This official full text of Proposition 203 can also be found at the Arizona Secretary of State's Web site.

AN ACT AMENDING SECTIONS 5-522 AND 36-274, ARIZONA REVISED STATUTES; RELATING TO STATE LOTTERY FUNDS; AMENDING TITLE 36 CHAPTER 29, ARTICLE 1, ARIZONA REVISED STATUTES, BY CONDITIONALLY ADDING SECTION 36-2901.01; RELATING TO ELIGIBILITY FOR AHCCCS BENEFITS.

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

Section 1. Intent

It is the intent of the people by this Act to provide a secure source of funding for the programs in this initiative that will help ensure the health of the current workers of this state and to ensure the health of the workers of tomorrow. The People specifically intend that the Legislature recognize the People's desire for a long-term financial commitment to these programs and that they maintain these programs in the form that exists on the date that an application for this initiative petition is filed with the Secretary of State.

Sec. 2. Section 5-522, Arizona Revised Statutes, is amended to read:

5-522. Use of monies in state lottery fund

A. The monies in the state lottery fund shall be expended only for the following purposes and in the order provided:

1. For the expenses of the commission incurred in carrying out its powers and duties and in the operation of the lottery.

2. For the repayment to the state general fund of any amount appropriated to the fund.

3. For payment to the commerce and economic development commission fund established by section 41-1505. 10 of not less than thirty-two and one-half percent of the revenues received from the sale of two special lottery games conducted for the benefit of economic development.

4. Except as provided in subsection E of this section, for payment to the local transportation assistance fund established by section 28-2601 of not less than -one and one-half percent of the revenues received from the sale of multistate lottery games, up to a maximum of eighteen million dollars each fiscal year.

A. Of the monies remaining in the state lottery fund after the appropriations authorized in subsection A of this section seventy-five percent up to a maximum of twenty-three million dollars each fiscal year shall be deposited in the local transportation assistance fund established pursuant to section 28-2601 and twenty-five percent up to a maximum of seven million six hundred fifty thousand dollars each fiscal year shall be deposited in the county assistance fund established pursuant to section 41-175. Monies distributed pursuant to this subsection shall be in addition to monies distributed pursuant to subsection A, paragraph 4 of this section.

B. Notwithstanding subsection B of this section, if the state lottery director determines at the beginning of any fiscal year that monies available to cities, towns and counties under this section may not equal thirty million six hundred fifty thousand dollars, then he shall not authorize deposits to the county assistance fund until the deposits to the local transportation assistance fund equal twenty-three million dollars.

C. Of the monies remaining in the state lottery fund each fiscal year after appropriations and deposits authorized in subsections A, B and C of this section, ten million dollars shall be deposited in the Arizona state parks board heritage fund established pursuant to section 41-502 and ten million dollars shall be deposited in the Arizona game and fish commission heritage fund established pursuant to section 17-297.

