California Business and Professions Code § 2786.4

Business and Professions Code
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(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).

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