II 

109TH CONGRESS 

2D SESSION S. 3913 

To amend title XXI of the Social Security Act to eliminate funding shortfalls 

for the State Children’s Health Insurance Program (SCHIP) for fiscal 

year 2007. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 19, 2006 

Mr. ROCKEFELLER 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 eliminate 

funding shortfalls for the State Children’s Health Insurance Program (SCHIP) for fiscal year 2007. 

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 ‘‘Keep Children Covered 

5 Act of 2006’’. 

6 SEC. 2. ELIMINATION OF SCHIP FUNDING SHORTFALLS 

7 FOR FISCAL YEAR 2007. 

8 (a) IN GENERAL.—Section 2104 of the Social Secu9 rity Act (42 U.S.C. 1397dd) is amended— 


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1 (1) in each of subsections (a), (b)(1), and 

2 (c)(1), by striking ‘‘subsection (d)’’ and inserting 

3 ‘‘subsections (d) and (h)’’; and 

4 (2) by adding at the end the following new sub5 section: 

6 ‘‘(h) SPECIAL RULE FOR REDISTRIBUTION OF

7 UNSPENT FISCAL YEAR 2004 ALLOTMENTS AND ADDI8 TIONAL ALLOTMENTS TO ELIMINATE FISCAL YEAR 2007 

9 FUNDING SHORTFALLS.— 

10 ‘‘(1) SPECIAL RULE FOR REDISTRIBUTION OF

11 FISCAL YEAR 2004 ALLOTMENTS.— 

12 ‘‘(A) IN GENERAL.—In the case of a State 

13 that expends all of its allotment under sub14 section (b) or (c) of this section for fiscal year 

15 2004 by the end of fiscal year 2006 and is an 

16 initial shortfall State described in subparagraph 

17 (B), the Secretary shall redistribute to the 

18 State under subsection (f) of this section (from 

19 the fiscal year 2004 allotments of other States) 

20 the following amount: 

21 ‘‘(i) STATE.—In the case of one of the 

22 50 States or the District of Columbia, the 

23 amount specified in subparagraph (C)(i) 

24 (less the total of the amounts under clause 

25 (ii)), multiplied by the ratio of the amount 


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1 specified in subparagraph (C)(ii) for the 

2 State to the amount specified in subpara3 graph (C)(iii). 

4 ‘‘(ii) TERRITORY.—In the case of a 

5 commonwealth or territory described in 

6 subsection (c)(3), an amount that bears 

7 the same ratio to 1.05 percent of the 

8 amount specified in subparagraph (C)(i) as 

9 the ratio of the commonwealth’s or terri10 tory’s fiscal year 2004 allotment under 

11 subsection (c) bears to the total of all such 

12 allotments for such fiscal year under such 

13 subsection. 

14 ‘‘(B) INITIAL SHORTFALL STATE DE15 SCRIBED.—For purposes of subparagraph (A), 

16 an initial shortfall State is a State with a State 

17 child health plan approved under this title for 

18 which the Secretary estimates, on the basis of 

19 the most recent data available to the Secretary 

20 as of the date of the enactment of this sub21 section, that the projected Federal expenditures 

22 under such plan for such State for fiscal year 

23 2007 will exceed the sum of— 

24 ‘‘(i) the amount of the State’s allot25 ments for each of fiscal years 2005 and 


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1 2006 that will not be expended by the end 

2 of fiscal year 2006; and 

3 ‘‘(ii) the amount of the State’s allot4 ment for fiscal year 2007. 

5 ‘‘(C) AMOUNTS USED IN COMPUTING RE6 DISTRIBUTIONS FOR FISCAL YEAR 2004 ALLOT7 MENTS.—For purposes of subparagraph 

8 (A)(i)— 

9 ‘‘(i) the amount specified in this 

10 clause is the total amount of unspent fiscal 

11 year 2004 allotments available for redis12 tribution under subsection (f); 

13 ‘‘(ii) the amount specified in this 

14 clause for an initial shortfall State is the 

15 amount the Secretary determines will 

16 eliminate the estimated shortfall described 

17 in subparagraph (B) for the State; and 

18 ‘‘(iii) the amount specified in this 

19 clause is the total sum of the amounts 

20 specified in clause (ii) for all initial short21 fall States. 

