BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  SB 1119|
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                              UNFINISHED BUSINESS


          Bill No:  SB 1119
          Author:   Wright (D), et al
          Amended:  6/23/10
          Vote:     21

           
           SENATE HEALTH COMMITTEE  :  9-0, 4/14/10
          AYES:  Alquist, Strickland, Aanestad, Cedillo, Cox, Leno,  
            Negrete McLeod, Pavley, Romero

           SENATE BUSINESS, PROF. & ECON. DEV. COMM.  :  7-0, 4/19/10
          AYES:  Negrete McLeod, Wyland, Aanestad, Calderon, Correa,  
            Oropeza, Yee
          NO VOTE RECORDED:  Florez, Walters

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

          SENATE FLOOR  :  30-0, 5/10/10
          AYES:  Aanestad, Alquist, Ashburn, Calderon, Cedillo,  
            Cogdill, Cox, DeSaulnier, Ducheny, Florez, Hancock,  
            Hollingsworth, Huff, Kehoe, Leno, Lowenthal, Negrete  
            McLeod, Padilla, Pavley, Price, Romero, Runner, Simitian,  
            Steinberg, Strickland, Walters, Wolk, Wright, Wyland, Yee
          NO VOTE RECORDED:  Corbett, Correa, Denham, Dutton, Harman,  
            Liu, Oropeza, Wiggins, Vacancy, Vacancy

           ASSEMBLY FLOOR  :  Not available


           SUBJECT :    Health care staffing

           SOURCE  :     Author

                                                           CONTINUED





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           DIGEST  :    This bill requires temporary licensed nursing  
          employment agencies to verify a nurse's fitness to work,  
          requires certain reporting of unfit nurses, and specifies  
          penalties for failure to do so. 

           Assembly Amendments  authorize civil penalties of up to  
          $5,000 and $10,000, respectively, and require health  
          facilities that make reports regarding unfit nurses to send  
          a copy of that report to the employment agency that place  
          the relevant licensed vocational nurse or licensed physical  
          therapist with the facility.

           ANALYSIS :    

          Existing law:

          1. Establishes, within the Business and Professions Code,  
             the Board of Registered Nursing (BRN) to license and  
             regulate the practice of nursing.

          2. Establishes the Board of Vocational Nursing and  
             Psychiatric Technicians (BVNPT) to license and regulate  
             the practice of vocational nursing and psychiatric  
             technicians.

          3. Provides for the certification and regulation of  
             certified nurse assistants under the Department of  
             Public Health.

          4. Requires, under the Nurse Practice Act, that every  
             employer of a registered nurse, including a nurse  
             registry to verify that the nurse is currently  
             authorized to practice.

          5. Establishes, in the Civil Code, the Employment Agency,  
             Employment Counseling, and Job Listing Services Act  
             (Act) to regulate the business of employment agencies,  
             including nursing registries.

          6. Requires every nurses' registry to maintain a $3,000  
             bond issued by a surety company admitted to do business  
             in this state and filed with the Secretary of State.








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          7. Requires a nurses' registry to provide a copy of the  
             registry's fee schedule and payment terms to any nurse  
             from whom a fee or deposit is to be received, prior to  
             the nurse being interviewed by the registry.

          8. States that it is the duty of the nurses' registry to  
             verify in writing the claims as to the experience or  
             training listed on the application and to keep a file of  
             those records in the nurse's folder within the nurses'  
             registry.  Specifies that it is also the duty of the  
             person interviewing the jobseeker to require the  
             jobseeker to exhibit his or her license as issued by the  
             BRN or the BVNPT with a notation to be made on the  
             application by the interviewer that the license has been  
             inspected and the date of expiration of the license.

          9. Requires every employment agency that refers licensed  
             nursing staff, certified nurse assistant, or temporary  
             licensed nursing staff to an employer who is a licensed  
             long-term health care facility to provide the employer  
             with specified information.

          10.Allows any facility or individual to refer complaints  
             concerning employment agencies which place licensed  
             nursing staff in long-term health care facilities to the  
             appropriate licensing, certification, ombudsman, adult  
             protective services, or law enforcement agency for  
             action.

          11.Defines health care facility to include general acute  
             care hospital, acute psychiatric hospital, skilled  
             nursing facility, or intermediate care facilities, as  
             specified.

          This bill:

          1. Requires agencies that refer licensed nursing staff for  
             temporary employment in health facilities, including  
             general acute care, acute psychiatric, and special  
             hospitals, to meet requirements similar to those that  
             apply to the referral of licensed nursing staff to  
             long-term care facilities. 

          2. Requires an employment agency that refers temporary  







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             staff for employment in a health facility, as defined,  
             to do the following: 

             A.    Adopt policies and procedures regarding prevention  
                of resident or patient abuse by temporary staff.

             B.    Verify that individuals referred to facilities are  
                licensed and in good standing, have successfully  
                completed the criminal record process required by the  
                applicable licensing board, have had health exams and  
                tuberculosis screening, as specified, and do not have  
                any unresolved allegations against them involving the  
                mistreatment, neglect, or abuse of a patient.

             C.    Provide, upon the request of the Department of  
                Public Health, a list of temporary employees who have  
                been referred to a specified health facility during  
                the period in which the facility is involved in a  
                labor action.

             D.    Provide that no licensed nursing staff referred by  
                an employment agency to a health facility may be  
                solely responsible for a unit unless that person has  
                received a full orientation to the facility and the  
                applicable unit for which he/she is assigned.

             E.    Require that any employee referred to a long-term  
                care facility be identified as a temporary staff  
                person in the facility's daily staffing levels  
                required to be posted, as specified. 

