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US (United States) Code. Title 42. Chapter 7: Social Security

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-CITE-

42 USC CHAPTER 7 - SOCIAL SECURITY 01/06/03

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TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 7 - SOCIAL SECURITY

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CHAPTER 7 - SOCIAL SECURITY

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SUBCHAPTER I - GRANTS TO STATES FOR OLD-AGE ASSISTANCE

Sec.

301. Authorization of appropriations.

302. State old-age plans.

(a) Contents.

(b) Approval by Secretary.

303. Payments to States and certain territories;

computation of amount; eligibility of State to

receive payment.

(a) Computation of amounts.

(b) Method of computing and paying amounts.

304. Stopping payment on deviation from required

provisions of plan or failure to comply

therewith.

305. Omitted.

306. Definitions.

SUBCHAPTER II - FEDERAL OLD-AGE, SURVIVORS, AND DISABILITY

INSURANCE BENEFITS

401. Trust Funds.

(a) Federal Old-Age and Survivors Insurance

Trust Fund.

(b) Federal Disability Insurance Trust Fund.

Congress.

(d) Investments.

(e) Sale of acquired obligations.

(f) Proceeds from sale or redemption of

obligations; interest.

(g) Payments into Treasury.

(h) Benefit payments.

(i) Gifts and bequests.

(j) Travel expenses.

(k) Experiment and demonstration project

expenditures.

(l) Interfund borrowing.

(m) Accounting for unnegotiated benefit checks.

401a. Omitted.

402. Old-age and survivors insurance benefit payments.

(a) Old-age insurance benefits.

(b) Wife's insurance benefits.

(d) Child's insurance benefits.

(e) Widow's insurance benefits.

(f) Widower's insurance benefits.

(g) Mother's and father's insurance benefits.

(h) Parent's insurance benefits.

(i) Lump-sum death payments.

(j) Application for monthly insurance benefits.

(k) Simultaneous entitlement to benefits.

(l) Entitlement to survivor benefits under

railroad retirement provisions.

(m) Repealed.

(n) Termination of benefits upon deportation of

primary beneficiary.

(o) Application for benefits by survivors of

members and former members of uniformed

services.

(p) Extension of period for filing proof of

support and applications for lump-sum death

payment.

(q) Reduction of benefit amounts for certain

beneficiaries.

(r) Presumed filing of application by

individuals eligible for old-age insurance

benefits and for wife's or husband's

insurance benefits.

(s) Child over specified age to be disregarded

for certain benefit purposes unless

disabled.

(t) Suspension of benefits of aliens who are

outside United States; residency

requirements for dependents and survivors.

(u) Conviction of subversive activities, etc.

(v) Waiver of benefits.

(w) Increase in old-age insurance benefit

amounts on account of delayed retirement.

(x) Limitation on payments to prisoners and

certain other inmates of publicly funded

institutions.

(y) Limitation on payments to aliens.

403. Reduction of insurance benefits.

(a) Maximum benefits.

(b) Deductions on account of work.

outside United States or failure to have

child in care.

(d) Deductions from dependent's benefits on

account of noncovered work outside United

States by old-age insurance beneficiary.

(e) Occurrence of more than one event.

(f) Months to which earnings are charged.

(g) Penalty for failure to report certain

events.

(h) Report of earnings to Commissioner.

(i) Repealed.

(j) Attainment of retirement age.

(k) Noncovered remunerative activity outside

United States.

(l) Good cause for failure to make reports

required.

404. Overpayments and underpayments.

(a) Procedure for adjustment or recovery.

(b) No recovery from persons without fault.

officers.

(d) Payment to survivors or heirs when eligible

person is deceased.

(e) Adjustments due to supplemental security

income payments.

(f) Collection of delinquent amounts.

(g) Recovery of overpayment of supplemental

security income benefits.

405. Evidence, procedure, and certification for

payments.

(a) Rules and regulations; procedures.

(b) Administrative determination of entitlement

to benefits; findings of fact; hearings;

investigations; evidentiary hearings in

reconsiderations of disability benefit

terminations; subsequent applications.

(d) Issuance of subpenas in administrative

proceedings.

(e) Judicial enforcement of subpenas; contempt.

(f) Repealed.

(g) Judicial review.

(h) Finality of Commissioner's decision.

(i) Certification for payment.

(j) Representative payees.

(k) Payments to incompetents.

(l) Delegation of powers and duties by

Commissioner.

(m) Repealed.

(n) Joint payments.

(o) Crediting of compensation under Railroad

Retirement Act.

(p) Special rules in case of Federal service.

(q) Expedited benefit payments.

(r) Use of death certificates to correct program

information.

(s) Notice requirements.

(t) Same-day personal interviews at field

offices in cases where time is of essence.

(u) Redetermination of entitlement.

405a. Regulations pertaining to frequency or due dates

of payments and reports under voluntary

agreements covering State and local employees;

effective date.

406. Representation of claimants before Commissioner.

(a) Recognition of representatives; fees for

representation before Commissioner.

(b) Fees for representation before court.

attorneys.

(d) Assessment on attorneys.

407. Assignment of benefits.

(a) In general.

(b) Amendment of section.

408. Penalties.

(a) In general.

(b) Violations by certified payees.

definitions.

(d) Application of subsection (a)(6) and (7) to

certain aliens.

409. "Wages" defined.

(a) In general.

(b) Regulations providing exclusions from term.

(d) Members of uniformed services.

(e) Peace Corps volunteers.

(f) Tips.

(g) Members of religious orders.

(h) Retired justices and judges.

(i) Employer contributions under sections 401(k)

and 414(h)(2) of Internal Revenue Code.

(j) Amounts deferred under nonqualified deferred

compensation plans.

(k) "National average wage index" and "deferred

compensation amount" defined.

410. Definitions relating to employment.

(a) Employment.

(b) Included and excluded service.

(d) American aircraft.

(e) American employer.

(f) Agricultural labor.

(g) Farm.

(h) State.

(i) United States.

(j) Employee.

(k) Covered transportation service.

(l) Service in uniformed services.

(m) Member of a uniformed service.

(n) Crew leader.

(o) Peace Corps volunteer service.

(p) Medicare qualified government employment.

(q) Treatment of real estate agents and direct

sellers.

(r) Service in employ of international

organizations by certain transferred

Federal employees.

410a. Transferred.

411. Definitions relating to self-employment.

(a) Net earnings from self-employment.

(b) Self-employment income.

(d) Partnership and partner.

(e) Taxable year.

(f) Partner's taxable year ending as result of

death.

(g) Regular basis.

(h) Option dealers and commodity dealers.

(i) Church employee income.

(j) Codification of treatment of certain

termination payments received by former

insurance salesmen.

412. Self-employment income credited to calendar years.

413. Quarter and quarter of coverage.

(a) Definitions.

(b) Crediting of wages paid in 1937.

of coverage with respect to wages in period

from 1937 to 1950.

(d) Amount required for a quarter of coverage.

414. Insured status for purposes of old-age and

survivors insurance benefits.

(a) "Fully insured individual" defined.

(b) "Currently insured individual" defined.

415. Computation of primary insurance amount.

(a) Primary insurance amount.

(b) Average indexed monthly earnings; average

monthly wage.

cases.

(d) Primary insurance amount under 1939 Act.

(e) Certain wages and self-employment income not

to be counted.

(f) Recomputation of benefits.

(g) Rounding of benefits.

(h) Service of certain Public Health Service

Officers.

(i) Cost-of-living increases in benefits.

416. Additional definitions.

(a) Spouse; surviving spouse.

(b) Wife.

(d) Divorced spouses; divorce.

(e) Child.

(f) Husband.

(g) Widower.

(h) Determination of family status.

(i) Disability; period of disability.

(j) Periods of limitation ending on nonwork

days.

(k) Waiver of nine-month requirement for widow,

stepchild, or widower in case of accidental

death or in case of serviceman dying in

line of duty, or in case of remarriage to

same individual.

(l) Retirement age.

417. Benefits for veterans.

(a) Determination of benefits.

(b) Determination of insurance status.

(d) Definitions.

(e) Determination based on wages and

self-employment.

(f) Right to annuity; waiver.

(g) Appropriation to trust funds.

(h) Determination of veterans status.

418. Voluntary agreements for coverage of State and

local employees.

(a) Purpose of agreement.

(b) Definitions.

(d) Positions covered by retirement systems.

(e) Effective date of agreement; retroactive

coverage.

(f) Duration of agreement.

(g) Instrumentalities of two or more States.

(h) Delegation of functions.

(i) Wisconsin Retirement Fund.

(j) Certain positions no longer covered by

retirement systems.

(k) Certain employees of State of Utah.

(l) Policemen and firemen in certain States.

(m) Positions compensated solely on a fee basis.

(n) Optional medicare coverage of current

employees.

419. Repealed.

420. Disability provisions inapplicable if benefit

rights impaired.

421. Disability determinations.

(a) State agencies.

(b) Determinations by Commissioner.

(d) Hearings and judicial review.

(e) State's right to cost from Trust Funds.

(f) Use of funds.

(g) Regulations governing determinations in

certain cases.

(h) Evaluation of mental impairments by

qualified medical professionals.

(i) Review of disability cases to determine

continuing eligibility; permanent

disability cases; appropriate number of

cases reviewed; reporting requirements.

(j) Rules and regulations; consultative

examinations.

(k) Establishment of uniform standards for

determination of disability.

(l) Special notice to blind individuals with

respect to hearings and other official

actions.

(m) Work activity as basis for review.

422. Rehabilitation services.

(a),

(b) Repealed.

(d) Cost of rehabilitation services from trust

funds.

(e) Treatment referrals for individuals with

alcoholism or drug addiction condition.

423. Disability insurance benefit payments.

(a) Disability insurance benefits.

(b) Filing application.

(d) "Disability" defined.

(e) Engaging in substantial gainful activity.

(f) Standard of review for termination of

disability benefits.

(g) Continued payment of disability benefits

during appeal.

(h) Interim benefits in cases of delayed final

decisions.

(i) Reinstatement of entitlement.

(j) Limitation on payments to prisoners.

424. Repealed.

424a. Reduction of disability benefits.

(a) Conditions for reduction; computation.

(b) Reduction where benefits payable on other

than monthly basis.

provisions.

(d) Exception.

(e) Conditions for payment.

(f) Redetermination of reduction.

(g) Proportionate reduction; application of

excess.

(h) Furnishing of information.

425. Additional rules relating to benefits based on

disability.

(a) Suspension of benefits.

(b) Continued payments during rehabilitation

program.

426. Entitlement to hospital insurance benefits.

(a) Individuals over 65 years.

(b) Individuals under 65 years.

(d) "Qualified railroad retirement beneficiary"

defined.

(e) Benefits for widows and widowers.

(f) Medicare waiting period for recipients of

disability benefits.

(g) Information regarding eligibility of Federal

employees.

(h) Waiver of waiting period for individuals

with ALS.

(i) Continuing eligibility of certain terminated

individuals.

(j) Certain uninsured individuals.

426-1. End stage renal disease program.

(a) Entitlement to benefits.

(b) Duration of period of entitlement.

dialysis training programs; kidney

transplant failures; resumption of

previously terminated regular course of

dialysis.

individuals.

426a. Transitional provision on eligibility of uninsured

individuals for hospital insurance benefits.

(a) Entitlement to benefits.

(b) Persons ineligible.

427. Transitional insured status for purposes of

old-age and survivors benefits.

(a) Determination of entitlement to benefits

under section 402(a) to (c) of this title.

(b) Determination of entitlement to surviving

spouse's benefits under section 402(e) or

(f) of this title.

reason of subsection (a) deemed to meet

requirements of subsection (b).

428. Benefits at age 72 for certain uninsured

individuals.

(a) Eligibility.

(b) Amount of benefits.

benefits.

(d) Suspension for months in which cash payments

are made under public assistance or in

which supplemental security income benefits

are payable.

(e) Suspension where individual is residing

outside United States.

(f) Treatment as monthly insurance benefits.

(g) Annual reimbursement of Federal Old-Age and

Survivors Insurance Trust Fund.

(h) Definitions.

429. Benefits in case of members of uniformed services.

430. Adjustment of contribution and benefit base.

(a) Determination and publication by

Commissioner in Federal Register subsequent

to cost-of-living benefit increase;

effective date.

(b) Determination of amount.

cost-of-living benefit increase.

(d) Determinations for calendar years after 1976

for purposes of retirement benefit plans.

431. Benefits for certain individuals interned by

United States during World War II.

(a) "Internee" defined.

(b) Applicability in determining entitlement to

and amount of monthly benefits and lump-sum

death payments, and period of disability;

effect of payment of benefits by other

agency or instrumentality of United States.

432. Processing of tax data.

433. International agreements.

(a) Purpose of agreement.

(b) Definitions.

payment of benefits.

(d) Regulations.

(e) Reports to Congress; effective date of

agreements.

434. Demonstration project authority.

(a) Authority.

(b) Requirements.

requirements.

(d) Reports.

SUBCHAPTER III - GRANTS TO STATES FOR UNEMPLOYMENT COMPENSATION

ADMINISTRATION

501. Use of available funds.

502. Payments to States; computation of amounts.

(a) Certification of amounts.

(b) Payment of amounts.

503. State laws.

(a) Provisions required.

(b) Failure to comply; payments stopped.

records to Railroad Retirement Board;

cooperation with Federal agencies.

(d) Disclosure of unemployment compensation

information; deduction and withholding of

amounts owed to State food stamp agencies;

reimbursement of administrative costs;

non-compliance of State agency.

(e) Disclosure of wage information;

non-compliance of State agency.

(f) Income and eligibility verification system.

(g) Recovery of unemployment benefit payments.

(h) Disclosure to Secretary of Health and Human

Services of wage and unemployment

compensation claims information; suspension

by Secretary of Labor of payments to State

for noncompliance.

(i) Access to State employment records.

(j) Worker profiling.

504. Judicial review.

(a) Finding by Secretary of Labor; petition for

review; filing of record.

(b) Findings of fact by Secretary of Labor; new

or modified findings.

action; review by Supreme Court.

(d) Stay of Secretary's action.

SUBCHAPTER IV - GRANTS TO STATES FOR AID AND SERVICES TO NEEDY

FAMILIES WITH CHILDREN AND FOR CHILD-WELFARE SERVICES

PART A - BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR NEEDY

FAMILIES

601. Purpose.

(a) In general.

(b) No individual entitlement.

602. Eligible States; State plan.

(a) In general.

(b) Plan amendments.

603. Grants to States.

(a) Grants.

(b) Contingency Fund.

603a. Transferred.

604. Use of grants.

(a) General rules.

(b) Limitation on use of grant for

administrative purposes.

under rules of former State.

(d) Authority to use portion of grant for other

purposes.

(e) Authority to reserve certain amounts for

assistance.

(f) Authority to operate employment placement

program.

(g) Implementation of electronic benefit

transfer system.

(h) Use of funds for individual development

accounts.

(i) Sanction welfare recipients for failing to

ensure that minor dependent children attend

school.

(j) Requirement for high school diploma or

equivalent.

(k) Limitations on use of grant for matching

under certain Federal transportation

program.

604a. Services provided by charitable, religious, or

private organizations.

(a) In general.

(b) Religious organizations.

organizations.

(d) Religious character and freedom.

(e) Rights of beneficiaries of assistance.

(f) Employment practices.

(g) Nondiscrimination against beneficiaries.

(h) Fiscal accountability.

(i) Compliance.

(j) Limitations on use of funds for certain

purposes.

(k) Preemption.

605. Administrative provisions.

(a) Quarterly.

(b) Notification.

States.

(d) Payment method.

606. Federal loans for State welfare programs.

(a) Loan authority.

(b) Rate of interest.

(d) Limitation on total amount of loans to

State.

(e) Limitation on total amount of outstanding

loans.

(f) Appropriation.

607. Mandatory work requirements.

(a) Participation rate requirements.

(b) Calculation of participation rates.

(d) "Work activities" defined.

(e) Penalties against individuals.

(f) Nondisplacement in work activities.

(g) Sense of Congress.

(h) Sense of Congress that States should impose

certain requirements on noncustodial,

nonsupporting minor parents.

(i) Review of implementation of State work

programs.

608. Prohibitions; requirements.

(a) In general.

(b) Individual responsibility plans.

wage reductions.

(d) Nondiscrimination provisions.

(e) Special rules relating to treatment of

certain aliens.

(f) Special rules relating to treatment of

non-213A aliens.

(g) State required to provide certain

information.

608a. Fraud under means-tested welfare and public

assistance programs.

(a) In general.

(b) Welfare or public assistance programs for

which Federal funds are appropriated.

609. Penalties.

(a) In general.

(b) Reasonable cause exception.

(d) Limitation on amount of penalties.

610. Appeal of adverse decision.

(a) In general.

(b) Administrative review.

611. Data collection and reporting.

(a) Quarterly reports by States.

(b) Annual reports to Congress by Secretary.

611a. State required to provide certain information.

612. Direct funding and administration by Indian

tribes.

(a) Grants for Indian tribes.

(b) 3-year tribal family assistance plan.

time limits.

(d) Emergency assistance.

(e) Accountability.

(f) Eligibility for Federal loans.

(g) Penalties.

(h) Data collection and reporting.

(i) Special rule for Indian tribes in Alaska.

613. Research, evaluations, and national studies.

(a) Research.

(b) Development and evaluation of innovative

approaches to reducing welfare dependency

and increasing child well-being.

(d) Annual ranking of States and review of most

and least successful work programs.

(e) Annual ranking of States and review of

issues relating to out-of-wedlock births.

(f) State-initiated evaluations.

(g) Report on circumstances of certain children

and families.

(h) Funding of studies and demonstrations.

(i) Child poverty rates.

(j) Evaluation of welfare-to-work programs.

614. Study by Census Bureau.

(a) In general.

(b) Appropriation.

615. Waivers.

(a) Continuation of waivers.

(b) State option to terminate waiver.

waivers.

(d) Continuation of individual waivers.

616. Administration.

617. Limitation on Federal authority.

618. Funding for child care.

(a) General child care entitlement.

(b) Use of funds.

Block Grant Act of 1990.

(d) "State" defined.

619. Definitions.

PART B - CHILD AND FAMILY SERVICES

SUBPART 1 - CHILD WELFARE SERVICES

620. Authorization of appropriations.

621. Allotments to States.

(a) Allotment formula.

(b) Allotment percentage.

(d) "United States" defined.

622. State plans for child welfare services.

(a) Joint development.

(b) Requisite features of State plans.

623. Payment to States.

(a) Payment schedule.

(b) Computation and method of payment.

(d) Minimum State expenditures.

624. Reallotment.

(a) In general.

(b) Exception relating to foster child

protections.

625. Definitions.

626. Research, training, or demonstration projects.

(a) Authorization of appropriations.

(b) Appropriations for demonstration projects

for development of alternate care

arrangements for infants not requiring

hospitalization.

installments; conditions.

627. Repealed.

628. Payments to Indian tribal organizations.

(a) Amounts.

(b) Inclusion in State allotment.

defined.

628a. Child welfare traineeships.

628b. National random sample study of child welfare.

(a) In general.

(b) Requirements.

(d) Reports.

(e) Appropriation.

SUBPART 2 - PROMOTING SAFE AND STABLE FAMILIES

629. Findings and purpose.

(a) Findings.

(b) Purpose.

629a. Definitions.

(a) In general.

(b) Other terms.

629b. State plans.

(a) Plan requirements.

(b) Approval of plans.

629c. Allotments to States.

(a) Indian tribes.

(b) Territories.

(d) Reallotments.

629d. Payments to States.

(a) Entitlement.

(b) Prohibitions.

Indian tribes.

629e. Evaluations; research; technical assistance.

(a) Evaluations.

(b) Coordination of evaluations.

(d) Technical assistance.

629f. Authorization of appropriations; reservation of

certain amounts.

(a) Authorization.

(b) Reservation of certain amounts.

629g. Discretionary grants.

(a) Limitations on authorization of

appropriations.

(b) Reservation of certain amounts.

(d) Grants.

(e) Applicability of certain rules.

629h. Entitlement funding for State courts to assess and

improve handling of proceedings relating to

foster care and adoption.

(a) In general.

(b) Applications.

(d) Federal share.

629i. Grants for programs for mentoring children of

prisoners.

(a) Findings and purpose.

(b) Definitions.

(d) Application requirements.

(e) Federal share.

(f) Considerations in awarding grants.

(g) Evaluation.

(h) Authorization of appropriations; reservation

of certain amounts.

PART C - WORK INCENTIVE PROGRAM FOR RECIPIENTS OF AID UNDER STATE

PLAN APPROVED UNDER PART A

630 to 645. Repealed or Omitted.

PART D - CHILD SUPPORT AND ESTABLISHMENT OF PATERNITY

651. Authorization of appropriations.

652. Duties of Secretary.

(a) Establishment of separate organizational

unit; duties.

(b) Certification of child support obligations

to Secretary of the Treasury for

collection.

States.

(d) Child support management information system.

(e) Technical assistance to States.

(f) Regulations.

(g) Performance standards for State paternity

establishment programs.

(h) Prompt State response to requests for child

support assistance.

(i) Prompt State distribution of amounts

collected as child support.

(j) Training of Federal and State staff,

research and demonstration programs, and

special projects of regional or national

significance.

(k) Denial of passports for nonpayment of child

support.

(l) Facilitation of agreements between State

agencies and financial institutions.

653. Federal Parent Locator Service.

(a) Establishment; purpose.

(b) Disclosure of information to authorized

persons.

(d) Form and manner of request for information.

(e) Compliance with request; search of files and

records by head of any department, etc., of

United States; transmittal of information

to Secretary; reimbursement for cost of

search; fees.

(f) Arrangements and cooperation with State

agencies.

(g) Reimbursement for reports by State agencies.

(h) Federal Case Registry of Child Support

Orders.

(i) National Directory of New Hires.

(j) Information comparisons and other

disclosures.

(k) Fees.

(l) Restriction on disclosure and use.

(m) Information integrity and security.

(n) Federal Government reporting.

(o) Use of set-aside funds.

(p) "Support order" defined.

653a. State Directory of New Hires.

(a) Establishment.

(b) Employer information.

(d) Civil money penalties on noncomplying

employers.

(e) Entry of employer information.

(f) Information comparisons.

(g) Transmission of information.

(h) Other uses of new hire information.

654. State plan for child and spousal support.

654a. Automated data processing.

(a) In general.

(b) Program management.

(d) Information integrity and security.

(e) State case registry.

(f) Information comparisons and other

disclosures of information.

(g) Collection and distribution of support

payments.

(h) Expedited administrative procedures.

654b. Collection and disbursement of support payments.

(a) State disbursement unit.

(b) Required procedures.

(d) "Business day" defined.

655. Payments to States.

(a) Amounts payable each quarter.

(b) Estimate of amounts payable; installment

payments.

(d) State reports.

(e) Special project grants for interstate

enforcement; appropriations.

(f) Direct Federal funding to Indian tribes and

tribal organizations.

655a. Provision for reimbursement of expenses.

656. Support obligation as obligation to State; amount;

discharge in bankruptcy.

(a) Collection processes.

(b) Nondischargeability.

657. Distribution of collected support.

(a) In general.

(b) Continuation of assignments.

(d) Gap payments not subject to distribution

under this section.

(e) Amounts collected for child for whom foster

care maintenance payments are made.

658. Repealed.

658a. Incentive payments to States.

(a) In general.

(b) Amount of incentive payment.

(d) Administrative provisions.

(e) Regulations.

(f) Reinvestment.

659. Consent by United States to income withholding,

garnishment, and similar proceedings for

enforcement of child support and alimony

obligations.

(a) Consent to support enforcement.

(b) Consent to requirements applicable to

private person.

process.

(d) Priority of claims.

(e) No requirement to vary pay cycles.

(f) Relief from liability.

(g) Regulations.

(h) Moneys subject to process.

(i) Definitions.

659a. International support enforcement.

(a) Authority for declarations.

(b) Standards for foreign support enforcement

procedures.

Authority.

(d) Effect on other laws.

660. Civil action to enforce child support obligations;

jurisdiction of district courts.

661, 662. Repealed.

663. Use of Federal Parent Locator Service in

connection with enforcement or determination of

child custody in cases of parental kidnaping of

child.

(a) Agreements with States for use of Federal

Parent Locator Service.

(b) Requests from authorized persons for

information.

(d) "Custody or visitation determination" and

"authorized person" defined.

(e) Agreement on use of Federal Parent Locator

Service with United States Central

Authority under Convention on the Civil

Aspects of International Child Abduction.

(f) Agreement to assist in locating missing

children under Federal Parent Locator

Service.

664. Collection of past-due support from Federal tax

refunds.

(a) Procedures applicable; distribution.

(b) Regulations; contents, etc.

665. Allotments from pay for child and spousal support

owed by members of uniformed services on active

duty.

(a) Mandatory allotment; notice upon failure to

make; amount of allotment; adjustment or

discontinuance; consultation.

(b) "Authorized person" defined.

666. Requirement of statutorily prescribed procedures

to improve effectiveness of child support

enforcement.

(a) Types of procedures required.

(b) Withholding from income of amounts payable

as support.

(d) Exemption of States.

(e) "Overdue support" defined.

(f) Uniform Interstate Family Support Act.

(g) Laws voiding fraudulent transfers.

667. State guidelines for child support awards.

(a) Establishment of guidelines; method.

(b) Availability of guidelines; rebuttable

presumption.

furnish Secretary with copies.

668. Encouragement of States to adopt civil procedure

for establishing paternity in contested cases.

669. Collection and reporting of child support

enforcement data.

(a) In general.

(b) Types of services.

(d) Rule of interpretation.

669a. Nonliability for financial institutions providing

financial records to State child support

enforcement agencies in child support cases.

(a) In general.

(b) Prohibition of disclosure of financial

record obtained by State child support

enforcement agency.

(d) Definitions.

669b. Grants to States for access and visitation

programs.

(a) In general.

(b) Amount of grant.

(d) No supplantation of State expenditures for

similar activities.

(e) State administration.

PART E - FEDERAL PAYMENTS FOR FOSTER CARE AND ADOPTION ASSISTANCE

670. Congressional declaration of purpose;

authorization of appropriations.

671. State plan for foster care and adoption

assistance.

(a) Requisite features of State plan.

(b) Approval of plan by Secretary.

672. Foster care maintenance payments program.

(a) Qualifying children.

(b) Additional qualifications.

institution" defined.

(d) Children removed from their homes pursuant

to voluntary placement agreements.

(e) Placements in best interest of child.

(f) "Voluntary placement" and "voluntary

placement agreement" defined.

(g) Revocation of voluntary placement agreement.

(h) Aid for dependent children; assistance for

minor children in needy families.

673. Adoption assistance program.

(a) Agreements with adoptive parents of children

with special needs; State payments;

qualifying children; amount of payments;

changes in circumstances; placement period

prior to adoption; nonrecurring adoption

expenses.

(b) Aid for dependent children; assistance for

minor children in needy families.

673a. Interstate compacts.

673b. Adoption incentive payments.

(a) Grant authority.

(b) Incentive-eligible State.

(d) Adoption incentive payment.

(e) 2-year availability of incentive payments.

(f) Limitations on use of incentive payments.

(g) Definitions.

(h) Limitations on authorization of

appropriations.

(i) Technical assistance.

(j) Supplemental grants.

674. Payments to States.

(a) Amounts.

(b) Quarterly estimates of State's entitlement

for next quarter; payments; United States'

pro rata share of amounts recovered as

overpayment; allowance, disallowance, or

deferral of claim.

(d) Reduction for violation of plan requirement.

(e) Discretionary grants for educational and

training vouchers for youths aging out of

foster care.

675. Definitions.

676. Administration.

(a) Technical assistance to States.

(b) Data collection and evaluation.

677. John H. Chafee Foster Care Independence Program.

(a) Purpose.

(b) Applications.

(d) Use of funds.

(e) Penalties.

(f) Data collection and performance measurement.

(g) Evaluations.

(h) Limitations on authorization of

appropriations.

(i) Educational and training vouchers.

678. Rule of construction.

679. Collection of data relating to adoption and foster

care.

(a) Advisory Committee on Adoption and Foster

Care Information.

(b) Report to Congress; regulations.

679a. National Adoption Information Clearinghouse.

679b. Annual report.

PART F - JOB OPPORTUNITIES AND BASIC SKILLS TRAINING PROGRAM

681 to 687. Repealed.

SUBCHAPTER V - MATERNAL AND CHILD HEALTH SERVICES BLOCK GRANT

701. Authorization of appropriations; purposes;

definitions.

702. Allotment to States and Federal set-aside.

(a) Special projects.

(b) Excess funds; preference.

(d) Re-allotment of unallotted funds.

703. Payments to States.

(a) Statutory provisions applicable.

(b) Unobligated allotments.

supplies or equipment, value of salaries,

travel expenses, etc.

703a. Omitted.

704. Use of allotment funds.

(a) Covered services.

(b) Restrictions.

(d) Limitation on use of funds for

administrative costs.

704a. Omitted.

704b. Nonavailability of allotments after close of

fiscal year.

705. Application for block grant funds.

706. Administrative and fiscal accountability.

(a) Annual reporting requirements; form, etc.

(b) Audits; implementation, standards, etc.

(d) Access to books, records, etc.; creation of

new records.

707. Criminal penalty for false statements.

708. Nondiscrimination provisions.

(a) Federally funded activities.

(b) Compliance.

actions.

709. Administration of Federal and State programs.

710. Separate program for abstinence education.

(a) In general.

(b) Purpose of allotment.

(d) Appropriations.

711 to 731. Omitted or Repealed.

SUBCHAPTER VI - GRANTS TO STATES FOR SERVICES TO AGED, BLIND, OR

DISABLED

801 to 805. Repealed.

SUBCHAPTER VII - ADMINISTRATION

901. Social Security Administration.

902. Commissioner; Deputy Commissioner; other officers.

(a) Commissioner of Social Security.

(b) Deputy Commissioner of Social Security.

(d) Chief Financial Officer.

(e) Inspector General.

903. Social Security Advisory Board.

(a) Establishment of Board.

(b) Functions of Board.

(d) Terms of appointment.

(e) Chairman.

(f) Expenses and per diem.

(g) Meetings.

(h) Federal Advisory Committee Act.

(i) Personnel.

(j) Authorization of appropriations.

904. Administrative duties of Commissioner.

(a) Personnel.

(b) Budgetary matters.

(d) Seal of office.

(e) Data exchanges.

905, 905a. Transferred.

906. Training grants for public welfare personnel.

(a) Authorization of appropriations.

(b) Allocation for carrying out direct grant

programs.

programs to certain agencies and

institutions.

(d) Advance payments to States.

(e) Reallotments.

(f) Direct grants to certain agencies and

institutions.

907. Repealed.

907a. National Commission on Social Security.

(a) Establishment; membership; Chairman and Vice

Chairman; quorum; terms of office;

vacancies; per diem and expense

reimbursement; meetings.

(b) Continuing study, investigation, and review

of social security program; scope of study,

etc., and public participation.

President and Congress concerning

implementation, etc., of study,

investigation, and review responsibilities;

termination of Commission.

(d) Executive Director and additional personnel;

appointment and compensation.

(e) Administrative procedures.

(f) Data and information from other Federal

departments and agencies.

(g) Administrative support services from General

Services Administration; reimbursement.

(h) Authorization of appropriations.

908. Omitted.

909. Delivery of benefit checks.

(a) Saturdays, Sundays, and holidays.

(b) Recovery of overpayments.

910. Recommendations by Board of Trustees to remedy

inadequate balances in Social Security trust

funds.

(a) Terms and conditions of recommendations.

(b) "Balance ratio" defined.

911. Budgetary treatment of trust fund operations.

912. Office of Rural Health Policy.

913. Duties and authority of Secretary.

SUBCHAPTER VIII - SPECIAL BENEFITS FOR CERTAIN WORLD WAR II

VETERANS

1001. Basic entitlement to benefits.

1002. Qualified individuals.

1003. Residence outside the United States.

1004. Disqualifications.

(a) In general.

(b) Requirement for Attorney General.

