BILL ANALYSIS                                                                                                                                                                                                    Ó




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                                UNFINISHED BUSINESS 


          Bill No:  SB 326
          Author:   Beall (D), et al.
          Amended:  8/31/15  
          Vote:     21  

           SENATE HEALTH COMMITTEE:  8-0, 4/8/15
           AYES:  Hernandez, Hall, Mitchell, Monning, Nielsen, Pan, Roth,  
            Wolk
           NO VOTE RECORDED:  Nguyen

           SENATE APPROPRIATIONS COMMITTEE:  7-0, 5/28/15
           AYES:  Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen

           SENATE FLOOR:  31-5, 6/3/15
           AYES:  Allen, Bates, Beall, Berryhill, Block, Cannella, De  
            León, Galgiani, Glazer, Hall, Hernandez, Hertzberg, Hill,  
            Hueso, Huff, Jackson, Lara, Leno, Leyva, Liu, McGuire,  
            Mendoza, Mitchell, Monning, Nielsen, Pan, Pavley, Roth, Vidak,  
            Wieckowski, Wolk
           NOES:  Anderson, Moorlach, Morrell, Nguyen, Stone
           NO VOTE RECORDED:  Fuller, Gaines, Hancock, Runner

           ASSEMBLY FLOOR:  74-0, 9/10/15 - See last page for vote

           SUBJECT:   Courts: penalties: emergency services funding


          SOURCE:    California Association of Air Medical Services

          DIGEST:   This bill extends the sunset date of the $4 penalty  
          assessment for Vehicle Code violations other than parking  
          offenses, until January 1, 2018, with the resulting revenue  
          deposited in the Emergency Medical Air Transportation Act Fund  
          (Fund).  Money in that Fund is primarily used to fund Medi-Cal  
          reimbursement for emergency medical air transportation services.  








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          Requires the Department of Health Care Services to develop a  
          funding plan that ensures adequate reimbursement to emergency  
          medical air transportation providers following the termination  
          of penalty assessments under this bill on January 1, 2018.

          Assembly Amendments require DHCS, by March 1, 2017, in  
          coordination with the Department of Finance, to develop a  
          funding plan that ensures adequate reimbursement to emergency  
          medical air transportation providers following the termination  
          of penalty assessments under this bill on January 1, 2018, and  
          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.
          
          ANALYSIS: 
          
          Existing law:

          1)Levies, under the Emergency Medical Air Transportation Act  
            (Act), a penalty of $4 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. 

          2)Sunsets the assessment of the $4 penalty under the Act  
            commencing January 1, 2016, and transfers any moneys  
            unexpended and unencumbered in the Fund on June 30, 2017, to  
            the General Fund. 

          3)Requires the county or the court that imposed the fine to  
            transfer the moneys collected to the Fund. 

          4)Requires moneys in the Fund to be made available, upon  
            appropriation by the Legislature, to the Department of Health  
            Care Services (DHCS), to be for payment of DHCS administrative  
            costs, with the remainder being used as follows:

             a)   Twenty percent to offset the state portion of the  
               Medi-Cal reimbursement rate for emergency medical air  
               transportation services; and,

             b)   Eighty percent to augment emergency medical air  








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               transportation reimbursement payments made through the  
               Medi-Cal program.

          5)Requires DHCS to seek to obtain federal matching funds by  
            using the moneys in the Fund for the purpose of augmenting  
            Medi-Cal reimbursement paid to emergency medical air  
            transportation providers.

          6)Repeals the section of law establishing the Act, the Fund, and  
            the Medi-Cal emergency medical air transportation  
            reimbursement provisions on January 1, 2018.

          This bill:

          1)Extends the sunset date of the $4 penalty assessment  
            established under the Act, from January 1, 2016 to January 1,  
            2018.

          2)Extends the January 1, 2018 sunset date of the Act to January  
            1, 2020, and makes related changes.

          3)Requires DHCS, by March 1, 2017, in coordination with the  
            Department of Finance, to develop a funding plan that ensures  
            adequate reimbursement to emergency medical air transportation  
            providers following the termination of penalty assessments  
            under this bill on January 1, 2018.

          4)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.

