September 13, 1960 Pub. Law 86-778 TABLE OF CONTENTS-Continued TITLE VII-MISCELLANEOUS Sec. 701. Investment of Trust Funds. Sec. 702. Survival of actions. Sec. 703. Periods of limitation ending on nonwork days. Sec. 704. Advisory Council on Social Security Financing. Sec. 705. Medical care guides and reports for public assistance and medical assistance for the aged. Sec. 706. Temporary extension of certain special provisions relating to State plans for aid to the blind. Sec. 707. Maternal and child welfare. Sec. 708. Amendment preserving relationship between railroad retirement and old-age, survivors, and disability insurance. Sec. 709. Meaning of term "Secretary", Sec. 710. Aid to the blind. TITLE I-COVERAGE EXTENSION OF TIME FOR MINISTERS TO ELECT COVERAGE SEC. 101. (a) Clause (B) of section 1402 (e) (2) of the Internal 26 USC 1402. Revenue Code of 1954 (relating to time for filing waiver certificate) is amended by striking out "1956" and inserting in lieu thereof "1959". (b) Section 1402(e) (3) of such Code (relating to effective date of Post, p. 927. certificate) is amended to read as follows: "(3) (A) EFFECTIVE DATE OF CERTIFICATE.-A certificate filed pursuant to this subsection shall be effective for the taxable year immediately preceding the earliest taxable year for which, at the time the certificate is filed, the period for filing a return (including any extension thereof) has not expired, and for all succeeding taxable years. An election made pursuant to this subsection shall be irrevocable. "(B) Notwithstanding the first sentence of subparagraph (A), if an individual filed a certificate on or before the date of enactment of this subparagraph which (but for this subparagraph) is effective only for the first taxable year ending after 1956 and all succeeding taxable years, such certificate shall be effective for his first taxable year ending after 1955 and all succeeding taxable years if "(i) such individual files a supplemental certificate after the date of enactment of this subparagraph and on or before April 15, 1962, (ii) the tax under section 1401 in respect of all such in- 26 USC 1401. his first taxable year ending after 1955 is paid on or before such (iii) in any case where refund has been made of any 26 USC 6611. The provisions of section 6401 shall not apply to any payment 26 USC 6401. or repayment described in this subparagraph." Pub. Law 86-778 September 13, 1960 (c) Section 1402 (e) of such Code is further amended by adding at the end thereof the following new paragraph: "(5) OPTIONAL PROVISION FOR CERTAIN CERTIFICATES FILED ON OR BEFORE APRIL 15, 1962.-In any case where an individual has derived earnings, in any taxable year ending after 1954 and before 1960, from the performance of service described in subsection (c) (4), or in subsection (c) (5) (as in effect prior to the enactment of this paragraph) insofar as it related to the performance of service by an individual in the exercise of his profession as a Christian Science practitioner, and has reported such earnings as self-employment income on a return filed on or before the date of the enactment of this paragraph and on or before the due date prescribed for filing such return (including any extension thereof) "(A) a certificate filed by such individual (or a fiduciary acting for such individual or his estate, or his survivor within the meaning of section 205 (c) (1) (C) of the Social Security Act) after the date of the enactment of this paragraph and on or before April 15, 1962, may be effective, at the election of the person filing such certificate, for the first taxable year ending after 1954 and before 1960 for which such a return was filed, and for all succeeding taxable years, rather than for the period prescribed in paragraph (3), and "(B) a certificate filed by such individual on or before the date of the enactment of this paragraph which (but for this subparagraph) is ineffective for the first taxable year ending after 1954 and before 1959 for which such a return was filed shall be effective for such first taxable year, and for all succeeding taxable years, provided a supplemental certificate is filed by such individual (or a fiduciary acting for such individual or his estate, or his survivor within the meaning of section 205 (c) (1) (C) of the Social Security Act) after the date of the enactment of this paragraph and on or before April 15, 1962, but only if (i) the tax under section 1401 in respect of all such individual's self-employment income (except for underpayments of tax attributable to errors made in good faith), for each such year ending before 1960 in the case of a certificate described in subparagraph (A) or for each such year ending before 1959 in the case of a certificate described in subparagraph (B), is paid on or before April 15, 1962, and "(ii) in any case where refund has been made of any such tax which (but for this paragraph) is an overpayment, the amount refunded (including any interest paid under section 6611) is repaid on or before April 15, 1962. The provisions of section 6401 shall not apply to any payment or repayment described in this paragraph." (d) In