Deletes everything. Amends the Illinois Public Aid Code. Provides that under the Medicaid program, the Department of Public Aid may offer, to children with developmental disabilities and severely mentally ill or emotionally disturbed children who otherwise would not qualify for Medicaid due to family income, home-based and community-based services instead of institutional placement. Requires the Department of Public Aid, in conjunction with the Department of Human Services and the Division of Specialized Care for Children, University of Illinois-Chicago, to report to the Governor and the General Assembly no later than January 1, 2004 regarding the status of existing services offered under the Medicaid program to disabled children. Effective immediately.