BILL NUMBER: SB 538	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 25, 2011
	AMENDED IN SENATE  MARCH 21, 2011

INTRODUCED BY   Senator Price

                        FEBRUARY 17, 2011

   An act to amend Sections  2701 and 2708 of  
160, 2701, 2708, 2786, and   2798 of, and to add Sections
2770.15, 2786.2, and 2786.5 to,  the Business and Professions
Code,   to amend Section 16310 of the Government Code, and to
amend Section 830.3 of the Penal Code,   relating to nursing
 , and making an appropriation therefor  .


	LEGISLATIVE COUNSEL'S DIGEST


   SB 538, as amended, Price. Nursing. 
   Existing law provides for the regulation of various professions
and vocations by regulatory boards within the Department of Consumer
Affairs. Existing law creates in the department a Division of
Investigation and authorizes the Director of Consumer Affairs to
employ investigators, inspectors, and deputies as are necessary to
investigate and prosecute all violations of any law the enforcement
of which is charged to the department or to any board in the
department. Inspectors used by the boards are not required to be
employees of the Division of Investigation, but may be employees of,
or under contract to, the boards. Investigators of the Division of
Investigation and of the Medical Board of California and the Dental
Board of California have the authority of peace officers. Those
entities are also authorized to employ individuals who are not peace
officers to provide investigative services.  
   This bill would extend the application of those provisions to the
Board of Registered Nursing. The bill would make conforming changes
to related provisions. 
   Existing law, until January 1, 2012, creates within the Department
of Consumer Affairs the Board of Registered Nursing, and provides
for the board to select an executive director. Under existing law,
boards scheduled for repeal are required to be evaluated by the Joint
Sunset Review Committee of the Legislature.
   This bill would extend the operation of these provisions until
January 1, 2016, and would specify that the board is subject to
review by the appropriate policy committees of the Legislature. 
   Existing law requires the Board of Registered Nursing to establish
criteria for the acceptance, denial, or termination of licentiates
in a diversion program for the rehabilitation of licensees. 

   This bill would require the Bureau of State Audits to audit the
diversion program of the board, upon a specified request by the
Legislature, to be funded by nongeneral fund moneys from the Board of
Registered Nursing Fund.  
   Existing law requires the board to approve and regulate registered
nursing schools that are institutions of higher education or are
affiliated with an institution of higher education, as specified.
Existing law requires a school of nursing that is not affiliated with
an institution of higher education to make an agreement with such an
institution for purposes of awarding nursing degrees.  
   This bill would instead subject a school of nursing that is not an
institution of higher education or affiliated with an institution of
higher education to the requirements set forth in the Private
Postsecondary Education Act of 2009, and would subject all approved
institutions of higher education and those schools to specified fees
for deposit into the Board of Registered Nursing Fund, a continuously
appropriated fund. The bill would also impose an annual fee, payable
to the Bureau of Private Postsecondary Education, for deposit into
the Private Postsecondary and Vocational Education Administration
Fund. Because the bill adds a new source of revenue to a continuously
appropriated fund, the bill would make an appropriation.  
   Existing law provides that it is unlawful for anyone to conduct a
school of nursing unless the school has been approved by the board.
 
   This bill would authorize the board to issue cease and desist
orders to a school of nursing that is not approved by the board and
would require the board to notify the office of the Attorney General
of such a school. The bill would also provide that it is
unprofessional conduct for any registered nurse to violate that
provision.  
   Under circumstances in which the General Fund in the State
Treasury is or will be exhausted, existing law authorizes the
Governor to order the Controller to direct the transfer of all or any
part of the moneys not needed in other funds or accounts to the
General Fund from those funds or accounts. Existing law provides that
all moneys so transferred shall be returned to the funds or accounts
from which they were transferred as soon as there are sufficient
moneys in the General Fund to return them. Existing law prohibits the
transfer of those loans if the transfer will interfere with the
object for which a special fund was created or any transfer from the
Central Valley Water Project Construction Fund, the Central Valley
Water Project Revenue Fund, or the California Water Resources
Development Bond Fund.  
   This bill would add the Board of Registered Nursing Fund to the
enumerated funds for which a transfer may not be made to the General
Fund under the above circumstances. 
