I

103D CONGRESS

1ST SESSION H. R. 1860

To authorize a combined grant to States for administrative costs necessary

to carry out the program of aid to families with dependent children

under title IV of the Social Security Act, the State plan for medical

assistance under title XIX of such Act, and the Food Stamp program,

to eliminate enhanced Federal payments for such costs under such programs, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

APRIL 26, 1993

Mr. INGLIS of South Carolina introduced the following bill; which was referred

jointly to the Committees on Ways and Means, Agriculture, and Energy

and Commerce

A BILL

To authorize a combined grant to States for administrative

costs necessary to carry out the program of aid to families with dependent children under title IV of the Social

Security Act, the State plan for medical assistance under

title XIX of such Act, and the Food Stamp program,

to eliminate enhanced Federal payments for such costs

under such programs, and for other purposes.

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

2 This Act may be cited as the ‘‘Combined Welfare Ad3 ministration Act of 1993’’.

4 SEC. 2. COMBINED GRANT TO STATE FOR ADMINISTRATIVE

5 COSTS OF AFDC, MEDICAID, AND FOOD

6 STAMP PROGRAMS.

7 (a) IN GENERAL.—The Secretary of Health and

8 Human Services shall make grants, in accordance with the

9 provisions of this section, to each State for the costs of

10 the necessary and proper administration of its State plan

11 for aid to families with dependent children approved under

12 part A of title IV of the Social Security Act, its State plan

13 for medical assistance under title XIX of such Act and

14 its State plan of operation approved (by the Secretary of

15 Agriculture) under the Food Stamp Act of 1977.

16 (b) SOURCE OF FUNDS.—Grants to States under

17 subsection (a) shall be made from amounts appropriated

18 to carry out this Act, or from funds made available for

19 such purpose—

20 (1) by the Secretary of Health and Human

21 Services pursuant to part A of title IV, or title XIX,

22 of the Social Security Act; or

23 (2) by the Secretary of Agriculture pursuant to

24 the Food Stamp Act of 1977.

25 (c) ESTABLISHMENT OF SINGLE FUND.—Amounts

26 made available pursuant to subsection (b) shall be com-
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1 bined in a single fund account established by the Secretary

2 of the Treasury for the administration of this Act by the

3 Secretary of Health and Human Services.

4 SEC. 3. ELIMINATION OF ENHANCED FEDERAL PAYMENTS

5 FOR STATE ADMINISTRATIVE ACTIVITIES

6 UNDER AFDC, MEDICAID, AND FOOD STAMPS.

7 (a) AFDC.—

8 (1) IN GENERAL.—Section 403(a)(3) of the So9 cial Security Act (42 U.S.C. 603(a)(3)) is amended

10 to read as follows:

11 ‘‘(3) in the case of any State, an amount equal

12 to 50 percent of the total amounts expended during

13 such quarter as found necessary by the Secretary for

14 the proper and efficient administration of the State

15 plan;’’.

16 (2) CONFORMING AMENDMENTS.—(A) Section

17 402(e) of such Act (42 U.S.C. 602(e)) is amended—

18 (i) by striking ‘‘(e)(1)’’ and inserting

19 ‘‘(e)’’; and

20 (ii) by striking paragraph (2).

21 (B) Part A of title IV of such Act (42 U.S.C.

22 601 et seq.) is amended by striking section 413.

23 (b) MEDICAID.—
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1 (1) IN GENERAL.—Section 1903(a) of the So2 cial Security Act (42 U.S.C. 1396b(a)) is amend3 ed—

4 (A) by striking paragraphs (2), (3), (4),

5 and (6);

6 (B) in paragraph (5), by adding ‘‘plus’’ at

7 the end; and

8 (C) by redesignating paragraphs (5) and

9 (7) as paragraphs (2) and (3).

10 (2) CONFORMING AMENDMENTS.—(A) Section

11 1158 of such Act (42 U.S.C. 1320c–7) is amend12 ed—

13 (i) by striking ‘‘(a) A State plan’’ and in14 serting ‘‘A State plan’’; and

15 (ii) by striking subsection (b).

