SECTION 1. CONTINUATION OF MEDICAID EMERGENCY PSYCHIATRIC DEMONSTRATION 
              PROJECT.

    (a) Original States.--Paragraph (2) of section 2707(d) of Public 
Law 111-148 (42 U.S.C. 1396a note) is amended to read as follows:
            ``(2) Extension of participation eligibility for originally 
        selected states.--
                    ``(A) In general.--
                            ``(i) State option to resume 
                        participation.--The Secretary shall allow any 
                        State selected as an eligible State to 
                        participate in the demonstration project on or 
                        prior to March 13, 2012, to resume 
                        participation in the demonstration project upon 
                        the request of the State.
                            ``(ii) Timeline for election and 
                        participation.--A State that elects to resume 
                        participation in the demonstration project 
                        under clause (i) shall--
                                    ``(I) make such election before 
                                April 1, 2017; and
                                    ``(II) resume participation not 
                                sooner than July 1, 2018, and not later 
                                than December 31, 2018.''.
    (b) Authority To Substitute a New State for an Originally Selected 
State.--Paragraph (2) of section 2707(d) of Public Law 111-148 (42 
U.S.C. 1396a note), as amended by subsection (a), is amended by adding 
at the end the following new subparagraphs:
                    ``(B) Authority to replace an originally selected 
                state.--
                            ``(i) In general.--If any State that was 
                        selected to participate in the demonstration 
                        project on or prior to March 13, 2012, does not 
                        elect before April 1, 2017, to resume the 
                        State's participation in the demonstration 
                        project, the Secretary may select on a 
                        competitive basis another State to participate 
                        in the project.
                            ``(ii) Timeline for participation by a 
                        replacement state.--A State selected to 
                        participate in the demonstration project under 
                        clause (i) shall begin to participate not 
                        sooner than July 1, 2018, and not later than 
                        December 31, 2018.
                    ``(C) Length of participation for original and 
                replacement states.--A State that elects to resume 
                participation in the demonstration project under 
                subparagraph (A) or is selected to participate under 
                subparagraph (B) shall be permitted to participate in 
                the demonstration project for a period of three 
                consecutive years, and no State may continue to 
                participate in the demonstration project after such 
                period without the approval of Congress in accordance 
                with subsection (f)(4)(C).
                    ``(D) Cap on number of states.--In no event may the 
                number of States authorized to participate in the 
                demonstration project under this paragraph exceed 12 
                States.''.
    (c) Funding.--Subsection (e) of section 2707 of such Act (42 U.S.C. 
1396a note) is amended--
            (1) by amending subparagraph (A) of paragraph (1) to read 
        as follows:
                    ``(A) In general.--Out of any funds in the Treasury 
                not otherwise appropriated, there is appropriated to 
                carry out this section--
                            ``(i) $75,000,000 for fiscal year 2011, to 
                        remain available until expended; and
                            ``(ii) $75,000,000 for fiscal year 2017, to 
                        remain available through March 31, 2022.''; and
            (2) by amending paragraph (2) to read as follows:
            ``(2) Limitation on payments.--In no case may--
                    ``(A) the aggregate amount of payments made by the 
                Secretary to eligible States under this section for the 
                period beginning on July 1, 2018, and ending on 
                December 31, 2021, exceed $75,000,000; or
                    ``(B) payments be provided by the Secretary under 
                this section after March 31, 2022, unless a law 
                described in subsection (f)(4)(C) is in effect.''.
    (d) Permanent and Expansion Evaluation and Recommendation.--
Subsection (f)(4) of section 2707 of such Act (42 U.S.C. 1396a note) is 
amended--
            (1) in subparagraph (A)--
                    (A) by striking ``April 1, 2019'' and inserting 
                ``June 30, 2021''; and
                    (B) by striking ``December 31, 2019'' and inserting 
                ``December 31, 2021'';
            (2) in subparagraph (C), by striking ``December 31, 2019'' 
        each place it appears and inserting ``December 31, 2021''; and
            (3) by adding at the end the following new subparagraph:
                    ``(D) Collection of data from states.--The 
                Secretary shall provide each State participating in the 
                demonstration project with a template of the data 
                needed from the State to conduct the evaluation 
                required under this paragraph and at least 1 fiscal 
                quarter to collect and submit such data.''.
    (e) Conforming Amendments.--
            (1) Authority to conduct project.--Subsection (a) of 
        section 2707 of such Act (42 U.S.C. 1396a note) is amended by 
        inserting ``or (d)(2)(B)'' after ``subsection (c)''.
            (2) Technical correction to stabilization review 
        requirement.--The first sentence of section 2707(b) of such Act 
        (42 U.S.C. 1396a note) is amended to read as follows: ``A State 
        shall specify in its application the mechanism established for 
        ensuring that institutions participating in the demonstration 
        will determine whether or not such individuals have been 
        stabilized (as defined in subsection (h)(5)).''.
            (3) Eligible state definition.--Subsection (c)(1) of 
        section 2707 of such Act (42 U.S.C. 1396a note) is amended by 
        inserting ``and subsection (d)(2)(B)'' after ``paragraph (4)''.
            (4) Length of project.--Subsection (d) of section 2707 of 
        such Act (42 U.S.C. 1396a note) is amended--
                    (A) in paragraph (1), by striking ``paragraphs (2) 
                and (3)'' and inserting ``paragraph (2)''; and
                    (B) by striking paragraphs (3) and (4).
            (5) Funding.--Subsection (e)(4) of section 2707 of such Act 
        (42 U.S.C. 1396a note) is amended--
                    (A) by striking ``an evaluation under subsection 
                (f)(1)'' and inserting ``the evaluations required under 
                subsection (f)''; and
                    (B) by striking ``or (3)''.
    (f) Offset.--From amounts appropriated for the Prevention and 
Public Health Fund for fiscal year 2021 under section 4002(b) of the 
Patient Protection and Affordable Care Act (42 U.S.C. 300u-11(b)), 
$75,000,000 shall be rescinded.
This bill: (1) continues the Medicaid emergency psychiatric demonstration project; (2) authorizes the Centers for Medicare &amp; Medicaid Services to replace with another state, on a competitive basis, any originally selected state that elects not to resume its participation in the project; and (3) modifies other requirements related to the project.
A bill to continue the Medicaid emergency psychiatric demonstration project.