BILL NUMBER: SB 377	CHAPTERED  09/29/03

	CHAPTER  596
	FILED WITH SECRETARY OF STATE  SEPTEMBER 29, 2003
	APPROVED BY GOVERNOR  SEPTEMBER 28, 2003
	PASSED THE SENATE  SEPTEMBER 11, 2003
	PASSED THE ASSEMBLY  SEPTEMBER 8, 2003
	AMENDED IN ASSEMBLY  SEPTEMBER 4, 2003
	AMENDED IN ASSEMBLY  JUNE 26, 2003
	AMENDED IN ASSEMBLY  JUNE 18, 2003
	AMENDED IN ASSEMBLY  MAY 28, 2003

INTRODUCED BY   Senator Chesbro
   (Coauthor:  Assembly Member Cohn)

                        FEBRUARY 19, 2003

   An act to add Section 124586 to the Health and Safety Code,
relating to health.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 377, Chesbro.  Health services.
   Under existing law, the State Department of Health Services
administers a program for American Indian health services and is
required to use funds appropriated to the department for the purposes
of the program to provide specified assistance to urban and rural
American Indian health programs and to assist these programs in
planning, implementing, and upgrading programs to attain a
comprehensive health services delivery system for American Indians in
urban and rural areas.  Existing law provides for the award of
contracts and grants for purposes of the program.
   This bill would require the department to provide semiannual
prospective payments to a grantee during a 12-month fiscal period, in
accordance with specified criteria, to the extent funds are
available.


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


  SECTION 1.  Section 124586 is added to the Health and Safety Code,
to read:
   124586.  (a) Notwithstanding any other provision of law, the
department shall, to the extent that funds are available, provide to
a grantee under this chapter semiannual prospective payments, as
specified in this section, during a 12-month fiscal year.
   (b) The first semiannual prospective payment, in an amount equal
to not more than 50 percent of the total grant, shall be processed
for payment to the grantee following the enactment of the annual
Budget Act, and upon formal execution of the grant by the state and
shall be contingent upon both of the following:
   (1) A written request for payment from the grantee.
   (2) The grantee's timely and accurate submission, and the
department's approval, of the progress reports required under the
grant, budget expenditure report, and annual reconciliation report,
from the prior year.
   (c) Based upon the grantee's timely and accurate submission of the
progress reports and budget expenditure reports from the grant year,
and satisfactory performance under the grant, the processing of a
second semiannual prospective payment of not more than 40 percent of
the total grant shall be processed by the department for payment to a
grantee no earlier than January 1 during the term of the grant year.
  The processing of the grantee's second semiannual prospective
payment by the department shall be contingent upon both of the
following:
   (1) A written request for payment from the grantee.
   (2) The grantee's timely and accurate submission, and the
department's approval, of progress reports and budget expenditure
reports.
   (d) Any remaining amount, which shall be at least 10 percent of
the total grant award, shall be retained by the department, pending
satisfactory submission by the grantee of all progress reports
required by the grant, budget expenditure reports, and an annual
reconciliation report for the grant year.  Payment of the withheld
amount shall be processed by the department for payment to the
grantee contingent upon both of the following:
   (1) A written request for payment from the grantee.
   (2) The grantee's timely and accurate submission, and the
department's approval, of all progress reports required under the
grant, budget expenditure reports from the grant year, the annual
reconciliation report for the grant year, and satisfactory
performance under the grant.