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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2854 Received in Senate (RDS)]

  1st Session
                                H. R. 2854

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                July 28 (legislative day, July 21), 2003

                                Received

_______________________________________________________________________

                                 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).

            Passed the House of Representatives July 25, 2003.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.

                            By Dan Strodel,

                                                Assistant to the Clerk.
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