Committee on Economic Security (CES)
"Social Security In America"
APPENDIXES
APPENDIX XVI
THE SOCIAL SECURITY ACT
(Ch. 531, 49 Stat. 620)
TITLE I- GRANTS TO STATES FOR OLD-AGE ASSISTANCE
- Appropriation
- State Old-Age Assistance Plans
- Payment to States
- Operation of State Plans
- Administration
- Definition
- State Old-Age Assistance Plans
- TITLE II- FEDERAL OLD-AGE BENEFITS
- Old-Age Reserve Account
- Old-Age Benefit Payments
- Payments Upon Death
- Payments to Aged Individuals not Qualified for Benefits
- Amounts of $500 Or Less Payable To Estates
- Overpayments During Life
- Method Of Making Payments
- Assignment
- Penalties
- Definitions
- Old-Age Benefit Payments
- TITLE III- GRANTS TO STATES FOR UNEMPLOYMENT COMPENSATION ADMINISTRATION
- Appropriation
- Payments to States
- Provisions of State Laws
- Payments to States
- TITLE IV- GRANTS TO STATES FOR AID TO DEPENDENT CHILDREN
- Appropriation
- State Plans for Aid to Dependent Children
- Payment to States
- Operation of State Plans
- Administration
- Definitions
- State Plans for Aid to Dependent Children
- TITLE V- GRANTS TO STATES FOR MATERNAL AND CHILD WELFARE
- PART 1- MATERNAL AND CHILD HEALTH SERVICES
- Appropriation
- Allotments to States
- Approval of State Plans
- Payment to States
- Operation of State Plans
- Allotments to States
- PART 2- SERVICES FOR CRIPPLED CHILDREN
- Appropriation
- Allotments to States
- Approval of State Plans
- Payment to States
- Operation of State Plans
- Allotments to States
- PART 3- CHILD WELFARE SERVICES
- PART 4- VOCATIONAL REHABILITATION
- PART 5- ADMINISTRATION
- TITLE VI- PUBLIC HEALTH WORK
- Appropriation
- State and Local Public Health Services
- Investigations
- State and Local Public Health Services
- TITLE VII- SOCIAL SECURITY BOARD
- Establishment
- Duties of the Social Security Board
- Expenses of the Board
- Reports
- Duties of the Social Security Board
- TITLE VIII- TAXES WITH RESPECT TO EMPLOYMENT
- Income Tax on Employees
- Deduction of Tax from Wages
- Deductibility from Income Tax
- Excise Tax on Employers
- Adjustment of Employers’ Tax
- Refunds and Deficiencies
- Collection and Payment of Taxes
- Rules and Regulations
- Sale of Stamps by Postmasters
- Penalties
- Definitions
- Deduction of Tax from Wages
- TITLE IX- TAX ON EMPLOYERS OF EIGHT OR MORE
- Imposition of Tax
- Credit Against Tax
- Certification of State Laws
- Unemployment Trust Fund
- Administration, Refunds, and Penalties
- Interstate Commerce
- Definitions
- Rules and Regulations
- Allowance of Additional Credit
- Conditions of Additional Credit Allowance
- Credit Against Tax
- TITLE X- GRANTS TO STATES FOR AID TO THE BLIND
- Appropriation
- State Plans for Aid to the Blind
- Payment to States
- Operation of State Plans
- Administration
- Definition
- State Plans for Aid to the Blind
- TITLE XI- GENERAL PROVISIONS
- Definitions
- Rules and Regulations
- Separability
- Reservation of Power
- Rules and Regulations
- SHORT TITLE
The Social Security Act (Act of August 14, 1935) [H. R. 7260]
An act to provide for the general welfare by establishing a system of Federal old-age benefits, and by enabling the several States to make more adequate provision for aged persons, blind persons, dependent and crippled children, maternal and child welfare, public health, and the administration of their unemployment compensation laws; to establish a Social Security Board; to raise revenue; and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. For the purpose of enabling each State to furnish financial assistance, as far as practicable under the conditions in such State, to aged needy individuals, there is hereby authorized to be appropriated for the fiscal year ended June 30, 1936, the sum of $49,750,000, and there is hereby authorized to be appropriated for each fiscal year thereafter 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 Social Security Board established by Title VII (hereinafter referred to as the Board ), State plans for old-age assistance.
STATE OLD-AGE ASSISTANCE PLANS
SEC. 2. (a) A State plan for old-age assistance 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 to any individual, whose claim for old-age
assistance is denied, an opportunity for a fair hearing before such
State agency;
(5) provide such methods of administration (other than those relating
to selection, tenure of office, and compensation of personnel) as are
found by the Board to be necessary for the efficient operation of the
plan;
(6) provide that the State agency will make such reports, in such form
and containing such information, as the Board may from time to time
require, and comply with such provisions as the Board may from time
to time find necessary to assure the correctness and verification of
such reports; and
(7) provide that, if the State or any of its political subdivisions
collects from the estate of any recipient of old-age assistance any
amount with respect to old-age assistance furnished him under the plan,
one- half of the net amount so collected shall be promptly paid to the
United States. Any payment so made shall be deposited in the Treasury
to the credit of the appropriation for the purposes of this title.
(b) The Board shall approve any plan which fulfills the conditions
specified in subsection (a), except that it shall not approve any plan
which imposes, as a condition of eligibility for old-age assistance
under the plan-
(1) An age requirement of more than sixty-five years, except that the
plan may impose, effective until January 1, 1940, an age requirement
of as much as seventy years; or
(2) Any residence requirement which excludes any resident of the State
who has resided therein five years during the nine years immediately
preceding the application for old-age assistance and has resided therein
continuously for one year immediately preceding the application; or
(3) Any citizenship requirement which excludes any citizen of the United
States.
PAYMENT TO STATES
SEC. 3. (a) From the sums appropriated therefor, the Secretary of the
Treasury shall pay to each State which has an approved plan for old-age
assistance, for each quarter, beginning with the quarter commencing
July 1, 1935,
(1) an amount, which shall be used exclusively as old-age assistance,
equal to one-half of the total of the sums expended during such quarter
as old-age assistance under the State plan with respect to each individual
who at the time of such expenditure is sixty-five years of age or older
and is not an inmate of a public institution, not counting so much of
such expenditure with respect to any individual for any month as exceeds
$30, and
(2) 5 per centum of such amount, which shall be used for paying the
costs of administering the State plan or for old-age assistance, or
both, and for no other purpose: Provided, That the State plan, in order
to be approved by the Board, need not provide for financial participation
before July 1, 1937, by the State, in the case of any State which the
Board, upon application by the State and after reasonable notice and
opportunity for hearing to the State, finds is prevented by its constitution
from providing such financial participation.
(b) The method of computing and paying such amounts shall be as follows:
(1) The Board shall, prior to the beginning of each quarter, estimate
the amount to be paid to the State for such quarter under the provisions
of clause (1) of subsection (a), such estimate to be based on
(A) a report filed by the State containing its estimate of the total
sum to be expended in such quarter in accordance with the provisions
of such clause, and stating the amount appropriated or made available
by the State and its political subdivisions for such expenditures in
such quarter, and if such amount is less than one-half of the total
sum of such estimated expenditures, the source or sources from which
the difference is expected to be derived,
(B) records showing the number of aged individuals in the State, and
(C) such other investigation as the Board may find necessary.
(2) The Board shall then certify to the Secretary of the Treasury the amount so estimated by the Board, reduced or increased, as the case may be, by any sum by which it finds that its estimate for any prior quarter was greater or less than the amount which should have been paid to the State under clause (1) of subsection (a) for such quarter, except to the extent that such sum has been applied to make the amount certified for any prior quarter greater or less than the amount estimated by the Board for such prior quarter.
(3) The Secretary of the Treasury shall thereupon, through the Division of Disbursement of the Treasury Department and prior to audit or settlement by the General Accounting Office, pay to the State, at the time or times fixed by the Board, the amount so certified, increased by 5 per centum.
OPERATION OF STATE PLANS
SEC. 4. In the case of any State plan for old-age assistance which
has been approved by the Board, if the Board, after reasonable notice
and opportunity for hearing to the State agency administering or supervising
the administration of such plan, finds-
(1) that the plan has been so changed as to impose any age, residence,
or citizenship requirement prohibited by section 2 (b), or that in the
administration of the plan any such prohibited requirement is imposed,
with the knowledge of such State agency, in a substantial number of
cases; or
(2) that in the administration of the plan there is a failure to comply
substantially with any provision required by section 2 (a) to be included
in the plan; the Board shall notify such State agency that further payments
will not be made to the State until the Board is satisfied that such
prohibited requirement is no longer so imposed, and that there is no
longer any such failure to comply. Until it is so satisfied it shall
make no further certification to the Secretary of the Treasury with
respect to such State.
ADMINISTRATION
SEC. 5. There is hereby authorized to be appropriated for the fiscal year ending June 30, 1936, the sum of $250,000, for all necessary expenses of the Board in administering the provisions of this title.
