I 

108TH CONGRESS 

1ST SESSION 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. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 24, 2003

Mr. TAUZIN (for himself, Mr. DINGELL, Mr. BILIRAKIS, and Mr. BROWN of 

Ohio) introduced the following bill; which was referred to the Committee 

on Energy and Commerce 

A BILL

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.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. EXTENSION OF AVAILABILITY OF SCHIP ALLOT4 MENTS FOR FISCAL YEARS 1998 THROUGH 

5 2001. 

6 (a) EXTENDING AVAILABILITY OF SCHIP ALLOT7 MENTS FOR FISCAL YEARS 1998 THROUGH 2001.—
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1 (1) RETAINED AND REDISTRIBUTED ALLOT2 MENTS FOR FISCAL YEARS 1998 AND 1999.—Para3 graphs (2)(A)(i) and (2)(A)(ii) of section 2104(g) of 

4 the Social Security Act (42 U.S.C. 1397dd(g)) are 

5 each amended by striking ‘‘fiscal year 2002’’ and in6 serting ‘‘fiscal year 2004’’. 

7 (2) EXTENSION AND REVISION OF RETAINED

8 AND REDISTRIBUTED ALLOTMENTS FOR FISCAL

9 YEAR 2000.—

10 (A) PERMITTING AND EXTENDING RETEN11 TION OF PORTION OF FISCAL YEAR 2000 ALLOT12 MENT.—Paragraph (2) of such section 2104(g) 

13 is amended—

14 (i) in the heading, by striking ‘‘AND

15 1999’’ and inserting ‘‘THROUGH 2000’’; and 

16 (ii) by adding at the end of subpara17 graph (A) the following: 

18 ‘‘(iii) FISCAL YEAR 2000 ALLOT19 MENT.—Of the amounts allotted to a State 

20 pursuant to this section for fiscal year 

21 2000 that were not expended by the State 

22 by the end of fiscal year 2002, 50 percent 

23 of that amount shall remain available for 

24 expenditure by the State through the end 

25 of fiscal year 2004.’’. 
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1 (B) REDISTRIBUTED ALLOTMENTS.—Para2 graph (1) of such section 2104(g) is amended—

3 (i) in subparagraph (A), by inserting 

4 ‘‘or for fiscal year 2000 by the end of fis5 cal year 2002,’’ after ‘‘fiscal year 2001,’’; 

6 (ii) in subparagraph (A), by striking 

7 ‘‘1998 or 1999’’ and inserting ‘‘1998, 

8 1999, or 2000’’; 

9 (iii) in subparagraph (A)(i)—

10 (I) by striking ‘‘or’’ at the end of 

11 subclause (I), 

12 (II) by striking the period at the 

13 end of subclause (II) and inserting ‘‘; 

14 or’’; and 

15 (III) by adding at the end the 

16 following new subclause: 

17 ‘‘(III) the fiscal year 2000 allot18 ment, the amount specified in sub19 paragraph (C)(i) (less the total of the 

20 amounts under clause (ii) for such fis21 cal year), multiplied by the ratio of 

22 the amount specified in subparagraph 

23 (C)(ii) for the State to the amount 

24 specified in subparagraph (C)(iii).’’; 
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1 (iv) in subparagraph (A)(ii), by strik2 ing ‘‘or 1999’’ and inserting ‘‘, 1999, or 

3 2000’’; 

4 (v) in subparagraph (B), by striking 

5 ‘‘with respect to fiscal year 1998 or 1999’’; 

6 (vi) in subparagraph (B)(ii)—

7 (I) by inserting ‘‘with respect to 

8 fiscal year 1998, 1999, or 2000,’’ 

9 after ‘‘subsection (e),’’; and 

10 (II) by striking ‘‘2002’’ and in11 serting ‘‘2004’’; and 

12 (vii) by adding at the end the fol13 lowing new subparagraph: 