   Vote: majority. Appropriation:  no   yes
. Fiscal committee: yes. State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 160 of the   Business
and Professions Code   is amended to read: 
   160.  (a) The Chief and  all   , designated
 investigators of the Division of Investigation of the
department  and all   , designated 
investigators of the Medical Board of California  and
  , designated investigators of  the Dental Board
of California  ,   and designated investigators of the
Board of Registered Nursing  have the authority of peace
officers while engaged in exercising the powers granted or performing
the duties imposed upon them or the division in investigating the
laws administered by the various boards comprising the department or
commencing directly or indirectly any criminal prosecution arising
from any investigation conducted under these laws. All persons herein
referred to shall be deemed to be acting within the scope of
employment with respect to all acts and matters set forth in this
section.
   (b) The Division of Investigation of the department, the Medical
Board of California,  and  the Dental Board of
California  , and the Board of Registered Nursing  may
employ individuals  ,  who are not peace officers
 ,  to provide investigative services.
   SECTION 1.   SEC. 2.   Section 2701 of
the Business and Professions Code is amended to read:
   2701.  (a) There is in the Department of Consumer Affairs the
Board of Registered Nursing consisting of nine members.
   (b) Within the meaning of this chapter, board, or the board,
refers to the Board of Registered Nursing. Any reference in state law
to the Board of Nurse Examiners of the State of California or
California Board of Nursing Education and Nurse Registration shall be
construed to refer to the Board of Registered Nursing.
   (c) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date. Notwithstanding any other provision of law, the repeal of
this section renders the board subject to review by the appropriate
policy committees of the Legislature.
   SEC. 2.   SEC. 3.   Section 2708 of the
Business and Professions Code is amended to read:
   2708.  (a) The board shall appoint an executive officer who shall
perform the duties delegated by the board and who shall be
responsible to it for the accomplishment of those duties.
   (b) The executive officer shall be a nurse currently licensed
under this chapter and shall possess other qualifications as
determined by the board.
   (c) The executive officer shall not be a member of the board.
   (d) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.
   SEC. 4.    Section 2770.15 is added to the  
Business and Professions Code   , to read:  
   2770.15.  (a) If requested by the Legislature through the Joint
Legislative Audit Committee in 2012, the Bureau of State Audits shall
conduct a thorough performance audit of the board's diversion
program to evaluate the effectiveness and efficiency of the program,
and make recommendations regarding the continuation of the program
and any changes or reforms required to ensure that licensees
participating in the program are appropriately monitored and that the
public is protected from licensees who are impaired due to alcohol
or drug abuse or mental or physical illness. The audit shall be
completed by January 1, 2013. The board and its staff shall cooperate
with the audit, and the board shall provide data, information, and
case files as requested by the auditor to perform all of its duties.
The provision of confidential data, information, and case files by
the board to the auditor shall not constitute a waiver of any
exemption from disclosure or discovery or of any confidentiality
protection or privilege otherwise provided by law that is applicable
to the data, information, or case files.
   (b) The audit performed under subdivision (b) shall be paid for
with nongeneral fund moneys from the Board of Registered Nursing
Fund. 
   SEC. 5.    Section 2786 of the   Business
and Professions Code   is amended to read: 
   2786.  (a) An approved school of nursing is one that has been
approved by the board, gives the course of instruction approved by
the board, 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. For purposes of this section, "institution of
higher education" includes, but is not limited to, 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   , or baccalaureate degree  .  An
approved 
    (b)     A  school of nursing that is
not an institution of higher education  shall make an
agreement with an institution of higher education in the same general
location   or affiliated with an institution of higher
education, and is subject to the Private Postsecondary Education Act
of 2009, Chapter 8 (commencing with Section 94800)   of Part
59 of Division 10 of Title 3 of the Education Code, shall be
approved by the board  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 in nursing with
successful completion of an additional course of study as approved by
the board and the institution involved. 
   (b) 
    (c)    The board shall determine by regulation
the required subjects of instruction to be completed in an approved
school of nursing for licensure as a registered nurse and shall
include the minimum units of theory and clinical experience necessary
to achieve essential clinical competency at the entry level of the
registered nurse. The board's standards shall be designed to
encourage all schools to provide clinical instruction in all phases
of the educational process. 