DEFINITION
SEC. 6. When used in this title the term old age assistance means money payments to aged individuals.
TITLE II-FEDERAL OLD-AGE BENEFITS OLD-AGE RESERVE ACCOUNT
Section 201. (a) There is hereby created an account in the Treasury
of the United States to be known as the Old-Age Reserve Account hereinafter
in this title called the Account. There is hereby authorized to be appropriated
to the Account for each fiscal year, beginning with the fiscal year
ending June 30, 1937, an amount sufficient as an annual premium to provide
for the payments required under this title, such amount to be determined
on a reserve basis in accordance with accepted actuarial principles,
and based upon such tables of mortality as the Secretary of the Treasury
shall from time to time adopt, and upon an interest rate of 3 per centum
per annum compounded annually. The Secretary of the Treasury shall submit
annually to the Bureau of the Budget an estimate of the appropriations
to be made to the Account.
(b) It shall be the duty of the Secretary of the Treasury to invest
such portion of the amounts credited to the Account as is not, in his
judgment, required to meet current withdrawals. Such investment may
be made only in interest-bearing 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 par, 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 special obligations exclusively to the Account.
Such special obligations shall bear interest at the rate of 3 per centum
per annum. Obligations other than such special obligations may be acquired
for the Account only on such terms as to provide an investment yield
of not less than 3 per centum per annum.
(c) Any obligations acquired by the Account (except special obligations
issued exclusively to the Account) may be sold at the market price,
and such special obligations may be redeemed at par plus accrued interest.
(d) The interest on, and the proceeds from the sale or redemption of,
any obligations held in the Account shall be credited to and form a
part of the Account.
(e) All amounts credited to the Account shall be available for making
payments required under this title.
(f) The Secretary of the Treasury shall include in his annual report
the actuarial status of the Account.
OLD-AGE BENEFIT PAYMENTS
SEC. 202. (a) Every qualified individual (as defined in section 210)
shall be entitled to receive, with respect to the period beginning on
the date he attains the age of sixty-five, or on January 1, 1942, whichever
is the later, and ending on the date of his death, an old-age benefit
(payable as nearly as practicable in equal monthly installments) as
follows:
(1) If the total wages (as defined in section 210) determined by the
Board to have been paid to him, with respect to employment (as defined
in section 210) after December 31, 1936, and before he attained the
age of sixty- five, were not more than $3,000, the old-age benefit shall
be at a monthly rate of one-half of 1 per centum of such total wages;
(2) If such total wages were more than $3,000, the old-age benefit shall
be at a monthly rate equal to the sum of the following:
(A) One-half of 1 per centum of $3,000; plus
(B) One-twelfth of 1 per centum of the amount by which such total wages
exceeded $3,000 and did not exceed $45,000; plus
(C) One-twenty-fourth of 1 per centum of the amount by which such total
wages exceeded $45,000.
(b) In no case shall the monthly rate computed under subsection (a)
exceed $85.
(c) If the Board finds at any time that more or less than the correct
amount has theretofore been paid to any individual under this section,
then, under regulations made by the Board, proper adjustments shall
be made in connection with subsequent payments under this section to
the same individual.
(d) Whenever the Board finds that any qualified individual has received
wages with respect to regular employment after he attained the age of
sixty-five, the old-age benefit payable to such individual shall be
reduced, for each calendar month in any part of which such regular employment
occurred, by an amount equal to one month s benefit. Such reduction
shall be made, under regulations prescribed by the Board, by deductions
from one or more payments of old-age benefit to such individual.
PAYMENTS UPON DEATH
SEC. 203. (a) If any individual dies before attaining the age of sixty-five,
there shall be paid to his estate an amount equal to 3 « per centum
of the total wages determined by the Board to have been paid to him,
with respect to employment after December 31, 1936.
(b) If the Board finds that the correct amount of the old-age benefit
payable to a qualified individual during his life under section 202
was less than 3 « per centum of the total wages by which such
old-age benefit was measurable, then there shall be paid to his estate
a sum equal to the amount, if any, by which such 3 « per centum
exceeds the amount (whether more or less than the correct amount) paid
to him during his life as old-age benefit.
(c) If the Board finds that the total amount paid to a qualified individual
under an old-age benefit during his life was less than the correct amount
to which he was entitled under section 202, and that the correct amount
of such old-age benefit was 3 « per centum or more of the total
wages by which such old-age benefit was measurable, then there shall
be paid to his estate a sum equal to the amount, if any, by which the
correct amount of the old- age benefit exceeds the amount which was
so paid to him during his life.
PAYMENTS TO AGED INDIVIDUALS NOT QUALIFIED FOR BENEFITS
SEC. 204. (a) There shall be paid in a lump sum to any individual who,
upon attaining the age of sixty-five, is not a qualified individual,
an amount equal to 3 « per centum of the total wages determined
by the Board to have been paid to him, with respect to employment after
December 31, 1936, and before he attained the age of sixty-five.
(b) After any individual becomes entitled to any payment under subsection
(a), no other payment shall be made under this title in any manner measured
by wages paid to him, except that any part of any payment under subsection
(a) which is not paid to him before his death shall be paid to his estate.
AMOUNTS OF $500 OR LESS PAYABLE TO ESTATES
SEC. 205. If any amount payable to an estate under section 203 or 204 is $500 or less, such amount may, under regulations prescribed by the Board, be paid to the persons found by the Board to be entitled thereto under the law of the State in which the deceased was domiciled, without the necessity of compliance with the requirements of law with respect to the administration of such estate.
OVERPAYMENTS DURING LIFE
SEC. 206. If the Board finds that the total amount paid to a qualified
individual under an old-age benefit during his life was more than the
correct amount to which he was entitled under section 202, and was 3
« per centum or more of the total wages by which such old-age
benefit was measurable, then upon his death there shall be repaid to
the United States by his estate the amount, if any, by which such total
amount paid to him during his life exceeds whichever of the following
is the greater:
(1) Such 3 « per centum, or
(2) the correct amount to which he was entitled under section 202.
METHOD OF MAKING PAYMENTS
SEC. 207. The Board shall from time to time certify to the Secretary of the Treasury the name and address of each person entitled to receive a payment under this title, the amount of such payment, and the time at which it should be made, and the Secretary of the Treasury through the Division of Disbursement of the Treasury Department, and prior to audit or settlement by the General Accounting Office, shall make payment in accordance with the certification by the Board.
ASSIGNMENT
SEC. 208. The right of any person to any future payment under this title shall not be transferable or assignable, at law or in equity, and none of the moneys paid or payable or rights existing under this title shall be subject to execution, levy, attachment, garnishment, or other legal process, or to the operation of any bankruptcy or insolvency law.
PENALTIES
SEC. 209. Whoever in any application for any payment under this title makes any false statement as to any material fact, knowing such statement to be false, shall be fined not more than $1,000 or imprisoned for not more than one year, or both.
DEFINITIONS
SEC. 210. When used in this title-- (a) The term wages means all remuneration
for employment, including the cash value of all remuneration paid in
any medium other than cash; except that such term shall not include
that part of the remuneration which, after remuneration equal to $3,000
has been paid to an individual by an employer with respect to employment
during any calendar year, is paid to such employer with respect to employment
during such calendar year.
(b) The term employment means any service, of whatever nature, performed
within the United States by an employee for his employer, except-
(1) Agricultural labor;
(2) Domestic service in a private home;
(3) Casual labor not in the course of the employer s trade or business;
(4) Service performed as an officer or member of the crew of a vessel
documented under the laws of the United States or of any foreign country;
(5) Service performed in the employ of the United States Government
or of an instrumentality of the United States;
(6) Service performed in the employ of a State, a political subdivision
thereof, or an instrumentality of one or more States or political subdivisions;
(7) Service performed in the employ of a corporation, community chest,
fund, or foundation, organized and operated exclusively for religious,
charitable, scientific, literary, or educational purposes, or for the
prevention of cruelty to children or animals, no part of the net earnings
of which inures to the benefit of any private shareholder or individual.
(c) The term qualified individual means any individual with respect
to whom it appears to the satisfaction of the Board that-
(1) He is at least sixty-five years of age; and
(2) The total amount of wages paid to him, with respect to employment
after December 31, 1936, and before he attained the age of sixty-five,
was not less than $2,000; and
(3) Wages were paid to him, with respect to employment on some five
days after December 31, 1936, and before he attained the age of sixty-five,
each day being in a different calendar year.
TITLE III-GRANTS TO STATES FOR UNEMPLOYMENT COMPENSATION ADMINISTRATION APPROPRIATION
SECTION 301. For the purpose of assisting the States in the administration of their unemployment compensation laws, there is hereby authorized to be appropriated, for the fiscal year ending June 30, 1936, the sum of $4,000,000, and for each fiscal year thereafter the sum of $49,000,000, to be used as hereinafter provided.
PAYMENTS TO STATES
SEC. 302. (a) The Board shall from time to time certify to the Secretary
of the Treasury for payment to each State which has an unemployment
compensation law approved by the Board under Title IX, such amounts
as the Board determines to be necessary for the proper administration
of such law during the fiscal year in which such payment is to be made.
