Combined Welfare Administration Act of 1993

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Combined Welfare Administration Act 
of 1993''.

SEC. 2. COMBINED GRANT TO STATE FOR ADMINISTRATIVE COSTS OF AFDC, 
              MEDICAID, AND FOOD STAMP PROGRAMS.

    (a) In General.--The Secretary of Health and Human Services shall 
make grants, in accordance with the provisions of this section, to each 
State for the costs of the necessary and proper administration of its 
State plan for aid to families with dependent children approved under 
part A of title IV of the Social Security Act, its State plan for 
medical assistance under title XIX of such Act and its State plan of 
operation approved (by the Secretary of Agriculture) under the Food 
Stamp Act of 1977.
    (b) Source of Funds.--Grants to States under subsection (a) shall 
be made from amounts appropriated to carry out this Act, or from funds 
made available for such purpose--
            (1) by the Secretary of Health and Human Services pursuant 
        to part A of title IV, or title XIX, of the Social Security 
        Act; or
            (2) by the Secretary of Agriculture pursuant to the Food 
        Stamp Act of 1977.
    (c) Establishment of Single Fund.--Amounts made available pursuant 
to subsection (b) shall be combined in a single fund account 
established by the Secretary of the Treasury for the administration of 
this Act by the Secretary of Health and Human Services.

SEC. 3. ELIMINATION OF ENHANCED FEDERAL PAYMENTS FOR STATE 
              ADMINISTRATIVE ACTIVITIES UNDER AFDC, MEDICAID, AND FOOD 
              STAMPS.

    (a) AFDC.--
            (1) In general.--Section 403(a)(3) of the Social Security 
        Act (42 U.S.C. 603(a)(3)) is amended to read as follows:
            ``(3) in the case of any State, an amount equal to 50 
        percent of the total amounts expended during such quarter as 
        found necessary by the Secretary for the proper and efficient 
        administration of the State plan;''.
            (2) Conforming amendments.--(A) Section 402(e) of such Act 
        (42 U.S.C. 602(e)) is amended--
                    (i) by striking ``(e)(1)'' and inserting ``(e)''; 
                and
                    (ii) by striking paragraph (2).
            (B) Part A of title IV of such Act (42 U.S.C. 601 et seq.) 
        is amended by striking section 413.
    (b) Medicaid.--
            (1) In general.--Section 1903(a) of the Social Security Act 
        (42 U.S.C. 1396b(a)) is amended--
                    (A) by striking paragraphs (2), (3), (4), and (6);
                    (B) in paragraph (5), by adding ``plus'' at the 
                end; and
                    (C) by redesignating paragraphs (5) and (7) as 
                paragraphs (2) and (3).
            (2) Conforming amendments.--(A) Section 1158 of such Act 
        (42 U.S.C. 1320c-7) is amended--
                    (i) by striking ``(a) A State plan'' and inserting 
                ``A State plan''; and
                    (ii) by striking subsection (b).
            (B) Section 1902(a)(25)(A)(ii) of such Act (42 U.S.C. 
        1396a(a)(25)(A)(ii)) is amended by striking ``shall--'' and all 
        that follows and inserting the following: ``shall be integrated 
        with a mechanized claims processing and information retrieval 
        system;''.
            (C) Section 1903 of such Act (42 U.S.C. 1396b) is amended 
        by striking subsections (b)(3) and (r).
            (D) Section 1903(w) of such Act (42 U.S.C. 1396b(w)) is 
        amended--
                    (i) in paragraph (1)(B), by striking ``subsection 
                (a)(7)'' and inserting ``subsection (a)(3)''; and
                    (ii) by striking ``paragraphs (2), (3), (4), (6), 
                and (7)'' each place it appears in paragraphs (1)(B) 
                and (2)(A)(iii) and inserting ``paragraph (3)''.
            (E) Section 1919 of such Act (42 U.S.C. 1396r) is amended--
                    (i) in subsection (g)(3)(C), by striking 
                ``1903(a)(2)(D)'' and inserting ``1903(a)(3)''; and
                    (ii) by striking ``1903(a)(7)'' each place it 
                appears in subsections (h)(2)(E) and (h)(2)(F) and 
                inserting ``1903(a)(3)''.
    (c) Food Stamp Program.--
            (1) In general.--Section 16(a) of the Food Stamp Act of 
        1977 (7 U.S.C. 2025(a)) is amended by striking ``: Provided, 
        That the Secretary'' and all that follows through the end and 
        inserting a period.
            (2) Conforming amendments.--(A) Section 16(c)(1) of such 
        Act (7 U.S.C. 2025(c)(1)) is amended--
                    (i) in the matter preceding subparagraph (A), by 
                striking ``and provide'' and all that follows through 
                ``error rates'';
                    (ii) in subparagraph (B), by striking ``other than 
                those receiving adjustments under subparagraph (A)'';
                    (iii) in subparagraph (C), by striking 
                ``subparagraph (B)'' and inserting ``subparagraph 
                (A)''; and
                    (iv) by striking subparagraph (A) and redesignating 
                subparagraphs (B) and (C) as subparagraphs (A) and (B).
            (B) Section 16(c)(5) of such Act (7 U.S.C. 2025(c)(5)) is 
        amended--
                    (i) by striking ``either incentive payments under 
                paragraph (1)(A) or''; and
                    (ii) by striking ``paragraph (1)(C)'' each place it 
                appears and inserting ``paragraph (1)(B)''.
            (C) Section 16(c)(6) of such Act (7 U.S.C. 2025(c)(6)) is 
        amended--
                    (i) by striking ``and incentive payments'' and all 
                that follows through ``(1)(C)'' and inserting ``and 
                claims pursuant to paragraph (1)''; and
                    (ii) by striking ``paragraph (1)(C)'' and inserting 
                ``paragraph (1)(B)''.
            (D) Section 16(c)(7) of such Act (7 U.S.C. 2025(c)(7)) is 
        amended by striking ``paragraph (1)(C)'' and inserting 
        ``paragraph (1)(B)''.
            (E) Section 16 of such Act (7 U.S.C. 2025(c)) is amended by 
        striking subsections (g) and (j).
            (F) Section 23(a)(1) of such Act (7 U.S.C. 2032(a)(1)) is 
        amended--
                    (i) in paragraph (1)(C), by striking ``either 
                section 16(a) or 16(g)'' and inserting ``section 
                16(a)''; and
                    (ii) by striking subparagraph (E).

