Reference Title: AHCCCS; tobacco tax; kidney disease

AN ACT
AMENDING SECTION 36-2921, ARIZONA REVISED STATUTES; RELATING TO THE ARIZONA HEALTH CARE COST CONTAINMENT SYSTEM.

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 36-2921, Arizona Revised Statutes, is amended to read:

36-2921 . Tobacco tax allocation

A. Subject to the availability of monies in the medically needy account established pursuant to section 42-1241, subsection C, paragraph 3 the administration shall use the monies in the account in the following order:

1. The administration shall withdraw the amount necessary to pay the state share of costs for providing health care services to any person who is eligible pursuant to section 36-2901, paragraph 4, subdivisions (a), (c) and (h) , and who becomes eligible for A heart, lung, heart-lung, liver or autologous and allogeneic bone marrow transplants TRANSPLANT pursuant to section 36-2907, subsection A, paragraph 11, subdivision (d) as determined by the administrator and to any person who is eligible pursuant to section 36-2901, paragraph 4, subdivision (b) and who become BECOMES eligible for A lung or heart-lung transplants TRANSPLANT pursuant to section 36-2907, subsection A, paragraph 11, subdivision (b), as determined by the administrator.

2. Beginning on August 1, 1995 and on the first day of each month thereafter, the sum of one million two hundred fifty thousand dollars shall be transferred from the medically needy account to the medical services stabilization fund for uses as prescribed in section 36-2922.

3. From and after August 1, 1995 and each year thereafter, the administration shall transfer not more than fifteen million dollars to the department of health services to be allocated as follows if the department awards a contract:

(a) One-third of the total amount transferred, for the mental health grant program established pursuant to section 36-3414.

(b) One-third of the total amount transferred, for primary care services established pursuant to section 36-2907.05.

(c) One-third of the total amount transferred, for grants to the community health centers established pursuant to section 36-2907.06.

4. From and after August 1, 1995, the administration shall transfer up to five hundred thousand dollars annually for fiscal years 1995-1996 and 1996-1997 for pilot programs providing detoxification services in counties having a population of five hundred thousand persons or less according to the most recent United States decennial census.

5. The administration shall transfer up to two hundred fifty thousand dollars annually for fiscal years 1995-1996, 1996-1997 and 1997-1998 for telemedicine pilot programs designed to facilitate the provision of medical services to persons living in medically underserved areas as provided in section 36-2352.

6. The administration shall transfer up to one TWO hundred fifty thousand dollars annually beginning in fiscal year 1996-1997 for contracts by the department of health services with nonprofit organizations that primarily assist in the management of end stage renal disease and related problems. Contracts shall not include payments for transportation of patients for dialysis.

7. Contingent on the existence of a premium sharing demonstration project fund, beginning October 1, 1996 and until September 30, 1999, the administration shall withdraw the sum of twenty million dollars in each of fiscal years 1996-1997, 1997-1998 and 1998-1999 for deposit in the premium sharing demonstration project fund established by section 36-2923 to provide health care services to any person who is eligible for an Arizona health care cost containment system premium sharing demonstration program enacted by the legislature. The Arizona health care cost containment system premium sharing demonstration program enacted by the legislature shall not be an entitlement program.

8. Subject to the availability of monies, the Arizona health care cost containment system administration shall transfer to the department of health services up to five million dollars annually beginning in fiscal year 1996-1997 for providing nonentitlement funding for a basic children's medical services program established by section 36-2907.08. The administration may also withdraw and transfer to the department amounts for program evaluation and for administrative costs as prescribed in section 36-2907.08.

B. The department of health services shall establish an accounting procedure to ensure that all funds transferred pursuant to this section are maintained separately from any other funds.

C. The administration shall annually withdraw monies from the medically needy account in the amount necessary to reimburse the department of health services for administrative costs to implement each program established pursuant to subsection A of this section not to exceed two per cent of the amount transferred for each program.

D. The administration shall annually withdraw monies from the medically needy account in the amount necessary to reimburse the department of health services for the evaluations as prescribed by section 36-2907.07.

E. The administration shall annually report, no later than November 1 of each year, to the joint legislative oversight committee on the tobacco tax and health care fund the annual revenues deposited in the medically needy account and the estimated expenditures needed in the subsequent year to provide funding for services provided in subsection A, paragraph 1 of this section. The administration shall immediately report to the cochairs of the oversight committee if at any time the administration estimates that the amount available in the medically needy account will not be sufficient to fund the maximum allocations established in this section.

APPROVED BY THE GOVERNOR APRIL 25, 1997.

FILED IN THE OFFICE OF THE SECRETARY OF STATE APRIL 28, 1997.