The Board s determination shall be based on
(1) the population of the State;
(2) an estimate of the number of persons covered by the State law and
of the cost of proper administration of such law; and
(3) such other factors as the Board finds relevant. The Board shall
not certify for payment under this section in any fiscal year a total
amount in excess of the amount appropriated therefor for such fiscal
year.
(b) Out of the sums appropriated therefor, the Secretary of the Treasury
shall, upon receiving a certification under subsection
(a), pay, through the Division of Disbursement of the Treasury Department
and prior to audit or settlement by the General Accounting Office, to
the State agency charged with the administration of such law the amount
so certified.
PROVISIONS OF STATE LAWS
SEC. 303. (a) The Board shall make no certification for payment to
any State unless it finds that the law of such State, approved by the
Board under Title IX, includes provisions for-
(1) Such methods of administration (other than those relating to selection,
tenure of office, and compensation of personnel) as are found by the
Board to be reasonably calculated to insure full payment of unemployment
compensation when due; and
(2) Payment of unemployment compensation solely through public employment
offices in the State or such other agencies as the Board may approve;
and
(3) Opportunity for a fair hearing, before an impartial tribunal, for
all individuals whose claims for unemployment compensation are denied;
and
(4) The payment of all money received in the unemployment fund of such
State, immediately upon such receipt, to the Secretary of the Treasury
to the credit of the Unemployment Trust Fund established by section
904; and
(5) Expenditure of all money requisitioned by the State agency from
the Unemployment Trust Fund, in the payment of unemployment compensation,
exclusive of expenses of admin- istration; and
(6) The making of such reports, in such form and containing such information,
as the Board may from time to time require, and compliance with such
provisions as the Board may from time to time find necessary to assure
the correctness and verification of such reports; and
(7) Making available upon request to any agency of the United States
charged with the administration of public works or assistance through
public employment, the name, address, ordinary occupation, and employment
status of each recipient of unemployment compensation, and a statement
of such recipient s rights to further compensation under such law.
(b) Whenever the Board, after reasonable notice and opportunity for
hearing to the State agency charged with the administration of the State
law finds that in the administration of the law there is--
(1) a denial, in a substantial number of cases, of unemployment compensation
to individuals entitled thereto under such law; or
(2) a failure to comply substantially with any provision specified in
subsection (a); the Board shall notify such State agency that further
payments will not be made to the State until the Board is satisfied
that there is no longer any such denial or failure to comply. Until
it is so satisfied it shall make no further certification to the Secretary
of the Treasury with respect to such State.
TITLE IV-GRANTS TO STATES FOR AID TO DEPENDENT CHILDREN APPROPRIATION
SECTION 401. For the purpose of enabling each State to furnish financial assistance, as far as practicable under the conditions in such State, to needy dependent children, there is hereby authorized to be appropriated for the fiscal year ending June 30, 1936, the sum of $24,750,000, and there is hereby authorized to be appropriated for each fiscal year thereafter 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 Board, State plans for aid to dependent children.
STATE PLANS FOR AID TO DEPENDENT CHILDREN
SEC. 402. (a) A State plan for aid to dependent children 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 to any individual, whose claim with respect
to aid to a dependent child is denied, an opportunity for a fair hearing
before such State agency;
(5) provide such methods of administration (other than those relating
to selection, tenure of office, and compensation of personnel) as are
found by the Board to be necessary for the efficient operation of the
plan; and
(6) provide that the State agency will make such reports, in such form
and containing such information, as the Board may from time to time
require, and comply with such provisions as the Board may from time
to time find necessary to assure the correctness and verification of
such reports.
(b) The Board shall approve any plan which fulfills the conditions specified
in subsection (a) except that it shall not approve any plan which imposes
as a condition of eligibility for aid to dependent children, a residence
requirement which denies aid with respect to any child residing in the
State
(1) who has resided in the State for one year immediately preceding
the application for such aid or
(2) who was born within the State within one year immediately preceding
the application, if its mother has resided in the State for one year
immediately preceding the birth.
PAYMENT TO STATES
SEC. 403. (a) From the sums appropriated therefor, the Secretary of
the Treasury shall pay to each State which has an approved plan for
aid to dependent children, for each quarter, beginning with the quarter
commencing July 1, 1935, an amount, which shall be used exclusively
for carrying out the State plan, equal to one-third of the total of
the sums expended during such quarter under such plan, not counting
so much of such expenditure with respect to any dependent child for
any month as exceeds $18, or if there is more than one dependent child
in the same home, as exceeds $18 for any month with respect to one such
dependent child and $12 for such month with respect to each of the other
dependent children.
(b) The method of computing and paying such amounts shall be as follows:
(1) The Board shall, prior to the beginning of each quarter, estimate
the amount to be paid to the State for such quarter under the provisions
of subsection
(a), such estimate to be based on
(A) a report filed by the State containing its estimate of the total
sum to be expended in such quarter in accordance with the provisions
of such subsection and stating the amount appropriated or made available
by the State and its political subdivisions for such expenditures in
such quarter, and if such amount is less than two-thirds of the total
sum of such estimated expenditures, the source or sources from which
the difference is expected to be derived,
(B) records showing the number of dependent children in the State, and
(C) such other investigation as the Board may find necessary.
(2) The Board shall then certify to the Secretary of the Treasury the
amount so estimated by the Board, reduced or increased, as the case
may be, by any sum by which it finds that its estimate for any prior
quarter was greater or less than the amount which should have been paid
to the State for such quarter, except to the extent that such sum has
been applied to make the amount certified for any prior quarter greater
or less than the amount estimated by the Board for such prior quarter.
(3) The Secretary of the Treasury shall thereupon, through the Division
of Disbursement of the Treasury Department and prior to audit or settlement
by the General Accounting Office, pay to the State, at the time or times
fixed by the Board, the amount so certified.
OPERATION OF STATE PLANS
SEC. 404. In the case of any State plan for aid to dependent children
which has been approved by the Board, if the Board, after reasonable
notice and opportunity for hearing to the State agency administering
or supervising the administration of such plan, finds-
(1) that the plan has been so changed as to impose any residence requirement
prohibited by section 402 (b), or that in the administration of the
plan any such prohibited requirement is imposed, with the knowledge
of such State agency, in a substantial number of cases; or
(2) that in the administration of the plan there is a failure to comply
substantially with any provision required by section 402 (a) to be included
in the plan; the Board shall notify such State agency that further payments
will not be made to the State until the Board is satisfied that such
prohibited requirement is no longer so imposed, and that there is no
longer any such failure to comply. Until it is so satisfied it shall
make no further certification to the Secretary of the Treasury with
respect to such State.
ADMINISTRATION
SEC. 405. There is hereby authorized to be appropriated for the fiscal year ending June 30, 1936, the sum of $250,000 for all necessary expenses of the Board in administering the provisions of this title.
DEFINITIONS
SEC. 406. When used in this title-
(a) The term dependent child means a child under the age of sixteen
who has been deprived of parental support or care by reason of the death,
continued absence from the home, or physical or mental incapacity of
a parent, and who is living with his father, mother, grandfather, grandmother,
brother, sister, stepfather, stepmother, stepbrother, stepsister, uncle,
or aunt, in a place of residence maintained by one or more of such relatives
as his or their own home;
(b) The term aid to dependent children means money payments with respect
to a dependent child or dependent children.
APPROPRIATION
SECTION 501. For the purpose of enabling each State to extend and improve, as far as practicable under the conditions in such State, services for promoting the health of mothers and children, especially in rural areas and in areas suffering from severe economic distress, there is hereby authorized to be appropriated for each fiscal year, beginning with the fiscal year ending June 30, 1936, the sum of $3,800,000. The sums made available under this section shall be used for making payments to States which have submitted, and had approved by the Chief of the Children s Bureau, State plans for such services.
ALLOTMENTS TO STATES
SEC. 502. (a) Out of the sums appropriated pursuant to section 501
for each fiscal year the Secretary of Labor shall allot to each State
$20,000, and such part of $1,800,000 as he finds that the number of
live births in such State bore to the total number of live births in
the United States, in the latest calendar year for which the Bureau
of the Census has available statistics.
(b) Out of the sums appropriated pursuant to section 501 for each fiscal
year the Secretary of Labor shall allot to the States $980,000 (in addition
to the allotments made under subsection (a)), according to the financial
need of each State for assistance in carrying out its State plan, as
determined by him after taking into consideration the number of live
births in such State.
(c) The amount of any allotment to a State under subsection (a) for
any fiscal year remaining unpaid to such State at the end of such fiscal
year shall be available for payment to such State under section 504
until the end of the second succeeding fiscal year. No payment to a
State under section 504 shall be made out of its allotment for any fiscal
year until its allotment for the preceding fiscal year has been exhausted
or has ceased to be available.
