To provide temporary State fiscal relief.

1. Rewrites section 371

   Replaces

   In S. 1054 · Placed on Calendar Senate

   Struck: SEC. 371. TEMPORARY STATE FISCAL RELIEF FUND.

   Struck: (a) Authority To Make Payments To States.--

   Struck: (1) In general.--Not later than 45 days after the date of enactment of this Act, the Secretary of the Treasury (in this section referred to as the "Secretary") shall establish a program under which the Secretary shall make a payment to each State in which the chief executive officer of the State, or the chief executive officer's designee, in consultation and coordination with other State and local officials, notifies the Secretary not later than 6 months after the date of enactment of this Act that the State intends to use the payment in accordance with this section.

   Struck: (2) Requirement.--In making payments to States under this section, the Secretary shall ensure that not more than 50 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) is paid to States in fiscal year 2003.

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   Struck: (b) Use of Payment.--

   Struck: (1) In general.--Subject to paragraph (2), a State shall use the funds provided under a payment made under this section to carry out 1 or more of the following activities:

   Struck: (A) Improving education or job training.

   Struck: (B) Improving health care services.

   Struck: (C) Improving transportation or other infrastructure.

   Struck: (D) Improving law enforcement or public safety.

   Struck: (E) Maintaining essential government services.

   Struck: (2) Limitation.--A State may only use funds provided under a payment made under this section for types of expenditures permitted under the most recently approved budget for the State.

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

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

   Struck: (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)).

   Struck: (d) Amount of Payment.--

   Struck: (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).

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

   Struck: (A) in the case of any of the several States or the District of Columbia, one-half 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

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

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

   Struck: (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

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

   Struck: (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--

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

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

   Struck: (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--

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

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

   Inserted: SEC. 371. GENERAL REVENUE SHARING WITH STATES AND THEIR LOCAL GOVERNMENTS.

   ([struck: e][inserted: a]) Appropriation.--There is authorized to be appropriated and is appropriated [struck: for making payments under ][inserted: to carry out ]this section[struck: ,] $20,000,000,000 for fiscal year 2003.[struck: Amounts appropriated under this subsection shall remain available for expenditure through December 31, 2004.]

   Struck: (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:

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

   Struck: "(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.

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

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   Struck: "(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.".

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

   Inserted: (b) Allotments.--From the amount appropriated under subsection (a) for fiscal year 2003, the Secretary of the Treasury shall, as soon as practicable after the date of the enactment of this Act, allot to each of the States as follows, except that no State shall receive less than \1/2\ of 1 percent of such amount:

   Inserted: (1) State level.--$16,000,000,000 shall be allotted among such States on the basis of the relative population of each such State, as determined by the Secretary on the basis of the most recent satisfactory data.

   Inserted: (2) Local government level.--$4,000,000,000 shall be allotted among such States as determined under paragraph (1) for distribution to the various units of general local government within such States on the basis of the relative population of each such unit within each such State, as determined by the Secretary on the basis of the most recent satisfactory data.

   Inserted: (c) Definitions.--For purposes of this section--

   Inserted: (1) State.--The term "State" means any of the several States, the District of Columbia, and the Commonwealth of Puerto Rico.

   Inserted: (2) Unit of general local government.--

   Inserted: (A) In general.--The term "unit of general local government" means--

   Inserted: (i) a county, parish, township, city, or political subdivision of a county, parish, township, or city, that is a unit of general local government as determined by the Secretary of Commerce for general statistical purposes; and

   Inserted: (ii) the District of Columbia, the Commonwealth of Puerto Rico, and the recognized governing body of an Indian tribe or Alaskan native village that carries out substantial governmental duties and powers.

   Inserted: (B) Treatment of subsumed areas.--For purposes of determining a unit of general local government under this section, the rules under section 6720(c) of title 31, United States Code, shall apply.

   Inserted: SEC. 371A. TEMPORARY STATE FMAP RELIEF.

   Inserted: (a) Permitting Maintenance of Fiscal Year 2002 FMAP for Last 2 Calendar Quarters of Fiscal Year 2003.--Notwithstanding any other provision of law, but subject to subsection (e), if the FMAP determined without regard to this subsection for a State for fiscal year 2003 is less than the FMAP as so determined for fiscal year 2002, the FMAP for the State for fiscal year 2002 shall be substituted for the State's FMAP for the third and fourth calendar quarters of fiscal year 2003, before the application of this section.

