BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 139
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          Date of Hearing:   July 3, 2007

                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION
                              Anthony Portantino, Chair
                      SB 139 (Scott) - As Amended:  May 2, 2007

           SENATE VOTE  :   34-2
           
          SUBJECT  :   Nursing education

           SUMMARY  :   Makes clarifying and technical changes to statutes  
          enacted last year (SB 1309, Scott, Chapter 837, Statutes of  
          2006) to increase California's nursing workforce and requires  
          the Office of Statewide Health Planning and Development (OSHPD)  
          to collect and annually report specified health professions  
          data.  Specifically,  this bill  :   

          1)Allows a person who is currently employed as a Registered  
            Nurse (RN) in a state-operated 24-hour facility to be eligible  
            to enter into an agreement for loan assumption under the State  
            Nursing Assumption Program of Loans for Education for nursing  
            faculty (SNAPLE) but not for the SNAPLE-SF, which provides  
            loan-assumption benefits for nurses employed in state-operated  
            facilities.                    

          2)Clarifies that if a natural disaster prevents a participant  
            from completing a year of work required under SNAPLE-SF, the  
            loan assumption agreement is extended for the amount of time  
            equal to the period between the interruption of employment in  
            a state facility to the resumption of employment and prohibits  
            the California Student Aid Commission (CSAC) from making  
            further payments under the loan-assumption agreement until  
            specified employment requirements have been satisfied.

          3)Prohibits a campus of the California State University (CSU)  
            and the California Community Colleges (CCC) that operates an  
            RN program from requiring a student who has been admitted to  
            an RN program and has already earned a baccalaureate degree  
            from an accredited institution to complete general education  
            requirements and instead requires that student to complete  
            only the coursework that is necessary to prepare him or her  
            for licensing as an RN.

          4)Amends statutory intent language to state that the University  
            of California (UC) and the CSU shall fund nursing enrollment  








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            expansions referenced in current law within the general  
            enrollment growth funding that is traditionally provided to  
            the segments in the annual Budget Act.

          5)Allows any college, university, or other entity that operates  
            an accredited RN program to require any prospective student to  
            provide criminal clearance, as specified, prior to enrollment.

          6)Limits to 3% the amount to be used for statewide  
            administration, program development, program evaluation, and  
            program accountability under the Nursing Enrollment Growth and  
            Retention Program (NEGRP).

          7)Allows any CCC district, regardless of whether it participates  
            in the NEGRP, to use any diagnostic assessment tool that is  
            commonly used in RN programs.  

          8)Authorizes a CCC district to use additional multi-criteria  
            screening measures if, after using an approved assessment  
            tool, a CCC district determines that the number of applicants  
            to its RN program exceeds its capacity.

          9)Requires the Health Care Workforce Clearinghouse within OSHPD  
            to be responsible for the collection, analysis, and  
            distribution of information on the educational and employment  
            trends for health care occupations in the state and requires  
            these activities be funded by appropriations made from the  
            California Health and Data Planning Fund, as specified.

          10)Requires OSHPD to collect and annually report to the  
            Legislature data, as specified, related to education and  
            employment trends in health care professions, current supply  
            and demand for health care workers in California, and policies  
            needed to address the issue of health care workforce shortages  
            and distribution.

          11)Makes other minor, technical and clarifying changes.

           EXISTING LAW  :

          1)Establishes the SNAPLE, administered by CSAC, under which any  
            person enrolled in an institution of postsecondary education  
            and participating in that loan assumption program is eligible  
            to receive a conditional warrant for loan assumption to be  
            redeemed upon becoming employed as a full-time nursing faculty  








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            member at a California college or university.

          2)Establishes SNAPLE-SF, a loan-assumption program for employees  
            of specified state facilities within the SNAPLE program,  
            providing loan assumption benefits to persons who fulfill  
            agreements to work full time for four consecutive years as  
            clinical registered nurses in state-operated facilities, as  
            specified, that have a vacancy rate greater than 10% in  
            clinical registered nursing service.

          3)Establishes OSHPD, which is charged with the administration of  
            health policy and planning.

          4)Establishes the California Health Data and Planning Fund and  
            authorizes monies from that fund to be appropriated for  
            expenditure for health-related programs of OSHPD.