APPROVAL OF STATE PLANS
SEC. 503. (a) A State plan for maternal and child-health services must
(2) provide for the administration of the plan by the State health agency
or the supervision of the administration of the plan by the State health
agency;
(3) provide such methods of administration (other than those relating
to selection, tenure of office, and compensation of personnel) as are
necessary for the efficient operation of the plan;
(4) provide that the State health agency will make such reports, in
such form and containing such information, as the Secretary of Labor
may from time to time require, and comply with such provisions as he
may from time to time find necessary to assure the correctness and verification
of such reports;
(5) provide for the extension and improvement of local maternal and
child-health services administered by local child health units;
(6) provide for cooperation with medical, nursing, and welfare groups
and organizations; and
(7) provide for the development of demonstration services in needy areas
and among groups in special need.
(b) The Chief of the Children s Bureau shall approve any plan which
fulfills the conditions specified in subsection (a) and shall thereupon
notify the Secretary of Labor and the State health agency of his approval.
PAYMENT TO STATES
SEC. 504. (a) From the sums appropriate therefor and the allotments
available under section 502 (a), the Secretary of the Treasury shall
pay to each State which has an approved plan for maternal and child-health
services, for each quarter beginning with the quarter commencing July
1935, an amount, which shall be used exclusively for carrying out the
State plan, equal to one-half of the total sum expended during such
quarter for carrying out such plan.
(b) The method of computing and paying such amounts shall be as follows:
(1) The Secretary of Labor shall, prior the beginning of each quarter,
estimate the amount to be paid to the State for such quarter under the
provisions of subsection (a), such estimate to be based on
(A) a report filed by the State containing its estimate of the total
sum to be expended in such quarter in accordance with the provisions
of such subsection and stating the amount appropriated or made available
by the State and its political subdivisions for such expenditures in
such quarter, and if such amount is less than one-half of the total
sum of such estimated expenditures, the source or sources from which
the difference is expected to be derived, and
(B) such investi gation as he may find necessary.
(2) The Secretary of Labor shall then certify the amount so estimated
by him to the Secretary of the Treasury, reduced or increased, as the
case may be, by any sum by which the Secretary of Labor finds that his
estimate for any prior quarter was greater or less than the amount,
which should have been paid to the State for such quarter, except to
the extent that such sum has been applied to make the amount certified
for any prior quarter greater or less than the amount, estimated by
the Secretary of Labor for such prior quarter.
(3) The Secretary of the Treasury shall thereupon, through the Division
of Disbursement of the Treasury Department and prior to audit or settlement
by the General Accounting Office, pay to the State, at the time or times
fixed by the Secretary of Labor, the amount so certified.
(c) The Secretary of Labor shall from time to time certify to the Secretary
of the Treasury the amounts to be paid to the States from the allotments
available under section 502 (b), and the Secretary of the Treasury shall,
through the Division of Disbursement of the Treasury Department and
prior to audit or settlement by the General Accounting Office, make
payments of such amounts from such allotments at the time or times specified
by the Secretary of Labor.
OPERATION OF STATE PLANS
SEC. 505. In the case of any State plan for maternal and child-health services which has been approved by the Chief of the Children s Bureau, if the Secretary of Labor, after reasonable notice and opportunity for hearing to the State agency administering or supervising the administration of such plan, finds that in the administration of the plan there is a failure to comply substantially with any provision required by section 503 to be included in the plan, he shall notify such State agency that further payments will not be made to the State until he is satisfied that there is no longer any such failure to comply. Until he is so satisfied he shall make no further certification to the Secretary of the Treasury with respect to such State.
PART 2-SERVICES FOR CRIPPLED CHILDREN
APPROPRIATION
SEC. 511. For the purpose of enabling each State to extend and improve (especially in rural areas and in areas suffering from severe economic distress), as far as practicable under the conditions in such State, services for locating crippled children and for providing medical, surgical, corrective, and other services and care, and facilities for diagnosis, hospitalization, and aftercare, for children who are crippled or who are suffering from conditions which lead to crippling, there is hereby authorized to be appropriated for each fiscal year beginning with the fiscal year ending June 30, 1936, the sum of $2,850,000. The sums made available under this section shall be used for making payments to States which have submitted, and had approved by the Chief of the Children s Bureau, State plans for such services.
ALLOTMENTS TO STATES
SEC. 512. (a) Out of the sums appropriated pursuant to section 511
for each fiscal year the Secretary of Labor shall allot to each State
$20,000, and the remainder to the States according to the need of each
State as determined by him after taking into consideration the number
of crippled children in such State in need of the services referred
to section 511 and the cost of furnishing such service to them
(b) The amount of any allotment to a State under subsection (a) for
any fiscal year remaining unpaid to such State at the end of such fiscal
year shall be available for payment to such State under section 514
until the end of the second succeeding fiscal year. No payment to a
State under section 514 shall be made out of its allotment for any fiscal
year until its allotment for the preceding fiscal year has been exhausted
or has ceased to be available.
APPROVAL OF STATE PLANS
SEC. 513. (a) A State plan for services for crippled children must
(1) provide for financial participation by the State;
(2) provide for the administration of the plan by a State agency or
the supervision of the administration of the plan by a State agency;
(3) provide such methods of administration (other than those relating
to selection, tenure of office, and compensation of personnel) as are
necessary for the efficient operation of the plan;
(4) provide that the State agency will make such reports, in such form
and containing such information, as the Secretary of Labor may from
time to time require, and comply with such provisions as he may from
time to time find necessary to assure the correctness and verification
of such reports;
(5) provide for carrying out the purposes specified in section 511;
and
(6) provide for cooperation with medical, health, nursing, and welfare
groups and organizations and with any agency in such State charged with
administering State laws providing for vocational rehabilitation of
physically handicapped children.
(b) The Chief of the Children s Bureau shall approve any plan which fulfills the conditions specified in subsection (a) and shall thereupon notify the Secretary of Labor and the State agency of his approval.
PAYMENT TO STATES
SEC. 514. (a) From the sums appropriated therefor and the allotments
available under section 512, the Secretary of the Treasury shall pay
to each State which has an approved plan for services for crippled children,
for each quarter, beginning the quarter commencing July 1, 1935, an
amount which shall be used exclusively for carrying out the State plan,
equal to one-half of the total sum expended during such quarter for
carrying out such plan.
(b) The method of computing and paying such amounts shall be as follows:
(1) The Secretary of Labor shall, prior the beginning of each quarter,
estimate the amount to be paid to the State for such quarter under the
provisions of subsection (a), such estimate to be based on
(A) a report filed by the State containing its estimate of the total
sum to be expended in such quarter in accordance with the provisions
of such subsection and stating the amount appropriated or made available
by the State and its political subdivisions for such expenditures in
such quarter and if such amount is less than one-half of the total sum
of such estimated expenditures the source or sources from which the
difference is expected to be derived, and
(B) such investigation as he may find necessary.
(2) The Secretary of Labor shall then certify the amount so estimated
by him to the Secretary of the Treasury, reduced or increased as the
case may be, by any sum by which the Secretary of Labor finds that his
estimate for any prior quarter was greater or less than the amount which
should have been paid to the State for such quarter, except to the extent
that such sum has been applied to make the amount certified for any
prior quarter greater or less than the amount estimated by the Secretary
of Labor for such prior quarter.
(3) The Secretary of the Treasury shall thereupon, through the Division
of Disbursement of the Treasury Department and prior to audit or settlement
by the General Accounting Office, pay to the State, at the time or times
fixed by the Secretary of Labor, the amount so certified.
OPERATION OF STATE PLANS
SEC. 515. In the case of any State plan for services for crippled children which has been approved by the Chief of the Children s Bureau, if the Secretary of Labor, after reasonable notice and opportunity for hearing to the State agency administering or supervising the administration of such plan finds that in the administration of the plan there a failure to comply substantially with any provision required by section 513 to be included in the plan, he shall notify such State agency that further payments will not be made to the State until he is satisfied that there is no longer any such failure to comply. Until he is so satisfied he shall make no further certification to the Secretary of the Treasury with respect to such State.
PART 3- CHILD WELFARE SERVICES
SEC. 521. (a) For the purpose of enabling the United States, through
the Children s Bureau, to cooperate with State public-welfare agencies
establishing, extending, and strengthening, especially in predominantly
rural areas, public-welfare services (hereinafter in this section referred
to as child-welfare services ) for the protection and care of homeless,
dependent, and neglected children, and children in danger of becoming
delinquent, there is hereby authorized to be appropriated for each fiscal
year, beginning with the year ending June 30, 1936, the sum of $1,500,000.
Such amount shall be allotted by the Secretary of Labor for use by cooperating
State public- welfare agencies on the basis of plans developed jointly
by the State agency and the Children s Bureau, to each State, $10,000,
and the remainder to each State on the basis of such plans, not to exceed
such part of the remainder as the rural population of such State bears
to the total rural population of the United States. The amount so allotted
shall be expended for payment of part of the cost of district, county
or other local child- welfare services in areas predominantly rural,
and for developing State services for the encouragement and assist-
ance of adequate methods of community child-welfare organization in
areas predominantly rural and other areas of special need. The amount
of any allotment to a State under this section for any fiscal year remaining
unpaid to such State at the end of such fiscal year shall be available
for payment to such State under this section until the end of the second
succeeding fiscal year. No payment to a State under this section shall
be made out of its allotment for any fiscal year until its allotment
for the preceding fiscal year has been exhausted or has ceased to be
available.