16 (B) Section 1902(a)(25)(A)(ii) of such Act (42

17 U.S.C. 1396a(a)(25)(A)(ii)) is amended by striking

18 ‘‘shall—’’ and all that follows and inserting the fol19 lowing: ‘‘shall be integrated with a mechanized

20 claims processing and information retrieval sys21 tem;’’.

22 (C) Section 1903 of such Act (42 U.S.C.

23 1396b) is amended by striking subsections (b)(3)

24 and (r).
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1 (D) Section 1903(w) of such Act (42 U.S.C.

2 1396b(w)) is amended—

3 (i) in paragraph (1)(B), by striking ‘‘sub4 section (a)(7)’’ and inserting ‘‘subsection

5 (a)(3)’’; and

6 (ii) by striking ‘‘paragraphs (2), (3), (4),

7 (6), and (7)’’ each place it appears in para8 graphs (1)(B) and (2)(A)(iii) and inserting

9 ‘‘paragraph (3)’’.

10 (E) Section 1919 of such Act (42 U.S.C.

11 1396r) is amended—

12 (i) in subsection (g)(3)(C), by striking

13 ‘‘1903(a)(2)(D)’’ and inserting ‘‘1903(a)(3)’’;

14 and

15 (ii) by striking ‘‘1903(a)(7)’’ each place it

16 appears in subsections (h)(2)(E) and (h)(2)(F)

17 and inserting ‘‘1903(a)(3)’’.

18 (c) FOOD STAMP PROGRAM.—

19 (1) IN GENERAL.—Section 16(a) of the Food

20 Stamp Act of 1977 (7 U.S.C. 2025(a)) is amended

21 by striking ‘‘: Provided, That the Secretary’’ and all

22 that follows through the end and inserting a period.

23 (2) CONFORMING AMENDMENTS.—(A) Section

24 16(c)(1) of such Act (7 U.S.C. 2025(c)(1)) is

25 amended—
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1 (i) in the matter preceding subparagraph

2 (A), by striking ‘‘and provide’’ and all that fol3 lows through ‘‘error rates’’;

4 (ii) in subparagraph (B), by striking

5 ‘‘other than those receiving adjustments under

6 subparagraph (A)’’;

7 (iii) in subparagraph (C), by striking ‘‘sub8 paragraph (B)’’ and inserting ‘‘subparagraph

9 (A)’’; and

10 (iv) by striking subparagraph (A) and re11 designating subparagraphs (B) and (C) as sub12 paragraphs (A) and (B).

13 (B) Section 16(c)(5) of such Act (7 U.S.C.

14 2025(c)(5)) is amended—

15 (i) by striking ‘‘either incentive payments

16 under paragraph (1)(A) or’’; and

17 (ii) by striking ‘‘paragraph (1)(C)’’ each

18 place it appears and inserting ‘‘paragraph

19 (1)(B)’’.

20 (C) Section 16(c)(6) of such Act (7 U.S.C.

21 2025(c)(6)) is amended—

22 (i) by striking ‘‘and incentive payments’’

23 and all that follows through ‘‘(1)(C)’’ and in24 serting ‘‘and claims pursuant to paragraph

25 (1)’’; and
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1 (ii) by striking ‘‘paragraph (1)(C)’’ and in2 serting ‘‘paragraph (1)(B)’’.

3 (D) Section 16(c)(7) of such Act (7 U.S.C.

4 2025(c)(7)) is amended by striking ‘‘paragraph

5 (1)(C)’’ and inserting ‘‘paragraph (1)(B)’’.

6 (E) Section 16 of such Act (7 U.S.C. 2025(c))

7 is amended by striking subsections (g) and (j).

8 (F) Section 23(a)(1) of such Act (7 U.S.C.

9 2032(a)(1)) is amended—

10 (i) in paragraph (1)(C), by striking ‘‘either

11 section 16(a) or 16(g)’’ and inserting ‘‘section

12 16(a)’’; and

13 (ii) by striking subparagraph (E).