             F.    Comply with specified advertising requirements. 

          3. Requires an employment agency to report to the Board the  
             suspension or termination for cause by a health facility  
             of a licensed vocational nurse (LVN) or licensed  
             psychiatric technician (LPT) referred to the facility by  
             the agency. 

          4. Requires a health facility that makes a report of an  
             unfit nurse to send a copy of the report to the  
             employment agency that placed the relevant LVN or LPT  
             with the health facility. 








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          5. Makes any employment agency that violates any part of  
             this bill subject to a $5,000 penalty for each  
             violation, and up to $10,000 for each willful or knowing  
             violation and states that civil penalties may be  
             assessed and recovered through a civil action brought by  
             the Attorney General, by any district attorney, or any  
             city attorney. 

           Background  

           Nurse registries .  Current law defines a nursing registry  
          as a person who engages in the business of obtaining and  
          filling commitments for nursing services.  Nurse registries  
          contract out the services of registered nurses, vocational  
          nurses, psychiatric technicians or certified nurse  
          assistants to various employers and entities.  Nurse  
          registries, to operate in California, must maintain a  
          $3,000 surety bond, a copy of which is filed with the  
          Secretary of State.  Nurse registries may contract with any  
          private duty nurse, who serves as an agent of the registry  
          for purposes of assignment.  There is no regulatory  
          oversight of nurse registries in California, except when  
          nursing staff are referred to long-term health care  
          facilities, specified requirements must be met.

           Requirements for nursing registries at long-term health  
          care facilities  .  This bill requires employment agencies  
          that refer licensed nursing staff for temporary employment  
          in health facilities to meet similar requirements that  
          apply to the referral of licensed nursing staff to  
          long-term health care facilities.  AB 1643 (Negrete  
          McLeod), Chapter 326, Statutes of 2001,  established  
          existing requirements that nursing registries must meet in  
          order to refer temporary nursing staff to long-term health  
          care facilities.  The requirements of AB 1643 were adopted  
          at that time because of the recognition that no statutory  
          or regulatory rules exist for employment agencies that  
          refer temporary staff to long-term care facilities in  
          California.  At that time, there was evidence that  
          employment agencies have referred temporary staff without  
          verifying that these employees possess the necessary  
          qualifications, or are in good standing with the  
          appropriate licensing boards.  Similarly, the author of  
          this bill cites several lapses by nursing registries and  







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          the nurses that are referred to several facilities as a  
          justification for this bill.

           Failures of nursing registries  .  On December 5, 2009, the  
           Los Angeles Times  , in conjunction with Pro-Publica  
          published an article entitled "Temp Firms a Magnet for  
          Unfit Nurses."  The article pointed out that the nursing  
          registry industry is a $4-million industry lacking any  
          regulatory oversight.  The article provided several stories  
          on the lapses of nurses that are referred by nursing  
          registries to various facilities in California.   
          Specifically, the article pointed out that nurse registries  
          are failing in their obligation to conduct criminal  
          background checks, which have allowed the employment of  
          nurses whose licenses are revoked, placed on probation, and  
          have criminal histories.  Furthermore, nursing registries  
          are also failing to conduct competency assessment of  
          nursing staff, resulting in the referral of nurses with  
          inadequate nursing skills.  Additionally, the lack of a  
          reporting requirement for employers of nurses, including  
          hospitals and nurse registries, have allowed the shuffling  
          of nurses from one facility to another facility, often  
          undetected and to the detriment of patients.  The article  
          asserted that these failures are especially critical to  
          states like California where nurses are in short supply.

           Lack of employer reporting requirement for nurses; a  
          barrier to patient care  .  As the  Los Angeles Times  article  
          pointed out, the lack of reporting requirements for  
          employers of problem nurses has resulted in the shuffling  
          of errant nurses from one facility to another.  Unlike  
          nurses, employers of vocational nurses and psychiatric  
          technicians are required to report to the BVNPT any  
          suspension or termination for cause resulting from any of  
          the following:  (1) use of controlled substances or alcohol  
          to such an extent that it impairs the licensee's ability to  
          safely practice, (2) unlawful sale of controlled substances  
          or other prescription items, (3) patient or client abuse,  
          neglect, physical harm, or sexual contact with a patient or  
          client, (4) falsification of medical records, (5) gross  
          negligence or incompetence, and (6) theft from patients or  
          clients, other employees, or the employer.  

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    







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          Local:  Yes

          According to the Assembly Appropriations Committee, this  
          bill will create unknown fee-supported workload of less  
          than $50,000 to the Board of Registered Nursing and the  
          Board of Vocational Nursing and Psychiatric Technicians,  
          combined, to comply with oversight of increased reporting  
          of license suspensions and terminations. 

           SUPPORT  :   (Verified  8/25/10)

          AMN Healthcare, Inc.


           ARGUMENTS IN SUPPORT  :    The author's office cites that  
          there are 3,000 to 6,000 temporary nurse staffing agencies  
          nationwide.  Additionally, 19,000 licensed registered  
          nurses in California service as temporary nurses.   
          According to the author's office, the health care staffing  
          industry is poorly regulated and acts as a haven for  
          problem nurses.  There is no regulatory oversight of nurse  
          registries in California except when nursing staff are  
          referred to long-term health care facilities.  The author's  
          office states that this bill seeks to address this problem  
          by requiring agencies that refer licensed nursing staff for  
          temporary employment in health facilities, including  
          general acute care, acute psychiatric, and special  
          hospitals to meet background check requirements similar to  
          those that apply to the referral of licensed nursing staff  
          to long-term care facilities.  This bill also requires an  
          employment agency to report to the Board the suspension or  
          termination for cause by a health facility of a licensed  
          vocational nurse or psychiatric technician referred to the  
          facility by the agency, which will ensure that problem  
          nurses are not continually referred to health facilities. 


          CTW:mw  8/30/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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