TITLE I- GRANTS TO STATES FOR OLD-AGE ASSISTANCE
APPROPRIATION
SECTION 1. For the purpose of enabling each State to furnish financial
assistance, as far as practicable under the conditions in such State, to
aged needy individuals, there is hereby authorized to be appropriated for
the fiscal year ended June 30, 1936, the sum of $49,750,000, and there is
hereby authorized to be appropriated for each fiscal year thereafter a sum
sufficient to carry out the purposes of this title. The sums made available
under this section shall be used for making payments to States which have
submitted, and had approved by the Social Security Board established by
Title VII (hereinafter referred to as the Board ), State plans for old-age
assistance.
STATE OLD-AGE ASSISTANCE PLANS
SEC. 2. (a) A State plan for old-age assistance must (1) provide that
it shall be in effect in all political subdivisions of the State, and, if
administered by them, be mandatory upon them; (2) provide for financial
participation by the State; (3) either provide for the establishment or
designation of a single State agency to administer the plan, or provide
for the establishment or designation of a single State agency to supervise
the administration of the plan; (4) provide for granting to any individual,
whose claim for old-age assistance is denied, an opportunity for a fair
hearing before such State agency; (5) provide such methods of administration
(other than those relating to selection, tenure of office, and compensation
of personnel) as are found by the Board to be necessary for the efficient
operation of the plan; (6) provide that the State agency will make such
reports, in such form and containing such information, as the Board may
from time to time require, and comply with such provisions as the Board
may from time to time find necessary to assure the correctness and verification
of such reports; and (7) provide that, if the State or any of its political
subdivisions collects from the estate of any recipient of old-age assistance
any amount with respect to old-age assistance furnished him under the plan,
one- half of the net amount so collected shall be promptly paid to the United
States. Any payment so made shall be deposited in the Treasury to the credit
of the appropriation for the purposes of this title. (b) The Board shall
approve any plan which fulfills the conditions specified in subsection (a),
except that it shall not approve any plan which imposes, as a condition
of eligibility for old-age assistance under the plan- (1) An age requirement
of more than sixty-five years, except that the plan may impose, effective
until January 1, 1940, an age requirement of as much as seventy years; or
(2) Any residence requirement which excludes any resident of the State who
has resided therein five years during the nine years immediately preceding
the application for old-age assistance and has resided therein continuously
for one year immediately preceding the application; or (3) Any citizenship
requirement which excludes any citizen of the United States.
PAYMENT TO STATES
SEC. 3. (a) From the sums appropriated therefor, the Secretary of the
Treasury shall pay to each State which has an approved plan for old-age
assistance, for each quarter, beginning with the quarter commencing July
1, 1935, (1) an amount, which shall be used exclusively as old-age assistance,
equal to one-half of the total of the sums expended during such quarter
as old-age assistance under the State plan with respect to each individual
who at the time of such expenditure is sixty-five years of age or older
and is not an inmate of a public institution, not counting so much of such
expenditure with respect to any individual for any month as exceeds $30,
and (2) 5 per centum of such amount, which shall be used for paying the
costs of administering the State plan or for old-age assistance, or both,
and for no other purpose: Provided, That the State plan, in order to be
approved by the Board, need not provide for financial participation before
July 1, 1937, by the State, in the case of any State which the Board, upon
application by the State and after reasonable notice and opportunity for
hearing to the State, finds is prevented by its constitution from providing
such financial participation.
(b) The method of computing and paying such amounts shall be as follows:
(1) The Board shall, prior to the beginning of each quarter, estimate the
amount to be paid to the State for such quarter under the provisions of
clause (1) 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 clause, 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, (B)
records showing the number of aged individuals in the State, and (C) such
other investigation as the Board may find necessary. (2) The Board shall
then certify to the Secretary of the Treasury the amount so estimated by
the Board, reduced or increased, as the case may be, by any sum by which
it finds that its estimate for any prior quarter was greater or less than
the amount which should have been paid to the State under clause (1) of
subsection (a) 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 Board for such prior quarter. (3)
The Secretary of the Treasury shall thereupon, through the Division of Disbursement
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 Board,
the amount so certified, increased by 5 per centum.
OPERATION OF STATE PLANS
SEC. 4. In the case of any State plan for old-age assistance which has
been approved by the Board, if the Board, 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 age, residence, or citizenship requirement prohibited by section 2 (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 2 (a) to
be included in the plan; the Board shall notify such State agency that further
payments will not be made to the State until the Board is satisfied that
such prohibited requirement is no longer so imposed, and that there is no
longer any such failure to comply. Until it is so satisfied it shall make
no further certification to the Secretary of the Treasury with respect to
such State.
ADMINISTRATION
SEC. 5. There is hereby authorized to be appropriated for the fiscal
year ending June 30, 1936, the sum of $250,000, for all necessary expenses
of the Board in administering the provisions of this title.
DEFINITION
SEC. 6. When used in this title the term old age assistance means money
payments to aged individuals.
TITLE II-FEDERAL OLD-AGE BENEFITS OLD-AGE RESERVE ACCOUNT
Section 201. (a) There is hereby created an account in the Treasury of
the United States to be known as the Old-Age Reserve Account hereinafter
in this title called the Account. There is hereby authorized to be appropriated
to the Account for each fiscal year, beginning with the fiscal year ending
June 30, 1937, an amount sufficient as an annual premium to provide for
the payments required under this title, such amount to be determined on
a reserve basis in accordance with accepted actuarial principles, and based
upon such tables of mortality as the Secretary of the Treasury shall from
time to time adopt, and upon an interest rate of 3 per centum per annum
compounded annually. The Secretary of the Treasury shall submit annually
to the Bureau of the Budget an estimate of the appropriations to be made
to the Account.
(b) It shall be the duty of the Secretary of the Treasury to invest such
portion of the amounts credited to the Account as is not, in his judgment,
required to meet current withdrawals. Such investment may be made only in
interest-bearing obligations of the United States or in obligations guaranteed
as to both principal and interest by the United States. For such purpose
such obligations may be acquired (1) on original issue at par, or (2) by
purchase of outstanding obligations at the market price. The purposes for
which obligations of the United States may be issued under the Second Liberty
Bond Act, as amended, are hereby extended to authorize the issuance at par
of special obligations exclusively to the Account. Such special obligations
shall bear interest at the rate of 3 per centum per annum. Obligations other
than such special obligations may be acquired for the Account only on such
terms as to provide an investment yield of not less than 3 per centum per
annum.
(c) Any obligations acquired by the Account (except special obligations
issued exclusively to the Account) may be sold at the market price, and
such special obligations may be redeemed at par plus accrued interest.
(d) The interest on, and the proceeds from the sale or redemption of,
any obligations held in the Account shall be credited to and form a part
of the Account.
(e) All amounts credited to the Account shall be available for making
payments required under this title.
(f) The Secretary of the Treasury shall include in his annual report
the actuarial status of the Account.
OLD-AGE BENEFIT PAYMENTS
SEC. 202. (a) Every qualified individual (as defined in section 210)
shall be entitled to receive, with respect to the period beginning on the
date he attains the age of sixty-five, or on January 1, 1942, whichever
is the later, and ending on the date of his death, an old-age benefit (payable
as nearly as practicable in equal monthly installments) as follows: (1)
If the total wages (as defined in section 210) determined by the Board to
have been paid to him, with respect to employment (as defined in section
210) after December 31, 1936, and before he attained the age of sixty- five,
were not more than $3,000, the old-age benefit shall be at a monthly rate
of one-half of 1 per centum of such total wages; (2) If such total wages
were more than $3,000, the old-age benefit shall be at a monthly rate equal
to the sum of the following: (A) One-half of 1 per centum of $3,000; plus
(B) One-twelfth of 1 per centum of the amount by which such total wages
exceeded $3,000 and did not exceed $45,000; plus (C) One-twenty-fourth of
1 per centum of the amount by which such total wages exceeded $45,000.
