"(3) with a plan for child-welfare services so developed which provides, with respect to day care provided under the plan, for cooperative arrangements with the State health authority and the State agency primarily responsible for State supervision of public schools to assure maximum utilization of such agencies in the provision of necessary health services and education for children receiving such day care,

an amount equal to the Federal share".

(2) Such section 523 (a) is further amended by striking out "costs of district, county, or other local child-welfare services" and inserting in lieu thereof "costs of State, district, county, or other local child-welfare services" and by striking out "runaway child who has not attained the age of eighteen" and inserting in lieu thereof "runaway child".

Allotments for Day Care

(c) (1) Section 522 (a) of such Act is amended (A) by striking out "The sums appropriated for each fiscal year under section 521" at the beginning of such section and inserting in lieu thereof "All but $10,000,000 of the total appropriated for a fiscal year under section 521 or, if such total is less than $35,000,000, all but the excess (if any) of such total over $25,000,000"; (B) by striking out "He shall allot to each State $50,000 or, if greater, such portion of $70,000 as the amount appropriated under section 521 for such year bears to the amount authorized to be so appropriated" and inserting in lieu thereof "He shall allot to each State $70,000 or, if the amount appropriated under section 521 for such year is less than $25,000,000, he shall allot to each State $50,000 or, if greater, such portion of $70,000 as the amount appropriated under such section bears to $25,000,000"; and (C) by striking out "the remainder of the sums so appropriated for such year" and inserting in lieu thereof "the remainder of the sum available for allotment under this subsection for such year".

(2) Title V of such Act is further amended by adding at the end thereof the following new section: "DAY CARE

"SEC. 527. (a) In order to assist the States to provide adequately for the care and protection of children whose parents are, for part of the day, working or seeking work, or otherwise absent from the home or unable for other reasons to provide parental supervision, the portion of the appropriation under section 521 which is not allotted under section 522 shall be allotted among the States solely for the provision, under the State plan developed as provided in this part, of day care in facilities (including private homes) which are licensed by the State, or are approved (as meeting the standards established for such licensing) by the State agency responsible for licensing facilities of this type, as follows: He shall allot to each State an amount which bears the same ratio to such portion of the appropriation as the product of (1) the population of the State under the age of 21 and (2) the allotment percentage of such State (as determined under section 524) bears to the sum of the corresponding products of all the States, except that the allotment of any State as so computed which is less than $10,000 shall be increased to that amount the total of the increases thereby required being derived by proportionately reducing the allotments to each of the remaining States (as so computed), but with such adjustments as may be necessary to prevent the allotment of any of such remaining States from being thereby reduced to less than such amount.

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

Definition of Child-Welfare Services

(d) (1) Section 521 of such Act is further amended by striking out "publicwelfare services (hereinafter in this title referred to as 'child-welfare services') for the protection and care of homeless, dependent, and neglected children, and children in danger of becoming delinquent" and inserting in lieu thereof "childwelfare services".

(2) Title V of such Act is further amended by adding after section 527 (added by subsection (c) of this section) the following new section:

"DEFINITION

"SEC. 528. For purposes of this part, (a) the term 'child-welfare services' means public social services which supplement, or substitute for, parental care and supervision for the purpose (1) of preventing or remedying, or assisting in the solution of problems which may result in, the neglect, abuse, exploitation, or delinquency of children and youths, (2) of protecting and caring for homeless, dependent, or neglected children and youths, (3) of protecting and promoting the welfare of children of working mothers, and (4) of otherwise protecting and promoting the welfare of children and youths, including the strengthening of their own homes where possible or, where needed, the provision of adequate care of children and youths away from their homes in foster family homes or day-care or other child-care facilities; and (b) the term 'child' or 'youth' means an individual under the age of 21."

WELFARE SERVICES FOR EACH CHILD UNDER DEPENDENT CHILDREN'S PROGRAM SEC. 103. Section 402 (a) of the Social Security Act is amended by striking out "and" after the semicolon at the end of clause (11), and by inserting before the period at the end of clause (12): "; and (13) provide for the development and application of a program for such welfare and related services for each child who receives aid to families with dependent children as may be necessary in the light of the particular home conditions and other needs of such child, and provide for coordination of such programs, and any other services provided for children under the State plan, with the child welfare services plan developed as provided in part 3 of title V, with a view toward providing welfare and related services which will best promote the welfare of such child and his family".

TECHNICAL AMENDMENTS TO REFLECT EMPHASIS ON REHABILITATION
AND OTHER SERVICES

SEC. 104. (a) (1) The heading of title IV of the Social Security Act is amended to read "TITLE IV-GRANTS TO STATES FOR AID AND SERVICES TO NEEDY FAMILIES WITH CHILDREN".

(2) The heading of section 402 of such Act is amended to read "STATE PLANS FOR AID AND SERVICES TO NEEDY FAMILIES WITH CHILDREN".

