BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 455
                                                                  Page  1

          Date of Hearing:   August 13, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   SB 455 (Hernandez) - As Amended:  August 6, 2014

          Policy Committee:                             HealthVote:14-3

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill specifies enforcement and validation of current-law  
          staffing requirements for hospitals. Specifically, this bill:

          1)Requires each hospital to have a committee annually review  
            patient classification systems for reliability, in order to  
            validate staffing requirements.

          2)Requires at least 50% of the committee members to be  
            registered nurses who provide direct patient care, and  
            requires such nurses to be appointed by the bargaining agent  
            of the registered nurses, if any, and in the absence of a  
            bargaining agent, by the nursing administrator.

          3)Requires the Department of Public Health (DPH) to inspect for  
            compliance with nurse-to-patient ratios during every periodic  
            state inspection of a general acute care hospital.

          4)Specifies intent to supersede existing, related regulations.

           FISCAL EFFECT 

          Minor costs to the Department of Public Health (DPH) (Licensing  
          and Certification Fund) to modify regulations that conflict with  
          this bill's provisions.

           COMMENTS  

           1)Purpose  . According to the author, by placing the patient  
            classification committee requirement in statute, this bill  
            will help ensure hospitals are complying with the law.   
            Additionally, the author believes selecting representatives  








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            for workplace committees is an appropriate function of a  
            collective bargaining agent.  This bill is sponsored by the  
            United Nurses Associations of California/Union of Health Care  
            professionals (UNAC/UHP), which states many laws incorporate  
            protections that could be subject to collective bargaining.  

           2)Background  .  Current regulations operationalize provisions of  
            AB 394 (Kuehl), Chapter 945, Statutes of 1999, which requires  
            nurse-to-patient ratios for hospitals.  Specifically, Title  
            22, Section 70217 of the California Code of Regulations  
            requires a committee, composed of 50% direct care nursing  
            staff, to annually review the reliability of a patient  
            classification system for validating staffing requirements, to  
            determine whether or not the system accurately measures  
            patient care needs.  Section 70217 further stipulates the  
            committee is to be appointed by the nursing administrator.  If  
            the review reveals adjustments are necessary in the patient  
            classification system in order to assure accuracy in measuring  
            patient care needs, regulations require such adjustments to be  
            implemented within 30 days of that determination.  

            This bill essentially mirrors existing regulations, but adds a  
            new requirement that the registered nurses who provide direct  
            patient care must be appointed by a collective bargaining  
            agent, if any. It also specifies that the department must  
            inspect for compliance with the nurse-to-patient ratios  
            established in current law during periodic inspections.  DPH  
            currently enforces existing law and regulations, including  
            those related to staffing, through periodic inspections and in  
            response to complaints.
                
            3)Previous Legislation.   SB 1246 (Hernandez), 2012, would have  
            required periodic inspections by DPH to include a review of  
            compliance with nurse staffing ratios and patient  
            classification systems, and eliminated a requirement that DPH  
            promulgate regulations further defining the criteria for  
            assessing administrative penalties, thereby allowing existing  
            fine authority to go into effect.  SB 1246 would have also  
            codified patient classification regulations, as does this  
            bill.   

            SB 1246 was vetoed by Governor Brown.  In his veto message he  
            stated, "This bill seeks to grant [DPH] greater authority to  
            enforce hospital nurse staffing ratios and patient  
            classification system requirements.  Everything is already on  








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            track to get this job done. The department will soon release  
            proposed regulations on administrative penalties that will  
            apply to a broad range of violations. The rulemaking process  
            should be completed next year."

            DPH issued regulations this March, effective April 1, 2014,  
            that describe how the department will impose penalties for  
            violations of licensure requirements that do not constitute  
            "immediate jeopardy" to patient health and safety, potentially  
            including, presumably, violations of nurse staffing ratios and  
            patient classification systems.  To date, no penalties have  
            been imposed for such violations.

           4)Opposition  . The California Hospital Association (CHA) writes  
            in opposition to this bill that the hospital has the ultimate  
            responsibility for ensuring quality patient care, including  
            ensuring appropriate staffing levels.  Given this  
            responsibility, CHA believes it is inappropriate to require  
            the hospital to delegate a major component of its assessment  
            tool to a third party.  The Association of California  
            Healthcare Districts, representing district hospitals, echoes  
            CHA's concerns, stating delegation of the patient  
            classification authority is particularly problematic given the  
            hospital's interests and the union's interests may not always  
            be aligned. In addition, CHA indicates the requirement for  
            compliance checks is redundant, given the department already  
            routinely inspects all aspects of patient care delivery during  
            their periodic inspections.  

             The California Nurses Association also opposes this bill,  
            contending it is already addressed through regulations, and  
            echoing CHA's position that provisions related to collective  
            bargaining should stay within the collecting bargaining  
            process.

           Analysis Prepared by  :    Lisa Murawski / APPR. / (916) 319-2081