D. OF THE MONIES REMAINING IN THE STATE LOTTERY FUND EACH FISCAL YEAR AFTER APPROPRIATIONS AND DEPOSITS AUTHORIZED IN SUBSECTIONS A, B, C AND D OF THIS SECTION, AND APPROPRIATIONS AND DEPOSITS TO THE LOCAL TRANSPORTATION ASSISTANCE FUND AUTHORIZED BY THIS SECTION, FIVE MILLION DOLLARS SHALL BE ALLOCATED TO THE DEPARTMENT OF ECONOMIC SECURITY FOR THE HEALTHY FAMILIES PILOT PROGRAM ESTABLISHED BY SECTION 8-701, FOUR MILLION DOLLARS SHALL BE ALLOCATED TO THE ARIZONA BOARD OF REGENTS FOR THE ARIZONA AREA HEALTH EDUCATION SYSTEM ESTABLISHED BY SECTION 15-1643, THREE MILLION DOLLARS SHALL BE ALLOCATED TO THE DEPARTMENT OF HEALTH SERVICES TO FUND THE TEENAGE PREGNANCY PREVENTION PROGRAMS ESTABLISHED IN LAWS 1995, CHAPTER 190, SECTIONS 2 AND 3, TWO MILLION DOLLARS SHALL BE ALLOCATED TO THE DEPARTMENT OF HEALTH SERVICES FOR THE HEALTH START PILOT PROGRAM ESTABLISHED BY SECTION 36-697, TWO MILLION DOLLARS SHALL BE DEPOSITED IN THE DISEASE CONTROL RESEARCH FUND ESTABLISHED BY SECTION 36-274 AND ONE MILLION DOLLARS SHALL BE ALLOCATED TO THE DEPARTMENT OF HEALTH SERVICES FOR THE FEDERAL WOMEN, INFANTS AND CHILDREN FOOD PROGRAM. THE ALLOCATIONS IN THIS SUBSECTION SHALL BE ADJUSTED ANNUALLY ACCORDING TO CHANGES IN THE GDP PRICE DEFLATOR AS DEFINED IN SECTION 41-563 AND THE ALLOCATIONS ARE EXEMPT FROM THE PROVISIONS OF SECTION 35-190 RELATING TO LAPSING OF APPROPRIATIONS. IF THERE ARE NOT SUFFICIENT MONIES AVAILABLE PURSUANT TO THIS SUBSECTION, THE ALLOCATION OF MONIES FOR EACH PROGRAM SHALL BE REDUCED ON A PRO RATA BASIS.

E. F. Notwithstanding subsection A, paragraph 4 of this section, if the state lottery director determine that monies available to the state general fund may not equal forty-five million dollars in a fiscal year, then the director shall not authorize deposits to the local transportation assistance fund pursuant to subsection A, paragraph 4 of this section until the deposits to the state general fund equal forty-five million dollars in a fiscal year.

F. G. All monies remaining in the state lottery fund after the appropriations and deposits authorized in this section shall be deposited in the state general fund.

G. H. Except for monies expended as provided in section 5-504, subsection C and section 41-1505.10, monies expended under subsection A of this section shall be subject to legislative appropriation beginning with the fiscal year which commences July 1,1989.

Sec. 3. Section 36-274, Arizona Revised Statutes, is amended to read:

36-274. Disease control research fund

A. The state treasurer shall maintain a fund known as the disease control research fund to consist of MONIES RECEIVED FROM THE STATE LOTTERY FUND PURSUANT TO SECTION 5-522, SUBSECTION E, monies appropriated by the legislature and any gifts, contributions or other monies received by the commission from any source.

B. The commission may expend monies in the disease control research fund for projects or services pursuant to section 36-273 and for expenses incurred by the commission in carrying out the purposes of this article.

C. Monies in the disease control research fund are exempt from section 35-190 relating to lapsing of appropriations.

Sec. 4. Title 36, chapter 29, article 1, Arizona Revised Statutes, is amended by adding section 36-2901.01, to read:

36-2901.01. Additional definition for eligibility for AHCCCS

A. FOR PURPOSES OF SECTION 36-2901, "ELIGIBLE PERSON" INCLUDES ANY PERSON WHO IS DEFINED AS ELIGIBLE BASED ON AN INCOME LEVEL THAT DOES NOT EXCEED ONE HUNDRED PERCENT OF THE FEDERAL POVERTY LEVEL GUIDELINES AS PUBLISHED ANNUALLY BY THE UNITED STATES DEPARTMENT OF HEALTH AND HUMAN SERVICES AND BASED ON THE RESOURCE LIMITS DEFINED BY THE DIRECTOR OF THE ARIZONA HEALTH CARE COST CONTAINMENT SYSTEM ADMINISTRATION AND ALSO BASED ON OTHER ELIGIBILITY REQUIREMENTS OF FEDERAL LAW OR THE HEALTH CARE FINANCING ADMINISTRATION PURSUANT TO SECTION 1115 OF THE SOCIAL SECURITY ACT.

Sec. 5. Conditional enactment of adoption of the federal poverty level guidelines for AHCCCS eligibility

Section 4 of this act does not become effective unless the Health Care Financing Administration of the United States Department of Health and Human Services grants a waiver for the funding of that program.

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