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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 one-half of the total sum of such estimated expenditures, the source or sources from which the difference is expected to be derived, and (B) such investigation as he may find necessary.

(2) The Secretary of Health, Education, and Welfare shall then certify the amount so estimated by him to the Secretary of the Treasury, 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, except to the extent that such sum has 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 of the Treasury Department ana 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.

(c) The Secretary of Health, Education, and Welfare shall from time to time certify to the Secretary of the Treasury the amounts to be paid to the States from the allotment available under section 512 (b), and the Secretary of the Treasury shall, through the Fiscal Service of the Treasury Department, and prior to audit or settlement by the General Accounting Office, make payments of such amounts from such allotments at the time or times specified by the Secretary of Health, Education; and Welfare. Payments of grants for special projects under section 512 (b) may be made in advance or by way of reimbursement, and in such installments, as the Secretary may determine; and shall be made on such conditions as the Secretary finds necessary to carry out the purposes of the grants.23

Operation of State Plans

Sec. 515. In the case of any State plan for services for crippled 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 that in the administration of the plan there is a failure to comply substantially with any provision required by section 513 to be included in the plan, he shall notify such State agency that further payments will not be made to the State until he is satisfied 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.

«»P. L. 86-778, sec. 707 (b) (2) (B), added the second sentence to sec. 514 (c), effective only with respect to fiscal years beginning after June 30, 1960.

Part 3—Child-Welfare Services *
Appropriation

Sec. 521. For the purpose of enabling the United States, through the Secretary, to cooperate with State public-welfare agencies in establishing, extending, and strengthening public-welfare services (hereinafter in this title referred to as "child-welfare services") for the protection and care of homeless, dependent, and neglected children, and children in danger of becoming delinquent, there is hereby authorized to be appropriated for each fiscal year, beginning with the fiscal year ending June 30,1961," the sum of $25,000,000.26

Allotments to States

Sec. 522. (a) The sums appropriated for each fiscal year under section 521 shall be allotted by the Secretary for use by cooperating State public-welfare agencies which have plans developed jointly by the State agency and the Secretary, as follows: He shall allot to each State $50,000 or, if greater, such portion of $70,000" as the amount appropriated under section 521 for such year bears to the amount authorized to be so appropriated; and he shall allot to each State an amount which bears the same ratio to the remainder of the sums so appropriated for such year as the product of (1) the population of such State under the age of 21 and (2) the allotment percentage of such State (as determined under section 524) bears to the sum of the corresponding products of all the States.

(b) (1) If the amount allotted to a State under subsection (a) for any fiscal year is less than such State's base allotment, it shall be increased to such base allotment, the total of the increases thereby required being derived by proportionately reducing the amount allotted under subsection (a) to each of the remaining States, but with such adjustments as may be necessary to prevent the allotment of any such remaining State under subsection (a) from being thereby reduced to less than its base allotment.

(2) For purposes of paragraph (1) the base allotment of any State for any fiscal year means the amount which would be allotted to such State for such year under the provisions of section 521, as in effect prior to the enactment of the Social Security Amendments of 1958, as applied to an appropriation of $12,000,000.

Payment to States

Sec. 523. (a) From the sums appropriated therefor and the allotment available under this part, the Secretary shall from time to time pay to each State with a plan for child- welfare services developed as provided in this part an amount equal to the Federal share ( as determined under section 524) of the total sum expended under such plan (including the cost of administration of the plan) in meeting the costs of district, county, or other local child-welfare services, in developing State services for the encouragement and assistance of adequate methods of community child-welfare organization, in paying the costs of returning any runaway child who has not attained the age of eighteen to his own community in another State, and of maintaining such child until such return (for a period not exceeding fifteen days), in cases in which such costs cannot be met by the parents of such child or by any person, agency, or institution legally responsible for the support of such child: Provided, That in developing such services for children the facilities and experience of voluntary agencies shall be utilized in accordance with child-care programs and arrangements in the States and local communities as may be authorized by the State.

