California Code, Welfare and Institutions Code - WIC § 16934.2

(a) For the 1989-90 fiscal year, a county shall not have the option to contract with the department for payment for treatment of children required pursuant to Section 16934.  However, a county may elect to limit its liability for payment of that treatment to 15 percent of the amount the county actually received under this chapter for the 1989-90 fiscal year.  Any county which elects to establish a 15 percent reserve shall notify the department within 45 days of the effective date of this section of its intention.  A county electing to limit its liability pursuant to this section shall reserve 15 percent of the amount it received, if the county contracts with the department for administration of its physician services account pursuant to Section 16935.  If the county does not contract with the department to administer its physician services account, the county's liability shall be 15 percent of the total allocation it received under this chapter.  Payment for service provided between July 1, 1989 and June 30, 1990, pursuant to Section 16934 which exceeds the amount reserved shall be the responsibility of the state, provided that the county provides documentation that it established a 15 percent reserve and met its applicable 15 percent obligation for services provided pursuant to Section 16934.  The state shall recoup any funds remaining in the 15 percent reserve which were not expended and shall use the funds to pay for treatment services required under Section 16934 in future years.

(b) For the 1989-90 fiscal year, the department shall establish a separate Rural Health Services Reinsurance Account within the County Health Services Fund.  For purposes of this chapter “reinsurance account” means the account established pursuant to this section.