297
made by this section). The Comptroller General shall pro-
vide for submittal of a report on such study to Congress
by not later than 4 years after the date of the enactment
of this Act.
(e) EFFECTIVE DATE.—The amendments made by
this section take effect on January 1, 2001, and shall
apply to services furnished on or after such date.
SEC. 703. STREAMLINED APPROVAL OF CONTINUED STATE-
WIDE SECTION 1115 MEDICAID WAIVERS.
(a) IN GENERAL.—Section 1115 (42 U.S.C. 1315)
is amended by adding at the end the following new sub-
section:
‘‘(f ) An application by the chief executive officer of
a State for an extension of a waiver project the State is
operating under an extension under subsection (e) (in this
subsection referred to as the ‘waiver project’) shall be sub-
mitted and approved or disapproved in accordance with
the following:
‘‘(1) The application for an extension of the
waiver project shall be submitted to the Secretary at
least 120 days prior to the expiration of the current
period of the waiver project.
‘‘(2) Not later than 45 days after the date such
application is received by the Secretary, the Sec-
retary shall notify the State if the Secretary intends
298
to review the terms and conditions of the waiver
project. A failure to provide such notification shall
be deemed to be an approval of the application.
‘‘(3) Not later than 45 days after the date a no-
tification is made in accordance with paragraph (2),
the Secretary shall inform the State of proposed
changes in the terms and conditions of the waiver
project. A failure to provide such information shall
be deemed to be an approval of the application.
‘‘(4) During the 30-day period that begins on
the date information described in paragraph (3) is
provided to a State, the Secretary shall negotiate re-
vised terms and conditions of the waiver project with
the State.
‘‘(5)(A) Not later than 120 days after the date
an application for an extension of the waiver project
is submitted to the Secretary (or such later date
agreed to by the chief executive officer of the State),
the Secretary shall—
‘‘(i) approve the application subject to such
modifications in the terms and conditions—
‘‘(I) as have been agreed to by the
Secretary and the State; or
‘‘(II) in the absence of such agree-
ment, as are determined by the Secretary
299
to be reasonable, consistent with the over-
all objectives of the waiver project, and not
in violation of applicable law; or
‘‘(ii) disapprove the application.
‘‘(B) A failure by the Secretary to approve or
disapprove an application submitted under this sub-
section in accordance with the requirements of sub-
paragraph (A) shall be deemed to be an approval of
the application subject to such modifications in the
terms and conditions as have been agreed to (if any)
by the Secretary and the State.
‘‘(6) An approval of an application for an exten-
sion of a waiver project under this subsection shall
be for a period not to exceed 3 years.
‘‘(7) An extension of a waiver project under this
subsection shall be subject to the final reporting and
evaluation requirements of paragraphs (4) and (5)
of subsection (e) (taking into account the extension
under this subsection with respect to any timing re-
quirements imposed under those paragraphs).’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to requests for extensions of
demonstration projects pending or submitted on or after
the date of the enactment of this Act.
300
SEC. 704. MEDICAID COUNTY-ORGANIZED HEALTH SYS-
TEMS.
(a) IN GENERAL.—Section 9517(c)(3)(C) of the
Comprehensive Omnibus Budget Reconciliation Act of
1985 is amended by striking ‘‘10 percent’’ and inserting
‘‘14 percent’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) takes effect on the date of the enactment
of this Act.
SEC. 705. DEADLINE FOR ISSUANCE OF FINAL REGULATION
RELATING TO MEDICAID UPPER PAYMENT
LIMITS.
(a) IN GENERAL.—Not later than December 31,
2000, the Secretary of Health and Human Services (in
this section referred to as the ‘‘Secretary’’), notwith-
standing any requirement of the Administrative Proce-
dures Act under chapter 5 of title 5, United States Code,
or any other provision of law, shall issue under sections
447.272, 447.304, and 447.321 of title 42, Code of Fed-
eral Regulations (and any other section of part 447 of title
42, Code of Federal Regulations that the Secretary deter-
mines is appropriate), a final regulation based on the pro-
posed rule announced on October 5, 2000, that—
(1) modifies the upper payment limit test ap-
plied to State medicaid spending for inpatient hos-
pital services, outpatient hospital services, nursing
301
facility services, intermediate care facility services
for the mentally retarded, and clinic services by ap-
plying an aggregate upper payment limit to pay-
ments made to government facilities that are not
State-owned or operated facilities; and
(2) provides for a transition period in accord-
ance with subsection (b).
