BILL ANALYSIS                                                                                                                                                                                                    �







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        |Hearing Date:May 2, 2011           |Bill No:SB                         |
        |                                   |539                                |
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                      SENATE COMMITTEE ON BUSINESS, PROFESSIONS 
                               AND ECONOMIC DEVELOPMENT
                          Senator Curren D. Price, Jr., Chair
                                           

                          Bill No:        SB 539Author:Price
                     As Amended: April 25, 2011         Fiscal:Yes

        
        SUBJECT:  Nursing. 
        
        SUMMARY:  Extends the sunset date of the Board of Vocational Nursing 
        and Psychiatric Technicians (BVNPT) to January 1, 2016, and makes 
        other changes.  

        Existing law:
        
        1) Provides for the licensure and regulation of about 119,003 licensed 
           vocation nurses (VNs) and 13,000 Psychiatric Technicians (PTs) by 
           the BVNPT.  This provision will become inoperative on January 1, 
           2012.   

        2) Defines unprofessional conduct for VNs and PTs and authorizes the 
           BVNPT to suspend or revoke an individual's license for 
           unprofessional conduct.  Additionally, determines the processes to 
           be used to suspend or revoke a license.

        3) Requires any employer of a licensed vocational nurse or PT to 
           report the suspension or termination for cause, as defined, of any 
           VN or PT in its employ.  Establishes penalties for failure to 
           report. 

        4) Establishes a process that the BVNPT must follow to approve VN and 
           PT vocational schools.   

        This bill:

        1) Extends the sunset date of the BVNPT to continue to regulate the VN 
           and PT professions until January 1, 2016.  Provides for the review 





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           of the BVNPT by the appropriate policy committees of the 
           Legislature.

        2) Replaces the terms "accredit" or "accreditation" with "approve" or 
           "approval" for purposes of VN and PT programs. 

        3) Requires employers to also report resignations for cause, as 
           defined by the statute, in lieu of suspension or termination for 
           cause of VNs and PTs. 

        4) Specifies that the term employer for purposes of reporting also 
           includes employment agencies and nursing registries. 

        5) Makes other technical, non-substantive and conforming changes.
        FISCAL EFFECT:  Unknown. Legislative Counsel has keyed this bill as 
        "fiscal."

        COMMENTS:
        
        1. Purpose.  The Author is the Sponsor of this measure.  According to 
           the Author, in 2011, this Committee conducted oversight hearings to 
           review 7 boards:  the Board of Registered Nursing, the BVNPT, 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 and conducted 
           three days of hearings.  This bill, and the accompanying sunset 
           bills, is intended to implement legislative changes as recommended 
           in the Committee's Background/Issue Papers for all of the agencies 
           reviewed by the Committee this year.  

        This bill is one of the  seven  "sunset bills" authored by the Chair of 
           this Committee.  According to the Author, this bill is necessary to 
           extend the sunset date of the BVNPT and continue the regulation of 
           VNs and PTs and continue with BVNPT's mission to protect the 
           public.

        2. Background. The Board of Vocational Nursing and Psychiatric 
           Technicians (BVNPT) is responsible for regulating and enforcing the 
           laws related to the practice of licensed vocational nurses (LVNs) 
           and psychiatric technicians (PTs) in California.  There are 
           currently 119,033 LVNs and 13,299 PTs in California, with over 





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           8,000 licenses issued annually, and more than 39,000 licenses 
           renewed annually.  The BVNPT also accredits and approves 203 LVN 
           and 16 PT programs.  It should be noted that the LVN and PT 
           licensure programs are completely distinct with their own statutes 
           and regulations, budget authority, curriculum requirements, 
           examinations, and staff.  Additionally, the BVNPT serves as a 
           policy and decision maker in reinstatement hearings, proposed 
           disciplinary actions, accreditation of new schools, school survey 
           visits, follow up reports on programs, examination development, 
           contracts, budget issues, legislation, and regulatory proposals.  
           In order to further this public protection mission, the BVNPT 
           establishes minimum examination and licensure requirements, issues 
           and renews licenses, establishes educational standards for the 
           accreditation of vocational nurse (VN) and PT schools, adopts 
           regulations to clarify education and licensure, school 
           accreditation, practice requirements, and disciplinary standards 
           for its licensees, enforces the regulations governing the continued 
           accreditation of VN and PT schools in California, and takes 
           appropriate disciplinary action against incompetent or unsafe 
           licensees.

