financial assistance to aged needy individuals, there is hereby authorized to be appropriated for each fiscal year 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 Secretary of Health, Education, and Welfare (hereinafter referred to as the "Secretary”), State plans for old-age assistance.

STATE OLD-AGE PLANS

SEC. 2. [42 U.S.C. 302] (a) A State plan for old-age assistance must

(1) except to the extent permitted by the Secretary with respect to services, 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 (A) for granting an opportunity for a fair hearing before the State agency to any individual whose claim for assistance under the plan is denied or is not acted upon with reasonable promptness, and (B) that if the State plan is administered in each of the political subdivisions of the State by a local agency and such local agency provides a hearing at which evidence may be presented prior to a hearing before the State agency, such local agency may put into effect immediately upon issuance its decision upon the matter considered at such hearing;

(5) provide (A) such methods of administration (including methods relating to the establishment and maintenance of personnel standards on a merit basis, except that the Secretary shall exercise no authority with respect to the selection, tenure of office, and compensation of any individual employed in accordance with such methods) as are found by the Secretary 5 to be necessary for the proper and efficient operation of the plan, and (B) for the training and effective use of paid subprofessional staff, with particular emphasis on the full-time or parttime employment of recipients and other persons of low income, as community service aides, in the administration of the plan and for the use of nonpaid or partially paid volunteers in a social service volunteer program in providing services to applicants and recipients and in assisting any advisory committees established by the State agency;

(6) provide that the State agency will make such reports, in such form and containing such information, as the Secretary may from time to time require, and comply with such provi

4 This was deemed to refer to the Secretary of Health and Human Services under section 509 of the "Department of Education Organization Act" (P.L. 96-88, 93 Stat. 695), effective May 4, 1980.

SP.L. 91-648, §208(a)(3)(D), transferred to the U.S. Civil Service Commission, effective March 6, 1971, all powers, functions, and duties of the Secretary under subparagraph (A). Functions of the Commission were transferred, effective January 1, 1979, to the Director of the Office of Personnel Management by section 102 of Reorganization Plan No. 2 of 1978.

sions as the Secretary may from time to time find necessary to assure the correctness and verification of such reports;

(7) provide safeguards which permit the use or disclosure of information concerning applicants or recipients only (A) to public officials who require such information in connection with their official duties, or (B) to other persons for purposes directly connected with the administration of the State plan;

(8) provide that all individuals wishing to make application for assistance under the plan shall have opportunity to do so, and that such assistance shall be furnished with reasonable promptness to all eligible individuals;

(9) provide, if the plan includes assistance for or on behalf of individuals in private or public institutions, for the establishment or designation of a State authority or authorities which shall be responsible for establishing and maintaining standards for such institutions;

(10) if the State plan includes old-age assistance

(A) provide that the State agency shall, in determining need for such assistance, take into consideration any other income and resources of an individual claiming old-age assistance, as well as any expenses reasonably attributable to the earning of any such income; except that, in making such determination, (i) the State agency may disregard not more than $7.50 per month of any income and (ii) of the first $80 per month of additional income which is earned the State agency may disregard not more than the first $20 thereof plus one-half of the remainder; 6

"See Vol. II, 10 U.S.C. 2546, with respect to shelter for the homeless at military installations. See Vol. II, 10 U.S.C. 2546 with respect to shelter for the homeless at military installations. See Vol. II, P.L. 81-171, §521(a)(1)(E), with respect to exclusion from income and resources of certain assistance rendered to provide occupant-owned, rental and cooperative housing.

See Vol. II, P.L. 87-543, §141(b), with respect to ineligibility to receive payments under Title XIV where payments have been made under Title XVI.

See Vol. II, P.L. 88-525, §8(b), with respect to exclusion from income and resources of the value of food stamps.

See Vol. P.L. 89-73, §210(b), with respect to exclusion from income of the costs of any project under that act.

See Vol. II, P.L. 89-329, §479B, with respect to exclusion from income or resources of certain student financial assistance.

See Vol. II, P.L. 90-248, §248(c), effective July 1, 1969, with respect to income disregards applicable to Guam, Puerto Rico, and the Virgin Islands.

See Vol. II, P.L. 91-646, §216, with respect to exclusion from income of payments made under that act.