   (c) 
    (d)    The board shall perform or cause to be
performed an analysis of the practice of the registered nurse no less
than every five years. Results of the analysis shall be utilized to
assist in the determination of the required subjects of instruction,
validation of the licensing examination, and assessment of the
current practice of nursing.
   SEC. 6.    Section 2786.2 is added to the  
Business and Professions Code   , to read:  
   2786.2.  All private postsecondary schools approved by the board
pursuant to subdivision (b) of Section 2786 shall comply with Article
8 (commencing with Section 94897) to Article 16 (commencing with
Section 94928), inclusive, of, and shall be subject to Article 18
(commencing with Section 94932) of, Chapter 8 of Part 59 of Division
10 of Title 3 of the Education Code. The board shall ensure
compliance with these provisions and shall be responsible for the
handling of student complaints regarding these approved schools of
nursing. 
   SEC. 7.    Section 2786.5 is added to the  
Business and Professions Code   , to read:  
   2786.5.  (a) An institution of higher education or a private
postsecondary school approved by the board pursuant to subdivision
(b) of Section 2786 shall remit to the board for deposit in the Board
of Registered Nursing Fund the following fees, in accordance with
the following schedule:
   (1) Application fee for an approval to operate: five thousand
dollars ($5,000).
   (2) Renewal fee for the institution: three thousand five hundred
dollars ($3,500).
   (3) Processing fee for authorization of a substantive change to an
approval to operate: five hundred dollars ($500).
   (b) In addition to any fees paid to the board pursuant to
paragraphs (1) to (3), inclusive, each school that is approved to
operate pursuant to subdivision (b) of Section 2786 shall remit an
annual institutional fee to the Bureau for Private Postsecondary
Education, in an amount equal to three-quarters of 1 percent of the
school's annual revenues derived from students in California, but not
exceeding a total of twenty-five thousand dollars ($25,000)
annually, to be deposited in the Private Postsecondary and Vocational
Education Administration Fund.
   (c) If the board determines that the annual cost of providing
oversight and review of an institution, as required by this article,
is less than the amount of any fees required to be paid by that
institution pursuant to this article, the board may decrease the fees
applicable to that institution to an amount that is proportional to
the board's costs associated with that institution. 
   SEC. 8.    Section 2798 of the   Business
and Professions Code   is amended to read: 
   2798.  (a)    It is unlawful for anyone to
conduct a school of nursing unless the school has been approved
 as an accredited school  by the board. 
   This  
   (b) If the board has a reasonable belief, either by complaint or
otherwise, that a school is allowing students to apply for its
nursing program and that nursing program does not have the approval
of the board, the board shall immediately order the school to cease
and desist from offering students the ability to enroll in its
nursing program. The board shall also notify the Attorney General's
office that the school is offering students the ability to enroll in
a nursing program that does not have the approval of the board. 

   (c) It shall be unprofessional conduct for any registered nurse to
violate or attempt to violate, either directly or indirectly, or to
assist or abet the violation of, this section. 
    (d)     This  section is not
applicable to schools conducted under Section 2789 of this chapter.
   SEC. 9.    Section 16310 of the   Government
Code   is amended to read: 
   16310.  (a) When the General Fund in the Treasury is or will be
exhausted, the Controller shall notify the Governor and the Pooled
Money Investment Board. The Governor may order the Controller to
direct the transfer of all or any part of the moneys not needed in
other funds or accounts to the General Fund from those funds or
accounts, as determined by the Pooled Money Investment Board,
including the Surplus Money Investment Fund or the Pooled Money
Investment Account. All moneys so transferred shall be returned to
the funds or accounts from which they were transferred as soon as
there are sufficient moneys in the General Fund to return them. No
interest shall be charged or paid on any transfer authorized by this
section, exclusive of the Pooled Money Investment Account, except as
provided in this section. This section does not authorize any
transfer that will interfere with the object for which a special fund
was created or any transfer from the  Board of Registered
Nursing Fund,  Central Valley Water Project Construction Fund,
the Central Valley Water Project Revenue Fund, or the California
Water Resources Development Bond Fund.
   (b) (1) Interest shall be paid on all moneys transferred to the
General Fund from the following funds:
   (A) The Department of Food and Agriculture Fund.
