This measure creates the framework for a single-payer health care system administered by the state, called the California Health Insurance System (CHIS). The concept of a single-payer system is to provide health care benefits to all eligible residents of California through a single source of coverage instead of the many existing sources. If implemented, the CHIS would be funded by premiums levied upon income earners and employers, as well as the transfer of federal, state, and local funds currently used to pay for existing health care benefits to the extent that these resources were made available.