(b) From the sums appropriated therefor and the allotments available
under subsection (a) the Secretary of Labor shall from time to time
certify to the Secretary of the Treasury the amounts to be paid to the
States, and the Secretary of the Treasury shall, through the Division
of Disbursement of the Treasury Department and prior to audit or settlement
by the General Accounting Office, make payments of such amounts from
such allotments at the time or times specified by the Secretary of Labor.
PART 4- VOCATIONAL REHABILITATION
SEC. 531. (a) In order to enable the United States to cooperate with
the States and Hawaii in extending and strengthening their programs
of vocational rehabilitation of the physically disabled, and to continue
to carry out the provisions and purposes of the Act entitled An Act
to provide for the promotion of vocational rehabilitation of persons
disabled in industry or otherwise and their return to civil employment
, approved June 2, 1920, as amended (U.S.C., title 29, ch. 4; U.S.C.,
Supp. VII title 29, secs. 31, 32, 34, 35, 37, 39, and 40), there is
hereby authorized to be appropriated for the fiscal years ending June
30, 1936, and June 30, 1937, the sum of $841,000 for each such fiscal
year in addition to the amount of the existing authorization, and for
each fiscal year thereafter the sum of $1,938,000. Of the sums appropriated
pursuant to such authorization for each fiscal year, $5,000 shall be
apportioned to the Territory of Hawaii and the remainder shall be apportioned
among the several States in the manner provided in such Act of June
2, 1920, as amended.
(b) For the administration of such Act of June 2, 1920, as amended,
by the Federal agency authorized to administer it, there is hereby authorized
to be appropriated for the fiscal years ending June 30, 1936, and June
30, 1937, the sum of $22,000 for each such fiscal year in addition to
the amount of the existing authorization, and for each fiscal year thereafter
the sum of $102,000.
PART 5- ADMINISTRATION
SEC. 541. (a) There is hereby authorized to be appropriated for the
fiscal year ending June 30, 1936, the sum of $425,000, for all necessary
expenses of the Children s Bureau in administering the provisions of
this title, except section 531.
(b) The Children s Bureau shall make such studies and investigations
as will promote the efficient administration of this title, except section
531.
(c) The Secretary of Labor shall include in his annual report to Congress
a full account of the administration of this title, except section 531.
TITLE VI- PUBLIC HEALTH WORK APPROPRIATION
SECTION 601. For the purpose of assisting States, counties, health districts, and other political subdivisions of the States in establishing and maintaining adequate public-health services, including the training of personnel for State and local health work, there is hereby authorized to be appropriated for each fiscal year, beginning with the fiscal year ending June 30,1936, the sum of $8,000,000 to be used as hereinafter provided.
STATE AND LOCAL PUBLIC HEALTH SERVICES
SEC. 602. (a) The Surgeon General of the Public Health Service, with
the approval of the Secretary of the Treasury, shall, at the beginning
of each fiscal year, allot to the States the total of (1) the amount
appropriated for such year pursuant to section 601; and (2) the amounts
of the allotments under this section for the preceding fiscal year remaining
unpaid to the States at the end of such fiscal year. The amounts of
such allotments shall be determined on the basis of (1) the population;
(2) the special health problems; and (3) the financial needs; of the
respective States. Upon making such allotments the Surgeon General of
the Public Health Service shall certify the amounts thereof to the Secretary
of the Treasury.
(b) The amount of an allotment to any State under subsection (a) for
any fiscal year, remaining unpaid at the end of such fiscal year, shall
be available for allotment to States under subsection (a) for the succeeding
fiscal year, in addition to the amount appropriated for such year.
(c) Prior to the beginning of each quarter of the fiscal year, the Surgeon
General of the Public Health Service shall, with the approval of the
Secretary of the Treasury, determine in accordance with rules and regulations
previously prescribed by such Surgeon General after consultation with
a conference of the State and Territorial health authorities, the amount
to be paid to each State for such quarter from the allotment to such
State, and shall certify the amount so determined to the Secretary of
the Treasury. Upon receipt of such certification, the Secretary of the
Treasury shall, through the Division of Disbursement of the Treasury
Department and prior to audit or settlement by the General Accounting
Office, pay in accordance with such certification.
(d) The moneys so paid to any State shall be expended solely in carrying
out the purposes specified in section 601, and in accordance with plans
presented by the health authority of such State and approved by the
Surgeon General of the Public Health Service.
INVESTIGATIONS
SEC. 603. (a) There is hereby authorized to be appropriated for each
fiscal year, beginning with the fiscal year ending June 30, 1936, the
sum of $2,000,000 for expenditure by the Public Health Service for investigation
of disease and problems of sanitation (including the printing and binding
of the findings of such investigations), and f or the pay and allowances
and traveling expenses of personnel of the Public Health Service, including
commissioned officers, engaged in such investigations or detailed to
cooperate with the health authorities of any State in carrying out the
purposes specified in section 601: Provided, That no personnel of the
Public Health Service shall be detailed to cooperate with the health
authorities of any State except at the request of the proper authorities
of such State.
(b) The personnel of the Public Health Service paid from any appropriation
not made pursuant to subsection (a) may be detailed to assist in carrying
out the purposes of this title. The appropriation from which they are
paid shall be reimbursed from the appropriation made pursuant to subsection
(a) to the extent of their salaries and allowances for services performed
while so detailed.
(c) The Secretary of the Treasury shall include in his annual report
to Congress a full account of the administration of this title.
TITLE VII-SOCIAL SECURITY BOARD ESTABLISHMENT
SECTION 701. There is hereby established a Social Security Board (in
this Act referred to as the Board ) to be composed of three members
to be appointed by the President, by and with the advice and consent
of the Senate. During his term of membership on the Board , no member
shall engage in any other business, vocation, or employment. Not more
than two of the members of the Board shall be members of the same political
party. Each member shall receive a salary at the rate of $10,000 a year
and shall hold office for a term of six years, except that
(1) any member appointed to fill a vacancy occurring prior to the expiration
of the term for which his predecessor was appointed, shall be appointed
for the remainder of such term; and
(2) the terms of office of the members first taking office after the
date of the enactment of this Act shall expire, as designated by the
President at the time of appointment, one at the end of two years, one
at the end of four years, and one at the end of six years, after the
date of the enactment of this Act. The President shall designate one
of the members as the chairman of the Board.
DUTIES OF THE SOCIAL SECURITY BOARD
SEC. 702. The Board shall perform the duties imposed upon it by this Act and shall also have the duty of studying and making recommendations as to the most effective methods of providing economic security through social insurance, and as to legislation and matters of administrative policy concerning old-age pensions, unemployment compensation, accident compensation, and related subjects.
EXPENSES OF THE BOARD
SEC. 703. The Board is authorized to appoint and fix the compensation of such officers and employees, and to make such expenditures, as may be necessary for carrying out its functions under this Act. Appointments of attorneys and experts may be made without regard to the civil-service laws.
REPORTS
SEC. 704. The Board shall make a full report to Congress, at the beginning of each regular session, of the administration of the functions with which it is charged.
TITLE VIII- TAXES WITH RESPECT TO EMPLOYMENT
INCOME TAX ON EMPLOYEES
SECTION 801. In addition to other taxes, there shall be levied, collected,
and paid upon the income of every individual a tax equal to the following
percentages of the wages (as defined in section 811) received by him
after December 31, 1936, with respect to employment (as defined in section
811) after such date:
(1) With respect to employment during the calendar years 1937, 1938,
and 1939, the rate shall be 1 per centum.
(2) With respect to employment during the calendar years 1940, 1941,
and 1942, the rate shall 1 « per centum.
(3) With respect to employment during the calendar years 1943, 1944,
and 1945, the rate shall be 2 per centum.
(4) With respect to employment during the calendar years 1946, 1947,
and 1948, the rate shall be 2 « per centum.
(5) With respect to employment after December 31, 1948, the rate shall
be 3 per centum.
DEDUCTION OF TAX FROM WAGES
SEC. 802. (a) The tax imposed by section 801 shall be collected by
the employer of the taxpayer by deducting the amount of the tax from
the wages as and when paid. Every employer required so to deduct the
tax is hereby made liable for the payment of such tax, and is hereby
indemnified against the claims and demands of any person for the amount
of any such payment made by such employer.
(b) If more or less than the correct amount of tax imposed by section
801 is paid with respect to any wage payment, then, under regulations
made under this title, proper adjustments, with respect both to the
tax and the amount to be deducted, shall be made, without interest,
in connection with subsequent wage payments to the same individual by
the same employer.