1005. Benefit amount.

1006. Applications and furnishing of information.

(a) In general.

(b) Verification requirement.

1007. Representative payees.

(a) In general.

(b) Examination of fitness of prospective

representative payee.

undesirable payees.

(d) Persons ineligible to serve as

representative payees.

(e) Deferral of payment pending appointment of

representative payee.

(f) Hearing.

(g) Notice requirements.

(h) Accountability monitoring.

(i) Restitution.

1008. Overpayments and underpayments.

(a) In general.

(b) No effect on subchapter VIII eligibility or

benefit amount.

(d) Limited immunity for disbursing officers.

(e) Authorized collection practices.

1009. Hearings and review.

(a) Hearings.

(b) Judicial review.

1010. Other administrative provisions.

(a) Regulations and administrative arrangements.

(b) Payment of benefits.

(d) Suspension and termination of benefits.

1010a. Optional Federal administration of State

recognition payments.

(a) In general.

(b) Agreement terms.

1011. Penalties for fraud.

(a) In general.

(b) Restitution by representative payee.

1012. Definitions.

1013. Appropriations.

SUBCHAPTER IX - EMPLOYMENT SECURITY ADMINISTRATIVE FINANCING

1101. Employment Security Administration Account.

(a) Establishment.

(b) Amount credited to Account; transfer of

funds; adjustments; repayment of internal

revenue refunds.

expenses; quarterly transfer of funds;

adjustments; limitation; estimate of net

receipts.

(d) Additional tax attributable to reduced

credits; transfer of funds.

(e) Revolving fund; appropriations; advances to

Account; repayment; interest.

(f) Determination of excess in Account;

limitation on amount to be retained; use of

balance in Account during certain fiscal

years; net balance.

1102. Transfers between Federal Unemployment Account and

Employment Security Administration Account.

(a) Determination of excess; amount transferred.

(b) Unemployment account excesses.

1103. Amounts transferred to State accounts.

(a) Determination and certification by Secretary

of Labor.

(b) Transfer of funds where State is ineligible.

(d) Special transfer in fiscal year 2002.

1104. Unemployment Trust Fund.

(a) Establishment.

(b) Investments.

(d) Treatment of interest and proceeds.

(e) Separate book accounts.

(f) Payment to State agencies and Railroad

Retirement Board.

(g) Federal unemployment account; establishment.

1105. Extended Unemployment Compensation Account.

(a) Establishment.

(b) Transfers to account.

(d) Advances to account; repayment.

1106. Unemployment compensation research program.

1107. Personnel training.

(a) Creation of program.

(b) Repayment of costs.

(d) Authorization of appropriations.

1108. Advisory Council on Unemployment Compensation.

(a) Establishment.

(b) Function.

(d) Staff and other assistance.

(e) Compensation.

(f) Report.

1109. Federal Employees Compensation Account.

1110. Borrowing between Federal accounts.

(a) In general.

(b) Treatment of advance.

SUBCHAPTER X - GRANTS TO STATES FOR AID TO BLIND

1201. Authorization of appropriations.

1202. State plans for aid to blind.

1202a. Repealed.

1203. Payment to States.

(a) Authorization of payments.

(b) Computation of amounts.

1204. Operation of State plans.

1205. Omitted.

1206. "Aid to the blind" defined.

SUBCHAPTER XI - GENERAL PROVISIONS, PEER REVIEW, AND ADMINISTRATIVE

SIMPLIFICATION

PART A - GENERAL PROVISIONS

1301. Definitions.

1301-1,

1301a. Omitted.

1302. Rules and regulations; impact analyses of Medicare

and Medicaid rules and regulations on small rural

hospitals.

1303. Separability.

1304. Reservation of right to amend or repeal.

1305. Short title of chapter.

1306. Disclosure of information in possession of Social

Security Administration or Department of Health

and Human Services.

(a) Disclosure prohibited; exceptions.

(b) Requests for information and services.

(d) Compliance with requests.

(e) Public inspection.

(f) Opportunity for review.

1306a. Public access to State disbursement records.

1306b. State data exchanges.

1307. Penalty for fraud.

1308. Additional grants to Puerto Rico, Virgin Islands,

Guam, and American Samoa; limitation on total

payments.

(a) Limitation on total payments to each

territory.

(b) Entitlement to matching grant.

(d) Authority to transfer funds to certain

programs.

(e) Repealed.

(f) Total amount certified under subchapter XIX.

(g) Medicaid payments to territories for fiscal

year 1998 and thereafter.

1309. Amounts disregarded not to be taken into account

in determining eligibility of other individuals.

1310. Cooperative research or demonstration projects.

1311. Public assistance payments to legal

representatives.

1312. Medical care guides and reports for public

assistance and medical assistance.

1313. Assistance for United States citizens returned

from foreign countries.

(a) Authorization; reimbursement; utilization of

facilities of public or private agencies

and organizations.

(b) Plans and arrangements for assistance;

consultations.

(d) Maximum total amount of temporary

assistance.

(e) Authority of Secretary to accept gifts.

1314. Public advisory groups.

(a) Advisory Council on Public Welfare;

appointment and functions of initial

Council.

(b) Membership and representation of interests

on initial Council.

Council; availability of data.

(d) Termination of initial Council's existence

on submission of report.

(e) Succeeding Councils; appointment; functions;

membership; representation of interests;

assistance and data; termination.

(f) Advisory committees; functions; reports by

Secretary.

(g) Compensation and travel expenses.

(h) Exemption from conflict of interest laws of

members of Council or advisory committees;

exceptions.

(i) Nonvoting members and experts.

1314a. Measurement and reporting of welfare receipt.

(a) Congressional policy.

(b) Development of welfare indicators and

predictors.

(d) Annual welfare indicators report.

(e) Short title.

1315. Demonstration projects.

(a) Waiver of State plan requirements; costs

regarded as State plan expenditures;

availability of appropriations.

(b) Child support enforcement programs.

definitions of unemployment.

(e) Extensions of State-wide comprehensive

demonstration projects for which waivers

granted.

(f) Application for extension of waiver project;

submission; approval.

1316. Administrative and judicial review of public

assistance determinations.

(a) Determination of conformity with

requirements for approval; petition for

reconsideration; hearing; time limitations;

review by court of appeals.

(b) Amendment of plans.

determination.

(d) Items covered under other subchapters;

disallowance.

1317. Appointment of Administrator and Chief Actuary of

Health Care Financing Administration.

1318. Alternative Federal payment with respect to public

assistance expenditures.

1319. Federal participation in payments for repairs to

home owned by recipient of aid or assistance.

1320. Approval of certain projects.

1320a. Uniform reporting systems for health services

facilities and organizations.

(a) Establishment; criteria for regulations;

requirements for hospitals.

(b) Monitoring, etc., of systems by Secretary.

agencies and organizations.

1320a-1. Limitation on use of Federal funds for capital

expenditures.

(a) Use of reimbursement for planning activities

for health services and facilities.

(b) Agreement between Secretary and State for

submission of proposed capital expenditures

related to health care facilities and

procedures for appeal from recommendations.

agreement.

(d) Determination of amount of exclusions from

Federal payments.

(e) Treatment of lease or comparable arrangement

of any facility or equipment for a facility

in determining amount of exclusions from

Federal payments.

(f) Reconsideration by Secretary of

determinations.

(g) "Capital expenditure" defined.

(h) Applicability to Christian Science

sanatoriums.

(i) National advisory council; establishment or

designation of existing council; functions;

consultations with other appropriate

national advisory councils; composition;

compensation and travel expenses.

(j) Capital expenditure review exception for

eligible organization health care

facilities.

1320a-1a. Transferred.

1320a-2. Effect of failure to carry out State plan.

1320a-2a. Reviews of child and family services programs, and

of foster care and adoption assistance programs,

for conformity with State plan requirements.

(a) In general.

(b) Elements of review system.

review.

1320a-3. Disclosure of ownership and related information;

procedure; definitions; scope of requirements.

1320a-3a. Disclosure requirements for other providers under

part B of Medicare.

(a) Disclosure required to receive payment.

(b) Updates to information supplied.

(d) Definitions.

1320a-4. Issuance of subpenas by Comptroller General.

(a) Authorization; scope; service and proof of

service.

(b) Contumacy or refusal to obey subpena;

contempt proceedings.

General Accounting Office.

1320a-5. Disclosure by institutions, organizations, and

agencies of owners, officers, etc., convicted of

offenses related to programs; notification

requirements; "managing employee" defined.

1320a-6. Adjustments in SSI benefits on account of

retroactive benefits under subchapter II.

(a) Reduction in benefits.

(b) "Supplemental security income benefits"

defined.

1320a-7. Exclusion of certain individuals and entities from

participation in Medicare and State health care

programs.

(a) Mandatory exclusion.

(b) Permissive exclusion.

exclusion.

(d) Notice to State agencies and exclusion under

State health care programs.

(e) Notice to State licensing agencies.

(f) Notice, hearing, and judicial review.

(g) Application for termination of exclusion.

(h) "State health care program" defined.

(i) "Convicted" defined.

(j) Definition of immediate family member and

member of household.

1320a-7a. Civil monetary penalties.

(a) Improperly filed claims.

(b) Payments to induce reduction or limitation

of services.

Attorney General, notice, etc., estoppel,

failure to comply with order or procedure.

(d) Amount or scope of penalty, assessment, or

exclusion.

(e) Review by courts of appeals.

(f) Compromise of penalties and assessments;

recovery; use of funds recovered.

(g) Finality of determination respecting

penalty, assessment or exclusion.

(h) Notification of appropriate entities of

finality of determination.

(i) Definitions.

(j) Subpoenas.

(k) Injunctions.

(l) Liability of principal for acts of agent.

(m) Claims within jurisdiction of other

departments or agencies.

(n) Safe harbor for payment of medigap premiums.

1320a-7b. Criminal penalties for acts involving Federal

health care programs.

(a) Making or causing to be made false

statements or representations.

(b) Illegal remunerations.

respect to condition or operation of

institutions.

(d) Illegal patient admittance and retention

practices.

(e) Violation of assignment terms.

(f) "Federal health care program" defined.

1320a-7c. Fraud and abuse control program.

(a) Establishment of program.

(b) Additional use of funds by Inspector

General.

1320a-7d. Guidance regarding application of health care

fraud and abuse sanctions.

(a) Solicitation and publication of

modifications to existing safe harbors and

new safe harbors.

(b) Advisory opinions.

1320a-7e. Health care fraud and abuse data collection

program.

(a) General purpose.

(b) Reporting of information.

(d) Access to reported information.

(e) Protection from liability for reporting.

(f) Coordination with National Practitioner Data

Bank.

(g) Definitions and special rules.

1320a-7f. Coordination of medicare and medicaid surety bond

provisions.

1320a-8. Civil monetary penalties and assessments for

subchapters II, VIII and XVI.

(a) False statements or representations of

material fact; proceedings to exclude.

(b) Initiation of proceedings; hearing;

sanctions.

or exclusions.

(d) Judicial review.

(e) Compromise of money penalties and

assessments; recovery; use of funds

recovered.

(f) Finality of determination respecting

penalty, assessment, or exclusion.

(g) Notification of appropriate entities of

finality of determination.

(h) Injunction.

(i) Delegation of authority.

(j) "State agency" defined.

(k) Liability of principal for acts of agents.

(l) Protection of ongoing criminal

investigations.

1320a-8a. Administrative procedure for imposing penalties

for false or misleading statements.

(a) In general.

(b) Penalty.

(d) Effect on other assistance.

(e) Definition.

(f) Consultations.

1320a-9. Demonstration projects.

(a) Authority to approve demonstration projects.

(b) Waiver authority.

(d) Duration of demonstration.

(e) Application.

(f) Evaluations; report.

(g) Cost neutrality.

1320a-10. Effect of failure to carry out State plan.

1320b. Repealed.

1320b-1. Notification of Social Security claimant with

respect to deferred vested benefits.

1320b-2. Period within which certain claims must be filed.

(a) Claims.

(b) Waiver.

1320b-3. Applicants or recipients under public assistance

programs not to be required to make election

respecting certain veterans' benefits.

(a) Supplemental Security Income program.

(b) Period of effectiveness.

1320b-4. Nonprofit hospital or critical access hospital

philanthropy.

1320b-5. Authority to waive requirements during national

emergencies.

(a) Purpose.

(b) Secretarial authority.

(d) Certification to Congress.

(e) Duration of waiver.

(f) Report to Congress.

(g) Definitions.

1320b-6. Exclusion of representatives and health care

providers convicted of violations from

participation in social security programs.

(a) In general.

(b) Notice, effective date, and period of

exclusion.

(d) Notice to State licensing agencies.

(e) Notice, hearing, and judicial review.

(f) Application for termination of exclusion.

(g) Availability of records of excluded

representatives and health care providers.

(h) Reporting requirement.

(i) Delegation of authority.

(j) Definitions.

1320b-7. Income and eligibility verification system.

(a) Requirements of State eligibility systems.

(b) Applicable programs.

of information.

(d) Citizenship or immigration status

requirements; documentation; verification

by Immigration and Naturalization Service;

denial of benefits; hearing.

(e) Erroneous State citizenship or immigration

status determinations; penalties not

required.

(f) Medical assistance to aliens for treatment

of emergency conditions.

1320b-8. Hospital protocols for organ procurement and

standards for organ procurement agencies.

1320b-9. National Commission on Children.

(a) Establishment.

(b) Membership.

hearings in different geographical areas;

broad spectrum of witnesses and testimony.

(d) Interim and final report to President and

Congress; recommendations.

(e) Time of appointment of members; vacancies;

election of Chairman; quorum; calling of

meetings; number of meetings; voting;

compensation and expenses.

(f) Executive Director and additional personnel;

appointment and compensation; consultants.

(g) Time and place of hearings and nature of

testimony authorized.

(h) Data and information from other agencies and

departments.

(i) Support services by General Services

Administration.

(j) Authorization of appropriations.

(k) Donations accepted and deposited in Treasury

in separate fund; expenditures; gift or

bequest to or for use of United States.

(l) Public surveys.

1320b-10. Prohibition of misuse of symbols, emblems, or

names in reference to Social Security or

Medicare.

(a) Prohibited acts.

(b) Civil penalties.

recovery, and deposit into Treasury of

civil money penalties.

(d) Enforcement.

1320b-11. Blood Donor Locator Service.

(a) In general.

(b) Provision of address information.

(d) Procedures and safeguards.

(e) Arrangements with State agencies and

authorized persons.

(f) Procedures for administrative review.

(g) Unauthorized disclosure of information.

(h) Definitions.

1320b-12. Research on outcomes of health care services and

procedures.

(a) Establishment of program.

(b) Priorities.

(d) Standards for data bases.

(e) Dissemination of research findings and

guidelines.

(f) Evaluations.

(g) Research with respect to dissemination.

(h) Omitted.

(i) Authorization of appropriations.

1320b-13. Social security account statements.

(a) Provision upon request.

(b) Notice to eligible individuals.

1320b-14. Outreach efforts to increase awareness of the

availability of medicare cost-sharing.

(a) Outreach.

(b) Coordination with States.

1320b-15. Protection of social security and medicare trust

funds.

(a) In general.

(b) "Public debt obligation" defined.

1320b-16. Public disclosure of certain information on

hospital financial interest and referral

patterns.

1320b-17. Recovery of SSI overpayments from other benefits.

(a) In general.

(b) No effect on SSI eligibility or benefit

amount.

1320b-18. Recovery of social security benefit overpayments

from subchapter VIII benefits.

1320b-19. The Ticket to Work and Self-Sufficiency Program.

(a) In general.

(b) Ticket system.

(d) Responsibilities of the Commissioner.

(e) Program managers.

(f) Employment networks.

(g) Individual work plans.

(h) Employment network payment systems.

(i) Suspension of disability reviews.

(j) Authorizations.

(k) Definitions.

(l) Regulations.

1320b-20. Work incentives outreach program.

(a) Establishment.

(b) Conditions.

(d) Authorization of appropriations.

1320b-21. State grants for work incentives assistance to

disabled beneficiaries.

(a) In general.

(b) Services provided.

(d) Amount of payments.

(e) Annual report.

(f) Funding.

(g) Definitions.

(h) Authorization of appropriations.

1320b-22. Grants to develop and establish State

infrastructures to support working individuals

with disabilities.

(a) Establishment.

(b) Grants for infrastructure and outreach.

(d) Annual report.

(e) Appropriation.

(f) Recommendation.

1320b-23. Repealed.

PART B - PEER REVIEW OF UTILIZATION AND QUALITY OF HEALTH CARE

SERVICES

1320c. Purpose.

1320c-1. "Utilization and quality control peer review

organization" defined.

1320c-2. Contracts with utilization and quality control

peer review organizations.

(a) Establishment and consolidation of

geographic areas.

(b) Organizations entitled to contract with

Secretary.

(d) Review prior to termination of contract;

modification and termination; reviewing

panel.

(e) Authority of Secretary.

(f) Termination not subject to judicial review.

(g) Timely provision of hospital data to peer

review organizations.

(h) Publication of new policy or procedure and

general criteria and standards for

evaluation; performance comparison report.

(i) Preference in contracting with in-State

organizations.

1320c-3. Functions of peer review organizations.

(a) Review of professional activities;

determination of payment; determination of

review authority; consultation with

professional health care practitioners;

standards of health care; other duties.

(b) Review by physicians; physician's family

defined.

make final determinations of denial

decisions with respect to professional

conduct of other physicians.

(d) Review of ambulatory surgical procedures.

(e) Review of hospital denial notices.

(f) Identification of methods for identifying

cases of substandard care.

1320c-4. Right to hearing and judicial review.

1320c-5. Obligations of health care practitioners and

providers of health care services; sanctions and

penalties; hearings and review.

(a) Assurances regarding services and items

ordered or provided by practitioner or

provider.

(b) Sanctions and penalties; hearings and

review.

to assure practitioner's or provider's

compliance with obligations.

1320c-6. Limitation on liability.

(a) Providers of information to organizations

having a contract with Secretary.

(b) Employees and fiduciaries of organizations

having contracts with Secretary.

(d) Reimbursement by Secretary for expenses

incurred in defense of legal proceedings.

1320c-7. Application of this part to certain State programs

receiving Federal financial assistance.

(a) State plan provision that functions of peer

review organizations may be performed by

contract with such organization.

(b) Federal share of expenditures.

1320c-8. Authorization for use of certain funds to

administer provisions of this part.

1320c-9. Prohibition against disclosure of information.

(a) Freedom of Information Act inapplicable;

exceptions to nondisclosure.

(b) Disclosure of information permitted.

(d) Subpoena and discovery proceedings regarding

patient records.

(e) Organizations with contracts.

1320c-10. Annual reports.

1320c-11. Exemptions for religious nonmedical health care

institutions.

1320c-12. Medical officers in American Samoa, Northern

Mariana Islands, and Trust Territory of Pacific

Islands to be included in utilization and quality

control peer review program.

1320c-13. Repealed.

PART C - ADMINISTRATIVE SIMPLIFICATION

1320d. Definitions.

1320d-1. General requirements for adoption of standards.

(a) Applicability.

(b) Reduction of costs.

(d) Implementation specifications.

(e) Protection of trade secrets.

(f) Assistance to Secretary.

(g) Application to modifications of standards.

1320d-2. Standards for information transactions and data

elements.

(a) Standards to enable electronic exchange.

(b) Unique health identifiers.

(d) Security standards for health information.

(e) Electronic signature.

(f) Transfer of information among health plans.

1320d-3. Timetables for adoption of standards.

(a) Initial standards.

(b) Additions and modifications to standards.

1320d-4. Requirements.

(a) Conduct of transactions by plans.

(b) Compliance with standards.

1320d-5. General penalty for failure to comply with

requirements and standards.

(a) General penalty.

(b) Limitations.

1320d-6. Wrongful disclosure of individually identifiable

health information.

(a) Offense.

(b) Penalties.

1320d-7. Effect on State law.

(a) General effect.

(b) Public health.

1320d-8. Processing payment transactions by financial

institutions.

SUBCHAPTER XII - ADVANCES TO STATE UNEMPLOYMENT FUNDS

1321. Eligibility requirements for transfer of funds;

reimbursement by State; application;

certification; limitation.

1322. Repayment by State; certification; transfer;

interest on loan; credit of interest on loan.

(a) Repayment by State; certification; transfer.

(b) Interest on loan.

1323. Repayable advances to Federal Unemployment

Account.

1324. "Governor" defined.

SUBCHAPTER XIII - RECONVERSION UNEMPLOYMENT BENEFITS FOR SEAMEN

1331 to

1336. Repealed.

SUBCHAPTER XIV - GRANTS TO STATES FOR AID TO PERMANENTLY AND

TOTALLY DISABLED

1351. Authorization of appropriations.

1352. State plans for aid to permanently and totally

disabled.

1353. Payments to States.

1354. Operation of State plans.

1355. Definitions.

SUBCHAPTER XV - UNEMPLOYMENT COMPENSATION FOR FEDERAL EMPLOYEES

1361 to

1371. Repealed.

SUBCHAPTER XVI - SUPPLEMENTAL SECURITY INCOME FOR AGED, BLIND, AND

DISABLED

1381. Statement of purpose; authorization of

appropriations.

1381a. Basic entitlement to benefits.

PART A - DETERMINATION OF BENEFITS

1382. Eligibility for benefits.

(a) "Eligible individual" defined.

(b) Amount of benefits.

(d) Limitation on amount of gross income earned;

"gross income" defined.

(e) Limitation on eligibility of certain

individuals.

(f) Individuals outside United States;

determination of status.

(g) Individuals deemed to meet resources test.

(h) Individuals deemed to meet income test.

(i) Application and review requirements for

certain individuals.

1382a. Income; earned and unearned income defined;

exclusions from income.

1382b. Resources.

(a) Exclusions from resources.

(b) Disposition of resources; grounds for

exemption from disposition requirements.

market value.

(d) Funds set aside for burial expenses.

(e) Trusts.

1382c. Definitions.

1382d. Rehabilitation services for blind and disabled

individuals.

(a) Referral by Commissioner of eligible

individuals to appropriate State agency.

(b),

(d) Reimbursement by Commissioner to State

agency of costs of providing services to

referred individuals.

(e) Reimbursement for vocational rehabilitation

services furnished during certain months of

nonpayment of insurance benefits.

1382e. Supplementary assistance by State or subdivision

to needy individuals.

(a) Exclusion of cash payments in determination

of income of individuals for purposes of

eligibility for benefits; agreement by

Commissioner and State for Commissioner to

make supplementary payments on behalf of

State or subdivision.

(b) Agreement between Commissioner and State;

contents.

subdivision for supplementary payments;

disregarding amounts of certain income by

State or subdivision in determining

eligibility for supplementary payments.

(d) Payment to Commissioner by State of amount

equal to expenditures by Commissioner as

supplementary payments; time and manner of

payment by State; fees for Federal

administration of State supplementary

payments.

(e) State standards; establishment; annual

public review; annual certification;

payments to individuals.

1382f. Cost-of-living adjustments in benefits.

(a) Increase of dollar amounts.

(b) Publication in Federal Register of new

dollar amounts.

1382g. Payments to State for operation of supplementation

program.

(a) Eligibility; agreement with Commissioner.

(b) Levels of supplementary payments.

(d) Determinations respecting any portion of

period July 1, 1980, through June 30, 1981.

(e) Meeting subsection (a)(4) requirements for

any month after March 1983.

(f) Passthrough relating to optional State

supplementation.

(g) Mandatory pass-through of increased personal

needs allowance.

1382h. Benefits for individuals who perform substantial

gainful activity despite severe medical

impairment.

(a) Eligible individuals.

(b) Blind or disabled individuals receiving

supplemental security income benefits.

limitation.

(d) Information and training programs.

1382i. Medical and social services for certain

handicapped persons.

(a) Authorization of appropriations for pilot

program.

(b) State allotments.

(d) Payments to States; computation of payments.

(e) Rules and regulations.

(f) Reports.

1382j. Attribution of sponsor's income and resources to

aliens.

(a) Attribution as unearned income.

(b) Determination of amount and resources.

(d) Information and documentation; agreements

with Secretary of State and Attorney

General.

(e) Joint and several liability of alien and

sponsor for overpayments.

(f) Exemptions.

1382k. Repealed.

PART B - PROCEDURAL AND GENERAL PROVISIONS

1383. Procedure for payment of benefits.

(a) Time, manner, form, and duration of

payments; representative payees;

promulgation of regulations.

(b) Overpayments and underpayments; adjustment,

recovery, or payment of amounts by

Commissioner.

of benefits; subsequent application; time

within which to request hearing; time for

determinations of Commissioner pursuant to

hearing; judicial review.

(d) Procedures applicable; prohibition on

assignment of payments; representation of

claimants; maximum fees; penalties for

violations.

(e) Administrative requirements prescribed by

Commissioner; criteria; reduction of

benefits to individual for noncompliance

with requirements; payment to homeless.

(f) Furnishing of information by Federal

agencies.

(g) Reimbursement to States for interim

assistance payments.

(h) Payment of certain travel expenses.

(i) Unnegotiated checks; notice to Commissioner;

payment to States; notice to States;

investigation of payees.

(j) Application and review requirements for

certain individuals.

(k) Notifications to applicants and recipients.

(l) Special notice to blind individuals with

respect to hearings and other official

actions.

(m) Pre-release procedures for institutionalized

persons.

(n) Concurrent SSI and food stamp applications

by institutionalized individuals.

(o) Notice requirements.

(p) Reinstatement of eligibility on the basis of

blindness or disability.

1383a. Fraudulent acts; penalties; restitution.

1383b. Administration.

(a) Authority of Commissioner.

(b) Examination to determine blindness.

(d) Regulations regarding completion of plans

for achieving self-support.

1383c. Eligibility for medical assistance of aged, blind,

or disabled individuals under State's medical

assistance plan.

(a) Determination by Commissioner pursuant to

agreement between Commissioner and State;

costs.

(b) Preservation of benefit status for certain

disabled widows and widowers.

insurance benefits based on disability.

(d) Retention of medicaid when SSI benefits are

lost upon entitlement to early widow's or

widower's insurance benefits.

1383d. Outreach program for children.

(a) Establishment.

(b) Requirements.

1383e. Treatment referrals for individuals with

alcoholism or drug addiction condition.

1383f. Annual report on program.

(a) In general.

(b) Views of individual members of Social

Security Advisory Board.

1384, 1385. Omitted.

SUBCHAPTER XVII - GRANTS FOR PLANNING COMPREHENSIVE ACTION TO

COMBAT MENTAL RETARDATION

1391. Authorization of appropriations.

1392. Availability of funds during certain fiscal years;

limitation on amount; utilization of grant.

1393. Applications; single State agency designation;

essential planning services; plans for

expenditure; final activities report and other

necessary reports; records; accounting.

1394. Payments to States; adjustments; advances or

reimbursement; installments; conditions.

SUBCHAPTER XVIII - HEALTH INSURANCE FOR AGED AND DISABLED

1395. Prohibition against any Federal interference.

1395a. Free choice by patient guaranteed.

(a) Basic freedom of choice.

(b) Use of private contracts by medicare

beneficiaries.

1395b. Option to individuals to obtain other health

insurance protection.

1395b-1. Incentives for economy while maintaining or

improving quality in provision of health

services.

(a) Grants and contracts to develop and engage

in experiments and demonstration projects.

(b) Waiver of certain payment or reimbursement

requirements; advice and recommendations of

specialists preceding experiments and

demonstration projects.

1395b-2. Notice of medicare benefits; medicare and medigap

information.

(a) Notice of medicare benefits.

(b) Medicare and medigap information.

1395b-3. Health insurance advisory service for medicare

beneficiaries.

(a) In general.

(b) Outreach elements.

(d) Educational material.

(e) Notice to beneficiaries.

(f) Report.

1395b-4. Health insurance information, counseling, and

assistance grants.

(a) Grants.

(b) Grant applications.

(d) Criteria for issuing grants.

(e) Annual State report.

(f) Report to Congress.

(g) Authorization of appropriations for grants.

1395b-5. Beneficiary incentive programs.

(a) Repealed.

(b) Program to collect information on fraud and

abuse.

efficiency.

1395b-6. Medicare Payment Advisory Commission.

(a) Establishment.

(b) Duties.

(d) Director and staff; experts and consultants.

(e) Powers.

(f) Authorization of appropriations.

1395b-7. Explanation of medicare benefits.

(a) In general.

(b) Request for itemized statement for medicare

items and services.

PART A - HOSPITAL INSURANCE BENEFITS FOR AGED AND DISABLED

1395c. Description of program.

1395d. Scope of benefits.

(a) Entitlement to payment for inpatient

hospital services, post-hospital extended

care services, home health services, and

hospice care.

(b) Services not covered.

(d) Hospice care; election; waiver of rights;

revocation; change of election.

(e) Services taken into account.

(f) Coverage of extended care services without

regard to three-day prior hospitalization

requirement.

(g) "Spell of illness" defined.

1395e. Deductibles and coinsurance.

(a) Inpatient hospital services; outpatient

hospital diagnostic services; blood;

post-hospital extended care services.

(b) Inpatient hospital deductible; application.

1395f. Conditions of and limitations on payment for

services.

(a) Requirement of requests and certifications.

(b) Amount paid to provider of services.

services.

(d) Payments for emergency hospital services.

(e) Payment for inpatient hospital services

prior to notification of noneligibility.

(f) Payment for certain inpatient hospital

services furnished outside United States.

(g) Payments to physicians for services rendered

in teaching hospitals.

(h) Payment for specified hospital services

provided in Department of Veterans Affairs

hospitals; amount of payment.

(i) Payment for hospice care.

(j) Elimination of lesser-of-cost-or-charges

provision.

(k) Payments to home health agencies for durable

medical equipment.

(l) Payment for inpatient critical access

hospital services.

1395g. Payments to providers of services.

(a) Determination of amount.

(b) Conditions.

attorney.

(d) Accrual of interest on balance of excess or

deficit not paid.

(e) Periodic interim payments.

1395h. Use of public or private agencies or organizations

to facilitate payment to providers of services.

(a) Authorization for agreement by Secretary for

implementation; scope of agreement.

(b) Prerequisites for agreement or renewal of

agreement by Secretary.

payment of claims.

(d) Nomination of agency or organization;

withdrawal.

(e) Assignment or reassignment of provider of

services; designation of agency or

organization to perform provider services

and home health agency functions.

(f) Development of standards, criteria, and

procedures by Secretary for evaluation of

agency or organization performance.

(g) Termination of agreement; procedures

applicable.

(h) Bonding requirement under agreement for

officers and employees of agency or

organization.

(i) Liability of certifying and disbursing

officers designated under agreement for

negligent, etc., payments.

(j) Denial of claim; notification and

reconsideration.

(k) Annual reporting requirement on erroneous

payment recovery.

(l) No authority for activities carried out

under Medicare Integrity Program.

1395i. Federal Hospital Insurance Trust Fund.

(a) Creation; deposits; transfers from Treasury.

(b) Board of Trustees; composition; meetings;

duties.

Trustee.

(d) Authority of Managing Trustee to sell

obligations.

(e) Interest on and proceeds from sale or

redemption of obligations.

(f) Payment of estimated taxes.

(g) Transfers from other Funds.

(h) Payments from Trust Fund amounts certified

by Secretary.

(i) Payment of travel expenses for travel within

United States; reconsideration interviews

and proceedings before administrative law

judges.

(j) Loans from other Funds; interest; repayment;

report to Congress.

(k) Health Care Fraud and Abuse Control Account.

1395i-1. Authorization of appropriations.

1395i-1a. Repealed.

1395i-2. Hospital insurance benefits for uninsured elderly

individuals not otherwise eligible.

(a) Individuals eligible to enroll.

(b) Time, manner, and form of enrollment.

(d) Monthly premiums.

(e) Contract or other arrangement for payment of

monthly premiums.

(f) Deposit of amounts into Treasury.

(g) Buy-in under this part for qualified

medicare beneficiaries.

1395i-2a. Hospital insurance benefits for disabled

individuals who have exhausted other entitlement.

(a) Eligibility.

(b) Enrollment.

(d) Payment of premiums.