the case of a certificate or supplemental certificate filed pursuant to section 1402 (e) (3) (B) or (5) of the Internal Revenue Code of 1954 (1) for purposes of computing interest, the due date for the payment of the tax under section 1401 which is due for any taxable year ending before 1959 solely by reason of the filing of a certificate which is effective under such section 1402 (e) (3)(B) or (5) shall be April 15, 1962; September 13, 1960 Pub. Law 86-778 74 STAT. 928. (2) the statutory period for the assessment of any tax for any such year which is attributable to the filing of such certificate shall not expire before the expiration of 3 years from such due date; and (3) for purposes of section 6651 of such Code (relating to 26 USC 6651. addition to tax for failure to file tax return), the amount of tax required to be shown on the return shall not include such tax under section 1401. 26 USC 1401. (e) The provisions of section 205 (c) (5) (F) of the Social Security Post, p. 933. Act, insofar as they prohibit inclusion in the records of the Secretary of Health, Education, and Welfare of self-employment income for a taxable year when the return or statement including such income is filed after the time limitation following such taxable year, shall not be applicable to earnings which are derived in any taxable year ending before 1960 and which constitute self-employment income solely by reason of the filing of a certificate which is effective under section 1402 (e) (3) (B) or (5) of the Internal Revenue Code of 1954. (f) The amendments made by this section shall be applicable (except as otherwise specifically indicated therein) only with respect to certificates (and supplemental certificates) filed pursuant to section 1402(e) of the Internal Revenue Code of 1954 after the date of the enactment of this Act; except that no monthly benefits under title II of the Social Security Act for the month in which this Act is enacted or any prior month shall be payable or increased by reason of such amendments, and no lump-sum death payment under such title shall be payable or increased by reason of such amendments in the case of any individual who died prior to the date of the enactment of this Act. STATE AND LOCAL GOVERNMENTAL EMPLOYEES Delegation by Governor of Certification Functions Ante, pp. 926,927. 26 USC 1402. 42 USC 401 et seq. SEC. 102. (a) (1) Section 218 (d) (3) of the Social Security Act is 42 USC 418. amended by inserting ", or an official of the State designated by him for the purpose," after "the governor of the State". (2) Section 218(d) (7) of such Act is amended by inserting "(or an official of the State designated by him for the purpose)" after "by the governor", and by inserting "(or the official so designated)" after "if the governor". Employees Transferred From One Retirement System to Another (b) (1) Section 218(d) (6) (C) of the Social Security Act is further amended by adding at the end thereof the following new sentence: "If, in the case of a separate retirement system which is deemed to exist by reason of subparagraph (A) and which has been divided into two divisions or parts pursuant to the first sentence of this subparagraph, individuals become members of such system by reason of action taken by a political subdivision after coverage under an agreement under this section has been extended to the division or part thereof composed of positions of individuals who desire such coverage, the positions of such individuals who become members of such retirement system by reason of the action so taken shall be included in the division or part of such system composed of positions of members who do not desire such coverage if (i) such individuals, on the day before becoming such members, were in the division or part of another separate retirement system (deemed to exist by reason of subparagraph (A)) composed of positions of members of such system who do not desire coverage under an agreement under this 74 STAT. 929. 42 USC 418. Pub. Law 86-778 September 13, 1960 section, and (ii) all of the positions in the separate retirement system of which such individuals so become members and all of the positions in the separate retirement system referred to in clause (i) would have been covered by a single retirement system if the State had not taken action to provide for separate retirement systems under this paragraph. (2) The amendment made by paragraph (1) shall apply in the case of transfers of positions (as described therein) which occur on or after the date of enactment of this Act. Such amendment shall also apply in the case of such transfers in any State which occurred prior to such date, but only upon request of the Governor (or other official designated by him for the purpose) filed with the Secretary of Health, Education, and Welfare before July 1, 1961; and, in the case of any such request, such amendment shall apply only with respect to wages paid on and after the date on which such request is filed. Retroactive Coverage (c) (1) Section 218(f) (1) of the Social Security Act is amended by striking out all that follows the first semicolon and