under section 402 that continuation (or resumption) of such payments and care is likely to result in attainment of conditions necessary to make possible the child's return to such home".

AID FOR SPOUSE OF RELATIVE WITH WHOM DEPENDENT CHILD IS LIVING

SEC. 109. Section 406(b) of the Social Security Act, as amended by section 107 of this Act, is amended by inserting "(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)" after "relative with whom any dependent child is living" in clause (1) thereof.

PART B-IMPROVEMENT IN ADMINISTRATION THROUGH TRAINING, DEMONSTRATIONS, AND PUBLIC ADVISORY GROUPS

INCREASE IN ADEQUATELY TRAINED WELFARE PERSONNEL

SEC. 121. (a) Title IV of the Social Security Act is amended by adding after section 409 (added by section 105 of this Act) the following new section:

"INCREASE IN ADEQUATELY TRAINED FAMILY WELFARE PERSONNEL

"SEC. 410. (a) In order to assist in increasing the effectiveness and efficiency of administration of State plans for aid and services to needy families with children by increasing the number of adequately trained public welfare personnel available for work primarily with families with an unmarried or deserting parent and for work in preserving and strengthening family life, there are authorized to be appropriated for the fiscal year ending June 30, 1963, and each fiscal year thereafter such sums as the Congress may determine.

"(b) Sums appropriated under subsection (a) shall be available to enable the Secretary to provide (1) directly or through grants to or contracts with public or nonprofit private institutions of higher learning, for training personnel who are employed or preparing for employment in the administration of State plans for aid and services to needy families with children, and who are to work primarily with families with an unmarried or deserting parent and in preserving and strengthening family life, (2) directly or through grants to or contracts with public or nonprofit private agencies or institutions, special courses of study or seminars of short duration (not in excess of one year) for training of such personnel, and (3) directly or through grants to or contracts with public or nonprofit private institutions of higher learning, for establishing and maintaining fellowships or traineeships for such personnel at such institutions, with such stipends and allowances as may be permitted by the Secretary.

"(c) Payments under subsection (b) may be made in advance on the basis of estimates by the Secretary, or may be made by way of reimbursement, and adjustments may be made in future payments under this section to take account of overpayments or underpayments in amounts previously paid.

"(d) The Secretary may, to the extent he finds such action to be necessary, prescribe requirements to assure that any individual will repay the amount of his fellowship or traineeship received under this section to the extent he fails to serve, for the period prescribed by the Secretary, with a State or political subdivision thereof, or with the Federal Government, in connection with administration of the program established by this title. The Secretary may relieve any individual of his obligation to so repay, in whole or in part, whenever and to the extent that requirement of such repayment would, in his judgment, be inequitable or would be contrary to the purposes of any of the public welfare programs established by this Act."

(b) No appropriation shall be made under section 705(a) of such Act for any fiscal year ending after June 30, 1962.

(c) (1) Section 526(a) of such Act is amended by inserting before the period at the end thereof "; and for grants by the Secretary to public or other nonprofit institutions of higher learning, and other public or other nonprofit institutions and agencies engaged in child welfare activities, for special projects for training personnel for work in the field of child welfare, including traineeships with such stipends and allowances as may be permitted by the Secretary".

(2) The heading of section 526 of such Act is amended by inserting ", TRAINING," after "RESEARCH".

ADVISORY COUNCIL ON PUBLIC WELFARE

SEC. 122. Title XI of the Social Security Act is amended by adding after section 1113 the following new section:

"APPOINTMENT OF ADVISORY COUNCIL AND OTHER ADVISORY GROUPS

"SEC. 1114. (a) The Secretary shall, during 1964, appoint an Advisory Council on Public Welfare for the purpose of reviewing the administration of the public welfare programs for which funds are appropriated pursuant to this Act and making recommendations for improvement of such administration, and reviewing the status of and making recommendations with respect to the public assistance programs for which funds are so appropriated, especially in relation to the old-age, survivors, and disability insurance program, with respect to the fiscal capacities of the States and the Federal Government, and with respect to any other matters bearing on the amount and proportion of the Federal and State shares in the public welfare programs.

(b) The Council shall be appointed by the Secretary without regard to the civil-service laws and shall consist of twelve persons who shall, to the extent possible, be representatives of employers and employees in equal numbers, representatives of State or Federal agencies concerned with the administration or financing of public welfare programs, representatives of nonprofit private organizations concerned with social welfare programs, other persons with special knowledge, experience, or qualifications with respect to such programs, and members of the public.

"(c) The Council is authorized to engage such technical assistance as may be required to carry out its functions, and the Secretary shall, in addition, make available to the Council such secretarial, clerical, and other assistance and such pertinent data prepared by the Department of Health, Education, and Welfare as it may require to carry out such functions.

"(d) The Council shall make a report of its findings and recommendations (including recommendations for changes in the provisions of the Social Security act) to the Secretary, such report to be submitted not later than July 1, 1966, after which date such Council shall cease to exist.