(b) In no case shall the monthly rate computed under subsection (a) exceed
$85.
(c) If the Board finds at any time that more or less than the correct
amount has theretofore been paid to any individual under this section, then,
under regulations made by the Board, proper adjustments shall be made in
connection with subsequent payments under this section to the same individual.
(d) Whenever the Board finds that any qualified individual has received
wages with respect to regular employment after he attained the age of sixty-five,
the old-age benefit payable to such individual shall be reduced, for each
calendar month in any part of which such regular employment occurred, by
an amount equal to one month s benefit. Such reduction shall be made, under
regulations prescribed by the Board, by deductions from one or more payments
of old-age benefit to such individual.
PAYMENTS UPON DEATH
SEC. 203. (a) If any individual dies before attaining the age of sixty-five,
there shall be paid to his estate an amount equal to 3 ´ per centum
of the total wages determined by the Board to have been paid to him, with
respect to employment after December 31, 1936.
(b) If the Board finds that the correct amount of the old-age benefit
payable to a qualified individual during his life under section 202 was
less than 3 ´ per centum of the total wages by which such old-age
benefit was measurable, then there shall be paid to his estate a sum equal
to the amount, if any, by which such 3 ´ per centum exceeds the amount
(whether more or less than the correct amount) paid to him during his life
as old-age benefit. (c) If the Board finds that the total amount paid to
a qualified individual under an old-age benefit during his life was less
than the correct amount to which he was entitled under section 202, and
that the correct amount of such old-age benefit was 3 ´ per centum
or more of the total wages by which such old-age benefit was measurable,
then there shall be paid to his estate a sum equal to the amount, if any,
by which the correct amount of the old- age benefit exceeds the amount which
was so paid to him during his life.
PAYMENTS TO AGED INDIVIDUALS NOT QUALIFIED FOR BENEFITS
SEC. 204. (a) There shall be paid in a lump sum to any individual who,
upon attaining the age of sixty-five, is not a qualified individual, an
amount equal to 3 ´ per centum of the total wages determined by the
Board to have been paid to him, with respect to employment after December
31, 1936, and before he attained the age of sixty-five.
(b) After any individual becomes entitled to any payment under subsection
(a), no other payment shall be made under this title in any manner measured
by wages paid to him, except that any part of any payment under subsection
(a) which is not paid to him before his death shall be paid to his estate.
AMOUNTS OF $500 OR LESS PAYABLE TO ESTATES
SEC. 205. If any amount payable to an estate under section 203 or 204
is $500 or less, such amount may, under regulations prescribed by the Board,
be paid to the persons found by the Board to be entitled thereto under the
law of the State in which the deceased was domiciled, without the necessity
of compliance with the requirements of law with respect to the administration
of such estate.
OVERPAYMENTS DURING LIFE
SEC. 206. If the Board finds that the total amount paid to a qualified
individual under an old-age benefit during his life was more than the correct
amount to which he was entitled under section 202, and was 3 ´ per
centum or more of the total wages by which such old-age benefit was measurable,
then upon his death there shall be repaid to the United States by his estate
the amount, if any, by which such total amount paid to him during his life
exceeds whichever of the following is the greater: (1) Such 3 ´ per
centum, or (2) the correct amount to which he was entitled under section
202.
METHOD OF MAKING PAYMENTS
SEC. 207. The Board shall from time to time certify to the Secretary
of the Treasury the name and address of each person entitled to receive
a payment under this title, the amount of such payment, and the time at
which it should be made, and the Secretary of the Treasury through the Division
of Disbursement of the Treasury Department, and prior to audit or settlement
by the General Accounting Office, shall make payment in accordance with
the certification by the Board.
ASSIGNMENT
SEC. 208. The right of any person to any future payment under this title
shall not be transferable or assignable, at law or in equity, and none of
the moneys paid or payable or rights existing under this title shall be
subject to execution, levy, attachment, garnishment, or other legal process,
or to the operation of any bankruptcy or insolvency law.
PENALTIES
SEC. 209. Whoever in any application for any payment under this title
makes any false statement as to any material fact, knowing such statement
to be false, shall be fined not more than $1,000 or imprisoned for not more
than one year, or both.
DEFINITIONS
SEC. 210. When used in this title-- (a) The term wages means all remuneration
for employment, including the cash value of all remuneration paid in any
medium other than cash; except that such term shall not include that part
of the remuneration which, after remuneration equal to $3,000 has been paid
to an individual by an employer with respect to employment during any calendar
year, is paid to such employer with respect to employment during such calendar
year.
(b) The term employment means any service, of whatever nature, performed
within the United States by an employee for his employer, except- (1) Agricultural
labor; (2) Domestic service in a private home; (3) Casual labor not in the
course of the employer s trade or business; (4) Service performed as an
officer or member of the crew of a vessel documented under the laws of the
United States or of any foreign country; (5) Service performed in the employ
of the United States Government or of an instrumentality of the United States;
(6) Service performed in the employ of a State, a political subdivision
thereof, or an instrumentality of one or more States or political subdivisions;
(7) Service performed in the employ of a corporation, community chest, fund,
or foundation, organized and operated exclusively for religious, charitable,
scientific, literary, or educational purposes, or for the prevention of
cruelty to children or animals, no part of the net earnings of which inures
to the benefit of any private shareholder or individual.
(c) The term qualified individual means any individual with respect to
whom it appears to the satisfaction of the Board that- (1) He is at least
sixty-five years of age; and (2) The total amount of wages paid to him,
with respect to employment after December 31, 1936, and before he attained
the age of sixty-five, was not less than $2,000; and (3) Wages were paid
to him, with respect to employment on some five days after December 31,
1936, and before he attained the age of sixty-five, each day being in a
different calendar year.
TITLE III-GRANTS TO STATES FOR UNEMPLOYMENT COMPENSATION ADMINISTRATION
APPROPRIATION
SECTION 301. For the purpose of assisting the States in the administration
of their unemployment compensation laws, there is hereby authorized to be
appropriated, for the fiscal year ending June 30, 1936, the sum of $4,000,000,
and for each fiscal year thereafter the sum of $49,000,000, to be used as
hereinafter provided.
PAYMENTS TO STATES
SEC. 302. (a) The Board shall from time to time certify to the Secretary
of the Treasury for payment to each State which has an unemployment compensation
law approved by the Board under Title IX, such amounts as the Board determines
to be necessary for the proper administration of such law during the fiscal
year in which such payment is to be made. The Board s determination shall
be based on (1) the population of the State; (2) an estimate of the number
of persons covered by the State law and of the cost of proper administration
of such law; and (3) such other factors as the Board finds relevant. The
Board shall not certify for payment under this section in any fiscal year
a total amount in excess of the amount appropriated therefor for such fiscal
year.
(b) Out of the sums appropriated therefor, the Secretary of the Treasury
shall, upon receiving a certification under subsection (a), pay, through
the Division of Disbursement of the Treasury Department and prior to audit
or settlement by the General Accounting Office, to the State agency charged
with the administration of such law the amount so certified.
