BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 539
                                                                  Page  1

          Date of Hearing:   June 28, 2011

              ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER 
                                     PROTECTION
                                 Mary Hayashi, Chair
                      SB 539 (Price) - As Amended:  June 9, 2011

           SENATE VOTE  :   39-0
           
          SUBJECT  :   Nursing

           SUMMARY  :   Extends the sunset date of the Board of Vocational 
          Nursing and Psychiatric Technicians (BVNPT), expands 
          requirements for employers of licensed vocation nurses (LVNs) 
          and psychiatric technicians (PTs) to report specified 
          information to the BVNPT, and makes other changes.  
          Specifically,  this bill  :   

          1)Extends until January 1, 2016, the sunset date of the BVNPT 
            and statutes pertaining to the BVNPT's executive officer, and 
            provides for the review 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 vocational nursing 
            (VN) and PT schools and educational programs. 

          3)Requires employers to report resignations for cause of LVNs 
            and PTs, as specified, to the BVNPT. 

          4)Requires employment agencies and nursing registries to report 
            to the BVNPT the rejection from assignment of a LVN or PT by a 
            health facility or home health care provider due to acts that 
            would be cause for suspension or termination, as specified.

          5)Provides that the term "employer," for purposes of specified 
            reporting to the BVNPT, also includes employment agencies and 
            nursing registries. 

          6)Requires the BVNPT to inspect or review all schools of VN and 
            PT for purposes of approval or determining compliance with 
            prescribed standards.

          7)Makes other technical, non-substantive and conforming changes.









                                                                  SB 539
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           EXISTING LAW  

          1)Provides for the licensure and regulation of LVNs and PTs by 
            the BVNPT, until January 1, 2012.   

          2)Defines unprofessional conduct for LVNs and PTs and authorizes 
            the BVNPT to suspend or revoke an individual's license for 
            unprofessional conduct.

          3)Requires any employer of a LVN or PT to report the suspension 
            or termination for cause of any employed LVN or PT for any of 
            the following reasons:

             a)   Use of controlled substances or alcohol to the extent 
               that it impairs the licensee's ability to safely practice;

             b)   Unlawful sale of controlled substances or other 
               prescription items;

             c)   Patient or client abuse, neglect, physical harm, or 
               sexual contact with a patient or client;

             d)   Falsification of medical records;

             e)   Gross negligence or incompetence; or,

             f)   Theft from patients or clients, other employees, or the 
               employer.

          4)Specifies that failure of an employer to make a report as 
            required by 3), above, is punishable by an administrative fine 
            of up to $10,000 per violation.

          5)Requires the BVNPT to inspect all schools of VN and PT for 
            purposes of approval or determining compliance with prescribed 
            standards.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           Purpose of this bill  .  According to the author's office, "SB 539 
          makes necessary statutory changes to the Business and 
          Professions Code to reflect findings from the Senate Committee 
          on Business and Professions' recent Sunset Review Hearings."








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           Background  .  The BVNPT regulates, and enforces the laws related 
          to, the practice of LVNs and PTs in California.  There are about 
          119,000 LVNs and 13,300 PTs in the state.  The BVNPT also 
          accredits and approves VN and PT schools and educational 
          programs.  This bill includes a number of provisions to continue 
          or enhance the BVNPT's mission to protect the public.

          The BVNPT is scheduled to sunset on January 1, 2012.  This bill 
          extends the sunset date of the BVNPT until January 1, 2016. 

          Current law states that an accredited school of vocational 
          nursing is one that 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.   Similarly, 
          there may be schools approved by the 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, even if it operates a BVNPT accredited VN 
          or PT training program.  This bill clears up this confusion by 
          replacing the terms "accredit" or "accreditation" with "approve" 
          or "approval" for purposes of VN and PT schools and educational 
          programs.

          Current law requires that employers of LVNs and PTs report to 
          the BVNPT the suspension or termination for cause of employed 
          LVNs or PTs.  According to the BVNPT, many licensees are 
          permitted to submit resignations in lieu of suspension or 
          termination from employment.  Employers are 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 








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          continue to commit similar acts of misconduct, which jeopardizes 
          consumer protection.  This bill adds resignations for cause to 
          the list of employee status actions that employers must report 
          to the BVNPT.

          The 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 for home health care due to acts that 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.  This bill requires employment agencies 
          and nursing registries to report to the BVNPT the rejection from 
          assignment of a LVN or PT by a health facility or home health 
          care provider due to acts that would be cause for suspension or 
          termination.  This bill also provides that the term "employer," 
          for purposes reporting to the BVNPT, also includes employment 
          agencies and nursing registries.

           Support  .  The BVNPT writes, "Enactment of this important 
          legislation will ensure that the Board can continue its vital 
          work of protecting the consumers of California from incompetent 
          and/or unethical licensed vocational nurses or psychiatric 
          technicians."

           Related Legislation  .  SB 538 (Price) makes a number of changes 
          to the Nursing Practice Act.  This bill is pending in Assembly 
          Business, Professions and Consumer Protection Committee.

          SB 540 (Price) extends the sunset date of the Dental Board of 
          California and makes a number of other programmatic changes.  
          This bill is pending in Assembly Business, Professions and 
          Consumer Protection Committee.

          SB 541 (Price) authorizes the boards and bureaus within the 
          Department of Consumer Affairs, as well as the State Board of 
          Chiropractic Examiners and the Osteopathic Medical Board, to 
          continue to utilize expert consultants without having to go 
          through the formal contracting process.  This bill is pending in 
          Assembly Business, Professions and Consumer Protection 
          Committee.

          SB 543 (Price) extends the sunset date of the California 








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          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, and the State Athletic Commission, and makes 
          programmatic and administrative changes to some of the boards, 
          committees and commissions whose operation is being extended.  
          This bill is pending in Assembly Business, Professions and 
          Consumer Protection Committee.

          SB 706 (Price) makes numerous enforcement enhancements to the 
          Department of Real Estate and the Office of Real Estate 
          Appraisers; requires licensing boards to post information about 
          licensees on the Internet, as specified; and, makes updating and 
          conforming changes.  This bill is pending in Assembly Business, 
          Professions and Consumer Protection Committee.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Board of Vocational Nursing and Psychiatric Technicians
          Stanbridge College
           
            Opposition 
           
          None on file.

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