II 

108TH CONGRESS 

2D SESSION S. 2759

To amend title XXI of the Social Security Act to modify the rules relating 

to the availability and method of redistribution of unexpended SCHIP 

allotments, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 22, 2004

Mr. ROCKEFELLER (for himself, Mr. CHAFEE, Mr. KENNEDY, and Ms. 

SNOWE) introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL

To amend title XXI of the Social Security Act to modify 

the rules relating to the availability and method of redistribution of unexpended SCHIP allotments, 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. SHORT TITLE. 

4 This Act may be cited as the ‘‘Children’s Health Pro5 tection and Improvement Act of 2004’’. 
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1 SEC. 2. CHANGES TO RULES FOR REDISTRIBUTION AND EX2 TENDED AVAILABILITY OF 1998 THROUGH 

3 2004 SCHIP ALLOTMENTS. 

4 Section 2104(g) of the Social Security Act (42 U.S.C. 

5 1397dd(g)), as amended by Public Law 108–74 (117 Stat. 

6 892), is amended—

7 (1) in the subsection heading by striking ‘‘, 

8 1999, 2000, AND 2001’’ and inserting ‘‘THROUGH

9 2004’’; and 

10 (2) in paragraph (1)—

11 (A) in subparagraph (A)—

12 (i) in the matter preceding clause 

13 (i)—

14 (I) by inserting ‘‘or for fiscal 

15 year 2002 by the end of fiscal year 

16 2004, or for fiscal year 2003 by the 

17 end of fiscal year 2005, or for fiscal 

18 year 2004 by the end of fiscal year 

19 2006,’’ after ‘‘fiscal year 2003,’’; and 

20 (II) by striking ‘‘or 2001’’ and 

21 inserting ‘‘2001, 2002, 2003, or 

22 2004’’; 

23 (ii) in clause (i)—

24 (I) in subclause (III), by striking 

25 ‘‘or’’ at the end; 
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1 (II) in subclause (IV), by striking 

2 the period at the end and inserting a 

3 semicolon; and 

4 (III) by adding at the end the 

5 following: 

6 ‘‘(V) the fiscal year 2002 allot7 ment, the amount specified in sub8 paragraph (E)(i) (less the total of the 

9 amounts under clause (ii) for such fis10 cal year), multiplied by the ratio of 

11 the amount specified in subparagraph 

12 (E)(ii) for the State to the amount 

13 specified in subparagraph (E)(iii); 

14 ‘‘(VI) the fiscal year 2003 allot15 ment, the amount specified in sub16 paragraph (F)(i) (less the total of the 

17 amounts under clause (ii) for such fis18 cal year), multiplied by the ratio of 

19 the amount specified in subparagraph 

20 (F)(ii) for the State to the amount 

21 specified in subparagraph (F)(iii); or 

22 ‘‘(VII) the fiscal year 2004 allot23 ment, the amount specified in sub24 paragraph (G)(i) (less the total of the 

25 amounts under clause (ii) for such fis-
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1 cal year), multiplied by the ratio of 

2 the amount specified in subparagraph 

3 (G)(ii) for the State to the amount 

4 specified in subparagraph (G)(iii).’’; 

5 and 

6 (iii) in clause (ii), by striking ‘‘or 

7 2001’’ and inserting ‘‘2001, 2002, 2003, 

8 or 2004’’; 

9 (B) in subparagraph (B)—

10 (i) in clause (ii), by inserting ‘‘but 

11 subject to paragraph (4)’’ after ‘‘sub12 section (e)’’; 

13 (ii) in clause (iii)—

14 (I) by inserting ‘‘but subject to 

15 paragraph (4)’’ after ‘‘subsection (e)’’; 

16 and 

17 (II) by striking ‘‘and’’ at the end; 

18 (iii) by redesignating clause (iv) as 

19 clause (vii); and 

20 (iv) by inserting after clause (iii), the 

21 following: 

22 ‘‘(iv) notwithstanding subsection (e) 

23 but subject to paragraph (4), with respect 

24 to fiscal year 2002, shall remain available
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1 for expenditure by the State through the 

2 end of fiscal year 2006; 

3 ‘‘(v) notwithstanding subsection (e), 

4 with respect to fiscal year 2003, shall re5 main available for expenditure by the State 

6 through the end of fiscal year 2007; and 

7 ‘‘(vi) with respect to fiscal year 2004, 

8 subsection (e) shall apply; and’’; and 

9 (C) by adding at the end the following: 