PROVISIONS OF STATE LAWS
SEC. 303. (a) The Board shall make no certification for payment to any
State unless it finds that the law of such State, approved by the Board
under Title IX, includes provisions for- (1) Such methods of administration
(other than those relating to selection, tenure of office, and compensation
of personnel) as are found by the Board to be reasonably calculated to insure
full payment of unemployment compensation when due; and (2) Payment of unemployment
compensation solely through public employment offices in the State or such
other agencies as the Board may approve; and (3) Opportunity for a fair
hearing, before an impartial tribunal, for all individuals whose claims
for unemployment compensation are denied; and (4) The payment of all money
received in the unemployment fund of such State, immediately upon such receipt,
to the Secretary of the Treasury to the credit of the Unemployment Trust
Fund established by section 904; and (5) Expenditure of all money requisitioned
by the State agency from the Unemployment Trust Fund, in the payment of
unemployment compensation, exclusive of expenses of admin- istration; and
(6) The making of such reports, in such form and containing such information,
as the Board may from time to time require, and compliance with such provisions
as the Board may from time to time find necessary to assure the correctness
and verification of such reports; and (7) Making available upon request
to any agency of the United States charged with the administration of public
works or assistance through public employment, the name, address, ordinary
occupation, and employment status of each recipient of unemployment compensation,
and a statement of such recipient s rights to further compensation under
such law.
(b) Whenever the Board, after reasonable notice and opportunity for hearing
to the State agency charged with the administration of the State law finds
that in the administration of the law there is-- (1) a denial, in a substantial
number of cases, of unemployment compensation to individuals entitled thereto
under such law; or (2) a failure to comply substantially with any provision
specified in subsection (a); the Board shall notify such State agency that
further payments will not be made to the State until the Board is satisfied
that there is no longer any such denial or failure to comply. Until it is
so satisfied it shall make no further certification to the Secretary of
the Treasury with respect to such State.
TITLE IV-GRANTS TO STATES FOR AID TO DEPENDENT CHILDREN
APPROPRIATION
SECTION 401. For the purpose of enabling each State to furnish financial
assistance, as far as practicable under the conditions in such State, to
needy dependent children, there is hereby authorized to be appropriated
for the fiscal year ending June 30, 1936, the sum of $24,750,000, and there
is hereby authorized to be appropriated for each fiscal year thereafter
a sum sufficient to carry out the purposes of this title. The sums made
available under this section shall be used for making payments to States
which have submitted, and had approved by the Board, State plans for aid
to dependent children.
STATE PLANS FOR AID TO DEPENDENT CHILDREN
SEC. 402. (a) A State plan for aid to dependent children must (1) provide
that it shall be in effect in all political subdivisions of the State, and,
if administered by them, be mandatory upon them; (2) provide for financial
participation by the State; (3) either provide for the establishment or
designation of a single State agency to administer the plan, or provide
for the establishment or designation of a single State agency to supervise
the administration of the plan; (4) provide for granting to any individual,
whose claim with respect to aid to a dependent child is denied, an opportunity
for a fair hearing before such State agency; (5) provide such methods of
administration (other than those relating to selection, tenure of office,
and compensation of personnel) as are found by the Board to be necessary
for the 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 Board may from time to time require, and comply with such provisions
as the Board may from time to time find necessary to assure the correctness
and verification of such reports.
(b) The Board shall approve any plan which fulfills the conditions specified
in subsection (a) except that it 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 the State within one
year immediately preceding the application, if its mother 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 July 1,
1935, an amount, which shall be used exclusively for carrying out the State
plan, equal to one-third of the total of the sums expended during such quarter
under such plan, not counting so much of such expenditure with respect to
any dependent child for any month as exceeds $18, or if there is more than
one dependent child in the same home, as exceeds $18 for any month with
respect to one such dependent child and $12 for such month with respect
to each of the other dependent children.
(b) The method of computing and paying such amounts shall be as follows:
(1) The Board 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 two-thirds
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 Board may find necessary. (2) The Board shall then certify to the
Secretary of the Treasury the amount so estimated by the Board, reduced
or increased, as the case may be, by any sum by which it finds that its
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 Board for such
prior quarter. (3) The Secretary of the Treasury shall thereupon, through
the Division of Disbursement 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 Board, 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 Board, if the Board,
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 Board shall
notify such State agency that further payments will not be made to the State
until the Board is satisfied that such prohibited requirement is no longer
so imposed, and that there is no longer any such failure to comply. Until
it is so satisfied it shall make no further certification to the Secretary
of the Treasury with respect to such State.
ADMINISTRATION
SEC. 405. There is hereby authorized to be appropriated for the fiscal
year ending June 30, 1936, the sum of $250,000 for all necessary expenses
of the Board in administering the provisions of this title. DEFINITIONS
SEC. 406. When used in this title- (a) The term dependent child means
a child under the age of sixteen 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, or aunt, 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 a dependent child or dependent children.
TITLE V- GRANTS TO STATES FOR MATERNAL AND CHILD WELFARE
PART 1-MATERNAL AND CHILD HEALTH SERVICES APPROPRIATION SECTION 501.
For the purpose of enabling each State to extend and improve, as far as
practicable under the conditions in such State, services for promoting the
health of mothers and children, especially in rural areas and in areas suffering
from severe economic distress, there is hereby authorized to be appropriated
for each fiscal year, beginning with the fiscal year ending June 30, 1936,
the sum of $3,800,000. The sums made available under this section shall
be used for making payments to States which have submitted, and had approved
by the Chief of the Children s Bureau, State plans for such services.
ALLOTMENTS TO STATES
SEC. 502. (a) Out of the sums appropriated pursuant to section 501 for
each fiscal year the Secretary of Labor shall allot to each State $20,000,
and such part of $1,800,000 as he finds that the number of live births in
such State bore to the total number of live births in the United States,
in the latest calendar year for which the Bureau of the Census has available
statistics.
(b) Out of the sums appropriated pursuant to section 501 for each fiscal
year the Secretary of Labor shall allot to the States $980,000 (in addition
to the allotments made under subsection (a)), according to the financial
need of each State for assistance in carrying out its State plan, as determined
by him after taking into consideration the number of live births in such
State.
(c) The amount of any allotment to a State under subsection (a) for any
fiscal year remaining unpaid to such State at the end of such fiscal year
shall be available for payment to such State under section 504 until the
end of the second succeeding fiscal year. No payment to a State under section
504 shall be made out of its allotment for any fiscal year until its allotment
for the preceding fiscal year has been exhausted or has ceased to be available.
APPROVAL OF STATE PLANS
SEC. 503. (a) A State plan for maternal and child-health services must
(1) provide for financial participation by the State; (2) provide for the
administration of the plan by the State health agency or the supervision
of the administration of the plan by the State health agency; (3) provide
such methods of administration (other than those relating to selection,
tenure of office, and compensation of personnel) as are necessary for the
efficient operation of the plan; (4) provide that the State health agency
will make such reports, in such form and containing such information, as
the Secretary of Labor may from time to time require, and comply with such
provisions as he may from time to time find necessary to assure the correctness
and verification of such reports; (5) provide for the extension and improvement
of local maternal and child-health services administered by local child
health units; (6) provide for cooperation with medical, nursing, and welfare
groups and organizations; and (7) provide for the development of demonstration
services in needy areas and among groups in special need.
(b) The Chief of the Children s Bureau shall approve any plan which fulfills
the conditions specified in subsection (a) and shall thereupon notify the
Secretary of Labor and the State health agency of his approval.
PAYMENT TO STATES
SEC. 504. (a) From the sums appropriate therefor and the allotments available
under section 502 (a), the Secretary of the Treasury shall pay to each State
which has an approved plan for maternal and child-health services, for each
quarter beginning with the quarter commencing July 1935, an amount, which
shall be used exclusively for carrying out the State plan, equal to one-half
of the total sum expended during such quarter for carrying out such plan.
(b) The method of computing and paying such amounts shall be as follows:
(1) The Secretary of Labor shall, prior 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 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 investi gation
as he may find necessary. (2) The Secretary of Labor 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 Labor
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 Labor for such prior quarter. (3) The Secretary of the Treasury
shall thereupon, through the Division of Disbursement 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 Labor, the amount
so certified.
(c) The Secretary of Labor shall from time to time certify to the Secretary
of the Treasury the amounts to be paid to the States from the allotments
available under section 502 (b), and the Secretary of the Treasury shall,
through the Division of Disbursement 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 Labor.
