TITLE II-GENERAL

MEANING OF TERM "SECRETARY"

SEC. 201. As used in this Act and in the provisions of the Social Security Act amended thereby, the term "Secretary", unless the context otherwise requires, means the Secretary of Health, Education, and Welfare.

EFFECTIVE DATES

SEC. 202. (a) The amendments made by sections 101 (b), 102(b) (1), 103, 106, 134, and 136 shall become effective July 1, 1963.

(b) The amendments made by section 102(c) shall be applicable in the case of fiscal years beginning after June 30, 1962.

(c) The amendments made by sections 101 (a), 102(b) (2) and (d), 108, 135, 152, and 153 shall be applicable in the case of expenditures, under a State plan approved under title I, IV, X, or XIV, of the Social Security Act, or developed as provided in part 3 of title V of such Act, as the case may be, made after June 30, 1962.

(d) The amendment made by section 109 shall be applicable in the case of expenditures, under a State plan approved under title IV of the Social Security Act, made after September 30, 1962.

(e) The amendment made by section 137 shall be applicable in the case of expenditures, under a State plan approved under title I, IV, X, XIV, or XVI of the Social Security Act, made after December 31, 1962.

(f) The amendments made by sections 105 and 107 shall be applicable in the case of expenditures under a State plan approved under title IV of the Social Security Act, made during the period beginning October 1, 1962, and ending with the close of June 30, 1967.

DETAILED SUMMARY OF PUBLIC WELFARE AMENDMENTS OF 1962

DECLARATION OF PURPOSE

The bill's purpose is to amend and improve the Federal-State public welfare programs through a new constructive approach which recognizes State responsibility and provides more flexibility for the States in the development of sound public welfare programs in the light of their needs and which emphasizes rehabilitation and other services to prevent or reduce dependency, provides incentives to assist recipients to become self-supporting and otherwise improve their condition and to States to improve their programs and provides assistance in increasing the supply of adequately trained public welfare personnel in order to accomplish the foregoing purposes.

TITLE I-PUBLIC WELFARE AMENDMENTS

PART A-IMPROVEMENT IN SERVICES TO PREVENT OR REDUCE DEPENDENCY

SERVICES AND OTHER ADMINISTRATIVE COSTS UNDER PUBLIC ASSISTANCE PROGRAMS State plan provisions

Under the existing provisions of titles I, IV, X, and XIV of the Social Security Act, States are required to include in their State plans a description of the services, if any, which the State public assistance agency makes available to applicants and recipients to help them attain self-care or (except in title I-oldage assistance) self-support or (in the case of title IV-aid to dependent children) to maintain and strengthen family life for children. Also included must be a description of the steps taken in the provision of these services to assure maximum utilization of other agencies providing similar or related services.

The bill would substitute for this requirement a requirement that the State agency make available to applicants and recipients at least those services to help them to attain or retain capability for self-care or (except in title I) selfsupport, or to maintain and strengthen family life for children (in the case of title IV), which are prescribed by the Secretary of Health, Education, and Welfare (hereinafter in this summary referred to as the “Secretary”). In the

case of title IV the self-care or self-support services would also have to be provided to the relatives with whom dependent children are living. The State plan would also have to include a description, as under existing law, of the steps taken to assure maximum utilization of other agencies in the provision of the required services and any other services made available under the plan.

These new requirements would not become effective until July 1, 1963. Federal financial participation in costs of services

Under existing law the Federal share of administrative expenses of carrying out the State plans approved under title I, IV, X, or XIV is 50 percent. This includes, specifically, the cost of services provided by the staff of the State or local public assistance agency to applicants and recipients to help them attain self-care or (except in title I) self-support, and (in the case of title IV) to help the relatives with whom dependent children are living to attain self-support or self-care or to maintain and strengthen family life for the children. The bill would change this in several respects:

1. The Federal share would be increased from 50 to 75 percent in the case of expenditures, for the necessary costs of proper and efficient administration of the approved State plan which are—

(a) for services which, as indicated above, are required by the Secretary to be made available to applicants or recipients;

(b) for other services provided to applicants or recipients and specified by the Secretary as likely to prevent or reduce dependency;

(c) for those services, described in (a) and (b), above, which are prescribed by the Secretary as appropriate for individuals who (within the period or periods prescribed by the Secretary) have been or are likely to become applicants or recipients;

(d) for the training of personnel employed or preparing for employment with the State or local public assistance agency.

2. Federal payment would be authorized to cover 50 percent of expendi tures (not included in the provisions described above), for the necessary costs of the proper and efficient administration of the approved State plan, which are for services for individuals who are or have been or are likely to become applicants or recipients.

3. Services for which Federal funds would be authorized as described above could be provided not only by the staff of the State or local public assistance agency, as under existing law. They could also be provided—

(a) by the State public assistance agency through contracts with nonprofit private agencies;

(b) pursuant to agreement with the State agency, by a State health or vocational rehabilitation agency or by any other appropriate State agency, either through their own staffs or through contracts with nonprofit private agencies or local public agencies.

