BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          SB 271 (Hernandez) - Associate Degree Nursing Scholarship  
          Program.
          
          Amended: As introduced          Policy Vote: Health 9-0
          Urgency: No                     Mandate: No
          Hearing Date: April 15, 2013                            
          Consultant: Brendan McCarthy    
          
          This bill meets the criteria for referral to the Suspense File.
          
          
          Bill Summary: SB 271 would eliminate the January 1, 2014 sunset  
          on the Associate Degree Nursing Scholarship Program.

          Fiscal Impact: Ongoing costs of about $700,000 per year to  
          provide scholarships and administer grants (special fund). Over  
          the last five years, scholarship awards (including  
          administrative costs) have ranged from about $400,000 to  
          $780,000 with an average of about $650,000.

          Background: Under current law, all registered nurses licensed by  
          the state are required to pay a $10 surcharge when their license  
          is awarded or renewed (in addition to other licensing fees).  
          Revenues from this surcharge are deposited in the Registered  
          Nurse Education Fund. This fund is used to support nursing  
          education, including scholarships for associate, bachelor's, and  
          master's level nursing degrees, loan repayments, and other  
          educational support. 

          Over the last five years, total expenditures (including  
          administrative costs) for these programs has been about $1.8  
          million per year. About 30 percent of the total funding has gone  
          to the Associate Degree Nursing Scholarship Program, although  
          this funding ratio is not required by law.

          Current law establishes the Associate Degree Nursing Scholarship  
          Program as a pilot project, with a January 1, 2014 sunset date.

          Proposed Law: SB 271 would eliminate the January 1, 2014 sunset  
          on the Associate Degree Nursing Scholarship Program.

          Related Legislation: AB 994 (Parra, Statutes of 2008) previously  








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          extended the sunset date of this program from January 1, 2009 to  
          January 1, 2014.

          Staff Comments: According to the Office of Statewide Health  
          Planning and Development, over the last five years requested  
          funding has been two to four times the available funding.