OPERATION OF STATE PLANS
SEC. 505. In the case of any State plan for maternal and child-health
services which has been approved by the Chief of the Children s Bureau,
if the Secretary of Labor, 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 503 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.
PART 2-SERVICES FOR CRIPPLED CHILDREN APPROPRIATION SEC. 511. For the
purpose of enabling each State to extend and improve (especially in rural
areas and in areas suffering from severe economic distress), as far as practicable
under the conditions in such State, services for locating crippled children
and for providing medical, surgical, corrective, and other services and
care, and facilities for diagnosis, hospitalization, and aftercare, for
children who are crippled or who are suffering from conditions which lead
to crippling, there is hereby authorized to be appropriated for each fiscal
year beginning with the fiscal year ending June 30, 1936, the sum of $2,850,000.
The sums made available under this section shall be used for making payments
to States which have submitted, and had approved by the Chief of the Children
s Bureau, State plans for such services.
ALLOTMENTS TO STATES
SEC. 512. (a) Out of the sums appropriated pursuant to section 511 for
each fiscal year the Secretary of Labor shall allot to each State $20,000,
and the remainder to the States according to the need of each State as determined
by him after taking into consideration the number of crippled children in
such State in need of the services referred to section 511 and the cost
of furnishing such service to them
(b) The amount of any allotment to a State under subsection (a) for any
fiscal year remaining unpaid to such State at the end of such fiscal year
shall be available for payment to such State under section 514 until the
end of the second succeeding fiscal year. No payment to a State under section
514 shall be made out of its allotment for any fiscal year until its allotment
for the preceding fiscal year has been exhausted or has ceased to be available.
APPROVAL OF STATE PLANS
SEC. 513. (a) A State plan for services for crippled children must (1)
provide for financial participation by the State; (2) provide for the administration
of the plan by a State agency or the supervision of the administration of
the plan by a State agency; (3) provide such methods of administration (other
than those relating to selection, tenure of office, and compensation of
personnel) as are necessary for the efficient operation of the plan; (4)
provide that the State agency will make such reports, in such form and containing
such information, as the Secretary of Labor may from time to time require,
and comply with such provisions as he may from time to time find necessary
to assure the correctness and verification of such reports; (5) provide
for carrying out the purposes specified in section 511; and (6) provide
for cooperation with medical, health, nursing, and welfare groups and organizations
and with any agency in such State charged with administering State laws
providing for vocational rehabilitation of physically handicapped children.
(b) The Chief of the Children s Bureau shall approve any plan which fulfills
the conditions specified in subsection (a) and shall thereupon notify the
Secretary of Labor and the State agency of his approval.
PAYMENT TO STATES
SEC. 514. (a) From the sums appropriated therefor and the allotments
available under section 512, the Secretary of the Treasury shall pay to
each State which has an approved plan for services for crippled children,
for each quarter, beginning the quarter commencing July 1, 1935, an amount
which shall be used exclusively for carrying out the State plan, equal to
one-half of the total sum expended during such quarter for carrying out
such plan. (b) The method of computing and paying such amounts shall be
as follows: (1) The Secretary of Labor shall, prior 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 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 Labor
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 Labor 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 Labor for such prior quarter. (3) The Secretary of the
Treasury shall thereupon, through the Division of Disbursement 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 Labor,
the amount so certified.
OPERATION OF STATE PLANS
SEC. 515. In the case of any State plan for services for crippled children
which has been approved by the Chief of the Children s Bureau, if the Secretary
of Labor, 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 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.
PART 3- CHILD WELFARE SERVICES
SEC. 521. (a) For the purpose of enabling the United States, through
the Children s Bureau, to cooperate with State public-welfare agencies establishing,
extending, and strengthening, especially in predominantly rural areas, public-welfare
services (hereinafter in this section 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 year ending
June 30, 1936, the sum of $1,500,000. Such amount shall be allotted by the
Secretary of Labor for use by cooperating State public- welfare agencies
on the basis of plans developed jointly by the State agency and the Children
s Bureau, to each State, $10,000, and the remainder to each State on the
basis of such plans, not to exceed such part of the remainder as the rural
population of such State bears to the total rural population of the United
States. The amount so allotted shall be expended for payment of part of
the cost of district, county or other local child- welfare services in areas
predominantly rural, and for developing State services for the encouragement
and assist- ance of adequate methods of community child-welfare organization
in areas predominantly rural and other areas of special need. The amount
of any allotment to a State under this section for any fiscal year remaining
unpaid to such State at the end of such fiscal year shall be available for
payment to such State under this section until the end of the second succeeding
fiscal year. No payment to a State under this section shall be made out
of its allotment for any fiscal year until its allotment for the preceding
fiscal year has been exhausted or has ceased to be available.
(b) From the sums appropriated therefor and the allotments available
under subsection (a) the Secretary of Labor shall from time to time certify
to the Secretary of the Treasury the amounts to be paid to the States, and
the Secretary of the Treasury shall, through the Division of Disbursement
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 Labor.
PART 4- VOCATIONAL REHABILITATION
SEC. 531. (a) In order to enable the United States to cooperate with
the States and Hawaii in extending and strengthening their programs of vocational
rehabilitation of the physically disabled, and to continue to carry out
the provisions and purposes of the Act entitled An Act to provide for the
promotion of vocational rehabilitation of persons disabled in industry or
otherwise and their return to civil employment , approved June 2, 1920,
as amended (U.S.C., title 29, ch. 4; U.S.C., Supp. VII title 29, secs. 31,
32, 34, 35, 37, 39, and 40), there is hereby authorized to be appropriated
for the fiscal years ending June 30, 1936, and June 30, 1937, the sum of
$841,000 for each such fiscal year in addition to the amount of the existing
authorization, and for each fiscal year thereafter the sum of $1,938,000.
Of the sums appropriated pursuant to such authorization for each fiscal
year, $5,000 shall be apportioned to the Territory of Hawaii and the remainder
shall be apportioned among the several States in the manner provided in
such Act of June 2, 1920, as amended.
(b) For the administration of such Act of June 2, 1920, as amended, by
the Federal agency authorized to administer it, there is hereby authorized
to be appropriated for the fiscal years ending June 30, 1936, and June 30,
1937, the sum of $22,000 for each such fiscal year in addition to the amount
of the existing authorization, and for each fiscal year thereafter the sum
of $102,000.
PART 5- ADMINISTRATION
SEC. 541. (a) There is hereby authorized to be appropriated for the fiscal
year ending June 30, 1936, the sum of $425,000, for all necessary expenses
of the Children s Bureau in administering the provisions of this title,
except section 531.
(b) The Children s Bureau shall make such studies and investigations
as will promote the efficient administration of this title, except section
531.
(c) The Secretary of Labor shall include in his annual report to Congress
a full account of the administration of this title, except section 531.
TITLE VI- PUBLIC HEALTH WORK
APPROPRIATION
SECTION 601. For the purpose of assisting States, counties, health districts,
and other political subdivisions of the States in establishing and maintaining
adequate public-health services, including the training of personnel for
State and local health work, there is hereby authorized to be appropriated
for each fiscal year, beginning with the fiscal year ending June 30,1936,
the sum of $8,000,000 to be used as hereinafter provided.
STATE AND LOCAL PUBLIC HEALTH SERVICES
SEC. 602. (a) The Surgeon General of the Public Health Service, with
the approval of the Secretary of the Treasury, shall, at the beginning of
each fiscal year, allot to the States the total of (1) the amount appropriated
for such year pursuant to section 601; and (2) the amounts of the allotments
under this section for the preceding fiscal year remaining unpaid to the
States at the end of such fiscal year. The amounts of such allotments shall
be determined on the basis of (1) the population; (2) the special health
problems; and (3) the financial needs; of the respective States. Upon making
such allotments the Surgeon General of the Public Health Service shall certify
the amounts thereof to the Secretary of the Treasury.