See Vol. II, P.L. 93–112, §613(c), for the conditional exclusion from income of wages, allowances, transportation reimbursement, and attendant care provided to handicapped individuals under community service employment pilot programs.

See Vol. II, P.L. 93–113, §404(g), with respect to exclusion from income and resources of payments to volunteers under that act.

See Vol. II, P.L. 93-134, §§7 and 8, with respect to exclusion from income and resources of certain judgment funds to any Indian tribe.

See Vol. II, P.L. 93–288, §312(d), with respect to exclusion from income and resources of certain Federal major disaster and emergency assistance.

See Vol. II, P.L. 94-114, §6, with respect to exclusion from income and resources of property and receipts from submarginal land to certain Indians.

See Vol. II, P.L. 95-433, §2, with respect to exclusion from income and resources of certain judgment funds.

See Vol. II, P.L. 95-498, §6, with respect to an income and resources exclusion applicable to the Pueblo of Santa Ana Indians, New Mexico.

See Vol. II, P.L. 95-499, §6, with respect to an income and resources exclusion applicable to the Pueblo of Zia Indians, New Mexico.

See Vol. II, P.L. 95-557, §410(b), with respect to exclusion from income of services (but not of wages) provided to a public housing resident or to a resident of a housing project assisted under the "Housing Act of 1959" (see Vol. II, P.L. 86-372, §202).

4

See Vol. II, P.L. 97-35, §2605(1), with respect to exclusion from income and resources of home energy assistance payments or allowances.

Continued

(B) include reasonable standards, consistent with the objectives of this title, for determining eligibility for and the extent of such assistance; and

(C) provide a description of the services (if any) which the State agency makes available (using whatever internal organizational arrangement it finds appropriate for this purpose) to applicants for and recipients of such assistance to help them attain self-care, including a description of the steps taken to assure, in the provision of such services, maximum utilization of other agencies providing similar or related services; and

(11) provide that information is requested and exchanged for purposes of income and eligibility verification in accordance with a State system which meets the requirements of section 1137 of this Act.

(b) The Secretary shall approve any plan which fulfills the conditions specified in subsection (a), except that he shall not approve any plan which imposes, as a condition of eligibility for assistance under the plan

(1) an age requirement of more than sixty-five years; or

(2) any residence requirement which (A) in the case of applicants for old-age assistance, 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, and (B) in the case of applicants for medical assistance for the aged, excludes any individual who resides in the State; or

(3) any citizenship requirement which excludes any citizen of the United States.

See Vol. II, P.L. 98-64, §2(a), with respect to exclusion from income and resources of per capita payments to Indians.

See Vol. II, P.L. 98–432, §5(e), with respect to exclusion from income and resources of certain judgment funds.

See Vol. II, P.L. 98-500, §8, with respect to exclusion from income and resources of certain judgment funds.

See Vol. II, P.L. 98-602, $106(d), with respect to exclusion from income and resources of certain funds distributed per capita.

See Vol. II, P.L. 99-130, §8, with respect to exclusion from income and resources of certain funds.

See Vol. II, P.L. 99-146, §6(b), with respect to exclusion from income and resources of certain funds.

See Vol. II, P.L. 99–264, §16, with respect to exclusion from income and resources of certain judgment funds.

See Vol. II, P.L. 99–346, §6(b), with respect to exclusion from income and resources of certain judgment funds.

See Vol. II, P.L. 99-377, §4(b), with respect to exclusion from income and resources of certain judgment funds.

See Vol. II, P.L. 100-139, §4(h)(6), with respect to exclusion of benefits as basis for denial of eligibility.

See Vol. II, P.L. 100-407, §105(g), with respect to the effect of financial assistance under that

Act.

See Vol. II, P.L. 100409, §5, with respect to the effect of this Act on P.L. 92-203 or P.L. 96– 487.

See Vol. II, P.L. 100-411, §2(d)(3)(B), with respect to the effect of per capita payments. See Vol. II, P.L. 100-581, §§501, 502(b)(1), and 503, with respect to exclusion from income and resources of certain judgment funds.

See Vol. II, P.L. 101-41, §10(b)-(d), with respect to eligibility for Federal programs and treatment of funds, assets, and income.

See Vol. II, P.L. 101-42, §3, with respect to the restoration of Federal recognition, rights, and privileges.