(3) The following provisions of such Act are amended by striking out the term "aid to dependent children" each time it appears therein and inserting in lieu thereof "aid to families with dependent children":

(A) clauses (4), (7), (8), (9), and (10) of section 402(a);

(B) section 402 (b);

(C) section 403(a)(1) (except clause (A) (i) thereof);

(D) section 403(a)(2) (except the second time such term appears therein);

(E) section 403(b) (2) (B);

(F) section 406 (b);

(G) clause (2) (B) of section 407;

(H) section 408 (b);

(I) section 408 (c);

(J) section 1002 (a) (7) ;

(K) section 1402(a) (7).

(4) The second sentence of section 401 of such Act is amended by striking out "State plans for aid to dependent children" and inserting in lieu thereof "State plans for aid and services to needy families with children".

(5) The following provisions of title IV of such Act are amended by striking out the term “plan for aid to dependent children" and inserting in lieu thereof "plan for aid and services to needy families with children":

(A) the portion of section 402 (a) which precedes clause (1);
(B) the portion of section 403 (a) which precedes clause (1);

(C) the portion of section 404 which precedes clause (1).

(6) Section 403 (a) (1) (A) (i) of such Act is amended by striking out "aid to dependent children" and inserting in lieu thereof "such aid".

(7) Section 403(a)(2) of such Act is amended by striking out "aid to dependent children" the second time it appears therein and inserting in lieu thereof "such aid".

(b) (1) The first sentence of section 1 of such Act is amended to read as follows: "For the purpose (a) of enabling each State, as far as practicable under the conditions in such State, to furnish financial assistance to aged needy individuals, (b) of enabling each State, as far as practicable under the conditions in such State, to furnish medical assistance on behalf of aged individuals who are not recipients of old-age assistance but whose income and resources are insufficient to meet the costs of necessary medical services, and (c) of encouraging each State, as far as practicable under the conditions in such State, to furnish rehabilitation and other services to help individuals referred to in clause (a) or (b) to attain self-care, there is hereby authorized to be appropriated for each fiscal year a sum sufficient to carry out the purposes of this title."

(2) The first sentence of section 401 of such Act is amended by inserting "and rehabilitation" after "financial assistance".

(3) The first sentence of sections 1001 and 1401 of such Act are each amended by inserting "to furnish rehabilitation and other services" before "to help such individuals attain self-support or self-care".

COMMUNITY WORK AND TRAINING PROGRAMS

SEC. 105. (a) Title IV of the Social Security Act is amended by adding at the end thereof the following new section:

"COMMUNITY WORK AND TRAINING PROGRAMS

"SEC 409. (a) For the purpose of assisting the States in encouraging, through community work training programs of a constructive nature, the conservation of work skills and the development of new skills for individuals who have attained the age of 18 and are receiving aid to families with dependent children, under conditions which are designed to assure protection of the health and welfare of such individuals and the dependent children involved, expenditures (other than for medical or any other type of remedial care) for any month with respect to a dependent child (including payments to meet the needs of any relative or relatives, specified in section 406 (a), with whom he is living) under a State plan approved under section 402 shall not be excluded from aid to families with dependent children because such expenditures are made in the form of payments for work performed in such month by any one or more of the relatives with whom such child is living if such work is performed for the State agency or any other public agency under a program (which need not be in effect in all political subdivisions of the State) administered by or under the supervision of such State agency, if there is State financial participation in such expenditures, and if such State plan includes

"(1) provisions which, in the judgment of the Secretary, provide reasonable assurance that

"(A) appropriate standards for health and safety and other conditions of work of such relatives performing such work are established and maintained;

"(B) payments for such work are at rates not less than the minimum rate (if any) provided by or under State law for the same type of work and not less than the rates prevailing on similar work in the community; "(C) such work is performed on projects which serve a useful public purpose and do not result either in displacement of regular workers or in the performance of work that would otherwise be performed by employees of public or private agencies, institutions, or organizations;

"(D) in determining the needs of any such relative, any additional expenses attributable to such work will be considered;

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(E) any such relative shall have reasonable opportunities to seek regular employment and to secure appropriate training or retraining which may be available;

“(F) any such relative will, with respect to the work so performed, be covered under the State workmen's compensation law or be provided comparable protection; and

"(G) aid under the plan will not be denied with respect to any such relative (or the dependent child) for refusal by such relative to perform any such work if he has good cause for such refusal;

"(2) provision for entering into cooperative arrangements with the system of public employment offices in the State looking toward employment or occupational training of any such relatives performing work under such program, including appropriate provision for registration and periodic reregistration of such relatives and for maximum utilization of job placement services and other services and facilities of such offices;

"(3) provision for entering into cooperative arrangements with the State agency or agencies responsible for administering or supervising the administration of vocational education and adult education in the State, looking toward maximum utilization of available public vocational or adult education services and facilities in the State in order to encourage the training or retraining of any such relatives performing work under such program and otherwise assist them in preparing for regular employment;

"(4) provision for assuring appropriate arrangements for the care and protection of the child during the absence from the home of any such relative performing work under such program in order to assure that such absence and work will not be inimical to the welfare of the child;

"(5) provision that there will be no adjustment or recovery by the State or any political subdivision thereof on account of any payments which are correctly made for such work; and

"(6) such other provisions as the Secretary finds necessary to assure that the operation of such program will not interfere with achievement of the objectives set forth in section 401.