(b) TRANSITION PERIOD.—
(1) IN GENERAL.—The final regulation required
under subsection (a) shall provide that, with respect
to a State described in paragraph (3), the State
shall be considered to be in compliance with the final
regulation required under subsection (a) so long as,
for each State fiscal year during the period de-
scribed in paragraph (4), the State reduces pay-
ments under a State medicaid plan payment provi-
sion or methodology described in paragraph (3) (in-
cluding a payment provision or methodology de-
scribed in that paragraph that was approved under
a waiver of such plan), or reduces the actual dollar
payment levels described in paragraph (3)(B), so
that the amount of the payments that would other-
wise have been made under such provision, method-
ology, or payment levels by the State for any State
fiscal year during such period is reduced by 15 per-
302
cent in the first such State fiscal year, and by an
additional 15 percent in each of the next 5 State fis-
cal years.
(2) 
REQUIREMENT.—Notwithstanding 
para-
graph (1), the final regulation required under sub-
section (a) shall provide that, for any period (or por-
tion of a period) that occurs on or after October 1,
2008, medicaid payments made by a State described
in paragraph (3) shall comply with such final regula-
tion.
(3) STATE DESCRIBED.—A State described in
this paragraph is a State with a State medicaid plan
payment provision or methodology (including a pay-
ment provision or methodology approved under a
waiver of such plan) which—
(A) was approved, deemed to have been ap-
proved, or was in effect on or before October 1,
1992 (including any subsequent amendments or
successor provisions or methodologies and
whether or not a State plan amendment was
made to carry out such provision or method-
ology after such date) or under which claims for
Federal financial participation were filed and
paid on or before such date; and
303
(B) provides for payments that are in ex-
cess of the upper payment limit test established
under the final regulation required under sub-
section (a) (or which would be noncompliant
with such final regulation if the actual dollar
payment levels made under the payment provi-
sion or methodology in the State fiscal year
which begins during 1999 were continued).
(4) PERIOD DESCRIBED.—The period described
in this paragraph is the period that begins on the
first State fiscal year that begins after September
30, 2002, and ends on September 30, 2008.
SEC. 706. ALASKA FMAP.
Notwithstanding the first sentence of section 1905(b)
of the Social Security Act (42 U.S.C. 1396d(b)), only with
respect to each of fiscal years 2001 through 2005, for pur-
poses of titles XIX and XXI of the Social Security Act,
the State percentage used to determine the Federal med-
ical assistance percentage for Alaska shall be that percent-
age which bears the same ratio to 45 percent as the square
of the adjusted per capita income of Alaska (determined
by dividing the State’s 3-year average per capita income
by 1.05) bears to the square of the per capita income of
the 50 States.
304
SEC. 707. ONE-YEAR EXTENSION OF WELFARE-TO-WORK
TRANSITION.
(a) IN
GENERAL.—Section 1925(f ) (42 U.S.C.
1396r–6(f )) is amended by striking ‘‘2001’’ and inserting
‘‘2002’’.
(b) 
CONFORMING
AMENDMENT.—Section
1902(e)(1)(B) (42 U.S.C. 1396a(e)(1)(B)) is amended by
striking ‘‘2001’’ and inserting ‘‘2002’’.
SEC. 708. ADDITIONAL ENTITIES QUALIFIED TO DETER-
MINE MEDICAID PRESUMPTIVE ELIGIBILITY
FOR LOW-INCOME CHILDREN.
(a) IN GENERAL.—Section 1920A(b)(3)(A)(i) (42
U.S.C. 1396r–1a(b)(3)(A)(i)) is amended—
(1) by striking ‘‘or (II)’’ and inserting ‘‘, (II)’’;
and
(2) by inserting ‘‘eligibility of a child for med-
ical assistance under the State plan under this title,
or eligibility of a child for child health assistance
under the program funded under title XXI, (III) is
an elementary school or secondary school, as such
terms are defined in section 14101 of the Elemen-
tary and Secondary Education Act of 1965 (20
U.S.C. 8801), an elementary or secondary school op-
erated or supported by the Bureau of Indian Affairs,
a State or tribal child support enforcement agency,
an organization that is providing emergency food
305
and shelter under a grant under the Stewart B.
