PUBLIC LAW 106-554—APPENDIX F 114 STAT. 2763A-571 (B) The amendments made by paragraph (2) shall apply to payments made on or after January 1, 2001. (c) APPLICATION OF MEDICAID DSH TRANSITION RULE TO PUBLIC HOSPITALS IN ALL STATES.— (1) IN GENERAL.— During the period described in paragraph (3), with respect to a State, section 4721(e) of the Balanced Budget Act of 1997 (Public Law 105-33; 111 Stat. 514), as amended by section 607 of BBRA (113 Stat. 1501A-396), shall be applied as though— (A) "September 30, 2002" were substituted for "July 1, 1997" each place it appears; (B) "hospitals owned or operated by a State (as defined for purposes of title XIX of such Act), or by an instrumentality or a unit of government within a State (as so defined)" were substituted for "the State of California"; (C) paragraph (3) were redesignated as paragraph (4); (D) "and" were omitted from the end of paragraph (2); and (E) the following new paragraph were inserted after paragraph (2): "(3) '(as defined in subparagraph (B) but without regard to clause (ii) of that subparagraph and subject to subsection (d))' were substituted for '(as defined in subparagraph (B))' in subparagraph (A) of such section; and". (2) SPECIAL RULE. —With respect to California, section 4721(e) of the Balanced Budget Act of 1997 (Public Law 105- 33; 111 Stat. 514), as so amended, shall be applied without regard to paragraph (1). (3) PERIOD DESCRIBED.— The period described in this paragraph is the period that begins, with respect to a State, on the first day of the first State fiscal year that begins after September 30, 2002, and ends on the last day of the succeeding State fiscal year. (4) APPLICATION TO WAIVERS.— With respect to a State operating under a waiver of the requirements of title XIX of the Social Security Act (42 U.S.C. 1396 et seq.) under section 1115 of such Act (42 U.S.C. 1315), the amount by which any payment adjustment made by the State under title XIX of such Act (42 U.S.C. 1396 et seq.), after the application of section 4721(e) of the Balanced Budget Act of 1997 under paragraph (1) to such State, exceeds the costs of furnishing hospital services provided by hospitals described in such section shall be fully reflected as an increase in the baseline expenditure limit for such waiver. (d) ASSISTANCE FOR CERTAIN PUBLIC HOSPITALS. — (1) IN GENERAL.—Beginning with fiscal year 2002, notwithstanding section 1923(f) of the Social Security Act (42 U.S.C. 1396r-4(f)) and subject to paragraph (3), with respect to a State, payment adjustments made under title XIX of the Social Security Act (42 U.S.C. 1396 et seq.) to a hospital described in paragraph (2) shall be made without regard to the DSH allotment limitation for the State determined under section 1923(f) of that Act (42 U.S.C. 1396r-4(f)). (2) HOSPITAL DESCRIBED. —A hospital is described in this paragraph if the hospital— (A) is owned or operated by a State (as defined for " purposes of title XIX of the Social Security Act), or by
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