A bill to amend title XXI of the Social Security Act to modify the rules for redistribution and extended availability of fiscal year 2000 and subsequent fiscal year allotments under the State children's health insurance program, and for other purposes.

Summary: Children's Health Improvement and Protection Act of 2002 - Amends title XXI (State Children's Health Insurance) (SCHIP) of the Social Security Act to: (1) revise the rules for redistribution and extended availability of FY 2000 and subsequent fiscal year allotments under SCHIP; (2) direct the Secretary of Health and Human Services to establish a caseload stabilization pool and make an additional redistribution of allotments to stabilize caseloads; and (3) restore SCHIP funding for FY 2003 and 2004.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Children's Health Improvement and 
Protection Act of 2002''.

SEC. 2. CHANGES TO RULES FOR REDISTRIBUTION AND EXTENDED AVAILABILITY 
              OF FISCAL YEAR 2000 AND SUBSEQUENT FISCAL YEAR 
              ALLOTMENTS.

    Section 2104(g) of the Social Security Act (42 U.S.C. 1397dd(g)) is 
amended--
            (1) in the subsection heading--
                    (A) by striking ``and'' after ``1998'' and 
                inserting a comma; and
                    (B) by inserting ``, and 2000 and subsequent fiscal 
                year'' after ``1999'';
            (2) in paragraph (1)--
                    (A) in subparagraph (A)--
                            (i) in the matter preceding clause (i)--
                                    (I) by inserting ``or for fiscal 
                                year 2000 by the end of fiscal year 
                                2002, or allotments for fiscal year 
                                2001 and subsequent fiscal years by the 
                                end of the last fiscal year for which 
                                such allotments are available under 
                                subsection (e), subject to paragraph 
                                (2)(C)'' after ``2001,''; and
                                    (II) by striking ``1998 or 1999'' 
                                and inserting ``1998, 1999, 2000, or 
                                subsequent fiscal year'';
                            (ii) in clause (i)--
                                    (I) in subclause (I), by striking 
                                ``or'' at the end;
                                    (II) in subclause (II), by striking 
                                the period and inserting a semicolon; 
                                and
                                    (III) by adding at the end the 
                                following:
                                    ``(III) the fiscal year 2000 
                                allotment, 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);
                                    ``(IV) the fiscal year 2001 
                                allotment, 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); or
                                    ``(V) the allotment for any 
                                subsequent fiscal year, the amount by 
                                which the State's expenditures under 
                                this title in the period such allotment 
                                is available under subsection (e) 
                                exceeds the State's allotment for that 
                                fiscal year under subsection (b).''; 
                                and
                            (iii) in clause (ii), by striking ``1998 or 
                        1999 allotment'' and inserting ``1998, 1999, 
                        2000, or subsequent fiscal year allotment'';
                    (B) in subparagraph (B)--
                            (i) in the matter preceding clause (i), by 
                        striking ``with respect to fiscal year 1998 or 
                        1999'';
                            (ii) in clause (ii)--
                                    (I) by inserting ``with respect to 
                                fiscal year 1998 or 1999,'' after 
                                ``subsection (e)''; and
                                    (II) by striking ``and'' at the 
                                end;
                            (iii) by redesignating clause (iii) as 
                        clause (iv); and
                            (iv) by inserting after clause (ii), the 
                        following:
                            ``(iii) notwithstanding subsection (e), 
                        with respect to fiscal year 2000 or any 
                        subsequent fiscal year, shall remain available 
                        for expenditure by the State through the end of 
                        the fiscal year in which the State is allotted 
                        a redistribution under this paragraph; and'';
            (3) in paragraph (2)--
                    (A) in the paragraph heading, by striking ``1998 
                and 1999'' and inserting ``1998, 1999, 2000, and 
                subsequent fiscal year'';
                    (B) in subparagraph (A), by adding at the end 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, the amount specified in subparagraph (B) 
                        for fiscal year 2000 for such State shall 
                        remain available for expenditure by the State 
                        through the end of fiscal year 2003.
                            ``(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, the amount specified in subparagraph (B) 
                        for fiscal year 2001 for such State shall 
                        remain available for expenditure by the State 
through the end of 2004.
                            ``(v) Subsequent fiscal year allotments.--
                        Of the amounts allotted to a State pursuant to 
                        this section for any fiscal year after 2001, 
                        that were not expended by the State by the end 
                        of the last fiscal year such amounts are 
                        available under subsection (e), the amount 
                        specified in subparagraph (B) for that fiscal 
                        year for such State shall remain available for 
                        expenditure by the State through the end of the 
                        fiscal year following the last fiscal year such 
                        amounts are available under subsection (e).'';
                    (C) in subparagraph (B), by striking ``The'' and 
                inserting ``Subject to subparagraph (C), the'';
                    (D) by redesignating subparagraph (C) as 
                subparagraph (D); and
                    (E) by inserting after subparagraph (B), the 
                following:
                    ``(C) Floor for fiscal years 2000 and 2001.--For 
                fiscal years 2000 and 2001, if the total amounts that 
                would otherwise be redistributed under paragraph (1) 
                exceed 60 percent of the total amount available for 
                redistribution under subsection (f) for the fiscal 
                year, the amount remaining available for expenditure by 
                the State under subparagraph (A) for such fiscal years 
                shall be--
                            ``(i) the amount equal to--
                                    ``(I) 40 percent of the total 
                                amount available for redistribution 
                                under subsection (f) from the 
                                allotments for the applicable fiscal 
                                year; multiplied by
                                    ``(II) the ratio of the amount of 
                                such State's unexpended allotment for 
                                that fiscal year to the total amount 
                                available for redistribution under 
                                subsection (f) from the allotments for 
                                the fiscal year.''; and
            (4) in paragraph (3), by adding at the end the following: 
        ``For purposes of calculating the amounts described in 
        paragraphs (1) and (2) relating to the allotment for any fiscal 
        year after 1999, the Secretary shall use the amount reported by 
        the States not later than November 30 of the applicable 
        calendar year on HCFA Form 64 or HCFA Form 21, as approved by 
        the Secretary.''.

