((a)) ** Definitions** In this section:

((1)) ** Adjusted amount** The term “adjusted amount” means, with respect to a covered State—

((A)) for fiscal year 2008, 90 percent of—

((i)) the sum of the amounts paid for fiscal year 2006 under section 102(a)(2)  (as in effect on ) for the eligible counties in the covered State that have elected under to receive a share of the State payment for fiscal year 2008; and

((ii)) the sum of the amounts paid for fiscal year 2006 under section 103(a)(2)  (as in effect on ) for the eligible counties in the State of Oregon that have elected under to receive the county payment for fiscal year 2008;

((B)) for fiscal year 2009, 81 percent of—

((i)) the sum of the amounts paid for fiscal year 2006 under section 102(a)(2)  (as in effect on ) for the eligible counties in the covered State that have elected under to receive a share of the State payment for fiscal year 2009; and

((ii)) the sum of the amounts paid for fiscal year 2006 under section 103(a)(2)  (as in effect on ) for the eligible counties in the State of Oregon that have elected under to receive the county payment for fiscal year 2009; and

((C)) for fiscal year 2010, 73 percent of—

((i)) the sum of the amounts paid for fiscal year 2006 under section 102(a)(2)  (as in effect on ) for the eligible counties in the covered State that have elected under to receive a share of the State payment for fiscal year 2010; and

((ii)) the sum of the amounts paid for fiscal year 2006 under section 103(a)(2)  (as in effect on ) for the eligible counties in the State of Oregon that have elected under to receive the county payment for fiscal year 2010.

((2)) ** Covered State** The term “covered State” means each of the States of California, Louisiana, Oregon, Pennsylvania, South Carolina, South Dakota, Texas, and Washington.

((b)) ** Transition payments** For each of fiscal years 2008 through 2010, in lieu of the payment amounts that otherwise would have been made under paragraphs (1)(B) and (2)(B) of , the Secretary of the Treasury shall pay the adjusted amount to each covered State and the eligible counties within the covered State, as applicable.section 7112(a) of this title

((c)) ** Distribution of adjusted amount** Except as provided in subsection (d), it is the intent of Congress that the method of distributing the payments under subsection (b) among the counties in the covered States for each of fiscal years 2008 through 2010 be in the same proportion that the payments were distributed to the eligible counties in fiscal year 2006.

((d)) ** Distribution of payments in California** The following payments shall be distributed among the eligible counties in the State of California in the same proportion that payments under section 102(a)(2)  (as in effect on ) were distributed to the eligible counties for fiscal year 2006:

((1)) Payments to the State of California under subsection (b).

((2)) The shares of the eligible counties of the State payment for California under for each of fiscal years 2011 through 2015 and for each of fiscal years 2017 through 2026.

((e)) ** Treatment of payments** For purposes of this chapter, any payment made under subsection (b) shall be considered to be a payment made under .section 7112(a) of this title