14 Sec. 601, P. L. 85-840, amended Part 3, Title V, in several respects Including the formula for the allotment among the States of the sums appropriated and the elimination or the references to providing services in predominantly rural areas and areas of special need, and by adding the provisions with respect to allotment percentage, base allotment, Federal share and reallotment. See p. 286 for Part 3, Title V, prior to the Amendments of 1958.

*P. L. 86-778, sec. 707 a) 3) (A), changed "June 30, 1959" to "June 30, 1961," effective only with respect to fiscal years beginning after June 30, 1960.

"P. L. 86-778, sec. 707 a) (3) (A), changed "$17,000,000" to "$25,000,000," effective only with respect to fiscal years beginning after June 30, 1960.

"P. L. 86-778, sec. 707 (a) (3) (B), amended sec. 522 (a) by striking out "such portion of $60,000" and by Inserting In lieu thereof "$50,000 or, if greater, sucli portion of »70,000." This amendment is effective only with respect to fiscal years beginning after June 30, 1960.

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

(1) The Secretary shall, prior to the beginning of each period for which a payment is to be made, estimate the amount to be paid to the State for such period under the provisions of subsection (a) .

(2) From the allotment available therefor, the Secretary shall pay the amount so estimated, reduced or increased, as the case may be, by any sum (not previously adjusted under this section) by -which he finds that his estimate of the amount to be paid the State for any prior period under this section was greater or less than the amount which should have been paid thereunder to the State for such prior period.

Allotment Percentage and Federal Share

Sec. 524. (a) The "allotment percentage" for any State shall be 100 per centum less the State percentage; and the State percentage shall be that percentage which bears the same ratio to 50 per centum as the per capita income of such State bears to the per capita income of the United States; 2S except that (A) the allotment percentage shall in no case be less than 30 per centum or more than 70 per centum, and (B) the allotment percentage shall be 29 70 per centum in the case of Puerto Kico, the Virgin Islands, and Guam.

(b) For the fiscal year ending June 30, 1960, and each year thereafter, the "Federal share" for any State shall be 100 per centum less that percentage which bears the same ratio to 50 per centum as the per capita income of such State bears to the per capita income of the United States,30 except that (1) in no case shall the Federal share be less than 331/& per centum or more than 66% per centum, and (2) the Federal share shall be31 66% per centum in the case of Puerto Kico, the Virgin Islands, and Guam. For the fiscal year ending June 30, 1959, the Federal share shall be determined pursuant to the provisions of section 521 as in effect prior to the enactment of the Social Security Amendments of 1958.

28 P. L. 86-624, sec. 30 (b) (1), amendea subsections (a), (b), and (c) of sec. 524 by striking out the words "continental United States (including Alaska)" and Inserting in lieu thereof "United States." This change is applicable in the case of promulgations or computations of Federal shares, allotment percentages, allotment ratios, and Federal percentages made after August 21, 1959.

Prior to the amendment by P. L. 86-624, supra, P. L. 86-70, sec. 32 (b) (3), amended subsections (a), (b), and (c) of sec. 524 by striking out "(excluding Alaska)" and inserting in lieu thereof "(including Alaska)," applicable in the case of promulgations of Federal shares, allotment percentages, allotment ratios, and Federal percentages, as the case may be, made after satisfactory data are available from the Department of Commerce for a full year on the per capita income of Alaska, and for this purpose such promulgations shall, before such data for the full period required by the applicable statutory provision as so amended are available from the Department of Commerce, be based on satisfactory data available from such Department for such one full year or, when such data for a 2-year period are available, for such 2 years.

a P. L. 86-70, sec. 32 (b) (1), amended sec. 524 (a), clause (B), by striking out "50 per centum in the case of Alaska and," which appeared after "shall be," applicable as indicated in footnote 28.