        Existing law allows the Legislature to conduct policy review of 
           regulatory boards within DCA.  This review includes an evaluation 
           of a board's regulatory programs, including staffing, enforcement, 
           budgetary, examination, and practice issues to ensure that consumer 
           protection remains the priority of these boards.  This year, the 
           BVNPT was reviewed by this Committee and an oversight hearing was 
           held on March 14, 2011.  As part of this hearing, Committee staff 
           prepared an extensive background paper detailing various issues and 
           recommendations for the BVNPT.

        3. Former Sunset Review of the BVNPT.  The BVNPT was last reviewed by 
           the Joint Legislative Sunset Review Committee (JLSRC) in 2002.  
           During the previous sunset review, the JLSRC and DCA raised 
           numerous issues.  The BVNPT identified five issues and developed a 
           set of recommendations to address the issues.  On October 1, 2010, 
           the BVNPT submitted its required sunset report to the Committee.  
           In this report, the BVNPT described actions it has taken since its 
           prior review to address the recommendations of the JLSRC.  The 
           following are some of the more important programmatic and 
           operational changes and enhancements which the BVNPT has taken and 
           other important policy decisions or regulatory changes made by the 
           BVNPT:

               Conducted retroactive fingerprinting of licensees who were 
             licensed prior to January 1, 1998.





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               Annually updated its Strategic Plan to identify the strategic 
             issues and trends impacting the BVNPT and the professions it 
             regulates.

               Increased the number of VN & PT Programs by 44% (from 154 in 
             2004/2005 to 221 in FY 2009/10).   Additionally, the BVNPT 
             continues to assist schools in becoming an accredited program by 
             assigning a Nursing Education Consultant (NEC) to the school and 
             by inviting the Program Directors to a "New Director 
             Orientation."  Information presented at these orientations 
             provides clarification regarding the statutes and regulations 
             with which the programs must comply to become accredited.  
             Additionally, the NEC reviews the material from each school in 
             attendance and provides feedback to the Program Director.  This 
             information helps schools understand the requirements before 
             directing an inordinate amount of time to development of program 
             elements that are not compliant with regulations. 

               Established the Vocational Nurse Education Fund, which helps 
             fund scholarships and loan repayment programs.  Each LVN is 
             assessed an additional $5 fee when they renew their license every 
             two years to fund this program.

               Proposed and obtained budget authority to implement mandatory 
             reporting requirements for employers of LVNs or PTs who have been 
             suspended or terminated for cause.  On October 11, 2007, the 
             BVNPT's regulatory proposal to implement the mandatory reporting 
             statutes became effective.

               Adopted regulations regarding Consumer Complaint Disclosure 
             Policy.

               Participated in the Nurse Workforce Initiative.

               Increased the number of students attending LVN and PT 
             programs.

        1. This Measure Includes the Following Statutory Changes as Identified 
           by This Committee During Its Oversight Hearings of March, 2011:
        
             a)     Requires employers of VNs and PTs to also report 
               resignations in lieu of suspension or termination for cause.  
               Current law requires that employers of VNs and PTs report to 
               the BVNPT the suspension or termination for cause of any LVN or 
               PT in its employ.  Suspension or termination for cause is 