1395i-3. Requirements for, and assuring quality of care in,

skilled nursing facilities.

(a) "Skilled nursing facility" defined.

(b) Requirements relating to provision of

services.

(d) Requirements relating to administration and

other matters.

(e) State requirements relating to skilled

nursing facility requirements.

(f) Responsibilities of Secretary relating to

skilled nursing facility requirements.

(g) Survey and certification process.

(h) Enforcement process.

(i) Construction.

1395i-4. Medicare rural hospital flexibility program.

(a) Establishment.

(b) Application.

described.

(d) "Rural health network" defined.

(e) Certification by Secretary.

(f) Permitting maintenance of swing beds.

(g) Grants.

(h) Grandfathering of certain facilities.

(i) Waiver of conflicting part A provisions.

(j) Authorization of appropriations.

1395i-5. Conditions for coverage of religious nonmedical

health care institutional services.

(a) In general.

(b) Election.

expenditures.

(d) Sunset.

(e) Annual report.

PART B - SUPPLEMENTARY MEDICAL INSURANCE BENEFITS FOR AGED AND

DISABLED

1395j. Establishment of supplementary medical insurance

program for aged and disabled.

1395k. Scope of benefits; definitions.

(a) Scope of benefits.

(b) Definitions.

1395l. Payment of benefits.

(a) Amounts.

(b) Deductible provision.

(d) Nonduplication of payments.

(e) Information for determination of amounts

due.

(f) Maximum rate of payment per visit for

independent rural health clinics.

(g) Physical therapy services.

(h) Fee schedules for clinical diagnostic

laboratory tests; percentage of prevailing

charge level; nominal fee for samples;

adjustments; recipients of payments;

negotiated payment rate.

(i) Outpatient surgery.

(j) Accrual of interest on balance of excess or

deficit not paid.

(k) Hepatitis B vaccine.

(l) Fee schedule for services of certified

registered nurse anesthetists.

(m) Incentive payments for physicians' services

furnished in underserved areas.

(n) Payments to hospital outpatient departments

for radiology; amount; definitions.

(o) Limitation on benefit for payment for

therapeutic shoes for individuals with

severe diabetic foot disease.

(p) Repealed.

(q) Requests for payment to include information

on referring physician.

(r) Cap on prevailing charge; billing on

assignment-related basis.

(s) Other prepaid organizations.

(t) Prospective payment system for hospital

outpatient department services.

1395m. Special payment rules for particular items and

services.

(a) Payment for durable medical equipment.

(b) Fee schedules for radiologist services.

mammography.

(d) Frequency limits and payment for colorectal

cancer screening tests.

(e) Repealed.

(f) Reduction in payments for physician

pathology services during 1991.

(g) Payment for outpatient critical access

hospital services.

(h) Payment for prosthetic devices and orthotics

and prosthetics.

(i) Payment for surgical dressings.

(j) Requirements for suppliers of medical

equipment and supplies.

(k) Payment for outpatient therapy services and

comprehensive outpatient rehabilitation

services.

(l) Establishment of fee schedule for ambulance

services.

(m) Payment for telehealth services.

1395n. Procedure for payment of claims of providers of

services.

(a) Conditions for payment for services

described in section 1395k(a)(2) of this

title.

(b) Conditions for payment for services

described in section 1395x(s) of this

title.

services specified in section 1395x(s) of

this title.

(d) Payment to Federal provider of services or

other Federal agencies prohibited.

(e) Payment to fund designated by medical staff

or faculty of medical school.

1395o. Eligible individuals.

1395p. Enrollment periods.

(a) Generally; regulations.

(b) Repealed.

individuals before March 1, 1966.

(d) Eligible individuals on or after March 1,

1966.

(e) General enrollment period.

(f) Individuals deemed enrolled in medical

insurance program.

(g) Commencement of enrollment period.

(h) Waiver of enrollment period requirements

where individual's rights were prejudiced

by administrative error or inaction.

(i) Special enrollment periods.

(j) Special rules for individuals with ALS.

1395q. Coverage period.

(a) Commencement.

(b) Continuation.

(d) Payment of expenses incurred during coverage

period.

(e) Commencement of coverage for special

enrollment periods.

1395r. Amount of premiums for individuals enrolled under

this part.

(a) Determination of monthly actuarial rates and

premiums.

(b) Increase in monthly premium.

cents.

(d) "Continuous period of eligibility" defined.

(e) State payment of part B late enrollment

premium increases.

(f) Limitation on increase in monthly premium.

(g) Exclusions from estimate of benefits and

administrative costs.

1395s. Payment of premiums.

(a) Deductions from section 402 or 423 monthly

benefits.

(b) Deductions from railroad retirement

annuities or pensions.

deducted amount.

(d) Deductions from civil service retirement

annuities.

(e) Manner and time of payment prescribed by

Secretary.

(f) Deposit of amounts in Treasury.

(g) Premium payability period.

(h) Exempted monthly benefits.

(i) Adjustments for individuals enrolled in

Medicare+Choice plans.

1395t. Federal Supplementary Medical Insurance Trust

Fund.

(a) Creation; deposits; fund transfers.

(b) Board of Trustees; composition; meetings;

duties.

Trustee.

(d) Authority of Managing Trustee to sell

obligations.

(e) Interest on or proceeds from sale or

redemption of obligations.

(f) Transfers to other Funds.

(g) Payments from Trust Fund of amounts provided

for by this part or with respect to

administrative expenses.

(h) Payments from Trust Fund of costs incurred

by Director of Office of Personnel

Management.

(i) Payments from Trust Fund of costs incurred

by Railroad Retirement Board.

1395t-1, 1395t-2. Repealed.

1395u. Use of carriers for administration of benefits.

(a) Authority of Secretary to enter into

contracts with carriers.

(b) Applicability of competitive bidding

provisions; findings as to financial

responsibility, etc., of carrier;

contractual duties imposed by contract.

of claims.

(d) Surety bonds.

(e) Liability of certifying or disbursing

officers or carriers.

(f) "Carrier" defined.

(g) Authority of Railroad Retirement Board to

enter into contracts with carriers.

(h) Participating physician or supplier;

agreement with Secretary; publication of

directories; availability; inclusion of

program in explanation of benefits; payment

of claims on assignment-related basis.

(i) Definitions.

(j) Monitoring of charges of nonparticipating

physicians; sanctions; restitution.

(k) Sanctions for billing for services of

assistant at cataract operations.

(l) Prohibition of unassigned billing of

services determined to be medically

unnecessary by carrier.

(m) Disclosure of information of unassigned

claims for certain physicians' services.

(n) Elimination of markup for certain purchased

services.

(o) Reimbursement for drugs and biologicals.

(p) Requiring submission of diagnostic

information.

(q) Anesthesia services; counting actual time

units.

(r) Establishment of physician identification

system.

(s) Application of fee schedule.

(t) Facility provider number required on claims.

1395v. Agreements with States.

(a) Duty of Secretary; enrollment of eligible

individuals.

(b) Coverage of groups to which applicable.

(d) Monthly premiums; coverage periods.

(e) Subsection (d)(3) terminations deemed

resulting in section 1395p enrollment.

(f) "Carrier" as including State agency;

provisions facilitating deductions,

coinsurance, etc., and leading to economy

and efficiency of operation.

(g) Subsection (b) exclusions from coverage

groups.

(h) Modifications respecting subsection (b)

coverage groups.

(i) Enrollment of qualified medicare

beneficiaries.

1395w. Appropriations to cover Government contributions

and contingency reserve.

(a) In general.

(b) Contingency reserve.

1395w-1. Repealed.

1395w-2. Intermediate sanctions for providers or suppliers

of clinical diagnostic laboratory tests.

1395w-3. Demonstration projects for competitive acquisition

of items and services.

(a) Establishment of demonstration project

bidding areas.

(b) Awarding of contracts in areas.

(d) Services described.

(e) Termination.

1395w-4. Payment for physicians' services.

(a) Payment based on fee schedule.

(b) Establishment of fee schedules.

physicians' services.

(d) Conversion factors.

(e) Geographic adjustment factors.

(f) Sustainable growth rate.

(g) Limitation on beneficiary liability.

(h) Sending information to physicians.

(i) Miscellaneous provisions.

(j) Definitions.

PART C - MEDICARE+CHOICE PROGRAM

1395w-21. Eligibility, election, and enrollment.

(a) Choice of medicare benefits through

Medicare+Choice plans.

(b) Special rules.

(d) Providing information to promote informed

choice.

(e) Coverage election periods.

(f) Effectiveness of elections and changes of

elections.

(g) Guaranteed issue and renewal.

(h) Approval of marketing material and

application forms.

(i) Effect of election of Medicare+ÐChoice plan

option.

1395w-22. Benefits and beneficiary protections.

(a) Basic benefits.

(b) Antidiscrimination.

(d) Access to services.

(e) Quality assurance program.

(f) Grievance mechanism.

(g) Coverage determinations, reconsiderations,

and appeals.

(h) Confidentiality and accuracy of enrollee

records.

(i) Information on advance directives.

(j) Rules regarding provider participation.

(k) Treatment of services furnished by certain

providers.

(l) Return to home skilled nursing facilities

for covered post-hospital extended care

services.

1395w-23. Payments to Medicare+Choice organizations.

(a) Payments to organizations.

(b) Annual announcement of payment rates.

capitation rates.

(d) "Medicare+Choice payment area" defined.

(e) Special rules for individuals electing MSA

plans.

(f) Payments from Trust Fund.

(g) Special rule for certain inpatient hospital

stays.

(h) Special rule for hospice care.

(i) New entry bonus.

1395w-24. Premiums.

(a) Submission of proposed premiums and related

information.

(b) Monthly premium charged.

(d) Terms and conditions of imposing premiums.

(e) Limitation on enrollee liability.

(f) Requirement for additional benefits.

(g) Prohibition of State imposition of premium

taxes.

(h) Permitting use of segments of service areas.

1395w-25. Organizational and financial requirements for

Medicare+Choice organizations; provider-sponsored

organizations.

(a) Organized and licensed under State law.

(b) Assumption of full financial risk.

insolvency for unlicensed PSOs.

(d) "Provider-sponsored organization" defined.

1395w-26. Establishment of standards.

(a) Establishment of solvency standards for

provider-sponsored organizations.

(b) Establishment of other standards.

1395w-27. Contracts with Medicare+Choice organizations.

(a) In general.

(b) Minimum enrollment requirements.

(d) Protections against fraud and beneficiary

protections.

(e) Additional contract terms.

(f) Prompt payment by Medicare+ÐChoice

organization.

(g) Intermediate sanctions.

(h) Procedures for termination.

(i) Medicare+Choice program compatibility with

employer or union group health plans.

1395w-28. Definitions; miscellaneous provisions.

(a) Definitions relating to Medicare+Choice

organizations.

(b) Definitions relating to Medicare+Choice

plans.

(d) Coordinated acute and long-term care

benefits under Medicare+Choice plan.

(e) Restriction on enrollment for certain

Medicare+Choice plans.

PART D - MISCELLANEOUS PROVISIONS

1395x. Definitions.

(a) Spell of illness.

(b) Inpatient hospital services.

(d) Repealed.

(e) Hospital.

(f) Psychiatric hospital.

(g) Outpatient occupational therapy services.

(h) Extended care services.

(i) Post-hospital extended care services.

(j) Skilled nursing facility.

(k) Utilization review.

(l) Agreements for transfer between skilled

nursing facilities and hospitals.

(m) Home health services.

(n) Durable medical equipment.

(o) Home health agency.

(p) Outpatient physical therapy services.

(q) Physicians' services.

(r) Physician.

(s) Medical and other health services.

(t) Drugs and biologicals.

(u) Provider of services.

(v) Reasonable costs.

(w) Arrangements for certain services; payments

pursuant to arrangements for utilization

review activities.

(x) State and United States.

(y) Extended care in religious nonmedical health

care institutions.

(z) Institutional planning.

(aa) Rural health clinic services and Federally

qualified health center services.

(bb) Services of a certified registered nurse

anesthetist.

(cc) Comprehensive outpatient rehabilitation

facility services.

(dd) Hospice care; hospice program; definitions;

certification; waiver by Secretary.

(ee) Discharge planning process.

(ff) Partial hospitalization services.

(gg) Certified nurse-midwife services.

(hh) Clinical social worker; clinical social

worker services.

(ii) Qualified psychologist services.

(jj) Screening mammography.

(kk) Covered osteoporosis drug.

(ll) Speech-language pathology services;

audiology services.

(mm) Critical access hospital; critical access

hospital services.

(nn) Screening pap smear; screening pelvic exam.

(oo) Prostate cancer screening tests.

(pp) Colorectal cancer screening tests.

(qq) Diabetes outpatient self-management training

services.

(rr) Bone mass measurement.

(ss) Religious nonmedical health care

institution.

(tt) Post-institutional home health services;

home health spell of illness.

(uu) Screening for glaucoma.

(vv) Medical nutrition therapy services;

registered dietitian or nutrition

professional.

1395y. Exclusions from coverage and medicare as secondary

payer.

(a) Items or services specifically excluded.

(b) Medicare as secondary payer.

(d) Repealed.

(e) Item or service by excluded individual or

entity or at direction of excluded

physician; limitation of liability of

beneficiaries with respect to services

furnished by excluded individuals and

entities.

(f) Utilization guidelines for provision of home

health services.

(g) Contracts with utilization and quality

control peer review organizations.

(h) Waiver of electronic form requirement.

(i) Awards and contracts for original research

and experimentation of new and existing

medical procedures; conditions.

1395z. Consultation with State agencies and other

organizations to develop conditions of

participation for providers of services.

1395aa. Agreements with States.

(a) Use of State agencies to determine

compliance by providers of services with

conditions of participation.

(b) Payment in advance or by way of

reimbursement to State for performance of

functions of subsection (a).

hospitals.

(d) Fulfillment of requirements by States.

(e) Prohibition of user fees for survey and

certification.

1395bb. Effect of accreditation.

(a) In general.

(b) Accreditation by American Osteopathic

Association or other national accreditation

body.

(d) Deficiencies.

(e) State or local accreditation.

1395cc. Agreements with providers of services.

(a) Filing of agreements; eligibility for

payment; charges with respect to items and

services.

(b) Termination or nonrenewal of agreements.

agreements with skilled nursing facilities.

(d) Decision to withhold payment for failure to

review long-stay cases.

(e) "Provider of services" defined.

(f) Maintenance of written policies and

procedures.

(g) Penalties for improper billing.

(h) Dissatisfaction with determination of

Secretary; appeal by institutions or

agencies; single notice and hearing.

(i) Intermediate sanctions for psychiatric

hospitals.

1395cc-1. Demonstration of application of physician volume

increases to group practices.

(a) Demonstration program authorized.

(b) Eligibility criteria.

(d) Incentives.

1395cc-2. Provisions for administration of demonstration

program.

(a) General administrative authority.

(b) Contracts for program administration.

and program administration contracts.

(d) Limitations on judicial review.

(e) Application limited to parts A and B.

(f) Reports to Congress.

1395dd. Examination and treatment for emergency medical

conditions and women in labor.

(a) Medical screening requirement.

(b) Necessary stabilizing treatment for

emergency medical conditions and labor.

stabilized.

(d) Enforcement.

(e) Definitions.

(f) Preemption.

(g) Nondiscrimination.

(h) No delay in examination or treatment.

(i) Whistleblower protections.

1395ee. Practicing Physicians Advisory Council.

(a) Appointment.

(b) Meetings.

1395ff. Determinations; appeals.

(a) Initial determinations.

(b) Appeal rights.

contractors.

(d) Deadlines for hearings by the Secretary.

(e) Administrative provisions.

(f) Review of coverage determinations.

1395gg. Overpayment on behalf of individuals and

settlement of claims for benefits on behalf of

deceased individuals.

(a) Payments to providers of services or other

person regarded as payment to individuals.

(b) Incorrect payments on behalf of individuals;

payment adjustment.

adjustment.

(d) Liability of certifying or disbursing

officer for failure to recoup.

(e) Settlement of claims for benefits under this

subchapter on behalf of deceased

individuals.

(f) Settlement of claims for section 1395k

benefits on behalf of deceased individuals.

(g) Refund of premiums for deceased individuals.

1395hh. Regulations.

(a) Authority to prescribe regulations;

ineffectiveness of substantive rules not

promulgated by regulation.

(b) Notice of proposed regulations; public

comment.

inspection; changes in data collection and

retrieval.

1395ii. Application of certain provisions of subchapter

II.

1395jj. Designation of organization or publication by

name.

1395kk. Administration of insurance programs.

(a) Functions of Secretary; performance directly

or by contract.

(b) Contracts to secure special data, actuarial

information, etc.

1395ll. Studies and recommendations.

(a) Health care of the aged and disabled.

(b) Operation and administration of insurance

programs.

1395mm. Payments to health maintenance organizations and

competitive medical plans.

(a) Rates and adjustments.

(b) Definitions; requirements.

to enrollees.

(d) Right to enroll with contracting

organization in geographic area.

(e) Limitation on charges; election of coverage;

"adjusted community rate" defined;

workmen's compensation and insurance

benefits.

(f) Membership requirements.

(g) Risk-sharing contract.

(h) Reasonable cost reimbursement contract;

requirements.

(i) Duration, termination, effective date, and

terms of contract; powers and duties of

Secretary.

(j) Payment in full and limitation on actual

charges; physicians, providers of services,

or renal dialysis facilities not under

contract with organization.

(k) Risk-sharing contracts.

1395nn. Limitation on certain physician referrals.

(a) Prohibition of certain referrals.

(b) General exceptions to both ownership and

compensation arrangement prohibitions.

or investment prohibition for ownership in

publicly traded securities and mutual

funds.

(d) Additional exceptions related only to

ownership or investment prohibition.

(e) Exceptions relating to other compensation

arrangements.

(f) Reporting requirements.

(g) Sanctions.

(h) Definitions and special rules.

1395oo. Provider Reimbursement Review Board.

(a) Establishment.

(b) Appeals by groups.

(d) Decisions of Board.

(e) Rules and regulations.

(f) Finality of decision; judicial review;

determinations of Board authority;

jurisdiction; venue; interest on amount in

controversy.

(g) Certain findings not reviewable.

(h) Composition and compensation.

(i) Technical and clerical assistance.

(j) "Provider of services" defined.

1395pp. Limitation on liability where claims are

disallowed.

(a) Conditions prerequisite to payment for items

and services notwithstanding determination

of disallowance.

(b) Knowledge of person or provider that payment

could not be made; indemnification of

individual.

whom items or services were furnished that

payment could not be made.

(d) Exercise of rights.

(e) Payment where beneficiary not at fault.

(f) Presumption with respect to coverage denial;

rebuttal; requirements; "fiscal

intermediary" defined.

(g) Coverage denial defined.

(h) Supplier responsibility for items furnished

on assignment basis.

1395qq. Indian health service facilities.

(a) Eligibility for payments; conditions and

requirements.

(b) Eligibility based on submission of plan to

achieve compliance with conditions and

requirements; twelve-month period.

to achieve compliance with conditions and

requirements; certification of compliance

by Secretary.

(d) Report by Secretary; status of facilities in

complying with conditions and requirements.

(e) Services provided by Indian Health Service,

Indian tribe, or tribal organization.

(f) Cross reference.

1395rr. End stage renal disease program.

(a) Type, duration, and scope of benefits.

(b) Payments with respect to services; dialysis;

regulations; physicians' services; target

reimbursement rates; home dialysis supplies

and equipment; self-care home dialysis

support services; self-care dialysis units;

hepatitis B vaccine.

councils, executive committees, and medical

review boards; national end stage renal

disease medical information system;

functions of network organizations.

(d) Donors of kidney for transplant surgery.

(e) Reimbursement of providers, facilities, and

nonprofit entities for costs of artificial

kidney and automated dialysis peritoneal

machines for home dialysis.

(f) Experiments, studies, and pilot projects.

(g) Conditional approval of dialysis facilities;

restriction-of-payments notice to public

and facility; notice and hearing; judicial

review.

1395ss. Certification of medicare supplemental health

insurance policies.

(a) Submission of policy by insurer.

(b) Standards and requirements; periodic review

by Secretary.

(d) Criminal penalties; civil penalties for

certain violations.

(e) Dissemination of information.

(f) Study and evaluation of comparative

effectiveness of various State approaches

to regulating medicare supplemental

policies; report to Congress no later than

January 1, 1982; periodic evaluations.

(g) Definitions.

(h) Rules and regulations.

(i) Commencement of certification program.

(j) State regulation of policies issued in other

States.

(k) Amended NAIC Model Regulation or Federal

model standards applicable; effective date;

medicare supplemental policy and State

regulatory program meeting applicable

standards.

(l) Transitional compliance with NAIC Model

Transition Regulation; "qualifying medicare

supplemental policy" and "NAIC Model

Transition Regulation" defined.

(m) Revision of amended NAIC Model Regulation

and amended Federal model standards;

effective dates; medicare supplemental

policy and State regulatory program meeting

applicable standards.

(n) Transition compliance with revision of NAIC

Model Regulation and Federal model

standards.

(o) Requirements of group benefits; core group

benefits; uniform outline of coverage.

(p) Standards for group benefits.

(q) Guaranteed renewal of policies; termination;

suspension.

(r) Required ratio of aggregate benefits to

aggregate premiums.

(s) Coverage for pre-existing conditions.

(t) Medicare select policies.

(u) Additional rules relating to individuals

enrolled in MSA plans and in private

fee-for-service plans.

1395tt. Hospital providers of extended care services.

(a) Hospital facility agreements; reasonable

costs of services.

(b) Eligible facilities.

(d) Post-hospital extended care services.

(e) Reimbursement for routine hospital services.

(f) Conditions applicable to skilled nursing

facilities.

(g) Agreements on demonstration basis.

1395uu. Payments to promote closing or conversion of

underutilized hospital facilities.

(a) Transitional allowances; procedures

applicable.

(b) Allowable costs as transitional allowances;

findings and determinations.

allowance.

(d) Hearing to review determination.

1395vv. Withholding payments from certain medicaid

providers.

(a) Adjustments by Secretary.

(b) Implementing regulations; notice,

opportunity to be heard, etc.

1395ww. Payments to hospitals for inpatient hospital

services.

(a) Determination of costs for inpatient

hospital services; limitations; exemptions;

"operating costs of inpatient hospital

services" defined.

(b) Computation of payment; definitions;

exemptions; adjustments.

reimbursement control system; amount of

payment; discontinuance of payments.

(d) Inpatient hospital service payments on basis

of prospective rates; Medicare Geographical

Classification Review Board.

(e) Proportional adjustments in applicable

percentage increases.

(f) Reporting of costs of hospitals receiving

payments on basis of prospective rates.

(g) Prospective payment for capital-related

costs; return on equity capital for

hospitals.

(h) Payments for direct graduate medical

education costs.

(i) Avoiding duplicative payments to hospitals

participating in rural demonstration

programs.

(j) Prospective payment for inpatient

rehabilitation services.

(k) Payment to nonhospital providers.

(l) Payment for nursing and allied health

education for managed care enrollees.

1395xx. Payment of provider-based physicians and payment

under certain percentage arrangements.

(a) Criteria; amount of payments.

(b) Prohibition of recognition of payments under

certain percentage agreements.

1395yy. Payment to skilled nursing facilities for routine

service costs.

(a) Per diem limitations.

(b) Excess overhead allocations for

hospital-based facilities.

data.

(d) Access to skilled nursing facilities.

(e) Prospective payment.

1395zz, 1395aaa. Repealed or Transferred.

1395bbb. Conditions of participation for home health

agencies; home health quality.

(a) Conditions of participation; protection of

individual rights; notification of State

entities; use of home health aides; medical

equipment; individual's plan of care;

compliance with Federal, State, and local

laws and regulations.

(b) Duty of Secretary.

(d) Assessment process; reports to Congress.

(e) Enforcement.

(f) Intermediate sanctions.

(g) Payment on basis of location of service.

1395ccc. Offset of payments to individuals to collect

past-due obligations arising from breach of

scholarship and loan contract.

(a) In general.

(b) Past-due obligation.

exclusive.

(d) Collection from providers and health

maintenance organizations.

(e) Transfer from trust funds.

1395ddd. Medicare Integrity Program.

(a) Establishment of Program.

(b) Activities described.

(d) Process for entering into contracts.

(e) Limitation on contractor liability.

1395eee. Payments to, and coverage of benefits under,

programs of all-inclusive care for elderly

(PACE).

(a) Receipt of benefits through enrollment in

PACE program; definitions for PACE program

related terms.

(b) Scope of benefits; beneficiary safeguards.

(d) Payments to PACE providers on capitated

basis.

(e) PACE program agreement.

(f) Regulations.

(g) Waivers of requirements.

(h) Demonstration project for for-profit

entities.

(i) Miscellaneous provisions.

1395fff. Prospective payment for home health services.

(a) In general.

(b) System of prospective payment for home

health services.

(d) Limitation on review.

(e) Construction related to home health

services.

1395ggg. Medicare subvention demonstration project for

military retirees.

(a) Definitions.

(b) Demonstration project.

(d) Waiver of certain medicare requirements.

(e) Inspector General.

(f) Voluntary participation.

(g) TRICARE health care plans.

(h) Additional plans.

(i) Payments based on regular medicare payment

rates.

(j) Maintenance of effort.

(k) Evaluation and reports.

SUBCHAPTER XIX - GRANTS TO STATES FOR MEDICAL ASSISTANCE PROGRAMS

1396. Appropriations.

1396a. State plans for medical assistance.

(a) Contents.

(b) Approval by Secretary.

benefits as condition of applying for, or

receiving, medical assistance.

(d) Performance of medical or utilization review

functions.

(e) Continued eligibility of families determined

ineligible because of income and resources

or hours of work limitations of plan;

individuals enrolled with health

maintenance organizations; persons deemed

recipients of supplemental security income

or State supplemental payments; entitlement

for certain newborns; postpartum

eligibility for pregnant women.

(f) Effective date of State plan as

determinative of duty of State to provide

medical assistance to aged, blind, or

disabled individuals.

(g) Reduction of aid or assistance to providers

of services attempting to collect from

beneficiary in violation of third-party

provisions.

(h) Payments for hospitals serving

disproportionate number of low-income

patients and for home and community care.

(i) Termination of certification for

participation of and suspension of State

payments to intermediate care facilities

for the mentally retarded.

(j) Waiver or modification of subchapter

requirements with respect to medical

assistance program in American Samoa.

(k) Repealed.

(l) Description of group.

(m) Description of individuals.

(n) Payment amounts.

(o) Certain benefits disregarded for purposes of

determining post-eligibility contributions.

(p) Exclusion power of State; exclusion as

prerequisite for medical assistance

payments; "exclude" defined.

(q) Minimum monthly personal needs allowance

deduction; "institutionalized individual or

couple" defined.

(r) Disregarding payments for certain medical

expenses by institutionalized individuals.

(s) Adjustment in payment for hospital services

furnished to low-income children under age

of 6 years.

(t) Limitation on payments to States for

expenditures attributable to taxes.

(u) Qualified COBRA continuation beneficiaries.

(v) State agency disability and blindness

determinations for medical assistance

eligibility.

(w) Maintenance of written policies and

procedures respecting advance directives.

(x) Physician identifier system; establishment.

(y) Intermediate sanctions for psychiatric

hospitals.

(z) Optional coverage of TB-related services.

(aa) Certain breast or cervical cancer patients.

(bb) Payment for services provided by

Federally-qualified health centers and

rural health clinics.

1396b. Payment to States.

(a) Computation of amount.

(b) Quarterly expenditures beginning after

December 31, 1969.

(d) Estimates of State entitlement;

installments; adjustments to reflect

overpayments or underpayments; time for

recovery or adjustment; uncollectable or

discharged debts; obligated appropriations;

disputed claims.

(e) Transition costs of closures or conversions

permitted.

(f) Limitation on Federal participation in

medical assistance.

(g) Decrease in Federal medical assistance

percentage of amounts paid for services

furnished under State plan after June 30,

1973.

(h) Repealed.

(i) Payment for organ transplants; item or

service furnished by excluded individual,

entity, or physician; other restrictions.

(j) Adjustment of amount.

(k) Technical assistance to States.

(l) Repealed.

(m) "Medicaid managed care organization"

defined; duties and functions of Secretary;

payments to States; reporting requirements;

remedies.

(n) Repealed.

(o) Restrictions on authorized payments to

States.

(p) Assignment of rights of payment; incentive

payments for enforcement and collection.

(q) "State medicaid fraud control unit" defined.

(r) Mechanized claims processing and information

retrieval systems; operational, etc.,

requirements.

(s) Limitations on certain physician referrals.

(t) Repealed.

(u) Limitation of Federal financial

participation in erroneous medical

assistance expenditures.

(v) Medical assistance to aliens not lawfully

admitted for permanent residence.

(w) Prohibition on use of voluntary

contributions, and limitation on use of

provider-specific taxes to obtain Federal

financial participation under medicaid.

1396c. Operation of State plans.

1396d. Definitions.

(a) Medical assistance.

(b) Federal medical assistance percentage; State

percentage; Indian health care percentage.

(d) Intermediate care facility for mentally

retarded.

(e) Physicians' services.

(f) Nursing facility services.

(g) Chiropractors' services.

(h) Inpatient psychiatric hospital services for

individuals under age 21.

(i) Institution for mental diseases.

(j) State supplementary payment.

(k) Supplemental security income benefits.

(l) Rural health clinics.

(m) Qualified family member.

(n) "Qualified pregnant woman or child" defined.

(o) Optional hospice benefits.

(p) Qualified medicare beneficiary; medicare

cost-sharing.

(q) Qualified severely impaired individual.

(r) Early and periodic screening, diagnostic,

and treatment services.

(s) Qualified disabled and working individual.

(t) Primary care case management services;

primary care case manager; primary care

case management contract; and primary care.

(u) Conditions for State plans.

(v) Employed individual with a medically

improved disability.

(w) Independent foster care adolescent.

1396e. Enrollment of individuals under group health

plans.

(a) Requirements of each State plan; guidelines.

(b) Timing of enrollment; failure to enroll.

assistance; eligibility.

(d) Repealed.

(e) Definitions.

1396f. Observance of religious beliefs.

1396g. State programs for licensing of administrators of

nursing homes.

(a) Nature of State program.

(b) Licensing by State agency or board

representative of concerned professions and

institutions.

board.

(d) Waiver of standards other than good

character or suitability standards.

(e) "Nursing home" and "nursing home

administrator" defined.

1396g-1. Required laws relating to medical child support.

(a) In general.

(b) "Insurer" defined.

1396h. Transferred.

1396i. Certification and approval of rural health clinics

and intermediate care facilities for mentally

retarded.

1396j. Indian health service facilities.

(a) Eligibility for reimbursement for medical

assistance.

(b) Facilities deemed to meet requirements upon

submission of acceptable plan for achieving

compliance.

providing care and services.

(d) Cross reference.

1396k. Assignment, enforcement, and collection of rights

of payments for medical care; establishment of

procedures pursuant to State plan; amounts

retained by State.

1396l. Hospital providers of nursing facility services.

1396m. Withholding of Federal share of payments for

certain medicare providers.

(a) Adjustment of Federal matching payments.

(b) Reductions in payments to and by States.

(d) Regulations.

(e) Restoration to trust funds of recovered

amounts.

(f) Liability of States for withheld payments.

1396n. Compliance with State plan and payment provisions.

(a) Activities deemed as compliance.

(b) Waivers to promote cost-effectiveness and

efficiency.

requirement in State plan; scope, etc.;

"habilitation services" defined; imposition

of certain regulatory limits prohibited;

computation of expenditures for certain

disabled patients; coordinated services;

substitution of participants.

(d) Home and community-based services for

elderly.

(e) Waiver for children infected with AIDS or

drug dependent at birth.

(f) Monitor of implementation of waivers;

termination of waiver for noncompliance;

time limitation for action on requests for

plan approval, amendments, or waivers.

(g) Optional targeted case management services.

(h) Period of waivers; continuations.

1396o. Use of enrollment fees, premiums, deductions, cost

sharing, and similar charges.

