BILL ANALYSIS Ó
SB 271
Page 1
SENATE THIRD READING
SB 271 (Ed Hernandez)
As Amended August 6, 2013
Majority vote
SENATE VOTE :38-0
HEALTH 19-0 APPROPRIATIONS 17-0
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|Ayes:|Pan, Logue, Ammiano, |Ayes:|Gatto, Harkey, Bigelow, |
| |Atkins, Bonilla, Bonta, | |Bocanegra, Bradford, Ian |
| |Chesbro, Gomez, Roger | |Calderon, Campos, |
| |Hernández, Lowenthal, | |Donnelly, Eggman, Gomez, |
| |Maienschein, Mansoor, | |Hall, Holden, Linder, |
| |Mitchell, Nazarian, | |Pan, Quirk, Wagner, Weber |
| |Nestande, | | |
| |V. Manuel Pérez, Wagner, | | |
| |Wieckowski, Wilk | | |
| | | | |
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SUMMARY : Deletes the January 1, 2014, sunset date, and makes
permanent the Associate Degree Nursing Scholarship Pilot Program
(ADN Scholarship Program), and deletes references to the program
as a pilot. Requires the Office of Statewide Health Planning
and Development (OSHPD) to post ADN Scholarship Program
statistics and updates on its Internet Web site.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, approximately $500,000 annually in continued
expenditures from the Registered Nurse Education Fund to support
the ADN Scholarship Program administered by OSHPD.
Approximately $400,000 is used for scholarships and the
remaining $100,000 is used for administrative support.
COMMENTS : According to the author, implementation of the
Patient Protection and Affordable Care Act will bring millions
of uninsured Californians into the health care delivery system
in 2014, exacerbating an existing health provider shortage.
Coupled with a disproportionate geographic distribution of
providers and an aging workforce, this shortage has significant
potential to negatively impact patient care. While the nation
has been experiencing a shortage of nurses for more than a
decade, the shortage has been particularly acute in California,
SB 271
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where it is exacerbated by higher education budget cuts. The
nursing shortage has also resulted in a diminished ability to
educate the incoming population of nursing students. This bill
will ensure that this valuable program continues to operate,
providing patient access to practitioners in medically
underserved areas (MUAs).
The ADN Scholarship Program was established to increase the
number of registered nurses and to encourage nurses to practice
direct patient care in MUAs of California. Students who are
currently enrolled or accepted into an Associate Degree Nursing
Program and are free from any other service obligation may
receive up to $10,000 for one academic year. In return for
receiving the scholarship, awardees must agree to practice
direct patient care for two years in a MUA of California.
Specifically, the ADN Scholarship Program is available only to
students in counties determined to have the most need. Need in
a county is established based on all the following factors: 1)
counties with a RN-to-population ratio equal or less than 500
Registered Nurses (RNs) per 100,000 individuals; 2) county
unemployment rate; and, 3) county level of poverty. The Health
Professions Education Foundation (HPEF) shall consider the
applicant's economic need and cultural and linguistic skills and
abilities. Funding for the ADN Scholarship Program comes from
the Registered Nurse Education Fund which in turn is funded by
$10 assessment on the biennial renewal license fees paid for by
RNs to the Board of Registered Nursing.
According to OSHPD, the current demand for ADN scholarships
vastly outweighs the supply of available funding for the
program. Since May 2003 and through September 2011, HPEF has
received $10.6 million in scholarship applications and $3.2
million in ADN scholarships were awarded. The table below
illustrates the demand for this program in the last 10 years:
-------------------------------------------------------------
| Calendar | Applications | Funds |
| Year | Received | Requested |
| | Awarded | Awarded |
-------------------------------------------------------------
|-------------+--------+-----------+-----------+--------------|
| 2003 | 94 | 29 |$ | $ 103,500 |
| | | | 752,000| |
|-------------+--------+-----------+-----------+--------------|
SB 271
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| 2004 | 155 | 23 |$1,240,000 | $ 152,000 |
|-------------+--------+-----------+-----------+--------------|
| 2005 | 160 | 35 |$1,120,000 | $ 214,000 |
|-------------+--------+-----------+-----------+--------------|
| 2006 | 110 | 29 |$ | $ 152,000 |
| | | | 524,000| |
|-------------+--------+-----------+-----------+--------------|
| 2007 | 133 | 65 |$ | $ 476,000 |
| | | | 824,000| |
|-------------+--------+-----------+-----------+--------------|
| 2008 | 205 | 53 |$ | $ 343,000 |
| | | | 580,000| |
|-------------+--------+-----------+-----------+--------------|
| 2009 | 213 | 61 |$1,305,000 | $ 575,000 |
|-------------+--------+-----------+-----------+--------------|
| 2010 | 247 | 71 |$2,215,000 | $ 615,952 |
|-------------+--------+-----------+-----------+--------------|
| 2011 | 204 | 64 |$2,040,000 | $ 484,836 |
|-------------+--------+-----------+-----------+--------------|
| 2012 | 203 | * |$2,030,000 | |
| | | | | * |
| | | | | |
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* Funding cycle is scheduled for February 2013
Analysis Prepared by : Rosielyn Pulmano / HEALTH / (916)
319-2097
FN: 0002143