BILL NUMBER: AB 1763	CHAPTERED  08/02/03

	CHAPTER  161
	FILED WITH SECRETARY OF STATE  AUGUST 2, 2003
	APPROVED BY GOVERNOR  AUGUST 2, 2003
	PASSED THE ASSEMBLY  JULY 29, 2003
	PASSED THE SENATE  JULY 27, 2003
	AMENDED IN SENATE  JUNE 23, 2003

INTRODUCED BY   Committee on Budget (Oropeza (Chair), Bermudez, Chan,
Chu, Diaz, Dutra, Dymally, Goldberg, Hancock, Jackson, Liu,
Montanez, Nakano, Pavley, Reyes, Simitian, and Wolk)

                        MARCH 11, 2003

   An act to add Section 12693.915 to the Insurance Code, relating to
health care, and declaring the urgency thereof, to take effect
immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1763, Committee on Budget.  Healthy Families Program:  rural
demonstration project funding.
   Existing law establishes the Healthy Families Program,
administered by the Managed Risk Medical Insurance Board, to arrange
for the provision of health care services to eligible children
meeting certain household income requirements.  Existing law
authorizes the State Department of Health Services, in conjunction
with the board, the County Medical Services Program board, and the
Rural Health Policy Council, to develop and administer demonstration
projects to fund rural collaborative health care networks to
alleviate unique problems of access to health care in rural areas.
   The Tobacco Tax and Health Protection Act of 1988, as added by
Proposition 99, establishes the Cigarette and Tobacco Products Surtax
Fund and authorizes moneys in the fund to be appropriated for
specified purposes.  The fund consists of 6 separate accounts,
including, among others, the Unallocated Account.  The Tobacco Tax
and Health Protection Act of 1988 may be amended by a vote of 4/5 of
the membership of both houses of the Legislature as long as the
amendment is consistent with the purposes of the act.
   This bill would authorize funding for rural demonstration projects
under the Healthy Families Program to be made available from funds
appropriated from the Unallocated Account in the Cigarette and
Tobacco Products Surtax Fund and from federal funds.  Because the
bill would amend Proposition 99, it would require a 4/5 vote.
   The bill would declare that it is to take effect immediately as an
urgency statute.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 12693.915 is added to the Insurance Code, to
read:
   12693.915.  (a) It is the intent of the Legislature to utilize
fiscal resources in the most prudent and cost-efficient manner and to
maximize the use of federal funds for services when feasible.
Therefore, the Legislature intends to access funds from the
Unallocated Account in the Cigarette and Tobacco Products Surtax Fund
created in Section 30122 of the Revenue and Taxation Code, and as
appropriated in the annual Budget Act, and to use these funds to
obtain a 65-percent federal match through California's allocation
from the State Children's Health Insurance Program (SCHIP).  These
funds will then be used under the state's Healthy Families Program
specifically for the rural demonstration projects established in
Section 12693.91.
   (b) Notwithstanding Section 30122 of the Revenue and Taxation
Code, funding for the rural demonstration projects as provided under
the Health Families Program may be made available from the funds
appropriated from the Unallocated Account in the Cigarette and
Tobacco Products Surtax Fund and from funding received pursuant to
Title XXI of the federal Social Security Act. These funds shall be
used as provided under Section 12693.91.
   (c) Subdivision (b) constitutes an amendment of the Tobacco Tax
and Health Protection Act of 1988, as added by Proposition 99.
  SEC. 2.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order for the provisions of this act to take effect at the
earliest possible time, it is necessary that this act take effect
immediately.