Amended in Assembly August 31, 2015

Amended in Senate June 2, 2015

Senate Bill No. 326

Introduced by Senator Beall

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(Coauthors: Senators Galgiani, Nielsen, and Vidak)

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(Coauthors: Assembly Members Chu, Cooley, Cooper, Rodriguez, and Wood)

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February 23, 2015

An act to amend Section 76000.10 of the Government begin delete Code, end delete begin insert Code, and to add Section 10752 to the Welfare and Institutions Code, end insert relating to begin delete courts. end delete begin insert emergency services. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 326, as amended, Beall. Courts: penalties: emergency services funding.

Under existing law, the Emergency Medical Air Transportation Act, a penalty of $4 is imposed upon every conviction for a violation of the Vehicle Code, or a local ordinance adopted pursuant to the Vehicle Code, other than a parking offense. Existing law requires the county or the court that imposed the fine to transfer the moneys collected pursuant to this act to the Emergency Medical Air Transportation Act Fund. Under existing law, the assessment of these penalties will terminate on January 1, 2016, and any moneys unexpended and unencumbered in the Emergency Medical Air Transportation Act Fund on June 30, 2017, will transfer to the General Fund. Existing law repeals the Emergency Medical Air Transportation Act on January 1, 2018.

This bill would extend the dates of the Emergency Medical Air Transportation Act, so that the assessment of the penalties will terminate commencing January 1, 2018, and any moneys unexpended and unencumbered in the Emergency Medical Air Transportation Act Fund on June 30, 2019, will transfer to the General Fund. The bill would begin delete repeal end delete begin insert extend the operation of end insert the Emergency Medical Air Transportation Act begin delete on end delete begin insert until end insert January 1, 2020.

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The bill would also make legislative findings and declarations as to the harmful effects of relying on penalty assessments to fund core state programs and the necessity to identify alternative funding sources for emergency medical air transportation services. The bill would require the State Department of Health Care Services and the Department of Finance to develop, by March 1, 2017, a funding plan that ensures adequate reimbursement to emergency medical air transportation providers following the expiration of the Emergency Medical Air Transportation Act on January 1, 2020.

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Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

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begin insert The Legislature finds and declares all of the
following: end insert

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(a) Penalty assessments have been used to fund an increasing
number of programs that should properly be funded by
broad-based financing mechanisms.

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(b) The ever-increasing reliance on penalty assessments to fund
core state programs is a regressive financing mechanism, and is
particularly harmful to individuals who can least afford these
assessments. High fines and assessments can perpetuate a cycle
of poverty and inequality, given that individuals with lower incomes
are more likely to miss payments and suffer the consequences.

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(c) It is in the state’s interest to ensure funding for emergency
medical air transportation is sufficient to maintain access to these
critical services for Medi-Cal beneficiaries and all individuals in
California.

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(d) Therefore, it is the intent of the Legislature to identify
alternative funding sources for emergency medical air
transportation and cease reliance on penalty assessment revenue
to fund these services.

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(e) Accordingly, it is the intent of the Legislature to cease the
collection of penalty assessments on January 1, 2018, pursuant to
the Emergency Medical Air Transportation Act.

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begin delete SECTION 1. end delete
begin insert SEC. 2. end insert   

Section 76000.10 of the Government Code is amended
to read:

76000.10.  

(a) This section shall be known, and may be cited,
as the Emergency Medical Air Transportation Act.

(b) For purposes of this section:

(1) “Department” means the State Department of Health Care
Services.

(2) “Director” means the Director of Health Care Services.

(3) “Provider” means a provider of emergency medical air
transportation services.

(4) “Rotary wing” means a type of aircraft, commonly referred
to as a helicopter, that generates lift through the use of wings,
known as rotor blades, that revolve around a mast.

(5) “Fixed wing” means a type of aircraft, commonly referred
to as an airplane, that generates lift through the use of the forward
motion of the aircraft and wings that do not revolve around a mast
but are fixed in relation to the fuselage of the aircraft.

(6) “Air mileage rate” means the per-mileage reimbursement
rate paid for services rendered by rotary-wing and fixed-wing
providers.

(c) (1) For purposes of implementing this section, a penalty of
four dollars ($4) shall be imposed upon every conviction for a
violation of the Vehicle Code or a local ordinance adopted pursuant
to the Vehicle Code, except parking offenses subject to Article 3
(commencing with Section 40200) of Chapter 1 of Division 17 of
the Vehicle Code.

