1 MEMORANDUM
DATE: May 15, 2023
TO: Justin Hess, City Manager
FROM: Eric Garcia, Fire Chief
BY: Sana Arakelian, Fire Administrator
SUBJECT: Budget Discussion Paper: Transitioning Emergency Medical Services Membership Program From “Opt-In” to “Opt-Out”
BACKGROUND
At the May 9, 2023 City Council Meeting, Council Member Takahashi requested a discussion paper regarding the feasibility of requiring citywide participation in the Emergency Medical Services Membership Program (Program) with an “opt-out” ability.
DISCUSSION
The Program was created in 1997 to provide Burbank residents financial relief from the increasing cost of emergency medical services (EMS) during a time when 911 prehospital care service delivery was still a relatively new concept. At inception, the Program was projected to become an additional source of revenue to offset the growing cost of EMS , with staff anticipating a 30% household enrollment rate. Currently, of the 43,044 households in Burbank, 4,045 or 9 % are enrolled in the program. The Program is not a major source of revenue, as the revenues received offset the write down cost of dismissing EMS bills for patients that participate in the program.
The Burbank Fire Department (BFD) in collaboration with the City Attorney’s Office (CAO), Finance Department and Willdan Financial Services has evaluated the feasibility of transitioning the existing EMS Membership Program f rom “opt -in” to “opt -out” and determined that it is impermissible under Proposition 218, Proposition 26, and California user fee law. Specifically, for the EMS Membership Program to fall within an exception to Proposition 26’s definition of a tax, residents must “opt-in” or request to be part of the Program. The EMS Membership Program cannot legally run as an “opt-out” program as requested.
FIRE DEPARTMENT
2 FISCAL IMPACT
There is no fiscal impact as an “opt-out” program is not legal under existing California law.
CONCLUSION
Without a formal legal opinion, staff believes that an “opt-out” EMS Membership Program is not permissible under Proposition 218 and 26 as well as California user fee laws.
Staff thinks it is in the City’s best interest to continue to provide public education on the existing EMS Membership Program and will enhance its presence on all social media platforms as well as research additional marketing efforts to solicit broader interest and increase voluntary participation in the Program.