          Background

          AB 2173 (Beall, Chapter 547, Statutes of 2010), levied a $4  
          additional penalty on Vehicle Code violations (excluding parking  
          tickets), with the resulting revenue being used as the state  
          match to draw down additional federal Medicaid matching funds to  
          fund Medi-Cal emergency air medical transportation services.  
          Between $11.2 and $13.7 million has been raised annually from  
          the AB 2173 penalty assessment. Of that amount, $2.2 to $2.7  
          million is used as the state match to fund current emergency air  








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          ambulance Medi-Cal provider rates. The remaining $9 to $11  
          million is used to match with federal dollars to augment  
          Medi-Cal rates to emergency air ambulance providers. The $9 to  
          $11 million augmentation amounts from AB 2173 are provided as  
          supplemental payments to eligible Medi-Cal air medical  
          transportation providers that provide fee-for-service emergency  
          air medical transportation services. Approximately 23 air  
          ambulance providers receive the resulting revenue.

          1)Penalty Assessments.  According to the Judicial Council, the  
            calculation for a traffic ticket in California, and  
            determining where the money goes once collected, is complex.  
            The cost of a traffic ticket includes a base fine amount plus  
            penalty assessments and fees to fund specific state and local  
            activities. The base fine is collected for, and distributed  
            to, either the local government or local government and  
            county. The increase in the total cost of a traffic ticket  
            (above the base fine) in California over the last 20 years is  
            primarily the result of the addition of mandatory penalty  
            assessments and fees.

            Penalty assessments are typically calculated from the base  
            fine for the traffic ticket and are part of the punishment  
            that is imposed for the violation. The penalties collected are  
            distributed to many different city, county, and state funds  
            established by the local government and Legislature for  
            activities such as DNA collection in criminal cases, emergency  
            medical services, local criminal justice facilities, emergency  
            medical air transportation, and court facility maintenance and  
            construction. The chart below lists three examples of the cost  
            and distribution of a typical traffic ticket, including the  
            base fine, penalties, and fees. The chart below, created by  
            the Judicial Council, provides information on a typical ticket  
            for faulty equipment ($25), a moving violation ($35), and  
            driving more than 25 MPH over the speed limit ($100).


              ----------------------------------------------------------- 
             |           2013 Traffic Infraction Bail Examples           |
              ----------------------------------------------------------- 
              ------------------------------------------------------------ 
             |                              | Faulty  | Moving |   Over   |








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             |                              |Equipment|Violatio| Limit    |
             |                              |         |   n    | 25 MPH   |
              ------------------------------------------------------------ 
              ------------------------------------------------------------ 
             |         |                    |         |        |          |
              ------------------------------------------------------------ 
              ------------------------------------------------------------ 
             |                    Base Fine |   $25.00|  $35.00|   $100.00|
              ------------------------------------------------------------ 
             |--------------------+--------------------+--------------------+--------------------+--------------------|
             |Penalty Assessment  |State PA ($10)      |               30.00|               40.00|              100.00|
             |(PA) for every $10  |                    |                    |                    |                    |
             |or part of $10 of   |                    |                    |                    |                    |
             |Base Fine           |                    |                    |                    |                    |
              -------------------------------------------------------------------------------------------------------- 
             |                    |County PA (up to    |               21.00|               28.00|               70.00|
             |                    |$7)                 |                    |                    |                    |
              -------------------------------------------------------------------------------------------------------- 
             |                    |Emergency Medical   |                6.00|                8.00|               20.00|
             |                    |Services PA ($2)    |                    |                    |                    |
              -------------------------------------------------------------------------------------------------------- 
             |                    |DNA Fund PA ($5)    |               15.00|               20.00|               50.00|
             |--------------------+--------------------+--------------------+--------------------+--------------------|
             |                    |Court Facilities PA |               15.00|               20.00|               50.00|
             |                    |($5)                |                    |                    |                    |
              -------------------------------------------------------------------------------------------------------- 
              ------------------------------------------------------------ 
             |Emergency Medical Air         |     4.00|    4.00|      4.00|
             |Transportation PA             |         |        |          |
              ------------------------------------------------------------ 
             |State Surcharge (20% of Base  |     5.00|    7.00|     20.00|
             |Fine)                         |         |        |          |
              ------------------------------------------------------------ 
             |     Fine and Penalty Subtotal|  $121.00| $162.00|   $414.00|
              ------------------------------------------------------------ 
             |Court Operations Fee ($40)    |    40.00|   40.00|     40.00|
              ------------------------------------------------------------ 
             |Criminal Conviction Fee ($35) |    35.00|   35.00|     35.00|
              ------------------------------------------------------------ 
             |Night Court Fee               |     1.00|    1.00|      1.00|
             |------------------------------+---------+--------+----------|
             |                         Total|  $197.00| $238.00|$490.00   |








