BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 57
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          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  








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            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  








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            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 










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