Transcript of Social Security Act (1935) |
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,
TITLE I- GRANTS TO STATES FOR OLD-AGE ASSISTANCE
APPROPRIATION
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.
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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.
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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.
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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.
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TITLE V- GRANTS TO STATES FOR MATERNAL AND CHILD WELFARE
PART 1-MATERNAL AND CHILD HEALTH SERVICES
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 (1)
provide for financial participation by the State;
(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.
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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.
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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.
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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.
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TITLE IX- TAX ON EMPLOYERS OF EIGHT OR MORE
IMPOSITION OF TAX
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.
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TITLE X- GRANTS TO STATES FOR AID TO THE BLIND APPROPRIATION
SECTION 1001. For the purpose of enabling each State to furnish financial assistance,
as far as practicable under the conditions in such State, to needy individuals
who are blind, there is hereby authorized to be appropriated for the fiscal
year ending June 30, 1936, the sum of $3,000,000, 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, State plans for aid to the blind.
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.
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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.
Transcription courtesy of the United States Social Security Administration.