I 

108TH CONGRESS 

1ST SESSION H. R. 3415

To improve the program of temporary Federal fiscal assistance to States. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 30, 2003

Mr. KING of Iowa (for himself, Mr. SHADEGG, Mr. SESSIONS, Mr. GUTKNECHT, Mrs. MUSGRAVE, Mr. PITTS, Mr. JONES of North Carolina, Mr. 

GOODE, Mr. BARTLETT of Maryland, Mr. AKIN, Mr. DOOLITTLE, Mr. 

FRANKS of Arizona, Mr. HOEKSTRA, Mr. BEAUPREZ, Mr. CHOCOLA, Mr. 

RYUN of Kansas, Mr. TERRY, Mr. CRANE, Mr. HENSARLING, Mr. MILLER of Florida, Mr. RYAN of Wisconsin, Mr. WILSON of South Carolina, 

Mr. HOSTETTLER, Mr. PENCE, Mr. TANCREDO, Mr. GARRETT of New 

Jersey, and Mr. BARRETT of South Carolina) introduced the following 

bill; which was referred to the Committee on Government Reform 

A BILL

To improve the program of temporary Federal fiscal 

assistance to States.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘State Assistance Ac5 countability Act’’. 
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1 SEC. 2. FUNDING LIMITATIONS AND CRITERIA. 

2 Section 601(d)(2) of the Social Security Act (42 

3 U.S.C. 801(d)(2)) is amended to read as follows: 

4 ‘‘(2) LIMITATION.—A State may use funds pro5 vided under this section only for types of expendi6 tures authorized under—

7 ‘‘(A) the budget of the State for the fiscal 

8 year for which the funds are to be expended 

9 that, as of May 28, 2003, was most recently ap10 proved by the State legislature; or 

11 ‘‘(B) in the absence of such a budget, the 

12 budget of the State for the fiscal year for which 

13 the funds are to be expended that, as of May 

14 28, 2003, was at the furthest stage of develop15 ment by the State legislature.’’. 

16 SEC. 3. STATE CERTIFICATION. 

17 Section 601(e) of the Social Security Act (42 U.S.C. 

18 801(e)) is amended to read as follows: 

19 ‘‘(e) CERTIFICATION.—In order to receive a payment 

20 under this section for a fiscal year, the State shall provide 

21 the Secretary of the Treasury with a certification that the 

22 State will use the payment in accordance with subsection 

23 (d). The certification shall include a detailed report on 

24 how the payment will be expended.’’. 
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1 SEC. 4. AUDIT AND REMITTANCE. 

2 Section 601 of the Social Security Act (42 U.S.C. 

3 801) is amended by redesignating subsections (f) and (g) 

4 as subsections (i) and (j), respectively, and by inserting 

5 after subsection (e) the following: 

6 ‘‘(f) AUDIT.—At the end of any State fiscal year for 

7 which a State expends funds provided under this section, 

8 the Secretary of the Treasury shall conduct an audit to 

9 ensure that the funds were spent in accordance with sub10 section (d) and the certification required by subsection (e). 

11 ‘‘(g) REMITTANCE OF IMPROPERLY EXPENDED

12 FUNDS.—If the Secretary of the Treasury determines that 

13 a State has expended funds provided under this section, 

14 in a manner inconsistent with subsection (d) or the certifi15 cation required by subsection (e), the State shall remit to 

16 the Treasury of the United States an amount equal to the 

17 amount so determined to have been inappropriately ex18 pended plus a 10 percent penalty, plus interest at a rate 

19 of 10 percent per annum. 

20 ‘‘(h) GUIDANCE ON ESSENTIAL GOVERNMENT SERV21 ICE.—In making a determination as to whether a State 

22 has expended funds provided under this section on an es23 sential government service, the Secretary of the Treasury 

24 shall take into consideration whether the service—
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1 ‘‘(1) appears on any list of essential government 

2 services most recently issued by the State before 

3 May 28, 2003; 

4 ‘‘(2) is similar to a service provided by the Fed5 eral Government in the absence of appropriations as 

6 listed in the Office of Management and Budget 

7 Memorandum to the Heads of Executive Depart8 ments and Agencies dated September 30, 1980; or 

9 ‘‘(3) is a service continued by the State in the 

10 absence of appropriations.’’. 

11 SEC. 5. DEFINITION OF ESSENTIAL GOVERNMENT SERVICE. 

12 Section 601 of the Social Security Act (42 U.S.C. 

13 801), as amended by section 4 of this Act, is amended 

14 by redesignating subsection (j) as subsection (k) and by 

15 inserting after subsection (i) the following: 

16 ‘‘(j) ESSENTIAL GOVERNMENT SERVICE.—In this 

17 section, the term ‘essential government service’, with re18 spect to a State, includes reduction in the amount of debt 

19 held or planned to be held by the State, and does not in20 clude any activity that was not funded by the State in 

21 the preceding fiscal year of the State.’’.

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