BILL NUMBER: AB 2516	CHAPTERED  09/08/00

	CHAPTER   360
	FILED WITH SECRETARY OF STATE   SEPTEMBER 8, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 7, 2000
	PASSED THE ASSEMBLY   AUGUST 22, 2000
	PASSED THE SENATE   AUGUST 18, 2000
	AMENDED IN SENATE   JUNE 14, 2000
	AMENDED IN SENATE   MAY 30, 2000
	AMENDED IN ASSEMBLY   APRIL 25, 2000
	AMENDED IN ASSEMBLY   MARCH 27, 2000

INTRODUCED BY   Assembly Member Thomson

                        FEBRUARY 24, 2000

   An act to amend Section 128385 of the Health and Safety Code,
relating to health.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2516, Thomson.  Registered Nurse Education Program.
   Existing law requires the Office of Statewide Health Planning and
Development to perform various duties with regard to the Health
Professions Education Foundation, including entering into contractual
agreements with students participating in the Registered Nurse
Education Program within the foundation.
   Under existing law, the Health Professions Education Foundation is
authorized to solicit and receive private sector funds and make
recommendations concerning the disbursement of those funds in the
form of loans or scholarships to students from underrepresented
groups participating in the Registered Nurse Education Program.
Existing law requires that participants in this program agree in
writing prior to graduation to serve in an eligible county health
facility, as defined, or a health manpower shortage area, as
designated by the director of the office.
   This bill would extend participation in the program to students
who agree in writing prior to graduation to serve in an eligible
state-operated health facility.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 128385 of the Health and Safety Code is amended
to read:
   128385.  (a) There is hereby created the Registered Nurse
Education Program within the Health Professions Education Foundation.
  Persons participating in this program shall be persons who agree in
writing prior to graduation to serve in an eligible county health
facility, an eligible state-operated health facility, or a health
manpower shortage area, as designated by the director of the office.
Persons agreeing to serve in eligible county health facilities,
eligible state-operated health facilities, or health manpower
shortage areas may apply for scholarship or loan repayment.  The
Registered Nurse Education Program shall be administered in
accordance with Article 1 (commencing with Section 128330), except
that all funds in the Registered Nurse Education Fund shall be used
only for the purpose of promoting the education of registered nurses
and related administrative costs.  The Health Professions Education
Foundation shall make recommendations to the director of the office
concerning both of the following:
   (1) A standard contractual agreement to be signed by the director
and any student who has received an award to work in an eligible
county health facility, an eligible state-operated health facility,
or in a health manpower shortage area that would require a period of
obligated professional service in the areas of California designated
by the Health Manpower Policy Commission as deficient in primary care
services.  The obligated professional service shall be in direct
patient care.  The agreement shall include a clause entitling the
state to recover the funds awarded plus the maximum allowable
interest for failure to begin or complete the service obligation.
   (2) Maximum allowable amounts for scholarships, educational loans,
and loan repayment programs in order to assure the most effective
use of these funds.
   (b) Applicants may be persons licensed as registered nurses or
graduates of associate degree nursing programs prior to entering a
program granting a baccalaureate of science degree in nursing.
Priority shall be given to applicants who hold associate degrees in
nursing.
   (c) Not more than 5 percent of the funds available under the
Registered Nurse Education Program shall be available for a pilot
project designed to test whether it is possible to encourage
articulation from associate degree nursing programs to baccalaureate
of science degree nursing programs.  Persons who otherwise meet the
standards of subdivision (a) shall be eligible for educational loans
when they are enrolled in associate degree nursing programs.  If
these persons complete a baccalaureate of science degree nursing
program in California within five years of obtaining an associate
degree in nursing and meet the standards of this article, these loans
shall be completely forgiven.
   (d) As used in this section, "eligible county health facility"
means a county health facility that has been determined by the office
to have a nursing vacancy rate greater than noncounty health
facilities located in the same health facility planning area.
   (e) As used in this section, "eligible state-operated health
facility" means a state-operated health facility that has been
determined by the office to have a nursing vacancy rate greater than
noncounty health facilities located in the same health facility
planning area.