(a) Imposition of certain charges under plan in

case of individuals described in section

1396a(a)(10)(A) or (E).

(b) Imposition of certain charges under plan in

case of individuals other than those

described in section 1396a(a)(10)(A) or

(E).

affected; amount; prepayment; failure to

pay; use of funds from other programs.

(d) Premiums for qualified disabled and working

individuals described in section 1396d(s).

(e) Prohibition of denial of services on basis

of individual's inability to pay certain

charges.

(f) Charges imposed under waiver authority of

Secretary.

(g) Individuals provided medical assistance

under section 1396a(a)(10)(A)(ii)(XV) or

(XVI).

1396p. Liens, adjustments and recoveries, and transfers

of assets.

(a) Imposition of lien against property of an

individual on account of medical assistance

rendered to him under a State plan.

(b) Adjustment or recovery of medical assistance

correctly paid under a State plan.

assets.

(d) Treatment of trust amounts.

(e) Definitions.

1396q. Application of provisions of subchapter II

relating to subpoenas.

1396r. Requirements for nursing facilities.

(a) "Nursing facility" defined.

(b) Requirements relating to provision of

services.

(d) Requirements relating to administration and

other matters.

(e) State requirements relating to nursing

facility requirements.

(f) Responsibilities of Secretary relating to

nursing facility requirements.

(g) Survey and certification process.

(h) Enforcement process.

(i) Construction.

1396r-1. Presumptive eligibility for pregnant women.

(a) Ambulatory prenatal care.

(b) Definitions.

and presumptively eligible pregnant women.

(d) Ambulatory prenatal care as medical

assistance.

1396r-1a. Presumptive eligibility for children.

(a) In general.

(b) Definitions; regulations.

procedure upon determination of presumptive

eligibility.

(d) Treatment of medical assistance.

Sec.

1396r-1b. Presumptive eligibility for certain breast or

cervical cancer patients.

(a) State option.

(b) Definitions.

(d) Payment.

1396r-2. Information concerning sanctions taken by State

licensing authorities against health care

practitioners and providers.

(a) Information reporting requirement.

(b) Form of information.

(d) Appropriate coordination.

1396r-3. Correction and reduction plans for intermediate

care facilities for mentally retarded.

(a) Written plans to remedy substantial

deficiencies; time for submission.

(b) Conditions for approval of reduction plans.

(d) Notice and comment; approval of more than 15

reduction plans in any fiscal year;

corrections costing $2,000,000 or more.

(e) Termination of provider agreements;

disallowance of percentage amounts for

purposes of Federal financial

participation.

(f) Applicability of section limited to plans

approved by January 1, 1990.

1396r-4. Adjustment in payment for inpatient hospital

services furnished by disproportionate share

hospitals.

(a) Implementation of requirement.

(b) Hospitals deemed disproportionate share.

(d) Requirements to qualify as disproportionate

share hospital.

(e) Special rule.

(f) Limitation on Federal financial

participation.

(g) Limit on amount of payment to hospital.

(h) Limitation on certain State DSH

expenditures.

(i) Requirement for direct payment.

1396r-5. Treatment of income and resources for certain

institutionalized spouses.

(a) Special treatment for institutionalized

spouses.

(b) Rules for treatment of income.

(d) Protecting income for community spouse.

(e) Notice and fair hearing.

(f) Permitting transfer of resources to

community spouse.

(g) Indexing dollar amounts.

(h) Definitions.

1396r-6. Extension of eligibility for medical assistance.

(a) Initial 6-month extension.

(b) Additional 6-month extension.

(d) General disqualification for fraud.

(e) "Caretaker relative" defined.

(f) Sunset.

1396r-7. Repealed.

1396r-8. Payment for covered outpatient drugs.

(a) Requirement for rebate agreement.

(b) Terms of rebate agreement.

(d) Limitations on coverage of drugs.

(e) Treatment of pharmacy reimbursement limits.

(f) Repealed and redesignated.

(g) Drug use review.

(h) Electronic claims management.

(i) Omitted.

(j) Exemption of organized health care settings.

(k) Definitions.

1396s. Program for distribution of pediatric vaccines.

(a) Establishment of program.

(b) Vaccine-eligible children.

(d) Negotiation of contracts with manufacturers.

(e) Use of pediatric vaccines list.

(f) Requirement of State maintenance of

immunization laws.

(g) Termination.

(h) Definitions.

1396t. Home and community care for functionally disabled

elderly individuals.

(a) "Home and community care" defined.

(b) "Functionally disabled elderly individual"

defined.

(d) Individual community care plan (ICCP).

(e) Ceiling on payment amounts and maintenance

of effort.

(f) Minimum requirements for home and community

care.

(g) Minimum requirements for small community

care settings.

(h) Minimum requirements for large community

care settings.

(i) Survey and certification process.

(j) Enforcement process for providers of

community care.

(k) Secretarial responsibilities.

(l) Waiver of statewideness.

(m) Limitation on amount of expenditures as

medical assistance.

1396u. Community supported living arrangements services.

(a) Community supported living arrangements

services.

(b) "Developmentally disabled individual"

defined.

States.

(d) Quality assurance.

(e) Maintenance of effort.

(f) Excluded services.

(g) Waiver of requirements.

(h) Minimum protections.

(i) Treatment of funds.

(j) Limitation on amounts of expenditures as

medical assistance.

1396u-1. Assuring coverage for certain low-income families.

(a) References to subchapter IV-A are references

to pre-welfare-reform provisions.

(b) Application of pre-welfare-reform

eligibility criteria.

coverage provisions.

(d) Waivers.

(e) State option to use 1 application form.

(f) Additional rules of construction.

(g) Relation to other provisions.

(h) Transitional increased Federal matching rate

for increased administrative costs.

(i) Welfare reform effective date.

1396u-2. Provisions relating to managed care.

(a) State option to use managed care.

(b) Beneficiary protections.

(d) Protections against fraud and abuse.

(e) Sanctions for noncompliance.

(f) Timeliness of payment.

(g) Identification of patients for purposes of

making DSH payments.

1396u-3. State coverage of medicare cost-sharing for

additional low-income medicare beneficiaries.

(a) In general.

(b) Selection of qualifying individuals.

(d) Applicable FMAP.

(e) Limitation on entitlement.

(f) Coverage of costs through part B of medicare

program.

1396u-4. Program of all-inclusive care for elderly (PACE).

(a) State option.

(b) Scope of benefits; beneficiary safeguards.

(d) Payments to PACE providers on a capitated

basis.

(e) PACE program agreement.

(f) Regulations.

(g) Waivers of requirements.

(h) Demonstration project for for-profit

entities.

(i) Post-eligibility treatment of income.

(j) Miscellaneous provisions.

1396v. References to laws directly affecting medicaid

program.

(a) Authority or requirements to cover

additional individuals.

(b) Additional State plan requirements.

SUBCHAPTER XX - BLOCK GRANTS TO STATES FOR SOCIAL SERVICES

1397. Purposes; authorization of appropriations.

1397a. Payments to States.

(a) Amount; covered services.

(b) Funding requirements.

(d) Transfers of funds.

(e) Use of portion of funds.

(f) Authority to use vouchers.

1397b. Allotments.

(a) Computation of amounts for jurisdictions of

Puerto Rico, Guam, etc.

(b) Computation of amounts for each State other

than jurisdictions of Puerto Rico, Guam,

etc.

1397c. State reporting requirements.

1397d. Limitation on use of grants; waiver.

1397e. Administrative and fiscal accountability.

(a) Reporting requirements; form, contents, etc.

(b) Audits; implementation, etc.

social services funds.

(d) Additional accounting requirements.

1397f. Additional grants.

(a) Entitlement.

(b) Program options.

(d) Remittance of certain amounts.

(e) Reallocation of remaining funds.

(f) Definitions.

SUBCHAPTER XXI - STATE CHILDREN'S HEALTH INSURANCE PROGRAM

1397aa. Purpose; State child health plans.

(a) Purpose.

(b) State child health plan required.

(d) Effective date.

1397bb. General contents of State child health plan;

eligibility; outreach.

(a) General background and description.

(b) General description of eligibility standards

and methodology.

1397cc. Coverage requirements for children's health

insurance.

(a) Required scope of health insurance coverage.

(b) Benchmark benefit packages.

actuarial value of coverage.

(d) Description of existing comprehensive

State-based coverage.

(e) Cost-sharing.

(f) Application of certain requirements.

1397dd. Allotments.

(a) Appropriation; total allotment.

(b) Allotments to 50 States and District of

Columbia.

(d) Repealed.

(e) 3-year availability of amounts allotted.

(f) Procedure for redistribution of unused

allotments.

(g) Rule for redistribution and extended

availability of fiscal years 1998 and 1999

allotments.

1397ee. Payments to States.

(a) In general.

(b) Enhanced FMAP.

expenditures.

(d) Maintenance of effort.

(e) Advance payment; retrospective adjustment.

(f) Flexibility in submittal of claims.

1397ff. Process for submission, approval, and amendment of

State child health plans.

(a) Initial plan.

(b) Plan amendments.

(d) Program operation.

(e) Continued approval.

1397gg. Strategic objectives and performance goals; plan

administration.

(a) Strategic objectives and performance goals.

(b) Records, reports, audits, and evaluation.

(d) Program budget.

(e) Application of certain general provisions.

1397hh. Annual reports; evaluations.

(a) Annual report.

(b) State evaluations.

(d) Inspector General audit and GAO report.

1397ii. Miscellaneous provisions.

(a) Relation to other laws.

(b) Adjustment to Current Population Survey to

include State-by-State data relating to

children without health insurance coverage.

1397jj. Definitions.

(a) Child health assistance.

(b) "Targeted low-income child" defined.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in sections 256b, 299a, 907a, 1437f,

4636, 11606, 12637, 13021 of this title; title 2 section 651; title

5 sections 8403, 8442; title 7 sections 2012, 2015; title 8 section

1324a; title 12 section 1701z-11; title 22 sections 3968, 4071i;

title 25 sections 13d, 459e, 609c-1, 640d-21, 1264, 1300d-25, 1407,

1408, 2307, 3304; title 26 sections 86, 162, 401, 412, 415, 1402,

6103; title 29 sections 716, 728, 1082, 2931; title 31 sections

1516, 3701, 3716; title 38 sections 5303A, 8126; title 40 section

14502; title 43 section 1626; title 45 sections 231, 231a, 231b,

231c, 231d, 231e, 231f, 231q, 231r, 231u; title 50 App. section

1291.

-End-

-CITE-

42 USC SUBCHAPTER I - GRANTS TO STATES FOR OLD-AGE

ASSISTANCE 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 7 - SOCIAL SECURITY

SUBCHAPTER I - GRANTS TO STATES FOR OLD-AGE ASSISTANCE

-HEAD-

SUBCHAPTER I - GRANTS TO STATES FOR OLD-AGE ASSISTANCE

-STATAMEND-

REPEAL OF SUBCHAPTER I OF THIS CHAPTER; INAPPLICABILITY OF REPEAL

TO PUERTO RICO, GUAM, AND VIRGIN ISLANDS

Pub. L. 92-603, title III, Sec. 303(a), (b), Oct. 30, 1972, 86

Stat. 1484, provided that this subchapter is repealed effective

January 1, 1974, except with respect to Puerto Rico, Guam, and the

Virgin Islands.

-MISC1-

AMENDMENTS

1960 - Pub. L. 86-778, title VI, Sec. 601(a), Sept. 13, 1960, 74

Stat. 987, included medical assistance for the aged in subchapter

heading.

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in sections 428, 671, 1301, 1306a,

1308, 1309, 1311, 1315, 1316, 1318, 1319, 1320b-2, 1320b-3,

1320b-7, 1382, 1395v, 1395z, 1396a, 1396b, 1396d of this title;

title 7 sections 2012, 2014; title 8 section 1255a; title 26

section 6103.

-End-

-CITE-

42 USC Sec. 301 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 7 - SOCIAL SECURITY

SUBCHAPTER I - GRANTS TO STATES FOR OLD-AGE ASSISTANCE

-HEAD-

Sec. 301. Authorization of appropriations

-STATUTE-

For the purpose of enabling each State, as far as practicable

under the conditions in such State, to furnish financial assistance

to aged needy individuals, there is hereby authorized to be

appropriated for each fiscal year a sum sufficient to carry out the

purposes of this subchapter. The sums made available under this

section shall be used for making payments to States which have

submitted, and had approved by the Secretary of Health and Human

Services (hereinafter referred to as the "Secretary"), State plans

for old-age assistance.

-SOURCE-

(Aug. 14, 1935, ch. 531, title I, Sec. 1, 49 Stat. 620; Aug. 28,

1950, ch. 809, title III, pt. 6, Sec. 361(a), 64 Stat. 558; Aug. 1,

1956, ch. 836, title III, Sec. 311(a), 70 Stat. 848; Pub. L.

86-778, title VI, Sec. 601(b), Sept. 13, 1960, 74 Stat. 987; Pub.

L. 87-543, title I, Sec. 104(c)(1), July 25, 1962, 76 Stat. 185;

Pub. L. 96-88, title V, Sec. 509(b), Oct. 17, 1979, 93 Stat. 695;

Pub. L. 97-35, title XXI, Sec. 2184(a)(2), Aug. 13, 1981, 95 Stat.

816.)

-STATAMEND-

REPEAL OF SECTION

Pub. L. 92-603, title III, Sec. 303(a), (b), Oct. 30, 1972, 86

Stat. 1484, provided that this section is repealed effective Jan.

1, 1974, except with respect to Puerto Rico, Guam, and the Virgin

Islands.

-MISC1-

AMENDMENTS

1981 - Pub. L. 97-35 substituted "purpose of enabling" for

"purpose (a) of enabling", struck out provisions designated as cls.

(b) and (c) which authorized appropriations for the purpose of

enabling each State to furnish medical assistance to aged

individuals who are not recipients of old-age assistance but whose

income and resources are insufficient to meet the cost of necessary

medical care and of encouraging each State to furnish

rehabilitation and other services to individuals to attain and

retain capability for self-care, and struck out ", or for medical

assistance for the aged, or for old-age assistance and medical

assistance for the aged" after "plans for old-age assistance".

1962 - Pub. L. 87-543 amended first sentence generally, striking

from cl. (a) provision relating to the purpose of encouraging each

State, as far as practicable under the conditions in the State, to

help aged needy individuals attain self-care, and adding cl. (c)

incorporating the struck out provision.

1960 - Pub. L. 86-778 amended section generally, authorizing

appropriations for the purpose of enabling each State, as far as

practicable under the conditions in such State, to furnish medical

assistance on behalf of aged individuals who are not recipients of

old-age assistance but whose income and resources are insufficient

to meet the costs of necessary medical services.

1956 - Act Aug. 1, 1956, struck out specific appropriation for

fiscal year ending June 30, 1956, and inserted provisions relating

to attainment of self-care by individuals.

1950 - Act Aug. 28, 1950, Sec. 361(a), substituted "Federal

Security Administrator (hereinafter referred to as the

'Administrator')" for "Social Security Board established by

subchapter I of this chapter (hereinafter referred to as the

'Board')".

EFFECTIVE DATE OF 1960 AMENDMENT

Section 604 of Pub. L. 86-778 provided that: "The amendments made

by section 601 of this Act [amending this section and sections 302,

303, 304, and 306 of this title] shall take effect October 1, 1960,

and the amendments made by section 602 [amending section 1308 of

this title] shall be effective with respect to fiscal years ending

after 1960."

-CHANGE-

CHANGE OF NAME

Secretary of Health and Human Services substituted in text for

Secretary of Health, Education, and Welfare pursuant to section

509(b) of Pub. L. 96-88 which is classified to section 3508(b) of

Title 20, Education.

-MISC2-

SHORT TITLE

For short title of this chapter and of amendments thereto, see

section 1305 of this title and Short Title notes set out

thereunder.

DECLARATION OF PURPOSE OF TITLE III OF ACT AUGUST 1, 1956

Section 300 of act Aug. 1, 1956, provided that: "It is the

purpose of this title [enacting sections 906 and 1310 of this title

and amending this section and sections 302, 303, 601, 602, 603,

606, 1201, 1202, 1203, 1301, 1308, 1351, 1352, and 1353 of this

title] (a) to promote the health of the Nation by assisting States

to extend and broaden their provisions for meeting the costs of

medical care for persons eligible for public assistance by

providing for separate matching of assistance expenditures for

medical care, (b) to promote the well-being of the Nation by

encouraging the States to place greater emphasis on helping to

strengthen family life and helping needy families and individuals

attain the maximum economic and personal independence of which they

are capable, (c) to assist in improving the administration of

public assistance programs (1) through making grants and contracts,

and entering into jointly financed cooperative arrangements, for

research or demonstration projects and (2) through Federal-State

programs of grants to institutions and traineeships and fellowships

so as to provide training of public welfare personnel, thereby

securing more adequately trained personnel, and (d) to improve aid

to dependent children."

PUERTO RICO, GUAM, AND THE VIRGIN ISLANDS

Pub. L. 92-603, title III, Sec. 303(b), Oct. 30, 1972, 86 Stat.

1484, provided that: "The amendments made by sections 301 [enacting

sections 1381 to 1383c of this title] and 302 [enacting sections

801 to 805 of this title] and the repeals made by subsection (a)

[repealing this section and sections 302 to 306, 1201 to 1206, and

1351 to 1355 of this title] shall not be applicable in the case of

Puerto Rico, Guam, and the Virgin Islands."

-End-

-CITE-

42 USC Sec. 302 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 7 - SOCIAL SECURITY

SUBCHAPTER I - GRANTS TO STATES FOR OLD-AGE ASSISTANCE

-HEAD-

Sec. 302. State old-age plans

-STATUTE-

(a) Contents

A State plan for old-age assistance must -

(1) except to the extent permitted by the Secretary with

respect to services, 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 (A) for granting an opportunity for a fair hearing

before the State agency to any individual whose claim for

assistance under the plan is denied or is not acted upon with

reasonable promptness, and (B) that if the State plan is

administered in each of the political subdivisions of the State

by a local agency and such local agency provides a hearing at

which evidence may be presented prior to a hearing before the

State agency, such local agency may put into effect immediately

upon issuance its decision upon the matter considered at such

hearing;

(5) provide (A) such methods of administration (including

methods relating to the establishment and maintenance of

personnel standards on a merit basis, except that the Secretary

shall exercise no authority with respect to the selection, tenure

of office, and compensation of any individual employed in

accordance with such methods) as are found by the Secretary to be

necessary for the proper and efficient operation of the plan, and

(B) for the training and effective use of paid subprofessional

staff, with particular emphasis on the full-time or part-time

employment of recipients and other persons of low income, as

community service aides, in the administration of the plan and

for the use of nonpaid or partially paid volunteers in a social

service volunteer program in providing services to applicants and

recipients and in assisting any advisory committees established

by the State agency;

(6) provide that the State agency will make such reports, in

such form and containing such information, as the Secretary may

from time to time require, and comply with such provisions as the

Secretary may from time to time find necessary to assure the

correctness and verification of such reports;

(7) provide safeguards which permit the use or disclosure of

information concerning applicants or recipients only (A) to

public officials who require such information in connection with

their official duties, or (B) to other persons for purposes

directly connected with the administration of the State plan;

(8) provide that all individuals wishing to make application

for assistance under the plan shall have opportunity to do so,

and that such assistance shall be furnished with reasonable

promptness to all eligible individuals;

(9) provide, if the plan includes assistance for or on behalf

of individuals in private or public institutions, for the

establishment or designation of a State authority or authorities

which shall be responsible for establishing and maintaining

standards for such institutions;

(10) if the State plan includes old-age assistance -

(A) provide that the State agency shall, in determining need

for such assistance, take into consideration any other income

and resources of an individual claiming old-age assistance, as

well as any expenses reasonably attributable to the earning of

any such income; except that, in making such determination, (i)

the State agency may disregard not more than $7.50 per month of

any income and (ii) of the first $80 per month of additional

income which is earned the State agency may disregard not more

than the first $20 thereof plus one-half of the remainder;

(B) include reasonable standards, consistent with the

objectives of this subchapter, for determining eligibility for

and the extent of such assistance; and

State agency makes available (using whatever internal

organizational arrangement it finds appropriate for this

purpose) to applicants for and recipients of such assistance to

help them attain self-care, including a description of the

steps taken to assure, in the provision of such services,

maximum utilization of other agencies providing similar or

related services; and

(11) provide that information is requested and exchanged for

purposes of income and eligibility verification in accordance

with a State system which meets the requirements of section

1320b-7 of this title.

(b) Approval by Secretary

The Secretary shall approve any plan which fulfills the

conditions specified in subsection (a) of this section, except that

he shall not approve any plan which imposes, as a condition of

eligibility for assistance under the plan -

(1) an age requirement of more than sixty-five years; or

(2) any residence requirement which (A) in the case of

applicants for old-age assistance, 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, and (B) in the case of applicants for

medical assistance for the aged, excludes any individual who

resides in the State; or

(3) any citizenship requirement which excludes any citizen of

the United States.

At the option of the State, the plan may provide that manuals and

other policy issuances will be furnished to persons without charge

for the reasonable cost of such materials, but such provision shall

not be required by the Secretary as a condition for the approval of

such plan under this subchapter.

Nothing in this subchapter shall be construed to permit a State

to have in effect with respect to any period more than one State

plan approved under this subchapter.

-SOURCE-

(Aug. 14, 1935, ch. 531, title I, Sec. 2, 49 Stat. 620; Aug. 10,

1939, ch. 666, title I, Sec. 101, 53 Stat. 1360; Aug. 28, 1950, ch.

809, title III, pt. 1, Sec. 301(a), (b), pt. 6, Sec. 361(c), (d),

64 Stat. 548, 558; Aug. 1, 1956, ch. 836, title III, Sec. 311(b),

70 Stat. 848; Pub. L. 85-840, title V, Sec. 510, Aug. 28, 1958, 72

Stat. 1051; Pub. L. 86-778, title VI, Sec. 601(b), Sept. 13, 1960,

74 Stat. 987; Pub. L. 87-543, title I, Secs. 106(a)(1), 157, July

25, 1962, 76 Stat. 188, 207; Pub. L. 89-97, title II, Sec.

221(a)(3), title IV, Sec. 403(a), July 30, 1965, 79 Stat. 357, 418;

Pub. L. 90-248, title II, Secs. 210(a)(1), 213(a)(1), Jan. 2, 1968,

81 Stat. 895, 898; Pub. L. 92-603, title IV, Secs. 405(a), 406(a),

407(a), 410(a), 413(a), Oct. 30, 1972, 86 Stat. 1488, 1489, 1491,

1492; Pub. L. 97-35, title XXI, Sec. 2184(a)(3), Aug. 13, 1981, 95

Stat. 816; Pub. L. 98-369, div. B, title VI, Sec. 2651(e), July 18,

1984, 98 Stat. 1149.)

-STATAMEND-

REPEAL OF SECTION

Pub. L. 92-603, title III, Sec. 303(a), (b), Oct. 30, 1972, 86

Stat. 1484, provided that this section is repealed effective Jan.

1, 1974, except with respect to Puerto Rico, Guam, and the Virgin

Islands.

-MISC1-

AMENDMENTS

1984 - Subsec. (a)(11). Pub. L. 98-369 added par. (11).

1981 - Subsec. (a). Pub. L. 97-35 struck out in provision

preceding par. (1) ", or for medical assistance for the aged, or

for old-age assistance and medical assistance for the aged" par.

(11) which specified the contents the State plan must contain if it

includes medical assistance for the aged, par. (12) which specified

the contents the State plan must contain if it includes assistance

to or in behalf of individuals who are patients in institutions for

mental diseases, and par. (13) which provided that if the State

plan includes assistance to or in behalf of patients in public

institutions for mental diseases, it show that the State is making

satisfactory progress towards developing and implementing a

comprehensive mental health program.

1972 - Subsec. (a)(1). Pub. L. 92-603, Sec. 410(a), inserted

"except to the extent permitted by the Secretary with respect to

services" before "provide".

Subsec. (a)(4). Pub. L. 92-603, Sec. 407(a), designated existing

provisions as cl. (A) and added cl. (B).

Subsec. (a)(7). Pub. L. 92-603, Sec. 413(a), substituted

provisions permitting use or disclosure of information concerning

applicants or recipients to public officials requiring such

information in connection with their official duties and to other

persons for purposes directly connected with administration of the

State plan, for provisions restricting use or disclosure of such

information to purposes directly connected with administration of

the State plan.

Subsec. (a)(10)(C). Pub. L. 92-603, Sec. 405(a), inserted

provision relating to use of whatever internal organizational

arrangement found appropriate.

Subsec. (b). Pub. L. 92-603, Sec. 406(a), inserted provision

relating to furnishing of manuals and other policy issuances to

persons without charge and at option of the State.

1968 - Subsec. (a)(5). Pub. L. 90-248, Sec. 210(a)(1), designated

existing provisions as subpar. (A) and added subpar. (B).

Subsec. (a)(10)(A)(i). Pub. L. 90-248, Sec. 213(a)(1), increased

from $5 to $7.50 limitation on amount of any income which the State

may disregard in making its determination of need.

1965 - Subsec. (a)(10)(A). Pub. L. 89-97, Sec. 403(a), placed a

ceiling of $5 on amount of any income which the State may disregard

in making its determination of need and substituted "$80" and "$20"

for "$50" and "$10" respectively.

Subsec. (a)(12), (13). Pub. L. 89-97, Sec. 221(a)(3), added pars.

(12) and (13).

1962 - Subsec. (a)(10)(A). Pub. L. 87-543 inserted "as well as

any expenses reasonably attributable to the earning of any such

income" and exception provision.

1960 - Subsec. (a). Pub. L. 86-778 amended subsec. (a) generally,

inserting provisions relating to plans for medical assistance, and

required plans that include old-age assistance to include

reasonable standards, consistent with objectives of this

subchapter, for determining eligibility for and extent of such

assistance.

Subsec. (b). Pub. L. 86-778 amended subsec. (b) generally,

substituting "eligibility for assistance under the plan" for

"eligibility for old-age assistance under the plan" in opening

provisions, struck out provisions from par. (1) which permitted

plan to impose an age requirement of as much as 70 years until Jan.

1, 1940, and inserted provisions in par. (2) requiring the

Secretary to disapprove any plan, in the case of applicants for

medical assistance for the aged, which excludes any individual who

resides in the State.

Subsec. (c). Pub. L. 86-778 added subsec. (c).

1958 - Subsec. (a)(11). Pub. L. 85-840 inserted provisions in

par. (11) requiring the State plan to include a description of the

steps taken to assure, in provision of such services, maximum

utilization of other agencies providing similar or related

services.

1956 - Subsec. (a)(11). Act Aug. 1, 1956, added par. (11).

1950 - Subsec. (a). Act Aug. 28, 1950, substituted "provide for

granting an opportunity for a fair hearing before the State agency

to any individual whose claim for old-age assistance is denied or

is not acted upon with reasonable promptness" for "provide for

granting to any individual, whose claim for old-age assistance is

denied, an opportunity for a fair hearing before such State agency"

in par. (4), "Administrator" for "Board" wherever appearing, and

"he", "him", or "his" for "it" or "its" wherever appearing, and

added pars. (9) and (10).

1939 - Subsec. (a). Act Aug. 10, 1939, amended subsec. (a)

generally commencing with par. (5).

EFFECTIVE DATE OF 1984 AMENDMENT

Amendment by Pub. L. 98-369 effective Apr. 1, 1985, except as

otherwise provided, see section 2651(l)(2) of Pub. L. 98-369, set

out as an Effective Date note under section 1320b-7 of this title.

EFFECTIVE DATE OF 1968 AMENDMENT

Section 210(b) of Pub. L. 90-248 provided that: "Each of the

amendments made by subsection (a) [amending this section and

sections 602, 1202, 1352, 1382, and 1396a of this title] shall

become effective July 1, 1969, or, if earlier (with respect to a

State's plan approved under title [subchapter] I, X, XIV, XVI, or

XIX, or part A of title IV [of this chapter]) on the date as of

which the modification of the State plan to comply with such

amendment is approved."

EFFECTIVE DATE OF 1965 AMENDMENT

Section 221(e) of Pub. L. 89-97 provided that: "The amendments

made by this section [amending this section and sections 303, 306,

1206, 1355, 1382, 1383, and 1385 of this title] shall apply in the

case of expenditures made after December 31, 1965, under a State

plan approved under title I, X, XIV, or XVI of the Social Security

Act [subchapter I, X, XIV, or XVI of this chapter]."

Section 403(a) of Pub. L. 89-97 provided that the amendment made

by that section is effective Oct. 1, 1965.

EFFECTIVE DATE OF 1962 AMENDMENT

Section 202(a) of Pub. L. 87-543 provided that: "The amendments

made by sections 102(b)(1), 103, 106, and 134 [amending this

section and sections 602, 607, 723, 1202, and 1352 of this title]

shall become effective July 1, 1963."

EFFECTIVE DATE OF 1960 AMENDMENT

Amendment by Pub. L. 86-778 effective Oct. 1, 1960, see section

604 of Pub. L. 86-778, set out as a note under section 301 of this

title.

EFFECTIVE DATE OF 1958 AMENDMENT

Amendment by Pub. L. 85-840 effective Oct. 1, 1958, see section

512 of Pub. L. 85-840, set out as a note under section 303 of this

title.

EFFECTIVE DATE OF 1956 AMENDMENT

Section 314 [315] of act Aug. 1, 1956, provided that: "The

amendments made by sections 311(b), 312(b), 313(b), and 314(b)

[amending this section and sections 602, 1202, and 1352 of this

title] shall become effective July 1, 1957."

EFFECTIVE DATE OF 1950 AMENDMENT

Section 301(c) of act Aug. 28, 1950, provided that: "The

amendments made by subsections (a) and (b) [amending this section]

shall take effect July 1, 1951."

-TRANS-

TRANSFER OF FUNCTIONS

Functions, powers, and duties of Secretary under subsec.

(a)(5)(A) of this section, insofar as relates to the prescription

of personnel standards on a merit basis, transferred to Office of

Personnel Management, see section 4728(a)(3)(D) of this title.

-MISC2-

DISREGARDING OF INCOME OF OASDI RECIPIENTS IN DETERMINING NEED FOR

PUBLIC ASSISTANCE

Section 306 of Pub. L. 92-603 provided that: "In addition to the

requirements imposed by law as a condition of approval of a State

plan to provide aid or assistance in the form of money payments to

individuals under title I, X, XIV, or XVI of the Social Security

Act [subchapter I, X, XIV, or XVI of this chapter], there is hereby

imposed the requirement (and the plan shall be deemed to require)

that, in the case of any individual receiving aid or assistance for

any month after October 1972, or, at the option of the State,

September 1972, and before January 1974 who also receives in such

month a monthly insurance benefit under title II of such Act

[subchapter II of this chapter] which was increased as a result of

the enactment of Public Law 92-336, the sum of the aid or

assistance received by him for such month, plus the monthly

insurance benefit received by him in such month (not including any

part of such benefit which is disregarded under such plan), shall

exceed the sum of the aid or assistance which would have been

received by him for such month under such plan as in effect for

October 1972, plus the monthly insurance benefit which would have

been received by him in such month, by an amount equal to $4 or (if

less) to such increase in his monthly insurance benefit under such

title II (whether such excess is brought about by disregarding a

portion of such monthly insurance benefit or otherwise)."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 304, 306, 1202, 1315,

1352, 4728 of this title; title 25 sections 683, 686, 689, 996.

-End-

-CITE-

42 USC Sec. 303 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 7 - SOCIAL SECURITY

SUBCHAPTER I - GRANTS TO STATES FOR OLD-AGE ASSISTANCE

-HEAD-

Sec. 303. Payments to States and certain territories; computation

of amount; eligibility of State to receive payment

-STATUTE-

(a) Computation of amounts

From the sums appropriated therefor, the Secretary of the

Treasury shall pay to each State which has a plan approved under

this subchapter, for each quarter, beginning with the quarter

commencing October 1, 1960 -

(1) Repealed. Pub. L. 97-35, title XXI, Sec. 2184(a)(4)(A),

Aug. 13, 1981, 95 Stat. 816.