SEC. 4. ALLOTMENT AND PAYMENT OF FUNDS UNDER GRANT PROGRAM.

    (a) In General.--
            (1) Basis for payments in initial year of applicability.--
        The total amount payable to a State under this Act for fiscal 
        year 1994 shall be that amount which bears the same ratio to 
        the amount available pursuant to section 2 for that year as the 
        allowable administrative amounts determined to be payable to 
        such State for the last two quarters in fiscal year 1993 and 
        the first two quarters in fiscal year 1994 (as defined in 
        subsection (b), and subject to the limitation in subsection 
        (c)) bear to the total of such amounts for all States.
            (2) Payments in subsequent years.--The total amount payable 
        to a State under this Act for each subsequent fiscal year shall 
        be the amount payable to the State under this subsection in the 
        preceding year increased by the percentage increase in the 
        consumer price index for all urban consumers (U.S. city 
        average) for the 12-month period ending with June of the 
        previous year.
            (3) Timing; frequency.--Payments under this section shall 
        be made in accordance with section 203 of the Intergovernmental 
        Cooperation Act of 1968 from amounts determined to be available 
        to the State under paragraph (1), and payments shall be made at 
        the same time and in the same frequency as the Secretary 
        determines appropriate for making payments under section 
        403(b)(3) or section 1903(d)(2) of the Social Security Act.
    (b) Allowable Administrative Amounts Defined.--
            (1) In general.--For purposes of subsection (a)(1), the 
        term ``allowable administrative amount'' means (subject to 
        paragraphs (2) and (3)), with respect to a State, the amounts 
        determined to be payable to a State for the quarter specified 
        is equal to the sum of--
                    (A) payments to the State under section 403(a)(3) 
                of the Social Security Act (excluding any amounts 
                determined under section 403(a)(3)(B) of such Act);
                    (B) payments to the State under paragraphs (2), 
                (3), (4), and (6) of section 1903(a) of such Act 
                (excluding amounts paid for the activities described in 
                paragraph (3)(A) of such section); and
                    (C) payments to the State under section 16(a) of 
                the Food Stamp Act of 1977 (excluding amounts retained 
                by a State under such section because of its collection 
                or recovery activities, and without regard to any 
                adjustment under section 16(c) of such Act or any 
                amounts paid under such section for the cost of 
                investigations or prosecutions, or the cost of 
                administering the food stamp program on all or part of 
                an Indian reservation).
            (2) Limitation.--For purposes of paragraph (1), in 
        determining the amount of payments to a State for a fiscal 
        year, the State's expenditures shall be considered only if 
        amounts have been transferred for grants under this Act for 
        such year from sums otherwise available (but for such transfer) 
        for administrative costs under title IV or title XIX of the 
        Social Security Act or under the Food Stamp Act of 1977.
            (3) Elimination of enhanced administrative payments in 
        determining amount of grants.--In carrying out this subsection, 
        the Secretary shall apply the Social Security Act and the Food 
        Stamp Act of 1977 as if the amendments to those Acts made by 
        section 3 had been in effect for quarters beginning during 
        1993.
    (c) Treatment of Amounts in Dispute.--In the event that there is a 
dispute between a State and the Secretary (or the Secretary of 
Agriculture) with respect to any such claim for payment which, if 
approved, would be included in computing the State's allotment under 
subsection (a), the amount in dispute shall not be included for 
purposes of making allotments under such subsection for any year prior 
to the first year beginning after the dispute is resolved.