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   Inserted: (b) Permitting Maintenance of Fiscal Year 2003 FMAP for Each Calendar Quarter of Fiscal Year 2004.--Notwithstanding any other provision of law, but subject to subsection (e), if the FMAP determined without regard to this subsection for a State for fiscal year 2004 is less than the FMAP as so determined for fiscal year 2003, the FMAP for the State for fiscal year 2003 shall be substituted for the State's FMAP for each calendar quarter of fiscal year 2004, before the application of this section.

   Inserted: (c) General 4.95 Percentage Points Increase for Last 2 Calendar Quarters of Fiscal Year 2003 and Each Calendar Quarter of Fiscal Year 2004.--Notwithstanding any other provision of law, but subject to subsections (e) and (f), for each State for the third and fourth calendar quarters of fiscal year 2003 and each calendar quarter of fiscal year 2004, the FMAP (taking into account the application of subsections (a) and (b)) shall be increased by 4.95 percentage points.

   Inserted: (d) Increase in Cap on Medicaid Payments To Territories.--Notwithstanding any other provision of law, but subject to subsection (f), with respect to the third and fourth calendar quarters of fiscal year 2003 and each calendar quarter of fiscal year 2004, the amounts otherwise determined for Puerto Rico, the Virgin Islands, Guam, the Northern Mariana Islands, and American Samoa under subsections (f) and (g) of section 1108 of the Social Security Act (42 U.S.C. 1308) shall each be increased by an amount equal to 9.90 percent of such amounts.

   Inserted: (e) Scope of Application.--The increases in the FMAP for a State under this section shall apply only for purposes of title XIX of the Social Security Act and shall not apply with respect to--

   Inserted: (1) disproportionate share hospital payments described in section 1923 of such Act (42 U.S.C. 1396r-4);

   Inserted: (2) payments under title IV or XXI of such Act (42 U.S.C. 601 et seq. and 1397aa et seq.); or

   Inserted: (3) the percentage described in the third sentence of section 1905(b) of the Social Security Act (42 U.S.C. 1396d(b)) (relating to amounts expended as medical assistance for services received through an Indian Health Service facility whether operated by the Indian Health Service or by an Indian tribe or tribal organization (as defined in section 4 of the Indian Health Care Improvement Act)).

   Inserted: (f) State Eligibility.--

   Inserted: (1) In general.--Subject to paragraph (2), a State is eligible for an increase in its FMAP under subsection (c) or an increase in a cap amount under subsection (d) only if the eligibility under its State plan under title XIX of the Social Security Act (including any waiver under such title or under section 1115 of such Act (42 U.S.C. 1315)) is no more restrictive than the eligibility under such plan (or waiver) as in effect on July 1, 2003.

   Inserted: (2) State reinstatement of eligibility permitted.--A State that has restricted eligibility under its State plan under title XIX of the Social Security Act (including any waiver under such title or under section 1115 of such Act (42 U.S.C. 1315)) after July 1, 2003, but prior to the date of enactment of this Act is eligible for an increase in its FMAP under subsection (c) or an increase in a cap amount under subsection (d) in the first calendar quarter (and any subsequent calendar quarters) in which the State has reinstated eligibility that is no more restrictive than the eligibility under such plan (or waiver) as in effect on July 1, 2003.

   Inserted: (3) Rule of construction.--Nothing in paragraph (1) or (2) shall be construed as affecting a State's flexibility with respect to benefits offered under the State medicaid program under title XIX of the Social Security Act (42 U.S.C. 1396 et seq.) (including any waiver under such title or under section 1115 of such Act (42 U.S.C. 1315)).

   Inserted: (g) Definitions.--In this section:

   Inserted: (1) FMAP.--The term "FMAP" means the Federal medical assistance percentage, as defined in section 1905(b) of the Social Security Act (42 U.S.C. 1396d(b)).

   Inserted: (2) State.--The term "State" has the meaning given such term for purposes of title XIX of the Social Security Act (42 U.S.C. 1396 et seq.).

   Inserted: (h) Repeal.--Effective as of October 1, 2004, this section is repealed.

   Inserted: SEC. 371B. ELIMINATION OF 20 PERCENT PARTIAL EXCLUSION OF DIVIDENDS RECEIVED BY INDIVIDUALS.

   Inserted: 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)".

   Original wording

   Strike section 371 and insert the following:

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

As printed