of 1 percent of the other recipients of aid under the plan in any month could not be counted as recipients of such aid.

As in the case of the new provisions on community work and training programs, the new provisions on protective payments would be applicable only for purposes of expenditures under approved State plans during the period October 1, 1962, to June 30, 1967; and the Secretary would be required to submit a report to the President, for submission to Congress prior to January 1, 1967, on the administration of the new provisions relating to protective payments and the experience of the States in making such payments, together with the Secretary's recommendations for continuation of or modifications in these provisions.

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

Under the existing provisions of the Social Security Act (sec. 408), provision is made for Federal financial participation in the cost of foster care for children placed in foster family homes because of a court determination that continuation in the home of one of the designated relatives would be contrary to the child's welfare. Provision would be made by the bill for the continuation or resumption of aid under the dependent children program for the relative and the spouse (if living with him) from whose home the child has been so removed when it has been determined by the State agency that continuation or resumption of cash assistance or medical care payments for the relative will bring about improvement of home conditions so as to enable the child to be returned to his own home. This would apply, however, only where the child was a dependent child by reason of the unemployment or physical or mental incapacity of a parent.

This amendment would be effective in the case of expenditures under approved State plans made after June 30, 1962.

AID FOR SPOUSE WITH WHOM DEPENDENT CHILD IS LIVING

Under existing law (sec. 406 (b) of the Social Security Act), Federal financial participation is provided in the costs of money payments and medical care for dependent children, including such payments and care to meet the needs of the relative with whom such a child is living. The bill would provide for such financial participation also in money payments and medical care to meet the needs of the spouse of such relative if such spouse is living with him and the child is a dependent child by reason of the unemployment or incapacity of a parent. This amendment would apply in the case of expenditures under approved State plans made after September 30, 1962.

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

INCREASE IN ADEQUATELY TRAINED WELFARE PERSONNEL

Title IV of the Social Security Act would be amended to authorize funds to train people to provide services for work primarily with families with an unmarried or deserting parent or in preserving or strengthening family life. The training, as well as the establishment and maintenance of fellowships and traineeships, would be accomplished by the Secretary directly or through grants to or contracts with public or nonprofit private institutions of higher learning for persons employed or preparing for employment in the administration of State plans approved under title IV. For this same purpose, special courses of study or short seminars (of not more than 1 year's duration) could be provided directly or through grants to or contracts with public or nonprofit agencies or institutions.

To the extent found necessary, the Secretary could prescribe requirements to assure repayment of fellowships and traineeships if an individual fails to work a prescribed period of time in a Federal, State, or local agency administering the program authorized under title IV. The Secretary might relieve the individual of this obligation to the extent that its enforcement would be inequitable or contrary to the purposes of any of the public welfare programs.

The authorization of appropriations to carry out this training program would be effective beginning with fiscal 1963.

The present law (sec. 526(a) of the Social Security Act), which now authorizes grants for research and demonstrations in the field of child welfare, would be amended by the bill so as to add authorization for grants for special projects for training personnel in the field of child welfare. These special projects could also include traineeships.

Further appropriations under section 705 of the Social Security Act, now authorized through fiscal 1963 for grants to States to increase the number of adequately trained public welfare personnel, would be prohibited after the current fiscal year.

ADVISORY COUNCIL ON PUBLIC WELFARE

The bill would amend the Social Security Act to provide for establishment from time to time of an Advisory Council on Public Welfare. The first one would be appointed in 1964, and would be directed to report to the Secretary by July 1, 1966. The Council would review and make recommendations with respect to administration of the Federal-State public welfare programs and with respect to the relationship between the Federal-State public assistance programs and the old-age, survivors, and disability insurance program, among other things (such as the relative Federal and State fiscal capacities).

The Council would have 12 members representative of various interests concerned with public and nonprofit private welfare programs.

The Secretary could also appoint advisory committees to advise him on his functions under the Social Security Act.

Compensation at rates of up to $75 per day, plus travel expenses and per diem in lieu of subsistence, would be authorized for members of the Advisory Council or any advisory committee. Such members would also be exempted from the application of certain conflict-of-interest laws; but this exemption would not extend to salary payments from anyone other than the appointee's employer at the time of his appointment or to the prosecution of any claim against the Government, during his appointment, on any matter with which he was concerned during his appointment.

WAIVER OF STATE PLAN REQUIREMENTS FOR DEMONSTRATIONS

The Secretary would be authorized under the bill to waive any of the State plan requirements under any of the public assistance titles of the Social Security Act when necessary to carry out any experimental, pilot, or demonstration project which may promote the objectives of any of such titles.

The costs of any such project in which the Federal Government would not otherwise participate financially under any of such titles or under section 1110 of the Social Security Act (relating to grants, contracts, and jointly financed arrangements for research and demonstration projects in the public welfare and related fields) could be included, for purposes of such participation, as expenditures under, or for the administration of, the State plan approved under any of such titles, but only for the period and to the extent prescribed by the Secretary.

