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42 USC 304.

42 USC 306.

Pub. Law 86-778

74 STAT. 991.

September 13, 1960

(e) Section 4 of such Act is amended by striking out "State plan for old-age assistance which has been approved" and inserting in lieu thereof "State plan which has been approved under this title".

(f) (1) Section 6 of such Act is amended by striking out "but does not include" and all that follows and inserting in lieu thereof “but does not include

"(1) any such payments to or care in behalf of any individual who is an inmate of a public institution (except as a patient in a medical institution) or any individual who is a patient in an institution for tuberculosis or mental diseases, or

"(2) any such payments to any individual who has been diagnosed as having tuberculosis or psychosis and is a patient in a medical institution as a result thereof, or

"(3) any such care in behalf of any individual, who is a patient in a medical institution as a result of a diagnosis that he has tuberculosis or psychosis, with respect to any period after the individual has been a patient in such an institution, as a result of such diagnosis, for forty-two days."

(2) Section 6 is further amended by inserting "(a)" immediately after "SEC. 6." and by adding after such section 6 the following new subsections:

"(b) For purposes of this title, the term 'medical assistance for the aged' means payment of part or all of the cost of the following care and services for individuals sixty-five years of age or older who are not recipients of old-age assistance but whose income and resources are insufficient to meet all of such cost

"(1) inpatient hospital services;

"(2) skilled nursing-home services;

"(3) physicians' services;

"(4) outpatient hospital or clinic services;

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(5) home health care services;

"(6) private duty nursing services;

"(7) physical therapy and related services;

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(8) dental services;

(9) laboratory and X-ray services;

"(10) prescribed drugs, eyeglasses, dentures, and prosthetic devices;

"(11) diagnostic, screening, and preventive services; and

"(12) any other medical care or remedial care recognized under State law;

except that such term does not include any such payments with respect to

"(A) care or services for any individual who is an inmate of a public institution (except as a patient in a medical institution) or any individual who is a patient in an institution for tuberculosis or mental diseases; or

"(B) care or services for any individual, who is a patient in a medical institution as a result of a diagnosis of tuberculosis or psychosis, with respect to any period after the individual has been a patient in such an institution, as a result of such diagnosis, for forty-two days.

"(c) For purposes of this title, the term 'Federal medical percentage' for any State shall be 100 per centum less the State percentage; and the State percentage shall be that percentage which bears the same ratio to 50 per centum as the square of the per capita income of such State bears to the square of the per capita income of the continental United States (including Alaska) and Hawaii; except that (i) the Federal medical percentage shall in no case be less than 50 per centum or more than 80 per centum, and (ii) the Federal medical per

September 13, 1960

Pub. Law 86-778

centage for Puerto Rico, the Virgin Islands, and Guam shall be 50
per centum. The Federal medical percentage for any State shall be
determined and promulgated in accordance with the provisions of sub-
paragraph (B) of section 1101 (a) (8) (other than the proviso at Infra.
the end thereof); except that the Secretary shall, as soon as possible
after enactment of the Social Security Amendments of 1960, deter-
mine and promulgate the Federal medical percentage for each State-

"(1) for the period beginning October 1, 1960, and ending with the close of June 30, 1961, which promulgation shall be based on the same data with respect to per capita income as the data used by the Secretary in promulgating the Federal percentage (under section 1101 (a) (8)) for such State for the fiscal year ending June 30, 1961 (which promulgation of the Federal medical percentage shall be conclusive for such period), and

"(2) for the period beginning July 1, 1961, and ending with the close of June 30, 1963, which promulgation shall be based on the same data with respect to per capita income as the data used by the Secretary in promulgating the Federal percentage (under section 1101 (a) (8)) for such State for such period (which promulgation of the Federal medical percentage shall be conclusive for such period)."

INCREASE IN LIMITATIONS ON ASSISTANCE PAYMENT TO PUERTO RICO, THE

VIRGIN ISLANDS, AND GUAM

SEC. 602. Section 1108 of the Social Security Act is amended by 42 USC 1308. (1) striking out "$8,500,000" and inserting in lieu thereof "$9,000,000, of which $500,000 may be used only for payments certified with respect to section 3 (a) (2) (B)";

(2) striking out "$300,000" and inserting in lieu thereof "$315,000, of which $15,000 may be used only for payments certified in respect to section 3(a) (2) (B)";

(3) striking out "$400,000" and inserting in lieu thereof "$420,000, of which $20,000 may be used only for payments certified in respect to section 3 (a) (2) (B)"; and

(4) striking out "titles I, IV, X, and XIV", and inserting in lieu thereof "titles I (other than section 3(a) (3) thereof), IV, X, and XIV".

TECHNICAL AMENDMENT

SEC. 603. (a) Section 618 of the Revenue Act of 1951 (65 Stat. 569) is amended by striking out "title I" and inserting in lieu thereof "title I (other than section 3 (a) (3) thereof)".

(b) The amendment made by subsection (a) shall take effect October 1, 1960.