"(e) The Secretary shall also from time to time thereafter appoint an Advisory Council on Public Welfare, with the same functions and constituted in the same manner as prescribed for the Advisory Council in the preceding subsections of this section. Each Council so appointed shall report its findings and recommendations, as prescribed in subsection (d), not later than July 1 of the second year after the year in which it is appointed, after which date such Council shall cease to exist.

"(f) The Secretary may also appoint, without regard to the civil-service laws, such advisory committees as he may deem advisable to advise and consult with him in carrying out any of his functions under this Act.

"(g) Members of the Council or of any advisory committee appointed under this section who are not regular full-time employees of the United States shall, while serving on business of the Council or any such committee, be entitled to receive compensation at rates fixed by the Secretary, but not exceeding $75 per day, including travel time; and while so serving away from their homes or regular places of business, they may be allowed travel expenses, including per diem in lieu of subsistence, as authorized by law (5 U.S.C. 73b-2) for persons in Government service employed intermittently.

"(h) (1) Any member of an advisory committee or council appointed under this Act, or appointed by the Secretary under any other law, who is not a regular full-time employee of the United States, is hereby exempted, with respect to such appointment, from the operation of sections 281, 283, and 1914 of title 18 of the United States Code, and section 190 of the Revised Statutes (5 U.S.C. 99), except as otherwise specified in paragraph (2) of this subsection. "(2) The exemption granted by paragraph (1) shall not extend

"(A) to the receipt or payment of salary in connection with the appointee's Government service from any source other than the private employer of the appointee at the time of his appointment, or

"(B) during the period of such appointment, to the prosecution or participation in the prosecution, by any person so appointed, of any claim against the Government involving any matter with which such person, during such period, is or was directly connected by reason of such appointment."

WAIVER OF STATE PLAN REQUIREMENTS FOR DEMONSTRATIONS

SEC. 123. Title XI of the Social Security Act is amended by adding after section 1114 (added by section 122 of this Act) the following new section:

"DEMONSTRATION PROJECTS

"SEC. 1115. In the case of any experimental, pilot, or demonstration project which, in the judgment of the Secretary, is likely to assist in promoting the objectives of title I, IV, X, XIV, or XVI in a State or States

"(a) the Secretary may waive compliance with any of the requirements of sections 2, 402, 1002, 1402, and 1602, respectively, to the extent and for the period he finds necessary to enable such State or States to carry out such project,

"(b) costs of such project which would not otherwise be included as expenditures under section 3, 403, 1003, 1403, and 1603, respectively, and which are not included as part of the costs of projects under section 1110, shall, to the extent and for the period prescribed by the Secretary, be regarded as expenditures under the State plan or plans approved under such title, or for administration of such State plan or plans, as may be appropriate, and

"(c) not to exceed $2,000,000 of the amount appropriated for payments to States under such titles for any year ending prior to July 1, 1967, shall be available, under such terms and conditions as the Secretary may establish, for payments to States to cover so much of the cost of any such project as is not covered by payments under such titles and is not included as part of the cost of a project for purposes of section 1110."

PART C-IMPROVEMENT OF PUBLIC WELFARE PROGRAMS THROUGH EXTENSION OF TEMPORARY PROVISIONS AND REDUCTION IN RESIDENCE REQUIREMENTS

EXTENSION OF AID WITH RESPECT TO DEPENDENT CHILDREN OF UNEMPLOYED PARENTS OR IN FOSTER FAMILY HOMES

Extension With Respect to Children of Unemployed Parents

SEC. 131. (a) So much of the first sentence of section 407 of the Social Security Act as precedes paragraph (1) thereof is amended by striking out ", and ending with the close of June 30, 1962".

Extension With Respect to Foster Family Home Care

(b) So much of the first sentence of section 408 of such Act as precedes paragraph (a) thereof is amended by striking out " and ending with the close of June 30, 1962."

EXTENSION OF INCREASE IN FEDERAL SHARE OF PUBLIC ASSISTANCE PAYMENTS

SEC. 132. Section 303 (e) of the Social Security Amendments of 1961 (Public Law 87-64) is amended by striking out "and before July 1, 1962,".

EXTENSION OF ASSISTANCE TO REPATRIATED AMERICAN CITIZENS

SEC. 133. Subsection (d) of section 1113 of the Social Security Act is repealed.

REFUSAL OF UNEMPLOYED PARENT TO ACCEPT RETRAINING

SEC. 134. Paragraph (3) of section 407 of the Social Security Act is amended by inserting "(A)" after "provision" and by inserting before the period at the end thereof ", and (B) for denying aid to families with dependent children to any such child or relative if, and for so long as, the unemployed parent refuses without good cause to undergo any such retraining".

FEDERAL PAYMENTS FOR FOSTER CARE IN CHILD-CARE INSTITUTIONS

SEC. 135. (a) Clause (3) of paragraph (a) of section 408 of the Social Security Act is amended by inserting "or child-care institution" after "foster family home".

