H.R. 2854

To amend title XXI of the Social Security Act to extend the availability of allotments for fiscal years 1998 through 2001 under the State Children's Health Insurance Program, and for other purposes.

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        [Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2854 Enrolled Bill (ENR)]

H.R.2854

One Hundred Eighth Congress

of the

United States of America

AT THE FIRST SESSION

Begun and held at the City of Washington on Tuesday,
the seventh day of January, two thousand and three

An Act

To amend title XXI of the Social Security Act to extend the availability
of allotments for fiscal years 1998 through 2001 under the State
Children's Health Insurance Program, and for other purposes.

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. EXTENSION OF AVAILABILITY OF SCHIP ALLOTMENTS FOR FISCAL
YEARS 1998 THROUGH 2001.

(a) Extending Availability of SCHIP Allotments for Fiscal Years
1998 Through 2001.--
(1) Retained and redistributed allotments for fiscal years 1998
and 1999.--Paragraphs (2)(A)(i) and (2)(A)(ii) of section 2104(g)
of the Social Security Act (42 U.S.C. 1397dd(g)) are each amended
by striking ``fiscal year 2002'' and inserting ``fiscal year
2004''.
(2) Extension and revision of retained and redistributed
allotments for fiscal year 2000.--
(A) Permitting and extending retention of portion of fiscal
year 2000 allotment.--Paragraph (2) of such section 2104(g) is
amended--
(i) in the heading, by striking ``and 1999'' and
inserting ``through 2000''; and
(ii) by adding at the end of subparagraph (A) the
following:
``(iii) Fiscal year 2000 allotment.--Of the amounts
allotted to a State pursuant to this section for fiscal
year 2000 that were not expended by the State by the end of
fiscal year 2002, 50 percent of that amount shall remain
available for expenditure by the State through the end of
fiscal year 2004.''.
(B) Redistributed allotments.--Paragraph (1) of such
section 2104(g) is amended--
(i) in subparagraph (A), by inserting ``or for fiscal
year 2000 by the end of fiscal year 2002,'' after ``fiscal
year 2001,'';
(ii) in subparagraph (A), by striking ``1998 or 1999''
and inserting ``1998, 1999, or 2000'';
(iii) in subparagraph (A)(i)--

(I) by striking ``or'' at the end of subclause (I),
(II) by striking the period at the end of subclause
(II) and inserting ``; or''; and
(III) by adding at the end the following new
subclause:
``(III) the fiscal year 2000 allotment, the amount
specified in subparagraph (C)(i) (less the total of the
amounts under clause (ii) for such fiscal year),
multiplied by the ratio of the amount specified in
subparagraph (C)(ii) for the State to the amount
specified in subparagraph (C)(iii).'';

(iv) in subparagraph (A)(ii), by striking ``or 1999''
and inserting ``, 1999, or 2000'';
(v) in subparagraph (B), by striking ``with respect to
fiscal year 1998 or 1999'';
(vi) in subparagraph (B)(ii)--

(I) by inserting ``with respect to fiscal year
1998, 1999, or 2000,'' after ``subsection (e),''; and
(II) by striking ``2002'' and inserting ``2004'';
and

(vii) by adding at the end the following new
subparagraph:
``(C) Amounts used in computing redistributions for fiscal
year 2000.--For purposes of subparagraph (A)(i)(III)--
``(i) the amount specified in this clause is the amount
specified in paragraph (2)(B)(i)(I) for fiscal year 2000,
less the total amount remaining available pursuant to
paragraph (2)(A)(iii);
``(ii) the amount specified in this clause for a State
is the amount by which the State's expenditures under this
title in fiscal years 2000, 2001, and 2002 exceed the
State's allotment for fiscal year 2000 under subsection
(b); and
``(iii) the amount specified in this clause is the sum,
for all States entitled to a redistribution under
subparagraph (A) from the allotments for fiscal year 2000,
of the amounts specified in clause (ii).''.
(C) Conforming amendments.--Such section 2104(g) is further
amended--
(i) in its heading, by striking ``and 1999'' and
inserting ``, 1999, and 2000''; and
(ii) in paragraph (3)--

(I) by striking ``or fiscal year 1999'' and
inserting ``, fiscal year 1999, or fiscal year 2000'';
and
(II) by striking ``or November 30, 2001'' and
inserting ``November 30, 2001, or November 30, 2002'',
respectively.

