BILL ANALYSIS                                                                                                                                                                                                    �







         ----------------------------------------------------------------------- 
        |Hearing Date:January 9, 2012       |Bill No:SB                         |
        |                                   |122                                |
         ----------------------------------------------------------------------- 


                      SENATE COMMITTEE ON BUSINESS, PROFESSIONS 
                               AND ECONOMIC DEVELOPMENT
                          Senator Curren D. Price, Jr., Chair
                                           

                          Bill No:        SB 122Author:Price
                     As Amended:January 4, 2012         Fiscal:Yes

        
        SUBJECT:   Nursing.
        
        SUMMARY:  Makes changes to the requirements for approval of a school 
        of nursing by the Board of Registered Nursing (BRN).  They include:  
        (1) Granting the BRN authority to be the only agency responsible for 
        approving schools of nursing and to receive an appropriate fee from 
        applicants and for renewal of the school of nursing's authorization;  
        and, (2) Requiring that a school of nursing must be accredited by an 
        accrediting agency recognized by the U.S. Department of Education.

        Existing law, the Business and Professions Code (BPC):
        
        1) Provides for the regulation of various health professions by 
           regulatory boards within the Department of Consumer Affairs 
           (DCA). 

        2) Establishes the Nursing Practice Act which provides for the 
           certification and regulation of registered nurses, nurse 
           practitioners and advanced practice nurses by the BRN within 
           the DCA.   

        3) Specifies that the BRN consists of nine members and that as of 
           January 1, 2012, the BRN   sunsets and its statutory authorization 
           becomes inoperative and is repealed. (BPC � 2701) 

        4) Specifies that the provision which provides for the appointment of 
           the Executive Officer for the BRN is also repealed as of January 1, 
           2012.  (BPC � 2708)

        5) Specifies that an approved school of nursing is one that has been 





                                                                         SB 122
                                                                         Page 2



           approved by the BRN, gives the course of instruction approved by 
           the BRN, covering not less than two academic years, is affiliated 
           or conducted in connection with one or more hospitals, and is an 
           institution of higher education or is affiliated with an 
           institution of higher education. (BPC � 2786 (a))

        6) Defines "institution of higher education" as community colleges 
           offering an associate of arts or associate of science degree and 
           private postsecondary institutions offering an associate of arts or 
           associate of science degree.  (BPC � 2786 (a))

        7) Requires that a school of nursing that is not an "institution of 
           higher education," as defined, shall make an agreement with an 
           institution of higher education in the same general location to 
           grant an associate of arts or associate of science degree to 
           individuals who graduate from the school of nursing or to grant a 
           baccalaureate degree with successful completion of an additional 
           course of study as approved by the BRN and the institution 
           involved.  
        (BPC � 2786 (a))

        8) Provides that the BRN shall determine by regulation the required 
           subjects of instruction in an approved school of nursing and the 
           amount of clinical experience necessary.  
        (BPC � 2786 (b)) 

        9) Specifies that it shall be the duty of the BRN, through its 
           executive officer, to inspect all schools of nursing in this state 
           at such times as the BRN shall deem necessary, and if it is found 
           that a school is not maintaining the standard(s) required by the 
           BRN, then the BRN may request the defects to be corrected and if 
           not corrected then the BRN may remove them from the approved list.  
           (BPC � 2788) 

        10)Provides that it is unlawful for anyone to conduct a school of 
           nursing unless the school has been approved as an accredited school 
           by the BRN, or is exempt as specified.  
        (BPC �� 2789, 2798)
        
        Existing law, the Education Code (EC):

        1)Establishes the Bureau of Private Postsecondary Education (BPPE) 
          within the Department of Consumer Affairs (DCA) and provides for 
          Bureau oversight and regulation of California private postsecondary 
          institutions pursuant to the Private Postsecondary Education Act of 
          2009 (PPE Act), including a school of nursing that is not accredited 





                                                                         SB 122
                                                                         Page 3



          by accrediting agencies affiliated with the Western Association of 
          Schools and Colleges (WASC) or regional accrediting agencies 
          recognized by the United States Department of Education.  (EC � 
          94820)