14 SEC. 4. ALLOTMENT AND PAYMENT OF FUNDS UNDER

15 GRANT PROGRAM.

16 (a) IN GENERAL.—

17 (1) BASIS FOR PAYMENTS IN INITIAL YEAR OF

18 APPLICABILITY.—The total amount payable to a

19 State under this Act for fiscal year 1994 shall be

20 that amount which bears the same ratio to the

21 amount available pursuant to section 2 for that year

22 as the allowable administrative amounts determined

23 to be payable to such State for the last two quarters

24 in fiscal year 1993 and the first two quarters in fis25 cal year 1994 (as defined in subsection (b), and sub-
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1 ject to the limitation in subsection (c)) bear to the

2 total of such amounts for all States.

3 (2) PAYMENTS IN SUBSEQUENT YEARS.—The

4 total amount payable to a State under this Act for

5 each subsequent fiscal year shall be the amount pay6 able to the State under this subsection in the pre7 ceding year increased by the percentage increase in

8 the consumer price index for all urban consumers

9 (U.S. city average) for the 12-month period ending

10 with June of the previous year.

11 (3) TIMING; FREQUENCY.—Payments under

12 this section shall be made in accordance with section

13 203 of the Intergovernmental Cooperation Act of

14 1968 from amounts determined to be available to

15 the State under paragraph (1), and payments shall

16 be made at the same time and in the same frequency

17 as the Secretary determines appropriate for making

18 payments under section 403(b)(3) or section

19 1903(d)(2) of the Social Security Act.

20 (b) ALLOWABLE ADMINISTRATIVE AMOUNTS DE21 FINED.—

22 (1) IN GENERAL.—For purposes of subsection

23 (a)(1), the term ‘‘allowable administrative amount’’

24 means (subject to paragraphs (2) and (3)), with re25 spect to a State, the amounts determined to be pay-
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1 able to a State for the quarter specified is equal to

2 the sum of—

3 (A) payments to the State under section

4 403(a)(3) of the Social Security Act (excluding

5 any amounts determined under section

6 403(a)(3)(B) of such Act);

7 (B) payments to the State under para8 graphs (2), (3), (4), and (6) of section 1903(a)

9 of such Act (excluding amounts paid for the ac10 tivities described in paragraph (3)(A) of such

11 section); and

12 (C) payments to the State under section

13 16(a) of the Food Stamp Act of 1977 (exclud14 ing amounts retained by a State under such

15 section because of its collection or recovery ac16 tivities, and without regard to any adjustment

17 under section 16(c) of such Act or any amounts

18 paid under such section for the cost of inves19 tigations or prosecutions, or the cost of admin20 istering the food stamp program on all or part

21 of an Indian reservation).

22 (2) LIMITATION.—For purposes of paragraph

23 (1), in determining the amount of payments to a

24 State for a fiscal year, the State’s expenditures shall

25 be considered only if amounts have been transferred
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1 for grants under this Act for such year from sums

2 otherwise available (but for such transfer) for ad3 ministrative costs under title IV or title XIX of the

4 Social Security Act or under the Food Stamp Act of

5 1977.

6 (3) ELIMINATION OF ENHANCED ADMINISTRA7 TIVE PAYMENTS IN DETERMINING AMOUNT OF

8 GRANTS.—In carrying out this subsection, the Sec9 retary shall apply the Social Security Act and the

10 Food Stamp Act of 1977 as if the amendments to

11 those Acts made by section 3 had been in effect for

12 quarters beginning during 1993.

13 (c) TREATMENT OF AMOUNTS IN DISPUTE.—In the

14 event that there is a dispute between a State and the Sec15 retary (or the Secretary of Agriculture) with respect to

16 any such claim for payment which, if approved, would be

17 included in computing the State’s allotment under sub18 section (a), the amount in dispute shall not be included

19 for purposes of making allotments under such subsection

20 for any year prior to the first year beginning after the

21 dispute is resolved.

