S.Amdt. 600

1. Rewrites section 371

   Replaces

   In S. 1054 · Placed on Calendar Senate

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   SEC. 371. TEMPORARY STATE FISCAL RELIEF FUND.

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

   (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.

   (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 [struck: section 1903][inserted: subsection ]([struck: x][inserted: f])[struck: (3]) [struck: of the Social Security Act) ]is paid to States in fiscal year 2003.

   (b) Use of Payment.--

   (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:

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   (A) Improving education or job training.

   (B) Improving health care services.

   (C) Improving transportation or other infrastructure.

   (D) Improving law enforcement or public safety.

   (E) Maintaining essential government services.

   (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.

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

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

   (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))[inserted: and not use the funds to supplant State funding or revenue that the State otherwise provides to units of general local government].

   (d) Amount of Payment.--

   (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).

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

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

   (B) in the case of the [struck: 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 [struck: section 1903][inserted: subsection ]([struck: x][inserted: f])[struck: (3])[struck: of the Social Security Act)].

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

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

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

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

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

   (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--

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

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

   (e) Appropriation.--There is authorized to be appropriated and is appropriated for making payments under this section, [struck: $20,000,000,000][inserted: $30,000,000,000] for fiscal year 2003. 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: (f) Temporary Increase of Medicaid FMAP.--

   Inserted: (1) Permitting maintenance of fiscal year 2002 fmap for last 2 calendar quarters of fiscal year 2003.--Subject to paragraph (5), 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 subsection.

   Inserted: (2) Permitting maintenance of fiscal year 2003 fmap for first 3 quarters of fiscal year 2004.--Subject to paragraph (5), 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 the first, second, and third calendar quarters of fiscal year 2004, before the application of this subsection.

   Inserted: (3) General 3.73 percentage points increase for last 2 calendar quarters of fiscal year 2003 and first 3 calendar quarters of fiscal year 2004.--Subject to paragraphs (5) and (6), for each State for the third and fourth calendar quarters of fiscal year 2003 and for the first, second, and third calendar quarters of fiscal year 2004, the FMAP (taking into account the application of paragraphs (1) and (2)) shall be increased by 3.73 percentage points.

   Inserted: (4) Increase in cap on medicaid payments to territories.--Subject to paragraph (6), with respect to the third and fourth calendar quarters of fiscal year 2003 and the first, second, and third calendar quarters 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 7.56 percent of such amounts.

   Inserted: (5) Scope of application.--The increases in the FMAP for a State under this subsection shall apply only for purposes of title XIX of the Social Security Act and shall not apply with respect to--

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

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

   Inserted: (6) State eligibility.--

   Inserted: (A) In general.--Subject to subparagraph (B), a State is eligible for an increase in its FMAP under paragraph (3) or an increase in a cap amount under paragraph (4) 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 September 2, 2003.

   Inserted: (B) 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 September 2, 2003, but prior to the date of enactment of this Act is eligible for an increase in its FMAP under paragraph (3) or an increase in a cap amount under paragraph (4) in the first calendar quarter (and 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 September 2, 2003.

   Inserted: (C) Rule of construction.--Nothing in subparagraph (A) or (B) 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)).

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   Inserted: (7) Funding.--Notwithstanding subsection (e), from the amounts appropriated in such section for fiscal year 2003, $15,000,000,000 of such amount is hereby transferred and made available for the purpose of increasing the FMAP for States in accordance with this subsection. Amounts transferred under this paragraph shall remain available for expenditure through September 30, 2004.

   Inserted: (8) Definitions.--In this subsection:

   Inserted: (A) 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: (B) 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: (9) Repeal of fmap increase.--Effective as of October 1, 2004, this subsection is repealed.

   Inserted: (g) Repeal of other provisions.--Effective as of January 1, 2005, subsections (a) through (e) of this section are repealed.

   Inserted: (h) Revision of 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 "2007" and inserting "2010".

   Inserted: (2) Conforming amendments.--Sections 531(a) and 541(a), as amended by section 201 of this Act, are each amended by striking "2007" and inserting "2010".

   Inserted: (3) Application of sunset.--Section 601(a) of this Act shall apply to the amendments made by paragraphs (1) and (2).

   Original wording

   Strike section 371 and insert the following:

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As printed