BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 538|
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                                 THIRD READING


          Bill No:  SB 538
          Author:   Price (D)
          Amended:  5/31/11
          Vote:     21

           
           SENATE BUS., PROF. & ECON. DEVEL. COMMITTEE  :  8-1, 5/2/11
          AYES:  Price, Emmerson, Corbett, Correa, Hernandez, Negrete 
            McLeod, Vargas, Wyland
          NOES:  Walters

           SENATE APPROPRIATIONS COMMITTEE  :  6-2, 5/26/11
          AYES:  Kehoe, Alquist, Lieu, Pavley, Price, Steinberg
          NOES:  Walters, Runner
          NO VOTE RECORDED:  Emmerson


           SUBJECT  :    Nursing

           SOURCE  :     Author


           DIGEST  :    This bill makes a number of changes to the 
          Nursing Practice Act including:  (1) granting the Board of 
          Registered Nursing (BRN) the authority to hire 
          investigators and to have such investigators designated as 
          peace officers, (2) 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, (3) 
          authorizing 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 
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          to operate illegally, and (4) extending the BRN's sunset 
          date for four years to January 1, 2016.

           ANALYSIS  :    

          Existing law:

          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. Establishes within the DCA, the Division of 
             Investigation (DOI), to investigate alleged misconduct 
             by licensees of boards.  Allows the Director of the DCA 
             to employ such investigators, inspectors, and deputies 
             as are necessary to investigate and prosecute all 
             violations of any law.  States Legislative intent that 
             inspectors used by boards are not required to be 
             employees of the DOI, but may be either employees, or 
             under contract to the boards.

          4. Provides that investigators of the DOI and the Medical 
             Board of California and Dental Board of California have 
             the authority of peace officer and that those entities 
             are also authorized to employ individuals who are not 
             peace officers to provide investigative services.

          5. Specifies that the BRN consists of nine members and that 
             as of January 1, 2012, the BRN will sunset (is 
             repealed), unless a later enacted statute is enacted 
             prior to January 1, 2012.  The BRN is subject to review 
             by the Legislature prior to its sunset date. 

          6. Specifies that the provision which provides for the 
             appointment of the Executive Officer for the BRN shall 
             be repealed as of January 1, 2012, unless a later 
             enacted statute is enacted before January 1, 2012. 

          7. States that it is the intent of the Legislature that the 







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             BRN shall implement a diversion program for registered 
             nurses whose competency may be impaired due to abuse of 
             alcohol and other drugs, or due to mental illness, as a 
             voluntary alternative to traditional disciplinary 
             actions and so that registered nurses so afflicted may 
             be rehabilitated and returned to the practice of nursing 
             in a manner which will not endanger the public health 
             and safety.

          8. Requires the BRN to establish criteria for the 
             acceptance, denial, or termination of registered nurses 
             in the diversion program and that only those nurses who 
             have voluntarily requested to participate in the 
             diversion program shall participate in the program.

          9. Provides that the BRN shall produce reports which 
             include, but are not limited to, the information 
             concerning the number of cases accepted, denied, or 
             terminated with compliance or noncompliance and to 
             conduct a periodic cost analysis of the program.

          10.Requires the BRN to approve and regulate registered 
             nursing schools that are institutions of higher 
             education, as defined, or affiliated with an institution 
             of higher education, as specified.  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. 

          11.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.  

          12.Establishes the Bureau of Private Postsecondary 
             Education (Bureau) within the DCA and provides for 
             Bureau oversight and regulation of California private 
             postsecondary institutions pursuant to the Private 
             Postsecondary Education Act of 2009 (Act).  

          13.Establishes numerous unfair business practices for 
             institutions covered by the Act, including prohibiting 
             an institution from promising employment or otherwise 
             overstating the availability of jobs or making untrue or 







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             misleading statements regarding student completion, 
             placement or expected salary rates.

          14.Sets forth certain disclosure requirements pertaining to 
             completion, placement, licensure, and earning potential.

          This bill:

          1. Authorizes the BRN to hire or designate investigators of 
             the BRN as peace officers and to also employ individuals 
             who are not peace officers to provide investigative 
             services. 

          2. Extends the sunset and repeal of the BRN to January 1, 
             2016, and provides that notwithstanding any other 
             provision of law, the BRN shall be subject to review by 
             the appropriate policy committees of the Legislature 
             prior to January 1, 2016. 

          3. Extends the repeal of the provision for the appointment 
             of the Executive Officer by the BRN to January 1, 2016.

          4. Subjects a school of nursing that is not an institution 
             of higher education, or that is affiliated with an 
             institution of higher education, as required by the BRN 
             to the requirements set forth in the Act, and subjects 
             all approved institutions of higher education and those 
             schools regulated under the Act to specified fees for 
             approval by the BRN.

          5. Requires the BRN, rather than encourage, when designing 
             standards of instruction for an approved nursing school, 
             require all schools provide clinical instruction in all 
             phases of the educational process.

          6. Authorizes the BRN to issue cease and desist orders to a 
             school of nursing that is not approved by the BRN and 
             would require the BRN to notify the Attorney General of 
             such a school and would provide that it is 
             unprofessional conduct for any registered nurse to 
             violate this provision.

          7. Provides that persons employed by the BRN may be peace 
             officers if designated as such by the Director of DCA, 







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             and 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 BPC.

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







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          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 
          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.

          The current composition of the BRN is seven members who are 
          appointed by the Governor, one by the Senate Rules 
          Committee and one by the Assembly Speaker.  The current 
          make-up of the BRN includes four public members, two 
          registered nurses in direct patient care practice, an 
          advanced practice registered nurse, a registered nurse 
          educator and a registered nurse administrator.

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes   
          Local:  No

          According to the Senate Appropriations Committee:

                          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







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          -revenue                 ($50)          ($100)$100)      
          Special*

          *Board of Registered Nursing Fund and Private Postsecondary 
          and Vocational Education Administration Fund.

           SUPPORT  :   (Verified  5/26/11)

          California Association of Nurse Anesthetists, Inc.
          California Nurse Midwives Association


          JJA:do  5/31/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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