(2) in the case of Puerto Rico, the Virgin Islands, and Guam,

an amount equal to one-half of the total of the sums expended

during such quarter as old-age assistance under the State plan,

not counting so much of any expenditure with respect to any month

as exceeds $37.50 multiplied by the total number of recipients of

old-age assistance for such month; plus

(3) Repealed. Pub. L. 97-35, title XXI, Sec. 2184(a)(4)(A),

Aug. 13, 1981, 95 Stat. 816.

(4) in the case of any State, an amount equal to 50 percent of

the total amounts expended during such quarter as found necessary

by the Secretary for the proper and efficient administration of

the State plan.

(b) Method of computing and paying amounts

The method of computing and paying such amounts shall be as

follows:

(1) The Secretary of Health and Human Services 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)

of this section, 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 the

State's proportionate share 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

Secretary of Health and Human Services may find necessary.

(2) The Secretary of Health and Human Services shall then

certify to the Secretary of the Treasury the amount so estimated

by the Secretary of Health and Human Services, (A) reduced or

increased, as the case may be, by any sum by which he finds that

his estimate for any prior quarter was greater or less than the

amount which should have been paid to the State under subsection

(a) of this section for such quarter, and (B) reduced by a sum

equivalent to the pro rata share to which the United States is

equitably entitled, as determined by the Secretary of Health and

Human Services, of the net amount recovered during any prior

quarter by the State or any political subdivision thereof with

respect to assistance furnished under the State plan; except that

such increases or reductions shall not be made to the extent that

such sums have been applied to make the amount certified for any

prior quarter greater or less than the amount estimated by the

Secretary of Health and Human Services for such prior quarter:

Provided, That any part of the amount recovered from the estate

of a deceased recipient which is not in excess of the amount

expended by the State or any political subdivision thereof for

the funeral expenses of the deceased shall not be considered as a

basis for reduction under clause (B) of this paragraph.

(3) The Secretary of the Treasury shall thereupon, through the

Fiscal Service 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 Health and Human

Services, the amount so certified.

-SOURCE-

(Aug. 14, 1935, ch. 531, title I, Sec. 3, 49 Stat. 621; Aug. 10,

1939, ch. 666, title I, Sec. 102, 53 Stat. 1361; 1940 Reorg. Plan

No. III, Sec. 1(a)(1), eff. June 30, 1940, 5 F.R. 2107, 54 Stat.

1231; Aug. 10, 1946, ch. 951, title V, Sec. 501, 60 Stat. 991; June

14, 1948, ch. 468, Sec. 3(a), 62 Stat. 439; Aug. 28, 1950, ch. 809,

title III, pt. 1, Sec. 302(a), pt. 6, Sec. 361(c), (d), 64 Stat.

548, 558; July 18, 1952, ch. 945, Sec. 8(a), 66 Stat. 778; 1953

Reorg. Plan No. 1, Secs. 5, 8, eff. Apr. 11, 1953, 18 F.R. 2053, 67

Stat. 631; Sept. 1, 1954, ch. 1206, title III, Sec. 303, 68 Stat.

1097; Aug. 1, 1956, ch. 836, title III, Secs. 301, 311(c), 341, 70

Stat. 846, 848, 852; Pub. L. 85-840, title V, Sec. 501, Aug. 28,

1958, 72 Stat. 1047; Pub. L. 86-778, title VI, Sec. 601(c), (d),

Sept. 13, 1960, 74 Stat. 989, 990; Pub. L. 87-31, Sec. 5(a), (b),

May 8, 1961, 75 Stat. 77; Pub. L. 87-64, title III, Sec. 303(a),

June 30, 1961, 75 Stat. 143; Pub. L. 87-543, title I, Secs.

101(a)(1), (b)(1), 132(a), July 25, 1962, 76 Stat. 173, 179, 193;

Pub. L. 89-97, title I, Sec. 122, title II, Sec. 221(a)(4), title

IV, Sec. 401(a), July 30, 1965, 79 Stat. 353, 357, 414; Pub. L.

90-248, title II, Sec. 212(a), Jan. 2, 1968, 81 Stat. 897; Pub. L.

92-512, title III, Sec. 301(b), (d), Oct. 20, 1972, 86 Stat. 946,

947; Pub. L. 93-647, Secs. 3(e)(2), 5(a), Jan. 4, 1975, 88 Stat.

2349, 2350; Pub. L. 96-88, title V, Sec. 509(b), Oct. 17, 1979, 93

Stat. 695; Pub. L. 97-35, title XXI, Sec. 2184(a)(4), title XXIII,

Sec. 2353(a), Aug. 13, 1981, 95 Stat. 816, 871; Pub. L. 99-603,

title I, Sec. 121(b)(4), Nov. 6, 1986, 100 Stat. 3391; Pub. L.

103-66, title XIII, Sec. 13741(b), Aug. 10, 1993, 107 Stat. 663.)

-STATAMEND-

REPEAL OF SECTION

Pub. L. 92-603, title III, Sec. 303(a), (b), Oct. 30, 1972, 86

Stat. 1484, provided that this section is repealed effective Jan.

1, 1974, except with respect to Puerto Rico, Guam, and the Virgin

Islands.

-MISC1-

AMENDMENTS

1993 - Subsec. (a)(4). Pub. L. 103-66 substituted "50 percent of

the total amounts expended during such quarter as found necessary

by the Secretary for the proper and efficient administration of the

State plan." for "the sum of the following proportions of the total

amounts expended during such quarter as found necessary by the

Secretary of Health and Human Services for the proper and efficient

administration of the State plan -

"(A) 75 per centum of so much of such expenditures as are for

the training (including both short- and long-term training at

educational institutions through grants to such institutions or

by direct financial assistance to students enrolled in such

institutions) of personnel employed or preparing for employment

by the State agency or by the local agency administering the plan

in the political subdivision; plus

"(B) 100 percent of so much of such expenditures as are for the

costs of the implementation and operation of the immigration

status verification system described in section 1320b-7(d) of

this title; plus

"(C) one-half of the remainder of such expenditures."

1986 - Subsec. (a)(4)(B), (C). Pub. L. 99-603 added subpar. (B)

and redesignated former subpar. (B) as (C).

1981 - Subsec. (a)(1). Pub. L. 97-35, Sec. 2184(a)(4)(A), struck

out par. (1) which provided for computation of amount of payments

in case of any State other than Puerto Rico, the Virgin Islands,

and Guam.

Subsec. (a)(2). Pub. L. 97-35, Sec. 2184(a)(4)(B), amended par.

(2) generally, striking out provisions including as old-age

assistance under the State plan expenditures for premiums under

part B of subchapter XVIII of this chapter for individuals who are

recipients of money payments under such plan and other insurance

premiums for medical or any other type of remedial care and

increasing amount payable by larger of two specifically computable

amounts.

Subsec. (a)(3). Pub. L. 97-35, Sec. 2184(a)(4)(A), struck out

par. (3) which provided for payment, in the case of any State, of

an amount equal to the Federal medical percentage of total amounts

expended for each quarter as medical assistance for the aged under

the State plan, including expenditures for insurance premiums for

medical or any other type of remedial care or cost thereof.

Subsec. (a)(4). Pub. L. 97-35, Sec. 2353(a)(1)(A), substituted

provision making payments available to any State for provision

making payments available to any State whose State plan approved

under section 302 of this title meets the requirements of subsec.

(c)(1) of this section and "Secretary of Health and Human Services"

for "Secretary of Health, Education, and Welfare", inserted

provision including within the meaning of training both short and

long term training at educational institutions through grants to

such institutions or by direct financial assistance to students

enrolled in such institutions, and struck out provisions which

included in the computation of the amount payable services and

provisions which specified what services were includable.

Subsec. (a)(5). Pub. L. 97-35, Sec. 2353(a)(1)(B), struck out

par. (5) which provided payment, in the case of any State whose

State plan approved under section 302 of this title which did not

meet the requirements of subsec. (c)(1) of this section, of an

amount equal to one-half of the total of the sums expended during

such quarter as found necessary by the Secretary for the proper and

efficient administration of the State plan.

Subsec. (c). Pub. L. 97-35, Sec. 2353(a)(2), struck out subsec.

State to qualify for payments under subsec. (a)(4) of this section

and prescribed action to be taken by the Secretary upon failure of

the State to comply.

Subsec. (d). Pub. L. 97-35, Sec. 2184(a)(4)(C), struck out

subsec. (d) which provided that the amount determined for any State

for any quarter which is attributable to expenditures with respect

to patients in institutions for mental diseases be paid only to the

extent that the State makes a satisfactory showing that the total

expenditures in the State from Federal, State, and local sources

for mental health services under State and local public health and

public welfare programs for such quarter exceed the average of the

total expenditures in the State from such sources for such services

under such programs for each quarter of fiscal year ending June 30,

1965.

1975 - Subsec. (a). Pub. L. 93-647, Sec. 3(e)(2), struck out

"(subject to section 1320b of this title)" after "the Secretary of

the Treasury shall".

Subsec. (a)(4)(A)(iv). Pub. L. 93-647, Sec. 5(a), inserted

"(including both short- and long-term training at educational

institutions through grants to such institutions or by direct

financial assistance to students enrolled in such institutions)"

after "training".

1972 - Subsec. (a). Pub. L. 92-512, Sec. 301(d), substituted

"shall (subject to section 1320b of this title) pay" for "shall

pay" in text preceding par. (1).

Subsec. (a)(4)(E). Pub. L. 92-512, Sec. 301(b), substituted

"under conditions which shall be" for "subject to limitations".

1968 - Subsec. (a)(4)(D). Pub. L. 90-248 inserted ", except to

the extent specified by the Secretary" after "shall" in

introductory text to subpar. (D).

1965 - Subsec. (a)(1). Pub. L. 89-97, Secs. 122, 401(a), inserted

"premiums under part B of subchapter XVIII of this chapter for

individuals who are recipients of money payments under such plan

and other" after "expenditures for" in parenthetical phrase

appearing in so much of par. (1) as precedes cl. (A); and changed

first step of formula for determining Federal payments to States

with approved plans for old-age assistance under this subchapter,

contained in cl. (A), by providing Federal sharing in 31/37 ths of

first $37 of the average monthly assistance payment instead of

29/35 ths of first $35 of the average monthly assistance payment,

extended the application of the Federal percentage in second step

of formula to an additional $38 of the State's average payment,

restated formula for second and third steps by striking out cl. (C)

and combining such steps in cl. (B) and making provision therein to

give recognition to the State's expenditures for medical care

before applying the Federal percentage to remaining expenditures

for which Federal participation is available, respectively.

Subsec. (a)(2)(A). Pub. L. 89-97, Sec. 122, inserted "premiums

under part B of subchapter XVIII of this chapter for individuals

who are recipients of money payments under such plan and other"

after "expenditures for" in parenthetical phrase.

Subsec. (d). Pub. L. 89-97, Sec. 221(a)(4), added subsec. (d).

1962 - Subsec. (a)(1). Pub. L. 87-543, Sec. 132(a), substituted "

29/35 " and "$35" for "four-fifths" and "$31", respectively, in

subpar. (A), "$70" for "$66" in subpar. (B), and "$85" and "$70"

for "$81" and "$66", respectively, in subpar. (C).

Subsec. (a)(2). Pub. L. 87-543, Sec. 132(a), substituted "$37.50"

for "$35.50", in subpar. (A) and "$45" and "$37.50" for "$43" and

"$35.50", respectively, in subpar. (B).

Subsec. (a)(4). Pub. L. 87-543, Sec. 101(a)(1), (b)(1)(A),

inserted in opening provisions "whose State plan approved under

section 302 of this title meets the requirements of subsection (c)

of this section" after "any State", and substituted provisions

which increased the Federal share of expenses of administration of

State public assistance plans by providing quarterly payments of

the sum of 75 per centum of the quarterly expenses for certain

prescribed services to help attain and retain capability for

self-care, services likely to prevent or reduce dependency, and

services appropriate for individuals who were or are likely to

become applicants for or recipients of assistance and request such

services, and training of State or local public assistance

personnel administering such plans and one-half of other

administrative expenses for other services, permitted State health

or vocational rehabilitation or other appropriate State agencies to

furnish such services, except vocational rehabilitation services,

and required the determination of the portion of expenses covered

by the 75 and 50 per centum provisions in accordance with methods

and procedures permitted by the Secretary for former provisions

requiring quarterly payments of one-half of quarterly expenses of

administration of State plans, including staff services of State or

local public assistance agencies to applicants for and recipients

of old-age assistance to help them attain self-care.

Subsec. (a)(5). Pub. L. 87-543, Sec. 101(b)(1)(B), added par.

(5).

Subsec. (c). Pub. L. 87-543, Sec. 101(b)(1)(C), added subsec.

(c).

1961 - Subsec. (a)(1). Pub. L. 87-64, Sec. 303(a)(1), substituted

"$31" for "$30" in subpar. (A), "$66" for "$65" in subpar. (B), and

"$81" for "$80" and "$66" for "$65" in subpar. (C).

Pub. L. 87-31, Sec. 5(a), substituted "$80" and "$15" for "$77"

and "$12", respectively, in subpar. (C).

Subsec. (a)(2). Pub. L. 87-64, Sec. 303(a)(2), substituted

"$35.50" for "$35" in subpar. (A), and "$35.50" for "$35" and "$43"

for "$42.50" in subpar. (B).

Pub. L. 87-31, Sec. 5(b), substituted "$42.50" and "$7.50" for

"$41" and "$6", respectively, in subpar. (B).

1960 - Subsec. (a). Pub. L. 86-778, Sec. 601(c), added pars.

(1)(C), (2)(B), and (3).

Subsec. (b)(2). Pub. L. 86-778, Sec. 601(d), substituted

"assistance furnished under the State plan" for "old-age assistance

furnished under the State plan" in cl. (B).

1958 - Subsec. (a). Pub. L. 85-840 increased payments to the

States to four-fifths of the first $30 of the average monthly

payment per recipient, including assistance in the form of money

payments and in the form of medical or any other type of remedial

care, plus Federal percentage of the amount by which the

expenditures exceed the maximum which may be counted under cl. (A),

but excluding that part of the average monthly payment per

recipient in excess of $65, increased average monthly payment to

Puerto Rico and the Virgin Islands from $30 to $35, excluded Guam

from provisions which authorize an average monthly payment of $65

and included Guam within provisions which authorize an average

monthly payment of $35, and permitted the counting of individuals

with respect to whom expenditures were made as old-age assistance

in the form of medical or any other type of remedial care in

determining the total number of recipients.

1956 - Subsec. (a). Act Aug. 1, 1956, Sec. 301, substituted

"during such quarter as old-age assistance in the form of money

payments under the State plan" for "during such quarter as old-age

assistance under the State plan" in cls. (1) and (2), "who received

old-age assistance in the form of money payments for such month"

for "who received old-age assistance for such month" in par. (A) of

cl. (1), and inserted cl. (4).

Act Aug. 1, 1956, Sec. 311(c), struck out ", which shall be used

exclusively as old-age assistance," after "the Virgin Islands, an

amount" in cls. (1) and (2), and substituted "including services

which are provided by the staff of the State agency (or of the

local agency administering the State plan in the political

subdivision) to applicants for and recipients of old-age assistance

to help them attain self-care" for "which amount shall be used for

paying the costs of administering the State plan or for old-age

assistance, or both, and for no other purpose" in cl. (3).

Act Aug. 1, 1956, Sec. 341, substituted "October 1, 1956" for

"October 1, 1952", struck out ", which shall be used exclusively as

old-age assistance," after "the Virgin Islands, an amount", and

substituted "$60" for "$55", in cl. (1), substituted "the product

of $30" for "the product of $25" in par. (A) of cl. (1), and

"including services which are provided by the staff of the State

agency (or of the local agency administering the State plan in the

political subdivision) to applicants for and recipients of old-age

assistance to help them attain self-care" for "which amount shall

be used for paying the costs of administering the State plan or for

old-age assistance, or both, and for no other purpose" in cl. (3).

1954 - Subsec. (b). Act Sept. 1, 1954, Sec. 303(b), substituted

"subsection (a)" for "clause (1) of subsection (a)", wherever

appearing, substituted "such subsection" for "such clause" in par.

(1), and struck out "increased by five per centum" at end of par.

(3).

Subsec. (b)(1). Act Sept. 1, 1954, Sec. 303(a), substituted "the

State's proportionate share" for "one-half".

1952 - Subsec. (a). Act July 18, 1952, increased Federal share of

State's average monthly payment to four-fifths of the first $25

plus one-half of the remainder within individual maximums of $55,

and changed formulas for computing Federal share of public

assistance for Puerto Rico and Virgin Islands.

1950 - Act Aug. 28, 1950, substituted "Administrator" for

"Board", and "he", "him" or "his" for "it", or "its" wherever

appearing and in subsec. (a) changed basis for computation of

Federal portion of old-age assistance.

1948 - Subsec. (a). Act June 14, 1948, substituted $50 for $45

and $20 for $15.

1946 - Subsec. (a). Act Aug. 10, 1946, Sec. 501(a), temporarily

increased maximum monthly State expenditure for an individual to

which Federal Government will contribute from $40 to $45, increased

Federal contribution for assistance from one-half the State's

expenditure to two-thirds the State's expenditure up to $15 monthly

per individual plus one-half the State's expenditure over $15 and

changed the Federal contribution for administration from 5 percent

of Federal contribution for assistance to one-half the State

expenditure for administration. See Effective and Termination Date

of 1946 Amendment note below.

Subsec. (b). Act Aug. 10, 1946, Sec. 501(b), temporarily changed

references to cl. (1) of subsec. (a) to refer to entire subsection,

substituted "the State's proportionate share" for "one-half" in

par. (1) and struck out "increased by 5 per centum" at end of par.

(3). See Effective and Termination Date of 1986 Amendment note

below.

1939 - Act Aug. 10, 1939, amended section generally, including

substitution of $40 for $30 in subsec. (a).

EFFECTIVE DATE OF 1993 AMENDMENT

Section 13741(c) of Pub. L. 103-66 provided that:

"(1) In general. - Except as provided in paragraph (2) of this

subsection, the amendments made by subsections (a) and (b)

[amending this section and sections 603, 1203, and 1353 of this

title and provisions set out as a note under section 1383 of this

title] shall be effective with respect to calendar quarters

beginning on or after April 1, 1994.

"(2) Special rule. - In the case of a State whose legislature

meets biennially, and does not have a regular session scheduled in

calendar year 1994, the amendments made by subsections (a) and (b)

shall be effective no later than the first day of the first

calendar quarter beginning after the close of the first regular

session of the State legislature that begins after the date of

enactment of this Act [Aug. 10, 1993]."

EFFECTIVE DATE OF 1986 AMENDMENT

Amendment by Pub. L. 99-603 effective Oct. 1, 1987, see section

121(c)(2) of Pub. L. 99-603, set out as a note under section 502 of

this title.

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by section 2353(a) of Pub. L. 97-35 effective, except

as otherwise specifically provided, Oct. 1, 1981, see section 2354

of Pub. L. 97-35, set out as a note under section 1397 of this

title.

EFFECTIVE DATE OF 1975 AMENDMENT

Section 7 of Pub. L. 93-647, as amended by Pub. L. 94-120, Sec.

3, Oct. 21, 1975, 89 Stat. 609; Pub. L. 94-401, Sec. 2, Sept. 7,

1976, 90 Stat. 1215, eff. Feb. 1, 1976; Pub. L. 95-171, Sec. 1(d),

Nov. 12, 1977, 91 Stat. 1353; eff. Oct. 1, 1977, provided that:

"(a)(1) The amendments made by sections 2 and 5 of this Act

[enacting sections 1397 to 1397f of this title and amending this

section, sections 603, 1203, and 1353 of this title, and provisions

set out as a note under section 1383 of this title] shall be

effective with respect to payments for quarters commencing after

September 30, 1975.

"(2) Notwithstanding the provisions of section 2004 of the Social

Security Act, as amended by this Act [section 1397c of this title],

the first services program year of each State shall begin on

October 1, 1975, and end with the close of, at the option of the

State -

"(A) the day in the twelve-month period beginning October 1,

1975, or

"(B) the day in the twelve-month period beginning October 1,

1976,

which is the last day of the twelve-month period established by the

State as its services program year under that section.

Notwithstanding the provisions of subsection (b) of section 2003 of

the Social Security Act, as amended by this Act [section 1397b(b)

of this title], the aggregate expenditures required by that

subsection with respect to the first services program year of each

State shall be the amount which bears the same ratio to the amount

that would otherwise be required under that subsection as the

number of months in the State's first services program year bears

to twelve.

"(3) Notwithstanding paragraph (1) of this subsection or section

3(f) [set out as a note under section 1397a of this title],

payments under title IV [subchapter IV of this chapter] or section

2002(a)(1) of the Social Security Act [section 1397a(a)(1) of this

title] with respect to expenditures made prior to October 1, 1978,

in connection with the provision of child day care services in day

care centers and group day care homes, in the case of children

between the ages of six weeks and six years, may be made without

regard to the requirements relating to staffing standards which are

imposed by or under section 2002(a)(9)(A)(ii) of such Act [section

1397a(a)(9)(A)(ii) of this title], so long as the staffing

standards actually being applied in the provision of the services

involved (A) comply with applicable State law (as in effect at the

time the services are provided), (B) are no lower than the

corresponding staffing standards which were imposed or required by

applicable State law on September 15, 1975, and (C) are no lower,

in the case of any day care center or group day care home, than the

corresponding standards actually being applied in such center or

home on September 15, 1975.

"(b) The amendments made by section 3 of this Act [amending this

section and sections 602, 603, 606, 622, 1203, 1308, 1315, 1316,

1320b note, and 1383 note of this title, repealing sections 801 to

805 and 1320b of this title, and enacting provisions set out as

notes under section 1320b and 1397a of this title] shall be

effective with respect to payments under sections 403 and 603 of

the Social Security Act [sections 603 and 803 of this title] for

quarters commencing after September 30, 1975, except that the

amendments made by section 3(a) [amending sections 602, 603, 606,

and 623 of this title] shall not be effective with respect to the

Commonwealth of Puerto Rico, the Virgin Islands, or Guam."

EFFECTIVE DATE OF 1972 AMENDMENT

Section 301(e) of Pub. L. 92-512 provided that: "The amendments

made by this section (other than by subsection (b)) [enacting

section 1320b of this title and amending this section and sections

603, 1203, 1253, and 1383] shall be effective July 1, 1972, and the

amendments made by subsection (b) [amending this section and

sections 603, 1203, 1353, and 1383 of this title] shall be

effective January 1, 1973."

EFFECTIVE DATE OF 1968 AMENDMENT

Section 212(e) of Pub. L. 90-248 provided that: "The amendments

made by the preceding subsections of this section [amending this

section and sections 1203, 1353, and 1383 of this title] shall take

effect January 1, 1968."

EFFECTIVE DATE OF 1965 AMENDMENT

Amendment by section 221 of Pub. L. 89-97 applicable in the case

of expenditures made after Dec. 31, 1965, under a State plan

approved under this subchapter, see section 221(e) of Pub. L.

89-97, set out as a note under section 302 of this title.

Section 401(f) of Pub. L. 89-97 provided that: "The amendments

made by this section [amending this section and sections 603, 1203,

1353, and 1383 of this title] shall apply in the case of

expenditures made after December 31, 1965, under a State plan

approved under title I, IV, X, XIV, or XVI of the Social Security

Act [subchapter I, IV, X, XIV, or XVI of this chapter]."

EFFECTIVE DATE OF 1962 AMENDMENT

Section 202(d) of Pub. L. 87-543 provided that: "The amendments

made by sections 109 and 132 (other than subsections (d) and (e)

thereof) [amending this section and sections 606, 1203, and 1353 of

this title] shall be applicable in the case of expenditures, under

a State plan approved under title I, IV, X, or XIV of the Social

Security Act [subchapter I, IV, X, or XIV of this chapter], as the

case may be, made after September 30, 1962."

Section 202(f) of Pub. L. 87-543 provided that: "The amendments

made by section 101(a) [amending this section and sections 603,

1203, and 1353 of this title] shall be applicable in the case of

expenditures, under a State plan approved under title I, IV, X, or

XIV of the Social Security Act [subchapter I, IV, X, or XIV of this

chapter], as the case may be, made after August 31, 1962. The

amendments made by section 101(b) [amending this section and

sections 603, 608, 609, 1203, and 1353 of this title] shall be

applicable in the case of expenditures, under a State plan approved

under title I, IV, X, or XIV of the Social Security Act, as the

case may be, made after June 30, 1963."

EFFECTIVE DATE OF 1961 AMENDMENTS

Section 303(e) of Pub. L. 87-64, as amended by Pub. L. 87-543,

title I, Sec. 132(e), provided that: "The amendments made by

subsections (a), (b), and (c) of this section [amending this

section and sections 1203 and 1353 of this title] shall apply only

in the case of expenditures made after September 30, 1961, and

before October 1, 1962, under a State plan approved under title I,

X, or XIV, as the case may be, of the Social Security Act

[subchapter I, X, or XIV of this chapter]."

Section 5(c) of Pub. L. 87-31 provided that: "The amendments made

by subsections (a) and (b) [amending this section] shall apply in

the case of expenditures made after June 30, 1961, under a State

plan approved under title I of the Social Security Act [this

subchapter]."

EFFECTIVE DATE OF 1960 AMENDMENT

Amendment by Pub. L. 86-778 effective Oct. 1, 1960, see section

604 of Pub. L. 86-778, set out as a note under section 301 of this

title.

EFFECTIVE DATE OF 1958 AMENDMENT

Section 512 of Pub. L. 85-840 provided that: "Notwithstanding the

provisions of sections 305 and 345 of the Social Security

Amendments of 1956, as amended [set out as notes below], the

amendments made by sections 501, 502, 503, 504, 505, and 506

[amending this section and sections 603, 1203, 1301, and 1353 of

this title] shall be effective -

"(1) in the case of money payments, under a State plan approved

under title I, IV, X, or XIV of the Social Security Act

[subchapter I, IV, X, or XIV of this chapter], for months after

September 1958, and

"(2) in the case of assistance in the form of medical or any

other type of remedial care, under such a plan, with respect to

expenditures made after September 1958.

The amendment made by section 506 [amending section 1301 of this

title] shall also become effective, for purposes of title V of the

Social Security Act [subchapter V of this chapter], for fiscal

years ending after June 30, 1959. The amendments made by section

507 [amending section 1308 of this title] shall be effective for

fiscal years ending after June 30, 1958. The amendment made by

section 508 [amending section 1304 of this title] shall be

effective for fiscal years ending after June 30, 1959. The

amendment made by section 510 shall become effective October 1,

1958."

EFFECTIVE AND TERMINATION DATE OF 1956 AMENDMENT

Section 345 of act Aug. 1, 1956, provided that: "The amendments

made by this part [part V (Secs. 341-345) of title III of act Aug.

1, 1956, amending this section and sections 603, 1203, and 1353 of

this title] shall be effective for the period beginning October 1,

1956, and ending with the close of June 30, 1959, and after such

amendments cease to be in effect any provision of law amended

thereby shall be in full force and effect as though this part had

not been enacted."

EFFECTIVE DATE OF 1956 AMENDMENT

Section 305 of act Aug. 1, 1956, as amended by Pub. L. 85-110,

July 17, 1957, 71 Stat. 308, provided that:

"(a) Except as provided in subsection (b), the amendments made by

this part [part I (Secs. 301-305) of title III of act Aug. 1, 1956,

amending this section and sections 603, 1203, and 1353 of this

title] shall become effective July 1, 1957.

"(b) The amendments made by any section of this part shall not

apply to any State (as defined in section 1101 of the Social

Security Act [section 1301 of this title] for purposes of title I

thereof [subchapter I of this chapter]) for any fiscal year for

which there is in effect an election by it not to have the

amendments made by such section apply to it. Any such election

shall be in effect for a fiscal year only if notice of the election

has been filed with the Secretary of Health, Education, and Welfare

at some time prior to May 16 of the preceding fiscal year, except

that any such election shall be in effect for the fiscal year

beginning July 1, 1957, if notice of the election is filed with the

Secretary prior to August 1, 1957. An election by a State under

this subsection shall continue in effect until the close of any

fiscal year designated in a notice of termination of such election

which is filed with the Secretary of Health, Education, and Welfare

prior to May 16 of such year. Elections hereunder shall be made,

and notices thereof and notices of termination shall be filed, on

such form or forms and in such manner as the Secretary of Health,

Education, and Welfare may prescribe."

EFFECTIVE AND TERMINATION DATE OF 1952 AMENDMENT

Section 8(e) of act July 18, 1952, as amended by act Sept. 1,

1954, title III, Sec. 301, provided that: "The amendments made by

this section [amending this section and sections 603, 1203, and

1353 of this title] shall be effective for the period beginning

October 1, 1952, and ending with the close of September 30, 1956,

and after such amendments cease to be in effect any provision of

law amended thereby shall be in full force and effect as though

this Act [July 18, 1952] had not been enacted."

EFFECTIVE DATE OF 1950 AMENDMENT

Section 302(b) of act Aug. 28, 1950, provided that: "The

amendment made by subsection (a) [amending this section] shall take

effect October 1, 1950."

EFFECTIVE DATE OF 1948 AMENDMENT

Section 3(d) of act June 14, 1948, provided that: "The amendments

made by this section [amending this section and sections 603 and

1203 of this title] shall become effective on October 1, 1948."

EFFECTIVE AND TERMINATION DATE OF 1946 AMENDMENT

Section 504 of act Aug. 10, 1946, as amended by act Aug. 6, 1947,

ch. 510, Sec. 3, 61 Stat. 794, provided that: "Sections 501, 502,

and 503 [amending this section and sections 603 and 1203 of this

title] shall be effective with respect to the period commencing

October 1, 1946, and ending on June 30, 1950."

EFFECTIVE DATE OF 1939 AMENDMENT

Section 102 of act Aug. 10, 1939, provided that the amendment

made by that section is effective Jan. 1, 1940.

-TRANS-

TRANSFER OF FUNCTIONS

Functions of Federal Security Administrator transferred to

Secretary of Health, Education, and Welfare and all agencies of

Federal Security Agency transferred to Department of Health,

Education, and Welfare by section 5 of Reorg. Plan No. 1 of 1953,

set out as a note under section 3501 of this title. Federal

Security Agency and office of Administrator abolished by section 8

of Reorg. Plan No. 1 of 1953. Secretary and Department of Health,

Education, and Welfare redesignated Secretary and Department of

Health and Human Services by section 509(b) of Pub. L. 96-88 which

is classified to section 3508(b) of Title 20, Education.

"Fiscal Service" substituted for "Division of Disbursement" in

subsec. (b)(3) on authority of section 1(a)(1) of Reorg. Plan No.

III of 1940, eff. June 30, 1940, 5 F.R. 2107, 54 Stat. 1231, set

out in the Appendix to Title 5, Government Organization and

Employees, which consolidated such division into Fiscal Service of

Treasury Department. See section 306 of Title 31, Money and

Finance.

-MISC2-

NONDUPLICATION OF PAYMENTS TO STATES: PROHIBITION OF PAYMENTS AFTER

DECEMBER 31, 1969

Prohibition of payments under this subchapter to States with

respect to aid or assistance in form of medical or other type of

remedial care for any period for which States received payments

under subchapter XIX of this chapter or for any period after Dec.

31, 1969, see section 121(b) of Pub. L. 89-97, set out as a note

under section 1396b of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1306a, 1315, 1318, 1319,

1396a of this title.

-End-

-CITE-

42 USC Sec. 304 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 7 - SOCIAL SECURITY

SUBCHAPTER I - GRANTS TO STATES FOR OLD-AGE ASSISTANCE

-HEAD-

Sec. 304. Stopping payment on deviation from required provisions of

plan or failure to comply therewith

-STATUTE-

In the case of any State plan which has been approved under this

subchapter by the Secretary, if the Secretary, 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

302(b) of this title, 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

302(a) of this title to be included in the plan;

the Secretary shall notify such State agency that further payments

will not be made to the State (or, in his discretion, that payments

will be limited to categories under or parts of the State plan not

affected by such failure) until the Secretary is satisfied that

such prohibited requirement is no longer so imposed, and that there

is no longer any such failure to comply. Until he is so satisfied

he shall make no further payments to such State (or shall limit

payments to categories under or parts of the State plan not

affected by such failure).

