BILL ANALYSIS SB 57 Page 1 Date of Hearing: August 25, 2005 ASSEMBLY COMMITTEE ON APPROPRIATIONS Judy Chu, Chair SB 57 (Alarcon) - As Amended: July 12, 2005 Policy Committee: HealthVote: 8-4 Public Safety 5-2 Urgency: No State Mandated Local Program: No Reimbursable: No SUMMARY This bill authorizes counties to collect an additional $2 penalty assessment for every $10 in base fines for purposes of providing payment for emergency medical services. Sunsets the provisions of this bill January 1, 2009. Specifically, this bill: 1)Authorizes a county board of supervisors to elect to levy an additional penalty of $2 for every $10 or fraction thereof upon every fine, penalty, or forfeiture imposed and collected by the courts for criminal offenses, including violations relating to the control of alcoholic beverages, and all offenses involving a violation of the Vehicle Code or any local ordinance adopted pursuant to the Vehicle Code, except parking offenses, as specified. 2)Requires funds collected as a result of this bill to be deposited into the Maddy Emergency Medical Services (EMS) Fund, with 15% utilized to provide funding for all public and private pediatric trauma centers throughout the county. Requires expenditures to be limited to reimbursement to physicians and hospitals for patients who do not make payment for services, or to hospitals for expanding the services provided at pediatric trauma centers, including the purchase of equipment. 3)Requires counties that do not maintain a pediatric trauma center to utilize the money resulting from this bill to improve access to pediatric trauma and emergency services in the county, with preference for funding given to hospitals that specialize in services to children, and physicians who SB 57 Page 2 provide care for children. 4)Requires costs associated with administering the funds received to be reimbursed from the money collected, capped at 10 percent. FISCAL EFFECT 1)Increased revenue for emergency medical services for the duration of this bill, depending upon the county and the amounts collected, potentially in the tens of millions of dollars annually, to the extent that judges do not reduce base fines and offenders do not opt for jail time in lieu of the increased fines. 2)Indeterminate state revenue loss, potentially in excess of $150,000 GF, to the extent that offenders elect jail time in lieu of paying increased fines, or if judges use their discretion to reduce penalty assessments as a result of the penalty assessment increase authorized by this bill. Either of these scenarios would affect existing state entities funded through state penalty assessments. Data regarding the extent to which judges use their discretion to reduce fines and the number of offenders who serve jail time in lieu of paying fines is not collected by the state, so the extent of state revenue loss resulting from a local penalty assessment increase is difficult to estimate. However, because the state received $231 million in state penalty assessment revenue on a cash basis in 2004-05, a small percentage decrease of .05% in state penalty assessment revenue would result in a state revenue loss of $1.2 million. 3)One-time non-reimbursable increased costs to counties electing to implement an additional penalty assessment for accounting and programming changes, staff training, and revisions to forms. COMMENTS 1)Purpose . The author argues many hospitals suffer from funding shortages, are not adequately prepared to serve the patients in their area, and are often forced to close their doors. Many of these hospitals offer trauma care services essential to saving the lives of many patients who without them would have no choice but to go elsewhere for services. The author SB 57 Page 3 argues trauma care centers face a $635 million dollar shortfall, and this bill seeks to generate funding to help alleviate this problem. 2)Penalty Assessments . Existing law establishes an additional penalty to be assessed by each county on fines, penalties, and forfeitures imposed for criminal offenses and parking penalties, to be used for local courthouse construction, criminal justice facilities construction, automatic fingerprint identification funding, forensic laboratory funding, emergency medical services funding, and DNA identification funding. In most counties, traffic violators pay $21 to $23 in penalty assessments for each $10 (or fraction thereof) in a base fine, plus a 20% state surcharge on the base fine plus related criminal case fees and assessments. The state received approximately $231 million from penalty assessments in 2004-05 on an unaudited cash basis, plus an additional $55.5 million from the 20% surcharge. 3)Maddy EMS Funds . Maddy EMS Funds are used primarily to reimburse physicians and hospitals for patients who do not make payment for emergency medical services. These funds receive two revenue streams: a) penalty assessments on certain criminal offenses and motor vehicle violations, and b) a portion of Proposition 99 tobacco tax funds. Each county, at its option, can establish a Maddy Fund upon adoption of a resolution by the county's board of supervisors. 4)Opposition . 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 capable of reprogramming. The Teamsters and other labor organizations oppose this bill, arguing that assessments can total between 300 to 350% of base violation fine, which goes against truth in government principles, and unfairly impacts men and women who must drive to work, or who use their vehicles for work. Analysis Prepared by : Scott Bain / APPR. / (916) 319-2081 SB 57 Page 4