BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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


          Bill No:  SB 149
          Author:   Kehoe (D)
          Amended:  8/18/09
          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

           SENATE FLOOR  :  39-0, 6/1/09
          AYES:  Aanestad, Alquist, Ashburn, Benoit, Calderon,  
            Cedillo, Cogdill, Corbett, Correa, Cox, Denham,  
            DeSaulnier, Ducheny, Dutton, Florez, Hancock, Harman,  
            Hollingsworth, Huff, Kehoe, Leno, Liu, Lowenthal,  
            Maldonado, Negrete McLeod, Oropeza, Padilla, Pavley,  
            Romero, Runner, Simitian, Steinberg, Strickland, Walters,  
            Wiggins, Wolk, Wright, Wyland, Yee
          NO VOTE RECORDED:  Vacancy

           ASSEMBLY FLOOR  :  77-0, 9/1/09 - See last page for vote


           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  
                                                           CONTINUED





                                                                SB 149
                                                                Page  
          2

          excess of the amount required for the payment of this claim  
          shall revert to the General Fund.

           Assembly Amendments  add an appropriation of $159,084 to the  
          Department of Justice to pay the judgment in  McAllister v.  
          California Coastal Commission  , Monterey Superior Court,  
          Case No. M73043.  Any funds appropriated in excess of the  
          amount required for the payment of this claim reverts 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 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 attorney's fees, but after  
          extensive negotiations this figure was reduced to $110,000  
          (plus $464.40 in costs).  

           McAllister v. California Coastal Commission, Monterey  
          Superior Court, Case No. M73043, $159,084 judgment  .  This  
          case challenged the California Coastal Commission's  
          approval of a permit for a single family residence along  
          the coast in Monterey County.  The trial court upheld the  
          Commission's approval.  The court of appeal reversed the  
          approval, however, ruling it did not comply with Monterey  
          County's local coastal program.  The Commission opted not  







                                                                SB 149
                                                                Page  
          3

          to seek review before the California Supreme Court. 

          McAllister sought $769,296.42 in attorney's fees and court  
          costs.  The court awarded McAllister $282,870 in attorney's  
          fees, and $6,480.44 in court costs.  The court apportioned  
          liability for these sums to the Commission and the real  
          party on a 50/50 basis, plus interest. 

           Related legislation  .  AB 93 (De Leon) is the first of two  
          annual judgments and deficiencies bills for 2009 sponsored  
          by the Administration and the Department of Justice, and  
          carried by the Appropriations Committee Chairs. The bill,  
          which passed the Assembly and Senate Appropriations  
          Committee without a dissenting vote, is pending action by  
          the Governor. 

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

          Appropriates $270,268.40 from the General Fund.

           SUPPORT  :   (Verified  9/2/09)

          Department of Justice (source)
          Department of Finance


           ASSEMBLY FLOOR : 
          AYES:  Adams, Ammiano, Anderson, Arambula, Beall, Bill  
            Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,  
            Brownley, Caballero, Carter, Chesbro, Conway, Cook, Coto,  
            Davis, De La Torre, De Leon, DeVore, Duvall, Emmerson,  
            Eng, Evans, Feuer, Fletcher, Fong, Fuentes, Fuller,  
            Furutani, Gaines, Galgiani, Garrick, Gilmore, Hagman,  
            Hall, Harkey, Hayashi, Hernandez, Hill, Huber, Huffman,  
            Jeffries, Jones, Knight, Krekorian, Lieu, Logue, Bonnie  
            Lowenthal, Ma, Mendoza, Miller, Monning, Nava, Nestande,  
            Niello, Nielsen, John A. Perez, V. Manuel Perez,  
            Portantino, Ruskin, Salas, Saldana, Silva, Skinner,  
            Smyth, Solorio, Audra Strickland, Swanson, Torlakson,  
            Torres, Torrico, Tran, Villines, Yamada, Bass
          NO VOTE RECORDED:  Buchanan, Charles Calderon, Vacancy









                                                                SB 149
                                                                Page  
          4

          DLW:mw  9/2/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

                                ****  END  ****