BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 538
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          SENATE THIRD READING
          SB 538 (Price)
          As Amended  August 15, 2011
          Majority vote 

           SENATE VOTE  :31-5  
           
           BUSINESS & PROFESSIONS              8-0             
          APPROPRIATIONS      12-5        
           
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          |Ayes:|Hayashi, Bill Berryhill,  |Ayes:|Fuentes, Blumenfield,     |
          |     |Allen, Butler, Eng, Hill, |     |Bradford, Charles         |
          |     |Ma, Smyth                 |     |Calderon, Campos, Davis,  |
          |     |                          |     |Gatto, Hall, Hill, Lara,  |
          |     |                          |     |Mitchell, Solorio         |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |Nays:|Harkey, Donnelly,         |
          |     |                          |     |Nielsen, Norby, Wagner    |
           ----------------------------------------------------------------- 
           
          SUMMARY  :   Extends the sunset date of the Board of Registered 
          Nursing (BRN) and makes a number of changes to the BRN's 
          authority and operations, and to the Nursing Practice Act (NPA). 
           Specifically,  this bill  :   

          1)Amends the Business and Professions Code to provide that 
            designated investigators of the BRN have the authority of 
            peace officers, as specified, and to authorize the BRN to 
            employ individuals who are not peace officers to provide 
            investigative services. 

          2)Extends the operating date of the BRN and its authority to 
            appoint an executive officer to January 1, 2016, and subjects 
            the BRN to review by the appropriate policy committees of the 
            Legislature.

          3)Requires the BRN to hold its meetings in northern and southern 
            California. 

          4)Provides that an approved school of nursing, or an approved 
            nursing program, is one that has been approved by the BRN, 
            gives the course of instruction approved by the BRN, covering 








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            not less than two academic years, is affiliated or conducted 
            in connection with one or more hospitals, and is an 
            institution of higher education. 

          5)Redefines "institution of higher education" to include, but 
            not be limited to, community colleges offering an associate of 
            arts or associate of science degree and private postsecondary 
            institutions offering an associate of arts, associate of 
            science, or baccalaureate degree or an entry-level master's 
            degree and not subject to the California Private Postsecondary 
            Education Act (PPE Act).

          6)Requires 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, and that is subject 
            to the PPE Act, to be approved by the BRN 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 
            BRN and the institution involved.

          7)Provides that, if an institution of higher education, an 
            affiliated institution, or an institution subject to the PPE 
            Act applies for approval of a new school of nursing, the 
            school of nursing shall be required to be recognized or 
            approved by an accrediting agency recognized by the United 
            States Department of Education.

          8)Specifies that the BRN's educational standards for licensure 
            shall be designed to require, rather than encourage, all 
            schools to provide clinical instruction in all phases of the 
            educational process.

          9)Requires all private postsecondary schools of nursing approve 
            by the BRN to comply with, and be subject to, requirements set 
            forth in the PPE Act, as specified.

          10)Provides that a BRN-approved institution of higher education 
            or private postsecondary school of nursing shall remit fees 
            for deposit into the BRN Fund, as follows:

             a)   A fee of $5,000 for approval of a school of nursing;









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

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

          11)Specifies that, if BRN determines that the annual cost of 
            providing oversight and review of a school of nursing as 
            required by this bill is less than the amount of any fees 
            required to be paid by that institution, the BRN may decrease 
            the fees applicable to that institution to an amount that is 
            proportional to the BRN's costs.

          12)Requires the BRN to order a school to cease and desist from 
            offering students the ability to enroll if the BRN has a 
            reasonable belief that the school is allowing students to 
            apply for a nursing program that has not been approved by the 
            BRN.  The BRN must also notify the Attorney General's (AG) 
            office that the school is offering students the ability to 
            enroll in a nursing program that does not have BRN approval.  

          13)Provides that it is unprofessional conduct for any registered 
            nurse (RN) to violate, attempt to violate, or assist or abet 
            the violation of 12) above.

          14)Amends the Penal Code to provide that persons employed by the 
            BRN are peace officers if designated as such by the Director 
            of the Department of Consumer Affairs (DCA).

           FISCAL EFFECT  :   According to Assembly Appropriations Committee:

          1)Approximately $30 million (BRN Fund) annually in regulatory 
            costs will continue to be incurred as a result of a provision 
            extending the sunset on the BRN. 

          2)Increased one-time revenues to the BRN Fund in the range of 
            $50,000 associated with approval of an estimated 10 new 
            nursing programs.  In addition, increased annual revenues of 
            approximately $35,000 to the BRN Fund for ongoing approval of 
            these programs.  The BRN Fund is continuously appropriated. 


          3)Increased staff costs to the Department of Justice of $250,000 
            (BRN Fund) for one additional Deputy Attorney General to 








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            handle the investigation and prosecution of unapproved schools 
            of nursing.  These costs are difficult to estimate and can 
            vary greatly, depending upon the number and complexity of 
            cases.

           COMMENTS  :   According to the author, "The primary purpose of 
          this measure is to extend the sunset date of the BRN to January 
          1, 2016?The Author and the BRN (also) believe that the following 
          changes will provide improvements to the BRN's nursing school 
          approval process:  (1) Grant complete authority over the 
          approval of nursing schools rather than requiring a duplicative 
          process under BPPE and to offset costs of the BRN in approving 
          and regulating nursing schools; (2) Provide the BRN with the 
          ability to issue a cease and desist order to a school of nursing 
          which has not been approved by the BRN and to inform the AG of a 
          school which continues to operate illegally; (3) Provide for an 
          accreditation requirement for the educational institutions which 
          provide nursing school programs.
           
          "The measure will also make some other clarifying and technical 
          changes regarding the nursing school approval process and to 
          meetings of the BRN.  Finally, this measure will grant the BRN 
          authority to hire their own in-house investigators and to have 
          some of those investigators designated as peace officers so they 
          do not have to depend on the Division of Investigation of  DCA 
          under all circumstances in investigating complaints."


           Analysis Prepared by  :    Angela Mapp / B.,P. & C.P. / (916) 
          319-3301 



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