22 ‘‘(2) ADDITIONAL ALLOTMENTS TO ELIMINATE

23 FISCAL YEAR 2007 FUNDING SHORTFALLS REMAIN24 ING AFTER REDISTRIBUTION OF UNSPENT FISCAL

25 YEAR 2004 ALLOTMENTS.— 


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1 ‘‘(A) IN GENERAL.—In addition to the al2 lotments provided under subsection (b) and (c) 

3 for fiscal year 2007, the Secretary shall allot to 

4 each remaining shortfall State described in sub5 paragraph (B) such amount as the Secretary 

6 determines will eliminate the estimated shortfall 

7 described in such subparagraph for the State. 

8 ‘‘(B) REMAINING SHORTFALL STATE DE9 SCRIBED.—For purposes of subparagraph (A), 

10 a remaining shortfall State is a State (including 

11 a commonwealth or territory described in sub12 section (c)(3)) with a State child health plan 

13 approved under this title for which the Sec14 retary estimates, on the basis of the most re15 cent data available to the Secretary as of the 

16 date of the enactment of this subsection, that 

17 the projected federal expenditures under such 

18 plan for such State for fiscal year 2007 will ex19 ceed the sum of— 

20 ‘‘(i) the amount of the State’s allot21 ments for each of fiscal years 2005 and 

22 2006 that will not be expended by the end 

23 of fiscal year 2006; 

24 ‘‘(ii) the amount of the State’s allot25 ment for fiscal year 2007; and 


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1 ‘‘(iii) the amount, if any, of unspent 

2 allotments for fiscal year 2004 that are to 

3 be redistributed to the State during fiscal 

4 year 2007 in accordance with subsection 

5 (f) and paragraph (1). 

6 ‘‘(C) 1-YEAR AVAILABILITY; NO REDIS7 TRIBUTION OF UNEXPENDED ADDITIONAL AL8 LOTMENTS.—Notwithstanding subsections (e) 

9 and (f), amounts allotted to a remaining short10 fall State pursuant to this paragraph shall only 

11 remain available for expenditure by the State 

12 through September 30, 2007. Any amounts of 

13 such allotments that remain unexpended as of 

14 such date shall not be subject to redistribution 

15 under subsection (f) and shall revert to the 

16 Treasury on October 1, 2007. 

17 ‘‘(D) APPROPRIATION; ALLOTMENT AU18 THORITY.—For the purpose of providing addi19 tional allotments to remaining shortfall States 

20 under this paragraph there is appropriated, out 

21 of any funds in the Treasury not otherwise ap22 propriated, such sums as are necessary for fis23 cal year 2007.’’. 

24 (b) EXTENDING AUTHORITY FOR QUALIFYING

25 STATES TO USE CERTAIN FUNDS FOR MEDICAID EXVerDate Aug 31 2005 21:31 Sep 20, 2006 Jkt 049200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S3913.IS S3913

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1 PENDITURES.—Section 2105(g)(1)(A) of the Social Secu2 rity Act (42 U.S.C. 1397ee(g)(1)(A)) is amended by strik3 ing ‘‘or 2005’’ and inserting ‘‘2005, or 2006’’. 

4 (c) EFFECTIVE DATE.—The amendments made by 

5 this section apply to items and services furnished on or 

6 after October 1, 2006, without regard to whether or not 

7 regulations implementing such amendments have been 

8 issued. 

9 (d) PERIOD OF EFFECTIVENESS.—Section 

10 2104(h)(2) of the Social Security Act (as added by sub11 section (a)) shall terminate on September 30, 2007, and 

12 shall be considered to have expired notwithstanding sec13 tion 257 of the Balanced Budget and Emergency Deficit 

14 Control Act of 1985 (2 U.S.C. 907). 

Æ 


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