   (B) The DNA Identification Fund.
   (C) The Mental Health Services Fund.
   (D) All funds created pursuant to the California Children and
Families Act of 1998, enacted by Proposition 10 at the November 3,
1998, statewide general election.
   (E) Any funds retained by or in the possession of the California
Exposition and State Fair pursuant to this section.
   (2) With respect to all other funds, and unless otherwise
specified, if the total moneys transferred to the General Fund in any
fiscal year from any special fund pursuant to this section exceed an
amount equal to 10 percent of the total additions to surplus
available for appropriation as shown in the statement of operations
of a prior fiscal year as set forth in the most recent published
annual report of the Controller, interest shall be paid on the
excess. Interest payable under this section shall be computed at a
rate determined by the Pooled Money Investment Board to be the
current earning rate of the fund from which transferred.
   (c) Except as described in subdivision (d), all moneys in the
State Treasury may be loaned for the purposes described in
subdivision (a).
   (d) Subdivision (c) shall not apply to any of the following:
   (1) The Local Agency Investment Fund.
   (2) Funds classified in the State of California Uniform Codes
Manual as bond funds or retirement funds.
   (3) All or part of the moneys not needed in other funds or
accounts for purposes of subdivision (a) where the Controller is
prohibited by the California Constitution, bond indenture, or
statutory or case law from transferring all or any part of those
moneys.
   SEC. 10.    Section 830.3 of the   Penal
Code   is amended to read: 
   830.3.  The following persons are peace officers whose authority
extends to any place in the state for the purpose of performing their
primary duty or when making an arrest pursuant to Section 836 as to
any public offense with respect to which there is immediate danger to
person or property, or of the escape of the perpetrator of that
offense, or pursuant to Section 8597 or 8598 of the Government Code.
These peace officers may carry firearms only if authorized and under
those terms and conditions as specified by their employing agencies:
   (a) Persons employed by the Division of Investigation of the
Department of Consumer Affairs and investigators of the Medical Board
of California  and   ,  the Board of
Dental Examiners,  and the Board of Registered Nursing  who
are designated by the Director of Consumer Affairs, provided that the
primary duty of these peace officers shall be the enforcement of the
law as that duty is set forth in Section 160 of the Business and
Professions Code.
   (b) Voluntary fire wardens designated by the Director of Forestry
and Fire Protection pursuant to Section 4156 of the Public Resources
Code, provided that the primary duty of these peace officers shall be
the enforcement of the law as that duty is set forth in Section 4156
of that code.
   (c) Employees of the Department of Motor Vehicles designated in
Section 1655 of the Vehicle Code, provided that the primary duty of
these peace officers shall be the enforcement of the law as that duty
is set forth in Section 1655 of that code.
   (d) Investigators of the California Horse Racing Board designated
by the board, provided that the primary duty of these peace officers
shall be the enforcement of Chapter 4 (commencing with Section 19400)
of Division 8 of the Business and Professions Code and Chapter 10
(commencing with Section 330) of Title 9 of Part 1 of this code.
   (e) The State Fire Marshal and assistant or deputy state fire
marshals appointed pursuant to Section 13103 of the Health and Safety
Code, provided that the primary duty of these peace officers shall
be the enforcement of the law as that duty is set forth in Section
13104 of that code.
   (f) Inspectors of the food and drug section designated by the
chief pursuant to subdivision (a) of Section 106500 of the Health and
Safety Code, provided that the primary duty of these peace officers
shall be the enforcement of the law as that duty is set forth in
Section 106500 of that code.
   (g) All investigators of the Division of Labor Standards
Enforcement designated by the Labor Commissioner, provided that the
primary duty of these peace officers shall be the enforcement of the
law as prescribed in Section 95 of the Labor Code.
   (h) All investigators of the State Departments of Health Care
Services, Public Health, Social Services, Mental Health, and Alcohol
and Drug Programs, the Department of Toxic Substances Control, the
Office of Statewide Health Planning and Development, and the Public
Employees' Retirement System, provided that the primary duty of these
peace officers shall be the enforcement of the law relating to the
duties of his or her department or office. Notwithstanding any other
provision of law, investigators of the Public Employees' Retirement
System shall not carry firearms.
