BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
155 (Wright)
Hearing Date: 05/28/2009 Amended: 04/27/2009
Consultant: Dan Troy Policy Vote: ED 8-0
_________________________________________________________________
____
BILL SUMMARY: SB 155 would establish a new program within the
State Nursing Assumption Program of Loans for Education (SNAPLE)
under which a student enrolled in a qualified program and who
agrees to work as a school nurse in an eligible school or school
district as specified, would be eligible for a conditional loan
assumption agreement.
_________________________________________________________________
____
Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
Loan Assumptions Up to $1.1 million annually General
CSAC administration $72 $80 General
_________________________________________________________________
____
STAFF COMMENTS: SUSPENSE FILE.
Current law authorizes the SNAPLE program which provides for
postsecondary students to receive a conditional warrant for loan
assumption, to be redeemed upon obtaining employment as
full-time nursing faculty member at a California college or
university. Recipients may have up to $25,000 of the student
loans covered over 3 years if they meet certain requirements.
Current law also authorizes the SNAPLE-SF program which allows
the state to issue agreements for loan assumptions to persons
who fulfill agreements to work full-time for at least 4
consecutive years as a clinical registered nurse in a
state-operated 24-hour facility that employs registered nurses
and that has a clinical registered nurse vacancy rate of greater
than 10 percent. A participant can receive up to $5,000 annually
for 4 consecutive years towards outstanding student loans for a
total loan assumption of up to $20,000.
This bill would establish a new program within SNAPLE that would
make conditional loan assumption agreements available on a
competitive basis to students enrolled in a preparatory program
in order to obtain a clear school nurse services credential and
who agrees to work as a school nurse in an eligible school. The
total loan assumption for any recipient would not exceed $11,000
and would be awarded over four years ($2,000 in the first year
and $3,000 in each of the three subsequent years).
Assuming full implementation of 100 annual warrants, costs of
the loan assumptions would range initially form $200,000 in the
first year to $1.1 million annually commencing in the 4th year
of the program. The bill states that it is the intent of the
Legislature that funding from the "undersubscribed" SNAPLE-SF
program be shifted to this program. It may be the intent is to
split the costs between the existing program and the new program
established by this bill. That would presumably limit the loan
assumption warrants issued and reduce the some of the costs of
the bill. This would not make the
Page 2
SB 155 (Wright)
bill cost neutral, however, as undersubscribed warrants
otherwise result in savings to the General Fund. Additionally,
CSAC would require additional funding for database development,
completion of regulations, outreach and ongoing administration.
These costs are estimated at $72,000 for the 2010-11 fiscal year
and $80,000 ongoing thereafter.
Similar legislation, SB 1521 (Cedillo), failed passage in the
Senate Education Committee in 2008.