22 SEC. 5. REPORT ON INTENDED USE OF FUNDS AND ACTIVI23 TIES; AUDIT.

24 (a) REPORT BY STATE.—Each State desiring to re25 ceive an allotment for any fiscal year under this Act shall
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1 prepare a report on the intended use of such allotment.

2 Such report shall describe in general terms of goals to be

3 achieved and classes of administrative expenditures for

4 which funds received under the grant will be used. The

5 report shall assure that fiscal control and fund accounting

6 procedures will be established that are adequate to meet

7 the requirements of subsection (b). The report (for the

8 second and subsequent years for which an allotment is

9 sought under this Act) shall also include a description of

10 the State’s activities under the Act in the fiscal year pre11 ceding the year for which such report is prepared and the

12 extent to which the goals it identified in the report for

13 such preceding year were achieved. The report shall be

14 made public within the State on a timely basis and in such

15 manner as to facilitate review by and comments from in16 terested persons and local governments on its content, and

17 a copy of the report will be provided to the Secretary.

18 (b) AUDITS.—Each State receiving a grant under

19 this Act shall biennially conduct a financial and compli20 ance audit of its expenditures from such grants. Such

21 State audits shall be conducted by an entity independent

22 of any State agency administering activities carried out

23 under this subsection, and in accordance with the Comp24 troller General’s standards for auditing governmental or25 ganizations, programs, activities, and functions. The State
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1 shall also make copies of the audit available for public in2 spection within the State.

3 SEC. 6. INAPPLICABILITY OF SINGLE STATE AGENCY RE4 QUIREMENTS UNDER OTHER ACTS.

5 Notwithstanding any other provision of the Social Se6 curity Act or of the Food Stamp Act of 1977, a State

7 plan approved under part A of title IV of the Social Secu8 rity Act, under title XIX of such Act, or a State plan of

9 operation required by section 11(d) of the Food Stamp

10 Act of 1977, shall not be regarded as failing to comply

11 with applicable requirements under such provisions solely

12 because the agency administering the grant provided

13 under this Act is not the same State agency otherwise re14 sponsible for the administration of such State plan.

15 SEC. 7. CONFORMING AMENDMENTS.

16 (a) AFDC.—Section 403(a)(3) of the Social Security

17 Act (42 U.S.C. 603(a)(3)) is amended by striking ‘‘plan—

18 ’’ and inserting ‘‘plan (except to the extent that payment

19 is made to the State for expenditures under this part dur20 ing quarters in the fiscal year under the Combined Wel21 fare Administration Act of 1993)—’’.

22 (b) MEDICAID.—Section 1903(a)(3) of the Social Se23 curity Act (42 U.S.C. 1396b(a)(3)) is amended by striking

24 ‘‘(3)’’ and inserting ‘‘(3) except to the extent that payment

25 is made to the State for expenditures under this title dur-
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1 ing quarters in the fiscal year under the Combined Wel2 fare Administration Act of 1993,’’.

3 (c) FOOD STAMP PROGRAM.—Section 16 of the Food

4 Stamp Act of 1977 (7 U.S.C. 2025) is amended by adding

5 at the end the following new subsection:

6 ‘‘(j) Payments to a State under this section for quar7 ters in a fiscal year shall be reduced to the extent that

8 payment is made to the State for activities under this Act

9 during quarters in the fiscal year under the Combined

10 Welfare Administration Act of 1993.’’.

11 SEC. 8. DEFINITIONS.

12 In this Act—

13 (1) except as otherwise provided, the term

14 ‘‘Secretary’’ means the Secretary of Health and

15 Human Services; and

16 (2) the term ‘‘State’’ means each of the several

17 States and the District of Columbia.

18 SEC. 9. EFFECTIVE DATE.

19 This Act shall apply to payments to States under part

20 B of title IV of the Social Security Act, title XIX of the

21 Social Security Act, and the Food Stamp Act of 1977 for

22 quarters in fiscal years beginning after fiscal year 1993.

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