BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 191| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- UNFINISHED BUSINESS Bill No: SB 191 Author: Padilla (D) Amended: 6/25/13 Vote: 21 SENATE HEALTH COMMITTEE : 9-0, 4/10/13 AYES: Hernandez, Anderson, Beall, De León, DeSaulnier, Monning, Nielsen, Pavley, Wolk SENATE PUBLIC SAFETY COMMITTEE : 7-0, 4/30/13 AYES: Hancock, Anderson, Block, De León, Knight, Liu, Steinberg ASSEMBLY FLOOR : 70-2, 7/1/13 - See last page for vote 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 extends the January 1, 2014, sunset date to January 1, 2021, 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. CONTINUED SB 191 Page 2 Assembly Amendments add a sunset date of January 1, 2021. ANALYSIS : 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 CONTINUED SB 191 Page 3 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. Extends the January 1, 2014, sunset date to January 1, 2021, 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. Extends the January 1, 2014, sunset dates to January 1, 2021, 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. CONTINUED SB 191 Page 4 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 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 7/2/13) 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 Board of Supervisors (co-source) CONTINUED SB 191 Page 5 California Center for Rural Policy California Children's Hospital Association California Fire Chiefs Association California Hospital Association California Nurses Association California School Nurses Association California State Association of Counties California State Council of Emergency Nurses Association Children Now City Ambulance of Eureka, Inc. Coachella Valley Association of Governments Counties of Alameda, Butte, Contra Costa, Del Norte, Humboldt, Lassen, Marin, Merced, San Bernardino, San Diego, San Joaquin, Santa Barbara, Santa Clara, Stanislaus, Ventura, and Yolo County of Los Angeles Sheriff's Department 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 Local Health Plans of California North Coast Emergency Medical Services Paramedics Plus Rural County Representatives of California San Fernando Valley Dental Society Sutter Lakeside Hospital OPPOSITION : (Verified 7/2/13) 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, CONTINUED SB 191 Page 6 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. 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 CONTINUED SB 191 Page 7 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. ASSEMBLY FLOOR : 70-2, 7/1/13 AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom, Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau, Chesbro, Conway, Cooley, Dahle, Daly, Dickinson, Eggman, Fong, Fox, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell, Gray, Grove, Hagman, Harkey, Roger Hernández, Holden, Jones, Jones-Sawyer, Levine, Linder, Lowenthal, Mansoor, Medina, Melendez, Mitchell, Morrell, Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan, Perea, V. Manuel Pérez, Quirk, Quirk-Silva, Rendon, Salas, Skinner, Stone, Ting, Wagner, Waldron, Weber, Wilk, Williams, Yamada, John A. Pérez NOES: Chávez, Donnelly NO VOTE RECORDED: Frazier, Hall, Logue, Maienschein, Patterson, Wieckowski, Vacancy, Vacancy JL:d 7/2/13 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED