BILL NUMBER: AB 195	CHAPTERED  10/05/07

	CHAPTER  261
	FILED WITH SECRETARY OF STATE  OCTOBER 5, 2007
	APPROVED BY GOVERNOR  OCTOBER 5, 2007
	PASSED THE SENATE  SEPTEMBER 7, 2007
	PASSED THE ASSEMBLY  SEPTEMBER 10, 2007
	AMENDED IN SENATE  SEPTEMBER 7, 2007

INTRODUCED BY   Committee on Budget (Laird (Chair), Arambula, Beall,
Berg, Brownley, Dymally, Feuer, Hayashi, Hernandez, Jones, Mullin,
Ruskin, Swanson, and Wolk)

                        JANUARY 25, 2007

   An act to amend Section 12739 of the Insurance Code, relating to
health care, making an appropriation therefor, and declaring the
urgency thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 195, Committee on Budget. Health care: Expanded Access to
Primary Care Program.
   Existing law establishes the Physician Services Account within the
Cigarette and Tobacco Products Surtax Fund and authorizes the
expenditure of revenue in that account to pay for physician services
provided to patients who cannot afford to pay for those services and
who are without health care coverage from private carriers or from
any program funded by the federal government. Existing law also
establishes the Expanded Access to Primary Care program that requires
the State Department of Health Care Services to select primary care
clinics to reimburse for delivering medical services to persons whose
income level is at or below 200% of the federal poverty level and
for which payment will not be made through private or public
third-party reimbursement. Under existing law, the California Major
Risk Medical Insurance Program provides major risk medical coverage
to persons unable to secure adequate private health coverage, as
specified, and revenue from the Major Risk Medical Insurance Fund is
expended for those purposes. Existing law requires that specified
amounts be deposited into that fund annually, including $11,000,000
from the Physician Services Account.
   This bill would reduce the amount of revenue deposited into the
Major Risk Medical Insurance Fund from the Physician Services Account
to $1,000,000 for the 2007-08 fiscal year. The bill would
appropriate $12,000,000 from the Physician Services Account to the
State Department of Health Care Services for expenditure in the
2007-08 fiscal year for the Expanded Access to Primary Care program.
   The bill would declare that its provisions would take effect
immediately as an urgency statute.
   Appropriation: yes.


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

  SECTION 1.  It is the intent of the Legislature, on a one-time
basis for the 2007-08 fiscal year, to utilize savings of ten million
dollars ($10,000,000) from the Major Risk Medical Insurance Fund,
created pursuant to Section 12739 of the Insurance Code, to offset a
portion of the General Fund expenditures from the 2007-08 fiscal year
to maintain funding levels for the Expanded Access to Primary Care
program established pursuant to Article 2 (commencing with Section
124900) of Chapter 7 of Part 4 of Division 106 of the Health and
Safety Code.
  SEC. 2.  The sum of twelve million dollars ($12,000,000) is hereby
appropriated from the Physician Services Account in the Cigarette and
Tobacco Products Surtax Fund, established pursuant to Section 30122
of the Revenue and Taxation Code, to the State Department of Health
Care Services, for expenditure in the 2007-08 fiscal year for the
Expanded Access to Primary Care program established pursuant to
Article 2 (commencing with Section 124900) of Chapter 7 of Part 4 of
Division 106 of the Health and Safety Code.
  SEC. 3.  Section 12739 of the Insurance Code is amended to read:
   12739.  (a) There is hereby created in the State Treasury a
special fund known as the Major Risk Medical Insurance Fund that is,
notwithstanding Section 13340 of the Government Code, continuously
appropriated to the board for the purposes specified in Sections
10127.15 and 12739.1 and Section 1373.62 of the Health and Safety
Code.
   (b) After June 30, 1991, the following amounts shall be deposited
annually in the Major Risk Medical Insurance Fund:
   (1) Eighteen million dollars ($18,000,000) from the Hospital
Services Account in the Cigarette and Tobacco Products Surtax Fund.
   (2) (A) Eleven million dollars ($11,000,000) from the Physician
Services Account in the Cigarette and Tobacco Products Surtax Fund.
   (B) Notwithstanding subparagraph (A), for the 2007-08 fiscal year
only, the Controller shall reduce the amount deposited into the Major
Risk Medical Insurance Fund from the Physician Services Account in
the Cigarette and Tobacco Products Surtax Fund to one million dollars
($1,000,000).
   (3) One million dollars ($1,000,000) from the Unallocated Account
in the Cigarette and Tobacco Products Surtax Fund.
  SEC. 4.  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 enact statutory changes needed to implement the Budget
Act of 2007, it is necessary that this act take effect immediately.