BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:  July 8, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          SB 326  
          (Beall) - As Amended June 2, 2015


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill extends the sunset date of the $4 penalty assessment  
          for Vehicle Code violations, other than parking offenses, and  
          related funding provisions, from January 1, 2016 to January 1,  
          2018, to continue raising revenues to augment funding for  








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          emergency medical air transportation Medi-Cal providers.


          FISCAL EFFECT:


          1)Penalty revenues of around $10 million per year for an  
            additional two years, until 2018 (Emergency Medical Air  
            Transportation Act Fund).  Annual revenues will fluctuate  
            depending on the number of vehicle code violations that result  
            in convictions, as well as other factors.  The numbers below  
            are based on an assumption of $10 million in annual revenue.


          2)Administrative costs, likely in the low hundreds of thousands  
            (Emergency Medical Air Transportation Act Fund).


          3)Reduced GF expenditures of around $2 million per year for  
            Medi-Cal payments, by using penalty revenues to offset GF  
            expenditures for emergency air ambulance services for Medi-Cal  
            beneficiaries.


          4)Annual expenditures of around $16 million per year for  
            supplemental payments to private emergency air medical service  
            providers (Emergency Medical Air Transportation Act Fund and  
            federal funds).


          COMMENTS:


          1)Purpose.  This bill is intended to continue a funding  
            augmentation for emergency medical air transportation that  
            expires January 1, 2016. 


          2)Background. AB 2173 (Beall), Chapter 547, Statutes of 2010  








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            (Emergency Medical Air Transportation Act), imposed an  
            additional penalty of $4 upon every conviction involving a  
            vehicle violation, except certain parking offenses, effective  
            January 1, 2011. The bill required the county or court that  
            imposed the fine to transfer the money to the Treasurer for  
            deposit into the Emergency Air Medical Transportation Act  
            (EMATA) Fund. After payment of the Department of Health Care  
            Services's administrative costs, 20% of the remaining EMATA  
            funds are used to offset the State's portion of the Medi?Cal  
            reimbursement rate for emergency medical air transportation  
            services. The remaining 80% of the fund is matched with  
            federal funds and used to augment funding for air medical  
            transportation by providing supplemental payments.


          3)Penalty Assessments.  In recent years, there has been  
            increasing concern about the ever-growing burden of additional  
            penalties, fines, and assessments applied to criminal and  
            traffic convictions.  The $4 penalty assessment that is the  
            subject of this bill is one of numerous penalty assessments  
            placed on traffic fines.  Currently, a $100 traffic ticket  
            becomes more than $500 when all the various assessments are  
            included.  In their analysis of this bill, the Department of  
            Finance notes their concern with "traffic penalties as a  
            funding mechanism for state programs, because these penalties  
            place a financial burden on a narrow class of citizens for the  
            costs of programs that should be properly borne by the public  
            at large." The Lawyers' Committee for Civil Rights of the San  
            Francisco Bay Area released a report in April 2015 titled "Not  
            Just a Ferguson Problem: How Traffic Courts Drive Inequality  
            in California" that recommends reforms to mitigate the harsh  
            impact of traffic fines on low-income people, including  
            reducing the burden of "exorbitant fines, fees, and  
            assessments."  The report points out that these fees  
            perpetuate a cycle of poverty and inequality, given that  
            low-income people are more likely to miss payments.  When  
            payments are missed, the report notes it results in a cycle of  
            increasing fines and penalties, often culminating in  
            suspension of drivers' licenses or even jail time for failure  








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            to pay, with concomitant poor labor market and social outcomes  
            for these individuals.  


          4)Related Legislation. 


               a)     SB 85 (Committee on Budget and Fiscal Review), the  
                 public safety trailer bill of the 2015-16 budget, creates  
                 an amnesty program for fines and bail initially due on or  
                 before January 1, 2013, to be conducted in accordance  
                 with guidelines adopted by the Judicial Council.  It also  
                 authorizes a low-income amnesty program participant to  
                 receive an additional reduction in his or her repayment  
                 amount. SB 85 is enrolled and pending action by the  
                 Governor.


               b)     SB 405 (Hertzberg), in prior versions, contained  
                 many of the amnesty provisions that came to be included  
                 in SB 85. The amnesty provisions were amended out June  
                 24, 2015, and the bill was amended to address a  
                 defendant's right to receive a court hearing or request  
                 an assessment be vacated.  SB 405 is currently pending in  
                 the Assembly Transportation Committee. 


          5)Staff Comment. Although the $4 fee in this bill is a small  
            percentage of the total amount of penalty assessments and  
            surcharges, it is worth noting significant unintended  
            consequences of the cumulative effect of these additional  
            financial penalties for traffic and criminal violations.  


          Analysis Prepared by:Lisa Murawski / APPR. / (916)  
          319-2081











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