Any remaining costs not covered as provided above, could be met from the appropriations for payments to States under any of such public assistance titles of the act, but not more than $2 million of such appropriations could be used for this purpose in any fiscal year, and then, only during the period up to July 1, 1967.

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

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

The temporary (expiring June 30, 1962) provision enacted in 1961 (sec. 407 of the Social Security Act), authorizing Federal financial participation under title IV of the Social Security Act in expenditures for aid to children who are dependent by reason of the unemployment of a parent, would be extended without time limitation by the bill. Under the law in effect prior to the 1961 amendment, such participation was limited to cases where the dependency was attributable to the death, continued absence, or incapacity of a parent.

Also extended indefinitely by the bill would be the similarly temporary provision enacted in 1961, authorizing Federal financial participation in such aid in the form of foster care in foster family homes for children removed from the home of a relative because of a judicial determination that continuation in that home would be contrary to the welfare of the child.

EXTENSION OF INCREASE IN FEDERAL SHARE OF PUBLIC ASSISTANCE PAYMENTS

The temporary (expiring June 30, 1962) $1 increase in the maximum payment per recipient in which the Federal Government will participate financially, and in the portion of the payment to which the 80-percent Federal share is applicable, would also be extended indefinitely. (A smaller increase is provided for Puerto Rico, Virgin Islands, and Guam under the formula applicable to them.)

EXTENSION OF ASSISTANCE TO REPATRIATED AMERICAN CITIZENS

The existing law (sec. 1113 of the Social Security Act) authorizes temporary assistance, and the development of plans for providing such assistance, for American citizens and their dependents returned from foreign countries because of destitution, illness, war, or similar crisis, who are without available resouces. Such assistance may only be provided through June 30, 1962. The bill would repeal this time limitation.

REFUSAL OF UNEMPLOYED PARENT TO ACCEPT RETRAINING

The provision (sec. 407) of the Social Security Act authorizing Federal sharing under title IV in aid to children who are dependent by reason of a parent's unemployment would be amended by the bill to require denial of such aid for refusal by the parent to undergo retraining available from public vocational education facilities. This amendment would not become effective until July 1, 1963.

FEDERAL PAYMENTS FOR FOSTER CARE IN CHILD-CARE INSTITUTIONS

The provision (sec. 408) of the Social Security Act authorizing Federal sharing under title IV in foster care of children who are removed from the home of a relative because of a judicial determination that the child's continuation therein would be contrary to his welfare applies only when the child is placed in the foster family home of an individual. The bill would amend this provision to authorize such sharing where the child is placed in a nonprofit private child-care institution. As under existing law, the responsibility for the child's placement and care would have to be in the State or local agency administering the State plan approved under title IV (or, under an amendment described below, in a local public agency supervised by such State agency).

The payment by the State or local agency for foster care in a foster family home or a child-care institution could be made directly or through a public or nonprofit private child-placement or child-care agency. However, the payment to the institution would be subject to limitations prescribed by the Secretary with a view to covering only those items of cost which are covered in the case of care in the foster family home of an individual.

A child-care institution to which such payments could be made would have to be licensed by the State or approved by the State agency responsible for licensing institutions of this type. A similar requirement already applies to foster family homes.

This amendment would apply in the case of expenditures under approved State plans made after June 30, 1962.

LIMITATIONS ON DURATION OF RESIDENCE REQUIREMENTS UNDER PUBLIC ASSISTANCE

PROGRAMS

Under the existing titles I, X, and XIV of the Social Security Act, a State may not impose a residence requirement which excludes any individual who has been a resident for 5 of the last 9 years and continuously for the year preceding application for aid. The bill would prohibit imposition of any residence requirement other than the 1-year requirement. The present prohibition against any duration of residence requirement for medical assistance for the aged would be continued without change.

A comparable change would be made in title IV of the act. That title now prohibits any residence requirement which excludes any child who has been a resident for the year preceding the application for aid, or who was born in the State within the preceding year if the relative with whom he lives was a resident for 1 year before the birth. The bill would amend this provision to prohibit also exclusion on grounds of residence of any child living with a relative who has been a resident for the year preceding the application for aid.

These amendments would not become effective until July 1, 1963.

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

The bill would provide for increasing the Federal share of that portion of expenditures under State plans approved under title I, IV, X, or XIV, or the new title XVI, for which the Federal share is varied (from 50 to 65 percent, in accordance with relative State per capita income) by one-half of 1 percentage point in the case of any State which, under none of such plans (including the medical assistance for the aged portion of the plan approved under title I) imposes any residence requirement which excludes any individual who is in need in the State.

In the case of Puerto Rico, the Virgin Island, and Guam, for which the Federal share of their expenditures is a flat 50 percent, their Federal share would also be increased by one-half of 1 percentage point.