inserting in lieu thereof the following: "except that such date may not be earlier than the last day of the sixth calendar year preceding the year in which such agreement or modification, as the case may be, is agreed to by the Secretary and the State." (2) Section 218 (d) (6) (A) of such Act is amended by adding at the end thereof the following new sentence: "Where a retirement system covering positions of employees of a State and positions of employees of one or more political subdivisions of the State, or covering positions of employees of two or more political subdivisions of the State, is not divided into separate retirement systems pursuant to the preceding sentence or pursuant to subparagraph (C), then the State may, for purposes of subsection (f) only, deem the system to be a separate retirement system with respect to any one or more of the political subdivisions concerned and, where the retirement system covers positions of employees of the State, a separate retirement system with respect to the State or with respect to the State and any one or more of the political subdivisions concerned." (3) The amendment made by paragraph (1) shall apply in the case of any agreement or modification of an agreement under section 218 of the Social Security Act which is agreed to on or after January 1, 1960; except that in the case of any such agreement or modification agreed to before January 1, 1961, the effective date specified therein shall not be earlier than December 31, 1955. The amendment made by paragraph (2) shall apply in the case of any such agreement or modification which is agreed to on or after the date of the enactment of this Act. Policemen and Firemen (d) Section 218 (p) of the Social Security Act is amended by inserting "Hawaii," after "Georgia,"; and by striking out "Washington, or Territory of Hawaii" and inserting in lieu thereof "Virginia, or Washington". September 13, 1960 Pub. Law 86-778 74 STAT. 930. Limitation on States' Liability for Employer (and Employee) Contributions in Certain Cases (e) (1) Section 218 (e) of the Social Security Act is amended by 42 USC 418. inserting "(1)" immediately after "(e)", by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, and by adding at the end thereof the following new paragraph: "(2) Where "(A) an individual in any calendar year performs services to which an agreement under this section is applicable (i) as the employee of two or more political subdivisions of a State or (ii) as the employee of a State and one or more political subdivisions of such State; and "(B) such State provides all of the funds for the payment of those amounts referred to in paragraph (1)(A) which are equivalent to the taxes imposed by section 3111 of the Internal 26 USC 3111. Revenue Code of 1954 with respect to wages paid to such individual for such services; and "(C) the political subdivision or subdivisions involved do not reimburse such State for the payment of such amounts or, in the case of services described in subparagraph (A) (ii), for the payment of so much of such amounts as is attributable to employment by such subdivision or subdivisions; then, notwithstanding paragraph (1), the agreement under this section with such State may provide (either in the original agreement or by a modification thereof) that the amounts referred to in paragraph (1)(A) may be computed as though the wages paid to such individual for the services referred to in clause (A) of this paragraph were paid by one political subdivision for services performed in its employ; but the provisions of this paragraph shall be applicable only where such State complies with such regulations as the Secretary may prescribe to carry out the purposes of this paragraph. The preceding sentence shall be applicable with respect to wages paid after an effective date scified in such agreement or modification, but in no event with respect to wages paid before (i) January 1, 1957, in the case of an agreement or modification which is mailed or delivered by other means to the Secretary before January 1, 1962, or (ii) the first day of the year in which the agreement or modification is mailed or delivered by other means to the Secretary, in the case of an agreement or modification which is so mailed or delivered on or after January 1, 1962.” (2) Section 218(f) (1) of such Act is amended by striking out "Any Ante, p. 929. agreement" and inserting in lieu thereof "Except as provided in subsection (e) (2), any agreement". Statute of Limitations for State and Local Coverage (f) (1) Section 218 of the Social Security Act is amended by adding at the end thereof the following new subsections: "Time Limitation on Assessments "(q) (1) Where a State is liable for an amount due under an agreement pursuant to this section, such State shall remain so liable until the Secretary is satisfied that the amount due has been paid to the Secretary of the Treasury. "(2) Notwithstanding paragraph (1), a State shall not be liable for an amount due under an agreement pursuant to this section, with respect to the wages paid to individuals, after the expiration of the latest of the following periods |