EFFECTIVE DATES

SEC. 604. The amendments made by section 601 of this Act shall take effect October 1, 1960, and the amendments made by section 602 shall be effective with respect to fiscal years ending after 1960.

TITLE VII-MISCELLANEOUS

INVESTMENT OF TRUST FUNDS

SEC. 701. (a) Section 201(c) of the Social Security Act is amended by inserting after the third sentence the following new sentence: "The Board of Trustees shall meet not less frequently than once each six months."

(b) Section 201(c)(3) of such Act is ainended to read as follows:

"(3) Report immediately to the Congress whenever the Board of Trustees is of the opinion that the amount of either of the Trust Funds is unduly small;".

(c) Section 201 (c) of such Act is further amended by striking out the period at the end of paragraph (4) and inserting in lieu thereof "; and", and by inserting after paragraph (4) the following new paragraph:

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Ante, p.

42 USC 401.

74 STAT. 992.

74 STAT. 993.

42 USC 401.

40 Stat. 288. 31 USC 774.

42 USC 401.

42 USC 405.

74 STAT. 993. 74 STAT. 994.

Ante, p. 968.

"(5) Review the general policies followed in managing the Trust Funds, and recommend changes in such policies, including necessary changes in the provisions of the law which govern the way in which the Trust Funds are to be managed."

(d) Section 201 (d) of such Act is amended to read as follows:

(d) It shall be the duty of the Managing Trustee to invest such portion of the Trust Funds as is not, in his judgment, required to meet current withdrawals. Such investments may be made only in interestbearing obligations of the United States or in obligations guaranteed as to both principal and interest by the United States. For such purpose such obligations may be acquired (1) on original issue at the issue price, or (2) by purchase of outstanding obligations at the market price. The purposes for which obligations of the United States may be issued under the Second Liberty Bond Act, as amended, are hereby extended to authorize the issuance at par of public-debt obligation for purchase by the Trust Funds. Such obligations issued for purchase by the Trust Funds shall have maturities fixed with due regard for the needs of the Trust Funds and shall bear interest at a rate equal to the average market yield (computed by the Managing Trustee on the basis of market quotations as of the end of the calendar month next preceding the date of such issue) on all marketable interestbearing obligations of the United States then forming a part of the public debt which are not due or callable until after the expiration of four years from the end of such calendar month; except that where such average market yield is not a multiple of one-eighth of 1 per centum, the rate of interest of such obligations shall be the multiple of one-eighth of 1 per centum nearest such market yield. The Managing Trustee may purchase other interest-bearing obligations of the United States or obligations guaranteed as to both principal and interest by the United States, on original issue or at the market price, only where he determines that the purchase of such other obligations is in the public interest."

(e) Section 201 (e) of such Act is amended by striking out "special obligations" each place it appears and inserting in lieu thereof "public-debt obligations".

(f) The amendments made by this section shall take effect on the first day of the first month beginning after the date of the enactment of this Act.

SURVIVAL OF ACTIONS

SEC. 702. (a) Section 205 (g) of the Social Security Act is amended by adding at the end thereof the following new sentence: "Any action instituted in accordance with this subsection shall survive notwithstanding any change in the person occupying the office of Secretary or any vacancy in such office."

(b) The amendment made by subsection (a) shall apply to actions which are pending in court on the date of the enactment of this Act or are commenced after such date.

PERIODS OF LIMITATION ENDING ON NONWORK DAYS

SEC. 703. Section 216 of the Social Security Act is amended by adding at the end thereof the following new subsection:

"Periods of Limitation Ending on Nonwork Days

"(j) Where this title, any provision of another law of the United States (other than the Internal Revenue Code of 1954) relating to or changing the effect of this title, or any regulation issued by the Secretary pursuant thereto provides for a period within which an

act is required to be done which affects eligibility for or the amount of any benefit or payment under this title or is necessary to establish or protect any rights under this title, and such period ends on a Saturday, Sunday, or legal holiday, or on any other day all or part of which is declared to be a nonwork day for Federal employees by statute or Executive order, then such act shall be considered as done within such period if it is done on the first day thereafter which is not a Saturday, Sunday, or legal holiday or any other day all or part of which is declared to be a nonwork day for Federal employees by statute or Executive order. For purposes of this subsection, the day on which a period ends shall include the day on which an extension of such period, as authorized by law or by the Secretary pursuant to law, ends. The provisions of this subsection shall not extend the period during which benefits under this title may (pursuant to section 202(j) (1) or 223(b)) be paid for months prior to Ante, pp. 936, the day application for such benefits is filed, or during which an 967. application for benefits under this title may (pursuant to section

202 (j) (2) or 223 (b)) be accepted as such."

