REDISTRIBUTION OF UNUSED ALLOTMENTS.

SEC. 106. REDISTRIBUTION OF UNUSED ALLOTMENTS.(a) Beginning With Fiscal Year 2007.—(1) In general.—Section 2104(f) (42 U.S.C. 1397dd(f)) is amended—(A) by striking “The Secretary” and inserting the following:“(1) In general.—The Secretary”;(B) by striking “States that have fully expended the amount of their allotments under this section.” and inserting “States that the Secretary determines with respect to the fiscal year for which unused allotments are available for redistribution under this subsection, are shortfall States described in paragraph (2) for such fiscal year, but not to exceed the amount of the shortfall described in paragraph (2)(A) for each such State (as may be adjusted under paragraph (2)(C)).”; and(C) by adding at the end the following new paragraph:“(2) Shortfall states described.—“(A) In general.—For purposes of paragraph (1), with respect to a fiscal year, a shortfall State described in this subparagraph is a State with a State child health plan approved under this title for which the Secretary estimates on the basis of the most recent data available to the Secretary, that the projected expenditures under such plan for the State for the fiscal year will exceed the sum of—“(i) the amount of the State’s allotments for any preceding fiscal years that remains available for 123 STAT. 24 expenditure and that will not be expended by the end of the immediately preceding fiscal year;“(ii) the amount (if any) of the child enrollment contingency fund payment under subsection (n); and“(iii) the amount of the State’s allotment for the fiscal year.“(B) Proration rule.—If the amounts available for redistribution under paragraph (1) for a fiscal year are less than the total amounts of the estimated shortfalls determined for the year under subparagraph (A), the amount to be redistributed under such paragraph for each shortfall State shall be reduced proportionally.“(C) Retrospective adjustment.—The Secretary may adjust the estimates and determinations made under paragraph (1) and this paragraph with respect to a fiscal year as necessary on the basis of the amounts reported by States not later than November 30 of the succeeding fiscal year, as approved by the Secretary.”.(2) Effective date.—The amendments made by paragraph (1) shall apply to redistribution of allotments made for fiscal year 2007 and subsequent fiscal years.(b) Redistribution of Unused Allotments for Fiscal Year 2006.—Section 2104(k) (42 U.S.C. 1397dd(k)) is amended—(1) in the subsection heading, by striking “the First 2 Quarters of”;(2) in paragraph (1), by striking “the first 2 quarters of”; and(3) in paragraph (6)—(A) by striking “the first 2 quarters of”; and(B) by striking “March 31” and inserting “September 30”.