        2)Establishes numerous unfair business practices for institutions 
          covered by the PPE Act, including prohibiting an institution from 
          promising employment or otherwise overstating the availability of 
          jobs or making untrue or misleading statements regarding student 
          completion, placement or expected salary rates.  (EC � 94897)

        3)Sets forth certain disclosure requirements pertaining to completion, 
          placement, licensure, and earning potential.  (EC � 94910)

        This bill:

        1) Clarifies that an "  institution of higher education  " includes, but 
           is not limited to, community colleges and private postsecondary 
           institutions offering an associate of arts, associate of science, 
           or baccalaureate degree or an entry-level master's degree, and is 
           an institution that is  not  subject to the PPE Act. 

        2) Specifies that a school of nursing that is  not an institution of 
           higher education  , or affiliated with an institution of higher 
           education shall be subject to specified requirements set forth in 
           the PPE Act, and shall be approved by the BRN (not the BPPE).

        3) Would subject a school of nursing or a new nursing program seeking 
           approval by the BRN to the following fee schedule:

                a)        A fee of $5,000 for approval of a nursing program.

                b)        A fee of $3,500 for continuing approval of a new 
                  nursing program.

                c)        A fee of $500 for processing authorization of a 
                  substantive change to an approval of a school of nursing.

        4) Requires  new  nursing schools seeking BRN approval to be recognized 
           or approved by an accrediting agency recognized by the U.S. 
           Department of Education.  

        5) Requires the BRN to hold its meetings in the northern and southern 
           parts of the state.







                                                                         SB 122
                                                                         Page 4



        FISCAL EFFECT:  Unknown.  This bill is keyed "'fiscal" by Legislative 
        Counsel.

        COMMENTS:
        
        1. Purpose.  This measure is sponsored by the Author.  According to 
           the Author, in 2011, this Committee conducted oversight hearings to 
           review 7 boards:  the Board of Registered Nursing, the Board of 
           Vocational Nursing and Psychiatric Technicians, the Dental Board of 
           California, the Board of Accountancy, the Contractors State License 
           Board, the Board for Professional Engineers, Land Surveyors and 
           Geologists, the California Architects Board (and the Landscape 
           Architects Committee).  The Committee also reviewed the Athletic 
           Commission and the Professional Fiduciaries Bureau and conducted 
           oversight hearings of the Department of Real Estate and the Office 
           of Real Estate Appraisers.  The Committee began its review of these 
           licensing agencies in March of 2011, and conducted three days of 
           hearings.  Sunset bills were amended to implement legislative 
           changes as recommended in the Committee's Background/Issue Papers 
           for all of the agencies reviewed by the Committee last year.  

        SB 538 was one of the  seven  "sunset bills" authored by the Chair of 
           this Committee.  The primary purpose of this measure was to extend 
           the sunset date of the BRN to January 1, 2016, and to also make 
           necessary statutory changes based on the review of the BRN by this 
           Committee on March 14, 2011.  The changes related to the approval 
           of a school of nursing were intended to give the BRN complete 
           authority over the approval process for nursing schools and 
           eliminate any duplication for approval by the BPPE.  It also 
           provided for the offset of those costs to the BRN in both approving 
           and providing for the ongoing oversight of nursing schools and 
           programs.

        SB 538 was vetoed by the Governor for reasons other than the changes 
           proposed which are related to the approval by the BRN of nursing 
           schools and programs.  One of the provisions provided in SB 538 
           allowed for more flexibility in the hiring of peace officer 
           investigators by the BRN.  The Governor's veto measure argued that 
           this would be contrary to his efforts on pension reform due to the 
           higher benefits that would be accorded to those provided a peace 
           officer classification.  For this reason the measure was vetoed.  
           SB 122 does not contain any of the provisions related to peace 
           officer investigators.

