BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 215
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          Date of Hearing:   May 3, 2011

                            ASSEMBLY COMMITTEE ON HEALTH
                              William W. Monning, Chair
                     AB 215 (Beall) - As Amended:  April 25, 2011
           
          SUBJECT  :  Emergency services: Emergency Medical Air 
          Transportation Act.

           SUMMARY  :  Requires each county to submit a report regarding the 
          Emergency Medical Air Transportation Act (EMATA), as specified, 
          to the Department of Health Care Services (DHCS) and to the 
          relevant policy and fiscal committees of the Legislature, no 
          later than March 1st of each year.  Specifically,  this bill  :  

          1)Requires each county to submit a report regarding to DHCS:

          2)Requires the report to include:
             a)   The total number of penalty assessments imposed pursuant 
               to the EMATA;
             b)   The total amount of funds collected from the $4 penalty 
               assessment; and,
             c)   The total amount deposited by the county in the EMATA 
               Fund, including the total amount withheld by the county for 
               administrative expenses.

           EXISTING LAW  :

          1)Establishes Medi-Cal, administered by DHCS, to provide 
            comprehensive health care services and long-term care to 
            pregnant women, children, and people who are aged, blind, and 
            disabled.

          2)Establishes the EMATA requiring a $4 fee to be assessed on 
            every vehicle code violation to be collected by each county 
            and transferred to DHCS for deposit in the EMATA Fund to be 
            used in the Medi-Cal Program to obtain federal funds and to 
            fund supplemental payments for emergency medical air 
            transportation services.

          3)Establishes a State Penalty Assessment of $10 for every $10 on 
            every fine, penalty, or forfeiture.  Of the funds collected, 
            70% goes to the state and 30% remains with the county.  The 
            state portion is distributed among the Fish and Game 
            Preservation Fund, the Restitution Fund, the Peace Officers 
            Training Fund, the Driver Training Penalty Assessment Fund, 
            the Corrections Training Fund, the Local Public Prosecutors 






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            and Public Defenders Fund, the Victim-Witness Assistance Fund, 
            and the Traumatic Brain Injury Fund.  

          4)Establishes a County Penalty Assessment of $7 for every $10 on 
            every fine, penalty, or forfeiture imposed and collected.  The 
            proceeds are distributed to funds established by the county 
            board of supervisors, including: a Courthouse Construction 
            Fund, Criminal Justice Facilities Construction Fund, Automated 
            Fingerprint Identification Fund, Maddy Emergency Medical 
            Services (EMS) Fund, and, DNA Fund. 

          5)Establishes a State Surcharge of 20% on every base fine 
            collected by the court, deposited in the General Fund.

          6)Establishes a State Court Facilities Construction Penalty 
            Assessment of up to $5 for every $10 or fraction thereof, upon 
            every fine, penalty or forfeiture collected by the courts for 
            criminal offenses.
          7)Establishes a Court Security Fee of $40 on every conviction 
            for a criminal offense for court security.

          8)Establishes a levy of a $4 penalty assessment on every $10 in 
            fines and forfeitures resulting from criminal and traffic 
            offenses for state and local governments for DNA databank 
            implementation purposes.

          9)Establishes an additional $35 Conviction Assessment for the 
            existing State Court Facilities Construction Fund on every 
            criminal infraction, including traffic offenses.

          10)Establishes an additional EMS Penalty Assessment of $2 for 
            every $10 on every fine, penalty, forfeiture, or criminal 
            offense and all offenses dealing with the Vehicle Code except 
            parking offenses for local Maddy EMS Funds. 

           FISCAL EFFECT :   This bill has not been analyzed by a fiscal 
          committee.

           COMMENTS  :   

           1)PURPOSE OF THIS BILL  .  According to the author, this bill is 
            necessary to enable DHCS to estimate and project revenues to 
            the EMATA Fund.  The author states that although        AB 
            2173 (Beall), Chapter 547, Statutes of 2010, established the 
            protocol for the administration of the Fund, it does not 
            require sufficient data reporting to enable DHCS to estimate 
            and project revenues to the Fund. 






