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(5) provide such methods of administration (including after January 1,1940, methods relating to the establishment and maintenance of personnel standards on a merit basis, except that the Secretary shall exercise no authority with respect to the selection, tenure of office, and compensation of any individual employed in accordance with such methods) as are found by the Secretary to be necessary for the proper and efficient operation of the plan; and (6) provide that the State agency will make such reports, in such form and containing such information, as the Secretary may from time to time require, and comply with such provisions as the Secretary may from time to time find necessary to assure the correctness and verification of such reports; (7) provide that the State agency shall, in determining need, take into consideration any other income and resources of any child claiming aid to dependent children;1 (8) provide safeguards which restrict the use or disclosure of information concerning applicants and recipients to purposes directly connected with the administration of aid to dependent children;3- * (9) provide, effective July 1, 1951, that all individuals wishing to make application for aid to dependent children shall have opportunity to do so, and that aid to dependent children shall be furnished with reasonable promptness to all eligible individuals; (10) effective July 1, 1952, provide for prompt notice to appropriate law-enforcement officials of the furnishing of aid to de pendent children in respect of a child who has been deserted or aban dpned by a parent; (11) provide, effective October 1, 1950, that no aid will be furnished any individual under the plan with respect to any period with respect to which he is receiving old-age assistance under the State plan approved under section 2 of this Act; and (12) provide a description of the services (if any) which the State agency makes available to maintain and strengthen family life for children, including a description of the steps taken to assure, in the provision of such services, maximum utilization of other agencies providing similar or related services.

(b) The Secretary shall approve any plan which fulfills the conditions specified in subsection (a), except that he shall not approve any plan which imposes as a condition of eligibility for aid to dependent children, a residence requirement which denies aid with respect to any child residing in the State (1) who has resided in the State for one year immediately preceding the application for such aid, or (2) who was born within one year immediately preceding the application, if the parent or other relative with whom the child is living has resided in the State for one year immediately preceding the birth.

Payment to States

Sec. 403. (a) From the sums appropriated therefor, the Secretary of the Treasury shall pay to each State which has an approved plan for aid to dependent children, for each quarter, beginning with the quarter commencing October 1,1958, (1) in the case of any State other than Puerto Kico, the Virgin Islands, and Guam, an amount equal to the sum of the following proportions of the total amounts expended during such quarter as aid to dependent children under the State plan (including expenditures for insurance premiums for medical or any other type of remedial care or the cost thereof) —

* See Bbc. 1109, p. 166, for modification of this clause with respect to earned Income of recipients of aid to the blind.

3 See footnote 3, p. 2.

* See footnote 2, supra.

(A) fourteen-seventeenths of such expenditures, not counting so much of any expenditure with respect to any month as exceeds the product of $17 multiplied by the total number of recipients of aid to dependent children for such month (which total number, for purposes of this subsection, means (i) the number of individuals with respect to whom aid to dependent children in the form of money payments is paid for such month, plus (ii) the number of other individuals with respect to whom expenditures were made in such month as aid to dependent children in the form of medical or any other type of remedial care); plus

(B) the Federal percentage of the amount by which such expenditures exceed the maximum which may be counted under clause (A), not counting so much of any expenditure with respect to any month as exceeds the product of $30 multiplied by the total number of recipients of aid to dependent children for such month;

and (2) in the case of Puerto Rico, the Virgin Islands, and Guam, an amount equal to one-half of the total of the sums expended during such quarter as aid to dependent children under the State plan (including expenditures for insurance premiums for medical or any other type of remedial care or the cost thereof), not counting so much of any expenditure with respect to any month as exceeds $18 multiplied by the total number of recipients of aid to dependent children for such month; and (3) in the case of any State, an amount equal to one-half of the total of the sums expended during such quarter as found necessary by the Secretary of Health, Education, and Welfare for the proper and efficient administration of the State plan, including services which are provided by the staff of the State agency (or of the local agency administering the State plan in the political subdivision) to relatives with whom such children (applying for or receiving such aid) are living, in order to help such relatives attain self-support or self-care, or which are provided to maintain and strengthen family life for such children.5'8

(b) The method of computing and paying such amounts shall be as follows:

(1) The Secretary of Health, Education, and Welfare shall, prior to the beginning of each quarter, estimate the amount to be paid to the State for such quarter under the provisions of subsection (a), such estimate to be based on (A) a report filed by the State containing its estimate of the total sum to be expended in such quarter in accordance with the provisions of such subsection and stating the amount appropriated or made available by the State and its political subdivisions for such expenditures in such quarter, and if such amount is less than the State's proportionate share of the total sum of such estimated expenditures, the source or sources from which the difference is expected to be derived, (B) records showing the number of dependent children in the State, and (C) such other investigation as the Secretary may find necessary.

* Sec. 502 of P. L. 85-840 amended sec. 408 (a) In Ub entirety effective October 1, 1058. For sec 403 (a) as It read prior to this amendment see p. 284.

Pursuant to sec. 9 of the Act of April 19, l»i>0 (<>4 Stat. 44, 47), the Secretary of the Treasury must also pay to the States, in addition to the amounts produced by sec. 403 (a) of the Social Security Act, an amount equal to 80 percent of the State share of expenditures under the State plan with respect to Navajo and Hop! Indians.

"See also sec. 1108 (p. 106) for a further limitation on the amounts which may be certified for payment to Puerto Rico, the Virgin Islands, and Guam for any fiscal year.