       2.Background.  The BRN is responsible for regulating the practice of 
          registered nurses (RNs) in California.  Currently, there are almost 





                                                                         SB 122
                                                                         Page 5



          380,000 licensed RNs in California, with over 23,000 new licenses 
          issued annually, and more than 170,000 licenses renewed annually.  
          The BRN also regulates interim permittees, i.e., applicants who are 
          pending licensure by examination, and temporary licensees, i.e., 
          out-of-state applicants who are pending licensure by endorsement.  
          The interim permit allows the applicant to practice while under the 
          supervision of an RN while awaiting examination results.  Similarly, 
          the temporary license enables the applicant to practice registered 
          nursing pending a final decision on the licensure application.  The 
          BRN also issues certificates to Clinical Nurse Specialists, Nurse 
          Anesthetists, Nurse Practitioners, Nurse-Midwives and Public Health 
          Nurses.  These titles are those most commonly used by the California 
          RNs and use of the titles is protected under the Business and 
          Professions Code. 

       The BRN also issues furnishing numbers to nurse practitioners and nurse 
          midwives to administer prescriptions and lists psychiatric/mental 
          health nurses.  In addition to its licensing and certification 
          functions, the BRN also regulates and approves the following 
          entities:

               California Pre-licensure Registered Nursing Programs.
               Nurse-Midwifery Programs.
               Nurse Practitioner Programs.
               Registered Nursing Continuing Education Providers.

           The BRN is responsible for implementation and enforcement of the 
           Nursing Practice Act; the laws and regulations related to nursing 
           education, licensure, practice and discipline.  The BRN implements 
           regulatory programs and performs a variety of activities to protect 
           the public.  These programs and activities include, setting 
           registered nurse educational standards for pre-licensure and 
           advanced practice nursing programs, issuing and renewing registered 
           nurse licenses, issuing certificates for advanced practice nurses 
           and public health nurses, taking disciplinary action for violation 
           of the Nursing Practice Act, and managing a Diversion Program for 
           registered nurses whose practice may be impaired due to chemical 
           dependency or mental illness.

           The BRN also recognizes registered nursing is an integral component 
           of the health care delivery system. The BRN affects public policy 
           by collaborating and interacting with legislators, consumers, 
           health care providers, health care insurers, professional 
           organizations, and other state agencies.  The BRN takes a proactive 
           role in structuring health care and evaluating nursing trends in 
           order to make sound policy decisions.  According to the BRN, this 





                                                                         SB 122
                                                                         Page 6



           enhances the Board's ability to interpret the Nursing Practice Act 
           and establish policies for its regulatory programs and activities, 
           which are then implemented by the BRN staff.

           Due to the veto of SB 538, and the sunset of the BRN as of January 
           1, 2012, the 9 members of the BRN have been eliminated.  The 
           Governor does intend, however, to immediately reconstitute the BRN 
           in January of 2012.  In the meantime, the Governor, the former BRN 
           and the DCA have entered into an "Interagency Agreement" for the 
           DCA and its Director to assume the responsibilities, powers and 
           duties as permitted by law.

        1. This Measure is Intended to Include the Following Statutory Changes 
           as Identified by This Committee During Its Oversight Hearings of 
           March, 2011 and Included in the Prior Version of SB 538:
        
                a)        Grants the BRN authority to be the  only  agency 
                  responsible for approving schools of nursing.  Approval of 
                  pre-licensure nursing programs is an integral component of 
                  the BRN's operation.  The purpose of approval is to ensure 
                  the program's compliance with statutory and regulatory 
                  requirements.  Approval of advanced practice nursing (i.e., 
                  nurse practitioner and nurse-midwifery) programs is 
                  voluntary and at the request of the program.  BRN approval 
                  of advanced practice programs is advantageous to program 
                  graduates because it facilitates their obtaining BRN 
                  certification as a nurse practitioner or nurse-midwife.  
                  Currently, there are 148 approved pre-licensure nursing 
                  programs and 26 approved advanced practice nursing programs, 
                  as follows:

                 Pre-licensure Programs
                             90 associate degree (ADN)
                             39 baccalaureate degree programs (BSN)  
                             19 entry-level master's degree programs (ELM)
                             110 Public Programs  
                              38 Private Programs  
                          
                   Advanced Practice Nursing Programs
                             22 nurse practitioner programs
                             4 nurse-midwifery programs

