BILL NUMBER: AB 43	AMENDED
	BILL TEXT

	AMENDED IN SENATE   MARCH 22, 2000
	AMENDED IN ASSEMBLY   MAY 28, 1999
	AMENDED IN ASSEMBLY   APRIL 15, 1999

INTRODUCED BY   Assembly Member Villaraigosa  , Cedillo, and
Gallegos 
    (Principal coauthors:  Assembly Members Firebaugh and
Wildman) 

                        DECEMBER 7, 1998

    An act to amend Sections 12693.70, 12693.71, 12693.72,
and 12693.73 of, to add Sections 12693.705 and 12693.745 to, to
repeal and add Section 12693.74 of, the Insurance Code, relating to
health care.   An act to add Section 6380.8 to the
Revenue and Taxation Code, relating to taxation, to take effect
immediately, tax levy. 



	LEGISLATIVE COUNSEL'S DIGEST


   AB 43, as amended, Villaraigosa.   Children:  Healthy
Families Program: eligibility   Sales and use taxes:
exemptions:  gasoline and diesel fuel  . 
   The Sales and Use Tax Law imposes a tax on the gross receipts from
the sale in this state of, or the storage, use, or other consumption
in this state of, tangible personal property.  That law provides
various exemptions from that tax.
   This bill would exempt motor vehicle and diesel fuel from those
taxes imposed at the 5% state rate from June 1, 2000, through
September 30, 2000.
   This bill would provide that the Public Transportation Account of
the State Transportation Fund shall be reimbursed in the annual
budget act from the General Fund for any sales and use tax revenues
lost by it under this act.
   This bill would take effect immediately as a tax levy. 

   Existing law establishes the Healthy Families Program to arrange
for the provision of health, dental, and vision services to eligible
children pursuant to Title XXI of the Social Security Act, the State
Children's Health Insurance Program.  Under existing law, in order to
be eligible, an applicant must be applying on behalf of a child, who
meets certain requirements, including being in a family having a
gross annual household income equal to or less than 200% of the
federal poverty level, and meeting the citizenship and immigration
status requirements established by federal law.  Under existing law
the program is administered by the Managed Risk Medical Insurance
Board.  Under existing law, the level of health benefits for program
subscribers is required to be equivalent to those provided to state
employees through the Public Employee's Retirement System as of
January 1, 1998, except as specified.
   This bill would require eligibility to be determined based on the
minimum requirement and maximum flexibility permitted under Title XIX
and Title XXI of the Social Security Act.
   The bill would require, to the extent consistent with federal law,
that eligibility not be based on family assets and resources, or
hours worked, or failure to apply in person, or lack of
documentation, or date of entry into the United States, or more than
an annual redetermination process.
   The bill would provide that a person who is otherwise eligible for
participation shall not be denied eligibility based on the person's
date of entry into the United States, and a person who is lawfully
present in the United States who is otherwise eligible for
participation shall be eligible for the program.
   Existing law continuously appropriates money from the Healthy
Families Fund for purposes of implementation of the Healthy Families
Program.
   This bill would provide that its provisions shall be inoperative
in any fiscal year in which funds have not been specifically
designated in the Budget Act for that fiscal year for implementation
of this bill.
   The bill would require the department or each county to determine
eligibility under the Healthy Families Program, thus creating a
state-mandated local program.
  The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs so mandated by the state,
reimbursement for those costs shall be made pursuant to the statutory
provisions noted above.  
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:   yes   no  .


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

  
  SECTION 1.  Section 12693.70 of the Insurance Code  
  SECTION 1.  It is the intent of the Legislature in enacting this
act to do both of the following:
   (a) Provide price relief to consumers from the recent substantial
increases in fuel prices.
   (b) Prevent gasoline and diesel refiners, distributors, or
retailers from failing to pass on to end-use consumers, the savings
from the suspension of the sales and use tax on gasoline and diesel
fuels provided by this act.
  SEC. 2.  Section 6380.8 is added to the Revenue and Taxation Code,
to read:
   6380.8.  There are exempted from the taxes imposed by this part at
the 5-percent rate for General Fund purposes, the gross receipts
from the sale in this state of, and the storage, use, or other
consumption in this state of, motor vehicle fuel, as defined by
Section 7304, and diesel fuel, as defined by Section 60022, on and
after June 1, 2000, and to and including September 30, 2000.
  SEC. 3.  The Public Transportation Account of the State
Transportation Fund shall be reimbursed in the annual Budget Act from
the General Fund for any sales and use tax revenues lost by it under
this act.
  SEC. 4.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.
    _____________________________________  All matter omitted in
this version  of the bill appears in the bill as  amended in the
Assembly, May 28, 1999  (JR 11)  ____________________________________