-SOURCE-

(Aug. 14, 1935, ch. 531, title I, Sec. 4, 49 Stat. 622; Aug. 28,

1950, ch. 809, title III, pt. 6, Sec. 361(c), (d), 64 Stat. 558;

1953 Reorg. Plan No. 1, Secs. 5, 8, eff. Apr. 11, 1953, 18 F.R.

2053, 67 Stat. 631; Pub. L. 86-778, title VI, Sec. 601(e), Sept.

13, 1960, 74 Stat. 991; Pub. L. 90-248, title II, Sec. 245, Jan. 2,

1968, 81 Stat. 918; Pub. L. 96-88, title V, Sec. 509(b), Oct. 17,

1979, 93 Stat. 695.)

-STATAMEND-

REPEAL OF SECTION

Pub. L. 92-603, title III, Sec. 303(a), (b), Oct. 30, 1972, 86

Stat. 1484, provided that this section is repealed effective Jan.

1, 1974, except with respect to Puerto Rico, Guam, and the Virgin

Islands.

-MISC1-

AMENDMENTS

1968 - Pub. L. 90-248 inserted "(or, in his discretion, that

payments will be limited to categories under or parts of the State

plan not affected by such failure)" after "further payments will

not be made to the State" and substituted in last sentence "further

payments to such State (or shall limit payments to categories under

or parts of the State plan not affected by such failure)" for

"further certification to the Secretary of the Treasury with

respect to such State".

1960 - Pub. L. 86-778 substituted "State plan which has been

approved under this subchapter" for "State plan for old-age

assistance which has been approved".

1950 - Act Aug. 28, 1950, substituted "Administrator" for

"Board", and "he", "him", or "his" for "it", or "its", wherever

appearing.

EFFECTIVE DATE OF 1960 AMENDMENT

Amendment by Pub. L. 86-778 effective Oct. 1, 1960, see section

604 of Pub. L. 86-778, set out as a note under section 301 of this

title.

-TRANS-

TRANSFER OF FUNCTIONS

Functions of Federal Security Administrator transferred to

Secretary of Health, Education, and Welfare and all agencies of

Federal Security Agency transferred to Department of Health,

Education, and Welfare by section 5 of Reorg. Plan No. 1 of 1953,

set out as a note under section 3501 of this title. Federal

Security Agency and office of Administrator abolished by section 8

of Reorg. Plan No. 1 of 1953. Secretary and Department of Health,

Education, and Welfare redesignated Secretary and Department of

Health and Human Services by section 509(b) of Pub. L. 96-88 which

is classified to section 3508(b) of Title 20, Education.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1316 of this title.

-End-

-CITE-

42 USC Sec. 305 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 7 - SOCIAL SECURITY

SUBCHAPTER I - GRANTS TO STATES FOR OLD-AGE ASSISTANCE

-HEAD-

Sec. 305. Omitted

-COD-

CODIFICATION

Section, act Aug. 14, 1935, ch. 531, title I, Sec. 5, 49 Stat.

622, made an appropriation for the fiscal year ending June 30,

1936.

-End-

-CITE-

42 USC Sec. 306 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 7 - SOCIAL SECURITY

SUBCHAPTER I - GRANTS TO STATES FOR OLD-AGE ASSISTANCE

-HEAD-

Sec. 306. Definitions

-STATUTE-

(a) For the purposes of this subchapter, the term "old-age

assistance" means money payments to, or (if provided in or after

the third month before the month in which the recipient makes

application for assistance) medical care in behalf of or any type

of remedial care recognized under State law in behalf of, needy

individuals who are 65 years of age or older, but does not include

any such payments to or care in behalf of any individual who is an

inmate of a public institution (except as a patient in a medical

institution). Such term also includes payments which are not

included within the meaning of such term under the preceding

sentence, but which would be so included except that they are made

on behalf of such a needy individual to another individual who (as

determined in accordance with standards prescribed by the

Secretary) is interested in or concerned with the welfare of such

needy individual, but only with respect to a State whose State plan

approved under section 302 of this title includes provision for -

(1) determination by the State agency that such needy

individual has, by reason of his physical or mental condition,

such inability to manage funds that making payments to him would

be contrary to his welfare and, therefore, it is necessary to

provide such assistance through payments described in this

sentence;

(2) making such payments only in cases in which such payments

will, under the rules otherwise applicable under the State plan

for determining need and the amount of old-age assistance to be

paid (and in conjunction with other income and resources), meet

all the need of the individuals with respect to whom such

payments are made;

(3) undertaking and continuing special efforts to protect the

welfare of such individual and to improve, to the extent

possible, his capacity for self-care and to manage funds;

(4) periodic review by such State agency of the determination

under paragraph (1) of this subsection to ascertain whether

conditions justifying such determination still exist, with

provision for termination of such payments if they do not and for

seeking judicial appointment of a guardian or other legal

representative, as described in section 1311 of this title, if

and when it appears that such action will best serve the

interests of such needy individual; and

(5) opportunity for a fair hearing before the State agency on

the determination referred to in paragraph (1) of this subsection

for any individual with respect to whom it is made.

At the option of a State (if its plan approved under this

subchapter so provides), such term (i) need not include money

payments to an individual who has been absent from such State for a

period in excess of 90 consecutive days (regardless of whether he

has maintained his residence in such State during such period)

until he has been present in such State for 30 consecutive days in

the case of such an individual who has maintained his residence in

such State during such period or 90 consecutive days in the case of

any other such individual, and (ii) may include rent payments made

directly to a public housing agency on behalf of a recipient or a

group or groups of recipients of assistance under such plan.

(b), (c) Repealed. Pub. L. 97-35, title XXI, Sec. 2184(a)(5),

Aug. 13, 1981, 95 Stat. 817.

-SOURCE-

(Aug. 14, 1935, ch. 531, title I, Sec. 6, 49 Stat. 622; Aug. 10,

1939, ch. 666, title I, Sec. 103, 53 Stat. 1362; Aug. 28, 1950, ch.

809, title III, pt. 1, Sec. 303(a), 64 Stat. 549; Pub. L. 86-778,

title VI, Sec. 601(f), Sept. 13, 1960, 74 Stat. 991; Pub. L.

87-543, title I, Sec. 156(a), July 25, 1962, 76 Stat. 207; Pub. L.

89-97, title II, Secs. 221(a)(1), (2), 222(a), title IV, Sec.

402(a), July 30, 1965, 79 Stat. 356, 360, 415; Pub. L. 92-603,

title IV, Secs. 408(a), 409(a), Oct. 30, 1972, 86 Stat. 1489, 1490;

Pub. L. 97-35, title XXI, Sec. 2184(a)(5), Aug. 13, 1981, 95 Stat.

817.)

-STATAMEND-

REPEAL OF SECTION

Pub. L. 92-603, title III, Sec. 303(a), (b), Oct. 30, 1972, 86

Stat. 1484, provided that this section is repealed effective Jan.

1, 1974, except with respect to Puerto Rico, Guam, and the Virgin

Islands.

-MISC1-

AMENDMENTS

1981 - Subsecs. (b), (c). Pub. L. 97-35 struck out subsecs. (b)

and (c) which defined "medical assistance for the aged" and

"Federal medical percentage", respectively.

1972 - Subsec. (a). Pub. L. 92-603 authorized the State, at its

option, to include within term "old-age assistance" provisions

relating to money payments to an individual absent from such State

for more than 90 consecutive days, and provisions relating to rent

payments made directly to a public housing agency.

1965 - Subsec. (a). Pub. L. 89-97, Sec. 221(a)(1), struck out

from definition of "old-age assistance" the exclusion of (1)

payments to or medical care in behalf of any individual who is a

patient in an institution for tuberculosis or mental diseases, or

(2) payments to any individual who has been diagnosed as having

tuberculosis or psychosis and is a patient in a medical institution

as a result thereof, or (3) medical care in behalf of any

individual, who is a patient in a medical institution as a result

of a diagnosis that he has tuberculosis or psychosis, with respect

to any period after the individual has been a patient in such an

institution, as a result of such diagnosis, for forty-two days.

Pub. L. 89-97, Sec. 402(a), extended definition of "old-age

assistance" to include payments made on behalf of the recipient to

an individual who (as determined in accordance with the standards

prescribed by the Secretary) is interested in or concerned with the

welfare of the recipient and inserted an enumeration of the five

characteristics required of State plans under which such payments

can be made, including provision for finding of inability to manage

funds, payment to meet all needs, special efforts to protect

welfare, periodic review, and opportunity for fair hearing.

Subsec. (b). Pub. L. 89-97, Secs. 221(a)(2), 222(a), struck out

from provision at end of cl. (12) excluding certain payments from

definition of "medical assistance for the aged" payments with

respect to care or services for any individual who is a patient in

an institution for tuberculosis or mental diseases or for any

individual who is a patient in a medical institution as a result of

a diagnosis of tuberculosis or psychosis, with respect to any

period after the individual has been a patient in such an

institution, for forty-two days and inserted in text preceding cl.

(1) "(except, for any month, for recipients of old-age assistance

who are admitted to or discharged from a medical institution during

such month)" after "who are not recipients of old-age assistance",

respectively.

1962 - Subsec. (a). Pub. L. 87-543, Sec. 156(a)(1), inserted "(if

provided in or after the third month before the month in which the

recipient makes application for assistance)" before "medical care".

Subsec. (b). Pub. L. 87-543, Sec. 156(a)(2), inserted "(if

provided in or after the third month before the month in which the

recipient makes application for assistance)" after "care and

services".

1960 - Subsec. (a). Pub. L. 86-778, Sec. 601(f)(1), (2),

designated existing provisions as subsec. (a) and inserted

provisions excluding from definition of "old-age assistance" any

care in behalf of any individual, who is a patient in a medical

institution as a result of a diagnosis that he has tuberculosis or

psychosis, with respect to any period after the individual has been

a patient in an institution, as a result of such diagnosis, for

forty-two days.

Subsecs. (b), (c). Pub. L. 86-778, Sec. 601(f)(2), added subsecs.

(b) and (c).

1950 - Act Aug. 28, 1950, redefined "old-age assistance".

1939 - Act Aug. 10, 1939, inserted "needy" before "individuals

who".

EFFECTIVE DATE OF 1965 AMENDMENT

Amendment by section 221 of Pub. L. 89-97 applicable in the case

of expenditures made after Dec. 31, 1965, under a State plan

approved under this subchapter, see section 221(e) of Pub. L.

89-97, set out as a note under section 302 of this title.

Section 222(c) of Pub. L. 89-97 provided that: "The amendments

made by this section [amending this section and section 1385 of

this title] shall apply in the case of expenditures under a State

plan approved under title I or XVI of the Social Security Act

[subchapter I or XVI of this chapter] with respect to care and

services provided under such plan after June 1965."

Section 402(e) of Pub. L. 89-97 provided that: "The amendments

made by this section [amending this section and sections 1206,

1355, and 1385 of this title] shall apply in the case of

expenditures made after December 31, 1965, under a State plan

approved under title I, X, XIV or XVI of the Social Security Act

[subchapter I, X, XIV, or XVI of this chapter]."

EFFECTIVE DATE OF 1962 AMENDMENT

Section 156(e) of Pub. L. 87-543 provided that: "The amendments

made by this section [amending this section and sections 606, 1206,

and 1355 of this title] shall apply in the case of applications

made after September 30, 1962, under a State plan approved under

title I, IV, X, or XIV of the Social Security Act [subchapter I,

IV, X, or XIV of this chapter]."

EFFECTIVE DATE OF 1960 AMENDMENT

Amendment by Pub. L. 86-778 effective Oct. 1, 1960, see section

604 of Pub. L. 86-778, set out as a note under section 301 of this

title.

EFFECTIVE DATE OF 1950 AMENDMENT

Section 303(b) of act Aug. 28, 1950, provided that: "The

amendment made by subsection (a) [amending this section] shall take

effect October 1, 1950, except that the exclusion of money payments

to needy individuals described in clause (a) or (b) of section 6 of

the Social Security Act as so amended [clauses (a) or (b) of this

section] shall, in the case of any of such individuals who are not

patients in a public institution, be effective July 1, 1952."

-End-

-CITE-

42 USC SUBCHAPTER II - FEDERAL OLD-AGE, SURVIVORS, AND

DISABILITY INSURANCE BENEFITS 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 7 - SOCIAL SECURITY

SUBCHAPTER II - FEDERAL OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE

BENEFITS

-HEAD-

SUBCHAPTER II - FEDERAL OLD-AGE, SURVIVORS, AND DISABILITY

INSURANCE BENEFITS

-MISC1-

AMENDMENTS

1956 - Act Aug. 1, 1956, ch. 836, title I, Sec. 103(i), 70 Stat.

824, included disability insurance benefits in subchapter heading.

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in sections 300bb-2, 300bb-6, 659,

664, 901, 903, 907a, 909, 1007, 1008, 1306b, 1310, 1320a-6,

1320a-7, 1320a-7a, 1320a-8, 1320a-8a, 1320b-1, 1320b-6, 1320b-7,

1320b-10, 1320b-13, 1320b-14, 1320b-17, 1320b-18, 1320b-19,

1320b-20, 1320b-21, 1320b-22, 1320c-4, 1382, 1382b, 1382c, 1382f,

1382h, 1383, 1383b, 1383c, 1395c, 1395i-2, 1395v, 1395gg, 1395ii,

1395oo, 1395ww, 1396a, 1396d, 1396q, 3020e-1, 5055, 11201, 11291 of

this title; title 2 sections 632, 641, 658a, 905, 1503; title 5

sections 8116, 8141, 8311, 8334, 8349, 8401, 8421, 8442, 8443;

title 7 sections 2012, 2014; title 8 sections 1183a, 1611, 1612,

1622, 1631, 1645; title 10 section 1451; title 12 section 3413;

title 14 section 707; title 19 section 2291; title 22 sections

3310, 4045, 4046, 4071b; title 26 sections 22, 86, 401, 404, 411,

412, 416, 1402, 2032A, 3121, 4980B, 6402; title 29 sections 206,

623, 722, 762a, 772, 1026, 1054, 1056, 1082, 1147, 1162, 1166,

1322, 2897; title 30 sections 922, 923; title 31 sections 3716,

3720A, 3803, 3806; title 38 sections 1103, 1303, 1312, 1315, 1562,

5105, 5312; title 45 sections 231a, 231b, 231c, 231d, 231e, 231f,

231i, 231n, 231r, 354; title 49 section 5307; title 50 sections

2021, 2151; title 50 App. section 36.

-End-

-CITE-

42 USC Sec. 401 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 7 - SOCIAL SECURITY

SUBCHAPTER II - FEDERAL OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE

BENEFITS

-HEAD-

Sec. 401. Trust Funds

-STATUTE-

(a) Federal Old-Age and Survivors Insurance Trust Fund

There is hereby created on the books of the Treasury of the

United States a trust fund to be known as the "Federal Old-Age and

Survivors Insurance Trust Fund". The Federal Old-Age and Survivors

Insurance Trust Fund shall consist of the securities held by the

Secretary of the Treasury for the Old-Age Reserve Account and the

amount standing to the credit of the Old-Age Reserve Account on the

books of the Treasury on January 1, 1940, which securities and

amount the Secretary of the Treasury is authorized and directed to

transfer to the Federal Old-Age and Survivors Insurance Trust Fund,

and, in addition, such gifts and bequests as may be made as

provided in subsection (i)(1) of this section, and such amounts as

may be appropriated to, or deposited in, the Federal Old-Age and

Survivors Insurance Trust Fund as hereinafter provided. There is

hereby appropriated to the Federal Old-Age and Survivors Insurance

Trust Fund for the fiscal year ending June 30, 1941, and for each

fiscal year thereafter, out of any moneys in the Treasury not

otherwise appropriated, amounts equivalent to 100 per centum of -

(1) the taxes (including interest, penalties, and additions to

the taxes) received under subchapter A of chapter 9 of the

Internal Revenue Code of 1939 (and covered into the Treasury)

which are deposited into the Treasury by collectors of internal

revenue before January 1, 1951; and

(2) the taxes certified each month by the Commissioner of

Internal Revenue as taxes received under subchapter A of chapter

9 of such Code which are deposited into the Treasury by

collectors of internal revenue after December 31, 1950, and

before January 1, 1953, with respect to assessments of such taxes

made before January 1, 1951; and

(3) the taxes imposed by subchapter A of chapter 9 of such Code

with respect to wages (as defined in section 1426 of such Code),

and by chapter 21 (other than sections 3101(b) and 3111(b)) of

the Internal Revenue Code of 1954 with respect to wages (as

defined in section 3121 of such Code) reported to the

Commissioner of Internal Revenue pursuant to section 1420(c) of

the Internal Revenue Code of 1939 after December 31, 1950, or to

the Secretary of the Treasury or his delegates pursuant to

subtitle F of the Internal Revenue Code of 1954 after December

31, 1954, as determined by the Secretary of the Treasury by

applying the applicable rates of tax under such subchapter or

chapter 21 (other than sections 3101(b) and 3111(b)) to such

wages, which wages shall be certified by the Commissioner of

Social Security on the basis of the records of wages established

and maintained by such Commissioner in accordance with such

reports, less the amounts specified in clause (1) of subsection

(b) of this section; and

(4) the taxes imposed by subchapter E of chapter 1 of the

Internal Revenue Code of 1939, with respect to self-employment

income (as defined in section 481 of such Code), and by chapter 2

(other than section 1401(b)) of the Internal Revenue Code of 1954

with respect to self-employment income (as defined in section

1402 of such Code) reported to the Commissioner of Internal

Revenue on tax returns under such subchapter or to the Secretary

of the Treasury or his delegate on tax returns under subtitle F

of such Code, as determined by the Secretary of the Treasury by

applying the applicable rate of tax under such subchapter or

chapter (other than section 1401(b)) to such self-employment

income, which self-employment income shall be certified by the

Commissioner of Social Security on the basis of the records of

self-employment income established and maintained by the

Commissioner of Social Security in accordance with such returns,

less the amounts specified in clause (2) of subsection (b) of

this section.

The amounts appropriated by clauses (3) and (4) of this subsection

shall be transferred from time to time from the general fund in the

Treasury to the Federal Old-Age and Survivors Insurance Trust Fund,

and the amounts appropriated by clauses (1) and (2) of subsection

(b) of this section shall be transferred from time to time from the

general fund in the Treasury to the Federal Disability Insurance

Trust Fund, such amounts to be determined on the basis of estimates

by the Secretary of the Treasury of the taxes, specified in clauses

(3) and (4) of this subsection, paid to or deposited into the

Treasury; and proper adjustments shall be made in amounts

subsequently transferred to the extent prior estimates were in

excess of or were less than the taxes specified in such clauses (3)

and (4) of this subsection. All amounts transferred to either Trust

Fund under the preceding sentence shall be invested by the Managing

Trustee in the same manner and to the same extent as the other

assets of such Trust Fund. Notwithstanding the preceding sentence,

in any case in which the Secretary of the Treasury determines that

the assets of either such Trust Fund would otherwise be inadequate

to meet such Fund's obligations for any month, the Secretary of the

Treasury shall transfer to such Trust Fund on the first day of such

month the amount which would have been transferred to such Fund

under this section as in effect on October 1, 1990; and such Trust

Fund shall pay interest to the general fund on the amount so

transferred on the first day of any month at a rate (calculated on

a daily basis, and applied against the difference between the

amount so transferred on such first day and the amount which would

have been transferred to the Trust Fund up to that day under the

procedures in effect on January 1, 1983) equal to the rate earned

by the investments of such Fund in the same month under subsection

(d) of this section.

(b) Federal Disability Insurance Trust Fund

There is hereby created on the books of the Treasury of the

United States a trust fund to be known as the "Federal Disability

Insurance Trust Fund". The Federal Disability Insurance Trust Fund

shall consist of such gifts and bequests as may be made as provided

in subsection (i)(1) of this section, and such amounts as may be

appropriated to, or deposited in, such fund as provided in this

section. There is hereby appropriated to the Federal Disability

Insurance Trust Fund for the fiscal year ending June 30, 1957, and

for each fiscal year thereafter, out of any moneys in the Treasury

not otherwise appropriated, amounts equivalent to 100 per centum of

(1)(A) 1/2 of 1 per centum of the wages (as defined in

section 3121 of the Internal Revenue Code of 1954) paid after

December 31, 1956, and before January 1, 1966, and reported to

the Secretary of the Treasury or his delegate pursuant to

subtitle F of the Internal Revenue Code of 1954, (B) 0.70 of 1

per centum of the wages (as so defined) paid after December 31,

1965, and before January 1, 1968, and so reported, (C) 0.95 of 1

per centum of the wages (as so defined) paid after December 31,

1967, and before January 1, 1970, and so reported, (D) 1.10 per

centum of the wages (as so defined) paid after December 31, 1969,

and before January 1, 1973, and so reported, (E) 1.1 per centum

of the wages (as so defined) paid after December 31, 1972, and

before January 1, 1974, and so reported, (F) 1.15 per centum of

the wages (as so defined) paid after December 31, 1973, and

before January 1, 1978, and so reported, (G) 1.55 per centum of

the wages (as so defined) paid after December 31, 1977, and

before January 1, 1979, and so reported, (H) 1.50 per centum of

the wages (as so defined) paid after December 31, 1978, and

before January 1, 1980, and so reported, (I) 1.12 per centum of

the wages (as so defined) paid after December 31, 1979, and

before January 1, 1981, and so reported, (J) 1.30 per centum of

the wages (as so defined) paid after December 31, 1980, and

before January 1, 1982, and so reported, (K) 1.65 per centum of

the wages (as so defined) paid after December 31, 1981, and

before January 1, 1983, and so reported, (L) 1.25 per centum of

the wages (as so defined) paid after December 31, 1982, and

before January 1, 1984, and so reported, (M) 1.00 per centum of

the wages (as so defined) paid after December 31, 1983, and

before January 1, 1988, and so reported, (N) 1.06 per centum of

the wages (as so defined) paid after December 31, 1987, and

before January 1, 1990, and so reported, (O) 1.20 per centum of

the wages (as so defined) paid after December 31, 1989, and

before January 1, 1994, and so reported, (P) 1.88 per centum of

the wages (as so defined) paid after December 31, 1993, and

before January 1, 1997, and so reported, (Q) 1.70 per centum of

the wages (as so defined) paid after December 31, 1996, and

before January 1, 2000, and so reported, and (R) 1.80 per centum

of the wages (as so defined) paid after December 31, 1999, and so

reported, which wages shall be certified by the Commissioner of

Social Security on the basis of the records of wages established

and maintained by such Commissioner in accordance with such

reports; and

(2)(A) 3/8 of 1 per centum of the amount of self-employment

income (as defined in section 1402 of the Internal Revenue Code

of 1954) reported to the Secretary of the Treasury or his

delegate on tax returns under subtitle F of the Internal Revenue

Code of 1954 for any taxable year beginning after December 31,

1956, and before January 1, 1966, (B) 0.525 of 1 per centum of

the amount of self-employment income (as so defined) so reported

for any taxable year beginning after December 31, 1965, and

before January 1, 1968, (C) 0.7125 of 1 per centum of the amount

of self-employment income (as so defined) so reported for any

taxable year beginning after December 31, 1967, and before

January 1, 1970, (D) 0.825 of 1 per centum of the amount of

self-employment income (as so defined) so reported for any

taxable year beginning after December 31, 1969, and before

January 1, 1973, (E) 0.795 of 1 per centum of the amount of

self-employment income (as so defined) so reported for any

taxable year beginning after December 31, 1972, and before

January 1, 1974, (F) 0.815 of 1 per centum of the amount of

self-employment income (as so defined) as reported for any

taxable year beginning after December 31, 1973, and before

January 1, 1978, (G) 1.090 per centum of the amount of

self-employment income (as so defined) so reported for any

taxable year beginning after December 31, 1977, and before

January 1, 1979, (H) 1.0400 per centum of the amount of

self-employment income (as so defined) so reported for any

taxable year beginning after December 31, 1978, and before

January 1, 1980, (I) 0.7775 per centum of the amount of

self-employment income (as so defined) so reported for any

taxable year beginning after December 31, 1979, and before

January 1, 1981, (J) 0.9750 per centum of the amount of

self-employment income (as so defined) so reported for any

taxable year beginning after December 31, 1980, and before

January 1, 1982, (K) 1.2375 per centum of the amount of

self-employment income (as so defined) so reported for any

taxable year beginning after December 31, 1981, and before

January 1, 1983, (L) 0.9375 per centum of the amount of

self-employment income (as so defined) so reported for any

taxable year beginning after December 31, 1982, and before

January 1, 1984, (M) 1.00 per centum of the amount of

self-employment income (as so defined) so reported for any

taxable year beginning after December 31, 1983, and before

January 1, 1988, (N) 1.06 per centum of the self-employment

income (as so defined) so reported for any taxable year beginning

after December 31, 1987, and before January 1, 1990, (O) 1.20 per

centum of the amount of self-employment income (as so defined) so

reported for any taxable year beginning after December 31, 1989,

and before January 1, 1994, (P) 1.88 per centum of the amount of

self-employment income (as so defined) so reported for any

taxable year beginning after December 31, 1993, and before

January 1, 1997, (Q) 1.70 per centum of the amount of

self-employment income (as so defined) so reported for any

taxable year beginning after December 31, 1996, and before

January 1, 2000, and (R) 1.80 per centum of the amount of

self-employment income (as so defined) so reported for any

taxable year beginning after December 31, 1999, which

self-employment income shall be certified by the Commissioner of

Social Security on the basis of the records of self-employment

income established and maintained by the Commissioner of Social

Security in accordance with such returns.

With respect to the Federal Old-Age and Survivors Insurance Trust

Fund and the Federal Disability Insurance Trust Fund (hereinafter

in this subchapter called the "Trust Funds") there is hereby

created a body to be known as the Board of Trustees of the Trust

Funds (hereinafter in this subchapter called the "Board of

Trustees") which Board of Trustees shall be composed of the

Commissioner of Social Security, the Secretary of the Treasury, the

Secretary of Labor, and the Secretary of Health and Human Services,

all ex officio, and of two members of the public (both of whom may

not be from the same political party), who shall be nominated by

the President for a term of four years and subject to confirmation

by the Senate. A member of the Board of Trustees serving as a

member of the public and nominated and confirmed to fill a vacancy

occurring during a term shall be nominated and confirmed only for

the remainder of such term. An individual nominated and confirmed

as a member of the public may serve in such position after the

expiration of such member's term until the earlier of the time at

which the member's successor takes office or the time at which a

report of the Board is first issued under paragraph (2) after the

expiration of the member's term. The Secretary of the Treasury

shall be the Managing Trustee of the Board of Trustees (hereinafter

in this subchapter called the "Managing Trustee"). The Deputy

Commissioner of Social Security shall serve as Secretary of the

Board of Trustees. The Board of Trustees shall meet not less

frequently than once each calendar year. It shall be the duty of

the Board of Trustees to -

(1) Hold the Trust Funds;

(2) Report to the Congress not later than the first day of

April of each year on the operation and status of the Trust Funds

during the preceding fiscal year and on their expected operation

and status during the next ensuing five fiscal years;

(3) Report immediately to the Congress whenever the Board of

Trustees is of the opinion that the amount of either of the Trust

Funds is unduly small;

(4) Recommend improvements in administrative procedures and

policies designed to effectuate the proper coordination of the

old-age and survivors insurance and Federal-State unemployment

compensation program; and

(5) Review the general policies followed in managing the Trust

Funds, and recommend changes in such policies, including

necessary changes in the provisions of the law which govern the

way in which the Trust Funds are to be managed.

The report provided for in paragraph (2) of this subsection shall

include a statement of the assets of, and the disbursements made

from, the Trust Funds during the preceding fiscal year, an estimate

of the expected future income to, and disbursements to be made

from, the Trust Funds during each of the next ensuing five fiscal

years, and a statement of the actuarial status of the Trust Funds.

Such statement shall include a finding by the Board of Trustees as

to whether the Federal Old-Age and Survivors Insurance Trust Fund

and the Federal Disability Insurance Trust Fund, individually and

collectively, are in close actuarial balance (as defined by the

Board of Trustees). Such report shall include an actuarial opinion

by the Chief Actuary of the Social Security Administration

certifying that the techniques and methodologies used are generally

accepted within the actuarial profession and that the assumptions

and cost estimates used are reasonable. Such report shall also

include an actuarial analysis of the benefit disbursements made

from the Federal Old-Age and Survivors Insurance Trust Fund with

respect to disabled beneficiaries. Such report shall be printed as

a House document of the session of the Congress to which the report

is made. A person serving on the Board of Trustees shall not be

considered to be a fiduciary and shall not be personally liable for

actions taken in such capacity with respect to the Trust Funds.

(d) Investments

It shall be the duty of the Managing Trustee to invest such

portion of the Trust Funds as is not, in his judgment, required to

meet current withdrawals. Such investments may be made only in

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 the issue price, or (2) by purchase of outstanding

obligations at the market price. The purposes for which obligations

of the United States may be issued under chapter 31 of title 31 are

hereby extended to authorize the issuance at par of public-debt

obligations for purchase by the Trust Funds. Such obligations

issued for purchase by the Trust Funds shall have maturities fixed

with due regard for the needs of the Trust Funds and shall bear

interest at a rate equal to the average market yield (computed by

the Managing Trustee on the basis of market quotations as of the

end of the calendar month next preceding the date of such issue) on

all marketable interest-bearing obligations of the United States

then forming a part of the public debt which are not due or

callable until after the expiration of four years from the end of

such calendar month; except that where such average market yield is

not a multiple of one-eighth of 1 per centum, the rate of interest

of such obligations shall be the multiple of one-eighth of 1 per

centum nearest such market yield. Each obligation issued for

purchase by the Trust Funds under this subsection shall be

evidenced by a paper instrument in the form of a bond, note, or

certificate of indebtedness issued by the Secretary of the Treasury

setting forth the principal amount, date of maturity, and interest

rate of the obligation, and stating on its face that the obligation

shall be incontestable in the hands of the Trust Fund to which it

is issued, that the obligation is supported by the full faith and

credit of the United States, and that the United States is pledged

to the payment of the obligation with respect to both principal and

interest. The Managing Trustee may purchase other interest-bearing

obligations of the United States or obligations guaranteed as to

both principal and interest by the United States, on original issue

or at the market price, only where he determines that the purchase

of such other obligations is in the public interest.

(e) Sale of acquired obligations

Any obligations acquired by the Trust Funds (except public-debt

obligations issued exclusively to the Trust Funds) may be sold by

the Managing Trustee at the market price, and such public-debt

obligations may be redeemed at par plus accrued interest.

(f) Proceeds from sale or redemption of obligations; interest

The interest on, and the proceeds from the sale or redemption of,

any obligations held in the Federal Old-Age and Survivors Insurance

Trust Fund and the Federal Disability Insurance Trust Fund shall be

credited to and form a part of the Federal Old-Age and Survivors

Insurance Trust Fund and the Disability Insurance Trust Fund,

respectively. Payment from the general fund of the Treasury to

either of the Trust Funds of any such interest or proceeds shall be

in the form of paper checks drawn on such general fund to the order

of such Trust Fund.