See Vol. II, P.L. 101-201, with respect to Agent Orange settlement payments. See Vol. II, P.L. 101-239, §10405, with respect to Agent Orange settlement payments excluded from countab income and resources der Federal means-tested programs.

See Vol. II, P.L. 101-277, §8(b), with respect to exclusion, from income or resources, of funds held in trust or distributed to Seminole Indians.

At the option of the State, the plan may provide that manuals and other policy issuances will be furnished to persons without charge for the reasonable cost of such materials, but such provision shall not be required by the Secretary as a condition for the approval of such plan under this title.

(c) Nothing in this title shall be construed to permit a State to have in effect with respect to any period more than one State plan approved under this title.

PAYMENT TO STATES

SEC. 3. [42 U.S.C. 303] (a) From the sums appropriated therefor, the Secretary of the Treasury shall pay to each State which has a plan approved under this title, for each quarter, beginning with the quarter commencing October 1, 1960

[ (1) Stricken. 7]

(2) in the case of Puerto Rico, the Virgin Islands, and Guam, an amount equal to one-half of the total of the sums expended during such quarter as old-age assistance under the State plan, not counting so much of any expenditure with respect to any month as exceeds $37.50 multiplied by the total number of recipients of old-age assistance for such month; plus

[ (3) Stricken. 8]

(4) in the case of any State, an amount equal to 50 percent of the total amounts expended during such quarter as found necessary by the Secretary for the proper and efficient administration of the State plan.

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

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

(2) The Secretary of Health, Education, and Welfare shall then certify to the Secretary of the Treasury the amount so estimated by the Secretary of Health, Education, and Welfare, (A) reduced or increased, as the case may be, by any sum by which he finds that his estimate for any prior quarter was greater or less than the amount which should have been paid to the State under subsection (a) for such quarter, and (B) reduced by a sum equivalent to the pro rata share to which the United States is equitably entitled, as determined by the Secretary of Health, Education, and Welfare, of the net amount recovered during any prior quarter by the State or any political

'P.L. 97-35, §2184(a)(4)(A); 95 Stat. 816. *P.L. 97-35, §2184(a)(4)(A); 95 Stat. 816.

subdivision thereof with respect to assistance furnished under the State plan; except that such increases or reductions shall not be made to the extent that such sums have been applied to make the amount certified for any prior quarter greater or less than the amount estimated by the Secretary for such prior quarter: Provided, That any part of the amount recovered from the estate of a deceased recipient which is not in excess of the amount expended by the State or any political subdivision thereof for the funeral expenses of the deceased shall not be considered as a basis for reduction under clause (B) of this paragraph.

(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 Health, Education, and Welfare, the amount so certified.

OPERATION OF STATE PLANS

SEC. 4. [42 U.S.C. 304] In the case of any State plan which has been approved under this title by the Secretary of Health, Education, and Welfare, if the Secretary, after reasonable notice and opportunity for hearing to the State agency administering or supervising the administration of such plan, finds

(1) that the plan has been so changed as to impose any 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 Secretary shall notify such State agency that further payments will not be made to the State (or, in his discretion, that payments will be limited to categories under or parts of the State plan not affected by such failure) until the Secretary is satisfied that such prohibited requirement is no longer so imposed, and that there is no longer any such failure to comply. Until he is so satisfied he shall make no further payments to such State (or shall limit payments to categories under or parts of the State plan not affected by such failure).

SEC. 5. [Repealed. 10]

DEFINITION 11

SEC. 6. [42 U.S.C. 306] (a) 12 For the purposes of this title, the term “old-age assistance" means money payments to, or (if provided

9As in original. The Division of Disbursement was consolidated inthe Fiscal Service of the Treasury Department by Reorganization Plan No. III, §1(a), effective June 30, 1940 (54 State. 1231).

10 P.L. 92-603, §303(a); 86 Stat. 1484.

The P.L. 92-603, §303(b), repeal exception is deemed not applicable to §5 because it was executed with expenditure of the appropriation for the fiscal year ending June 30, 1936, and never became applicable to Puerto Rico, Guam, or the Virgin Islands.

As in original. P.L. 86-778, §601(f)(2), [74 Stat. 991), did not amend the catchline. 12 As in original; “(a)" should be stricken.