DEDUCTIBILITY FROM INCOME TAX
SEC. 803. For the purposes of the income tax imposed by Title I of the Revenue Act of 1934 or by any Act of Congress in substitution therefor, the tax imposed by section 801 shall not be allowed as a deduction to the taxpayer in computing his net income for the year in which such tax is deducted from his wages.
EXCISE TAX ON EMPLOYERS
SEC. 804. In addition to other taxes, every employer shall pay an excise
tax, with respect to having individuals in his employ, equal to the
following percentages of the wages (as defined in section 811) paid
by him after December 31, 1936, with respect to employment (as defined
in section 811) after such date:
(1) With respect to employment during the calendar years 1937, 1938,
and 1939, the rate shall be 1 per centum.
(2) With respect to employment during the calendar years 1940, 1941,
and 1942, the rate shall be 1 « per centum.
(3) With respect to employment during the calendar years 1943, 1944,
and 1945, the rate shall be 2 per centum.
(4) With respect to employment during the calendar years 1946, 1947,
and 1948, the rate shall be 2 « per centum.
(5) With respect to employment after December 31, 1948, the rate shall
be 3 per centum.
ADJUSTMENT OF EMPLOYERS TAX
SEC. 805. If more or less than the correct amount of tax imposed by section 804 is paid with respect to any wage payment, then, under regulations made under this title, proper adjustments with respect the tax shall be made, without interest, in connection with subsequent wage payments to the same individual by the same employer.
REFUNDS AND DEFICIENCIES
SEC. 806. If more or less than the correct amount of tax imposed by section 801 or 804 is paid or deducted with respect to any wage payment and the overpayment or underpayment of tax cannot be adjusted under section 802 (b) or 805 the amount of the overpayment shall be refunded and the amount of the underpayment shall be collected in such manner and at such times (subject to the statutes of limitations properly applicable thereto) as may be prescribed by regulations made under this title.
COLLECTION AND PAYMENT OF TAXES
SEC. 807. (a) The taxes imposed by this title shall be collected by
the Bureau of Internal Revenue under the direction of the Secretary
of the Treasury and shall be paid into the Treasury of the United States
as internal- revenue collections. If the tax is not paid when due, there
shall be added as part of the tax interest (except in the case of adjustments
made in accordance with the provisions of sections 802 (b) and 805)
at the rate of one-half of 1 per centum per month from the date the
tax became due until paid.
(b) Such taxes shall be collected and paid in such manner, at such times,
and under such conditions, not inconsistent with this title (either
by making and filing returns, or by stamps, coupons, tickets, books,
or other reasonable devices or methods necessary or helpful in securing
a complete and proper collection and payment of the tax or in securing
proper identification of the taxpayer), as may be prescribed by the
Commissioner of Internal Revenue, with the approval of the Secretary
of the Treasury.
(c) All provisions of law, including penalties, applicable with respect
to any tax imposed by section 600 or section 800 of the Revenue Act
of 1926 and the provisions of section 607 of the Revenue Act of 1934,
shall, insofar as applicable and not inconsistent with the provisions
of this title, be applicable with respect to the taxes imposed by this
title.
(d) In the payment of any tax under this title a fractional part of
a cent shall be disregarded unless it amounts to one-half cent or more,
in which case it shall be increased to 1 cent.
RULES AND REGULATIONS
SEC. 808. The Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall make and publish rules and regulations for the enforcement of this title.
SALE OF STAMPS BY POSTMASTERS
SEC. 809. The Commissioner of Internal Revenue shall furnish to the
Postmaster General without prepayment a suitable quantity of stamps,
coupons, tickets, books, or other devices prescribed by the Commissioner
under section 807 for the collection or payment of any tax imposed by
this title, to be distributed to, and kept on sale by, all post offices
of the first and second classes, and such post offices of the third
and fourth classes as
(1) are located in county seats, or
(2) are certified by the Secretary of the Treasury to the Postmaster
General as necessary to the proper administration of this title. The
Postmaster General may require each such postmaster to furnish bond
in such increased amount as he may from time to time determine, and
each such postmaster shall deposit the receipts from the sale of such
stamps, coupons, tickets, books, or other devices, to the credit of,
and render accounts to, the Postmaster General at such times and in
such form as the Postmaster General may by regulations prescribe. The
Postmaster General shall at least once a month transfer to the Treasury,
as internal- revenue collections all receipts so deposited together
with a statement of the additional expenditures in the District of Columbia
and elsewhere incurred by the Post Office Department in performing the
duties imposed upon said Department by this Act, and the Secretary of
the Treasury is hereby authorized and directed to advance from time
to time to the credit of the Post Office Department from appropriations
made for the collection of the taxes imposed by this title, such sums
as may be required for such additional expenditures incurred by the
Post Office Department.
PENALTIES
SEC. 810. (a) Whoever buys, sells, offers for sale, uses, transfers,
takes or gives in exchange, or pledges or gives in pledge, except as
authorized in this title or in regulations made pursuant thereto, any
stamp, coupon, ticket, book, or other device, prescribed by the Commissioner
of Internal Revenue under section 807 for the collection or payment
of any tax imposed by this title, shall be fined not more than $1,000
or imprisoned for not more than six months, or both.
(b) Whoever, with intent to defraud, alters, forges, makes, or counterfeits
any stamp, coupon, ticket, book, or other device prescribed by the Commissioner
of Internal Revenue under section 807 for the collection or payment
of any tax imposed by this title, or uses, sells, lends, or has in his
possession any such altered, forged, or counterfeited stamp, coupon,
ticket, book, or other device, or makes, uses, sells, or has in his
possession any ma- terial in imitation of the material used in the manufacture
of such stamp, coupon, ticket, book, or other device, shall be fined
not more than $5,000 or imprisoned not more than five years, or both.
DEFINITIONS
SEC. 811. When used in this title- (a) The term wages means all remuneration
for employment, including the cash value of all remuneration paid in
any medium other than cash; except that such term shall not include
that part of the remuneration which, after remuneration equal to $3,000
has been paid to an individual by an employer with respect to employment
during any calendar year, is paid to such individual by such employer
with respect to employment during such calendar year.
(b) The term employment means any service, of whatever nature, performed
within the United States by an employee for his employer, except-
(1) Agricultural labor;
(2) Domestic service in a private home;
(3) Casual labor not in the course of the employer s trade or business;
(4) Service performed by an individual who has attained the age of sixty-five;
(5) Service performed as an officer or member of the crew of a vessel
documented under the laws of the United States or of any foreign country;
(6) Service performed in the employ of the United States Government
or of an instrumentality of the United States;
(7) Service performed in the employ of a State, a political subdivision
thereof, or an instrumentality of one or more States or political subdivisions;
(8) Service performed in the employ of a corporation, community chest,
fund, or foundation, organized and operated exclusively for religious,
charitable, scientific, literary, or educational purposes, or for the
prevention of cruelty to children or animals, no part of the net earnings
of which inures to the benefit of any private shareholder or individual.
SECTION 901. On and after January 1, 1936, every employer (as defined
in section 907) shall pay for each calendar year an excise tax, with
respect to having individuals in his employ, equal to the following
percentages of the total wages (as defined in section 907) payable by
him (regardless of the time of payment) with respect to employment (as
defined in section 907) during such calendar year:
(1) With respect to employment during the calendar year 1936 the rate
shall be 1 per centum;
(2) With respect to employment during the calendar year 1937 the rate
shall be 2 per centum;
(3) With respect to employment after December 31, 1937, the rate shall
be 3 per centum.
CREDIT AGAINST TAX
SEC. 902. The taxpayer may credit against the tax imposed by section 901 the amount of contributions, with respect to employment during the taxable year, paid by him (before the date of filing of his return for the taxable year) into an unemployment fund under a State law. The total credit allowed to a taxpayer under this section for all contributions paid into unemployment funds with respect to employment during such taxable year shall not exceed 90 per centum of the tax against which it is credited, and credit shall be allowed only for contributions made under the laws of States certified for the taxable year as provided in section 903.
CERTIFICATION OF STATE LAWS
SEC. 903 (a) The Social Security Board shall approve any State law
submitted to it, within thirty days of such submission, which it finds
provides that-
(1) All compensation is to be paid through public employment offices
in the State or such other agencies as the Board may approve;
(2) No compensation shall be payable with respect to any day of unemployment
occurring within two years after the first day of the first period with
respect to which contributions are required;
(3) All money received in the unemployment fund shall immediately upon
such receipt be paid over to the Secretary of the Treasury to the credit
of the Unemployment Trust Fund established by section 904;
(4) All money withdrawn from the Unemployment Trust Fund by the State
agency shall be used solely in the payment of compensation, exclusive
of expenses of administration;
(5) Compensation shall not be denied in such State to any otherwise
eligible individual for refusing to accept new work under any of the
following conditions:
(A) If the position offered is vacant due directly to a strike, lockout,
or other labor dispute;
(B) if the wages, hours, or other conditions of the work offered are
substantially less favorable to the individual than those prevailing
for similar work in the locality;
(C) if as a condition of being employed the individual would be required
to join a company union or to resign from or refrain from joining any
bona-fide labor organization;
(6) All the rights, privileges, or immunities conferred by such law
or by acts done pursuant thereto shall exist subject to the power of
the legislature to amend or repeal such law at any time. The Board shall,
upon approving such law, notify the Governor of the State of its approval.
