BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          AB 2155 (Ridley-Thomas) - Nurses: Overtime
          
          Amended: As Introduced          Policy Vote: PE&R 3-2
          Urgency: No                     Mandate: No
          Hearing Date: August 4, 2014                            
          Consultant: Maureen Ortiz       
          
          This bill meets the criteria for referral to the Suspense File.


          Bill Summary:  AB 2155 prohibits mandatory overtime for  
          registered nurses, licensed vocational nurses (LVNs), or  
          certified nursing assistants (CNAs) who are employed in state  
          hospitals and facilities.

          Fiscal Impact: 

              Net costs of approximately $1.2 million annually to the  
              Department of State Hospitals (General Fund)

              Unknown staffing costs annually to CDCR and DVA (General  
              Fund)

          During 2013, the Department of State Hospitals mandated a total  
          of 53,973 overtime hours for registered nurses and licensed  
          vocational nurses.  The total cost of this overtime pay  
          calculated at the mid-step was $2.33 million.  It is estimated  
          that an additional 23.5 nurses and 3.9 LVN's would need to be  
          hired if mandatory overtime was eliminated at an estimated cost  
          of $3.5 million.  The actual cost would likely be less since  
          presumably some nurses would voluntarily accept to work the  
          overtime hours.

          Background:  California's state hospitals primarily serve  
          patients through the Department of State Hospitals, the  
          California Department of Corrections and Rehabilitation, and the  
          Department of Veterans Affairs.  State hospitals and facilities  
          in remote locations typically encounter difficulties in the  
          recruitment and retention of nurses.  

          Proposed Law:  AB 2155 prohibits mandatory overtime for  
          registered nurses, licensed vocational nurses, or certified  








          AB 2155 (Ridley-Thomas)
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          nursing assistants who are employed in state hospitals and  
          facilities, except under the following circumstances:

          1)  A nurse or CNA participating in a surgical procedure until  
          that procedure is completed.

          2)  If a catastrophic event occurs in a facility that involves  
          an unanticipated and nonrecurring event, and that results in  
          such a large number of patients in need of immediate medical  
          treatment that the facility is incapable of providing sufficient  
          nurses or CNAs to attend to the patients without resorting to  
          mandatory overtime.

          AB 2155 provides that a facility will not require a nurse or CNA  
          to work in excess of a regularly scheduled workweek or work  
          shift.  A nurse or CNA may volunteer or agree to work hours in  
          addition to his or her regularly scheduled workweek or work  
          shift but the refusal by a nurse or CNA to accept those  
          additional hours shall not be grounds for discrimination,  
          dismissal, discharge, or any other penalty or employment  
          decision adverse to the nurse or CNA.

          AB 2155 additionally provides that its implementation will not  
          be construed to affect the Nursing Practice Act, the Vocational  
          Nursing Practice Act, or a registered nurse's duty under the  
          standards of competent performance.

          Staff Comments:  "Nurse" is defined as all classification of  
          registered nurses represented by State Bargaining Unit 17, or  
          the Licensed Vocational Nurse classifications represented by  
          State Bargaining Unit 20.  CNA means all Certified Nursing  
          Assistance classifications represented by State Bargaining Unit  
          20.

          The Ralph C. Dills Act requires that the state employer and the  
          exclusive representative of rank-and-file state employees meet  
          and confer in good faith over employee wages, hours of work, and  
          terms and conditions of employment.  AB 2155 bans mandatory  
          overtime for public sector nurses and CNAs.  The use of  
          mandatory overtime for nurses in the private sector was banned  
          in 2001 through wage orders from the Industrial Welfare  
          Commission.  State and public sector nurses were exempted from  
          that order.








          AB 2155 (Ridley-Thomas)
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          The provisions of AB 2155 will conflict with previously  
          negotiated contracts between the state and Unit 17 that defines  
          the terms, limitations, and processes for involuntary overtime.   
          That contract includes language that management will attempt not  
          to schedule nurses more than five involuntary overtime shifts  
          per month; or in excess of sixteen continuous hours; or in  
          excess of two overtime shifts within an employee's scheduled  
          work week; or more than two consecutive calendar days.  A  
          mandated holdover of two hours or more is considered a mandated  
          overtime.

          Employing the use of mandatory overtime may be resulting in an  
          increase in workplace errors, staff's health risks, safety  
          issues, and jeopardizes the state's recruitment and retention of  
          nurses.