Business and Professions Code section 2786.4

(a)

An institution of higher education or a private postsecondary school of nursing subject to Section 2786, or an entity affiliated with the institution or school of nursing, shall not make a payment to any clinical agency or facility in exchange for clinical experience placements for students enrolled in a nursing program offered by or affiliated with the institution or private postsecondary school of nursing.

(b)

A payment shall be deemed a violation of subdivision (a) if made within two years of a clinical experience placement at a facility.

(c)

The payment of reasonable administrative fees for purposes of credentialing, databank registration, purchasing supplies, or similar costs or reimbursements does not constitute a violation of subdivision (a).

Source: Section 2786.4, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=BPC§ionNum=2786.­4.­ (updated Jan. 1, 2023; accessed Dec. 29, 2025).

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Verified:
Dec. 29, 2025

§ 2786.4's source at ca​.gov