   (i) The Chief of the Bureau of Fraudulent Claims of the Department
of Insurance and those investigators designated by the chief,
provided that the primary duty of those investigators shall be the
enforcement of Section 550.
   (j) Employees of the Department of Housing and Community
Development designated under Section 18023 of the Health and Safety
Code, provided that the primary duty of these peace officers shall be
the enforcement of the law as that duty is set forth in Section
18023 of that code.
   (k) Investigators of the office of the Controller, provided that
the primary duty of these investigators shall be the enforcement of
the law relating to the duties of that office. Notwithstanding any
other law, except as authorized by the Controller, the peace officers
designated pursuant to this subdivision shall not carry firearms.
   (l) Investigators of the Department of Corporations designated by
the Commissioner of Corporations, provided that the primary duty of
these investigators shall be the enforcement of the provisions of law
administered by the Department of Corporations. Notwithstanding any
other provision of law, the peace officers designated pursuant to
this subdivision shall not carry firearms.
   (m) Persons employed by the Contractors State License Board
designated by the Director of Consumer Affairs pursuant to Section
7011.5 of the Business and Professions Code, provided that the
primary duty of these persons shall be the enforcement of the law as
that duty is set forth in Section 7011.5, and in Chapter 9
(commencing with Section 7000) of Division 3, of that code. The
Director of Consumer Affairs may designate as peace officers not more
than 12 persons who shall at the time of their designation be
assigned to the special investigations unit of the board.
Notwithstanding any other provision of law, the persons designated
pursuant to this subdivision shall not carry firearms.
   (n) The Chief and coordinators of the Law Enforcement Branch of
the California Emergency Management Agency.
   (o) Investigators of the office of the Secretary of State
designated by the Secretary of State, provided that the primary duty
of these peace officers shall be the enforcement of the law as
prescribed in Chapter 3 (commencing with Section 8200) of Division 1
of Title 2 of, and Section 12172.5 of, the Government Code.
Notwithstanding any other provision of law, the peace officers
designated pursuant to this subdivision shall not carry firearms.
   (p) The Deputy Director for Security designated by Section 8880.38
of the Government Code, and all lottery security personnel assigned
to the California State Lottery and designated by the director,
provided that the primary duty of any of those peace officers shall
be the enforcement of the laws related to assuring the integrity,
honesty, and fairness of the operation and administration of the
California State Lottery.
   (q) Investigators employed by the Investigation Division of the
Employment Development Department designated by the director of the
department, provided that the primary duty of those peace officers
shall be the enforcement of the law as that duty is set forth in
Section 317 of the Unemployment Insurance Code.
   Notwithstanding any other provision of law, the peace officers
designated pursuant to this subdivision shall not carry firearms.
   (r) The chief and assistant chief of museum security and safety of
the California Science Center, as designated by the executive
director pursuant to Section 4108 of the Food and Agricultural Code,
provided that the primary duty of those peace officers shall be the
enforcement of the law as that duty is set forth in Section 4108 of
the Food and Agricultural Code.
   (s) Employees of the Franchise Tax Board designated by the board,
provided that the primary duty of these peace officers shall be the
enforcement of the law as set forth in Chapter 9 (commencing with
Section 19701) of Part 10.2 of Division 2 of the Revenue and Taxation
Code.
   (t) Notwithstanding any other provision of this section, a peace
officer authorized by this section shall not be authorized to carry
firearms by his or her employing agency until that agency has adopted
a policy on the use of deadly force by those peace officers, and
until those peace officers have been instructed in the employing
agency's policy on the use of deadly force.
   Every peace officer authorized pursuant to this section to carry
firearms by his or her employing agency shall qualify in the use of
the firearms at least every six months.
   (u) Investigators of the Department of Managed Health Care
designated by the Director of the Department of Managed Health Care,
provided that the primary duty of these investigators shall be the
enforcement of the provisions of laws administered by the Director of
the Department of Managed Health Care. Notwithstanding any other
provision of law, the peace officers designated pursuant to this
subdivision shall not carry firearms.
   (v) The Chief, Deputy Chief, supervising investigators, and
investigators of the Office of Protective Services of the State
Department of Developmental Services, provided that the primary duty
of each of those persons shall be the enforcement of the law relating
to the duties of his or her department or office.