BILL NUMBER: AB 1707	CHAPTERED  07/18/05

	CHAPTER  57
	FILED WITH SECRETARY OF STATE  JULY 18, 2005
	APPROVED BY GOVERNOR  JULY 18, 2005
	PASSED THE SENATE  JULY 1, 2005
	PASSED THE ASSEMBLY  JUNE 1, 2005
	AMENDED IN ASSEMBLY  MAY 31, 2005
	AMENDED IN ASSEMBLY  APRIL 13, 2005

INTRODUCED BY   Assembly Member Chan

                        FEBRUARY 22, 2005

   An act to amend Section 16531.1 of the Government Code, relating
to Medi-Cal, making an appropriation therefor, and declaring the
urgency thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1707, Chan  Medi-Cal financing.
   Existing law creates the continuously appropriated Medical
Providers Interim Payment Fund, for the purposes of paying Medi-Cal
providers, providers  of drug treatment services for persons infected
with HIV, and providers of services for the developmentally
disabled, for services provided on or after July 1 of the fiscal year
for which a budget has not yet been enacted or there is a deficiency
in the Medi-Cal budget in any fiscal year, and appropriates, for
each fiscal year in which these payments are necessary, up to
$1,000,000,000 from the General Fund, in the form of loans, and
$1,000,000,000 from the Federal Trust Fund to the Medical Providers
Interim Payment Fund.
   This bill would delete the limitation on the application of the
continuously appropriated funds to services provided. By expanding
the scope of the application of the continuously appropriated funds,
this bill would result in an appropriation.
   This bill would declare that it is to take effect immediately as
an urgency statute.
   Appropriation: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 16531.1 of the Government Code is amended to
read:
   16531.1.  (a) Notwithstanding any other provision of law and
without regard to fiscal year, if the annual State Budget is not
enacted by June 30 of any fiscal year preceding the fiscal year to
which the budget would apply or there is a deficiency in the Medi-Cal
budget during any fiscal year, both of the following shall occur:
   (1) The Controller shall annually transfer from the General Fund,
in the form of one or more loans, an amount not to exceed a
cumulative total of one billion dollars ($1,000,000,000) in any
fiscal year, to the Medical Providers Interim Payment Fund, which is
hereby created in the State Treasury. Notwithstanding Section 13340
of the Government Code, the Medical Providers Interim Payment Fund is
hereby continuously appropriated for the purpose of making payments
to Medi-Cal providers, providers of services under Chapter 6
(commencing with Section 120950) of Part 4 of Division 105 of the
Health and Safety Code, and providers of services under Division 4.5
(commencing with Section 4500) of the Welfare and Institutions Code,
on or after July 1 of the fiscal year for which no budget has been
enacted and before September 1 of that year or for the purpose of
making payments to Medi-Cal providers, providers of services under
Chapter 6 (commencing with Section 120950) of Part 4 of Division 105
of the Health and Safety Code, and providers of services under
Division 4.5 (commencing with Section 4500) of the Welfare and
Institutions Code, during the period in which the Medi-Cal program
has a deficiency. Payments shall be made pursuant to this subdivision
if both of the following conditions have been met:
   (A) An invoice has been submitted for the services.
   (B) Payment for the services is due and payable and the State
Department of Health Services determines that payment would be valid.

   (2) For any fiscal year to which this subdivision applies, there
is hereby appropriated the sum of one billion dollars
($1,000,000,000) from the Federal Trust Fund to the Medical Providers
Interim Payment Fund.
   (b) Upon the enactment of the annual Budget Act or a deficiency
bill in any fiscal year to which subdivision (a) applies, the
Controller shall transfer all expenditures and unexpended funds in
the Medical Providers Interim Payment Fund to the appropriate Budget
Act item.
   (c) The amount of any loan made pursuant to subdivision (a) and
for which moneys were expended from the Medical Providers Interim
Payment Fund shall be repaid by debiting the appropriate Budget Act
item in accordance with the procedure prescribed by the Department of
Finance.
  SEC. 2.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   In order to continue to provide critical health care services for
Medi-Cal recipients during the period in which the state enters a new
fiscal year without a budget, it is necessary that this act take
effect immediately.