BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   SB 149|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 651-1520         Fax: (916) |                         |
          |327-4478                          |                         |
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                                 THIRD READING


          Bill No:  SB 149
          Author:   Kehoe (D)
          Amended:  5/28/09
          Vote:     27 - Urgency

           
           SENATE APPROPRIATIONS COMMITTEE  :  12-0, 5/26/09
          AYES:  Kehoe, Cox, Corbett, Denham, DeSaulnier, Hancock,  
            Leno, Oropeza, Runner, Walters, Wolk, Yee
          NO VOTE RECORDED:  Wyland


           SUBJECT  :    Claim against the state

           SOURCE  :     Department of Justice


           DIGEST  :    This bill appropriates $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  .  Any funds appropriated in  
          excess of the amount required for the payment of this claim  
          shall revert to the General Fund.

           ANALYSIS  :    

           Maternal and Child Health Access v. Managed Risk Medical  
          Insurance Board (MRMIB)

           San Francisco Superior Court, Case No. CPF-08-508296
          $110,464.40 stipulated settlement
           
          This case challenged the constitutionality of the Access  
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                                                                SB 149
                                                                Page  
          2

          for Infants and Mothers (AIM) program's six-month  
          durational residency requirement.  Under Section 12698(a)  
          of the Insurance Code, 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 Section 12698(b) of the  
          Insurance Code 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).  

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes    
          Local:  No

          Appropriates $110,464.40 from the General Fund.

           SUPPORT  :   (Verified  5/27/09)

          Department of Justice (source)
          Department of Finance


          DLW:mw  5/27/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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