McKinney Homeless Assistance Act, or a State or
tribal office or entity involved in enrollment in the
program under this title, under part A of title IV,
under title XXI, or that determines eligibility for
any assistance or benefits provided under any pro-
gram of public or assisted housing that receives Fed-
eral funds, including the program under section 8 or
any other section of the United States Housing Act
of 1937 (42 U.S.C. 1437 et seq.) or under the Na-
tive American Housing Assistance and Self-Deter-
mination Act of 1996 (25 U.S.C. 4101 et seq.), or
(IV) any other entity the State so deems, as ap-
proved by the Secretary’’ before the semicolon.
(b) TECHNICAL AMENDMENTS.—Section 1920A (42
U.S.C. 1396r–1a) is amended—
(1) in subsection (b)(3)(A)(i), by striking ‘‘42
U.S.C. 9821’’ and inserting ‘‘42 U.S.C. 9831’’;
(2) in subsection (b)(3)(A)(ii), by striking
‘‘paragraph (1)(A)’’ and inserting ‘‘paragraph (2)’’;
and
(3) in subsection (c)(2), in the matter preceding
subparagraph 
(A), 
by 
striking 
‘‘subsection
(b)(1)(A)’’ and inserting ‘‘subsection (b)(2)’’.
306
SEC. 709. DEVELOPMENT OF UNIFORM QMB/SLMB APPLICA-
TION FORM.
(a) IN
GENERAL.—Section 1905(p) (42 U.S.C.
1396d(p)) is amended by adding at the end the following
new paragraph:
‘‘(5)(A) The Secretary shall develop and distribute to
States a simplified application form for use by individuals
(including both qualified medicare beneficiaries and speci-
fied low-income medicare beneficiaries) in applying for
medical assistance for medicare cost-sharing under this
title in the States which elect to use such form. Such form
shall be easily readable by applicants and uniform nation-
ally.
‘‘(B) In developing such form, the Secretary shall
consult with beneficiary groups and the States.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect 1 year after the date of
the enactment of this Act, regardless of whether regula-
tions have been promulgated to carry out such amendment
by such date. The Secretary of Health and Human Serv-
ices shall develop the uniform application form under such
amendment by not later than 9 months after the date of
the enactment of this Act.
SEC. 710. TECHNICAL CORRECTIONS.
(a) IN GENERAL.—Section 1903(f )(4) (42 U.S.C.
1396b(f )(4)) is amended—
307
(1) by inserting ‘‘1902(a)(10)(A)(ii)(XVII),’’
after ‘‘1902(a)(10)(A)(ii)(XVI),’’; and
(2) by inserting ‘‘1902(a)(10)(A)(ii)(XVIII),’’
after ‘‘1902(a)(10)(A)(ii)(XVII),’’.
(b) EFFECTIVE DATES.—(1) The amendment made
by subsection (a)(1) shall be effective as if included in the
enactment of section 121 of the Foster Care Independence
Act of 1999 (Public Law 106–169).
(2) The amendment made by subsection (a)(2) shall
be effective as if included in the enactment of the Breast
and Cervical Cancer Prevention and Treatment Act of
2000 (Public Law 106–354).
TITLE VIII—STATE CHILDREN’S
HEALTH INSURANCE PROGRAM
SEC. 801. SPECIAL RULE FOR REDISTRIBUTION AND AVAIL-
ABILITY OF UNUSED FISCAL YEAR 1998 AND
1999 SCHIP ALLOTMENTS.
(a) CHANGE IN RULES FOR REDISTRIBUTION AND
RETENTION OF UNUSED SCHIP ALLOTMENTS FOR FIS-
CAL YEARS 1998 AND 1999.—Section 2104 (42 U.S.C.
