BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
SB 538 (Price)
Hearing Date: 5/23/2011 Amended: 5/17/2011
Consultant: Bob Franzoia Policy Vote: B,P&ED 8-1
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BILL SUMMARY: SB 538 would revise the Nursing Practice Act, as
follows:
- Extend from, January 1, 2012 to January 1, 2016, provisions
governing the Board of Registered Nursing and specify the board
is subject to review by policy committees of the Legislature.
- Subject 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 and
would subject all approved institutions of higher education and
those schools regulated under the California Private
Postsecondary Education Act of 2009 to specified fees.
- Authorize the board to issue a cease and desist order to a
school of nursing not approved by the board and require the
board to notify the Attorney General of such a school and
provide that it is unprofessional conduct for any registered
nurse to violate this provision.
- Add the Board of Registered Nursing Fund to the funds for
which a transfer may not be made to the General Fund under
specified conditions.
- Subject all approved institutions of higher education and
specified nursing schools to specified fees for deposit into the
Board of Registered Nursing Fund, a continuously appropriated
fund and 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 new sources of revenue to continuously
appropriated funds, the bill would make an appropriation.
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Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13 2013-14 Fund
Nursing school oversight -
investigations $50 $100 $100 Special*
- cease and desist actions $100 to $200 or more in
any year
SB 538 (Price)
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- revenue ($50) ($100) ($100) Special*
* Board of Registered Nursing Fund and Private Postsecondary and
Vocational Education Administration Fund
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STAFF COMMENTS: This bill meets the criteria for referral to the
Suspense File.
Government Code 16310 provides that when 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.
Existing statutes contain provisions intended to protect the
purposes of special funds. For example, Government Code 16381
provides that?whenever the Governor, upon request of the
Controller, determines in writing that there is insufficient
cash in the General Fund to meet payments authorized by law, and
until his determination is revoked in writing by the Governor,
the Governor may direct the Controller to make transfers of
money from any special funds and other State accounts to the
General Cash Revolving Fund.
Additionally, Government Code 18382 prohibits?any transfer which
will interfere with the carrying out of the object for which a
special fund or other State account was created. Retransfers to
special funds and other State accounts shall be made on order of
the Governor in season so that the objects for which they were
created may be carried out.
This bill would add the Board of Registered Nursing Fund to the
protected funds specified in Government Code 16310. Staff
SB 538 (Price)
Page 2
recommends deleting this provision as the precedent would result
in major General Fund cost pressure and because it does not
provide any greater protection to the fund than the statutes
noted above.