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             |                              |         |        |          |
              ------------------------------------------------------------ 

          Comments

          Author's statement.  According to the author, "[M]any emergency  
          patients transported by air ambulances have no insurance, are  
          not eligible for Medi-Cal, and have no ability to pay for the  
          service, yet these patients are given the same high level of  
          care as those with medical insurance. The Medi-Cal fee schedule  
          pays air ambulance services far below the cost of providing  
          emergency air transportation, and pays nothing if the patient is  
          indigent. Emergency air ambulance services provide coverage to  
          multiple counties within a 100-mile radius of their bases, and  
          as a result often their transports originate in a county other  
          than where they are based. This makes it difficult for them to  
          be funded by local tax support except in the largest of  
          counties. Emergency physicians and air ambulances do not receive  
          additional funding through the Disproportionate Share Hospital  
          (DSH) program, or the county Maddy Emergency Medical Services  
          Fund when they provide treatment to indigent patients. Prior to  
          enactment of the Act, Medi-Cal funding for air ambulances had  
          not increased for nearly 20 years. This bill will continue to  
          provide critical funding to these services and will prevent  
          funding for air ambulances from reverting back to 1993 levels by  
          continuing the $4 penalty to fund air ambulance services."

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

          According to the Assembly Appropriations Committee:


          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  








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            (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).




          SUPPORT:   (Verified9/8/15)


          California Association of Air Medical Services (source)
          Board for Critical Care Transport Paramedic Certification
          California Ambulance Association
          California Children's Hospital Association
          California Hospital Association 
          CALSTAR
          Care Flight
          Children's Hospital Los Angeles
          Emergency Nurse Association
          Hall Ambulance Service, Inc.
          Helinet Aviation Services
          Loma Linda Children's Hospital
          Manteca District Ambulance Service
          Mercy Air Services
          Mercy Medical Center Redding
          PHI Air Medical
          REACH Air Medical Services
          Rural County Representatives of California 
          Sonora Regional Medical Center
          Stanford Life Flight










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          OPPOSITION:   (Verified9/8/15)


          None received


          ARGUMENTS IN SUPPORT:     This bill is sponsored by the  
          California Association of Air Medical Services (Cal-AAMS), which  
          argues this bill will maintain the current level of Medi-Cal  
          funding of emergency air ambulance transportation by removing  
          the sunset clause on the Act created in 2010. Cal-AAMSS states  
          air ambulance services provide life-saving emergency  
          transportation to the most critical patients from automobile  
          accident scenes directly to trauma centers. In addition,  
          emergency helicopter air ambulance providers provide a critical  
          link between rural areas and urban tertiary care hospitals  
          (trauma centers, heart/stroke centers, burn units) and are an  
          essential part of the statewide emergency medical services  
          system. Prior to the Act, Medi-Cal funding for air ambulances  
          had not increased for nearly 20 years. This bill will continue  
          to provide critical funding to this essential life-saving  
          service, and will prevent funding for air ambulances to revert  
          back to 1993 levels. Removing the sunset for this penalty will  
          ensure the program continues to support these critical services.

          The Rural County Representatives of California (RCRC) write in  
          support that air ambulance service is critical in rural and  
          remote areas of California and a healthy air ambulance system  
          ensures rural communities have access to life-saving care for  
          both residents and tourists. RCRC states its member counties  
          have had no issues in their administrative role in administering  
          the penalty assessment, and they believe the Act should be  
          continued in order to promote a vital health care delivery  
          system that is so important in rural and remote areas.

           ASSEMBLY FLOOR:  74-0, 9/10/15
           AYES:  Achadjian, Alejo, Baker, Bigelow, Bloom, Bonilla, Bonta,  
            Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez,  
            Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd,  
            Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia,  
            Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray,  
            Grove, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer,  








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            Kim, Lackey, Levine, Lopez, Low, Maienschein, Mathis, Mayes,  
            McCarty, Medina, Melendez, Mullin, Nazarian, O'Donnell, Olsen,  
            Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez,  
            Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting,  
            Waldron, Weber, Wilk, Williams, Wood, Atkins
           NO VOTE RECORDED:  Travis Allen, Hadley, Harper, Linder,  
            Obernolte, Wagner




          Prepared by:Scott Bain / HEALTH / 
          9/10/15 23:27:59


                                   ****  END  ****