BILL ANALYSIS SB 57 Page 1 Date of Hearing: June 28, 2005 ASSEMBLY COMMITTEE ON HEALTH Wilma Chan, Chair SB 57 (Alarcon) - As Amended: May 27, 2005 SENATE VOTE : 24-13 SUBJECT : Fines and forfeitures. SUMMARY : Permits an additional penalty assessment of $2 for every $10 or fraction thereof to be collected upon Alcohol Beverage Control (ABC) Act and Vehicle Code offenses. Requires revenue generated from the assessment to be deposited into the Maddy Emergency Medical Services (EMS) Fund, with 15% designated for pediatric trauma centers. Specifically, this bill : 1)Permits, for purposes of supporting EMS, as specified, a county board of supervisors to elect to levy an additional penalty of $2 for every $10 or fraction thereof, which is to be collected together with and in the same manner as existing assessments, as specified, upon every fine, penalty, or forfeiture imposed and collected by the courts for criminal offenses, including violations relating to the ABC Act, and Vehicle Code violations, and local ordinances adopted pursuant to the Vehicle Code except parking offenses, as specified. 2)Requires moneys collected pursuant to #1) above to be taken from fines and forfeitures deposited with the county treasurer prior to other specified assessments. 3)Requires funds collected pursuant to #1) to be deposited into the Maddy EMS Fund, as specified. 4)Requires 15% of the money deposited in the Maddy EMS Fund pursuant to #1) above to be utilized to provide funding for pediatric trauma centers. Limits expenditure of this money to reimbursement to physicians and surgeons, hospitals for patients who do not make payment for services, or for expanding the services provided at pediatric trauma centers, including the purchase of equipment. Refers to this provision as the "Pediatric Care Allocation." 5)Requires counties that do not maintain pediatric trauma centers to utilize the money deposited into the Maddy EMS Fund SB 57 Page 2 to reimburse physicians and surgeons and hospitals for patients who do not make payment for EMS and for other EMS purposes as determined by the county according to a specified schedule. Permits funding to be used for administrative costs, as specified. 6)Requires costs of administering money deposited into the Maddy EMS Fund pursuant to #1) above to be reimbursed from the money collected, not to exceed 10%. EXISTING LAW : 1)Establishes the ABC Act, which is an exercise of the police powers of the State for the protection of the safety, welfare, health, peace, and morals of the people of the state, to eliminate the harmful consequences of unlicensed and unlawful manufacture, selling, and disposing of alcoholic beverages, and to promote temperance in the use and consumption of alcoholic beverages. 2)Establishes the Maddy EMS Fund, which permits each county to establish an EMS fund, upon adoption of a resolution by the board of supervisors. Requires the fund to be administered by each county, except that a county electing to have the state administer its medically indigent services program may elect to have its Maddy EMS Fund administered by the state. 3)Permits up to 10% of the amount of the Maddy EMS Fund to be used to reimburse costs of administering the fund. Permits each administering agency to maintain a reserve of up to 15% of the amount in the portions of the fund reimbursable to physicians and surgeons, and hospitals, as specified, and any amount that is distributed for other EMS purposes, as specified. 4)Requires the amount in the fund, reduced by the amount for administration, and the reserve to be utilized to reimburse physicians and surgeons and hospitals for patients who do not make payment for EMS and for other EMS purposes as determined by each county according to the following schedule: a) 58% of the balance to be distributed to physicians and surgeons for emergency services provided by all physicians and surgeons, except those employed by county hospitals, in general acute care hospitals that provide basic or SB 57 Page 3 comprehensive emergency services up to the time the patient is stabilized; b) 25% of the fund to be distributed only to hospitals providing disproportionate trauma and emergency medical care services; and, c) 17% of the fund to be distributed for other EMS purposes as determined by each county, including, but not limited to, the funding of regional poison control centers. Permits funding to be used for purchasing equipment and for capital projects only to the extent that these expenditures support the provision of emergency services. 