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               defined as: (1) use of controlled substances or alcohol to the 
               extent that it impairs the licensee's ability to safely 
               practice; (2) unlawful sale of a controlled substance or other 
               prescription items; Patient or client abuse, neglect, physical 
               harm, or sexual contact with a patient or client; (3) 
               falsification of medical records; (4) gross negligence or 
               incompetence; and, (5) theft from patients or clients other 
               employees, or the employer.  The BVNPT points out that this 
               reporting mechanism has been an important public protection 
               tool, and the BVNPT continues to receive many reports from 
               employers. (For FY 2009/2010, there were 213 VN and 56 PT 
               employer reports.)  However, in order to further promote 
               patient safety, the BVNPT is recommending that employers also 
               report resignations in lieu of suspension or termination for 
               cause submitted by VNs and PTs.  According to the BVNPT, many 
               licensees are permitted to submit resignations in lieu of 
               suspension or termination from employment for gross negligence, 
               incompetence, and unsafe or deceitful acts.  As such, the 
               employer is not required to report these types of resignations. 
                When this occurs, the licensee is able to work for an 
               unsuspecting hospital, nursing or convalescent home, or other 
               healthcare facility because no negative employment history 
               exists.  Frequently, the licensees continue to commit similar 
               acts of misconduct and this jeopardizes consumer protection.  

             b)     Defines Employer for Purposes of Reporting to Include 
               Employment Agencies and Nursing Registries.  BVNPT indicates 
               that existing law is unclear if employment agencies and 
               registries are required to report to the BVNPT a licensee who 
               was rejected from assignment at a health facility or home 
               health care due to acts which would normally be cause for 
               suspension or termination.  BVNPT points out that it is 
               necessary to require employment agencies and registries to 
               report licensees who are "rejected" for cause as well as 
               suspended, terminated or resigned in lieu of suspension or 
               termination for cause.

             c)     Replaces the terms "accredit" or "accreditation" with 
               "approve" or "approval" for purposes of VN and PT programs.  
               Current law states that an accredited school of vocational 
               nursing is one which has been approved by the BVNPT.  The use 
               of the term "accredited" to refer to BVNPT program approval can 
               cause confusion, given the general application of that term to 
               educational institutions.  In California there may be schools 
                not  accredited by a national accrediting body that receive 
               BVNPT accreditation (approval) for programs offered.   





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               Similarly, there may be schools approved by Board of Private 
               Postsecondary Education, but whose VN or PT program may not 
               receive BVNPT accreditation.   Students may not understand the 
               difference between accreditation in the traditional, 
               educational sense of the word and application of the term to 
               BVNPT approved schools.   Unaccredited schools offering 
               programs accredited by BVNPT may advertise or promote their 
               "accreditation," misleading students and potentially leaving 
               them at a serious disadvantage if they are not able to 
               successfully transfer academic credits.   Potential 
               participants in VN or PT training programs are required to 
               answer whether they graduated from an accredited school on 
               their licensing exam; students may not know if a school is 
               accredited, despite operating a BVNPT accredited VN or PT 
               training program.

             d)     Extends the Sunset Date of the BVNPT.  The health and 
               safety of consumers are protected by a well-regulated VN and PT 
               professions.  The BVNPT protects the consumer from 
               unprofessional and unsafe licensed vocational nurses and 
               psychiatric technicians.  The BVNPT has been an effective 
               regulatory body for these professions. The BVNPT should be 
               continued with a four-year extension of its sunset date.

        2. Related Legislation This Session. Other sunset review bills to be 
           presented before the Senate Business and Professions Committee 
           include: 

              a)     SB 538  which deals with the Board of Registered Nursing

              b)     SB 540  which deals with the Dental Board of California

              c)     SB 541  which deals with the DCA and the contracting for 
               expert consultants by the boards.

              d)     SB 542  which deals with the California Board of 
               Accountancy and the Professional Fiduciaries Bureau.

              e)     SB 543  which deals with the California Architects Board , 
               Contractors State License Board, Landscape Architects Technical 
               Committee, Board for Professional Engineers, Land Surveyors, 
               and Geologists, State Board of Guide Dogs for the Blind, State 
               Athletic Commission.  

              f)     SB 706  which deals with the Department of Real Estate and 
               the Office of Real Estate Appraisers. 





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        SUPPORT AND OPPOSITION:
        
         Support:  None on file as of April 26, 2011

         Opposition:  None on file as of April 26, 2011 



        Consultant:Candace Choe