BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
1703 (Knight)
Hearing Date: 07/15/2010 Amended: 06/22/2010
Consultant: Dan Troy Policy Vote: ED 6-0
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BILL SUMMARY: AB 1703 would increase the maximum loan
assumption payment for registered nurses (RNs) participating in
the State Nursing Assumption Program of Loans for Education -
Nurses in State Facilities (SNAPLE-NSF) who become employed
full-time in a state-operated veterans' home from $20,000 for
four-years of service to $40,000. The bill would also expand
the conditions under which a participant may receive a one-year
extension for completing the required four years of services to
include military service.
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Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13 Fund
SNAPLE-NSF $20 in the first year,
ultimatelygrowingGeneral
to $80 annually, assuming 2 new
applicants
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STAFF COMMENTS: This bill meets the criteria for referral to the
Suspense File.
Current law authorizes the State Nursing Assumption Program of
Loans for Education for nurses employed in specified state
facilities (SNAPLE-NSF) to be administered by the California
Student Aid Commission (CSAC). To be eligible, nurses must be
employed for four consecutive years by state-operated 24 hour
facilities, such as veterans' homes, prisons, and developmental
centers that have a clinical nurse vacancy rate higher than 10
percent. Eligible participants have loan payments of up to
$5,000 assumed by the program annually for four years, for a
maximum award of $20,000 (assumptions awards may not exceed
actual student loan debt).
This bill would increase the maximum grant for participants
employed in veterans' homes from $20,000 to $40,000.
Despite authorizations for up to 100 annual awards in recent
year, the SNAPLE-NSF program has garnered few applicants (only
three in the 2008-09 fiscal year). A January 2010 report noted
that there was only one veterans' home in the state with a 10
percent vacancy rate, though two new homes have opened recently.
Another veterans' home (in Redding) is under construction. The
intent of the bill is to make employment in these homes more
appealing and to attract more applicants for the loan assumption
program.
If this bill leads to two more applicants per year, costs for
those awards would total $20,000 in 2011-12, increasing to
$80,000 in the 2014-15 fiscal year. This estimate may be higher
or lower depending on the applicants that respond to the bill's
incentives. The provision of the bill that allows participants
additional time to complete program
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AB 1703 (Knight)
requirements due to military service may result in a minor loss
of savings, though this loss will likely be minimal.
Staff notes that current law requires the Legislative Analyst's
Office (LAO) to provide a report on the efficacy of the program
by May 1, 2011. It may be premature to modify the program prior
to the LAO's report.