for regulating the practice of 
          registered nurses (RNs) in California.  Currently, there are 
          almost 380,000 licensed RNs in California, with over 23,000 new 
          licenses issued annually, and more than 170,000 licenses renewed 
          annually.  The BRN also regulates interim permittees, i.e., 
          applicants who are pending licensure by examination, and 
          temporary licensees, i.e., out-of-state applicants who are 
          pending licensure by endorsement.  The interim permit allows the 
          applicant to practice while under the supervision of an RN while 
          awaiting examination results.  Similarly, the temporary license 
          enables the applicant to practice registered nursing pending a 
          final decision on the licensure application.  The BRN also 
          issues certificates to Clinical Nurse Specialists, Nurse 
          Anesthetists, Nurse Practitioners, Nurse-Midwives and Public 
          Health Nurses.  These titles are those most commonly used by the 
          California RNs and use of the titles is protected under the 
          Business and Professions Code.  The BRN also issues furnishing 
          numbers to nurse practitioners and nurse midwives to administer 
          prescriptions and lists psychiatric/mental health nurses.  In 
          addition to its licensing and certification functions, the BRN 
          also regulates and approves the following entities:  1) 
          California Pre-licensure Registered Nursing Programs; 2) 
          Nurse-Midwifery Programs; 3) Nurse Practitioner Programs; and, 
          4) Registered Nursing Continuing Education Providers.

          The BRN is responsible for implementation and enforcement of the 
          Nursing Practice Act -- the laws and regulations related to 
          nursing education, licensure, practice, and discipline.  The BRN 
          implements regulatory programs and performs a variety of 
          activities to protect the public.  These programs and activities 
          include, setting registered nurse educational standards for 
          pre-licensure and advanced practice nursing programs, issuing 
          and renewing registered nurse licenses, issuing certificates for 
          advanced practice nurses and public health nurses, taking 
          disciplinary action for violation of the Nursing Practice Act, 
          and managing a Diversion Program for registered nurses whose 
          practice may be impaired due to chemical dependency or mental 
          illness.

          Recognizing that registered nursing is an integral component of 
          the health care delivery system, the BRN seeks to affect public 
          policy by collaborating and interacting with legislators, 
          consumers, health care providers, health care insurers, 
          professional organizations, and other state agencies.  According 
          to the BRN, this enhances the Board's ability to interpret the 








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          Nursing Practice Act and establish policies for its regulatory 
          programs and activities, which are then implemented by the BRN 
          staff.

          The former composition of the BRN included seven members who 
          were appointed by the Governor, one by the Senate Rules 
          Committee and one by the Assembly Speaker.  The Board included 
          four public members, two registered nurses in direct patient 
          care practice, an advanced practice registered nurse, a 
          registered nurse educator, and a registered nurse administrator.

          The former statute included a sunset on the BRN of January 1, 
          2012 and no subsequent legislation was passed and signed to 
          extend the sunset.  This is due in part to the fact that there 
          was legislation last year (SB 538) to extend it to 2016, as SB 
          98 does, however SB 538 contained additional provisions that 
          made changes to the operation of the BRN, related to pension 
          benefits, which the Governor objected to and therefore vetoed 
          the bill.  In his veto message, the Governor asked the 
          Legislature to send him legislation to restore the BRN as soon 
          as possible. 

          The dissolution of the BRN means that substantial work in the 
          area of licensing, disciplinary action, and general nursing 
          practice oversight cannot continue.  The BRN adopts, amends or 
          rejects proposed decisions by administrative law judges who hear 
          cases on nurse discipline.  Now, judges' decisions will 
          automatically take effect if no board action is taken in 100 
          days.  The BRN also approves or rejects settlements reached 
          between attorneys representing nurses accused of misconduct and 
          deputy attorneys general representing the board.  Those cases 
          also will be subject to approval by administrative judges whose 
          decisions are final if the board takes no action in 100 days.  
          The DCA continues to do the staff work, such as processing 
          licensing applications and investigating complaints.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file.

          Opposition 
           
          None on file.








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          Analysis Prepared by  :    Andrea Margolis / BUDGET / (916) 
          319-2099