10 ‘‘(E) AMOUNTS USED IN COMPUTING RE11 DISTRIBUTIONS FOR FISCAL YEAR 2002.—For 

12 purposes of subparagraph (A)(i)(V)—

13 ‘‘(i) the amount specified in this 

14 clause is the amount specified in para15 graph (2)(B)(i)(I) for fiscal year 2002, less 

16 the total amount remaining available pur17 suant to paragraph (2)(A)(v); 

18 ‘‘(ii) the amount specified in this 

19 clause for a State is the amount by which 

20 the State’s expenditures under this title in 

21 fiscal years 2002, 2003, and 2004 exceed 

22 the State’s allotment for fiscal year 2002 

23 under subsection (b); and 

24 ‘‘(iii) the amount specified in this 

25 clause is the sum, for all States entitled to 
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1 a redistribution under subparagraph (A) 

2 from the allotments for fiscal year 2002, of 

3 the amounts specified in clause (ii). 

4 ‘‘(F) AMOUNTS USED IN COMPUTING RE5 DISTRIBUTIONS FOR FISCAL YEAR 2003.—For 

6 purposes of subparagraph (A)(i)(VI)—

7 ‘‘(i) the amount specified in this 

8 clause is the amount specified in para9 graph (2)(B)(i)(I) for fiscal year 2003, less 

10 the total amount remaining available pur11 suant to paragraph (2)(A)(vi); 

12 ‘‘(ii) the amount specified in this 

13 clause for a State is the amount by which 

14 the State’s expenditures under this title in 

15 fiscal years 2003, 2004, and 2005 exceed 

16 the State’s allotment for fiscal year 2003 

17 under subsection (b); and 

18 ‘‘(iii) the amount specified in this 

19 clause is the sum, for all States entitled to 

20 a redistribution under subparagraph (A) 

21 from the allotments for fiscal year 2003, of 

22 the amounts specified in clause (ii). 

23 ‘‘(G) AMOUNTS USED IN COMPUTING RE24 DISTRIBUTIONS FOR FISCAL YEAR 2004.—For 

25 purposes of subparagraph (A)(i)(VII)—
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1 ‘‘(i) the amount specified in this 

2 clause is the amount specified in para3 graph (2)(B)(i)(I) for fiscal year 2004, less 

4 the total amount remaining available pur5 suant to paragraph (2)(A)(vii); 

6 ‘‘(ii) the amount specified in this 

7 clause for a State is the amount by which 

8 the State’s expenditures under this title in 

9 fiscal years 2004, 2005, and 2006 exceed 

10 the State’s allotment for fiscal year 2004 

11 under subsection (b); and 

12 ‘‘(iii) the amount specified in this 

13 clause is the sum, for all States entitled to 

14 a redistribution under subparagraph (A) 

15 from the allotments for fiscal year 2004, of 

16 the amounts specified in clause (ii).’’; 

17 (3) in paragraph (2)—

18 (A) in the paragraph heading by striking 

19 ‘‘2001’’ and inserting ‘‘2004’’; and 

20 (B) in subparagraph (A)—

21 (i) in clause (i), by striking ‘‘Of’’ and 

22 inserting ‘‘Subject to paragraph (4), of’’; 

23 (ii) in clause (ii), by striking ‘‘Of’’ 

24 and inserting ‘‘Subject to paragraph (4), 

25 of’’; 
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1 (iii) in clause (iii), by striking ‘‘Of’’ 

2 and inserting ‘‘Subject to paragraph (4), 

3 of’’; 

4 (iv) in clause (iv), by striking ‘‘Of’’ 

5 and inserting ‘‘Subject to paragraph (4), 

6 of’’; and 

7 (v) by adding at the end the following: 

8 ‘‘(v) FISCAL YEAR 2002 ALLOT9 MENT.—Subject to paragraph (4), of the 

10 amounts allotted to a State pursuant to 

11 this section for fiscal year 2002 that were 

12 not expended by the State by the end of 

13 fiscal year 2004, 50 percent of that 

14 amount shall remain available for expendi15 ture by the State through the end of fiscal 

16 year 2006. 