However, the provision of services described in 3 (a) and (b) would be subject to limitations prescribed by the Secretary and they could be so provided only if, in the judgment of the State agency, they cannot be as economically or effectively provided by the staff of the State or local agency and they are not otherwise reasonably available to individuals in need of them.

The portion of the expenditures for services to which the 75-percent Federal share would be applicable and the portion of the expenditures for services to which the 50-percent Federal share would be applicable would be determined in accordance with methods and procedures permitted by the Secretary.

These changes relating to the Federal share of the cost of services and to Federal participation in the cost of services for persons who have been or are likely to become applicants or recipients would be applicable in the case of expenditures under approved State plans made after June 30, 1962.

EXPANSION AND IMPROVEMENT OF CHILD WELFARE SERVICES

Increase in authorization of appropriations

Under existing law (pt. 3 of title V of the Social Security Act), $25 million per year is authorized to be appropriated for grants to the States for child welfare services. The bill would increase the authorization to $30 million for fiscal 1963, $35 million for fiscal 1964. $40 million each for fiscal 1965 and 1966, $45 million each for fiscal 1967 and 1968, and $50 million per year thereafter.

Coordination with dependent children program and extension of child welfare services

Part 3 of title V of the Social Security Act now provides for grants to States for the use of cooperating State public welfare agencies in carrying out the State plan developed jointly by the State agency and the Secretary. The bill would amend the law to require

1. Inclusion in the plan of provision for coordination between the services provided under it and those which are provided for children under the State plan relating to dependent children which is approved under title IV of the Social Security Act.

2. Inclusion in the plan, if it provides for day care, of provision for cooperative arrangements with the State health and education agencies to assure maximum utilization of them in the provision of health services and education for children receiving such day care.

3. A showing by the State that it is extending the provision of welfare services in the State with a view to making child-welfare services available throughout the State to all children in need of them by July 1, 1975; the services would be provided by the staff of the State or local public welfare agency who would, to the extent feasible, be trained child welfare personnel; in providing for this extension of services priority would be given to communities with the greatest need for them, after considering their relative financial need.

These new requirements would not become applicable until July 1, 1963. Day care

The bill would amend part 3 of title V of the Social Security Act to provide that, effective for fiscal years beginning after June 30, 1962, the excess above $25 million, up to a maximum of $10 million, of the annual appropriation for child welfare services shall be earmarked for the provision of day care under the State child welfare services plan. (In fiscal 1963, the maximum earmarked could only be $5 million since only $30 million is authorized to be appropriated for that fiscal year for child welfare services.)

The earmarked funds would be allotted among the States on the basis of the population aged 21 and the State's allotment percentage (which varies between 30 and 70 percent in accordance with the relative State per capita income), except that there would be a minimum State allotment of $10,000. The portion of the allotment of a State which the State certifies it would not use could be reallotted among other States needing additional funds and able to use them in providing day care under the State plan. The reallotment would be made on the basis of the need for the additional funds, after taking into consideration the population under 21 and the relative per capita income of the States needing such additional funds.

Definition of child welfare services

The purposes for which grants to the States, under part 3 of title V, could be used would be clarified and somewhat broadened through the addition of a definition of child-welfare services. The terms "child" and "youth" would also be defined as anyone under the age of 21.

This provision would be effective for expenditures made under approved State plans after June 30, 1962.

WELFARE SERVICES FOR EACH CHILD UNDER THE DEPENDENT CHILDREN PROGRAM

The bill would add a new provision to title IV of the Social Security Act requiring a State plan, to be approved under that title, to provide for the development and application of a program for welfare and related services for each recipient child, which are necessary in the light of the particular home conditions and other needs of the child. The plan would also have to provide for coordination between the program so developed and the other services provided for children under the State plan with the child welfare services plan under part 3 of title V of the Social Security Act, with a view to providing services which would best promote the welfare of such children and their families.

This new provision would not become effective until July 1, 1963.

TECHNICAL AMENDMENTS TO REFLECT EMPHASIS ON REHABILITATION AND OTHER SERVICES

To reflect the emphasis being placed on rehabilitation and other services by the other amendments in the bill, the name for the State plans under title IV of the Social Security Act and of the assistance provided under such plans would be changed. Henceforth, the State plans approved under title IV would be known as State plans for aid and services to needy families with children (presently designated as "State plans for aid to dependent children"). The assistance provided under the approved plans would be designated as aid to families with dependent children instead of aid to dependent children.

Also, to reflect this new emphasis, the provisions of sections 401, 1001, and 1401, which state the purposes of titles IV, X, and XIV, respectively, would be amended to include specific reference to rehabilitation services and the purpose clause of section 1 of the act would be changed so as to reflect the intention that services be provided not only for those receiving old-age assistance, but also for those receiving medical care for the aged.