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(2) The Secretary of Health, Education, and Welfare shall then certify to the Secretary of the Treasury the amount so estimated by the Secretary of Health, Education, and Welfare, (A) reduced or increased, as the case may be, by any sum by which the Secretary of Health, Education, and Welfare finds that his estimate for any prior quarter was greater or less than the amount which should have been paid to the State for such quarter, and (B) reduced by a sum equivalent to the pro rata share to which the United States is equitably entitled, as determined by the Secretary of Health, Education, and Welfare, of the net amount recovered during any prior quarter by the State or any political subdivision thereof with respect to aid to dependent children furnished under the State plan; except that such increases or reductions shall not be made to the extent that such sums have been applied to make the amount certified for any prior quarter greater or less than the amount estimated by the Secretary of Health, Education, and Welfare for such prior quarter.

(3) The Secretary of the Treasury shall thereupon, through the Fiscal Service 7 of the Treasury Department and prior to audit or settlement by the General Accounting Office, pay to the State, at the time or times fixed by the Secretary of Health, Education, and Welfare, the amount so certified.

Operation of State Plans

Sec. 404. In the case of any State plan for aid to dependent children which has been approved by the Secretary of Health, Education, and Welfare, if the Secretary, after reasonable notice and opportunity for hearing to the State agency administering or supervising the administration of such plan, finds —

(1) that the plan has been so changed as to impose any residence requirement prohibited by section 402 (b), or that in the administration of the plan any such prohibited requirement is imposed, with the knowledge of such State agency, in a substantial number of cases ; or

(2) that in the administration of the plan there is a failure to comply substantially with any provision required by section 402 (a) to be included in the plan;

the Secretary shall notify such State agency that further payments will not be made to the State until the Secretary is satisfied that such prohibited requirement is no longer so imposed, and that there is no longer any such failure to comply. Until he is so satisfied he shall make no further certification to the Secretary of the Treasury with respect to such State.

7 See footnote 11 in title I of this Act.

Administration

Sec. 405. [Executed. Authorized appropriation for administrative expenses of the Social Security Board under this title for the fiscal year ending June 30,1936. J

Definitions

Sec. 406. When used in this title—

(a) The term "dependent child" means a needy child under the age of eighteen, who has been deprived of parental support or care by reason of the death, continued absence from the home, or physical or mental incapacity of a parent, and who is living with his father, mother, grandfather, grandmother, brother, sister, stepfather, stepmother, stepbrother, stepsister, uncle, aunt, first cousin, nephew, or niece, in a place of residence maintained by one or more of such relatives as his or their own home;

(b) The term "aid to dependent children" means money payments with respect to, or medical care in behalf of or any type of remedial care recognized under State law in behalf of, a dependent child or dependent children, and includes money payments or medical care or any type of remedial care recognized under State law for any month to meet tne needs of the relative with whom any dependent child is living if money payments have been made under the State plan with respect to such child for such month;

(c) The term "relative with whom any dependent child is living" means the individual who is one of the relatives specified in subsection (a) and with whom such child is living (within the meaning of such subsection) in a place of residence maintained by such individual (himself or together with any one or more of the other relatives so specified) as his (or their) own home.

TITLE V_GRANTS TO STATES FOR MATERNAL

CHILD WELFARE

PART 1–MATERNAL AND CHILD HEALTH SERVICEs

Sec. 501. Appropriation--------------------------------------------
Sec. 502. Allotments to States---------------------------------------
(a) Amount Allotted.--------------------------------------
(b) Additional Funds--------------------------------------
(c) Availability of Unpaid Allotments-----------------------
Sec. 503. Approval of State Plans-----------------------------------
(a) Provisions To Be Incorporated.--------------------------
(b) Approval by Secretary---------------------------------
Sec. 504. Payment to States----------------------------------------
(a) Amounts To Be Paid by Federal Government-------------
(b) Method of Computation and Payment-------------------
(c) Certification of É. -------------------------------
Sec. 505. Operation of State Plans-----------------------------------
PART 2–SERvices for CRIPPLED CHILDREN
Sec. 511. Appropriation--------------------------------------------
Sec. 512. Allotments to States--------------------------------------
(a) Amount Allotted.--------------------------------------
(b) Additional Funds--------------------------------------
(c) Availability of Unpaid Allotments.-----------------------
Sec. 513. Approval of State Plans -----------------------------------
o Provisions To Be Incorporated--------------------------
(b) Approval by Secretary---------------------------------
Sec. 514. Payment to States----------------------------------------
- (a) Amounts To Be Paid by Federal Government-------------
(b) Method of Computation and Payment-------------------
(c) Certification of Payments.-------------------------------
Sec. 515. Operation of State Plans-----------------------------------
PART 3–Child-WELFA RE SERVICEs
Sec. 521. Appropriation--------------------------------------------
Sec. 522. Allotments to States--------------------------------------
(a) Amount Allotted.--------------------------------------
(b) Base of Allotment-------------------------------------
Sec. 523. Payment to States----------------------------------------
(a) Basis of Payments.-------------------------------------
(b) Method of Computation and Payment -------------------
Sec. 524. Allotment Percentage and Federal Share---------------------
(a) Computing Allotment Percentage-----------------------
(b) Computing Federal Share------------------------------
(c) Notice of ś and Percentages------------------------
(d) Definition of “United States”---------------------------
(e) Promulgations of Federal Shares for Alaska---------------
Sec. 525. Reallotment----------------------------------------------
Sec. 526. Research or Demonstration Projects---- --------------------
(a) Appropriation----------------------------------------
(b) Payments of Grants-----------------------------------
PART 4—VocationAL REHABILITATION (Superseded]
PART 5–ADMINISTRATION

Sec. 541. Administration------------------------------------------

(a) [Executed.]
(b) Study and Investigation-------------------------------

*This table of contents does not appear in the law. 134

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