BILL ANALYSIS                                                                                                                                                                                                    �






                             SENATE COMMITTEE ON HEALTH
                          Senator Ed Hernandez, O.D., Chair

          BILL NO:       SB 191
          AUTHOR:        Padilla
          INTRODUCED:    February 7, 2013
          HEARING DATE:  April 10, 2013
          CONSULTANT:    Marchand

           SUBJECT  :  Emergency Medical Services.
           
          SUMMARY  :  Deletes the January 1, 2014, sunset date on provisions  
          of existing law authorizing counties to assess an additional $2  
          on every $10 of certain fines and penalties, including vehicle  
          code violations, to supplement revenues for county Maddy  
          Emergency Medical Services Funds (Maddy Funds), and that require  
          15 percent of these additional funds to be used for pediatric  
          trauma care.

          Existing law:
          1.Permits each county to establish an emergency medical services  
            fund, known as the Maddy Fund, and specifies how these funds  
            are to be used, including limiting administrative costs to no  
            more than 10 percent of the amount in the fund, with 58  
            percent of the balance of the fund distributed to physicians  
            for emergency services in hospitals, 25 percent distributed  
            only to hospitals providing disproportionate trauma and  
            emergency medical care services, and 17 percent distributed  
            for other emergency medical services as determined by each  
            county, including funding regional poison control centers.

          2.Assesses additional penalties on every fine and penalty  
            imposed and collected by the courts for all criminal offenses,  
            including all offenses involving a violation of the Vehicle  
            Code, and requires funds from these additional penalties to be  
            deposited into a county Maddy Fund, if the county has  
            established a Maddy Fund, to pay for emergency medical  
            services as specified.

          3.Requires each county establishing a Maddy Fund to report to  
            the Legislature annually on the implementation and status of  
            the fund.

          4.Permits a county board of supervisors to levy an additional  
            penalty, in addition to the additional penalties already  
            assessed under number 2) above, in the amount of $2 for every  
                                                         Continued---



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            $10 upon every fine and penalty imposed and collected by the  
            courts for all criminal offenses, in order to supplement  
            county Maddy Funds. Sunsets this provision on January 1, 2014.

          5.Permits the additional fines authorized in number 3) above to  
            only be collected 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. Sunsets this provision on January 1, 2014.

          6.Requires that of the additional money deposited into county  
            Maddy Funds pursuant to number 3) above, 15 percent be used to  
            provide funding for pediatric trauma centers, as specified.  
            This separate allocation for pediatric trauma is known as  
            Richie's Funds. Requires counties that do not maintain a  
            pediatric trauma center to utilize the money to improve access  
            to, and coordination of, pediatric trauma and emergency  
            services in the county, with preference for funding given to  
            hospitals that specialize in services to children. Sunsets  
            this provision on January 1, 2014.
          
          This bill:
          1.Deletes the January 1, 2014, sunset date on existing law  
            permitting an additional $2 on every $10 fine or penalty  
            imposed by a county for purposes of supplementing county Maddy  
            Funds.

          2.Deletes the January 1, 2014, sunset dates on existing law  
            requiring that 15 percent of the additional penalty revenue be  
            used for pediatric trauma services, and that no more than 10  
            percent of the additional penalty revenue be used for  
            administrative costs of these additional funds.

           FISCAL EFFECT  :  This bill is keyed non-fiscal.

           COMMENTS  :  
           1.Author's statement.  Californians, regardless of geographic  
            location, income or ethnicity, continue to face either  
            increased emergency wait time, being rerouted to other  
            hospitals, or both. Additionally, pediatric trauma care is  
            still not widely available in California. There are only 14  
            pediatric trauma care centers in our state of 38 million  
            people. Too often, pediatric trauma patients must be  
            transported by helicopter to trauma centers and the time that  
            elapses during transport can impact survival and recovery  




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            rates.

          In 2006, legislation was signed into law authorizing counties to  
            supplement their local Maddy Fund by collecting an additional  
            $2 penalty on every $10 assessment on certain criminal and  
            vehicle code violations, 15 percent of which is allocated to  
            pediatric trauma care. This is the only dedicated source of  
            funding for pediatric trauma care.

          More than 20 counties throughout the state have elected to  
            collect the additional revenue. Because of the sunset  
            provision, as of January 1, 2014, counties will no longer be  
            able to collect these additional revenues to fund emergency  
            medical services and pediatric trauma care.
            
          2.Double referral.  This bill is double referred. Should it pass  
            out of this committee, it will be referred to the Senate  
            Committee on Public Safety.
            
          3.Prior legislation. SB 1236 (Padilla), Chapter 60, Statutes of  
            2008, extended the sunset dates, from January 1, 2009, to  
            January 1, 2014, on provisions of law authorizing counties to  
            assess an additional $2 on every $10 in fines to supplement  
            Maddy Funds, with 15 percent of these additional funds  
            allocated to pediatric trauma care. These are the sunset dates  
            that this bill is proposing to delete.

          SB 1773 (Alarcon), Chapter 841, Statutes of 2006, enacted the  
            provisions of law that authorized counties to assess an  
            additional $2 on every $10 in fines to supplement Maddy Funds,  
            with 15 percent of these additional funds allocated to  
            pediatric trauma care. These are the provisions of law that  
            this bill is seeking to make permanent.
          4.Support.  This bill is sponsored by the California Chapter of  
            the American College of Emergency Physicians (California  
            ACEP), which states that emergency care is California is in  
            crisis. California ACEP states that in the past decade, more  
            than 65 emergency departments have closed, ED visits are up,  
            wait times continue to increase, and hospital diversion is on  
            the rise. California ACEP states that in response to these  
            challenges, in 2006 SB 1773 (Alarcon) was signed into law to  
            raise approximately $50 million to augment county Maddy Funds.  
             The Maddy Fund is intended to mitigate the losses for  
            treating the uninsured, particularly in rural and urban  
            emergency departments. California ACEP points out that a  




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            recent study by the UCLA Center for Health Policy Research  
            indicates that despite the implementation of the Affordable  
            Care Act, three to four million Californians will still remain  
            uninsured, and that this bill is critical to maintaining  
            access to high quality emergency services.

          The Los Angeles County Board of Supervisors states that since  
            the inception of the funding of the pediatric trauma  
            component, also known as Richie's Funds, $11.6 million in  
            these funds have been allocated to implement and to expand  
            pediatric trauma care and emergency services at both County  
            and non-County facilities. Los Angeles County states that it  
            will continue to provide emergency care for the thousands of  
            persons in the County who will remain without insurance cove  
            rage even after the implementation of the Affordable Care Act.  
            Retaining the availability of Richie's Funds is critical to  
            maintaining the County's fragile trauma and emergency care  
            system. Numerous other counties have written in support with  
            similar arguments.

          The California Hospital Association also supports this bill,  
            stating that it is estimated that through the optional  
            implementation of both the original Maddy Fund and the  
            supplemental assessment funds, counties, physicians,  
            hospitals, local emergency medical services providers, and the  
            Richie Fund for pediatric trauma, receive approximately $94  
            million annually statewide. 

          5.Opposition.  The Automobile Club of Southern California (Auto  
            Club) states in opposition that according to the Uniform Bail  
            and Penalty Schedule, published by the Judicial Council of  
            California, current penalty assessments are in excess of about  
            380 percent of the base fine. This means that for every $10,  
            about $38 is added, with a share going to the state and  
            counties. The Auto Club states that about 70 percent - 80  
            percent of penalty assessment revenue is generated from  
            Vehicle Code moving violations. The Auto Club states that  
            penalty assessments were originally established in the 1950s  
            to fund drivers training in public schools, but over time, the  
            amount of assessments has increased exponentially and today  
            they fund a plethora of programs largely unrelated to traffic  
            safety.

          The Auto Club asserts that although some people involved in  
            vehicular collisions utilize emergency room services, many  
            arrive in emergency rooms due to causes or circumstances  




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            unrelated to driving or traffic crashes, including violent  
            crimes, sporting activities, or general illness. The Auto Club  
            argues that while emergency room services are a necessary and  
            laudable effort to support, funding the program through  
            assessments on Vehicle Code tickets places a disproportionate  
            burden upon the motoring public to achieve this goal.
           
          SUPPORT AND OPPOSITION  :
          Support:  California Chapter of the American College of  
                    Emergency Physicians (sponsor)
                    Los Angeles County Board of Supervisors (co-sponsor)
                    Emergency Medical Services Administrators Association
                    California Children's Hospital Association
                    California Hospital Association
                    California State Association of Counties
                    Children's Hospital & Research Center Oakland
                    Contra Costa County Board of Supervisors
                    County of San Diego
                    Santa Clara County Board of Supervisors
                    Stanislaus County Board of Supervisors
                    Ventura County Board of Supervisors
          
          Oppose:   Automobile Club of Southern California

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