COMMUNITY WORK AND TRAINING PROGRAMS

The bill amends title IV of the Social Security Act by adding a new section authorizing Federal financial participation in expenditures as aid to families with dependent children in the form of payments for work performed by any relative or relatives (18 years of age or older) with whom a dependent child is living. Federal participation in these payments could be made only under limited conditions designed to assure protection of the health and welfare of the dependent children and their relatives:

1. The work must be performed for the State public assistance agency or any other public agency under a program (which need not be in effect throughout the State) administered by or under the supervision of the State public assistance agency.

2. There must be State financial participation in these expenditures. 3. The State plan must include provisions which give reasonable assurance that

(a) appropriate health, safety, and other conditions of work will be maintained;

(b) the rates of pay will be not less than the applicable minimum rate under State law for the same type of work, if there is any such rate, and not less than the prevailing wage rates on similar work in the community;

(c) the work projects will serve a useful public purpose and not displace regular workers or be a substitute for work that would otherwise be performed by employees of public or private agencies, institutions, or organizations;

(d) the additional expenses of work will be considered in determining the worker's needs;

(e) the worker will have reasonable opportunities to seek regular employment and secure appropriate training or retraining and will be provided with protection under the State workmen's compensation law or similar protection;

(f) aid will not be denied because of a relative's refusal with good cause to perform work under the program.

4. The State plan would also have to include provision for―

(g) cooperative arrangements with the public employment offices and with the State vocational education and adult education agency or agencies looking toward employment and occupational training of the relatives and maximum use of public vocational or adult education services and facilities in their training or retraining;

(h) assuring appropriate arrangements for the care and protection of the dependent child during the relative's absence from the home in order to perform the work under the community work and training programs; (i) such other provisions as the Secretary finds necessary to assure that the operation of the community work and training programs will not interfere with the objectives of title IV of the Social Security Act.

5. A State participating in such programs would also have to provide (in its State plan) that there will be no adjustment or recovery by the State or any locality on account of any payments which are correctly made for the work.

The cost of administration of the State plan approved under title IV of the act for which Federal funds are paid would not include the cost of making or acquiring materials or equipment in connection with work under the community work and training programs or the cost of supervision of that work. Also, such administrative costs could only include those costs attributable to the community work and training programs which were permitted by the Secretary.

The provisions on community work and training programs would be applicable only for purposes of expenditures under approved State plans during the period October 1, 1962, to June 30, 1967. Prior to January 1, 1967, a report would have to be submitted to the President, for transmission to the Congress, on the administration of the new provisions and the experiences of the States under such programs, together with the Secretary's recommendations on the continuation of and modifications in these provisions.

INCENTIVES FOR EMPLOYMENT THROUGH CONSIDERATION OF EXPENSES IN EARNING

INCOME

Under current Federal policy, while States are required to consider any income and resources (with certain exclusions in the case of title X of the Social Security Act) in determining need, they are encouraged but not required to take into consideration expenses incurred in earning income. All public assistance titles of the act would be changed by the bill to require the consideration of necessary expenses that may reasonably be attributed to earning income. changes would not become effective until July 1, 1963.

PROTECTIVE PAYMENTS UNDER DEPENDENT CHILDREN PROGRAM

These

Section 406(b) of the Social Security Act defines aid to dependent children as including medical or remedial care for dependent children and their relatives, in addition to money payments. The bill would amend this section of the law to include also protective payments-payments made to another person on behalf of the dependent child and the relative, and relative's spouse, with whom the child is living, under certain conditions. (Public assistance payments on behalf of an eligible person to a judicially appointed legal representative are authorized under existing law (sec. 1111 of the Social Security Act).)

The payee would have to be someone who is, as determined in accordance with standards prescribed by the Secretary, interested in the welfare of the child and relative, and the State plan (approved under title IV) under which payments are made would have to include provision for-

(a) determination by the State agency that payments in this form are necessary because the relative is so unable to manage funds that it would be contrary to the child's welfare to make payments to such relative;

(b) meeting 100 percent of the need of eligible persons under the plan; (c) special efforts to improve the ability of the relative to manage funds, and periodical review of the situation to determine whether such payments to another interested person are still necessary-and with provision for judicial appointment of a guardian or legal representative if the need for payments to another interested person continues beyond a period specified by the Secretary;

(d) opportunity for a fair hearing before the State agency on the determination that payments to another interested person on behalf of the child and relative are necessary; and

(e) aid in the form of foster family home care on behalf of children who are removed from the home of a relative as a result of a judicial determination that continuation in the home would be contrary to the welfare of the child (as provided for in sec. 408 of the Social Security Act).

For purposes of determining the maximum which is payable with respect to expenditures under the State plan approved under title IV of the Social Security Act, any number of individuals, with respect to whom payments are made to another interested person under this new provision, which is in excess of one-half