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 (SCHIP).

Summary: Amends title XXI (State Children's Health Insurance Program) (SCHIP) of the Social Security Act (SSA) to revise the special rule for the redistribution and availability of unexpended FY1998 and 1999 SCHIP allotments, including to: (1) extend the availability of FY 1998 and 1999 reallocated funds through FY 2004; and (2) permit 50 percent of the total amount of unexpended FY 2000 and 2001 SCHIP allotments that remain available to a State through the end of FY 2002 and 2003 to remain available for expenditure by the State through the end of FY 2004 and 2005, respectively.

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

    (a) 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''.
    (b) Extension and Revision of Retained and Redistributed Allotments 
for Fiscal Year 2000.--
            (1) Permitting and extending retention of portion of fiscal 
        year 2000 allotment.--Paragraph (2) of such section 2104(g) is 
        amended--
                    (A) in the heading, by striking ``and 1999'' and 
                inserting ``through 2000''; and
                    (B) 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.''.
            (2) Redistributed allotments.--Paragraph (1) of such 
        section 2104(g) is amended--
                    (A) in subparagraph (A), by inserting ``or for 
                fiscal year 2000 by the end of fiscal year 2002,'' 
                after ``fiscal year 2001,'';
                    (B) in subparagraph (A), by striking ``1998 or 
                1999'' and inserting ``1998, 1999, or 2000'';
                    (C) 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).'';
                    (D) in subparagraph (A)(ii), by striking ``or 
                1999'' and inserting ``, 1999, or 2000'';
                    (E) in subparagraph (B), by striking ``with respect 
                to fiscal year 1998 or 1999'';
                    (F) 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
                    (G) 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).''.
            (3) Conforming amendments.--Such section 2104(g) is further 
        amended--
                    (A) in its heading, by striking ``and 1999'' and 
                inserting ``, 1999, and 2000''; and
                    (B) 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.
    (c) Extension and Revision of Retained and Redistributed Allotments 
for Fiscal Year 2001.--
            (1) Permitting and extending retention of portion of fiscal 
        year 2001 allotment.--Paragraph (2) of such section 2104(g), as 
        amended in subsection (b)(1)(B), is further amended--
                    (A) in the heading, by striking ``2000'' and 
                inserting ``2001''; and
                    (B) 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.''.
            (2) Redistributed allotments.--Paragraph (1) of such 
        section 2104(g), as amended in subsection (b)(2), is further 
        amended--
                    (A) in subparagraph (A), by inserting ``or for 
                fiscal year 2001 by the end of fiscal year 2003,'' 
                after ``fiscal year 2002,'';
                    (B) in subparagraph (A), by striking ``1999, or 
                2000'' and inserting ``1999, 2000, or 2001'';
                    (C) 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).'';
                    (D) in subparagraph (A)(ii), by striking ``or 
                2000'' and inserting ``2000, or 2001'';
                    (E) 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
                    (F) 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).''.
            (3) Conforming amendments.--Such section 2104(g) is further 
        amended--
                    (A) in its heading, by striking ``and 2000'' and 
                inserting ``2000, and 2001''; and
                    (B) 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.
    (d) Effective Date.--This section, and the amendments made by this 
section, shall be effective as if this section 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 section as if this section had 
been enacted on September 30, 2002.

            Passed the House of Representatives June 26, 2003.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.