           FISCAL EFFECT  :   According to the Senate Appropriations  
          Committee, $2.2 million in start-up costs for the health  
          workforce database and $1.5 million in ongoing costs to OSHPD to  
          operate the database.

           COMMENTS  :   This bill was approved by the Assembly Health  
          Committee, 17-0, on June 26. 
           
          Background  :  

          1)Need for healthcare workforce data:  California has the  
            largest and most diverse population in the nation and is  
            facing a dramatic and pressing challenge related to the supply  
            and distribution of health care professionals in numerous  
            disciplines.  A UC report titled,  A Compelling Case for  
            Growth, projects that that California will face a shortage of  
            nearly 17,000 doctors by 2015 and recommended analysis,  
            forecasting, and reporting of workforce data.
           
           2)Nursing shortage:  California and the nation are experiencing  
            a severe nursing shortage.  According to the state Employment  
            Development Department, California has an annual shortage of  
            9,900 RNs that is expected to increase over the next five to  
            ten years.  The Health Resources and Services Administration's  
            National Center for Health Workforce Analysis projects that  
            California will need an estimated 47,600 RNs by 2010 and  
            116,600 by 2020.  Several factors contribute to the nursing  
            shortage, including an aging and growing population, retiring  








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            RNs, a lack of educational capacity in nursing programs, and a  
            lack of qualified nursing instructors.  Currently, California  
            ranks 50th among the states in the number of nurses per  
            capita.
           
           California nursing programs:  Approximately 70% of RNs in  
          California are prepared at the CCC level in California through  
          Associate Degree in Nursing programs.  These two-year programs  
          generally require one to two semesters of prerequisites prior to  
          admission.  Approximately 26% of RNs receive their preparation  
          as part of a four-year Bachelor of Science in Nursing (BSN)  
          program and about 4% are prepared through Entry-Levels Master's  
          (ELM) programs.  ELM programs are designed for individuals who  
          already have a bachelor's degree in a subject other than  
          nursing.  These students received their RN in about 18 months  
          and a Master of Science in Nursing (MSN)  in another 18 months.   
          According to the 2006 Annual Report of the California Nurse  
          Education Initiative, California currently graduates  
          approximately 6,000 nursing students a year.  However, the Board  
          of Registered Nursing reports that nearly 60% of qualified  
          applicants are turned away from nursing programs each year due  
          to barriers such as a lack of clinical education sites, limited  
          classroom space, and a lack of qualified faculty.

           Recent efforts to increase the number of nurses  :  SB 1309  
          enacted several initiatives and established new programs to  
          address the nursing shortage in California, including an  
          expansion of existing loan-assumption benefits, a new  
          loan-assumption program (SNAPLE-SF), a new program of grants to  
          attract and retain CCC nursing instructors, a new program for  
          enrollment growth and retention of CCC nursing students, a new  
          regional system for matching students and clinical placements,  
          exemptions from existing CCC employment laws, and new nursing  
          enrollment targets for the CSU and the UC.

           Need for this bill  :  The author states that this bill is a  
          combination of clean-up and follow-up to SB 1309 as follows:

          1)Employees of state facilities:  SB 1309 established a new  
            "Employees of State Facilities" program under SNAPLE to  
            provide up to $20,000 loan assumption grants ($5,000 per year  
            for four years) for RNs to work in 24-hour state facilities.   
            The author states that this new program was intended as a  
            recruitment tool for new employees by providing a "signing  
            bonus."  The author states that when SB 1309 was signed, he  








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            committed to clarify in clean-up legislation that current RNs  
            at 24-hour state facilities are not eligible to enter into a  
            loan assumption agreement under this program.  

          2)Letter to the Journal regarding intent language:  The author  
            submitted a letter of clarification to the Journal regarding  
            intent language contained in SB 1309.  In his letter, the  
            author stated that, while not specifically referenced in the  
            measure, it was his intent that future state budgets fund  
            Baccalaureate of Science degree nursing student enrollment  
            growth at UC and CSU from within the general enrollment growth  
            funding that is traditionally provided to those institutions  
            as part of the annual budget process.  This bill includes this  
            clarification in intent language.  