14 ‘‘(C) AMOUNTS USED IN COMPUTING RE15 DISTRIBUTIONS FOR FISCAL YEAR 2000.—For 

16 purposes of subparagraph (A)(i)(III)—

17 ‘‘(i) the amount specified in this 

18 clause is the amount specified in para19 graph (2)(B)(i)(I) for fiscal year 2000, less 

20 the total amount remaining available pur21 suant to paragraph (2)(A)(iii); 

22 ‘‘(ii) the amount specified in this 

23 clause for a State is the amount by which 

24 the State’s expenditures under this title in 

25 fiscal years 2000, 2001, and 2002 exceed 
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1 the State’s allotment for fiscal year 2000 

2 under subsection (b); and 

3 ‘‘(iii) the amount specified in this 

4 clause is the sum, for all States entitled to 

5 a redistribution under subparagraph (A) 

6 from the allotments for fiscal year 2000, of 

7 the amounts specified in clause (ii).’’. 

8 (C) CONFORMING AMENDMENTS.—Such 

9 section 2104(g) is further amended—

10 (i) in its heading, by striking ‘‘AND

11 1999’’ and inserting ‘‘, 1999, AND 2000’’; 

12 and

13 (ii) in paragraph (3)—

14 (I) by striking ‘‘or fiscal year 

15 1999’’ and inserting ‘‘, fiscal year 

16 1999, or fiscal year 2000’’; and 

17 (II) by striking ‘‘or November 

18 30, 2001’’ and inserting ‘‘November 

19 30, 2001, or November 30, 2002’’, re20 spectively. 

21 (3) EXTENSION AND REVISION OF RETAINED

22 AND REDISTRIBUTED ALLOTMENTS FOR FISCAL

23 YEAR 2001.—

24 (A) PERMITTING AND EXTENDING RETEN25 TION OF PORTION OF FISCAL YEAR 2001 ALLOT-
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1 MENT.—Paragraph (2) of such section 2104(g), 

2 as amended in paragraph (2)(A)(ii), is further 

3 amended—

4 (i) in the heading, by striking ‘‘2000’’ 

5 and inserting ‘‘2001’’; and 

6 (ii) by adding at the end of subpara7 graph (A) the following: 

8 ‘‘(iv) FISCAL YEAR 2001 ALLOT9 MENT.—Of the amounts allotted to a State 

10 pursuant to this section for fiscal year 

11 2001 that were not expended by the State 

12 by the end of fiscal year 2003, 50 percent 

13 of that amount shall remain available for 

14 expenditure by the State through the end 

15 of fiscal year 2005.’’. 

16 (B) REDISTRIBUTED ALLOTMENTS.—Para17 graph (1) of such section 2104(g), as amended 

18 in paragraph (2)(B), is further amended—

19 (i) in subparagraph (A), by inserting 

20 ‘‘or for fiscal year 2001 by the end of fis21 cal year 2003,’’ after ‘‘fiscal year 2002,’’; 

22 (ii) in subparagraph (A), by striking 

23 ‘‘1999, or 2000’’ and inserting ‘‘1999, 

24 2000, or 2001’’; 

25 (iii) in subparagraph (A)(i)—
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1 (I) by striking ‘‘or’’ at the end of 

2 subclause (II), 

3 (II) by striking the period at the 

4 end of subclause (III) and inserting ‘‘; 

5 or’’; and 

6 (III) by adding at the end the 

7 following new subclause: 

8 ‘‘(IV) the fiscal year 2001 allot9 ment, the amount specified in sub10 paragraph (D)(i) (less the total of the 

11 amounts under clause (ii) for such fis12 cal year), multiplied by the ratio of 

13 the amount specified in subparagraph 

14 (D)(ii) for the State to the amount 

15 specified in subparagraph (D)(iii).’’; 

16 (iv) in subparagraph (A)(ii), by strik17 ing ‘‘or 2000’’ and inserting ‘‘2000, or 

18 2001’’; 

19 (v) in subparagraph (B)—

20 (I) by striking ‘‘and’’ at the end 

21 of clause (ii); 

22 (II) by redesignating clause (iii) 