(b) Paragraph (b) of such section is amended by striking out "of this section in the foster family home of any individual" and inserting in lieu thereof: "of this section

"(A) in the foster family home of any individual, whether the payment therefor is made to such individual or to a public or nonprofit private childplacement or child-care agency, or

"(B) in a child-care institution, whether the payment therefor is made to such institution or to a public or nonprofit private child-placement or childcare agency, but subject to limitations prescribed by the Secretary with a view to including as 'aid to families with dependent children' in the case of such foster care in such institutions only those items which are included in such term in the case of foster care in the foster family home of an individual".

(c) Clauses (1) and (2) of paragraph (f) of such section are each amended by inserting "or child-care institution" after "foster family home".

(d) The last sentence of such section is amended by inserting before the period at the end thereof, but after the material inserted therein by section 152(b) of this Act: "; and the term 'child-care institution' means a nonprofit private childcare institution which is licensed by the State in which it is situated or has been approved, by the agency of such State responsible for licensing or approval of institutions of this type, as meeting the standards established for such licensing". LIMITATION ON DURATION OF RESIDENCE REQUIREMENTS UNDER PUBLIC ASSISTANCE

PROGRAMS

SEC. 136. (a) Clause (A) of section 2(b)(2) of the Social Security Act is amended to read as follows: “(A) in the case of applicants for old-age assistance, excludes any resident of the State who has resided therein for one year immediately preceding the application for such assistance, and".

(b) Section 402(b) of such Act is amended by striking out "or" before “(2)” and by inserting before the period at the end thereof ", or (3) who is living with a parent or other relative who has resided in the State for one year immediately preceding the application for such aid".

(c) Section 1002(b) (1) of such Act is amended to read as follows:

"(1) Any residence requirement which excludes any resident of the State who has resided therein for one year immediately preceding the application for such aid; or".

(d) Section 1402 (b) (1) of such Act is amended to read as follows:

"(1) Any residence requirement which excludes any resident of the State who has resided therein for one year immediately preceding the application for such aid; or".

ADDITIONAL FEDERAL FUNDS FOR STATES WITHOUT ANY RESIDENCE REQUIREMENTS UNDER PUBLIC ASSISTANCE PROGRAMS

SEC. 137. (a) Section 1101 (a) (8) (A) of the Social Security Act is amended by striking out "except that the Federal percentage shall in no case" and inserting in lieu thereof "except that (i) the Federal percentage (except as provided in clause (ii) shall in no case", and by inserting before the period at the end thereof ", and (ii) for purposes of determining the amount to be paid to a State under paragraph (1) or (2) of section 3(a) or 1603 (a), or under clause (1) or (2) of section 403 (a), 1003 (a), or 1403(a), the percentage for a State otherwise determined hereunder for a quarter shall be increased by one-half of 1 percentage point if no plan of such State approved under title I, IV, X, XIV, or XVI includes during such quarter, as a condition of eligibility for aid under the plan (or for old-age assistance or medical assistance for the aged in the case of the plan approved under title I), a residence requirement which excludes any individual who is in need in the State".

(b) The first sentence of section 6(c) of such Act is amended by inserting "(except as provided in clause (iii))" after "in no case" in clause (i) and after "shall" in clause (ii), and by inserting before the period at the end of such sentence", and (iii) in case of a State to which the provisions of clause (ii) of section 1101(a)(8)(A) are applicable for a quarter, the percentage otherwise determined under this subsection for such quarter shall be increased by one-half of 1 percentage point".

PART D-SIMPLIFICATION OF CATEGORIES

OPTIONAL COMBINED STATE PLAN FOR AGED, BLIND, AND DISABLED

SEC. 141. (a) The Social Security Act is amended by adding after title XV the following new title:

"TITLE XVI-GRANTS TO STATES FOR AID TO THE AGED, BLIND, OR DISABLED AND FOR MEDICAL ASSISTANCE FOR THE AGED

"SEC. 1601. For the purpose (a) of enabling each State, as far as practicable under the conditions in such State, to furnish financial assistance to aged, blind, or disabled 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 aid to the aged, blind, or disabled 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-support or self-care, 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, State plans for aid to the aged, blind, or disabled, or for medical assistance for the aged, or for aid to the aged, blind, or disabled and medical assistance for the aged. "STATE PLANS FOR AID TO THE AGED, BLIND, OR DISABLED, AND FOR MEDICAL ASSISTANCE FOR THE AGED

"SEC. 1602. (a) A State plan for aid to the aged, blind, or disabled, or for medical assistance for the aged, or for aid to the aged, blind, or disabled and medical assistance for the aged 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 an opportunity for a fair hearing before the State agency to any individual whose claim for aid or assistance under the plan is denied or is not acted upon with reasonable promptness;

"(5) provide 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 to be necessary for the proper and efficient operation of the plan;

"(6) provide that the State agency will make such reports, in such form and containing such information, as the Secretary may from time to time require, and comply with such provisions as the Secretary may from time to time find necessary to assure the correctness and verification of such reports;

"(7) provide safeguards which restrict the use or disclosure of information concerning applicants and recipients to purposes directly connected with the administration of the State plan;

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

“(9) provide, if the plan includes aid or assistance to 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;