(3) Extension and revision of retained and redistributed
allotments for fiscal year 2001.--
(A) Permitting and extending retention of portion of fiscal
year 2001 allotment.--Paragraph (2) of such section 2104(g), as
amended in paragraph (2)(A)(ii), is further amended--
(i) in the heading, by striking ``2000'' and inserting
``2001''; and
(ii) by adding at the end of subparagraph (A) the
following:
``(iv) Fiscal year 2001 allotment.--Of the amounts
allotted to a State pursuant to this section for fiscal
year 2001 that were not expended by the State by the end of
fiscal year 2003, 50 percent of that amount shall remain
available for expenditure by the State through the end of
fiscal year 2005.''.
(B) Redistributed allotments.--Paragraph (1) of such
section 2104(g), as amended in paragraph (2)(B), is further
amended--
(i) in subparagraph (A), by inserting ``or for fiscal
year 2001 by the end of fiscal year 2003,'' after ``fiscal
year 2002,'';
(ii) in subparagraph (A), by striking ``1999, or 2000''
and inserting ``1999, 2000, or 2001'';
(iii) in subparagraph (A)(i)--

(I) by striking ``or'' at the end of subclause
(II),
(II) by striking the period at the end of subclause
(III) and inserting ``; or''; and
(III) by adding at the end the following new
subclause:
``(IV) the fiscal year 2001 allotment, the amount
specified in subparagraph (D)(i) (less the total of the
amounts under clause (ii) for such fiscal year),
multiplied by the ratio of the amount specified in
subparagraph (D)(ii) for the State to the amount
specified in subparagraph (D)(iii).'';

(iv) in subparagraph (A)(ii), by striking ``or 2000''
and inserting ``2000, or 2001'';
(v) in subparagraph (B)--

(I) by striking ``and'' at the end of clause (ii);
(II) by redesignating clause (iii) as clause (iv);
and
(III) by inserting after clause (ii) the following
new clause:

``(iii) notwithstanding subsection (e), with respect to
fiscal year 2001, shall remain available for expenditure by
the State through the end of fiscal year 2005; and''; and
(vi) by adding at the end the following new
subparagraph:
``(D) Amounts used in computing redistributions for fiscal
year 2001.--For purposes of subparagraph (A)(i)(IV)--
``(i) the amount specified in this clause is the amount
specified in paragraph (2)(B)(i)(I) for fiscal year 2001,
less the total amount remaining available pursuant to
paragraph (2)(A)(iv);
``(ii) the amount specified in this clause for a State
is the amount by which the State's expenditures under this
title in fiscal years 2001, 2002, and 2003 exceed the
State's allotment for fiscal year 2001 under subsection
(b); and
``(iii) the amount specified in this clause is the sum,
for all States entitled to a redistribution under
subparagraph (A) from the allotments for fiscal year 2001,
of the amounts specified in clause (ii).''.
(C) Conforming amendments.--Such section 2104(g) is further
amended--
(i) in its heading, by striking ``and 2000'' and
inserting ``2000, and 2001''; and
(ii) in paragraph (3)--

(I) by striking ``or fiscal year 2000'' and
inserting ``fiscal year 2000, or fiscal year 2001'';
and
(II) by striking ``or November 30, 2002,'' and
inserting ``November 30, 2002, or November 30, 2003,'',
respectively.