5)Permits any physician and surgeon to be reimbursed for up to 50% of the amount claimed, as specified, for the initial cycle of reimbursements made by the administering agency in a given year, as specified. Requires funds remaining at the end of the fiscal year in excess of the reserve to roll over to the next year, and be distributed proportionately, based on the dollar amount of claims submitted and paid to all physicians and surgeons who submitted qualifying claims during the year. 6)Requires a state penalty to be levied, in the amount of $10 for every $10 or fraction thereof, on fines, penalties, or forfeitures imposed and collected by the courts for criminal offenses, including all offenses, except parking offenses as defined, involving violations of the Vehicle Code or local ordinances adopted pursuant to the Vehicle Code. Requires the money collected from the penalty to be distributed in specified percentages among: the Fish and Game Preservation Fund; the Restitution Fund; the Peace Officers Training Fund; the Driver Training Penalty Assessment Fund; the Corrections Training Fund; the Local Public Prosecutors and Public Defenders Fund; the Victim-Witness Assistance Fund; and the Traumatic Brain Injury Fund. 7)Requires, in each county, an additional penalty to be levied, in the amount of $7 for every $10 or fraction thereof which is to be collected together with and in the same manner as the amounts established in #4) above, upon every fine, penalty, or forfeiture imposed and collected by the courts for criminal offenses, including all offenses involving a violation of the Vehicle Code or any local ordinances adopted pursuant to the SB 57 Page 4 Vehicle Code, except parking offenses, as specified. Requires, if established by a county board of supervisors, the money to be placed in one or more funds, including the Courthouse Construction Fund, the Criminal Justice Facilities Construction Fund, the Automated Fingerprint Identification Fund, the Forensic Laboratory Fund, the Maddy EMS Fund, or the DNA Identification Fund. FISCAL EFFECT : According to the Senate Appropriations Committee analysis, Fiscal Impact (in thousands) Major Provisions 2005-06 2006-07 2007-08 Fund Assessments Potentially significant revenues; Special * Court programming costs $184 ** Special * (first assessment) Manual processing $180 $180 $180 Special * (statewide) ________________ * Maddy Emergency Medical Services Fund; 15% of total slated for counties' pediatric trauma units **Based on number of counties that participate; cost of $25,000 per county COMMENTS : 1)PURPOSE OF THIS BILL . According to the author, this bill seeks to generate funding to help alleviate a $365 million shortfall facing trauma centers. The author states that this bill would create a specific mechanism for the Maddy EMS Fund to allow counties to collect an additional $2 penalty on every $10 penalty for specified criminal offenses, which would be a $20 to $40 increase on an average $340 ticket payment. The author asserts that this bill will result in funding for emergency and trauma care estimated at $60 million per year. In addition, this bill establishes a Pediatric Care Allocation for equipment and facilities, which will be instrumental in maintaining the financial stability of the emergency and trauma centers, decreasing the diversion time and patient wait time, and improving overall services. 2)TRAUMA CENTERS . A 2002 California HealthCare Foundation study indicates that California's trauma centers provide the highest SB 57 Page 5 levels of emergency care to the most critically ill and injured patients, maintaining the highest level of service in terms of specialized equipment, and a wider array of specialized medical personnel, including panels of on-call specialist physicians. Under state law, hospitals with trauma centers also must maintain emergency departments. The California Emergency Medical Services Authority (EMSA) establishes the standards for trauma systems. EMSA reviews and approves trauma care plans developed by local emergency services agencies, and local agencies are responsible for the designation of trauma centers based on an approved plan. Focus groups of experts report growing concerns with the state's lack of a coordinated trauma care system and with inadequate funding for existing trauma centers, which care for large numbers of uninsured and underinsured patients. 