A similar increase in the case of any such State would apply to its Federal medical percentage the percentage which determines the Federal share of State expenditures for medical assistance for the aged. (This precentage varies between 50 and 80 percent in accordance with relative State per capita income.) These amendments would apply in the case of expenditures under approved State plans made after December 31, 1962.

PART D-SIMPLIFICATION OF CATEGORIES

OPTIONAL COMBINED STATE PLAN FOR AGED, BLIND, AND DISABLED

For States that choose to operate their adult public assistance programs under a single plan, there would be an option of combining aid to the aged, blind, and disabled, and medical assistance for the aged, under a new title XVI which would be added to the Social Security Act by the bill. A State electing to combine these programs and and to receive payment under the new title XVI for any period could not receive payment under title I, X, or XIV for the same or any subsequent period. Payments would be authorized under the new title XVI beginning October 1, 1962.

With but few exceptions, the State plan requirements, Federal matching, and other provisions which are common to titles I. X, and XIV of the act are incorporated in the new title, and those provisions of titles I, X, or XIV which are not common to the other two are applicable only to the category presently covered by them. Thus, the provision in title X on disregarding earned income of blind individuals is applicable under the new title only to such individuals; the prohibition against any duration of residence requirement in the case of medical assistance for the aged under title I would apply under the new title XVI only for purposes of medical assistance for the aged. (The new 1-year limitation on residence requirements under title 1, X, and XIV, of course, would apply under the provisions of the new title.)

The provisions of title I authorizing separate and additional Federal funds for medical care would apply in the case of medical care for all individuals included under a State plan approved under the new title. Also, the provisions of the present definition of old-age assistance, including medical care (but not cash assistance) for the first 42 days of an individual's stay in a medical institution as a result of a diagnosis of tuberculosis or a psychosis, would apply to all individuals under the State plan approved under the new title. The bill would also extend several provisions of the Social Security Act now applicable to titles, I, IV, X, and XIV to the new title XVI. Section 1109, relating to the disregarding of earned income of blind individuals in deter

mining the need of other individuals, and section 1111, permitting public assistance payments to judicially appointed legal representatives on behalf of eligible persons, would be made applicable to the new title XVI; so also would section 618 of the Revenue Act of 1951 which relates to public access to information about public assistance recipients under certain conditions.

PART E-MISCELLANEOUS AND TECHNICAL AMENDMENTS

REMOVAL OF LIMITATION ON TOTAL PUBLIC ASSISTANCE PAYMENTS TO PUERTO RICO, THE VIRGIN ISLANDS, AND GUAM

Under section 1108 of the Social Security Act, separate dollar limitations are imposed on the total of the payments which may be made to Puerto Rico, the Virgin Islands, and Guam during any fiscal year under titles I, IV, X, and XIV. These limitations would be repealed by the bill effective for fiscal years after fiscal 1962.

RESPONSIBILITY FOR PLACEMENT AND FOSTER CARE OF DEPENDENT CHILDREN

The bill would amend section 408 of the Social Security Act so as to authorize Federal financial participation in foster care expenditures for children removed from the home of a relative where responsibility for their placement and care is in any local public agency supervised by the State public assistance agency, as well as where (as under existing law) such responsibility is in the State or local public assistance agency.

This section of the act would also be amended to include as a foster family home of an individual one which is approved by the State public-welfare agency (participating in the child-welfare services program authorized by title V of the act) as meeting applicable standards, as well as (the existing law) one licensed by the State or approved by the State licensing agency. These amendments would apply in the case of expenditures under approved State plans made after June 30, 1962.

PAYMENTS TO RELATIVE OF CHILD WHEN CHILD IS DEPENDENT

Section 406(b) of the Social Security Act includes as aid under the approved State plan for dependent children payments and medical care for any month to meet the needs of the relative with whom a dependent child lives, but only if the child receives money payments under the plan for such month. The bill would amend this section of the act to delete this requirement, thereby including the relative's needs when the child receives aid under the plan whether in the form of money payments or medical care.

This amendment would apply in the case of expenditures under approved State plans made after June 30, 1962.

FEDERAL PERCENTAGE FOR TERRITORIES

The bill would effect a technical amendment in the definition of Federal percentage (sec. 1101 (a) (8) of the Social Security Act) by making it applicable also to Puerto Rico, the Virgin Islands, and Guam.

DEFINITIONS OF STATE AND UNITED STATES

Another technical amendment in the bill is to make the definitions of State and United States (sec. 1101 (a) (1) and (2) of the Social Security Act), now applicable for purposes of titles I, IV, V, VII, X, and XIV, applicable also to the new title XVI and to the title in which the definitions appear (XI).

EFFECTIVE DATES

The effective dates of the various amendments made by the bill are referred to in connection with the discussion of the amendments.