S.Amdt. 553

1. Rewrites section 371(c) through subsection (g)

   Replaces

   Removes section 371(c) through subsection (g).

   Inserted: (c) Certifications.--In order to receive a payment under this section, the State shall provide the Secretary with certifications that--

   Inserted: (1) the State's proposed uses of the funds are consistent with subsection (b); and

   Inserted: (2) the State will allocate 50 percent of the funds directly to units of general local government based on the relative local population proportion for the State (as defined in subsection (d)(5)) and not use the funds to supplant State funding or revenue that the State otherwise provides to units of general local government.

   Inserted: (d) Amount of Payment.--

   Inserted: (1) In general.--The amount of payment made to a State under this section shall be the minimum payment amount described in paragraph (2) plus the relative population proportion amount described in paragraph (3).

   Inserted: (2) Minimum payment amount.--The minimum payment amount described in this paragraph is--

   Inserted: (A) in the case of any of the several States, the District of Columbia, or the Commonwealth of Puerto Rico, one-quarter of 1 percent of the aggregate amount made available for payments under this section (after the application of section 1903(x)(3) of the Social Security Act); and

   Inserted: (B) in the case of the United States Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands, or American Samoa, one-twentieth of 1 percent of such aggregate amount (after the application of section 1903(x)(3) of the Social Security Act).

   Inserted: (3) Relative population proportion amount.--The relative population proportion amount described in this paragraph is the product of--

   Inserted: (A) the aggregate amount made available for payments under this section (after the application of section 1903(x)(3) of the Social Security Act) minus the total of all of the minimum payment amounts determined under paragraph (2); and

   Inserted: (B) the relative State population proportion (as defined in paragraph (4)).

   Inserted: (4) Relative state population proportion defined.--In this section, the term "relative State population proportion" means, with respect to a State, the amount equal to the quotient of--

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   Inserted: (A) the population of the State (as reported in the most recent decennial census); and

   Inserted: (B) the total population of all States (as reported in the most recent decennial census).

   Inserted: (5) Relative local population proportion defined.--In this section, the term "relative local population proportion" means, with respect to a unit of general local government within a State, the amount equal to the quotient of--

   Inserted: (A) the population of such unit of general local government (as reported in the most recent decennial census); and

   Inserted: (B) the total population of the State (as reported in the most recent decennial census).

   Inserted: (e) Appropriation.--There is authorized to be appropriated and is appropriated for making payments under this section, $40,000,000,000 for fiscal year 2003. Amounts appropriated under this subsection shall remain available for expenditure through December 31, 2004.

   Inserted: (f) Increased Payments To States Under the Medicaid Program.--Section 1903 of the Social Security Act (42 U.S.C. 1396b) is amended by adding at the end the following:

   Inserted: "(x) Temporary Increased Payments To States.--

   Inserted: "(1) In general.--From the amounts made available under paragraph (3), the Secretary shall increase payments to States under this section for the third and fourth calendar quarters of fiscal year 2003, each calendar quarter of fiscal year 2004, and the first calendar quarter of fiscal year 2005.

   Inserted: "(2) Method of increase.--The Secretary shall determine the appropriate method for increasing payments to States in accordance with this subsection.

   Inserted: "(3) Funding.--Notwithstanding section 371(e) of the Jobs and Growth Tax Relief Reconciliation Act of 2003, from the amounts appropriated in such section for fiscal year 2003, $499,999 of such amount is hereby transferred and made available for the purpose of increasing payments to States under this section in accordance with this subsection. Amounts transferred under this paragraph shall remain available for expenditure through December 31, 2004.".

   Inserted: (g) Repeal.--Effective as of January 1, 2005, this section and the amendments made by this section are repealed.

   Inserted: (h) Elimination of 20 Percent Partial Exclusion of Dividends Received By Individuals.--

   Inserted: (1) In general.--Section 116(a)(2)(B), as added by section 201 of this Act, is amended by striking "(20 percent in the case of taxable years beginning after 2007)".

   Inserted: (2) Nonapplication.--Subsection (g) of this section shall not apply to the amendment made by paragraph (1).

   Original wording

   Section 371 is amended by striking subsections (c) through (g) and inserting the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed