12693.91-12693.915

INSURANCE CODE
SECTION 12693.91-12693.915




12693.91.  (a) The State Department of Health Services, in
conjunction with the Managed Risk Medical Insurance Board, the County
Medical Services Program board, and the Rural Health Policy Council,
may develop and administer up to five demonstration projects in
rural areas that are likely to contain a significant level of
uninsured children, including seasonal and migratory worker
dependents. In addition to any other funds provided pursuant to this
section the grants for demonstration projects may include funds
pursuant to subdivision (d).
   (b) The purpose of the demonstration projects shall be to fund
rural collaborative health care networks to alleviate unique problems
of access to health care in rural areas.
   (c) The State Department of Health Services, in conjunction with
the Managed Risk Medical Insurance Board and Rural Health Policy
Council, shall establish the criteria and standards for eligibility
to be used in requests for proposals or requests for application, the
application review process, determining the maximum amount and
number of grants to be awarded, preference and priority of projects,
and compliance monitoring after receiving comment from the public.
   (d) The grants may include funds for purchasing equipment, making
capital expenditures, and providing infrastructure, including, but
not limited to, salaries and payment of leaseholds. The funds under
this subdivision may only be awarded to qualified eligible health
care entities as determined by the State Department of Health
Services. Title to any equipment or capital improvement purchased or
acquired with grant funds shall vest in the grantee for the public
good and not the state. Capital expenditures shall not include the
acquisition of land. Notwithstanding subdivision (e), this
subdivision shall be implemented only when funds are appropriated in
the annual Budget Act or another statute to fund the cost of
implementing this subdivision.
   (e) This section shall only become operative upon federal approval
of the state plan or subsequent amendments for the program and
approval of federal financial participation.



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.