(b) The amount of an allotment to any State under subsection (a) for
any fiscal year, remaining unpaid at the end of such fiscal year, shall
be available for allotment to States under subsection (a) for the succeeding
fiscal year, in addition to the amount appropriated for such year. (c) Prior
to the beginning of each quarter of the fiscal year, the Surgeon General
of the Public Health Service shall, with the approval of the Secretary of
the Treasury, determine in accordance with rules and regulations previously
prescribed by such Surgeon General after consultation with a conference
of the State and Territorial health authorities, the amount to be paid to
each State for such quarter from the allotment to such State, and shall
certify the amount so determined to the Secretary of the Treasury. Upon
receipt of such certification, the Secretary of the Treasury shall, through
the Division of Disbursement of the Treasury Department and prior to audit
or settlement by the General Accounting Office, pay in accordance with such
certification.
(d) The moneys so paid to any State shall be expended solely in carrying
out the purposes specified in section 601, and in accordance with plans
presented by the health authority of such State and approved by the Surgeon
General of the Public Health Service.
INVESTIGATIONS
SEC. 603. (a) There is hereby authorized to be appropriated for each
fiscal year, beginning with the fiscal year ending June 30, 1936, the sum
of $2,000,000 for expenditure by the Public Health Service for investigation
of disease and problems of sanitation (including the printing and binding
of the findings of such investigations), and f or the pay and allowances
and traveling expenses of personnel of the Public Health Service, including
commissioned officers, engaged in such investigations or detailed to cooperate
with the health authorities of any State in carrying out the purposes specified
in section 601: Provided, That no personnel of the Public Health Service
shall be detailed to cooperate with the health authorities of any State
except at the request of the proper authorities of such State.
(b) The personnel of the Public Health Service paid from any appropriation
not made pursuant to subsection (a) may be detailed to assist in carrying
out the purposes of this title. The appropriation from which they are paid
shall be reimbursed from the appropriation made pursuant to subsection (a)
to the extent of their salaries and allowances for services performed while
so detailed.
(c) The Secretary of the Treasury shall include in his annual report
to Congress a full account of the administration of this title.
TITLE VIII- TAXES WITH RESPECT TO EMPLOYMENT
INCOME TAX ON EMPLOYEES
SECTION 801. In addition to other taxes, there shall be levied, collected,
and paid upon the income of every individual a tax equal to the following
percentages of the wages (as defined in section 811) received by him after
December 31, 1936, with respect to employment (as defined in section 811)
after such date: (1) With respect to employment during the calendar years
1937, 1938, and 1939, the rate shall be 1 per centum. (2) With respect to
employment during the calendar years 1940, 1941, and 1942, the rate shall
1 ´ per centum. (3) With respect to employment during the calendar
years 1943, 1944, and 1945, the rate shall be 2 per centum. (4) With respect
to employment during the calendar years 1946, 1947, and 1948, the rate shall
be 2 ´ per centum. (5) With respect to employment after December 31,
1948, the rate shall be 3 per centum.
DEDUCTION OF TAX FROM WAGES
SEC. 802. (a) The tax imposed by section 801 shall be collected by the
employer of the taxpayer by deducting the amount of the tax from the wages
as and when paid. Every employer required so to deduct the tax is hereby
made liable for the payment of such tax, and is hereby indemnified against
the claims and demands of any person for the amount of any such payment
made by such employer.
(b) If more or less than the correct amount of tax imposed by section
801 is paid with respect to any wage payment, then, under regulations made
under this title, proper adjustments, with respect both to the tax and the
amount to be deducted, shall be made, without interest, in connection with
subsequent wage payments to the same individual by the same employer.
DEDUCTIBILITY FROM INCOME TAX
SEC. 803. For the purposes of the income tax imposed by Title I of the
Revenue Act of 1934 or by any Act of Congress in substitution therefor,
the tax imposed by section 801 shall not be allowed as a deduction to the
taxpayer in computing his net income for the year in which such tax is deducted
from his wages.
EXCISE TAX ON EMPLOYERS
SEC. 804. In addition to other taxes, every employer shall pay an excise
tax, with respect to having individuals in his employ, equal to the following
percentages of the wages (as defined in section 811) paid by him after December
31, 1936, with respect to employment (as defined in section 811) after such
date: (1) With respect to employment during the calendar years 1937, 1938,
and 1939, the rate shall be 1 per centum. (2) With respect to employment
during the calendar years 1940, 1941, and 1942, the rate shall be 1 ´
per centum. (3) With respect to employment during the calendar years 1943,
1944, and 1945, the rate shall be 2 per centum. (4) With respect to employment
during the calendar years 1946, 1947, and 1948, the rate shall be 2 ´
per centum. (5) With respect to employment after December 31, 1948, the
rate shall be 3 per centum.
ADJUSTMENT OF EMPLOYERS TAX
SEC. 805. If more or less than the correct amount of tax imposed by section
804 is paid with respect to any wage payment, then, under regulations made
under this title, proper adjustments with respect the tax shall be made,
without interest, in connection with subsequent wage payments to the same
individual by the same employer.
REFUNDS AND DEFICIENCIES
SEC. 806. If more or less than the correct amount of tax imposed by section
801 or 804 is paid or deducted with respect to any wage payment and the
overpayment or underpayment of tax cannot be adjusted under section 802
(b) or 805 the amount of the overpayment shall be refunded and the amount
of the underpayment shall be collected in such manner and at such times
(subject to the statutes of limitations properly applicable thereto) as
may be prescribed by regulations made under this title.
COLLECTION AND PAYMENT OF TAXES
SEC. 807. (a) The taxes imposed by this title shall be collected by the
Bureau of Internal Revenue under the direction of the Secretary of the Treasury
and shall be paid into the Treasury of the United States as internal- revenue
collections. If the tax is not paid when due, there shall be added as part
of the tax interest (except in the case of adjustments made in accordance
with the provisions of sections 802 (b) and 805) at the rate of one-half
of 1 per centum per month from the date the tax became due until paid.
(b) Such taxes shall be collected and paid in such manner, at such times,
and under such conditions, not inconsistent with this title (either by making
and filing returns, or by stamps, coupons, tickets, books, or other reasonable
devices or methods necessary or helpful in securing a complete and proper
collection and payment of the tax or in securing proper identification of
the taxpayer), as may be prescribed by the Commissioner of Internal Revenue,
with the approval of the Secretary of the Treasury.
(c) All provisions of law, including penalties, applicable with respect
to any tax imposed by section 600 or section 800 of the Revenue Act of 1926
and the provisions of section 607 of the Revenue Act of 1934, shall, insofar
as applicable and not inconsistent with the provisions of this title, be
applicable with respect to the taxes imposed by this title.
(d) In the payment of any tax under this title a fractional part of a
cent shall be disregarded unless it amounts to one-half cent or more, in
which case it shall be increased to 1 cent.
RULES AND REGULATIONS
SEC. 808. The Commissioner of Internal Revenue, with the approval of
the Secretary of the Treasury, shall make and publish rules and regulations
for the enforcement of this title.