SEC. 5. REPORT ON INTENDED USE OF FUNDS AND ACTIVITIES; AUDIT.

    (a) Report by State.--Each State desiring to receive an allotment 
for any fiscal year under this Act shall prepare a report on the 
intended use of such allotment. Such report shall describe in general 
terms of goals to be achieved and classes of administrative 
expenditures for which funds received under the grant will be used. The 
report shall assure that fiscal control and fund accounting procedures 
will be established that are adequate to meet the requirements of 
subsection (b). The report (for the second and subsequent years for 
which an allotment is sought under this Act) shall also include a 
description of the State's activities under the Act in the fiscal year 
preceding the year for which such report is prepared and the extent to 
which the goals it identified in the report for such preceding year 
were achieved. The report shall be made public within the State on a 
timely basis and in such manner as to facilitate review by and comments 
from interested persons and local governments on its content, and a 
copy of the report will be provided to the Secretary.
    (b) Audits.--Each State receiving a grant under this Act shall 
biennially conduct a financial and compliance audit of its expenditures 
from such grants. Such State audits shall be conducted by an entity 
independent of any State agency administering activities carried out 
under this subsection, and in accordance with the Comptroller General's 
standards for auditing governmental organizations, programs, 
activities, and functions. The State shall also make copies of the 
audit available for public inspection within the State.

SEC. 6. INAPPLICABILITY OF SINGLE STATE AGENCY REQUIREMENTS UNDER OTHER 
              ACTS.

    Notwithstanding any other provision of the Social Security Act or 
of the Food Stamp Act of 1977, a State plan approved under part A of 
title IV of the Social Security Act, under title XIX of such Act, or a 
State plan of operation required by section 11(d) of the Food Stamp Act 
of 1977, shall not be regarded as failing to comply with applicable 
requirements under such provisions solely because the agency 
administering the grant provided under this Act is not the same State 
agency otherwise responsible for the administration of such State plan.

SEC. 7. CONFORMING AMENDMENTS.

    (a) AFDC.--Section 403(a)(3) of the Social Security Act (42 U.S.C. 
603(a)(3)) is amended by striking ``plan--'' and inserting ``plan 
(except to the extent that payment is made to the State for 
expenditures under this part during quarters in the fiscal year under 
the Combined Welfare Administration Act of 1993)--''.
    (b) Medicaid.--Section 1903(a)(3) of the Social Security Act (42 
U.S.C. 1396b(a)(3)) is amended by striking ``(3)'' and inserting ``(3) 
except to the extent that payment is made to the State for expenditures 
under this title during quarters in the fiscal year under the Combined 
Welfare Administration Act of 1993,''.
    (c) Food Stamp Program.--Section 16 of the Food Stamp Act of 1977 
(7 U.S.C. 2025) is amended by adding at the end the following new 
subsection:
    ``(j) Payments to a State under this section for quarters in a 
fiscal year shall be reduced to the extent that payment is made to the 
State for activities under this Act during quarters in the fiscal year 
under the Combined Welfare Administration Act of 1993.''.

SEC. 8. DEFINITIONS.

    In this Act--
            (1) except as otherwise provided, the term ``Secretary'' 
        means the Secretary of Health and Human Services; and
            (2) the term ``State'' means each of the several States and 
        the District of Columbia.

SEC. 9. EFFECTIVE DATE.

    This Act shall apply to payments to States under part B of title IV 
of the Social Security Act, title XIX of the Social Security Act, and 
the Food Stamp Act of 1977 for quarters in fiscal years beginning after 
fiscal year 1993.

Summary: Combined Welfare Administration Act of 1993 - Authorizes the Secretary of Health and Human Services to make a combined grant to States for administrative costs necessary to carry out the Aid to Families with Dependent Children program under part A of title IV of the Social Security Act, the Medicaid program under title XIX of the Social Security Act, and the Food Stamp program. 
Eliminates enhanced Federal payments for State administrative activities under such programs. 
Provides for allotment and payment of funds under such grant program, as well as State reports on the intended use of such allotments. 
Sets forth audit requirements.