[United States Statutes at Large, Volume 117, 108th Congress, 1st Session]
[From the U.S. Government Publishing Office, www.gpo.gov]


117 STAT. 892

Public Law 108-74
108th Congress

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. [NOTE: Aug. 15, 2003 -  [H.R. 2854]]

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:

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117 STAT. 893

``(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 [NOTE: 42 USC
1397dd.] 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

[[Page 894]]

117 STAT. 894

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 [NOTE: 42
USC 1397dd.] (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--

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117 STAT. 895

(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 [NOTE: 42 USC 1397dd note.] 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

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117 STAT. 896

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) [NOTE: Ante, p. 765.]
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 [NOTE: 42 USC 1396d note.] Effective Date.--The
amendment made by subsection (a) shall take effect as if included in the
enactment

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117 STAT. 897

of section 401 of the Jobs and Growth Tax Relief Reconciliation Act of
2003 (Public Law 108-27).

Approved August 15, 2003.

LEGISLATIVE HISTORY--H.R. 2854 (S. 312):
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SENATE REPORTS: No. 108-78 accompanying S. 312 (Comm. on Finance).
CONGRESSIONAL RECORD, Vol. 149 (2003):
July 25, considered and passed House.
July 31, considered and passed Senate.