SALE OF STAMPS BY POSTMASTERS
SEC. 809. The Commissioner of Internal Revenue shall furnish to the Postmaster
General without prepayment a suitable quantity of stamps, coupons, tickets,
books, or other devices prescribed by the Commissioner under section 807
for the collection or payment of any tax imposed by this title, to be distributed
to, and kept on sale by, all post offices of the first and second classes,
and such post offices of the third and fourth classes as (1) are located
in county seats, or (2) are certified by the Secretary of the Treasury to
the Postmaster General as necessary to the proper administration of this
title. The Postmaster General may require each such postmaster to furnish
bond in such increased amount as he may from time to time determine, and
each such postmaster shall deposit the receipts from the sale of such stamps,
coupons, tickets, books, or other devices, to the credit of, and render
accounts to, the Postmaster General at such times and in such form as the
Postmaster General may by regulations prescribe. The Postmaster General
shall at least once a month transfer to the Treasury, as internal- revenue
collections all receipts so deposited together with a statement of the additional
expenditures in the District of Columbia and elsewhere incurred by the Post
Office Department in performing the duties imposed upon said Department
by this Act, and the Secretary of the Treasury is hereby authorized and
directed to advance from time to time to the credit of the Post Office Department
from appropriations made for the collection of the taxes imposed by this
title, such sums as may be required for such additional expenditures incurred
by the Post Office Department.
PENALTIES
SEC. 810. (a) Whoever buys, sells, offers for sale, uses, transfers,
takes or gives in exchange, or pledges or gives in pledge, except as authorized
in this title or in regulations made pursuant thereto, any stamp, coupon,
ticket, book, or other device, prescribed by the Commissioner of Internal
Revenue under section 807 for the collection or payment of any tax imposed
by this title, shall be fined not more than $1,000 or imprisoned for not
more than six months, or both.
(b) Whoever, with intent to defraud, alters, forges, makes, or counterfeits
any stamp, coupon, ticket, book, or other device prescribed by the Commissioner
of Internal Revenue under section 807 for the collection or payment of any
tax imposed by this title, or uses, sells, lends, or has in his possession
any such altered, forged, or counterfeited stamp, coupon, ticket, book,
or other device, or makes, uses, sells, or has in his possession any ma-
terial in imitation of the material used in the manufacture of such stamp,
coupon, ticket, book, or other device, shall be fined not more than $5,000
or imprisoned not more than five years, or both.
DEFINITIONS
SEC. 811. When used in this title- (a) The term wages means all remuneration
for employment, including the cash value of all remuneration paid in any
medium other than cash; except that such term shall not include that part
of the remuneration which, after remuneration equal to $3,000 has been paid
to an individual by an employer with respect to employment during any calendar
year, is paid to such individual by such employer with respect to employment
during such calendar year.
(b) The term employment means any service, of whatever nature, performed
within the United States by an employee for his employer, except- (1) Agricultural
labor; (2) Domestic service in a private home; (3) Casual labor not in the
course of the employer s trade or business; (4) Service performed by an
individual who has attained the age of sixty-five; (5) Service performed
as an officer or member of the crew of a vessel documented under the laws
of the United States or of any foreign country; (6) Service performed in
the employ of the United States Government or of an instrumentality of the
United States; (7) Service performed in the employ of a State, a political
subdivision thereof, or an instrumentality of one or more States or political
subdivisions; (8) Service performed in the employ of a corporation, community
chest, fund, or foundation, organized and operated exclusively for religious,
charitable, scientific, literary, or educational purposes, or for the prevention
of cruelty to children or animals, no part of the net earnings of which
inures to the benefit of any private shareholder or individual.
TITLE IX- TAX ON EMPLOYERS OF EIGHT OR MORE
IMPOSITION OF TAX
SECTION 901. On and after January 1, 1936, every employer (as defined
in section 907) shall pay for each calendar year an excise tax, with respect
to having individuals in his employ, equal to the following percentages
of the total wages (as defined in section 907) payable by him (regardless
of the time of payment) with respect to employment (as defined in section
907) during such calendar year: (1) With respect to employment during the
calendar year 1936 the rate shall be 1 per centum; (2) With respect to employment
during the calendar year 1937 the rate shall be 2 per centum; (3) With respect
to employment after December 31, 1937, the rate shall be 3 per centum.
CREDIT AGAINST TAX
SEC. 902. The taxpayer may credit against the tax imposed by section
901 the amount of contributions, with respect to employment during the taxable
year, paid by him (before the date of filing of his return for the taxable
year) into an unemployment fund under a State law. The total credit allowed
to a taxpayer under this section for all contributions paid into unemployment
funds with respect to employment during such taxable year shall not exceed
90 per centum of the tax against which it is credited, and credit shall
be allowed only for contributions made under the laws of States certified
for the taxable year as provided in section 903.
CERTIFICATION OF STATE LAWS
SEC. 903 (a) The Social Security Board shall approve any State law submitted
to it, within thirty days of such submission, which it finds provides that-
(1) All compensation is to be paid through public employment offices in
the State or such other agencies as the Board may approve; (2) No compensation
shall be payable with respect to any day of unemployment occurring within
two years after the first day of the first period with respect to which
contributions are required; (3) All money received in the unemployment fund
shall immediately upon such receipt be paid over to the Secretary of the
Treasury to the credit of the Unemployment Trust Fund established by section
904; (4) All money withdrawn from the Unemployment Trust Fund by the State
agency shall be used solely in the payment of compensation, exclusive of
expenses of administration; (5) Compensation shall not be denied in such
State to any otherwise eligible individual for refusing to accept new work
under any of the following conditions: (A) If the position offered is vacant
due directly to a strike, lockout, or other labor dispute; (B) if the wages,
hours, or other conditions of the work offered are substantially less favorable
to the individual than those prevailing for similar work in the locality;
(C) if as a condition of being employed the individual would be required
to join a company union or to resign from or refrain from joining any bona-fide
labor organization; (6) All the rights, privileges, or immunities conferred
by such law or by acts done pursuant thereto shall exist subject to the
power of the legislature to amend or repeal such law at any time. The Board
shall, upon approving such law, notify the Governor of the State of its
approval.
(b) On December 31 in each taxable year the Board shall certify to the
Secretary of the Treasury each State whose law it has previously approved,
except that it shall not certify any State which, after reasonable notice
and opportunity for hearing to the State agency, the Board finds has changed
its law so that it no longer contains the provisions specified in subsection
(a) or has with respect to such taxable year failed to comply substantially
with any such provision.
(c) If, at any time during the taxable year, the Board has reason to
believe that a State whose law it has previously approved, may not be certified
under subsection (b), it shall promptly so notify the Governor of such State.
UNEMPLOYMENT TRUST FUND
SEC. 904. (a) There is hereby established in the Treasury of the United
States a trust fund to be known as the Unemployment Trust Fund , hereinafter
in this title called the Fund . The Secretary of the Treasury is authorized
and directed to receive and hold in the Fund all moneys deposited therein
by a State agency from a State unemployment fund. Such deposit may be made
directly with the Secretary of the Treasury or with any Federal reserve
bank or member bank of the Federal Reserve System designated by him for
such purpose.
(b) It shall be the duty of the Secretary of the Treasury to invest such
portion of the Fund as is not, in his judgment, required to meet current
withdrawals. Such investment may be made only in interest-bearing obligations
of the United States or in obligations guaranteed as to both principal and
interest by the United States. For such purpose such obligations may be
acquired (1) on original issue at par, or (2) by purchase of outstanding
obligations at the market price. The purposes for which obligations of the
United States may be is- sued under the Second Liberty Bond Act, as amended,
are hereby extended to authorize the issuance at par of special obligations
exclusively to the Fund. Such special obligations shall bear interest at
a rate equal to the average rate of interest, computed as of the end of
the calendar month next preceding the date of such issue, borne by all interest-bearing
obligations of the United States then forming part of the public debt; except
that where such average rate is not a multiple of one eighth of 1 per centum,
the rate of interest of such special obligations shall be the multiple of
one-eighth of 1 per centum next lower than such average rate. Obligations
other than such special obligations may be acquired for the Fund only on
such terms as to provide an investment yield not less than the yield which
would be required in the case of special obligations if issued to the Fund
upon the date of such acquisition.
(c) Any obligations acquired by the Fund (except special obligations
issued exclusively to the Fund) may be sold at the market price, and such
special obligations may be redeemed at par plus accrued interest.
