BILL ANALYSIS
SB 1773
Page 1
SENATE THIRD READING
SB 1773 (Alarcon)
As Amended August 9, 2006
Majority vote
SENATE VOTE :24-11
HEALTH 9-3 PUBLIC SAFETY 4-2
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|Ayes:|Chan, Berg, Cohn, |Ayes:|Leno , Dymally, Goldberg, |
| |Dymally, Frommer, Lieu, | |Lieber |
| |Montanez, Nakanishi, | | |
| |Ridley-Thomas | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Aghazarian, Richman, |Nays:|La Suer, Spitzer |
| |Strickland | | |
| | | | |
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APPROPRIATIONS 13-5
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|Ayes:|Chu, Bass, Berg, |
| |Calderon, |
| |De La Torre, Karnette, |
| |Klehs, Leno, Nation, |
| |Laird, Ridley-Thomas, |
| |Saldana, Yee |
| | |
|-----+--------------------------|
|Nays:|Sharon Runner, Emmerson, |
| |Haynes, Nakanishi, |
| |Walters |
| | |
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SUMMARY : Authorizes counties to elect to levy an additional $2
for every $10 in base fines for purposes of supporting emergency
medical services (EMS), and requires the additional assessment
to be deposited in local Maddy EMS Funds, with 15% to be
directed to pediatric trauma services. Authorizes up to 10% to
be used for administrative expenses and sunsets the provisions
of this bill on January 1, 2009. Specifically, this bill :
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1)Authorizes, 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 certain
criminal and vehicle code violations.
2)Requires funds to be collected pursuant to #1) above only if
the county board of supervisors provides that the increased
penalties do not offset or reduce the funding of other
programs from other sources, but that these additional
revenues result in increased funding to those programs, and be
deposited into the Maddy EMS Fund, as specified.
3)Requires 15% of the money deposited in the Maddy EMS Fund
pursuant to #1) above to be used to provide funding for
publicly and privately owned and operated pediatric trauma
centers through out the county. 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.
4)Requires counties that do not maintain pediatric trauma
centers to use the pediatric trauma money deposited into the
Maddy EMS Fund 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 and surgeons who provide care for children.
Refers to funds spent for these purposes to be known as
"Richie's Fund."
5)Requires costs of administering money deposited into the Maddy
EMS Fund pursuant to #3) above to be reimbursed from the money
collected, not to exceed 10%.
FISCAL EFFECT : According to the Assembly Appropriations
Committee:
1)Increased revenue for emergency medical services for the
duration of this bill, depending upon county decisions and the
amounts collected, potentially in the tens of millions of
dollars annually, to the extent that judges do not reduce base
SB 1773
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fines and offenders do not opt for jail time in lieu of the
increased fines. Based on state revenue amounts received from
existing penalty assessments, if all counties levied a $2
increase, their total additional revenue would be
approximately $45 million.
2)Indeterminate state revenue loss, potentially in excess of
$150,000 General Fund (GF), to the extent that offenders elect
jail time or community service in lieu of paying increased
fines, or if judges use their discretion to reduce base fines
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 base fines and the number of offenders who serve jail
time or perform community service 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 .5% in state
penalty assessment revenue would result in a state revenue
loss of $1.2 million. This bill requires that funds be
collected under this bill only if the county board of
supervisors provides that the increased penalties do not
offset or reduce the funding of other programs from other
sources, and that these additional revenues result in
increased funding to those programs.
3)One-time non-reimbursable minor increased General Fund costs
(Trial Court Trust Fund) to counties electing to implement an
additional penalty assessment for accounting and programming
changes, staff training, and revisions to forms.
COMMENTS : According to the author, many hospitals throughout
California suffer from funding shortages. As a result,
hospitals are not prepared to adequately serve the patients in
their area and are often forced to close their doors. Many of
these hospitals offer trauma care services that are essential to
saving the lives of patients who without them would have no
choice but to go elsewhere for services. Currently trauma
centers face a $635 million dollar shortfall. The author states
that this bill seeks to generate funding to help alleviate this
problem.
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Previous legislation: SB 57 (Alarcon) of 2005 was substantially
similar to this bill. SB 57 was vetoed by the Governor. In his
veto message the Governor states:
?the addition of new fines and fees tends to reduce
the imposition and collection of existing penalties,
which are passed out on a prorated basis to the
various funds. The Victim Compensation Program
receives a significant portion of its funding from
restitution fines.
While programs seeking new or additional funding in
this manner might in fact be deserving or worthwhile,
it is simply not possible to continue adding new
recipients to the existing program distribution
without reducing funding to current deserving
recipients. Local EMS funds currently receive funds
from penalty assessments. In recognition of the need
for funding, my 2005-2006 budget contains another $10
million dollars in General Fund for trauma centers.
However, I cannot approve further attachment of this
source of funding at the expense of victims and others
who are likely to lose precious funding from this
source if SB 57 were to become law.
The sponsor of this bill, the American College of Emergency
Physicians State Chapter of California, Inc., (Cal/ACEP)
believes this bill could potentially raise $50 million to
reimburse physicians and surgeons for care given to uninsured
patients. Cal/ACEP asserts that a 2004 report by the
California Medical Association (CMA) indicates that losses
sustained by hospitals and physicians in 2001-02 were over $635
million. This Maddy EMS Fund becomes more vital as losses
continue to grow. Cal/ACEP states that this bill will help keep
specialists on call to treat all patients, not just the
uninsured.
Labor organizations such as the California Labor Federation,
AFL-CIO, view assessments such as the one proposed in this bill
as a tax on their members and other workers who drive for a
living. Rising fine levels, high insurance rates, and an
inability to attend traffic school because of recent law
changes, makes it difficult to except increases in assessments.
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The Commission on Peace Officer Standards and Training (POST)
shares the Governor's concern raised in his veto message on SB
57 about the negative impact the additional assessment may have
on existing recipients of the State Penalty Fund, such as Peace
Officers Training Fund.
Analysis Prepared by : Teri Boughton / HEALTH / (916) 319-2097
FN: 0016507