BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           149 (Kehoe)
          
          Hearing Date:  5/26/2009        Amended: As Introduced
                                                      As proposed to be  
          amended by RN 15255
          Consultant:  Bob Franzoia       Policy Vote: None
          _________________________________________________________________ 
          ____
          BILL SUMMARY:  SB 149, an urgency measure, would appropriate  
          $110,464.40 from the General Fund to the Department of Justice  
          to pay a settlement in Maternal and Child Health Access v.  
          Managed Risk Medical Insurance Board (MRMIB).  Any funds  
          appropriated in excess of the amount required for the payment of  
          this claim shall revert to the General Fund.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
           Appropriation          $110                             General
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: Pursuant to the committee's rules, the Suspense  
          File rule does not apply to the provisions of this bill as  
          judgments and settlement are considered valid obligations of the  
          state.  Additionally, judgments and settlements may have time  
          sensitivity.
           
          Maternal and Child Health Access v. MRMIB
          San Francisco Superior Court, Case No. CPF-08-508296
          $110,464.40 stipulated settlement
           
          This case challenged the constitutionality of the Access for  
          Infants and Mothers (AIM) program's six-month durational  
          residency requirement.  Under Insurance Code 12698 (a), access  
          to the AIM program is restricted to pregnant women who have been  
          residents of California for at least six months.  A coalition of  
          civil rights groups sued MRMIB alleging that its implementation  
          of the durational residency requirement violated the United  
          States Constitution, based upon a long line of Supreme Court  
          precedent invalidating similar requirements in the health and  
          welfare context.  Article III, Section 3.5 of the California  










          Constitution required MRMIB to implement the duration residency  
          requirement, and to defend it in litigation.  The court found  
          Insurance Code 12698 (b) unconstitutional, granted an injunction  
          prohibiting its continued enforcement, and awarded the  
          plaintiffs' attorneys fees.  The plaintiffs initially demanded  
          $163,000 in attorneys fees, but after extensive negotiations  
          this figure was reduced to $110,000 (plus $464.40 in costs).