23 as clause (iv); and 

24 (III) by inserting after clause (ii) 

25 the following new clause: 
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1 ‘‘(iii) notwithstanding subsection (e), 

2 with respect to fiscal year 2001, shall re3 main available for expenditure by the State 

4 through the end of fiscal year 2005; and’’; 

5 and 

6 (vi) by adding at the end the following 

7 new subparagraph: 

8 ‘‘(D) AMOUNTS USED IN COMPUTING RE9 DISTRIBUTIONS FOR FISCAL YEAR 2001.—For 

10 purposes of subparagraph (A)(i)(IV)—

11 ‘‘(i) the amount specified in this 

12 clause is the amount specified in para13 graph (2)(B)(i)(I) for fiscal year 2001, less 

14 the total amount remaining available pur15 suant to paragraph (2)(A)(iv); 

16 ‘‘(ii) the amount specified in this 

17 clause for a State is the amount by which 

18 the State’s expenditures under this title in 

19 fiscal years 2001, 2002, and 2003 exceed 

20 the State’s allotment for fiscal year 2001 

21 under subsection (b); and 

22 ‘‘(iii) the amount specified in this 

23 clause is the sum, for all States entitled to 

24 a redistribution under subparagraph (A) 
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1 from the allotments for fiscal year 2001, of 

2 the amounts specified in clause (ii).’’. 

3 (C) CONFORMING AMENDMENTS.—Such 

4 section 2104(g) is further amended—

5 (i) in its heading, by striking ‘‘AND

6 2000’’ and inserting ‘‘2000, AND 2001’’; 

7 and 

8 (ii) in paragraph (3)—

9 (I) by striking ‘‘or fiscal year 

10 2000’’ and inserting ‘‘fiscal year 

11 2000, or fiscal year 2001’’; and 

12 (II) by striking ‘‘or November 

13 30, 2002,’’ and inserting ‘‘November 

14 30, 2002, or November 30, 2003,’’, 

15 respectively. 

16 (4) EFFECTIVE DATE.—This subsection, and 

17 the amendments made by this subsection, shall be 

18 effective as if this subsection had been enacted on 

19 September 30, 2002, and amounts under title XXI 

20 of the Social Security Act (42 U.S.C. 1397aa et 

21 seq.) from allotments for fiscal years 1998 through 

22 2000 are available for expenditure on and after Oc23 tober 1, 2002, under the amendments made by this 

24 subsection as if this subsection had been enacted on 

25 September 30, 2002.
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1 (b) AUTHORITY FOR QUALIFYING STATES TO USE

2 PORTION OF SCHIP FUNDS FOR MEDICAID EXPENDI3 TURES.—Section 2105 of the Social Security Act (42 

4 U.S.C. 1397ee) is amended by adding at the end the fol5 lowing: 

6 ‘‘(g) AUTHORITY FOR QUALIFYING STATES TO USE

7 CERTAIN FUNDS FOR MEDICAID EXPENDITURES.—

8 ‘‘(1) STATE OPTION.—

9 ‘‘(A) IN GENERAL.—Notwithstanding any 

10 other provision of law, a qualifying State (as 

11 defined in paragraph (2)) may elect to use not 

12 more than 20 percent of any allotment under 

13 section 2104 for fiscal year 1998, 1999, 2000, 

14 or 2001 (insofar as it is available under sub15 sections (e) and (g) of such section) for pay16 ments under title XIX in accordance with sub17 paragraph (B), instead of for expenditures 

18 under this title. 

19 ‘‘(B) PAYMENTS TO STATES.—

20 ‘‘(i) IN GENERAL.—In the case of a 

21 qualifying State that has elected the option 

22 described in subparagraph (A), subject to 

23 the availability of funds under such sub24 paragraph with respect to the State, the 

25 Secretary shall pay the State an amount 
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1 each quarter equal to the additional 

2 amount that would have been paid to the 

3 State under title XIX with respect to ex4 penditures described in clause (ii) if the 

5 enhanced FMAP (as determined under 

6 subsection (b)) had been substituted for 

7 the Federal medical assistance percentage 

8 (as defined in section 1905(b)). 