3)PEDIATRIC TRAUMA CENTERS . The chart below outlines the pediatric trauma centers in California, as of January 2005. ------------------------------------------------------------- |Pediatric|Pediatric |Adult/Pediat|Adult/Pediat|Adult | | Level I |Level II |ric Level I |ric Level |I/Pediatric | | | | |II |II | | | | | | | |---------+------------+------------+------------+------------| |Children'|Children's |University |Long Beach |Cedars-Sinai| |s |Hospital |of |Memorial/Mil| Medical | |Hospital |Medical |California-D|ler |Center - | |of Los |Center - |avis |Children's |Los Angeles | |Angeles |Oakland |Medical |Center - | | | | |Center - |Long Beach | | | | |Sacramento | | | | | | | | | |---------+------------+------------+------------+------------| | |Children's |Loma Linda | |Harbor UCLA | | |Hospital |University | |Medical | | |Central |Medical | |Center - | | |California |Center - | |Los Angeles | | |- Madera |Loma Linda | | | | | | | | | |---------+------------+------------+------------+------------| | |Children's |UCLA | |LAC/USC | | |Hospital & |Medical | |Medical | | |Health |Center - | |Center - | SB 57 Page 6 | |Center - |Los Angeles | |Los Angeles | | |San Diego | | | | | | | | | | ------------------------------------------------------------- 4)SUGGESTED AMENDMENTS . The Emergency Medical Services Administrators Association of California (EMSAAC) indicates that there are very few pediatric trauma centers in the state and many of these centers serve children from other counties. EMSAAC asserts that since these trauma centers get patients from other counties, this bill should be amended to allow counties that do not have pediatric trauma centers to use the funding to pay for pediatric trauma services for that county's children delivered in other county's trauma centers. 5)SUPPORT . University of California (UC) writes in support that current emergency medical services funds are insufficient to cover the costs of providing emergency medical services and trauma services to medically indigent, uninsured, and underinsured Californians, and this bill will be instrumental in maintaining the financial stability of hospitals that are critical to California's health care system. 6)OPPOSTION . The Judicial Council writes in opposition that the additional penalty assessment in this bill will impose significant burdens on court administration, in counties that adopt the assessments, courts will need to reprogram their case management systems to perform the new calculations, and some older systems are not even capable of reprogramming. Calculations will have to be done by hand or systems will have to be replaced resulting in substantial court costs. The Teamsters and other labor organizations oppose this bill indicating that assessments can total between 300 to 350% of base violation fine, which goes against truth in government principles, and unfairly impacts working men and women who must transport themselves too and from work, or who use their vehicles for work. 7)RELATED LEGISLATION . SB 941 (Alquist), also scheduled to be heard in the Assembly Health Committee, coordinates the administration of the Maddy EMS Fund and Proposition 99 funding. 8)CHAPTERING OUT CONCERNS . Both SB 941 and this bill amend Section 1797.98 (a) of the Health and Safety Code. Amendments SB 57 Page 7 must be adopted to avoid chaptering out conflicts should both bills become law. 9)DOUBLE REFERRAL : This bill is double referred and should it pass this committee it will be referred to the Assembly Committee on Public Safety. REGISTERED SUPPORT / OPPOSITION : Support American College of Emergency Physicians State Chapter of California, Inc. (sponsor) American Federation of State, County and Municipal Employees California Advocates for Nursing Home Reform California Ambulance Association California Hospital Association California Nurses Association California Professional Firefighters El Proyecto del Barrio Emergency Medical Services Administrators Association of California Lieutenant Governor Cruz Bustamante Los Angeles County Board of Supervisors New Horizons Pacifica Hospital of the Valley St. Mary Medical Center The Los Angeles Free Clinic Trauma Managers Association of California University of California Opposition Automobile Club of Southern California California Attorneys for Criminal Justice California Conference Board of the Amalgamated Transit Union California Conference of Machinists California Public Defenders Association California State Automobile Association Coalition of Trial Court Clerk Associations Commission on Peace Officer Standards and Training Judicial Council of California Teamsters Analysis Prepared by : Teri Boughton / HEALTH / (916) 319-2097 SB 57 Page 8