(4) Effective date.--This subsection, and the amendments made
by this subsection, shall be effective as if this subsection had
been enacted on September 30, 2002, and amounts under title XXI of
the Social Security Act (42 U.S.C. 1397aa et seq.) from allotments
for fiscal years 1998 through 2000 are available for expenditure on
and after October 1, 2002, under the amendments made by this
subsection as if this subsection had been enacted on September 30,
2002.
(b) Authority for Qualifying States To Use Portion of SCHIP Funds
for Medicaid Expenditures.--Section 2105 of the Social Security Act (42
U.S.C. 1397ee) is amended by adding at the end the following:
``(g) Authority for Qualifying States To Use Certain Funds for
Medicaid Expenditures.--
``(1) State option.--
``(A) In general.--Notwithstanding any other provision of
law, a qualifying State (as defined in paragraph (2)) may elect
to use not more than 20 percent of any allotment under section
2104 for fiscal year 1998, 1999, 2000, or 2001 (insofar as it
is available under subsections (e) and (g) of such section) for
payments under title XIX in accordance with subparagraph (B),
instead of for expenditures under this title.
``(B) Payments to states.--
``(i) In general.--In the case of a qualifying State
that has elected the option described in subparagraph (A),
subject to the availability of funds under such
subparagraph with respect to the State, the Secretary shall
pay the State an amount each quarter equal to the
additional amount that would have been paid to the State
under title XIX with respect to expenditures described in
clause (ii) if the enhanced FMAP (as determined under
subsection (b)) had been substituted for the Federal
medical assistance percentage (as defined in section
1905(b)).
``(ii) Expenditures described.--For purposes of this
subparagraph, the expenditures described in this clause are
expenditures, made after the date of the enactment of this
subsection and during the period in which funds are
available to the qualifying State for use under
subparagraph (A), for medical assistance under title XIX to
individuals who have not attained age 19 and whose family
income exceeds 150 percent of the poverty line.
``(iii) No impact on determination of budget neutrality
for waivers.--In the case of a qualifying State that uses
amounts paid under this subsection for expenditures
described in clause (ii) that are incurred under a waiver
approved for the State, any budget neutrality
determinations with respect to such waiver shall be
determined without regard to such amounts paid.
``(2) Qualifying state.--In this subsection, the term
`qualifying State' means a State that, on and after April 15, 1997,
has an income eligibility standard that is at least 185 percent of
the poverty line with respect to any 1 or more categories of
children (other than infants) who are eligible for medical
assistance under section 1902(a)(10)(A) or, in the case of a State
that has a statewide waiver in effect under section 1115 with
respect to title XIX that was first implemented on July 1, 1995,
has an income eligibility standard under such waiver for children
that is at least 185 percent of the poverty line, or, in the case
of a State that has a statewide waiver in effect under section 1115
with respect to title XIX that was first implemented on January 1,
1994, has an income eligibility standard under such waiver for
children who lack health insurance that is at least 185 percent of
the poverty line.
``(3) Construction.--Nothing in paragraphs (1) and (2) shall be
construed as modifying the requirements applicable to States
implementing State child health plans under this title.''.

SEC. 2. TECHNICAL CORRECTION.

(a) Temporary Increase of the Medicaid FMAP.--Subparagraphs (A) and
(B) of section 401(a)(6) of the Jobs and Growth Tax Relief
Reconciliation Act of 2003 (Public Law 108-27) are amended to read as
follows:
``(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) for any date after
September 2, 2003, 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)) applied as of such date is no more restrictive
than the eligibility under such plan (or waiver) as in effect
on September 2, 2003.
``(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)) for any date after September 2, 2003, is eligible
for an increase in its FMAP under paragraph (3) or an increase
in a cap amount under paragraph (4) for subsequent dates 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.''.
(b) Retroactive Effective Date.--The amendment made by subsection
(a) shall take effect as if included in the enactment of section 401 of
the Jobs and Growth Tax Relief Reconciliation Act of 2003 (Public Law
108-27).

Speaker of the House of Representatives.

Vice President of the United States and
President of the Senate.