ADVISORY COUNCIL ON SOCIAL SECURITY FINANCING

SEC. 704. (a) Section 116(e) of the Social Security Amendments 42 USC 40la. of 1956 is amended to read as follows:

"(e) During 1963, 1966, and every fifth year thereafter, the Secretary shall appoint an Advisory Council on Social Security Financing, with the same functions, and constituted in the same manner, as prescribed in the preceding subsections of this section. Each such Council shall report its findings and recommendations, as prescribed in subsection (d), not later than January 1 of the second year after the year in which it is appointed, after which date such Council shall cease to exist, and such report and recommendations shall be included in the annual report of the Board of Trustees to be submitted to the Congress not later than the March 1 following such January 1."

(b) Section 116 of the Social Security Amendments of 1956 is further amended by adding at the end thereof the following new subsection:

"(f) The Advisory Council appointed under subsection (e) during 1963 shall, in addition to the other findings and recommendations it is required to make, include in its report its findings and recommendations with respect to extensions of the coverage of the old-age, survivors, and disability insurance program, the adequacy of benefits under the program, and all other aspects of the program.

MEDICAL CARE GUIDES AND REPORTS FOR PUBLIC ASSISTANCE AND MEDICAL
ASSISTANCE FOR THE AGED

74 STAT. 994.

74 STAT. 995.

SEC. 705. Title XI of the Social Security Act is amended by adding 42 USC 1301at the end thereof the following new section:

"MEDICAL CARE GUIDES AND REPORTS FOR PUBLIC ASSISTANCE AND MEDICAL

ASSISTANCE FOR THE AGED

"SEC. 1112. In order to assist the States to extend the scope and content, and improve the quality, of medical care and medical services for which payments are made to or on behalf of needy and low-income individuals under this Act and in order to promote better public understanding about medical care and medical assistance for needy and low-income individuals, the Secretary shall develop and revise from time to time guides or recommended standards as to the level,

1310.

42 USC 1202a

note.

42 USC 701.

42 USC 702.

42 USC 711.

74 STAT. 995. 74 STAT. 996. 42 USC 712.

42 USC 721.

content, and quality of medical care and medical services for the use of the States in evaluating and improving their public assistance medical care programs and their programs of medical assistance for the aged; shall secure periodic reports from the States on items included in, and the quantity of, medical care and medical services for which expenditures under such programs are made; and shall from time to time publish data secured from these reports and other information necessary to carry out the purposes of this section."

TEMPORARY EXTENSION OF CERTAIN SPECIAL PROVISIONS RELATING TO
STATE PLANS FOR AID TO THE BLIND

SEC. 706. Section 344 (b) of the Social Security Act Amendments of 1950 is amended by striking out "June 30, 1961" and inserting in lieu thereof "June 30, 1964".

MATERNAL AND CHILD WELFARE

SEC. 707. (a)(1)(A) Section 501 of the Social Security Act is amended by striking out "for each fiscal year beginning after June 30, 1958, the sum of $21,500,000" and inserting in lieu thereof "for each fiscal year beginning after June 30, 1960, the sum of $25,000,000”.

(B) Section 502 (a) (2) of such Act is amended by striking out "for each fiscal year beginning after June 30, 1958, the Secretary shall allot $10,750,000 as follows: He shall allot to each State $60,000 (even though the amount appropriated for such year is less than $21,500,000), and shall allot each State such part of the remainder of the $10,750,000" and inserting in lieu thereof "for each fiscal year beginning after June 30, 1960, the Secretary shall allot $12,500,000 as follows: He shall allot to each State $70,000 (even though the amount appropriated for such year is less than $25,000,000), and shall allot each State such part of the remainder of the $12,500,000".

(C) The first sentence of section 502(b) of such Act is amended by striking out "for each fiscal year beginning after June 30, 1958, the sum of $10,750,000" and inserting in lieu thereof "for each fiscal year beginning after June 30, 1960, the sum of $12,500,000".

(2) (A) Section 511 of such Act is amended by striking out "for each fiscal year beginning after June 30, 1958, the sum of $20,000,000" and inserting in lieu thereof "for each fiscal year beginning after June 30, 1960, the sum of $25,000,000".

(B) Section 512(a) (2) of such Act is amended by striking out "for each fiscal year beginning after June 30, 1958, the Secretary shall allot $10,000,000 as follows: He shall allot to each State $60,000 (even though the amount appropriated for such year is less than $20,000,000) and shall allot the remainder of the $10,000,000" and inserting in lieu thereof "for each fiscal year beginning after June 30, 1960, the Secretary shall allot $12,500,000 as follows: He shall allot to each State $70,000 (even though the amount appropriated for such year is less than $25,000,000) and shall allot the remainder of the $12,500,000".

(C) The first sentence of section 512(b) of such Act is amended by striking out "for each fiscal year beginning after June 30, 1958, the sum of $10,000,000" and inserting in lieu thereof "for each fiscal year beginning after June 30, 1960, the sum of $12,500,000".

(3) (A) Section 521 of such Act is amended by striking out "for each fiscal year, beginning with the fiscal year ending June 30, 1959, the sum of $17,000,000" and inserting in lieu thereof "for each fiscal year, beginning with the fiscal year ending June 30, 1961, the sum of $25,000,000".

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