SR-100-002 (20)
F:\HSD\SHARE\ADMINISTRATION\Staff Reports\Staff Report (SB 108).doc
Council Meeting of January 27, 2004 Santa Monica, CA
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Approval of City Council Support of State Senate Bill 108 (Romero)
creating the Alcohol Related Emergency Services Reimbursement Act.
Introduction
This report transmits a request by City staff to support “Five for Life“ (SB 108) legislation
creating the Alcohol Related Emergency Services Reimbursement Act.
Background
On January 30, 2003 SB 108 (Romero) was introduced to the California State
Legislature. SB 108 would enact the Alcohol-Related Emergency Services
Reimbursement Act, which would earmark revenue generated from the proposed $0.05
per drink fee on alcohol wholesalers located within the state to reimburse emergency
medical services providers and trauma centers statewide for alcohol-related emergency
services.
Discussion
According to a report released by the California Medical Association, hospital losses
due to alcohol-related emergency visits in California during FY 2000-01 reached $390
million, an increase from $325 million in 1999-00, and $317 million in 1998-99.
Additionally in 2000-01, losses to physicians for alcohol-related emergency visits were
estimated at $151 million for a total of $541 million in hospital and physician losses, a
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24% increase from the year before. The National Transportation Institute determined
that for every alcohol beverage sold in California, $0.90 is spent on health care and
related costs caused by alcohol-related injuries.
In 2002, Santa Monica Fire Department paramedics responded to 963 alcohol-related
calls. Each call received the assistance of two paramedics and in some cases required
additional personnel with the response of an engine company.
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Each alcohol related call took a paramedic company out of service for, on
average, one hour at a cost of $235 per hour for a total cost of $226,305 in 2002.
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Of the 963 alcohol-related responses, 250 patients required follow-up treatment
at local hospitals at a cost of $644 per transport by American Medical Response
(AMR) for a total cost of $161,000.
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Santa Monica UCLA Hospital treated 482 alcohol related patients, at an
estimated revenue loss of $161,107 due to non-payment by approximately 92%
of their patients.
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Saint John’s Health Center estimated a revenue loss of $80,845 due to non-
payment by 92% of the 241 alcohol related patients treated.
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The total cost to the Santa Monica Fire Department, AMR and local hospitals for
the treatment and transport of alcohol-related patients was $629,257 in 2002.
There is an expected $20 billion plus state budget deficit and an expected $750 million
county health care system budget deficit by the year 2005. The City of Santa Monica
faces several more years of constrained spending. SB 108 would mitigate, in part, the
monetary burdens faced by California’s public health care and emergency response
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systems. The fee proposed in SB 108 would likely be passed on to the consumer. This
bill provides that the fees collected be used to support an Alcohol-Related Emergency
Services Reimbursement Fund (Fund) which would be allocated to the following:
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Local emergency service providers (i.e. emergency rooms, trauma centers and
first response teams, including paramedics and firefighters) for reimbursement of
expenses incurred in providing services for alcohol-related emergencies,
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Board of Equalization to cover costs associated with collecting the proposed fee,
and
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State Department of Health Services (DHS) to cover costs associated with
administering the Fund.
This bill would also require that two years after implementation, the Department of
Health Services (DHS), in consultation with the Board and governmental entities with
information about the status of the alcohol industry, would evaluate the economic
impact of this bill on the alcohol industry and submit the findings in a report to the
Legislature upon its completion.
Opponents of the measure argue that over the last fifteen years, fewer drivers end up in
the emergency rooms and trauma care centers due to alcohol-related emergencies, that
traffic injuries are down over 50% since 1990 and California’s rate of drunk driving
deaths has dropped 70% since 1982. It is further argued that the alcohol fee-financed
program will prove administratively burdensome and could take years of litigation to
resolve. Hospitals and trauma centers would be required to do routine blood alcohol
tests and this procedure would add additional costs to the system.
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Supporters of the SB 108 include the California College of Emergency Physicians,
California Medical Association, California State Firefighters’ Association, Inc.,
Association for Los Angeles Deputy Sheriffs, Inc., the Cities of El Monte, Huntington
Park, La Puente and the Los Angeles County Board of Supervisors. Opponents include
Agricultural Council of California, Anheuser-Busch Companies, Inc., Coors Brewing
Company, Miller Brewing Company, California Alliance for Consumer Protection,
California Beer & Beverage Distributors, California Restaurant Association and Distilled
Spirits Council of the United States.
Budget/Financial Impact
It is estimated that passage of SB 108 would generate approximately $700 million per
year in additional revenue to be used by the State in assisting public health care and
emergency response systems. Revenue estimates at the local level are unknown at this
time.
Recommendation
Staff recommends that the City Council support SB 108 and authorize staff to take
appropriate action to communicate the support to the Senate and Governor.
Prepared By: Barbara Stinchfield, Director
Julie Rusk, Human Services Manager
Tracy Scruggs, Human Services Supervisor
Setareh Yavari, Human Services Analyst
Community and Cultural Services Department
Jim Hone, Fire Chief - SMFD
Bruce Davis, SMFD Paramedic Coordinator
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