BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 122|
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                              UNFINISHED BUSINESS


          Bill No:  SB 122
          Author:   Price (D)
          Amended:  8/20/12
          Vote:     21

           
           SENATE BUSINESS, PROF & ECON DEVELOP COMM  :  7-0, 1/9/12
          AYES:  Price, Emmerson, Corbett, Correa, Hernandez, Negrete 
            McLeod, Vargas
          NO VOTE RECORDED:  Walters, Wyland

           SENATE APPROPRIATIONS COMMITTEE  :  7-0, 1/19/12
          AYES:  Kehoe, Alquist, Emmerson, Lieu, Pavley, Price, 
            Steinberg
          NO VOTE RECORDED:  Walters, Runner

           SENATE FLOOR  :  30-6, 1/26/12
          AYES:  Alquist, Berryhill, Blakeslee, Calderon, Cannella, 
            Corbett, Correa, De León, DeSaulnier, Emmerson, Evans, 
            Fuller, Hancock, Hernandez, Kehoe, Leno, Lieu, Liu, 
            Lowenthal, Negrete McLeod, Padilla, Pavley, Price, Rubio, 
            Simitian, Steinberg, Vargas, Wolk, Wright, Yee
          NOES:  Anderson, Dutton, Gaines, Huff, La Malfa, Strickland
          NO VOTE RECORDED:  Harman, Runner, Walters, Wyland

           SENATE BUSINESS, PROF & ECON DEVELOP COMM  :  8-0, 8/30/12
            (pursuant to Senate Rule 29.10) 
          AYES:  Price, Emmerson, Corbett, Correa, Hernandez, Negrete 
            McLeod, Strickland, Vargas
          NO VOTE RECORDED:  Wyland

           ASSEMBLY FLOOR  :  67-9, 8/27/12 - See last page for vote

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           SUBJECT  :    Nursing

           SOURCE  :     Author


           DIGEST  :    This bill authorizes the Board of Registered 
          Nursing (BRN) to receive a fee from applicants and for 
          renewal of a school of nursing's authorization, requires 
          BRN to enter into a Memorandum of Understanding (MOU) with 
          the Bureau for Private Postsecondary Education (Bureau) to 
          delineate the powers of the Bureau related to consumer 
          protection, as specified, and authorize the California 
          Medical Board (Board) to determine that an applicant is 
          eligible for a physician and surgeon's certificate if they 
          attended a foreign medical school that is not recognized or 
          has been previously disapproved by the Board if the 
          applicant meets specified requirements.

           Assembly Amendments  (1) authorize the Board to determine 
          that an applicant is eligible for a physician and surgeon's 
          certificate if they attended a foreign medical school that 
          is not recognized or has been previously disapproved by the 
          Board if the applicant meets certain requirements; (2) 
          require BRN to enter into an MOU with the Bureau for 
          Private Postsecondary Education (Bureau) to delineate the 
          powers of the Bureau related to consumer protection, as 
          specified; and (3) make other technical changes.

           ANALYSIS  :    Existing law, the Business and Professions 
          Code:

             1.   Provides for the regulation of various health 
               professions by regulatory boards within the Department 
               of Consumer Affairs (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.   Specifies that the BRN consists of nine members and 
               that as of January 1, 2012, the BRN   sunsets and its 
               statutory authorization becomes inoperative and is 

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               repealed. 

             4.   Specifies that the provision which provides for the 
               appointment of the Executive Officer for the BRN is 
               also repealed as of January 1, 2012. 

             5.   Specifies that an approved school of nursing is one 
               that has been approved by the BRN, gives the course of 
               instruction approved by the BRN, covering not less 
               than two academic years, is affiliated or conducted in 
               connection with one or more hospitals, and is an 
               institution of higher education or is affiliated with 
               an institution of higher education. 

             6.   Defines "institution of higher education" as 
               community colleges offering an associate of arts or 
               associate of science degree and private postsecondary 
               institutions offering an associate of arts or 
               associate of science degree.  