(g) Payments into Treasury

(1)(A) The Managing Trustee of the Trust Funds (which for

purposes of this paragraph shall include also the Federal Hospital

Insurance Trust Fund and the Federal Supplementary Medical

Insurance Trust Fund established by subchapter XVIII of this

chapter) is directed to pay from the Trust Funds into the Treasury

(i) (!1) the amounts estimated by the Managing Trustee, the

Commissioner of Social Security, and the Secretary of Health and

Human Services which will be expended, out of moneys appropriated

from the general fund in the Treasury, during a three-month

period by the Department of Health and Human Services for the

administration of subchapter XVIII of this chapter, and by the

Department of the Treasury for the administration of subchapters

II and XVIII of this chapter and chapters 2 and 21 of the

Internal Revenue Code of 1986, less

(ii) (!1) the amounts estimated (pursuant to the applicable

method prescribed under paragraph (4) of this subsection) by the

Commissioner of Social Security which will be expended, out of

moneys made available for expenditures from the Trust Funds,

during such three-month period to cover the cost of carrying out

the functions of the Social Security Administration, specified in

section 432 of this title, which relate to the administration of

provisions of the Internal Revenue Code of 1986 other than those

referred to in clause (i) and the functions of the Social

Security Administration in connection with the withholding of

taxes from benefits, as described in section 407(c) of this

title, pursuant to requests by persons entitled to such benefits

or such persons' representative payee.

Such payments shall be carried into the Treasury as the net amount

of repayments due the general fund account for reimbursement of

expenses incurred in connection with the administration of

subchapters II and XVIII of this chapter and chapters 2 and 21 of

the Internal Revenue Code of 1986. A final accounting of such

payments for any fiscal year shall be made at the earliest

practicable date after the close thereof. There are hereby

authorized to be made available for expenditure, out of any or all

of the Trust Funds, such amounts as the Congress may deem

appropriate to pay the costs of the part of the administration of

this subchapter, subchapter VIII of this chapter, subchapter XVI of

this chapter, and subchapter XVIII of this chapter for which the

Commissioner of Social Security is responsible, the costs of

subchapter XVIII of this chapter for which the Secretary of Health

and Human Services is responsible, and the costs of carrying out

the functions of the Social Security Administration, specified in

section 432 of this title, which relate to the administration of

provisions of the Internal Revenue Code of 1986 other than those

referred to in clause (i) of the first sentence of this

subparagraph and the functions of the Social Security

Administration in connection with the withholding of taxes from

benefits, as described in section 407(c) of this title, pursuant to

requests by persons entitled to such benefits or such persons'

representative payee. Of the amounts authorized to be made

available out of the Federal Old-Age and Survivors Insurance Trust

Fund and the Federal Disability Insurance Trust Fund under the

preceding sentence, there are hereby authorized to be made

available from either or both of such Trust Funds for continuing

disability reviews -

(i) (!1) for fiscal year 1996, $260,000,000;

(ii) (!1) for fiscal year 1997, $360,000,000;

(iii) for fiscal year 1998, $570,000,000;

(iv) for fiscal year 1999, $720,000,000;

(v) for fiscal year 2000, $720,000,000;

(vi) for fiscal year 2001, $720,000,000; and

(viii) (!2) for fiscal year 2002, $720,000,000.

For purposes of this subparagraph, the term "continuing disability

review" means a review conducted pursuant to section 421(i) of this

title and a review or disability eligibility redetermination

conducted to determine the continuing disability and eligibility of

a recipient of benefits under the supplemental security income

program under subchapter XVI of this chapter, including any review

or redetermination conducted pursuant to section 207 or 208 of the

Social Security Independence and Program Improvements Act of 1994

(Public Law 103-296).

(B) After the close of each fiscal year -

(i) the Commissioner of Social Security shall determine -

(I) the portion of the costs, incurred during such fiscal

year, of administration of this subchapter, subchapter VIII of

this chapter, subchapter XVI of this chapter, and subchapter

XVIII of this chapter for which the Commissioner is responsible

and of carrying out the functions of the Social Security

Administration, specified in section 432 of this title, which

relate to the administration of provisions of the Internal

Revenue Code of 1986 (other than those referred to in clause

(i) of the first sentence of subparagraph (A)) and the

functions of the Social Security Administration in connection

with the withholding of taxes from benefits, as described in

section 407(c) of this title, pursuant to requests by persons

entitled to such benefits or such persons' representative

payee, which should have been borne by the general fund of the

Treasury,

(II) the portion of such costs which should have been borne

by the Federal Old-Age and Survivors Insurance Trust Fund,

(III) the portion of such costs which should have been borne

by the Federal Disability Insurance Trust Fund,

(IV) the portion of such costs which should have been borne

by the Federal Hospital Insurance Trust Fund, and

(V) the portion of such costs which should have been borne by

the Federal Supplementary Medical Insurance Trust Fund, and

(ii) the Secretary of Health and Human Services shall determine

(I) the portion of the costs, incurred during such fiscal

year, of the administration of subchapter XVIII of this chapter

for which the Secretary is responsible, which should have been

borne by the general fund of the Treasury,

(II) the portion of such costs which should have been borne

by the Federal Hospital Insurance Trust Fund, and

(III) the portion of such costs which should have been borne

by the Federal Supplementary Medical Insurance Trust Fund.

made for any fiscal year, the Commisioner (!3) of Social Security

and the Secretary shall each certify to the Managing Trustee the

amounts, if any, which should be transferred from one to any of the

other such Trust Funds and the amounts, if any, which should be

transferred between the Trust Funds (or one of the Trust Funds) and

the general fund of the Treasury, in order to ensure that each of

the Trust Funds and the general fund of the Treasury have borne

their proper share of the costs, incurred during such fiscal year,

for -

(i) the parts of the administration of this subchapter,

subchapter VIII of this chapter, subchapter XVI of this chapter,

and subchapter XVIII of this chapter for which the Commissioner

of Social Security is responsible,

(ii) the parts of the administration of subchapter XVIII of

this chapter for which the Secretary is responsible, and

(iii) carrying out the functions of the Social Security

Administration, specified in section 432 of this title, which

relate to the administration of provisions of the Internal

Revenue Code of 1986 (other than those referred to in clause (i)

of the first sentence of subparagraph (A)) and the functions of

the Social Security Administration in connection with the

withholding of taxes from benefits, as described in section

407(c) of this title, pursuant to requests by persons entitled to

such benefits or such persons' representative payee.

The Managing Trustee shall transfer any such amounts in accordance

with any certification so made.

(D) The determinations required under subclauses (IV) and (V) of

subparagraph (B)(i) shall be made in accordance with the cost

allocation methodology in existence on August 15, 1994, until such

time as the methodology for making the determinations required

under such subclauses is revised by agreement of the Commissioner

and the Secretary, except that the determination of the amounts to

be borne by the general fund of the Treasury with respect to

expenditures incurred in carrying out the functions of the Social

Security Administration specified in section 432 of this title and

the functions of the Social Security Administration in connection

with the withholding of taxes from benefits as described in section

407(c) of this title shall be made pursuant to the applicable

method prescribed under paragraph (4).

(2) The Managing Trustee is directed to pay from time to time

from the Trust Funds into the Treasury the amount estimated by him

as taxes imposed under section 3101(a) of the Internal Revenue Code

of 1986 which are subject to refund under section 6413(c) of such

Code with respect to wages (as defined in section 3121 of such

Code). Such taxes shall be determined on the basis of the records

of wages maintained by the Commissioner of Social Security in

accordance with the wages reported to the Secretary of the Treasury

or his delegate pursuant to subtitle F of such Code, and the

Commissioner of Social Security shall furnish the Managing Trustee

such information as may be required by the Trustee for such

purpose. The payments by the Managing Trustee shall be covered into

the Treasury as repayments to the account for refunding internal

revenue collections. Payments pursuant to the first sentence of

this paragraph shall be made from the Federal Old-Age and Survivors

Insurance Trust Fund and the Federal Disability Insurance Trust

Fund in the ratio in which amounts were appropriated to such Trust

Funds under clause (3) of subsection (a) of this section and clause

(1) of subsection (b) of this section.

(3) Repayments made under paragraph (1) or (2) of this subsection

shall not be available for expenditures but shall be carried to the

surplus fund of the Treasury. If it subsequently appears that the

estimates under either such paragraph in any particular period were

too high or too low, appropriate adjustments shall be made by the

Managing Trustee in future payments.

(4) The Commissioner of Social Security shall utilize the method

prescribed pursuant to this paragraph, as in effect immediately

before August 15, 1994, for determining the costs which should be

borne by the general fund of the Treasury of carrying out the

functions of the Commissioner, specified in section 432 of this

title, which relate to the administration of provisions of the

Internal Revenue Code of 1986 (other than those referred to in

clause (i) of the first sentence of paragraph (1)(A)). The Board of

Trustees of such Trust Funds shall prescribe the method of

determining the costs which should be borne by the general fund in

the Treasury of carrying out the functions of the Social Security

Administration in connection with the withholding of taxes from

benefits, as described in section 407(c) of this title, pursuant to

requests by persons entitled to such benefits or such persons'

representative payee. If at any time or times thereafter the Boards

of Trustees of such Trust Funds consider such action advisable,

they may modify the method of determining such costs.

(h) Benefit payments

Benefit payments required to be made under section 423 of this

title, and benefit payments required to be made under subsection

(b), (c), or (d) of section 402 of this title to individuals

entitled to benefits on the basis of the wages and self-employment

income of an individual entitled to disability insurance benefits,

shall be made only from the Federal Disability Insurance Trust

Fund. All other benefit payments required to be made under this

subchapter (other than section 426 of this title) shall be made

only from the Federal Old-Age and Survivors Insurance Trust Fund.

(i) Gifts and bequests

(1) The Managing Trustee may accept on behalf of the United

States money gifts and bequests made unconditionally to the Federal

Old-Age and Survivors Insurance Trust Fund, the Federal Disability

Insurance Trust Fund, the Federal Hospital Insurance Trust Fund, or

the Federal Supplementary Medical Insurance Trust Fund or to the

Social Security Administration, the Department of Health and Human

Services, or any part or officer thereof, for the benefit of any of

such Funds or any activity financed through such Funds.

(2) Any such gift accepted pursuant to the authority granted in

paragraph (1) of this subsection shall be deposited in -

(A) the specific trust fund designated by the donor or

(B) if the donor has not so designated, the Federal Old-Age and

Survivors Insurance Trust Fund.

(j) Travel expenses

There are authorized to be made available for expenditure, out of

the Federal Old-Age and Survivors Insurance Trust Fund, or the

Federal Disability Insurance Trust Fund (as determined appropriate

by the Commissioner of Social Security), such amounts as are

required to pay travel expenses, either on an actual cost or

commuted basis, to individuals for travel incident to medical

examinations requested by the Commissioner of Social Security in

connection with disability determinations under this subchapter,

and to parties, their representatives, and all reasonably necessary

witnesses for travel within the United States (as defined in

section 410(i) of this title) to attend reconsideration interviews

and proceedings before administrative law judges with respect to

any determination under this subchapter. The amount available under

the preceding sentence for payment for air travel by any person

shall not exceed the coach fare for air travel between the points

involved unless the use of first-class accommodations is required

(as determined under regulations of the Commissioner of Social

Security) because of such person's health condition or the

unavailability of alternative accommodations; and the amount

available for payment for other travel by any person shall not

exceed the cost of travel (between the points involved) by the most

economical and expeditious means of transportation appropriate to

such person's health condition, as specified in such regulations.

The amount available for payment under this subsection for travel

by a representative to attend an administrative proceeding before

an administrative law judge or other adjudicator shall not exceed

the maximum amount allowable under this subsection for such travel

originating within the geographic area of the office having

jurisdiction over such proceeding.

(k) Experiment and demonstration project expenditures

Expenditures made for experiments and demonstration projects

under section 434 of this title shall be made from the Federal

Disability Insurance Trust Fund and the Federal Old-Age and

Survivors Insurance Trust Fund, as determined appropriate by the

Commissioner of Social Security.

(l) Interfund borrowing

(1) If at any time prior to January 1988 the Managing Trustee

determines that borrowing authorized under this subsection is

appropriate in order to best meet the need for financing the

benefit payments from the Federal Old-Age and Survivors Insurance

Trust Fund or the Federal Disability Insurance Trust Fund, the

Managing Trustee may borrow such amounts as he determines to be

appropriate from the other such Trust Fund, or, subject to

paragraph (5), from the Federal Hospital Insurance Trust Fund

established under section 1395i of this title, for transfer to and

deposit in the Trust Fund whose need for financing is involved.

(2) In any case where a loan has been made to a Trust Fund under

paragraph (1), there shall be transferred on the last day of each

month after such loan is made, from the borrowing Trust Fund to the

lending Trust Fund, the total interest accrued to such day with

respect to the unrepaid balance of such loan at a rate equal to the

rate which the lending Trust Fund would earn on the amount involved

if the loan were an investment under subsection (d) of this section

(even if such an investment would earn interest at a rate different

than the rate earned by investments redeemed by the lending fund in

order to make the loan).

(3)(A) If in any month after a loan has been made to a Trust Fund

under paragraph (1), the Managing Trustee determines that the

assets of such Trust Fund are sufficient to permit repayment of all

or part of any loans made to such Fund under paragraph (1), he

shall make such repayments as he determines to be appropriate.

(B)(i) If on the last day of any year after a loan has been made

under paragraph (1) by the Federal Hospital Insurance Trust Fund to

the Federal Old-Age and Survivors Insurance Trust Fund or the

Federal Disability Insurance Trust Fund, the Managing Trustee

determines that the OASDI trust fund ratio exceeds 15 percent, he

shall transfer from the borrowing Trust Fund to the Federal

Hospital Insurance Trust Fund an amount that -

(I) together with any amounts transferred from another

borrowing Trust Fund under this paragraph for such year, will

reduce the OASDI trust fund ratio to 15 percent; and

(II) does not exceed the outstanding balance of such loan.

(ii) Amounts required to be transferred under clause (i) shall be

transferred on the last day of the first month of the year

succeeding the year in which the determination described in clause

(i) is made.

(iii) For purposes of this subparagraph, the term "OASDI trust

fund ratio" means, with respect to any calendar year, the ratio of

(I) the combined balance in the Federal Old-Age and Survivors

Insurance Trust Fund and the Federal Disability Insurance Trust

Fund, as of the last day of such calendar year, to

(II) the amount estimated by the Commissioner of Social

Security to be the total amount to be paid from the Federal

Old-Age and Survivors Insurance Trust Fund and the Federal

Disability Insurance Trust Fund during the calendar year

following such calendar year for all purposes authorized by this

section (other than payments of interest on, and repayments of,

loans from the Federal Hospital Insurance Trust Fund under

paragraph (1), but excluding any transfer payments between such

trust funds and reducing the amount of any transfer to the

Railroad Retirement Account by the amount of any transfers into

either such trust fund from that Account).

(C)(i) The full amount of all loans made under paragraph (1)

(whether made before or after January 1, 1983) shall be repaid at

the earliest feasible date and in any event no later than December

31, 1989.

(ii) For the period after December 31, 1987, and before January

1, 1990, the Managing Trustee shall transfer each month to the

Federal Hospital Insurance Trust Fund from any Trust Fund with any

amount outstanding on a loan made from the Federal Hospital

Insurance Trust Fund under paragraph (1) an amount not less than an

amount equal to (I) the amount owed to the Federal Hospital

Insurance Trust Fund by such Trust Fund at the beginning of such

month (plus the interest accrued on the outstanding balance of such

loan during such month), divided by (II) the number of months

elapsing after the preceding month and before January 1990. The

Managing Trustee may, during this period, transfer larger amounts

than prescribed by the preceding sentence.

(4) The Board of Trustees shall make a timely report to the

Congress of any amounts transferred (including interest payments)

under this subsection.

(5)(A) No amounts may be borrowed from the Federal Hospital

Insurance Trust Fund under paragraph (1) during any month if the

Hospital Insurance Trust Fund ratio for such month is less than 10

percent.

(B) For purposes of this paragraph, the term "Hospital Insurance

Trust Fund ratio" means, with respect to any month, the ratio of -

(i) the balance in the Federal Hospital Insurance Trust Fund,

reduced by the outstanding amount of any loan (including interest

thereon) theretofore made to such Trust Fund under this

subsection, as of the last day of the second month preceding such

month, to

(ii) the amount obtained by multiplying by twelve the total

amount which (as estimated by the Secretary) will be paid from

the Federal Hospital Insurance Trust Fund during the month for

which such ratio is to be determined (other than payments of

interest on, or repayments of loans from another Trust Fund under

this subsection), and reducing the amount of any transfers to the

Railroad Retirement Account by the amount of any transfer into

the Hospital Insurance Trust Fund from that Account.

(m) Accounting for unnegotiated benefit checks

(1) The Secretary of the Treasury shall implement procedures to

permit the identification of each check issued for benefits under

this subchapter that has not been presented for payment by the

close of the sixth month following the month of its issuance.

(2) The Secretary of the Treasury shall, on a monthly basis,

credit each of the Trust Funds for the amount of all benefit checks

(including interest thereon) drawn on such Trust Fund more than 6

months previously but not presented for payment and not previously

credited to such Trust Fund, to the extent provided in advance in

appropriation Acts.

(3) If a benefit check is presented for payment to the Treasury

and the amount thereof has been previously credited pursuant to

paragraph (2) to one of the Trust Funds, the Secretary of the

Treasury shall nevertheless pay such check, if otherwise proper,

recharge such Trust Fund, and notify the Commissioner of Social

Security.

(4) A benefit check bearing a current date may be issued to an

individual who did not negotiate the original benefit check and who

surrenders such check for cancellation if the Secretary of the

Treasury determines it is necessary to effect proper payment of

benefits.

-SOURCE-

(Aug. 14, 1935, ch. 531, title II, Sec. 201, 49 Stat. 622; Aug. 10,

1939, ch. 666, title II, Sec. 201, 53 Stat. 1362; Feb. 25, 1944,

ch. 63, title IX, Sec. 902, 58 Stat. 93; Aug. 28, 1950, ch. 809,

title I, Sec. 109(a), 64 Stat. 521; Aug. 1, 1956, ch. 836, title I,

Sec. 103(e), 70 Stat. 819; Pub. L. 85-840, title II, Sec. 205(a),

Aug. 28, 1958, 72 Stat. 1021; Pub. L. 86-346, title I, Sec. 104(2),

Sept. 22, 1959, 73 Stat. 622; Pub. L. 86-778, title VII, Sec.

701(a)-(e), Sept. 13, 1960, 74 Stat. 992, 993; Pub. L. 89-97, title

I, Sec. 108(a), title III, Secs. 305, 327, July 30, 1965, 79 Stat.

338, 370, 400; Pub. L. 90-248, title I, Secs. 110, 169, Jan. 2,

1968, 81 Stat. 837, 875; Pub. L. 91-172, title X, Sec. 1005, Dec.

30, 1969, 83 Stat. 741; Pub. L. 92-336, title II, Sec. 205, July 1,

1972, 86 Stat. 422; Pub. L. 92-603, title I, Secs. 132(a)-(c), 136,

title III, Sec. 305(a), Oct. 30, 1972, 86 Stat. 1360, 1364, 1484;

Pub. L. 93-233, Sec. 7, Dec. 31, 1973, 87 Stat. 955; Pub. L.

94-202, Sec. 8(d), Jan. 2, 1976, 89 Stat. 1137; Pub. L. 95-216,

title I, Sec. 102(a), Dec. 20, 1977, 91 Stat. 1513; Pub. L. 96-265,

title III, Sec. 310(a), title V, Sec. 505(a)(5), June 9, 1980, 94

Stat. 459, 474; Pub. L. 96-403, Sec. 1, Oct. 9, 1980, 94 Stat.

1709; Pub. L. 97-123, Sec. 1(a), Dec. 29, 1981, 95 Stat. 1659; Pub.

L. 98-21, title I, Secs. 126, 141(a), 142(a)(1), (2)(A), (3), (4),

152(a), 154(a), title III, Sec. 341(a), Apr. 20, 1983, 97 Stat. 91,

98-100, 105, 107, 135; Pub. L. 98-369, div. B, title VI, Secs.

2661(a), 2663(a)(1), (j)(2)(A)(i), July 18, 1984, 98 Stat. 1156,

1160, 1170; Pub. L. 99-272, title IX, Sec. 9213(a), Apr. 7, 1986,

100 Stat. 180; Pub. L. 100-360, title II, Sec. 212(c)(1), July 1,

1988, 102 Stat. 741; Pub. L. 100-647, title VIII, Sec. 8005(a),

Nov. 10, 1988, 102 Stat. 3781; Pub. L. 101-234, title II, Sec.

202(a), Dec. 13, 1989, 103 Stat. 1981; Pub. L. 101-508, title V,

Secs. 5106(c), 5115(a), title XIII, Sec. 13304, Nov. 5, 1990, 104

Stat. 1388-268, 1388-274, 1388-627; Pub. L. 103-296, title I, Sec.

107(b), title III, Secs. 301(a), (b), 321(a)(1), (c)(1)(A)(i),

(B)(i), (C), Aug. 15, 1994, 108 Stat. 1478, 1517, 1535, 1537; Pub.

L. 103-387, Sec. 3(a), (b), Oct. 22, 1994, 108 Stat. 4074, 4075;

Pub. L. 104-121, title I, Sec. 103(a), Mar. 29, 1996, 110 Stat.

848; Pub. L. 105-277, div. J, title IV, Sec. 4005(b), Oct. 21,

1998, 112 Stat. 2681-911; Pub. L. 106-169, title II, Sec.

251(b)(1), Dec. 14, 1999, 113 Stat. 1854; Pub. L. 106-170, title

III, Sec. 301(b)(1)(B), Dec. 17, 1999, 113 Stat. 1902.)

-REFTEXT-

REFERENCES IN TEXT

Subchapter A of chapter 9 of the Internal Revenue Code of 1939,

referred to in subsec. (a)(1) to (3), was comprised of sections

1400 to 1432, and was repealed (subject to certain exceptions) by

section 7851(a)(3) of the Internal Revenue Code of 1986.

Sections 1426 and 1420(c) of the Internal Revenue Code of 1939,

referred to in subsec. (a)(3), were a part of subchapter A of

chapter 9 of the 1939 Code. See above.

Internal Revenue Code of 1954, referred to in subsecs. (a)(3),

(4) and (b)(1)(A), (2)(A), redesignated Internal Revenue Code of

1986 by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095.

Subchapter E of chapter 1 of the Internal Revenue Code of 1939,

referred to in subsec. (a)(4), was comprised of sections 480 to

482, and was repealed (subject to certain exceptions) by section

7851(a)(1)(A) of the Internal Revenue Code of 1986.

Section 481 of the Internal Revenue Code of 1939, referred to in

subsec. (a)(4), was a part of subchapter E of chapter 1 of the 1939

Code. See above.

For provision deeming a reference in other laws to a provision of

the 1939 Code as a reference to the corresponding provision of the

1986 Code, see section 7852(b) if the 1986 Code. For table of

comparisons of the 1939 Code to the 1986 Code, see table preceding

section 1 of Title 26, Internal Revenue Code. The Internal Revenue

Code of 1986 is classified generally to Title 26.

Chapters 2 and 21 and subtitle F of the Internal Revenue Code of

1986, referred to in subsec. (g)(1)(A), (2), are classified to

sections 1401 et seq., 3101 et seq., and 6001 et seq.,

respectively, of Title 26, Internal Revenue Code.

Section 207 or 208 of the Social Security Independence and

Program Improvements Act of 1994, referred to in subsec. (g)(1)(A),

are sections 207 and 208 of Pub. L. 103-296. Section 208 of Pub. L.

103-296 is set out as a note under section 1382 of this title.

Section 207 of Pub. L. 103-296 was set out as a note under section

1382 of this title prior to repeal by Pub. L. 104-193, title II,

Sec. 212(b)(2), (d), Aug. 22, 1996, 110 Stat. 2193, 2194.

-MISC1-

AMENDMENTS

1999 - Subsec. (g)(1)(A). Pub. L. 106-169, Sec. 251(b)(1)(A),

inserted "subchapter VIII of this chapter," after "this

subchapter," in fourth sentence.

Subsec. (g)(1)(B)(i)(I). Pub. L. 106-169, Sec. 251(b)(1)(B),

inserted "subchapter VIII of this chapter," after "this

subchapter,".

Subsec. (g)(1)(C)(i). Pub. L. 106-169, Sec. 251(b)(1)(C),

inserted "subchapter VIII of this chapter," after "this

subchapter,".

Subsec. (k). Pub. L. 106-170 substituted "section 434 of this

title" for "section 505(a) of the Social Security Disability

Amendments of 1980".

1998 - Subsec. (g)(1)(A). Pub. L. 105-277, Sec. 4005(b)(2), which

directed the amendment of subsec. (g) by inserting "and the

functions of the Social Security Administration in connection with

the withholding of taxes from benefits, as described in section

407(c) of this title, pursuant to requests by persons entitled to

such benefits or such persons' representative payee" before period

at end of paragraph (1)(A), was executed by inserting this material

after "the first sentence of this subparagraph" in provisions

following cl. (ii) to reflect the probable intent of Congress.

Subsec. (g)(1)(A)(ii). Pub. L. 105-277, Sec. 4005(b)(1), inserted

before period at end "and the functions of the Social Security

Administration in connection with the withholding of taxes from

benefits, as described in section 407(c) of this title, pursuant to

requests by persons entitled to such benefits or such persons'

representative payee".

Subsec. (g)(1)(B)(i)(I). Pub. L. 105-277, Sec. 4005(b)(3),

substituted "subparagraph (A)) and the functions of the Social

Security Administration in connection with the withholding of taxes

from benefits, as described in section 407(c) of this title,

pursuant to requests by persons entitled to such benefits or such

persons' representative payee," for "subparagraph (A)),".

Subsec. (g)(1)(C)(iii). Pub. L. 105-277, Sec. 4005(b)(4),

inserted before period at end "and the functions of the Social

Security Administration in connection with the withholding of taxes

from benefits, as described in section 407(c) of this title,

pursuant to requests by persons entitled to such benefits or such

persons' representative payee".

Subsec. (g)(1)(D). Pub. L. 105-277, Sec. 4005(b)(5), inserted

"and the functions of the Social Security Administration in

connection with the withholding of taxes from benefits as described

in section 407(c) of this title" after "section 432 of this title".

Subsec. (g)(4). Pub. L. 105-277, Sec. 4005(b)(6), inserted after

first sentence "The Board of Trustees of such Trust Funds shall

prescribe the method of determining the costs which should be borne

by the general fund in the Treasury of carrying out the functions

of the Social Security Administration in connection with the

withholding of taxes from benefits, as described in section 407(c)

of this title, pursuant to requests by persons entitled to such

benefits or such persons' representative payee."

1996 - Subsec. (g)(1)(A). Pub. L. 104-121 inserted at end "Of the

amounts authorized to be made available out of the Federal Old-Age

and Survivors Insurance Trust Fund and the Federal Disability

Insurance Trust Fund under the preceding sentence, there are hereby

authorized to be made available from either or both of such Trust

Funds for continuing disability reviews -

"(i) for fiscal year 1996, $260,000,000;

"(ii) for fiscal year 1997, $360,000,000;

"(iii) for fiscal year 1998, $570,000,000;

"(iv) for fiscal year 1999, $720,000,000;

"(v) for fiscal year 2000, $720,000,000;

"(vi) for fiscal year 2001, $720,000,000; and

"(viii) for fiscal year 2002, $720,000,000.

For purposes of this subparagraph, the term 'continuing disability

review' means a review conducted pursuant to section 421(i) of this

title and a review or disability eligibility redetermination

conducted to determine the continuing disability and eligibility of

a recipient of benefits under the supplemental security income

program under subchapter XVI of this chapter, including any review

or redetermination conducted pursuant to section 207 or 208 of the

Social Security Independence and Program Improvements Act of 1994

(Public Law 103-296)."

1994 - Subsec. (a). Pub. L. 103-296, Sec. 321(a)(1), in closing

provisions substituted "and" for "and and" before "such Trust Fund

shall pay".

Subsec. (a)(3). Pub. L. 103-296, Sec. 107(b)(1), (2), substituted

"Commissioner of Social Security" and "such Commissioner" for

"Secretary of Health and Human Services" and "such Secretary",

respectively.

Subsec. (a)(4). Pub. L. 103-296, Sec. 107(b)(1), substituted

"Commissioner of Social Security" for "Secretary of Health and

Human Services" in two places.

Subsec. (b)(1). Pub. L. 103-296, Sec. 107(b)(1), (2), substituted

"Commissioner of Social Security" and "such Commissioner" for

"Secretary of Health and Human Services" and "such Secretary",

respectively.

Subsec. (b)(1)(O) to (R). Pub. L. 103-387, Sec. 3(a), substituted

"(O) 1.20 per centum of the wages (as so defined) paid after

December 31, 1989, and before January 1, 1994, and so reported, (P)

1.88 per centum of the wages (as so defined) paid after December

31, 1993, and before January 1, 1997, and so reported, (Q) 1.70 per

centum of the wages (as so defined) paid after December 31, 1996,

and before January 1, 2000, and so reported, and (R) 1.80 per

centum of the wages (as so defined) paid after December 31, 1999,

and so reported," for "(O) 1.20 per centum of the wages (as so

defined) paid after December 31, 1989, and before January 1, 2000,

and so reported, and (P) 1.42 per centum of the wages (as so

defined) paid after December 31, 1999, and so reported,".

Subsec. (b)(2). Pub. L. 103-296, Sec. 107(b)(1), substituted

"Commissioner of Social Security" for "Secretary of Health and

Human Services" in two places.

Subsec. (b)(2)(O) to (R). Pub. L. 103-387, Sec. 3(b), substituted

"(O) 1.20 per centum of the amount of self-employment income (as so

defined) so reported for any taxable year beginning after December

31, 1989, and before January 1, 1994, (P) 1.88 per centum of the

amount of self-employment income (as so defined) so reported for

any taxable year beginning after December 31, 1993, and before

January 1, 1997, (Q) 1.70 per centum of the amount of

self-employment income (as so defined) so reported for any taxable

year beginning after December 31, 1996, and before January 1, 2000,

and (R) 1.80 per centum of the amount of self-employment income (as

so defined) so reported for any taxable year beginning after

December 31, 1999," for "(O) 1.20 per centum of the amount of

self-employment income (as so defined) so reported for any taxable

year beginning after December 31, 1989, and before January 1, 2000,

and (P) 1.42 per centum of the self-employment income (as so

defined) so reported for any taxable year beginning after December

31, 1999,".

Subsec. (c). Pub. L. 103-296, Sec. 107(b)(3), in introductory

provisions, inserted "the Commissioner of Social Security," after

"shall be composed of" and inserted "Deputy" before "Commissioner

of Social Security shall serve".

Subsec. (d). Pub. L. 103-296, Sec. 301(a), inserted after fifth

sentence "Each obligation issued for purchase by the Trust Funds

under this subsection shall be evidenced by a paper instrument in

the form of a bond, note, or certificate of indebtedness issued by

the Secretary of the Treasury setting forth the principal amount,

date of maturity, and interest rate of the obligation, and stating

on its face that the obligation shall be incontestable in the hands

of the Trust Fund to which it is issued, that the obligation is

supported by the full faith and credit of the United States, and

that the United States is pledged to the payment of the obligation

with respect to both principal and interest."

Subsec. (f). Pub. L. 103-296, Sec. 301(b), inserted at end

"Payment from the general fund of the Treasury to either of the

Trust Funds of any such interest or proceeds shall be in the form

of paper checks drawn on such general fund to the order of such

Trust Fund."

Subsec. (g)(1)(A). Pub. L. 103-296, Sec. 107(b)(4)(C), in text as

amended by Pub. L. 103-296, Sec. 321(c)(1)(A)(i)(III), substituted

"subchapters II and XVIII" for "subchapters II, XVI, and XVIII" in

second sentence and amended last sentence generally. Prior to

amendment, last sentence read as follows: "There are hereby

authorized to be made available for expenditure, out of any or all

of the Trust Funds, such amounts as the Congress may deem

appropriate to pay the costs of the part of the administration of

this subchapter, subchapter XVI, and subchapter XVIII of this

chapter for which the Secretary of Health and Human Services is

responsible and of carrying out the functions of the Department of

Health and Human Services, specified in section 432 of this title,

which relate to the administration of provisions of the Internal

Revenue Code of 1986 other than those referred to in clause (i) of

the first sentence of this subparagraph."

Pub. L. 103-296, Sec. 321(c)(1)(A)(i)(III), substituted "chapters

2 and 21 of the Internal Revenue Code of 1986" for "subchapter E of

chapter 1 and subchapter A of chapter 9 of the Internal Revenue

Code of 1939, and chapters 2 and 21 of the Internal Revenue Code of

1954" in second sentence and "1986 other" for "1954 other" in last

sentence.