(2) The penalty described in this subdivision shall be in addition
to the state penalty assessed pursuant to Section 1464 of the Penal
Code. However, this penalty shall not be included in the base fine
used to calculate the state penalty assessment pursuant to
subdivision (a) of Section 1464 of the Penal Code, the state
surcharge levied pursuant to Section 1465.7 of the Penal Code,
and the state court construction penalty pursuant to Section 70372
of this code, and to calculate the other additional penalties levied
pursuant to this chapter.

(d) The county or the court that imposed the fine shall, in
accordance with the procedures set out in Section 68101, transfer
moneys collected pursuant to this section to the Treasurer for
deposit into the Emergency Medical Air Transportation Act Fund,
which is hereby established in the State Treasury. Notwithstanding
Section 16305.7, the Emergency Medical Air Transportation Act
Fund shall include interest and dividends earned on money in the
fund.

(e) (1) The Emergency Medical Air Transportation Act Fund
shall be administered by the State Department of Health Care
Services. Moneys in the Emergency Medical Air Transportation
Act Fund shall be made available, upon appropriation by the
Legislature, to the department to be used as follows:

(A) For payment of the administrative costs of the department
in administering this section.

(B) Twenty percent of the fund remaining after payment of
administrative costs pursuant to subparagraph (A) shall be used
to offset the state portion of the Medi-Cal reimbursement rate for
emergency medical air transportation services.

(C) Eighty percent of the fund remaining after payment of
administrative costs pursuant to subparagraph (A) shall be used
to augment emergency medical air transportation reimbursement
payments made through the Medi-Cal program, as set forth in
paragraphs (2) and (3).

(2) (A) The department shall seek to obtain federal matching
funds by using the moneys in the Emergency Medical Air
Transportation Act Fund for the purpose of augmenting Medi-Cal
reimbursement paid to emergency medical air transportation
providers.

(B) The director shall do all of the following:

(i) By March 1, 2011, meet with medical air transportation
providers to determine the most appropriate methodology to
distribute the funds for medical air services.

(ii) Implement the methodology determined most appropriate
in a timely manner.

(iii) Develop the methodology in collaboration with the medical
air providers.

(iv) Submit any state plan amendments or waiver requests that
may be necessary to implement this section.

(v) Submit any state plan amendment or waiver request that
may be necessary to implement this section.

(vi) Seek federal approvals or waivers as may be necessary to
implement this section and to obtain federal financial participation
to the maximum extent possible for the payments under this
section. If federal approvals are not received, moneys in the fund
may be distributed pursuant to this section until federal approvals
are received.

(C) The director may give great weight to the needs of the
emergency medical air services providers, as discussed through
the development of the methodology.

(3) (A) Upon appropriation by the Legislature, the department
shall use moneys in the Emergency Medical Air Transportation
Act Fund and any federal matching funds to increase the Medi-Cal
reimbursement for emergency medical air transportation services
in an amount not to exceed normal and customary charges charged
by the providers.

(B) Notwithstanding any other law, and pursuant to this section,
the department shall increase the Medi-Cal reimbursement for
emergency medical air transportation services begin delete provided that end delete begin insert if end insert both
of the following conditions are met:

(i) Moneys in the Emergency Medical Air Transportation Act
Fund will cover the cost of increased payments pursuant to
subparagraph (A).

(ii) The state does not incur any General Fund expense to pay
for the Medi-Cal emergency medical air transportation services
increase.

(f) The assessment of penalties pursuant to this section shall
terminate on January 1, 2018. Penalties assessed before January
1, 2018, shall continue to be collected, administered, and
distributed pursuant to this section until exhausted or until June
30, 2019, whichever occurs first. On June 30, 2019, moneys
remaining unexpended and unencumbered in the Emergency
Medical Air begin delete Transport end delete begin insert Transportation end insert Act Fund shall be transferred
to the General Fund, to be available, upon appropriation by the
Legislature, for the purposes of augmenting Medi-Cal
reimbursement for emergency medical air transportation and related
costs, generally.

(g) Notwithstanding the rulemaking provisions of Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title
2, the department may implement, interpret, or make specific this
section and any applicable federal waivers and state plan
amendments by means of all-county letters, plan letters, plan or
provider bulletins, or similar instructions without taking regulatory
action.

(h) This section shall remain in effect only until January 1, 2020,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2020, deletes or extends that date.

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begin insert SEC. 3. end insert   

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begin insert Section 10752 is added to the end insert begin insert Welfare and Institutions
Code end insert begin insert , to read: end insert

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begin insert 10752. end insert   

The department shall, by March 1, 2017, in
coordination with the Department of Finance, develop a funding
plan that ensures adequate reimbursement to emergency medical
air transportation providers following the termination of penalty
assessments pursuant to subdivision (f) of Section 76000.10 of the
Government Code on January 1, 2018.

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