BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



           ----------------------------------------------------------------- 
          |SENATE RULES COMMITTEE            |                        SB 191|
          |Office of Senate Floor Analyses   |                              |
          |1020 N Street, Suite 524          |                              |
          |(916) 651-1520         Fax: (916) |                              |
          |327-4478                          |                              |
           ----------------------------------------------------------------- 
           
                                           
                                    THIRD READING


          Bill No:  SB 191
          Author:   Padilla (D)
          Amended:  As introduced
          Vote:     21

           
           SENATE HEALTH COMMITTEE  :  9-0, 4/10/13
          AYES:  Hernandez, Anderson, Beall, De Le�n, DeSaulnier, Monning,  
            Nielsen, Pavley, Wolk

           SENATE PUBLIC SAFETY COMMITTEE  :  7-0, 4/30/13
          AYES:  Hancock, Anderson, Block, De Le�n, Knight, Liu, Steinberg


           SUBJECT  :    Emergency medical services

           SOURCE  :     California Chapter of American College of Emergency  
          Physicians
                       California District of the American Academy of  
                        Pediatrics 
                       California Medical Association 
                       Los Angeles County Board of Supervisors


           DIGEST  :    This bill deletes the January 1, 2014, sunset date on  
          two provisions of existing law 1) 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  
          2) requiring 15% of these additional funds to be used for  
          pediatric trauma care.

           ANALYSIS  :    
                                                                CONTINUED





                                                                     SB 191
                                                                     Page  
          2


          Existing law:

          1. Permits each county to establish an emergency medical  
             services (EMS) fund, known as the Maddy Fund, and specifies  
             how these funds are to be used.

          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 EMS, 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 #2) above, in the amount of $2 for every $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 #2) 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 #4) above, 15% be used to provide  
             funding for pediatric trauma centers, as specified.  This  
             separate allocation for pediatric trauma is known as Richie's  
             Funds, and 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.







                                                                     SB 191
                                                                     Page  
          3


          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% of the additional penalty revenue be used  
             for pediatric trauma services, and that no more than 10% of  
             the additional penalty revenue be used for administrative  
             costs of these additional funds.

           Background
           
           Existing penalty assessments  .  Until budget year 2002-03, there  
          was 170% in penalty assessments applied to every fine.  Current  
          penalty assessments are approximately 310% plus $79 in  
          additional flat assessments.

           The Maddy Fund  .  The Maddy Fund was created (SB 12 (Maddy) 1987)  
          to provide supplemental financing for local emergency services.   
          The law permits, but does not require, each county to levy a $2  
          penalty assessment to each $10 of traffic fines, with the sums  
          raised to be deposited in the EMS fund.  10% of the total  
          revenue is annually deducted for administration; and the  
          remaining EMS revenues are divided 58% to physicians for  
          uncompensated ER costs, 25% to trauma centers and hospitals, and  
          17% for county EMS.

          Additional 20% Assessment  .  Existing law, which sunsets on  
          January 1, 2014,  provides that a county board of supervisors  
          may elect to levy an additional penalty of $2 for every $10 on  
          every fine, penalty, forfeiture for criminal offenses including  
          those relating to the Alcoholic Beverage Control Act and all  
          offenses dealing with the Vehicle Code, except parking offenses.  
           The assessment for the purposes of supporting EMS is in  
          addition to the existing 20% penalty assessment for these  
          purposes.  

          Money collected under the statute to be continued under this  
          bill shall be deposited with the county treasurer.  Of the money  
          deposited into the EMS fund under this statute, 15% shall be  







                                                                     SB 191
                                                                     Page  
          4

          utilized to provide funding for pediatric trauma centers.  The  
          statute provides that expenditures shall be limited to  
          reimbursement to physicians, and surgeons, and 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.  

           Prior legislation
          
          SB 623 (Speier, Chapter 679, Statutes of 1999) requires that in  
          those counties that have established a Maddy Fund, an amount  
          equal to a specified sum is to be deposited by the county  
          treasurer in the Maddy Fund.

          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% 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) enacts the  
          provisions of law that authorize counties to assess an  
          additional $2 on every $10 in fines to supplement Maddy Funds,  
          with 15% of these additional funds allocated to pediatric trauma  
          care.  These are the provisions of law that this bill is seeking  
          to make permanent.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   Local:  
           No

           SUPPORT  :   (Verified  5/1/13)

          California Chapter, American College of Emergency Physicians  
          (co-source)
          California District of the American Academy of Pediatrics  
          (co-source)
          California Medical Association (co-source)
          Los Angeles County (co-source)
          California Center for Rural Policy
          California Children's Hospital Association
          California Fire Chiefs Association
          California Hospital Association







                                                                     SB 191
                                                                     Page  
          5

          California Nurses Association
          California School Nurses Association
          California State Association of Counties
          California State Council of Emergency Nurses Association
          City Ambulance of Eureka, Inc.
          Counties of Butte, Contra Costa, Marin, Merced, San Bernardino,  
          San Diego,
              San Joaquin, Santa Barbara, Santa Clara, Stanislaus,  
          Ventura, and Yolo
          Del Norte Ambulance
          Emergency Medical Services Administrators Association of  
          California
          Health Officers Association of California 
          Hospital Corporation of America
          Lake County Health Services Department
          League of California Cities
          North Coast Emergency Medical Services
          Paramedics Plus
          Rural County Representatives of California 
          San Fernando Valley Dental Society  
          Urban Counties Caucus 

           OPPOSITION  :    (Verified  5/1/13)

          Automobile Club of Southern California

           ARGUMENTS IN SUPPORT  :    One of the bill's sponsors, the  
          California Chapter of the American College of Emergency  
          Physicians (California ACEP), states that emergency care is  
          California is in crisis.  California ACEP states that in the  
          past decade, more than 65 emergency departments have closed,  
          emergency department visits are up, wait times continue to  
          increase, and hospital diversion is on the rise.  California  
          ACEP states that in response to these challenges, SB 1773  
          (Alarcon) was signed into law in 2006 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 recent study by the UCLA  
          Center for Health Policy Research indicates that despite the  
          implementation of the Affordable Care Act (ACA), three to four  
          million Californians will still remain uninsured, and that this  
          bill is critical to maintaining access to high quality emergency  
          services.







                                                                     SB 191
                                                                     Page  
          6


          The Los Angeles County Board of Supervisors (Board) states that  
          since the inception of the funding Richie's Funds, $11.6 million  
          in these funds have been allocated to implement and to expand  
          pediatric trauma care and EMS at both county and non-county  
          facilities.  The Board 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 ACA.  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 EMS providers, and Richie's Fund, will receive  
          approximately $94 million annually statewide.

           ARGUMENTS IN 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% 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% - 80% 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  
          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.  
           







                                                                     SB 191
                                                                     Page  
          7


          JL:d  5/2/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

                                   ****  END  ****