(c) The Federal share and the allotment percentage for each State shall be promulgated by the Secretary between July 1 and August 31 of each even-numbered year, on the basis of the average per capita income of each State and of the United States32 for the three most recent calendar years for which satisfactory data are available from the Department of Commerce. Such promulgation shall be conclusive for each of the two fiscal years in the period beginning July 1 next succeeding such promulgation: Provided, That the Secretary shall promulgate such Federal shares and allotment percentages as soon as possible after the enactment of the Social Security Amendments of 1958, which promulgation shall be conclusive for each of the 3 fiscal years in the period ending June 30,1961.

(d) For purposes of this section, the term "United States" means the fifty States and the District of Columbia.33

(e) Promulgations made before satisfactory data are available from the Department of Commerce for a full year on the per capita income of Alaska shall prescribe a Federal share for Alaska of 50 per centum and, for purposes of such promulgations, Alaska shall not be included as part of the "United States." Promulgations made thereafter but before per capita income data for Alaska for a full three-year period are available from the Department of Commerce shall be based on satisfactory data available therefrom for Alska for such one full year or, when such data are available for a two-year period, for such two years.34

Reallotment

Sec. 525. The amount of any allotment to a State under section 522 for any fiscal year which the State certifies to the Secretary will not be required for carrying out the State plan developed as provided in such section shall be available for reallotment from time to time, on such dates as the Secretary may fix, to other States which the Secretary determines (1) have need in carrying out their State plans so developed for sums in excess of those previously allotted to them under that section and (2) will be able to use such excess amounts during such fiscal year. Such reallotments shall be made on the basis of the State plans so developed, after taking into consideration the population under the age of twenty-one, and the per capita income of each such State as compared with the population under the age of twentyone, and the per capita income of all such States with respect to which such a determination by the Secretary has been made. Any amount so reallotted to a State shall be deemed part of its allotment under section 522.

"See footnote 28.

31 P. L. 86-70, sec. 32 b) (2), amended sec. 524 (b), clause (2). by striking out "50 per centum in the case of Alaska and," which appeared after "shall be, applicable as in the third sentence of footnote 28.

32 See footnote 28.

33P. L. 86-624, sec. 30 (b) (2), added new subsections (d) and (e) to sec. 524, applicable in the case of promulgations or computations of Federal shares, allotment percentages, allotment ratios, and Federal percentages made after August 21,1959.

** See footnote 33.

Research or Demonstration Projects85

Sec. 526. (a) There are hereby authorized to be appropriated for each fiscal year such sums as the Congress may determine for grants by the Secretary to public or other nonprofit institutions of higher learning, and to public or other nonprofit agencies and organizations engaged in research or child welfare activities, for special research or demonstration projects in the field of child welfare which are of regional or national significance and for special projects for the demonstration of new methods or facilities which show promise of substantial contribution to the advancement of child welfare.

(b) Payments of grants for special projects under this section may be made in advance or by way of reimbursement, and in such installments, as the Secretary may determine; and shall be made on such conditions as the Secretary finds necessary to carry out the purposes of the grants.

Part 4—Vocational Rehabilitation

[Note.—This part has been supplanted by the Vocational Rehabilitation Act, 29 U. S. C, chap. 4J

Part 5—Administration

Sec. 541. (a) [Executed. Authorized appropriation for administrative expenses of the Federal Security Agency under this title for the fiscal year ending June 30, 1947.J

(b) The Secretary of Health, Education, and Welfare shall make such studies and investigations as will promote the efficient administration of this title, except section 531.

TITLE VI—PUBLIC HEALTH WORK

[Note.—This title has been repealed by the Public Health Service Act, approved July 1, 1944 (42 U. S. C., Chap. 6A). See section 314 of that Act (42 U. S. C. 246) for the new provisions on the subject matter formerly included under this title.]

85 P. L. 86-778, sec. 707 (b) (3), added new section 626, effective only with respect to fiscal years beginning after June 30,1960.

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