1397dd) is amended by adding at the end the following
new subsection:
‘‘(g) RULE FOR REDISTRIBUTION AND EXTENDED
AVAILABILITY OF FISCAL YEARS 1998 AND 1999 ALLOT-
MENTS.—
308
‘‘(1) AMOUNT REDISTRIBUTED.—
‘‘(A) IN GENERAL.—In the case of a State
that expends all of its allotment under sub-
section (b) or (c) for fiscal year 1998 by the
end of fiscal year 2000, or for fiscal year 1999
by the end of fiscal year 2001, the Secretary
shall redistribute to the State under subsection
(f ) (from the fiscal year 1998 or 1999 allot-
ments of other States, respectively, as deter-
mined by the application of paragraphs (2) and
(3) with respect to the respective fiscal year)
the following amount:
‘‘(i) STATE.—In the case of one of the
50 States or the District of Columbia, with
respect to—
‘‘(I) the fiscal year 1998 allot-
ment, the amount by which the
State’s expenditures under this title in
fiscal years 1998, 1999, and 2000 ex-
ceed the State’s allotment for fiscal
year 1998 under subsection (b); or
‘‘(II) the fiscal year 1999 allot-
ment, the amount by which the
State’s expenditures under this title in
fiscal years 1999, 2000, and 2001 ex-
309
ceed the State’s allotment for fiscal
year 1999 under subsection (b).
‘‘(ii) TERRITORY.—In the case of a
commonwealth or territory described in
subsection (c)(3), an amount that bears
the same ratio to 1.05 percent of the total
amount described in paragraph (2)(B)(i)(I)
as the ratio of the commonwealth’s or ter-
ritory’s fiscal year 1998 or 1999 allotment
under subsection (c) (as the case may be)
bears to the total of all such allotments for
such fiscal year under such subsection.
‘‘(B) EXPENDITURE RULES.—An amount
redistributed to a State under this paragraph
with respect to fiscal year 1998 or 1999—
‘‘(i) shall not be included in the deter-
mination of the State’s allotment for any
fiscal year under this section;
‘‘(ii) notwithstanding subsection (e),
shall remain available for expenditure by
the State through the end of fiscal year
2002; and
‘‘(iii) shall be counted as being ex-
pended with respect to a fiscal year allot-
310
ment in accordance with applicable regula-
tions of the Secretary.
‘‘(2) EXTENSION OF AVAILABILITY OF PORTION
OF UNEXPENDED FISCAL YEARS 1998 AND 1999 AL-
LOTMENTS.—
‘‘(A) IN GENERAL.—Notwithstanding sub-
section (e):
‘‘(i) FISCAL YEAR 1998 ALLOTMENT.—
Of the amounts allotted to a State pursu-
ant to this section for fiscal year 1998 that
were not expended by the State by the end
of fiscal year 2000, the amount specified in
subparagraph (B) for fiscal year 1998 for
such State shall remain available for ex-
penditure by the State through the end of
fiscal year 2002.
‘‘(ii) 
FISCAL
YEAR
1999
ALLOT-
MENT.—Of the amounts allotted to a State
pursuant to this subsection for fiscal year
1999 that were not expended by the State
by the end of fiscal year 2001, the amount
specified in subparagraph (B) for fiscal
year 1999 for such State shall remain
available for expenditure by the State
through the end of fiscal year 2002.
311
‘‘(B) AMOUNT REMAINING AVAILABLE FOR
EXPENDITURE.—The amount specified in this
subparagraph for a State for a fiscal year is
equal to—
‘‘(i) the amount by which (I) the total
amount available for redistribution under
subsection (f ) from the allotments for that
fiscal year, exceeds (II) the total amounts
redistributed under paragraph (1) for that
fiscal year; multiplied by
‘‘(ii) the ratio of the amount of such
State’s unexpended allotment for that fis-
cal year to the total amount described in
clause (i)(I) for that fiscal year.
‘‘(C) USE OF UP TO 10 PERCENT OF RE-
TAINED 1998 ALLOTMENTS FOR OUTREACH AC-
TIVITIES.—Notwithstanding 
section
2105(c)(2)(A), with respect to any State de-
scribed in subparagraph (A)(i), the State may
use up to 10 percent of the amount specified in
subparagraph (B) for fiscal year 1998 for ex-
penditures for outreach activities approved by
the Secretary.
‘‘(3) DETERMINATION OF AMOUNTS.—For pur-
poses of calculating the amounts described in para-
312
graphs (1) and (2) relating to the allotment for fis-
cal year 1998 or fiscal year 1999, the Secretary
shall use the amounts reported by the States not
later than December 15, 2000, or November 30,
2001, respectively, on HCFA Form 64 or HCFA
Form 21, as approved by the Secretary.’’.
(b) EFFECTIVE DATE.—The amendments made by
this section shall take effect as if included in the enact-
ment of section 4901 of BBA (111 Stat. 552).