SEC. 3. ESTABLISHMENT OF CASELOAD STABILIZATION POOL AND ADDITIONAL 
              REDISTRIBUTION OF ALLOTMENTS.

    Section 2104 of the Social Security Act (42 U.S.C. 1397dd) is 
amended by adding at the end the following:
    ``(h) Redistribution of Caseload Stabilization Pool Amounts.--
            ``(1) Additional redistribution to stabilize caseloads.--
                    ``(A) In general.--With respect to fiscal year 2003 
                and any subsequent fiscal year, the Secretary shall 
                redistribute to an eligible State (as defined in 
                subparagraph (B)) the amount available for 
                redistribution to the State (as determined under 
                subparagraph (C)) from the caseload stabilization pool 
                established under paragraph (3).
                    ``(B) Definition of eligible state.--For purposes 
                of subparagraph (A), an eligible State is a State whose 
                total expenditures under this title through the end of 
                the previous fiscal year exceed the total allotments 
                made available to the State under subsection (b) or 
                subsection (c) (not including amounts made available 
                under subsection (f)) through the previous fiscal year.
                    ``(C) Amount of additional redistribution.--For 
                purposes of subparagraph (A), the amount available for 
                redistribution to a State under subparagraph (A) is 
                equal to--
                            ``(i) the ratio of the State's allotment 
                        for the previous fiscal year under subsection 
                        (b) or subsection (c) to the total allotments 
                        made available under such subsections to 
                        eligible States as defined under subparagraph 
                        (A) for the previous fiscal year; multiplied by
                            ``(ii) the total amounts available in the 
                        caseload stabilization pool established under 
                        paragraph (3).
            ``(2) Period of availability.--Amounts redistributed under 
        this subsection shall remain available for expenditure by the 
        State through the end of the fiscal year in which the State 
        receives any such amounts.
            ``(3) Caseload stabilization pool.--For purposes of making 
        a redistribution under paragraph (1), the Secretary shall 
        establish a caseload stabilization pool that includes the 
        following amounts:
                    ``(A) Any amount made available to a State under 
                subsection (g) but not expended within the periods 
                required under subparagraphs (g)(1)(B)(ii), 
                (g)(1)(B)(iii), or (g)(2)(A).
                    ``(B) Any amount made available to a State under 
                this subsection but not expended within the period 
                required under paragraph (2).''.

SEC. 4. RESTORATION OF SCHIP FUNDING FOR FISCAL YEARS 2003 AND 2004.

    (a) In General.--Paragraphs (6) and (7) of section 2104(a) of the 
Social Security Act (42 U.S.C. 1397dd(a)) are amended by striking 
``$3,150,000,000'' each place it appears and inserting 
``$4,275,000,000''.
    (b) Additional Allotment To Territories.--Section 2104(c)(4)(B) of 
the Social Security Act (42 U.S.C. 1397dd(c)(4)(B)) is amended by 
striking ``$25,200,000 for each of fiscal years 2002 through 2004'' and 
inserting ``$25,200,000 for fiscal year 2002, $34,200,000 for each of 
fiscal years 2003 and 2004''.