BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 1475|
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                                 THIRD READING


          Bill No:  AB 1475
          Author:   Solorio (D)
          Amended:  As introduced
          Vote:     21

           
           SENATE HEALTH COMMITTEE  :  10-0, 6/10/09
          AYES:  Alquist, Strickland, Aanestad, Cedillo, Cox,  
            DeSaulnier, Leno, Maldonado, Negrete McLeod, Wolk
          NO VOTE RECORDED:  Pavley

           ASSEMBLY FLOOR  :  79-0, 5/4/09 (Consent) - See last page for  
            vote


           SUBJECT  :    Emergency medical services

            SOURCE  :     American College of Emergency Physicians,  
                      California 
                         Chapter, Inc. 


           DIGEST  :    This bill limits the reimbursement for  
          administering county Maddy Emergency Medical Services Funds  
          to actual administrative costs or ten percent, whichever is  
          lower, including additional penalty assessment funds  
          authorized until January 2014. 

           ANALYSIS  :    

          Existing law:

          1. Exiting law authorizes counties to establish a Maddy  
                                                           CONTINUED





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             Emergency Medical Services Fund (Maddy Fund) for  
             reimbursement of emergency medical services (EMS)  
             related costs.  Counties are authorized to levy seven  
             dollars for every $10, or fraction thereof, upon fines,  
             penalties and forfeitures collected for criminal  
             offenses for deposit into the Maddy Fund. 

          2. Requires costs of administering the Maddy Fund to be  
             reimbursed based on actual administrative costs, not to  
             exceed ten percent of the amount of the Maddy Fund.

          3. Authorizes, until January 1, 2014, counties to levy an  
             additional penalty in the amount of two dollars for  
             every $10, or fraction thereof, upon fines, penalties,  
             and forfeitures collected for criminal offenses for  
             deposit into the Maddy Fund.  

          4. Requires costs of administering the additional two  
             dollars penalties in the Maddy Fund to be reimbursed  
             based on administrative costs, not to exceed ten percent  
             of the amount of the Maddy Fund.

          This bill:

          1. Makes language in the code section established for  
             additional penalties pertaining to the Maddy Fund  
             consistent with language in the code section established  
             for the original Maddy Fund penalty assessment, which  
             limits the reimbursement for administering Maddy Funds  
             to actual administrative costs.

          2. Limits the reimbursement for administering the Maddy  
             Funds to actual administrative costs, or ten percent,  
             whichever is lower. 

           Background
           
          In 1987, the Legislature concluded that EMS providers bore  
          higher costs for their services than did providers of other  
          medical services, but often received only partial or no  
          payment from patients.  The state enacted a series of bills  
          to compensate physicians and medical facilities for EMS  
          provided to patients who do not have health insurance and  
          cannot pay for their medical care.  SB 12 (Maddy), Chapter  







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          1240, Statutes of 1987, allows counties to establish EMS  
          funds, also known as Maddy Funds.  Revenue sources for  
          Maddy Funds are penalty assessments on certain criminal and  
          traffic violations, and a portion of the fees from people  
          attending traffic violator schools. 

          Funds from penalty assessments must be used to reimburse  
          physicians and hospitals for patients who do not make  
          payment for EMS and have no third-party or government  
          source of payment.  Fifty-eight percent of these funds,  
          after administrative costs, must be distributed to  
          physicians for emergency services, 25 percent to hospitals  
          providing disproportionate levels of trauma and EMS, and 17  
          percent to other EMS, including, but not limited to,  
          regional poison centers, as determined by each county.   
          Physicians can be reimbursed for up to 50 percent of the  
          losses submitted.  Approximately 50 counties have  
          established Maddy Funds.  

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

           SUPPORT  :   (Verified  6/11/09)

          American College of Emergency Physicians, California  
          Chapter, Inc. 
            (source)


           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          this bill makes the language in the code concerning the  
          reimbursement of the administrative costs to the counties  
          for Maddy Funds consistent as it pertains to both the  
          supplemental penalty assessment funds and the underlying  
          Maddy Fund statute. 

          The California Chapter of the American College of Emergency  
          Physicians, sponsor of the bill, states that this  
          clarification will help ensure that counties understand how  
          to properly reimburse themselves for the administrative  
          costs related to the Maddy Fund.


           ASSEMBLY FLOOR  : 







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          AYES:  Adams, Ammiano, Anderson, Arambula, Beall, Bill  
            Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,  
            Brownley, Buchanan, Caballero, Charles Calderon, Carter,  
            Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon,  
            DeVore, Duvall, Emmerson, Eng, Evans, Feuer, Fletcher,  
            Fong, Fuentes, Fuller, Furutani, Gaines, Galgiani,  
            Garrick, Gilmore, Hagman, Hall, Harkey, Hayashi,  
            Hernandez, Hill, Huber, Jeffries, Jones, Knight,  
            Krekorian, Lieu, Logue, Bonnie Lowenthal, Ma, Mendoza,  
            Miller, Monning, Nava, Nestande, Niello, Nielsen, John A.  
            Perez, V. Manuel Perez, Portantino, Price, Ruskin, Salas,  
            Saldana, Silva, Skinner, Smyth, Solorio, Audra  
            Strickland, Swanson, Torlakson, Torres, Torrico, Tran,  
            Villines, Yamada, Bass
          NO VOTE RECORDED:  Huffman


          CTW:do  6/15/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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