             7.   Requires that a school of nursing that is not an 
               "institution of higher education," as defined, shall 
               make an agreement with an institution of higher 
               education in the same general location to grant an 
               associate of arts or associate of science degree to 
               individuals who graduate from the school of nursing or 
               to grant a baccalaureate degree with successful 
               completion of an additional course of study as 
               approved by the BRN and the institution involved.  

             8.   Provides that the BRN shall determine by regulation 
               the required subjects of instruction in an approved 
               school of nursing and the amount of clinical 
               experience necessary.  

             9.   Specifies that it shall be the duty of the BRN, 
               through its executive officer, to inspect all schools 
               of nursing in this state at such times as the BRN 
               shall deem necessary, and if it is found that a school 
               is not maintaining the standard(s) required by the 
               BRN, then the BRN may request the defects to be 
               corrected and if not corrected then the BRN may remove 
               them from the approved list. 


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             10.  Provides that it is unlawful for anyone to conduct 
               a school of nursing unless the school has been 
               approved as an accredited school by the BRN, or is 
               exempt as specified.  

          Existing law, the Education Code:

             1.   Establishes the Bureau of Private Postsecondary 
               Education within the DCA and provides for Bureau 
               oversight and regulation of California private 
               postsecondary institutions pursuant to the Private 
               Postsecondary Education Act of 2009 (PPE Act), 
               including a school of nursing that is not accredited 
               by accrediting agencies affiliated with the Western 
               Association of Schools and Colleges or regional 
               accrediting agencies recognized by the United States 
               Department of Education.  

             2.   Establishes numerous unfair business practices for 
               institutions covered by the PPE Act, including 
               prohibiting an institution from promising employment 
               or otherwise overstating the availability of jobs or 
               making untrue or misleading statements regarding 
               student completion, placement or expected salary 
               rates.  

             3.   Sets forth certain disclosure requirements 
               pertaining to completion, placement, licensure, and 
               earning potential.  

          This bill:

          1.Subjects a school of nursing or a new nursing program 
            seeking approval by the BRN to the following fee 
            schedule: 

             A.   A fee of $5,000 for approval of a nursing program. 

             B.   A fee of $3,500 for continuing approval of a 
               nursing program established after January 1, 2013. 

             C.   A fee of $500 for processing authorization of a 
               substantive change to an approval of a school of 
               nursing. 

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          1.Deletes provisions requiring a school of nursing that is 
            not affiliated with an institution of higher education to 
            make an agreement with such an institution for purposes 
            of awarding nursing degrees and instead authorizes the 
            BRN to grant approval to these institutions to grant 
            nursing degrees. 

          2.Requires the BRN to issue a cease and desist order to a 
            school of nursing not approved by the BRN and to notify 
            the Bureau and the Attorney General of such a school. 
            Makes it unprofessional conduct for any registered nurse 
            (RN) to violate or attempt to violate or to assist or 
            abet the violation of this provision. 

          3.Requires meetings of the BRN to be held in northern and 
            southern California. 

          4.Requires the BRN to have a memorandum of understanding 
            with the Bureau to delineate the powers of the BRN and 
            the Bureau as related to schools of nursing and the 
            powers of the Bureau to protect the interest of students 
            attending institutions governed by the Private 
            Postsecondary Education Act of 2009. 

          5.Authorizes the Board to determine that an applicant is 
            eligible for a physician and surgeon's certificate if 
            they attended a foreign medical school that is not 
            recognized or has been previously disapproved by the 
            Board if the applicant meets the following requirements 
            and authorizes the Board to adopt regulations, as 
            specified, for implementing this authority: 

             A.   Successfully completed a resident course of medical 
               education leading to a degree of medical doctor 
               equivalent to that specified under current law, as 
               specified; 

             B.   Holds an unlimited and unrestricted license as a 
               physician and surgeon in another state or federal 
               territory and continuously practiced for at least 10 
               years, as specified, if the applicant acquired any of 
               his or her education from an unrecognized foreign 
               medical school; 