(b) On December 31 in each taxable year the Board shall certify to the
Secretary of the Treasury each State whose law it has previously approved,
except that it shall not certify any State which, after reasonable notice
and opportunity for hearing to the State agency, the Board finds has
changed its law so that it no longer contains the provisions specified
in subsection (a) or has with respect to such taxable year failed to
comply substantially with any such provision.
(c) If, at any time during the taxable year, the Board has reason to
believe that a State whose law it has previously approved, may not be
certified under subsection (b), it shall promptly so notify the Governor
of such State.
UNEMPLOYMENT TRUST FUND
SEC. 904. (a) There is hereby established in the Treasury of the United
States a trust fund to be known as the Unemployment Trust Fund , hereinafter
in this title called the Fund . The Secretary of the Treasury is authorized
and directed to receive and hold in the Fund all moneys deposited therein
by a State agency from a State unemployment fund. Such deposit may be
made directly with the Secretary of the Treasury or with any Federal
reserve bank or member bank of the Federal Reserve System designated
by him for such purpose.
(b) It shall be the duty of the Secretary of the Treasury to invest
such portion of the Fund as is not, in his judgment, required to meet
current withdrawals. Such investment may be made only in interest-bearing
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 par, or
(2) by purchase of outstanding obligations at the market price. The
purposes for which obligations of the United States may be is- sued
under the Second Liberty Bond Act, as amended, are hereby extended to
authorize the issuance at par of special obligations exclusively to
the Fund. Such special obligations shall bear interest at a rate equal
to the average rate of interest, computed as of the end of the calendar
month next preceding the date of such issue, borne by all interest-bearing
obligations of the United States then forming part of the public debt;
except that where such average rate is not a multiple of one eighth
of 1 per centum, the rate of interest of such special obligations shall
be the multiple of one-eighth of 1 per centum next lower than such average
rate. Obligations other than such special obligations may be acquired
for the Fund only on such terms as to provide an investment yield not
less than the yield which would be required in the case of special obligations
if issued to the Fund upon the date of such acquisition.
(c) Any obligations acquired by the Fund (except special obligations
issued exclusively to the Fund) may be sold at the market price, and
such special obligations may be redeemed at par plus accrued interest.
(d) The interest on, and the proceeds from the sale or redemption of,
any obligations held in the Fund shall be credited to and form a part
of the Fund.
(e) The Fund shall be invested as a single fund, but the Secretary of
the Treasury shall maintain a separate book account for each State agency
and shall credit quarterly on March 31, June 30, September 30, and December
31, of each year, to each account, on the basis of the average daily
balance of such account, a proportionate part of the earnings of the
Fund for the quarter ending on such date.
(f) The Secretary of the Treasury is authorized and directed to pay
out of the Fund to any State agency such amount as it may duly requisition,
not exceeding the amount standing to the account of such State agency
at the time of such payment.
ADMINISTRATION, REFUNDS, AND PENALTIES
SEC. 905. (a) The tax imposed by this title shall be collected by the
Bureau of Internal Revenue under the direction of the Secretary of the
Treasury and shall be paid into the Treasury of the United States as
internal- revenue collections. If the tax is not paid when due, there
shall be added as part of the tax interest at the rate of one-half of
1 per centum per month from the date the tax became due until paid.
(b) Not later than January 31, next following the close of the taxable
year, each employer shall make a return of the tax under this title
for such taxable year. Each such return shall be made under oath, shall
be filed with the collector of internal revenue for the district in
which is located the principal place of business of the employer, or,
if he has no principal place of business in the United States, then
with the collector at Baltimore, Maryland, and shall contain such information
and be made in such manner as the Commissioner of Internal Revenue,
with the approval of the Secretary of the Treasury, may by regulations
prescribe. All provisions of law (including penalties) applicable in
respect of the taxes imposed by section 600 of the Revenue Act of 1926,
shall, insofar as not inconsistent with this title, be applicable in
respect of the tax imposed by this title. The Commissioner may extend
the time for filing the return of the tax imposed by this title, under
such rules and regulations as he may prescribe with the approval of
the Secretary of the Treasury, but no such extension shall be for more
than sixty days.
(c) Returns filed under this title shall be open to inspection in the
same manner, to the same extent, and subject to the same provisions
of law, including penalties, as returns made under Title II of the Revenue
Act of 1926.
(d) The taxpayer may elect to pay the tax in four equal installments
instead of in a single payment, in which case the first installment
shall be paid not later than the last day prescribed for the filing
of returns, the second installment shall be paid on or before the last
day of the third month, the third installment on or before the last
day of the sixth month, and the fourth installment on or before the
last day of the ninth month, after such last day. If the tax or any
installment thereof is not paid on or before the last day of the period
fixed for its payment, the whole amount of the tax unpaid shall be paid
upon notice and demand from the collector.
(e) At the request of the taxpayer the time for payment of the tax or
any installment thereof may be extended under regulations prescribed
by the Commissioner with the approval of the Secretary of the Treasury,
for a period not to exceed six months from the last day of the period
prescribed for the payment of the tax or any installment thereof. The
amount of the tax in respect of which any extension is granted shall
be paid (with inter- est at the rate of one-half of 1 per centum per
month) on or before the date of the expiration of the period of the
extension.
(f) In the payment of any tax under this title a fractional part of
a cent shall be disregarded unless it amounts to one-half cent or more,
in which case it shall be increased to 1 cent.
INTERSTATE COMMERCE
SEC. 906. No person required under a State law to make payments to an unemployment fund shall be relieved from compliance therewith on the ground that he is engaged in interstate commerce, or that the State law does not distinguish between employees engaged in interstate commerce and those engaged in intrastate commerce.
DEFINITIONS
SEC. 907. When used in this title -- (a) The term employer does not
include any person unless on each of some twenty days during the taxable
year, each day being in a different calendar week, the total number
of individuals who were in his employ for some portion of the day (whether
or not at the same moment of time) was eight or more.
(b) The term wages means all remuneration for employment, including
the cash value of all remuneration paid in any medium other than cash.
(c) The term employment means any service, of whatever nature, performed
within the United States by an employee for his employer, except-
(1) Agricultural labor;
(2) Domestic service in a private home;
(3) Service performed as an officer or member of a crew of a vessel
on the navigable waters of the United States;
(4) Service performed by an individual in the employ of his son, daughter,
or spouse, and service performed by a child under the age of twenty-one
in the employ of his father or mother;
(5) Service performed in the employ of the United States Government
or of an instrumentality of the United States;
(6) Service performed in the employ of a State, a political subdivision
thereof, or an instrumentality of one or more States or political subdivisions;
(7) Service performed in the employ of a corporation, community chest,
fund, or foundation, organized and operated exclusively for religious,
charitable, scientific, literary, or educational purposes, or for the
prevention of cruelty to children or animals, no part of the net earnings
of which inures to the benefit of any private shareholder or individual.
(d) The term State agency means any State officer, board, or other authority,
designated under a State law to administer the unemployment fund in
such State.
(e) The term unemployment fund means a special fund, established under
a State law and administered by a State agency, for the payment of compensation.
(f) The term contributions means payments required by a State law to
be made by an employer into an unemployment fund, to the extent that
such payments are made by him without any part thereof being deducted
or deductible from the wages of individuals in his employ.
(g) The term compensation means cash benefits payable to individuals
with respect to their unemployment.
RULES AND REGULATIONS
SEC. 908. The Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall make and publish rules and regulations for the enforcement of this title, except sections 903, 904, and 910.
ALLOWANCE OF ADDITIONAL CREDIT
SEC. 909. (a) In addition to the credit allowed under section 902,
a taxpayer may, subject to the conditions imposed by section 910, credit
against the tax imposed by section 901 for any taxable year after the
taxable year 1937, an amount, with respect to each State law, equal
to the amount, if any, by which the contributions, with respect to employment
in such taxable year, actually paid by the taxpayer under such law before
the date of filing his return for such taxable year, is exceeded by
whichever of the following is the lesser- (1) The amount of contributions
which he would have been required to pay under such law for such taxable
year if he had been subject to the highest rate applicable from time
to time throughout such year to any employer under such law; or (2)
Two and seven-tenths per centum of the wages payable by him with respect
to employment with respect to which contributions for such year were
required under such law.
(b) If the amount of the contributions actually so paid by the taxpayer
is less than the amount which he should have paid under the State law,
the additional credit under subsection (a) shall be reduced proportionately.
(c) The total credits allowed to a taxpayer under this title shall not
exceed 90 per centum of the tax against which such credits are taken.