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          The author reports that currently, DHCS does not have enough 
            traffic data to estimate and forecast the revenue anticipated 
            from this program.  The author argues that at the present time 
            stakeholders are struggling to provide DHCS with the data 
            required to estimate revenue using quantifiable and verifiable 
            data reports.  However, the author continues, unless a 
            sufficient data source is provided to project revenue, air 
            ambulance providers could be required to wait 18-24 months for 
            their first payment under this program.  The author concludes 
            that the data provided in this bill would give DHCS better 
            data to estimate revenues and create a payment methodology 
            system.  The author also states that while this data source 
            may be determined adequate to address the short-term issue, 
            long-term budgeting will be required.  According to the 
            author, this bill will assist with understanding the dynamics 
            of the revenue stream, number of violations charged versus 
            number of violations paid for example, will ease future 
            budgeting issues and help with estimations.

           2)BACKGROUND  .  AB 2173 was enacted to provide a mechanism for 
            supplemental payments for air ambulance providers who serve 
            Medi-Cal patients.  The revenue generated by imposing a flat 
            $4 fee on each motor vehicle violation is to be matched with 
            federal funds through the Medi-Cal Program.  Medi-Cal pays air 
            ambulance services far below the cost of providing emergency 
            air transportation at approximately 40% of the average 
            Medicare rate.  Unlike hospitals, federal law does not permit 
            a provider fee to be assessed.  In addition air ambulance 
            providers must provide emergency services but are not covered 
            by other supplemental emergency payment funds that are 
            collected from fines and penalties.  They also do not receive 
            any type of disproportionate share provider supplemental 
            payments.

          Air ambulance services provide emergency transportation for the 
            most critical patients from automobile scenes directly to 
            trauma centers.  Emergency helicopters also transport patients 
            from rural areas or acute care hospitals to tertiary care 
            hospitals such as trauma centers, heart/stroke centers, burn 
            units, and children's specialty hospitals.  They are also used 
            for disaster response.  Air ambulance services providers are a 
            mix of public and private entities.  For instance, the City of 
            Los Angeles provides its own services, whereas the California 
            Shock Trauma Air Rescue is a not-for profit community based 
            provider that provides services throughout Central and 
            Northern California.  The services are not self-dispatched, 






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            but are called for by on scene first responders, a hospital 
            physician, or other emergency medical services agency.  As 
            with other emergency responders, no one is denied service, 
            regardless of ability to pay.

           3)PREVIOUS LEGISLATION  .

             a)   AB 2173 established the EMATA requiring a $4 fee to be 
               assessed on every vehicle code violation to be collected by 
               the county and transferred to DHCS for deposit in the EMATA 
               Fund to be used in the Medi-Cal Program to obtain federal 
               funds and to fund supplemental payments for emergency 
               medical air transportation services.

             b)   SB 13 X4, (Ducheny), Chapter 22, Statutes of 2009, 
               increases the fee used to fund court security from $20 to 
               $30.

             c)   AB 1153 (Torrico) of 2009, would have established a $3 
               penalty assessment on all Vehicle Code violations (except 
               parking offenses) to provide a funding source to augment 
               Medi-Cal reimbursement for air ambulance services.  AB 1153 
               died in the Assembly Appropriations Committee.

             d)   AB 1407 (Perata), Chapter 311, Statutes of 2008, allows 
               the issuance of up to $5 billion in lease-revenue bonds to 
               finance the construction of critical needs courthouse 
               construction projects, and supports the debt service for 
               the bonds by raising specified criminal and civil fees and 
               fines.

             e)   SB 1236 (Padilla), Chapter 60, Statutes of 2008, 
               extended the sunset on SB 1773 until January 1, 2014.

             f)   SB 1773 (Alarcon), Chapter 841, Statutes of 2006, 
               authorized counties, until January 1, 2009, to elect to 
               levy an additional $2 for every $10 in base fines for 
               purposes of supporting EMS, and required the additional 
               assessment  to be deposited in the local Maddy EMS Funds, 
               with 15% to be directed to pediatric trauma services

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Association of Air Medical Services (sponsor)







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           Opposition 

           None on file

           Analysis Prepared by  :    Marjorie Swartz / HEALTH / (916) 
          319-2097