"(b) In the case of any State which makes the expenditures described in subsection (a) under its State plan approved under section 402, the proper and efficient administration of the State plan, for purposes of section 403(a) (3), may not include the cost of making or acquiring materials or equipment in connection with the work performed under the program referred to in subsection (a) or the cost of supervision of work under such program, and may include only such other costs attributable to such programs as are permitted by the Secretary."

(b) The Secretary shall submit to the President, for transmission to the Congress prior to January 1, 1967, a full report of the administration of the provisions of the amendment made by subsection (a), including the experiences of each of the States in paying for work under community work training programs under the provisions of their respective State plans which are in accord with such amendment, together with his recommendations as to continuation of and modifications in such amendment.

INCENTIVES FOR EMPLOYMENT THROUGH CONSIDERATION OF EXPENSES
IN EARNING INCOME

SEC. 106. (a) Section 2(a) of such Act is amended by inserting before the semicolon at the end of subparagraph (A) of the paragraph redesignated as paragraph (11) (by section 101 of this Act ", as well as any expenses reasonably attributable to the earning of any such income”.

(b) Section 402(a) (7) of such Act is amended by inserting before the semicolon at the end thereof ", as well as any expenses reasonably attributable to the earning of any such income."

(c) Section 1002 (a) (8) of such Act is amended by inserting before the first semicolon", as well as any expenses reasonably attributable to the earning of any such income".

(d) Section 1402 (a) (8) of such Act is amended by inserting before the semicolon at the end thereof ", as well as any expenses reasonably attributable to the earning of any such income".

PROTECTIVE PAYMENTS UNDER DEPENDENT CHILDREN PROGRAM

SEC. 107. (a) Section 406(b) of the Social Security Act is amended by inserting "(1)" after "includes" and by inserting before the semicolon at the end thereof: ", and (2) payments with respect to any dependent child (including payments to meet the needs of the relative, and the relative's spouse, with whom such child is living) which do not meet the preceding requirements of this subsection, but which would meet such requirements except that such payments are made to another person who (as determined in accordance with standards prescribed by the Secretary) is interested in or concerned with the welfare of such child and relative, but only in the case of a State whose State plan approved under section 402 includes provision for

"(A) determination by the State agency that the relative of the child with respect to whom such payments are made has such inability to manage funds that making payments to him would be contrary to the welfare of the child and, therefore, it is necessary to provide such aid with respect to such child and relative through payments described in this clause (2); "(B) meeting all of the need, as determined by the State, of individuals with respect to whom aid to families with dependent children is paid;

"(C) undertaking and continuing special efforts to develop greater ability on the part of the relative to manage funds in such manner as to protect the welfare of the family;

"(D) periodic review of the determination under clause (A) by such State agency to ascertain whether conditions justifying the State agency's determination still exist, with provision for termination of such payments if they do not and for seeking judicial appointment of a guardian or legal representative, as provided in section 1111, if and when it appears that the need for such payments is continuing, or is likely to continue, beyond a period specified by the Secretary;

"(E) aid in the form of foster care in behalf of children described in section 408 (a); and

"(F) opportunity for a fair hearing before the State agency on the determination referred to in clause (A) for any individual with respect to whom it is made".

(b) Section 403 (a) of such Act, as amended by the other provisions of this Act, is further amended by adding at the end thereof the following new sentence: "The number of individuals with respect to whom payments described in section 406(b) (2) are made for any month, who may be included as recipients of aid to families with dependent children for purposes of clause (1) or (2) of the first sentence of this subsection, may not exceed one-half of 1 per centum of the number of other recipients of aid to families with dependent children for such month."

(c) Clause (1) (A) of such section 403 (a) is amended by inserting before the close parenthesis at the end thereof ", plus (iii) the number of individuals, not counted under clause (i) or (ii), with respect to whom payments described in section 406 (b) (2) are made in such month which are included as expenditures for purposes of this clause or clause (2)".

(d) The Secretary shall submit to the President, for transmission to the Congress prior to January 1, 1967, a full report of the administration of the provisions of the amendments made by this section, including the experiences of each of the States in making protective payments under the provisions of their respective State plans which are in accord with such amendments, together with his recommendations as to continuation of and modifications in such amendments.

CONTINUATION OF AID TO RELATIVE UNDER DEPENDENT CHILDREN PROGRAM AFTER REMOVAL OF CHILD FROM HOME

SEC. 108. Section 408(b) of such Act is amended by inserting "(1)" after "include also" and inserting before the semicolon at the end thereof ", and (2) continuation (or resumption) of money payments and medical or any other type of remedial care to meet the needs of any relative with whom such a child was living (and the spouse of such relative if living with him and if the child is a dependent child by reason of the physical or mental incapacity of a parent or is a dependent child under section 407) prior to the child's removal from such relative's home as provided in clause (1) of paragraph (a), but only upon a determination by the State or local agency administering the State plan approved