17 ‘‘(vi) FISCAL YEAR 2003 ALLOT18 MENT.—Of the amounts allotted to a State 

19 pursuant to this section for fiscal year 

20 2001 that were not expended by the State 

21 by the end of fiscal year 2005, 50 percent 

22 of that amount shall remain available for 

23 expenditure by the State through the end 

24 of fiscal year 2007.
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1 ‘‘(vii) FISCAL YEAR 2004 ALLOT2 MENT.—Of the amounts allotted to a State 

3 pursuant to this section for fiscal year 

4 2004 that were not expended by the State 

5 by the end of fiscal year 2006, 50 percent 

6 of that amount shall remain available for 

7 expenditure by the State through the end 

8 of fiscal year 2007.’’; 

9 (4) in paragraph (3)—

10 (A) by striking ‘‘or fiscal year 2001’’ and 

11 inserting ‘‘fiscal year 2001, fiscal year 2002, 

12 fiscal year 2003, or fiscal year 2004,’’; and 

13 (B) by striking ‘‘or November 30, 2003,’’ 

14 and inserting ‘‘November 30, 2003, November 

15 30, 2004, November 30, 2005, or November 30, 

16 2006,’’; and 

17 (5) by adding at the end the following: 

18 ‘‘(4) ADDITIONAL EXTENDED AVAILABILITY OF

19 FISCAL YEARS 1998 THROUGH 2002 ALLOTMENTS.—

20 ‘‘(A) FISCAL YEAR 1998, 1999, AND 2000 AL21 LOTMENTS.—With respect to any amounts al22 lotted to a State pursuant to this section for 

23 fiscal years 1998, 1999, or 2000 that were re24 distributed to a State under paragraph (1), or 

25 whose availability to a State was extended 
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1 through the end of fiscal year 2004 under para2 graph (2), that were not expended by the State 

3 by the end of fiscal year 2004, the following 

4 rules shall apply: 

5 ‘‘(i) 30 percent of such amounts shall 

6 remain available for expenditure by the 

7 State through the end of fiscal year 2007. 

8 ‘‘(ii) The remainder of such amounts 

9 shall be redistributed to States that have 

10 fully expended the amount of their fiscal 

11 year 2002 allotments under this section in 

12 the same ratio as unexpended fiscal year 

13 2002 allotments are redistributed under 

14 paragraph (1)(A)(i)(V) to such States and 

15 the amounts redistributed under this 

16 clause shall remain available for expendi17 ture through the end of fiscal year 2007. 

18 ‘‘(B) FISCAL YEAR 2001 ALLOTMENTS.—

19 With respect to any amounts allotted to a State 

20 pursuant to this section for fiscal year 2001 

21 that were redistributed to a State under para22 graph (1), or whose availability to a State was 

23 extended through the end of fiscal year 2005 

24 under paragraph (2), that were not expended by 
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1 the State by the end of fiscal year 2005, the 

2 following rules shall apply: 

3 ‘‘(i) 30 percent of such amounts shall 

4 remain available for expenditure by the 

5 State through the end of fiscal year 2007. 

6 ‘‘(ii) The remainder of such amounts 

7 shall be redistributed to States that have 

8 fully expended the amount of their fiscal 

9 year 2003 allotments in the same ratio as 

10 unexpended fiscal year 2003 allotments are 

11 redistributed under paragraph 

12 (1)(A)(i)(VI) to such States and the 

13 amounts redistributed under this clause 

14 shall remain available for expenditure 

15 through the end of fiscal year 2007. 

16 ‘‘(C) FISCAL YEAR 2002 ALLOTMENTS.—

17 With respect to any amounts allotted to a State 

18 pursuant to this section for fiscal year 2002 

19 that were redistributed to a State under para20 graph (1), or whose availability to a State was 

21 extended through the end of fiscal year 2006 

22 under paragraph (2), that were not expended by 

23 the State by the end of such fiscal year, the fol24 lowing rules shall apply: 
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1 ‘‘(i) 30 percent of those amounts shall 

2 remain available for expenditure by the 

3 State through the end of fiscal year 2007. 

4 ‘‘(ii) The remainder of such amounts 

5 shall be redistributed to States that have 

6 fully expended the amount of their fiscal 

7 year 2004 allotments in the same ratio as 

8 unexpended fiscal year 2004 allotments are 

9 redistributed under paragraph 

10 (1)(A)(i)(VII) to such States and the 

11 amounts redistributed under this clause 

12 shall remain available for expenditure 

13 through the end of fiscal year 2007.’’. 

14 SEC. 3. CONTINUED AUTHORITY FOR QUALIFYING STATES 

15 TO USE CERTAIN FUNDS FOR MEDICAID EX16 PENDITURES. 

17 Section 2105(g)(1)(A) of the Social Security Act (42 

18 U.S.C. 1397ee(g)(1)(A)), as added by Public Law 108–

19 74 (117 Stat. 895) and amended by Public Law 108–127 

20 (117 Stat. 134), is amended by striking ‘‘or 2001’’ and 

21 inserting ‘‘2001, 2002, 2003 or 2004’’.

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