CONDITIONS OF ADDITIONAL CREDIT ALLOWANCE
SEC. 910. (a) A taxpayer shall be allowed the additional credit under
section 909, with respect to his contribution rate under a State law
being lower, for any taxable year, than that of another employer subject
to such law, only if the Board finds that under such law--
(1) Such lower rate, with respect to contributions to a pooled fund,
is permitted on the basis of not less than three years of compensation
experience;
(2) Such lower rate, with respect to contributions to a guaranteed employment
account, is permitted only when his guaranty of employment was fulfilled
in the preceding calendar year, and such guaranteed employment account
amounts to not less than 7 « per centum of the total wages payable
by him, in accordance with such guaranty, with respect to employment
in such State in the preceding calendar year;
(3) Such lower rate, with respect to contributions to a separate reserve
account, is permitted only when
(A) compensation has been payable from such account throughout the preceding
calendar year, and
(B) such account amounts to not less than five times the largest amount
of compensation paid from such account within any one of the three preceding
calendar years, and
(C) such account amounts to not less than 7 « per centum of the
total wages payable by him (plus the total wages payable by any other
employers who may be contributing to such account) with respect to employment
in such State in the preceding calendar year.
(b) Such additional credit shall be reduced, if any contributions under
such law are made by such taxpayer at a lower rate under conditions
not fulfilling the requirements of subsection (a), by the amount bearing
the same ratio to such additional credit as the amount of contributions
made at such lower rate bears to the total of his contributions paid
for such year under such law.
(c) As used in this section-
(1) The term reserve account means a separate account in an unemployment
fund, with respect to an employer or group of employers, from which
compensation is payable only with respect to the unemployment of individuals
who were in the employ of such employer, or of one of the employers
comprising the group.
(2) The term pooled fund means an unemployment fund or any part thereof
in which all contributions are mingled and undivided, and from which
compensation is payable to all eligible individuals, except that to
individuals last employed by employers with respect to whom reserve
accounts are maintained by the State agency, it is payable only when
such accounts are exhausted.
(3) The term guaranteed employment account means a separate account,
in an unemployment fund, of contributions paid by an employer (or group
of employers) who
(A) guarantees in advance thirty hours of wages for each of forty calendar
weeks (or more, with one weekly hour deducted for each added week guaranteed)
in twelve months, to all the individuals in his employ in one or more
distinct establishments, except that any such individual s guaranty
may commence after a probationary period (included within twelve or
less consecutive calendar weeks), and
(B) gives security or assurance, satisfactory to the State agency, for
the fulfillment of such guaranties, from which account compensation
shall be payable with respect to the unemployment of any such individual
whose guaranty is not fulfilled or renewed and who is otherwise eligible
for compensation under the State law.
(4) The term year of compensation experience , as applied to an employer,
means any calendar year throughout which compensation was payable with
respect to any individual in his employ who became unemployed and was
eligible for compensation.
STATE PLANS FOR AID TO THE BLIND
SEC. 1002. (a) A State plan for aid to the blind 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 to any individual, whose claim for aid is denied,
an oppor- tunity for a fair hearing before such State agency;
(5) provide such methods of administration (other than those relating
to selection, tenure of office, and compensation of personnel) as are
found by the Board to be necessary for the efficient operation of the
plan;
(6) provide that the State agency will make such reports, in such form
and containing such information, as the Board may from time to time
require, and comply with such provisions as the Board may from time
to time find necessary to assure the correctness and verification of
such reports; and
(7) provide that no aid will be furnished any individual under the plan
with respect to any period with respect to which he is receiving old-age
assistance under the State plan approved under section 2 of this Act.
(b) The Board shall approve any plan which fulfills the conditions specified
in subsection (a), except that it shall not approve any plan which imposes,
as a condition of eligibility for aid to the blind under the plan-
(1) Any residence requirement which excludes any resident of the State
who has resided therein five years during the nine years immediately
preceding the application for aid and has resided therein continuously
for one year immediately preceding the application or
(2) Any citizenship requirement which excludes any citizen of the United
States.
PAYMENT TO STATES
SEC. 1003. (a) From the sums appropriated therefor, the Secretary of
the Treasury shall pay to each State which has an approved plan for
aid to the blind, for each quarter, beginning with the quarter commencing
July 1, 1935,
(1) an amount which shall be used exclusively as aid to the blind equal
to one-half of the total of the sums expended during such quarter as
aid to the blind under the State plan with respect to each individual
who is blind and is not an inmate of a public institution not counting
so much of such expenditure with respect to any individual for any month
as exceeds $30, and
(2) 5 per centum of such amount, which shall be used for paying the
costs of administering the State plan or for aid to the blind, or both,
and for no other purpose.
(b) The method of computing and paying such amounts shall be as follows:
(1) The Board shall, prior to the beginning of each quarter, estimate
the amount to be paid to the State for such quarter under provisions
of clause (1) of subsection (a), such estimate to be based on
(A) a report filed by the State containing its estimate of the total
sum to be expended in such quarter in accordance with the provisions
of such clause, and stating the amount appropriated or made available
by the State and its political subdivisions for such expenditures in
such quarter, and if such amount is less than one-half of the total
sum of such estimated expenditures, the source or sources from which
the difference is expected to be derived,
(B) records showing the number of blind individuals in the State, and
(C) such other investigation as the Board may find necessary.
(2) The Board shall then certify to the Secretary of the Treasury the
amount so estimated by the Board, reduced or increased, as the case
may be, by any sum by which it finds that its estimate for any prior
quarter was greater or less than the amount which should have been paid
to the State under clause (1) of subsection (a) for such quarter, except
to the extent that such sum has been applied to make the amount certified
for any prior quarter greater or less than the amount estimated by the
Board for such prior quarter.
(3) The Secretary of the Treasury shall thereupon, through the Division
of Disbursement of the Treasury Department and prior to audit or settlement
by the General Accounting Office, pay to the State, at the time or times
fixed by the Board, the amount so certified, increased by 5 per centum.
OPERATION OF STATE PLANS
SEC. 1004. In the case of any State plan for aid to the blind which
has been approved by the Board, if the Board, after reasonable notice
and opportunity for hearing to the State agency administering or supervising
the administration of such a plan, finds--
(1) that the plan has been so changed as to impose any residence or
citizenship requirement prohibited by section 1002 (b), or that in the
administration of the plan any such prohibited requirement is imposed,
with the knowledge of such State agency, in a substantial number of
cases; or
(2) that in the administration of the plan there is a failure to comply
substantially with any provision required by section 1002 (a) be included
in the plan; the Board shall notify such State agency that further payments
will not be made to the State until the Board is satisfied that such
prohibited requirement is no longer so imposed, and that there is no
longer any such failure to comply. Until it is satisfied it shall make
no further certification to the Secretary of the Treasury with respect
to such State.
ADMINISTRATION
SEC. 1005. There is hereby authorized to be appropriated for the fiscal year ending June 30, 1936 the sum of $30,000, for all necessary expenses of the Board in administering the provisions of this title.
DEFINITION
SEC. 1006. When used in this title the term aid to the blind means money payments to blind individuals.
TITLE XI- GENERAL PROVISIONS
DEFINITIONS SECTION 1101. (a) When used in this Act-
(1) The term State (except when used in section 531) includes Alaska,
Hawaii, and the District of Columbia.
(2) The term United States when used in a geographical sense means the
States, Alaska, Hawaii, and the District of Columbia.
(3) The term person means an individual, a trust or estate, a partnership,
or a corporation.
(4) The term corporation includes associations, joint-stock companies,
and insurance companies.
(5) The term shareholder includes a member in an association, joint-
stock company, or insurance company.
(6) The term employee includes an officer of a corporation.
(b) The terms includes and including when used in a definition contained
in this Act shall not be deemed to exclude other things otherwise within
the meaning of the term defined.
(c) Whenever under this Act or any Act of Congress, or under the law
of any State, an employer is required or permitted to deduct any amount
from the remuneration of an employee and to pay the amount deducted
to the United States, a State, or any political subdivision thereof,
then for the purposes of this Act the amount so deducted shall be considered
to have been paid to the employee at the time of such deduction.
(d) Nothing in this Act shall be construed as authorizing any Federal
official, agent, or representative, in carrying out any of the provisions
of this Act, to take charge of any child over the objection of either
of the parents of such child, or of the person standing in loco parentis
to such child.
RULES AND REGULATIONS
SEC. 1102. The Secretary of the Treasury, the Secretary of Labor, and the Social Security Board respectively, shall make and publish such rules and regulations, not inconsistent with this Act, as may be necessary to the efficient administration of the functions with which each is charged under this Act.
SEPARABILITY
SEC. 1103. If any provision of this Act, or the application thereof to any person or circumstance is held invalid, the remainder of the Act, and the application of such provision to other persons or circumstances shall not be affected thereby.
RESERVATION OF POWER
SEC. 1104. The right to alter, amend, or repeal any provision of this Act is hereby reserved to the Congress.
SHORT TITLE
SEC. 1105. This Act may be cited as the Social Security Act.
Approved, August 14, 1935.