PROHIBITS STATE FROM TAXING COMMUNITY HOSPITALS TO OBTAIN FEDERAL FUNDS FOR MEDICAL UNLESS CERTAIN REQUIREMENTS ARE MET. INITIATIVE CONSTITUTIONAL AMENDMENT

Prohibits state from imposing tax on community hospitals to obtain federal Medi-Cal funds unless tax proceeds are used to obtain federal matching funds of a specified amount. Requires depositing proceeds into trust fund subject to audit. Requires using proceeds to reimburse state for Medi-Cal collection and administration costs, make payments to hospitals, provide health coverage for low-income children, and increase Medi-Cal reimbursements to hospitals. Prohibits using proceeds to replace specified existing funding. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: This measure could affect the ability of the state to impose and collect revenues related to hospital charges and additional federal reimbursements. This could have a further impact on local government finances, particularly counties. In some situations, this measure could result in greater pressures for additional state spending than would otherwise occur.