SEC. 802. AUTHORITY TO PAY MEDICAID EXPANSION SCHIP
COSTS FROM TITLE XXI APPROPRIATION.
(a) AUTHORITY TO PAY MEDICAID EXPANSION
SCHIP COSTS FROM TITLE XXI APPROPRIATION.—Sec-
tion 2105(a) (42 U.S.C. 1397ee(a)) is amended—
(1) by redesignating subparagraphs (A) through
(D) of paragraph (2) as clauses (i) through (iv), re-
spectively, and indenting appropriately;
(2) by redesignating paragraph (1) as subpara-
graph (C), and indenting appropriately;
(3) by redesignating paragraph (2) as subpara-
graph (D), and indenting appropriately;
(4) by striking ‘‘(a) IN GENERAL.—’’ and the
remainder of the text that precedes subparagraph
(C), as so redesignated, and inserting the following:
‘‘(a) PAYMENTS.—
313
‘‘(1) IN GENERAL.—Subject to the succeeding
provisions of this section, the Secretary shall pay to
each State with a plan approved under this title,
from its allotment under section 2104, an amount
for each quarter equal to the enhanced FMAP (or,
in the case of expenditures described in subpara-
graph (B), the Federal medical assistance percent-
age (as defined in the first sentence of section
1905(b))) of expenditures in the quarter—
‘‘(A) for child health assistance under the
plan for targeted low-income children in the
form of providing medical assistance for which
payment is made on the basis of an enhanced
FMAP under the fourth sentence of section
1905(b);
‘‘(B) for the provision of medical assist-
ance on behalf of a child during a presumptive
eligibility period under section 1920A;’’; and
(5) by adding after subparagraph (D), as so re-
designated, the following new paragraph:
‘‘(2) ORDER OF PAYMENTS.—Payments under
paragraph (1) from a State’s allotment shall be
made in the following order:
‘‘(A) First, for expenditures for items de-
scribed in paragraph (1)(A).
314
‘‘(B) Second, for expenditures for items
described in paragraph (1)(B).
‘‘(C) Third, for expenditures for items de-
scribed in paragraph (1)(C).
‘‘(D) Fourth, for expenditures for items
described in paragraph (1)(D).’’.
(b) ELIMINATION
OF REQUIREMENT TO REDUCE
TITLE
XXI ALLOTMENT
BY
MEDICAID
EXPANSION
SCHIP COSTS.—Section 2104 (42 U.S.C. 1397dd) is
amended by striking subsection (d).
(c) AUTHORITY TO TRANSFER TITLE XXI APPRO-
PRIATIONS TO TITLE XIX APPROPRIATION ACCOUNT AS
REIMBURSEMENT
FOR MEDICAID EXPENDITURES
FOR
MEDICAID
EXPANSION
SCHIP SERVICES.—Notwith-
standing any other provision of law, all amounts appro-
priated under title XXI and allotted to a State pursuant
to subsection (b) or (c) of section 2104 of the Social Secu-
rity Act (42 U.S.C. 1397dd) for fiscal years 1998 through
2000 (including any amounts that, but for this provision,
would be considered to have expired) and not expended
in providing child health assistance or related services for
which payment may be made pursuant to subparagraph
(C) or (D) of section 2105(a)(1) of such Act (42 U.S.C.
1397ee(a)(1)) (as amended by subsection (a)), shall be
available to reimburse the Grants to States for Medicaid
315
account in an amount equal to the total payments made
to such State under section 1903(a) of such Act (42
U.S.C. 1396b(a)) for expenditures in such years for med-
ical assistance described in subparagraphs (A) and (B) of
section 2105(a)(1) of such Act (42 U.S.C. 1397ee(a)(1))
(as so amended).
(d) CONFORMING AMENDMENTS.—
(1) Section 1905(b) (42 U.S.C. 1396d(b)) is
amended in the fourth sentence by striking ‘‘the
State’s allotment under section 2104 (not taking
into account reductions under section 2104(d)(2))
for the fiscal year reduced by the amount of any
payments made under section 2105 to the State
from such allotment for such fiscal year’’ and insert-
ing ‘‘the State’s available allotment under section
2104’’.
(2) 
Section 
1905(u)(1)(B) 
(42 
U.S.C.