                  The approval process begins with a  Letter of Intent  from the 
                  school or institution of higher education which is trying to 
                  establish and offer a nursing program and must be submitted 
                  at least one year in advance of the anticipated date for 





                                                                         SB 122
                                                                         Page 7



                  admission of students.  After a Letter of Intent is 
                  submitted, the applicant must then submit a  Feasibility 
                  Study  to the BRN documenting the need for the program and 
                  the program applicant's ability to develop, implement, and 
                  sustain a viable pre-licensure RN program.  The feasibility 
                  study is rather extensive and usually requires the applicant 
                  to seek the assistance of a consultant familiar with 
                  providing the information needed by the BRN in determining 
                  the feasibility of the program.  Once the feasibility study 
                  is accepted by the BRN, the program applicant must then 
                  appoint a  Program Director  .  The Program Director will have 
                  responsibility for preparing a  Self-Study  for the proposed 
                  program and coordinate any site visits by the BRN.  The 
                  Self-Study describes how the proposed program plans to 
                  comply with all BRN nursing program related rules and 
                  regulations.  The BRN will assign a  Nursing Education 
                  Consultant  (NEC) who verifies that the Self-Study 
                  satisfactorily addresses the rules and regulations regarding 
                  a nursing program, and will also make on-site visits where 
                  the program will be maintained and the selected clinical 
                  sites.  Once the Self-Study is completed, the NEC will then 
                  complete a report to be submitted to the BRN and recommend 
                  that the BRN either grant or deny approval, or defer action 
                  to grant the program additional time to resolve areas of 
                  noncompliance.  Once the program is approved by the BRN, it 
                  receives a certificate of approval.

                  An applicant of a private postsecondary school or program 
                  must then go through a secondary process that requires 
                  approval from the Bureau of Private Postsecondary Education 
                  (BPPE) if they are not accredited by the Western Association 
                  of Schools and Colleges (WASC) or by a Regional accreditor.  
                  This approval process can also take some time to complete 
                  and it is not clear what advantage it provides in performing 
                  similar requirements for feasibility and self-study which 
                  are already required by the BRN.  (It should be noted that 
                  currently both the Medical Board of California and the 
                  Dental Board are the only agencies that respectively approve 
                  either medical schools or dental schools in California, as 
                  well as other states and in foreign countries.)

                  The BRN indicated that the average length of time from 
                  beginning to completing the initial BRN approval process is 
                  about 18 months, but there have been instances in which this 
                  approval process has taken almost four to five years for 
                  particular programs, especially if they are private 





                                                                         SB 122
                                                                         Page 8



                  postsecondary schools.  Data has shown that these schools 
                  are a growing sector in the training of health care workers. 
                   From 2001 to 2009, the percentage of nursing degrees 
                  awarded by private postsecondary schools throughout the U.S. 
                  grew from 4 % to 11 % of the national total, while nursing 
                  awards from public colleges shrank from 78 to 70%.  In 
                  California, the share of public nursing programs has 
                  decreased from its high of 85.6% to its current share of 
                  76.1%.  It is anticipated that this growth of private 
                  nursing programs will continue, particularly in California.  
                  Private programs in California grew from just 14 programs in 
                  2001, to now over 38 in 2010.  Also, student enrollment grew 
                  from 951 students in 2001, to 4,607 in 2010.

                  It was indicated in this Committee's Report, that the 
                  involvement of the BPPE in the approval of nursing school 
                  programs seems unnecessary and therefore the BRN should 
                  assume  all  responsibility regarding approval of these 
                  programs.  In doing so, the BRN should be given authority to 
                  charge an appropriate fee to cover their costs for reviewing 
                  documents, consulting with the program and conducting site 
                  visits.  This fee should be similar to fees currently 
                  assessed by the BPPE for approval of school programs.  
                  Current student protections provided under the Act will 
                  continue to apply to those nursing programs which are 
                  currently approved by BPPE and the BRN would now assume the 
                  responsibility of responding to student complaints regarding 
                  a nursing program.