          3)Statewide health workforce database:  The author states that  
            language to create this database was contained in SB 1309 but  
            was removed by the Assembly Appropriations Committee.  The  
            author states that since that time, OSHPD has indicated their  
            support for the establishment of the database and has  
            suggested using the California Health Planning and Data Fund,  
            which funds OSHPD operations and is supported entirely by fees  
            paid by hospitals. 

          4)Technical clean-up:  The author states that other provisions  
            of this bill are clarifying and consistent with the intent of  
            SB 1309.

           Suggested amendments  :  Staff recommends the Committee adopt the  
          following amendments, which are technical and clarifying in  
          nature:

          1)On page 10, line 3, clarify that "program development"  
            includes, but is not limited to partnerships or collaborations  
            between community colleges and four-year universities in order  
            to offer BSN, MSN, and ELM programs in nursing programs.

          2)Page 10, line 10, delete: "developing and"

          3)Page 10, line 33, delete: "validated" and insert: "recognized"

          4)Page 10, line 35, insert: "community college"

          5)Page 11, line 9, delete: "develop" and insert: "offer, or  
            identify"








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          6)Page 11, line 10, after: "tutorials" insert: instructional  
            resources

          7)Page 11, line 34, delete: "enroll in" and insert: "undertake"

          8)Page 11, line 36, delete: "classes" and insert: "coursework"

          9)Page 12 , Section 8:  

             a)   Re-write/clarify subsection (b) (lines 27-30) to ensure  
               that all CCC nursing programs can use diagnostic assessment  
               tools; and

             b)   Add sub-section (c) to preclude CCC nursing programs  
               from excluding applicants based on district residency or  
               completion of prerequisite courses in that district.

          10)Page 14, line 17, insert: baccalaureate degree

          11)Page 14, around line 20, insert: sub-section (e) encouraging  
            CSU campuses to collaborate with CCC campuses in offering BSN  
            or ELM nursing programs.

          12)Page 14, clarify that CSU may establish admission priorities  
            for BSN programs but may not exclude applicants who already  
            have earned a baccalaureate or higher degree.

          13)Page15, line 7, insert: baccalaureate degree

           Related legislation  :  AB 365 (Portantino), pending in the  
          Senate, would require the California Postsecondary Education  
          Commission to convene a task force of stakeholders to report to  
          the Legislature on California's future workforce needs and  
          actions necessary to meet those needs.  SB 764 (Migden), pending  
          in the Assembly, would require OSHPD to report five-year  
          projections on the primary care physician workforce in the state  
          to the Legislature by June 1, 2009.  

           Previous legislation  :  SB 63 (Committee on Budget and Fiscal  
          Review), Chapter 73, Statues of 2005, established the SNAPLE  
          program, which was modeled after the existing teacher APLE  
          program, to encourage individuals to complete their graduate  
          education and serve as nursing faculty at an accredited  
          California college or university.  AB 1241 (Parra), Chapter 396,  








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          Statutes of 2003, required OSHPD to establish an Associate  
          Degree Nursing Scholarship Pilot Program, funded from the Health  
          Professions Education Foundation, to provide scholarships to  
          associate degree nursing students in counties determined to have  
          high need.  AB 652 (J. Horton), Chapter 459, Statutes of 2001,  
          established the Health Professions Education and Outreach for  
          Medically Underserved Communities and Populations Act and  
          appropriated $2 million from the state General Fund to UC for  
          outreach programs designed to increase the number of  
          underrepresented and/or disadvantaged students in UC health  
          professional schools.  SB 664 (Poochigian), Chapter 443,  
          Statutes of 2001, required the California Postsecondary  
          Education Commission to study CCC districts' admissions  
          procedures and attrition rates for two-year associate degree  
          nursing  
          programs.  AB 655 (Scott), Chapter 954, Statutes of 1999,  
          required a multi-system study of the need for trained nurses in  
          California.  

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          American Nurses Association of California
          California Academy of Family Physicians
          California Hospital Association
          California Nurses Association
          Latino Coalition for a Healthy California
          San Jose Evergreen and Rio Hondo Community College Districts
           
            Opposition 
           
          None on file.



           Analysis Prepared by  :    Sandra Fried / HIGHER ED. / (916)  
          319-3960