1396d(u)(1)(B)) is amended by striking ‘‘and sec-
tion 2104(d)’’.
(3) Section 2104 (42 U.S.C. 1397dd), as
amended by subsection (b), is further amended—
(A) in subsection (b)(1), by striking ‘‘and
subsection (d)’’; and
(B) in subsection (c)(1), by striking ‘‘sub-
ject to subsection (d),’’.
316
(4) Section 2105(c) (42 U.S.C. 1397ee(c)) is
amended—
(A) in paragraph (2)(A), by striking all
that follows ‘‘Except as provided in this para-
graph,’’ and inserting ‘‘the amount of payment
that may be made under subsection (a) for a
fiscal year for expenditures for items described
in paragraph (1)(D) of such subsection shall
not exceed 10 percent of the total amount of ex-
penditures for which payment is made under
subparagraphs (A), (C), and (D) of paragraph
(1) of such subsection.’’;
(B) in paragraph (2)(B), by striking ‘‘de-
scribed in subsection (a)(2)’’ and inserting ‘‘de-
scribed in subsection (a)(1)(D)’’; and
(C) in paragraph (6)(B), by striking ‘‘Ex-
cept as otherwise provided by law,’’ and insert-
ing ‘‘Except as provided in subparagraph (A) or
(B) of subsection (a)(1) or any other provision
of law,’’.
(5) Section 2110(a) (42 U.S.C. 1397jj(a)) is
amended by striking ‘‘section 2105(a)(2)(A)’’ and
inserting ‘‘section 2105(a)(1)(D)(i)’’.
(e) 
TECHNICAL
AMENDMENT.—Section
2105(d)(2)(B)(ii) (42 U.S.C. 1397ee(d)(2)(B)(ii)) is
317
amended by striking ‘‘enhanced FMAP under section
1905(u)’’ and inserting ‘‘enhanced FMAP under the
fourth sentence of section 1905(b)’’.
(f ) EFFECTIVE DATE.—The amendments made by
this section shall be effective as if included in the enact-
ment of section 4901 of the BBA (111 Stat. 552).
SEC. 803. APPLICATION OF MEDICAID CHILD PRESUMPTIVE
ELIGIBILITY PROVISIONS.
Section 2107(e)(1) (42 U.S.C. 1397gg(e)(1)) is
amended by adding at the end the following new subpara-
graph:
‘‘(D) Section 1920A (relating to presump-
tive eligibility for children).’’.
TITLE IX—OTHER PROVISIONS
Subtitle A—PACE Program
SEC. 901. EXTENSION OF TRANSITION FOR CURRENT WAIV-
ERS.
Section 4803(d)(2) of BBA is amended—
(1) in subparagraph (A), by striking ‘‘24
months’’ and inserting ‘‘36 months’’;
(2) in subparagraph (A), by striking ‘‘the initial
effective date of regulations described in subsection
(a)’’ and inserting ‘‘July 1, 2000’’; and
(3) in subparagraph (B), by striking ‘‘3 years’’
and inserting ‘‘4 years’’.
318
SEC. 902. CONTINUING OF CERTAIN OPERATING ARRANGE-
MENTS PERMITTED.
(a) IN GENERAL.—Section 1894(f )(2) (42 U.S.C.
1395eee(f )(2)) is amended by adding at the end the fol-
lowing new subparagraph:
‘‘(C) CONTINUATION
OF
MODIFICATIONS
OR WAIVERS OF OPERATIONAL REQUIREMENTS
UNDER DEMONSTRATION STATUS.—If a PACE
program operating under demonstration author-
ity has contractual or other operating arrange-
ments which are not otherwise recognized in
regulation and which were in effect on July 1,
2000, the Secretary (in close consultation with,
and with the concurrence of, the State admin-
istering agency) shall permit any such program
to continue such arrangements so long as such
arrangements are found by the Secretary and
the State to be reasonably consistent with the
objectives of the PACE program.’’.
(b) CONFORMING AMENDMENT.—Section 1934(f )(2)
(42 U.S.C. 1396u–4(f )(2)) is amended by adding at the
end the following new subparagraph:
‘‘(C) CONTINUATION
OF
MODIFICATIONS
OR WAIVERS OF OPERATIONAL REQUIREMENTS
UNDER DEMONSTRATION STATUS.—If a PACE
program operating under demonstration author-