                a)        It is intended that this measure will authorize the 
                  BRN to issue a cease and desist order to a school of nursing 
                  that has not been approved by the BRN and to inform the 
                  Attorney General of a school which continues to operate 
                  illegally.  As indicated, the BRN has primary responsibility 
                  for approval of pre-licensure nursing programs and when a 
                  program is  not   approved  it is not permitted to operate in 
                  California and should not be able to open its doors to 
                  potential nursing students.  The BRN provides a notice on 
                  its Website about the increasing number of "unaccredited" 
                  nursing programs within California.  The BRN's notice 
                  indicates that they will not qualify an applicant to take 
                  the National Council Licensing Examination (NCLEX), for 
                  nursing students, or to be licensed, after completion of an 
                  "unaccredited" nursing program.  "If any portion of the 
                  instruction is completed at or through an unapproved 
                  program, it is considered unaccredited," as stated by the 





                                                                         SB 122
                                                                         Page 9



                  BRN.  The BRN goes on to explain some of the indicators of a 
                  program that may be unaccredited and to caution students to 
                  verify whether such a program is accredited by seeing the 
                  listing of the BRN's Website of approved nursing programs.  
                  The BRN also specifically lists those programs which are 
                  "approved."  However, it does not appear as if it lists 
                  those programs which may have not been approved by the BRN. 

                According to this Committee's Report, the efforts of the BRN 
                  to only inform students of "unaccredited" programs may not 
                  be sufficient.  Recently, there was a nursing program that 
                  continued to operate for over two years, even though the BRN 
                  did not grant approval and in 2007 had ordered the school to 
                  close.  As many as 300 students paid $20,000 each to enroll 
                  and attend classes at this school, some attending for over 
                  two years.  If potential students had checked the BRN 
                  Website they would  not  have found this school listed as an 
                  approved program, but sadly many potential students do not 
                  know that the BRN provides this information and warning.  
                  The AG was able to assure that the institution was finally 
                  shut down and reached a settlement agreement with the owner 
                  and operators of the school for $500,000 as restitution to 
                  the former students.  According to the then AG, Edmund G. 
                  Brown, Jr., this sham nursing school created "the illusion 
                  it was training future nurses by pretending to offer an 
                  accredited nursing program and tricking graduates into 
                  believing they had qualified to become nurses." 
             
                  The Committee Report indicated that something must be done 
                  to assure that once the BRN has decided that a program 
                  should not operate in California, that school does not then 
                  find a way to open its doors to students who ultimately 
                  spend two to three years of their lives in a school they 
                  think will qualify them to be a nurse, which sadly will not. 
                   Better communication between the BRN and the AG's Office 
                             and the BRN revisiting the school site may be an option.  It 
                  was recommended that the BRN must work more closely with the 
                  AG's Office and perform site visits to assure that a nursing 
                  program which is  not  approved does not somehow continue to 
                  operate in California.  There must be a requirement for it 
                  to cease and desist operation and there must be an IMMEDIATE 
                  shut down of this program if it continues to operate so that 
                  students are not ultimately deceived and waste precious 
                  years of their lives attending a bogus program.

                  Although the language to authorize the BRN to issue a cease 





                                                                         SB 122
                                                                         Page 10



                  and desist order to a school operating unlawfully without 
                  BRN approval and to the notify the AG of the existence of 
                  such a school, is  not  provided within this measure, the 
                  Author indicates that it was an omission by Legislative 
                  Counsel in the drafting of this bill.  The Author proposes 
                  including this language which was contained in the prior SB 
                  538.