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             C.   Holds an unlimited and unrestricted license as a 
               physician and surgeon in another state or federal 
               territory and continuously practiced for at least 20 
               years, as specified, if the applicant acquired any of 
               his or her education from a foreign medical school 
               previously disapproved by the Board; 

             D.   Is certified by a specialty board that is a member 
               of the American Board of Medical Specialties; 

             E.   Successfully passed specified examinations for 
               licensure as a physician and surgeon; 

             F.   Has not been the subject of a disciplinary action 
               by a medical licensing authority or of adverse 
               judgments or settlements, as specified; 

             G.   Successfully completed three years of approved 
               postgraduate training, as specified; 

             H.   Is not subject to denial of licensure, as 
               specified, and; 

             I.   Has not held a healing arts license and been the 
               subject of disciplinary action by a healing arts board 
               by any state or federal territory. 

          1.Prohibits specified persons from participating in this 
            program. 

           Background
           
          The BRN is responsible for regulating the practice of 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 

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          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:

                 California Pre-licensure Registered Nursing 
               Programs.
                 Nurse-Midwifery Programs.
                 Nurse Practitioner Programs.
                 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.

          The BRN also recognizes registered nursing is an integral 
          component of the health care delivery system. The BRN 
          affects public policy by collaborating and interacting with 
          legislators, consumers, health care providers, health care 
          insurers, professional organizations, and other state 
          agencies.  The BRN takes a proactive role in structuring 
          health care and evaluating nursing trends in order to make 
          sound policy decisions.  According to the BRN, this 
          enhances the Board's ability to interpret the Nursing 
          Practice Act and establish policies for its regulatory 

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          programs and activities, which are then implemented by the 
          BRN staff.

          Due to the veto of SB 538, and the sunset of the BRN as of 
          January 1, 2012, the 9 members of the BRN have been 
          eliminated.  The Governor does intend, however, to 
          immediately reconstitute the BRN in January of 2012.  In 
          the meantime, the Governor, the former BRN and the DCA have 
          entered into an "Interagency Agreement" for the DCA and its 
          Director to assume the responsibilities, powers and duties 
          as permitted by law.

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes   
          Local:  No

          According to the Assembly Appropriations Committee: 

           One-time information technology costs of $10,000 to the 
            BRN to begin collecting nursing program approval and 
            renewal fee revenue.  Increased workload related to 
            approval and regulation of nursing schools of $100,000 
            annually, offset by increased revenue in the same amount 
            to the BRN special fund. 

           Potential increased staff costs to the Department of 
            Justice of $80,000 (charged to the BRN special fund) for 
            approximately 0.5 Deputy Attorneys General to enforce or 
            defend the BRN's ability to issue cease and desist 
            letters.  These costs can vary depending upon the number 
            and complexity of cases. 

          SUPPORT  :   (Verified  8/28/12)

          American Nurses Association of California
          Board of Registered Nursing
          Medical Board of California



           ASSEMBLY FLOOR  :  67-9, 8/27/12
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, 
            Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, 
            Brownley, Buchanan, Butler, Charles Calderon, Campos, 
            Carter, Cedillo, Chesbro, Conway, Davis, Dickinson, Eng, 

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            Feuer, Fletcher, Fong, Fuentes, Furutani, Galgiani, 
            Gatto, Gordon, Gorell, Grove, Hagman, Hall, Hayashi, 
            Roger Hernández, Hill, Huber, Hueso, Huffman, Lara, 
            Logue, Bonnie Lowenthal, Ma, Mendoza, Miller, Mitchell, 
            Monning, Nestande, Norby, Olsen, Pan, Perea, V. Manuel 
            Pérez, Portantino, Skinner, Smyth, Solorio, Swanson, 
            Torres, Valadao, Wagner, Wieckowski, Williams, Yamada, 
            John A. Pérez
          NOES:  Donnelly, Beth Gaines, Garrick, Halderman, Jeffries, 
            Jones, Mansoor, Morrell, Nielsen
          NO VOTE RECORDED:  Cook, Harkey, Knight, Silva


          JJA:n   8/31/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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