CA Health & Safety Code Section 124710

(a)

(1) It is the intent of the Legislature that funds distributed under this section promote stability for participating clinics, as a part of the state’s health care safety net, and at the same time be distributed in a manner that best promotes access to health care to geographically isolated populations.

(2)

The department shall grant funds, for a minimum of three years per grant, retroactive to funds appropriated in the Budget Act of 2002 (Chapter 379 of the Statutes of 2002), to eligible, private, nonprofit, community-based primary care clinics for the purpose of establishing and maintaining rural health services and development projects as specified under this article. The department may continue to pay any grantee whose grant expired on June 30, 2003, until June 30, 2004, as if the grant had been extended, provided that funds are appropriated for this purpose in the Budget Act of 2003 and the grantee agrees in writing to expend the money as if the grant had been extended.

(b)

In order to be eligible to receive funds under this program, a clinic shall, at a minimum, meet all of the following conditions:

(1)

The clinic shall be licensed under paragraph (1) or (2) of subdivision (a) of Section 1204.

(2)

The clinic shall operate in a “rural” Medical Study Service Area, as defined by the Health Manpower Commission.

(3)

The clinic shall operate in a medically underserved area, including a Health Professional Shortage Area, or serve a medically underserved population, as designated by the United States Department of Health and Human Services, or shall be able to demonstrate that at least 50 percent of its patients are persons with incomes at or below 200 percent of the federal poverty level.

(c)

The department shall seek input from stakeholders in designing the methodology for distribution of funds under this section.

(d)

If the funds that are available for purposes of this section for any fiscal year are greater than funds that were available for the prior fiscal year, the department shall establish a base funding level that is applicable to all sites funded in the prior fiscal year. To the extent that funds are available, the base funding level shall not be less than seventy-five thousand dollars ($75,000) for each site. To implement this section, the department shall not be required to reduce funding for clinics that are above the minimum awards.