(d) The interest on, and the proceeds from the sale or redemption of,
any obligations held in the Fund shall be credited to and form a part of
the Fund.
(e) The Fund shall be invested as a single fund, but the Secretary of
the Treasury shall maintain a separate book account for each State agency
and shall credit quarterly on March 31, June 30, September 30, and December
31, of each year, to each account, on the basis of the average daily balance
of such account, a proportionate part of the earnings of the Fund for the
quarter ending on such date.
(f) The Secretary of the Treasury is authorized and directed to pay out
of the Fund to any State agency such amount as it may duly requisition,
not exceeding the amount standing to the account of such State agency at
the time of such payment.
ADMINISTRATION, REFUNDS, AND PENALTIES
SEC. 905. (a) The tax imposed by this title shall be collected by the
Bureau of Internal Revenue under the direction of the Secretary of the Treasury
and shall be paid into the Treasury of the United States as internal- revenue
collections. If the tax is not paid when due, there shall be added as part
of the tax interest at the rate of one-half of 1 per centum per month from
the date the tax became due until paid.
(b) Not later than January 31, next following the close of the taxable
year, each employer shall make a return of the tax under this title for
such taxable year. Each such return shall be made under oath, shall be filed
with the collector of internal revenue for the district in which is located
the principal place of business of the employer, or, if he has no principal
place of business in the United States, then with the collector at Baltimore,
Maryland, and shall contain such information and be made in such manner
as the Commissioner of Internal Revenue, with the approval of the Secretary
of the Treasury, may by regulations prescribe. All provisions of law (including
penalties) applicable in respect of the taxes imposed by section 600 of
the Revenue Act of 1926, shall, insofar as not inconsistent with this title,
be applicable in respect of the tax imposed by this title. The Commissioner
may extend the time for filing the return of the tax imposed by this title,
under such rules and regulations as he may prescribe with the approval of
the Secretary of the Treasury, but no such extension shall be for more than
sixty days.
(c) Returns filed under this title shall be open to inspection in the
same manner, to the same extent, and subject to the same provisions of law,
including penalties, as returns made under Title II of the Revenue Act of
1926.
(d) The taxpayer may elect to pay the tax in four equal installments
instead of in a single payment, in which case the first installment shall
be paid not later than the last day prescribed for the filing of returns,
the second installment shall be paid on or before the last day of the third
month, the third installment on or before the last day of the sixth month,
and the fourth installment on or before the last day of the ninth month,
after such last day. If the tax or any installment thereof is not paid on
or before the last day of the period fixed for its payment, the whole amount
of the tax unpaid shall be paid upon notice and demand from the collector.
(e) At the request of the taxpayer the time for payment of the tax or
any installment thereof may be extended under regulations prescribed by
the Commissioner with the approval of the Secretary of the Treasury, for
a period not to exceed six months from the last day of the period prescribed
for the payment of the tax or any installment thereof. The amount of the
tax in respect of which any extension is granted shall be paid (with inter-
est at the rate of one-half of 1 per centum per month) on or before the
date of the expiration of the period of the extension.
(f) In the payment of any tax under this title a fractional part of a
cent shall be disregarded unless it amounts to one-half cent or more, in
which case it shall be increased to 1 cent.
INTERSTATE COMMERCE
SEC. 906. No person required under a State law to make payments to an
unemployment fund shall be relieved from compliance therewith on the ground
that he is engaged in interstate commerce, or that the State law does not
distinguish between employees engaged in interstate commerce and those engaged
in intrastate commerce. DEFINITIONS
SEC. 907. When used in this title -- (a) The term employer does not include
any person unless on each of some twenty days during the taxable year, each
day being in a different calendar week, the total number of individuals
who were in his employ for some portion of the day (whether or not at the
same moment of time) was eight or more.
(b) The term wages means all remuneration for employment, including the
cash value of all remuneration paid in any medium other than cash.
(c) The term employment means any service, of whatever nature, performed
within the United States by an employee for his employer, except- (1) Agricultural
labor; (2) Domestic service in a private home; (3) Service performed as
an officer or member of a crew of a vessel on the navigable waters of the
United States; (4) Service performed by an individual in the employ of his
son, daughter, or spouse, and service performed by a child under the age
of twenty-one in the employ of his father or mother; (5) Service performed
in the employ of the United States Government or of an instrumentality of
the United States; (6) Service performed in the employ of a State, a political
subdivision thereof, or an instrumentality of one or more States or political
subdivisions; (7) Service performed in the employ of a corporation, community
chest, fund, or foundation, organized and operated exclusively for religious,
charitable, scientific, literary, or educational purposes, or for the prevention
of cruelty to children or animals, no part of the net earnings of which
inures to the benefit of any private shareholder or individual.
(d) The term State agency means any State officer, board, or other authority,
designated under a State law to administer the unemployment fund in such
State.
(e) The term unemployment fund means a special fund, established under
a State law and administered by a State agency, for the payment of compensation.
(f) The term contributions means payments required by a State law to
be made by an employer into an unemployment fund, to the extent that such
payments are made by him without any part thereof being deducted or deductible
from the wages of individuals in his employ.
(g) The term compensation means cash benefits payable to individuals
with respect to their unemployment. RULES AND REGULATIONS
SEC. 908. The Commissioner of Internal Revenue, with the approval of
the Secretary of the Treasury, shall make and publish rules and regulations
for the enforcement of this title, except sections 903, 904, and 910.
ALLOWANCE OF ADDITIONAL CREDIT
SEC. 909. (a) In addition to the credit allowed under section 902, a
taxpayer may, subject to the conditions imposed by section 910, credit against
the tax imposed by section 901 for any taxable year after the taxable year
1937, an amount, with respect to each State law, equal to the amount, if
any, by which the contributions, with respect to employment in such taxable
year, actually paid by the taxpayer under such law before the date of filing
his return for such taxable year, is exceeded by whichever of the following
is the lesser- (1) The amount of contributions which he would have been
required to pay under such law for such taxable year if he had been subject
to the highest rate applicable from time to time throughout such year to
any employer under such law; or (2) Two and seven-tenths per centum of the
wages payable by him with respect to employment with respect to which contributions
for such year were required under such law.
(b) If the amount of the contributions actually so paid by the taxpayer
is less than the amount which he should have paid under the State law, the
additional credit under subsection (a) shall be reduced proportionately.
(c) The total credits allowed to a taxpayer under this title shall not
exceed 90 per centum of the tax against which such credits are taken.
CONDITIONS OF ADDITIONAL CREDIT ALLOWANCE
SEC. 910. (a) A taxpayer shall be allowed the additional credit under
section 909, with respect to his contribution rate under a State law being
lower, for any taxable year, than that of another employer subject to such
law, only if the Board finds that under such law-- (1) Such lower rate,
with respect to contributions to a pooled fund, is permitted on the basis
of not less than three years of compensation experience; (2) Such lower
rate, with respect to contributions to a guaranteed employment account,
is permitted only when his guaranty of employment was fulfilled in the preceding
calendar year, and such guaranteed employment account amounts to not less
than 7 ´ per centum of the total wages payable by him, in accordance
with such guaranty, with respect to employment in such State in the preceding
calendar year; (3) Such lower rate, with respect to contributions to a separate
reserve account, is permitted only when (A) compensation has been payable
from such account throughout the preceding calendar year, and (B) such account
amounts to not less than five times the largest amount of compensation paid
from such account within any one of the three preceding calendar years,
and (C) such account amounts to not less than 7 ´ per centum of the
total wages payable by him (plus the total wages payable by any other employers
who may be contributing to such account) with respect to employment in such
State in the preceding calendar year.