9 ‘‘(ii) EXPENDITURES DESCRIBED.—

10 For purposes of this subparagraph, the ex11 penditures described in this clause are ex12 penditures, made after the date of the en13 actment of this subsection and during the 

14 period in which funds are available to the 

15 qualifying State for use under subpara16 graph (A), for medical assistance under 

17 title XIX to individuals who have not at18 tained age 19 and whose family income ex19 ceeds 150 percent of the poverty line. 

20 ‘‘(iii) NO IMPACT ON DETERMINATION

21 OF BUDGET NEUTRALITY FOR WAIVERS.—

22 In the case of a qualifying State that uses 

23 amounts paid under this subsection for ex24 penditures described in clause (ii) that are 

25 incurred under a waiver approved for the 
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1 State, any budget neutrality determina2 tions with respect to such waiver shall be 

3 determined without regard to such 

4 amounts paid. 

5 ‘‘(2) QUALIFYING STATE.—In this subsection, 

6 the term ‘qualifying State’ means a State that, on 

7 and after April 15, 1997, has an income eligibility 

8 standard that is at least 185 percent of the poverty 

9 line with respect to any 1 or more categories of chil10 dren (other than infants) who are eligible for med11 ical assistance under section 1902(a)(10)(A) or, in 

12 the case of a State that has a statewide waiver in 

13 effect under section 1115 with respect to title XIX 

14 that was first implemented on July 1, 1995, has an 

15 income eligibility standard under such waiver for 

16 children that is at least 185 percent of the poverty 

17 line, or, in the case of a State that has a statewide 

18 waiver in effect under section 1115 with respect to 

19 title XIX that was first implemented on January 1, 

20 1994, has an income eligibility standard under such 

21 waiver for children who lack health insurance that is 

22 at least 185 percent of the poverty line. 

23 ‘‘(3) CONSTRUCTION.—Nothing in paragraphs 

24 (1) and (2) shall be construed as modifying the re-
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1 quirements applicable to States implementing State 

2 child health plans under this title.’’. 

3 SEC. 2. TECHNICAL CORRECTION. 

4 (a) TEMPORARY INCREASE OF THE MEDICAID

5 FMAP.—Subparagraphs (A) and (B) of section 401(a)(6) 

6 of the Jobs and Growth Tax Relief Reconciliation Act of 

7 2003 (Public Law 108–027) are amended to read as fol8 lows: 

9 ‘‘(A) IN GENERAL.—Subject to subpara10 graph (B), a State is eligible for an increase in 

11 its FMAP under paragraph (3) or an increase 

12 in a cap amount under paragraph (4) for any 

13 date after September 2, 2003, only if the eligi14 bility under its State plan under title XIX of 

15 the Social Security Act (including any waiver 

16 under such title or under section 1115 of such 

17 Act (42 U.S.C. 1315)) applied as of such date 

18 is no more restrictive than the eligibility under 

19 such plan (or waiver) as in effect on September 

20 2, 2003. 

21 ‘‘(B) STATE REINSTATEMENT OF ELIGI22 BILITY PERMITTED.—A State that has re23 stricted eligibility under its State plan under 

24 title XIX of the Social Security Act (including 

25 any waiver under such title or under section 
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1 1115 of such Act (42 U.S.C. 1315)) for any 

2 date after September 2, 2003, is eligible for an 

3 increase in its FMAP under paragraph (3) or 

4 an increase in a cap amount under paragraph 

5 (4) for subsequent dates in which the State has 

6 reinstated eligibility that is no more restrictive 

7 than the eligibility under such plan (or waiver) 

8 as in effect on September 2, 2003.’’. 

9 (b) RETROACTIVE EFFECTIVE DATE.—The amend10 ment made by subsection (a) shall take effect as if in11 cluded in the enactment of section 401 of the Jobs and 

12 Growth Tax Relief Reconciliation Act of 2003 (Public Law 

13 108–027).

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