                b)        Requires Accreditation for Nursing Schools in 
                  California.  A recent report of the Center for American 
                  Progress (CAP) indicates that there are about 19 
                  institutional accrediting organizations in the United States 
                  that accredit around 7,000 institutions, both for-profit and 
                  nonprofit.  These private organizations stress a voluntary 
                  system of quality control.  The idea that higher education 
                  institutions should be primarily responsible for their own 
                  quality is a core principle of institutional accreditation, 
                  according to the Council for Higher Education Accreditation, 
                  the leading voice for voluntary accreditation.  The 
                  accreditation process is built around the idea that an 
                  institution's mission should be the touchstone for judging 
                  academic quality.  For instance, accreditors ask whether the 
                  academic programs are of sufficient quality and integrity to 
                  achieve the institution's mission and similarly whether the 
                  institution maintains a faculty to fulfill the mission in 
                  terms of qualification, numbers, and performance.  However, 
                  the fact that an institution is accredited does not 
                  guarantee the quality of the individual programs, course, or 
                  graduates.  The CAP explains that program accreditation 
                  differs from institutional accreditation in that it looks 
                  more closely at the delivery of education within the 
                  discipline.  The U.S. Department of Education recognizes 
                  more than 40 program accrediting agencies, including at 
                  least 25 agencies that accredit health-related programs.  
                  The Council for Higher Education Accreditation recognizes at 
                  least 61 agencies.  The Commission on Collegiate Nursing 
                  Education and the National League for Nursing Accrediting 
                  are two of the independent accreditors for nursing programs. 
                   They both require programs to meet requirements related to 
                  mission, administrative capacity, faculty and staff, 
                  students, curriculum, clinical training, resources and 
                  outcomes.  The CAP states that institutional and program 
                  accreditation certainly ensures some basic level of quality 
                  in educational institutions.  However, the relationship 
                  between program accreditation and institutional 
                  accreditation is complicated and it is not often clear to 





                                                                         SB 122
                                                                         Page 11



                  students.  Nursing students can find themselves at a serious 
                  disadvantage if they are enrolled in a program which is not 
                  accredited or has accreditation which is not readily 
                  recognized by other schools.  The critical factor for 
                  students attending accredited institutions is the ability to 
                  transfer academic credits from one nursing program to 
                  another to complete their pre-licensure education, and for 
                  registered nurses who wish to pursue additional 
                  education/degrees.  In addition to impeding students' 
                  academic progress, the inability to transfer academic 
                  credits also creates a financial burden for students by 
                  requiring that they pay twice for the same courses.  The 
                  Committee Report recommended that the BRN should carefully 
                  consider a requirement for all nursing programs to be 
                  accredited in light of recent legal decisions and actions 
                  taken by other nursing boards, and by the Legislature, in 
                  dealing with the issue of which accrediting organizations 
                  would be recognized, and that it should also carefully 
                  consider a timeline for implementing such a requirement so 
                  as to not severely impact existing programs or those 
                  programs which may be approved by the BRN in the near 
                  future.

                The BRN adopted a motion and has recommended requiring 
                  accreditation for nursing programs provided in California 
                  pursuant to discussions by its Education/Licensing Committee 
                  and the full board.  The reasons stated by the BRN are:

                              Accreditation is in the public interest.
                              Is a requirement for other types of heath care 
                     professionals' education.
                              Assures the quality of the institution.
                              Provides consistent standards.
                              Increases the potential for transferability of 
                     units.
                              Ensures that the institution provides an 
                     environment that supports broad education and 
                     intellectual stimulation.
                              Facilitates students' access to financial aid. 

        1. Related Legislation.   SB 538  (Price, 2011) extended the inoperative 
           and repeal date (sunset date) of the BRN, and made several other 
           changes as were recommended in the Committee Report of the BRN.  
           The provisions provided in this measure, which are related to the 
           approval process of schools of nursing by the BRN, are identical to 
           those provisions which were contained in SB 538 of last year which 





                                                                         SB 122
                                                                         Page 12



           was vetoed by the Governor.   As indicated, the veto of this 
           measure was unrelated to these provisions. 

        2. Author's Amendment Due to Omission of Legislative Counsel.  The 
           Author is proposing an amendment which would include language which 
           was inadvertently omitted by Legislative Counsel in the drafting of 
           this measure.  A mock-up of this measure has been provided with 
           language that was included in SB 538 and which the Author would now 
           like to include as part of this measure.   The additional language 
           would authorize the BRN to issue a cease and desist order to a 
           school of nursing that has not been approved by the BRN and to 
           inform the Attorney General of a school which continues to operate 
           illegally  .
        

        SUPPORT AND OPPOSITION:
        
         Support:  

        None Received as of January 4, 2012.

         Opposition:  

        None Received as of January 4, 2012.



        Consultant:Bill Gage