(b) Such additional credit shall be reduced, if any contributions under
such law are made by such taxpayer at a lower rate under conditions not
fulfilling the requirements of subsection (a), by the amount bearing the
same ratio to such additional credit as the amount of contributions made
at such lower rate bears to the total of his contributions paid for such
year under such law.
(c) As used in this section- (1) The term reserve account means a separate
account in an unemployment fund, with respect to an employer or group of
employers, from which compensation is payable only with respect to the unemployment
of individuals who were in the employ of such employer, or of one of the
employers comprising the group. (2) The term pooled fund means an unemployment
fund or any part thereof in which all contributions are mingled and undivided,
and from which compensation is payable to all eligible individuals, except
that to individuals last employed by employers with respect to whom reserve
accounts are maintained by the State agency, it is payable only when such
accounts are exhausted. (3) The term guaranteed employment account means
a separate account, in an unemployment fund, of contributions paid by an
employer (or group of employers) who (A) guarantees in advance thirty hours
of wages for each of forty calendar weeks (or more, with one weekly hour
deducted for each added week guaranteed) in twelve months, to all the individuals
in his employ in one or more distinct establishments, except that any such
individual s guaranty may commence after a probationary period (included
within twelve or less consecutive calendar weeks), and (B) gives security
or assurance, satisfactory to the State agency, for the fulfillment of such
guaranties, from which account compensation shall be payable with respect
to the unemployment of any such individual whose guaranty is not fulfilled
or renewed and who is otherwise eligible for compensation under the State
law. (4) The term year of compensation experience , as applied to an employer,
means any calendar year throughout which compensation was payable with respect
to any individual in his employ who became unemployed and was eligible for
compensation.
TITLE X- GRANTS TO STATES FOR AID TO THE BLIND APPROPRIATION
SECTION 1001. For the purpose of enabling each State to furnish financial
assistance, as far as practicable under the conditions in such State, to
needy individuals who are blind, there is hereby authorized to be appropriated
for the fiscal year ending June 30, 1936, the sum of $3,000,000, and there
is hereby authorized to be appropriated for each fiscal year thereafter
a sum sufficient to carry out the purposes of this title. The sums made
available under this section shall be used for making payments to States
which have submitted, and had approved by the Social Security Board, State
plans for aid to the blind.
STATE PLANS FOR AID TO THE BLIND
SEC. 1002. (a) A State plan for aid to the blind must (1) provide that
it shall be in effect in all political subdivisions of the State, and, if
administered by them, be mandatory upon them; (2) provide for financial
participation by the State; (3) either provide for the establishment or
designation of a single State agency to administer the plan, or provide
for the establishment or designation of a single State agency to supervise
the administration of the plan; (4) provide for granting to any individual,
whose claim for aid is denied, an oppor- tunity for a fair hearing before
such State agency; (5) provide such methods of administration (other than
those relating to selection, tenure of office, and compensation of personnel)
as are found by the Board to be necessary for the efficient operation of
the plan; (6) provide that the State agency will make such reports, in such
form and containing such information, as the Board may from time to time
require, and comply with such provisions as the Board may from time to time
find necessary to assure the correctness and verification of such reports;
and (7) provide 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.
(b) The Board shall approve any plan which fulfills the conditions specified
in subsection (a), except that it shall not approve any plan which imposes,
as a condition of eligibility for aid to the blind under the plan- (1) Any
residence requirement which excludes any resident of the State who has resided
therein five years during the nine years immediately preceding the application
for aid and has resided therein continuously for one year immediately preceding
the application or (2) Any citizenship requirement which excludes any citizen
of the United States.
PAYMENT TO STATES
SEC. 1003. (a) From the sums appropriated therefor, the Secretary of
the Treasury shall pay to each State which has an approved plan for aid
to the blind, for each quarter, beginning with the quarter commencing July
1, 1935, (1) an amount which shall be used exclusively as aid to the blind
equal to one-half of the total of the sums expended during such quarter
as aid to the blind under the State plan with respect to each individual
who is blind and is not an inmate of a public institution not counting so
much of such expenditure with respect to any individual for any month as
exceeds $30, and (2) 5 per centum of such amount, which shall be used for
paying the costs of administering the State plan or for aid to the blind,
or both, and for no other purpose.
(b) The method of computing and paying such amounts shall be as follows:
(1) The Board shall, prior to the beginning of each quarter, estimate the
amount to be paid to the State for such quarter under provisions of clause
(1) 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 clause, 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, (B) records showing the
number of blind individuals in the State, and (C) such other investigation
as the Board may find necessary. (2) The Board shall then certify to the
Secretary of the Treasury the amount so estimated by the Board, reduced
or increased, as the case may be, by any sum by which it finds that its
estimate for any prior quarter was greater or less than the amount which
should have been paid to the State under clause (1) of subsection (a) 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 Board for such prior quarter. (3) The Secretary of the
Treasury shall thereupon, through the Division of Disbursement 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 Board, the amount so
certified, increased by 5 per centum.
OPERATION OF STATE PLANS
SEC. 1004. In the case of any State plan for aid to the blind which has
been approved by the Board, if the Board, after reasonable notice and opportunity
for hearing to the State agency administering or supervising the administration
of such a plan, finds-- (1) that the plan has been so changed as to impose
any residence or citizenship requirement prohibited by section 1002 (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 1002 (a)
be included in the plan; the Board shall notify such State agency that further
payments will not be made to the State until the Board is satisfied that
such prohibited requirement is no longer so imposed, and that there is no
longer any such failure to comply. Until it is satisfied it shall make no
further certification to the Secretary of the Treasury with respect to such
State.
ADMINISTRATION
SEC. 1005. There is hereby authorized to be appropriated for the fiscal
year ending June 30, 1936 the sum of $30,000, for all necessary expenses
of the Board in administering the provisions of this title.
DEFINITION
SEC. 1006. When used in this title the term aid to the blind means money
payments to blind individuals.
TITLE XI- GENERAL PROVISIONS
DEFINITIONS
SECTION 1101. (a) When used in this Act- (1) The term State (except when
used in section 531) includes Alaska, Hawaii, and the District of Columbia.
(2) The term United States when used in a geographical sense means the States,
Alaska, Hawaii, and the District of Columbia.
(3) The term person means an individual, a trust or estate, a partnership,
or a corporation. (4) The term corporation includes associations, joint-stock
companies, and insurance companies. (5) The term shareholder includes a
member in an association, joint- stock company, or insurance company. (6)
The term employee includes an officer of a corporation.
(b) The terms includes and including when used in a definition contained
in this Act shall not be deemed to exclude other things otherwise within
the meaning of the term defined.
(c) Whenever under this Act or any Act of Congress, or under the law
of any State, an employer is required or permitted to deduct any amount
from the remuneration of an employee and to pay the amount deducted to the
United States, a State, or any political subdivision thereof, then for the
purposes of this Act the amount so deducted shall be considered to have
been paid to the employee at the time of such deduction.
(d) Nothing in this Act shall be construed as authorizing any Federal
official, agent, or representative, in carrying out any of the provisions
of this Act, to take charge of any child over the objection of either of
the parents of such child, or of the person standing in loco parentis to
such child.
RULES AND REGULATIONS
SEC. 1102. The Secretary of the Treasury, the Secretary of Labor, and
the Social Security Board respectively, shall make and publish such rules
and regulations, not inconsistent with this Act, as may be necessary to
the efficient administration of the functions with which each is charged
under this Act.
SEPARABILITY
SEC. 1103. If any provision of this Act, or the application thereof to
any person or circumstance is held invalid, the remainder of the Act, and
the application of such provision to other persons or circumstances shall
not be affected thereby.
RESERVATION OF POWER
SEC. 1104. The right to alter, amend, or repeal any provision of this
Act is hereby reserved to the Congress.
SHORT TITLE
SEC. 1105. This Act may be cited as the Social Security Act.
Approved, August 14, 1935.