Subsec. (g)(1)(A)(i). Pub. L. 103-296, Sec. 321(c)(1)(A)(i)(I),

substituted "and chapters 2 and 21 of the Internal Revenue Code of

1986" for "and subchapter E of chapter 1 and subchapter A of

chapter 9 of the Internal Revenue Code of 1939, and chapters 2 and

21 of the Internal Revenue Code of 1954".

Pub. L. 103-296, Sec. 107(b)(4)(A), substituted "by the Managing

Trustee, the Commissioner of Social Security, and the Secretary of

Health and Human Services" for "by him and the Secretary of Health

and Human Services" and "by the Department of Health and Human

Services for the administration of subchapter XVIII of this

chapter, and by the Department of the Treasury for the

administration of subchapters II and XVIII of this chapter" for "by

the Department of Health and Human Services and the Treasury

Department for the administration of subchapters II, XVI, and XVIII

of this chapter".

Subsec. (g)(1)(A)(ii). Pub. L. 103-296, Sec. 321(c)(1)(A)(i)(II),

substituted "Internal Revenue Code of 1986" for "Internal Revenue

Code of 1954".

Pub. L. 103-296, Sec. 107(b)(4)(B), substituted "applicable

method prescribed under paragraph (4)" for "method prescribed by

the Board of Trustees under paragraph (4)", "Commissioner of Social

Security" for "Secretary of Health and Human Services", and "Social

Security Administration" for "Department of Health and Human

Services".

Subsec. (g)(1)(B). Pub. L. 103-296, Sec. 107(b)(4)(A), added

subpar. (B) and struck out former subpar. (B), as amended by Pub.

L. 103-296, Sec. 321(c)(1)(A)(i)(IV), which read as follows: "After

the close of each fiscal year the Secretary of Health and Human

Services shall determine the portion of the costs, incurred during

such fiscal year, of administration of this subchapter, subchapter

XVI, and subchapter XVIII of this chapter and of carrying out the

functions of the Department of Health and Human Services, specified

in section 432 of this title, which relate to the administration of

provisions of the Internal Revenue Code of 1986 (other than those

referred to in clause (i) of the first sentence of subparagraph

(A)), which should have been borne by the general fund in the

Treasury and the portion of such costs which should have been borne

by each of the Trust Funds; except that the determination of the

amounts to be borne by the general fund in the Treasury with

respect to expenditures incurred in carrying out such functions

specified in section 432 of this title shall be made pursuant to

the method prescribed by the Board of Trustees under paragraph (4)

of this subsection. After such determination has been made, the

Secretary of Health and Human Services shall certify to the

Managing Trustee the amounts, if any, which should be transferred

from one to any of the other of such Trust Funds and the amounts,

if any, which should be transferred between the Trust Funds (or one

of the Trust Funds) and the general fund in the Treasury, in order

to insure that each of the Trust Funds and the general fund in the

Treasury have borne their proper share of the costs, incurred

during such fiscal year, for the part of the administration of this

subchapter, subchapter XVI, and subchapter XVIII of this chapter

for which the Secretary of Health and Human Services is responsible

and of carrying out the functions of the Department of Health and

Human Services, specified in section 432 of this title, which

relate to the administration of provisions of the Internal Revenue

Code of 1986 (other than those referred to in clause (i) of the

first sentence of subparagraph (A)). The Managing Trustee is

authorized and directed to transfer any such amounts in accordance

with any certification so made."

Pub. L. 103-296, Sec. 321(c)(1)(A)(i)(IV), substituted "Internal

Revenue Code of 1986" for "Internal Revenue Code of 1954" in two

places.

Subsec. (g)(1)(C), (D). Pub. L. 103-296, Sec. 107(b)(4)(A), added

subpars. (C) and (D).

Subsec. (g)(2). Pub. L. 103-296, Sec. 321(c)(1)(B)(i), in first

sentence substituted "section 3101(a) of the Internal Revenue Code

of 1986 which are subject to refund under section 6413(c) of such

Code with respect to wages (as defined in section 3121 of such

Code)." for "section 3101(a) which are subject to refund under

section 6413(c) of the Internal Revenue Code of 1954 with respect

to wages (as defined in section 1426 of the Internal Revenue Code

of 1939 and section 3121 of the Internal Revenue Code of 1954) paid

after December 31, 1950." and in second sentence substituted "wages

reported to the Secretary of the Treasury or his delegate pursuant

to subtitle F of such Code," for "wages reported to the

Commissioner of Internal Revenue pursuant to section 1420(c) of the

Internal Revenue Code of 1939 and to the Secretary of the Treasury

or his delegate pursuant to subtitle F of the Internal Revenue Code

of 1954,".

Pub. L. 103-296, Sec. 107(b)(5), in second sentence substituted

"maintained by the Commissioner of Social Security" for

"established and maintained by the Secretary of Health and Human

Services" and "Commissioner of Social Security shall furnish" for

"Secretary shall furnish".

Subsec. (g)(4). Pub. L. 103-296, Sec. 107(b)(6), amended

generally par. (4) as amended by Pub. L. 103-296, Sec.

321(c)(1)(C). Prior to amendment, par. (4) read as follows: "If at

any time or times the Boards of Trustees of such Trust Funds deem

such action advisable, they may modify the method prescribed by

such Boards of determining the costs which should be borne by the

general fund in the Treasury of carrying out the functions of the

Department of Health and Human Services, specified in section 432

of this title, which relate to the administration of provisions of

the Internal Revenue Code of 1986 (other than those referred to in

clause (i) of the first sentence of paragraph (1)(A))."

Pub. L. 103-296, Sec. 321(c)(1)(C), substituted "If at any time

or times the Boards of Trustees of such Trust Funds deem such

action advisable, they may modify the method prescribed by such

Boards" for "The Board of Trustees shall prescribe before January

1, 1981, the method" and "Code of 1986" for "Code of 1954" and

struck out at end "If at any time or times thereafter the Boards of

Trustees of such Trust Funds deem such action advisable they may

modify the method so determined."

Subsec. (i)(1). Pub. L. 103-296, Sec. 107(b)(7), amended par. (1)

generally. Prior to amendment, par. (1) read as follows: "The

Managing Trustee of the Federal Old-Age and Survivors Insurance

Trust Fund, the Federal Disability Insurance Trust Fund, the

Federal Hospital Insurance Trust Fund, and the Federal

Supplementary Medical Insurance Trust Fund is authorized to accept

on behalf of the United States money gifts and bequests made

unconditionally to any one or more of such Trust Funds or to the

Department of Health and Human Services, or any part or officer

thereof, for the benefit of any of such Funds or any activity

financed through such Funds."

Subsec. (j). Pub. L. 103-296, Sec. 107(b)(8), substituted

"Commissioner of Social Security" for "Secretary" wherever

appearing.

Subsec. (k). Pub. L. 103-296, Sec. 107(b)(8), substituted

"Commissioner of Social Security" for "Secretary".

Subsec. (l)(3)(B)(iii)(II). Pub. L. 103-296, Sec. 107(b)(9),

substituted "Commissioner of Social Security" for "Secretary".

Subsec. (m)(3). Pub. L. 103-296, Sec. 107(b)(10), substituted

"Commissioner of Social Security" for "Secretary of Health and

Human Services".

1990 - Subsec. (a). Pub. L. 101-508, Sec. 5115(a), in first

sentence following cl. (4), substituted "from time to time" for

"monthly on the first day of each calendar month" in two places and

"paid to or deposited into the Treasury" for "to be paid to or

deposited into the Treasury during such month", and in last

sentence substituted "Fund. Notwithstanding the preceding sentence,

in any case in which the Secretary of the Treasury determines that

the assets of either such Trust Fund would otherwise be inadequate

to meet such Fund's obligations for any month, the Secretary of the

Treasury shall transfer to such Trust Fund on the first day of such

month the amount which would have been transferred to such Fund

under this section as in effect on October 1, 1990; and" for

"Fund;".

Subsec. (c). Pub. L. 101-508, Sec. 13304, inserted after first

sentence following cl. (5) "Such statement shall include a finding

by the Board of Trustees as to whether the Federal Old-Age and

Survivors Insurance Trust Fund and the Federal Disability Insurance

Trust Fund, individually and collectively, are in close actuarial

balance (as defined by the Board of Trustees)."

Subsec. (j). Pub. L. 101-508, Sec. 5106(c), inserted at end "The

amount available for payment under this subsection for travel by a

representative to attend an administrative proceeding before an

administrative law judge or other adjudicator shall not exceed the

maximum amount allowable under this subsection for such travel

originating within the geographic area of the office having

jurisdiction over such proceeding."

1989 - Subsecs. (g)(1)(A), (i)(1). Pub. L. 101-234 repealed Pub.

L. 100-360, Sec. 212(c)(1), and provided that the provisions of law

amended or repealed by such section are restored or revised as if

such section had not been enacted, see 1988 Amendment note below.

1988 - Subsec. (c). Pub. L. 100-647 inserted after first sentence

"A member of the Board of Trustees serving as a member of the

public and nominated and confirmed to fill a vacancy occurring

during a term shall be nominated and confirmed only for the

remainder of such term. An individual nominated and confirmed as a

member of the public may serve in such position after the

expiration of such member's term until the earlier of the time at

which the member's successor takes office or the time at which a

report of the Board is first issued under paragraph (2) after the

expiration of the member's term."

Subsec. (g)(1)(A). Pub. L. 100-360, Sec. 212(c)(1)(A),

substituted ", Federal Supplementary Medical Insurance Trust Fund,

and the Federal Catastrophic Drug Insurance Trust Fund" for "and

the Federal Supplementary Medical Insurance Trust Fund".

Subsec. (i)(1). Pub. L. 100-360, Sec. 212(c)(1)(B), substituted

", Federal Hospital Insurance Catastrophic Coverage Reserve Fund,

Federal Supplementary Medical Insurance Trust Fund, and the Federal

Catastrophic Drug Insurance Trust Fund" for "and the Federal

Supplementary Medical Insurance Trust Fund".

1986 - Subsec. (c). Pub. L. 99-272, in provisions following par.

(5), substituted ". Such report shall" for ": Provided, That the

certification shall not refer to economic assumptions underlying

the Trustee's report, and shall".

1984 - Subsecs. (a)(3), (4), (b)(1), (2). Pub. L. 98-369, Sec.

2663(j)(2)(A)(i), substituted "Health and Human Services" for

"Health, Education, and Welfare".

Subsec. (d). Pub. L. 98-369, Sec. 2663(a)(1)(A), substituted

"chapter 31 of title 31" for "the Second Liberty Bond Act, as

amended" and "public-debt obligations" for "public-debt

obligation".

Subsec. (g)(1). Pub. L. 98-369, Sec. 2663(j)(2)(A)(i),

substituted "Health and Human Services" for "Health, Education, and

Welfare".

Subsec. (g)(1)(B). Pub. L. 98-369, Sec. 2663(a)(1)(B),

substituted "clause" for "clauses" in first sentence.

Subsecs. (g)(2), (4), (i)(1). Pub. L. 98-369, Sec.

2663(j)(2)(A)(i), substituted "Health and Human Services" for

"Health, Education, and Welfare".

Subsec. (l)(3)(B)(i). Pub. L. 98-369, Sec. 2661(a), inserted

"Insurance" after "Survivors".

1983 - Subsec. (a). Pub. L. 98-21, Sec. 141(a), in provisions

following par. (4), substituted "monthly on the first day of each

calendar month" for "from time to time", wherever appearing, and

"to be paid or deposited into the Treasury during such month" for

"paid to or deposited into the Treasury", and inserted provision

that all amounts transferred to either Trust Fund under the

preceding sentence shall be invested by the Managing Trustee in the

same manner and to the same extent as the other assets of such

Trust Fund; and such Trust Fund shall pay interest to the general

fund on the amount so transferred on the first day of any month at

a rate (calculated on a daily basis, and applied against the

difference between the amount so transferred on such first day and

the amount which would have been transferred to the Trust Fund up

to that day under the procedures in effect on Jan. 1, 1983) equal

to the rate earned by the investments of such Fund in the same

month under subsection (d) of this section.

Subsec. (b)(1)(K) to (P). Pub. L. 98-21, Sec. 126(a),

substituted, in cls. (K), (L), and (M), appropriations equivalent

to 100 per centum of (K) 1.65 per centum of the wages (as so

defined) paid after Dec. 31, 1981, and before Jan. 1, 1983, and so

reported, (L) 1.25 per centum of the wages (as so defined) paid

after Dec. 31, 1982, and before Jan. 1, 1984, and so reported, (M)

1.00 per centum of the wages (as so defined) paid after Dec. 31,

1983, and before Jan. 1, 1988, and so reported, for such

appropriations of (K) 1.65 per centum of the wages (as so defined)

paid after Dec. 31, 1981, and before Jan. 1, 1985, and so reported,

(L) 1.90 per centum of the wages (as so defined) paid Dec. 31,

1984, and before Jan. 1, 1990, and so reported, and (M) 2.20 per

centum of the wages (as so defined) paid after Dec. 31, 1989, and

so reported, and added cls. (N) to (P).

Subsec. (b)(2)(K) to (P). Pub. L. 98-21, Sec. 126(b),

substituted, in cls. (K), (L), and (M), appropriations equivalent

to 100 per centum of (K) 1.2375 per centum of the amount of

self-employment income (as so defined) so reported for any taxable

year beginning after Dec. 31, 1981, and before Jan. 1, 1983, (L)

0.9375 per centum of the amount of self-employment income (as so

defined) so reported for any taxable year beginning after Dec. 31,

1982, and before Jan. 1, 1984, (M) 1.00 per centum of the amount of

self-employment income (as so defined) so reported for any taxable

year beginning after Dec. 31, 1983, and before Jan. 1, 1988, for

such appropriations of (K) 1.2375 per centum of the amount of

self-employment income (as so defined) so reported for any taxable

year beginning after Dec. 31, 1981, and before Jan. 1, 1985, (L)

1.4250 per centum of the amount of self-employment income (as so

defined) so reported for any taxable year beginning after Dec. 31,

1984, and before Jan. 1, 1990, and (M) 1.6500 per centum of the

amount of self-employment income (as so defined) so reported for

any taxable year beginning after Dec. 31, 1989, and added cls. (N)

to (P).

Subsec. (c). Pub. L. 98-21, Sec. 341(a), substituted "Secretary

of Health and Human Services, all ex officio, and of two members of

the public (both of whom may not be from the same political party),

who shall be nominated by the President for a term of four years

and subject to confirmation by the Senate" for "Secretary of

Health, Education, and Welfare, all ex officio" in provisions

preceding par. (1), and inserted provision that a person serving on

the Board of Trustees shall not be considered to be a fiduciary and

shall not be personally liable for actions taken in such capacity

with respect to the Trust Funds, in provisions following par. (5).

Pub. L. 98-21, Sec. 154(a), in provisions following par. (5),

inserted provision that the report referred to in par. (2) shall

include an actuarial opinion by the Chief Actuary of the Social

Security Administration certifying that the techniques and

methodologies used are generally accepted within the actuarial

profession and that the assumptions and cost estimates used are

reasonable, and provided further that the certification shall not

refer to economic assumptions underlying the Trustee's report.

Subsec. (l)(1). Pub. L. 98-21, Sec. 142(a)(1), substituted

reference to January 1988 for reference to January 1983, and

inserted ", subject to paragraph (5)," after "such Trust Fund, or".

Subsec. (l)(2). Pub. L. 98-21, Sec. 142(a)(2)(A), substituted "on

the last day of each month after such loan is made" for "from time

to time", substituted "the total interest accrued to such day" for

"interest", and inserted "(even if such an investment would earn

interest at a rate different than the rate earned by investments

redeemed by the lending fund in order to make the loan)".

Subsec. (l)(3). Pub. L. 98-21, Sec. 142(a)(3), designated

existing provisions as subpar. (A) and added subpars. (B) and (C).

Subsec. (l)(5). Pub. L. 98-21, Sec. 142(a)(4), added par. (5).

Subsec. (m). Pub. L. 98-21, Sec. 152(a), added subsec. (m).

1981 - Subsec. (l). Pub. L. 97-123 added subsec. (l).

1980 - Subsec. (b)(1)(H) to (M). Pub. L. 96-403, Sec. 1(a),

substituted in cl. (H) reference to Jan. 1, 1980, for Jan. 1, 1981;

added cls. (I) and (J); redesignated as cl. (K) former cl. (I)

substituting reference to Dec. 31, 1981, for Dec. 31, 1980; and

redesignated as cls. (L) and (M) former cls. (J) and (K).

Subsec. (b)(2)(H) to (M). Pub. L. 96-403, Sec. 1(b), substituted

in cl. (H) reference to Jan. 1, 1980, for Jan. 1, 1981; added cls.

(I) and (J); redesignated as cl. (K) former cl. (I) substituting

reference to Dec. 31, 1981, for Dec. 31, 1980; and redesignated as

cls. (L) and (M) former cls. (J) and (K).

Subsec. (j). Pub. L. 96-265, Sec. 310(a), added subsec. (j).

Subsec. (k). Pub. L. 96-265, Sec. 505(a)(5), added subsec. (k).

1977 - Subsec. (b)(1)(G) to (K). Pub. L. 95-216, Sec. 102(a)(1),

substituted "(G) 1.55 per centum of the wages (as so defined) paid

after December 31, 1977, and before January 1, 1979, and so

reported, (H) 1.50 per centum of the wages (as so defined) paid

after December 31, 1978, and before January 1, 1981, and so

reported, (I) 1.65 per centum of the wages (as so defined) paid

after December 31, 1980, and before January 1, 1985, and so

reported, (J) 1.90 per centum of the wages (as so defined) paid

after December 31, 1984, and before January 1, 1990, and so

reported, and (K) 2.20 per centum of the wages (as so defined) paid

after December 31, 1989, and so reported" for "(G) 1.2 per centum

of the wages (as so defined) paid after December 31, 1977, and

before January 1, 1981, and so reported, (H) 1.3 per centum of the

wages (as so defined) paid after December 31, 1980, and before

January 1, 1986, and so reported, (I) 1.4 per centum of the wages

(as so defined) paid after December 31, 1985, and before January 1,

2011, and so reported, and (J) 1.7 per centum of the wages (as so

defined) paid after December 31, 2010, and so reported".

Subsec. (b)(2)(G) to (K). Pub. L. 95-216, Sec. 102(a)(2),

substituted "(G) 1.090 per centum of the amount of self-employment

income (as so defined) so reported for any taxable year beginning

after December 31, 1977, and before January 1, 1979, (H) 1.0400 per

centum of the amount of self-employment income (as so defined) so

reported for any taxable year beginning after December 31, 1978,

and before January 1, 1981, (I) 1.2375 per centum of the amount of

self-employment income (as so defined) so reported for any taxable

year beginning after December 31, 1980, and before January 1, 1985,

(J) 1.4250 per centum of the amount of self-employment income (as

so defined) so reported for any taxable year beginning after

December 31, 1984, and before January 1, 1990, and (K) 1.650 per

centum of the amount of self-employment income (as so defined) so

reported for any taxable year beginning after December 31, 1989"

for "(G) 0.850 of 1 per centum of the amount of self-employment

income (as so defined) so reported for any taxable year beginning

after December 31, 1977, and before January 1, 1981, (H) 0.920 of 1

per centum of the amount of self-employment income (as so defined)

so reported for any taxable year beginning after December 31, 1980,

and before January 1, 1986, (I) 0.990 of 1 per centum of the amount

of self-employment income (as so defined) so reported for any

taxable year beginning after December 31, 1985, and before January

1, 2011, and (J) 1 per centum of the amount of self-employment

income (as so defined) so reported for any taxable year beginning

after December 31, 2010".

1976 - Subsec. (g)(1). Pub. L. 94-202, Sec. 8(d)(1), incorporated

changes in the operations and responsibilities of the Managing

Trustee of the Trust Funds and the Secretary of Health, Education,

and Welfare occasioned by changes in the annual method of reporting

wages for social security purposes, by directing that estimated

amounts paid from the Trust Funds into the Treasury, to replace

amounts expended from the general fund in the Treasury, be

estimated by both the Managing Trustee and the Secretary and that

the Secretary determine the portion of costs attributable to the

general fund in the Treasury and the portion attributable to the

Trust Funds at the close of the fiscal year, by striking out

reference to section 1381 of this title, and by inserting reference

to par. (4) of this section, section 432 of this title, and

subchapter E of chapter 1 and subchapter A of chapter 9 of the

Internal Revenue Code of 1939.

Subsec. (g)(4). Pub. L. 94-202, Sec. 8(d)(2), added par. (4).

1973 - Subsec. (b)(1)(E) to (J). Pub. L. 93-233, Sec. 7(a),

substituted in: cl. (E) "January 1, 1974" for "January 1, 1978";

cl. (F) "December 31, 1973" and "January 1, 1978" for "December 31,

1977" and January 1, 2011"; cl. (G) "1.2" for "1.5" per centum and

"paid after December 31, 1977, and before January 1, 1981" for

"paid after December 31, 2010," and added cls. (H) to (J).

Subsec. (b)(2)(E) to (J). Pub. L. 93-233, Sec. 7(b), substituted

in: cl. (E) "January 1, 1974" for January 1, 1978"; cl. (F) "0.815

of 1 per centum" for "0.84 per centum" and "as reported for any

taxable year beginning after December 31, 1973, and before January

1, 1978" for "so reported for any taxable year beginning after

December 31, 1977, and before January 1, 2011"; cl. (G) "0.850 of 1

percentum" for "0.895 per centum" and "taxable year beginning after

December 31, 1977, and before January 1, 1981" for "taxable year

beginning after December 31, 2010"; and added cls. (H) to (J).

1972 - Subsec. (a). Pub. L. 92-603, Sec. 132(a), inserted "such

gifts and bequests as may be made as provided in subsection (i)(1)

of this section, and" after "in addition," in provisions preceding

par. (1).

Subsec. (b). Pub. L. 92-603, Sec. 132(b), inserted "such gifts

and bequests as may be made as provided in subsection (i)(1) of

this section, and" after "consist of" in provisions preceding par.

(1).

Subsec. (b)(1). Pub. L. 92-603, Sec. 136(a), substituted "1.1"

for "1.0" in cl. (E), "1.15" for "1.1" in cl. (F), and "1.5" for

"1.4" in cl. (G).

Pub. L. 92-336, Sec. 205(a), struck out "and" before "(D)",

inserted reference to wages paid before January 1, 1973, in cl.

(D), and added cls. (E), (F), and (G).

Subsec. (b)(2). Pub. L. 92-603, Sec. 136(b), substituted "0.795"

for "0.75" in cl. (E), "0.84" for "0.825" in cl. (F), and "0.895"

for "0.915" in cl. (G).

Pub. L. 92-336, Sec. 205(b), struck out "and" before "(D)",

inserted reference to self-employment income before January 1,

1973, in cl. (D), and added cls. (E), (F), and (G).

Subsec. (g)(1)(A). Pub. L. 92-603, Sec. 305(a), inserted

references to subchapter XVI of this chapter and provisions

relating to the general revenues of the United States with respect

to subchapter XVI of this chapter and to the appropriations made

pursuant to section 1381 of this title.

Subsec. (i). Pub. L. 92-603, Sec. 132(c), added subsec. (i).

1969 - Subsec. (b)(1). Pub. L. 91-172, Sec. 1005(a), inserted

reference to wages paid before Jan. 1, 1969, and inserted provision

for the appropriation of amounts equal to 1.10 per centum of wages

paid after Dec. 31, 1969.

Subsec. (b)(2). Pub. L. 91-172, Sec. 1005(b), inserted reference

to self-employment income before Jan. 1, 1970, and inserted

provision for the appropriation of 0.825 of 1 percent of the amount

of self-employment income for taxable years beginning after Dec.

31, 1969.

1968 - Subsec. (b)(1). Pub. L. 90-248, Sec. 110(a), designated

existing provisions as cls. (A) and (B), inserted "and before

January 1, 1968," after "1965," in cl. (B), and added cl. (C).

Subsec. (b)(2). Pub. L. 90-248, Sec. 110(b), designated existing

provisions as cls. (A) and (B), inserted "and before January 1,

1968, and" after "1965," in cl. (B), and added cl. (C).

Subsec. (c)(2). Pub. L. 90-248, Sec. 169(a), substituted "April"

for "March".

Subsec. (c). Pub. L. 90-248, Sec. 169(b), inserted penultimate

sentence for inclusion in reports of board of trustees to Congress

of an actuarial analysis of the benefit disbursements made from the

Federal Old-Age and Survivors Insurance Trust Fund with respect to

disabled beneficiaries.

1965 - Subsec. (a)(3). Pub. L. 89-97, Sec. 108(a)(1), inserted

"(other than sections 3101(b) and 3111(b))" after "chapter 21" in

two places.

Subsec. (a)(4). Pub. L. 89-97, Sec. 108(a)(2), inserted "(other

than section 1401(b))" after "chapter 2" and "such subchapter or

chapter".

Subsec. (b)(1). Pub. L. 89-97, Sec. 305(a), inserted "and before

January 1, 1966," after "December 31, 1956," and "and 0.70 of 1 per

centum of the wages (as so defined) paid after December 31, 1965,

and so reported," after "1954,".

Subsec. (b)(2). Pub. L. 89-97, Sec. 305(b), inserted "and before

January 1, 1966, and 0.525 of 1 per centum of the amount of

self-employment income (as so defined) so reported for any taxable

year beginning after December 31, 1965," after "December 31,

1956,".

Subsec. (c). Pub. L. 89-97, Sec. 327, extended from once each six

months to once each calendar year the minimum number of times the

Board of Trustees must meet.

Subsec. (g)(1). Pub. L. 89-97, Sec. 108(a)(3), included the

Federal Hospital Insurance Trust Fund and the Federal Supplementary

Medical Insurance Trust Fund among the Trust Funds available for

reimbursement of the Treasury for administrative costs of this

subchapter and subchapter XVIII of this chapter, deleted references

to administrative costs of subchapter VIII of this chapter and

subchapter E of chapter 1 and subchapter 9 of the Internal Revenue

Code of 1939, and also provided for adjustment among the Trust

Funds during each fiscal year so that the Funds bear the

proportionate share of the administration costs.

Subsec. (g)(2). Pub. L. 89-97, Sec. 108(a)(4), inserted "imposed

under section 3101(a)" after "the amount estimated by him as

taxes".

Subsec. (h). Pub. L. 89-97, Sec. 108(a)(5), inserted "(other than

section 426 of this title)" after "this subchapter".

1960 - Subsec. (c). Pub. L. 86-778, Sec. 701(a)-(c), required the

Board of Trustees to meet not less frequently than once each six

months, struck out provisions from cl. (3) which required the Board

to report immediately to the Congress whenever the Board is of the

opinion that during the ensuing five fiscal years either of the

Trust Funds will exceed three times the highest annual expenditures

from such Trust Fund anticipated during that five-fiscal-year

period, and added cl. (5).

Subsec. (d). Pub. L. 86-778, Sec. 701(d), substituted "shall bear

interest at a rate equal to the average market yield (computed by

the Managing Trustee on the basis of market quotations as of the

end of the calendar month next preceding the date of such issue) on

all marketable interest-bearing obligations of the United States

then forming a part of the public debt which are not due or

callable until after the expiration of four years from the end of

such calendar month" for "bear interest at a rate equal to the

average rate of interest, computed as to the end of the calendar

month next preceding the date of such issue, borne by all

marketable interest-bearing obligations of the United States then

forming a part of the Public Debt that are not due or callable

until after the expiration of five years from the date of original

issue", and substituted provisions authorizing the purchase of

other interest-bearing obligations when the Managing Trustee

determines that it is in the public interest for provisions which

authorized the issuance of obligations by the Trust Funds only if

the Managing Trustee determined that the purchase of other

obligations was not in the public interest.

Subsec. (e). Pub. L. 86-778, Sec. 701(e), substituted

"public-debt obligations" for "special obligations" in two places.

1959 - Subsec. (d). Pub. L. 86-346 substituted "on original issue

at the issue price" for "on original issue at par".

1958 - Subsec. (h). Pub. L. 85-840 provided that benefit payments

required to be made under subsection (b), (c), or (d) of section

402 of this title to individuals entitled to benefits on the basis

of the wages and self-employment income of an individual entitled

to disability insurance benefits be made only from the Federal

Disability Insurance Trust Fund.

1956 - Act Aug. 1, 1956, amended section generally, inserting

references to taxes imposed by the Internal Revenue Code of 1954,

substituting "Secretary of Health, Education, and Welfare" for

"Federal Security Administrator," creating the Federal Disability

Insurance Trust Fund, requiring obligations issued for purchase by

the Trust Funds to have maturities fixed with due regard for the

needs of the Trust Funds, authorizing to be made available for

expenditure out of the Trust Funds such amounts as Congress deems

necessary to pay costs of administration of subchapter, and

requiring the Secretary of Health, Education, and Welfare to

analyze costs of administration so that each Trust Fund may be

charged with its proper share.

1950 - Subsec. (a). Act Aug. 28, 1950, Sec. 109(a)(1)-(3),

substituted "such amounts as may be appropriated to, or deposited

in, the Trust Fund" for "such amounts as may be appropriated to the

Trust Fund" in second sentence, simplified the accounting and

collection processes required for determining the amounts

appropriated to the trust fund, as set out in third sentence, and

struck out fourth sentence authorizing appropriation of additional

funds.

Subsec. (b). Act Aug. 28, 1950, Sec. 109(a)(4)-(8), substituted

"Federal Security Administrator" for "Chairman of the Social

Security Board", changed filing date for annual report from first

day of each regular session of Congress to March 1 of each year,

added par. (4), inserted sentence to require report to be printed

as a House document, and made Commissioner of Social Security the

Secretary of the Board of Trustees.

Subsec. (f). Act. Aug. 28, 1950, Sec. 109(a)(9), changed

reference in text from Title II of the Federal Insurance

Contributions Act to subchapter A of chapter 9 and subchapter E of

chapter 1 of the Internal Revenue Code of 1939 to avoid confusion

and to include the new provisions of such Code relating to the

collection of taxes from the self-employed.

1944 - Subsec. (a). Act Feb. 25, 1944, inserted sentence

authorizing appropriation of additional funds.

1939 - Act Aug. 10, 1939, amended section generally.

EFFECTIVE DATE OF 1998 AMENDMENT

Pub. L. 105-277, div. J, title IV, Sec. 4005(c), Oct. 21, 1998,

112 Stat. 2681-912, provided that: "The amendments made by

subsection (b) [amending this section] shall apply to benefits paid

on or after the first day of the second month beginning after the

month in which this Act is enacted [October 1998]."

EFFECTIVE DATE OF 1994 AMENDMENTS

Section 3(c) of Pub. L. 103-387 provided that: "The amendments

made by this section [amending this section] shall apply with

respect to wages paid after December 31, 1993, and self-employment

income for taxable years beginning after such date."

Section 110 of title I of Pub. L. 103-296 provided that:

"(a) In General. - Except as otherwise provided in this title,

this title [see Tables for classification], and the amendments made

by such title, shall take effect March 31, 1995.

"(b) Transition Rules. - Section 106 [amending section 5315 of

Title 5, Government Organization and Employees, and enacting

provisions set out as a note under section 901 of this title] shall

take effect on the date of the enactment of this Act [Aug. 15,

1994].

"(c) Exceptions. - The amendments made by section 103 [amending

section 903 of this title], subsections (b)(4) and (c) of section

105 [enacting provisions set out in a note under section 901 of

this title], and subsections (a)(1), (e)(1), (e)(2), (e)(3), and

(l)(2) of section 108 [enacting section 913 of this title and

amending sections 5312, 5313, and 5315 of Title 5 and section 11 of

Pub. L. 95-452, Inspector General Act of 1978, set out in the

Appendix to Title 5] shall take effect on the date of the enactment

of this Act."

Section 301(c) of Pub. L. 103-296 provided that:

"(1) In general. - The amendments made by this section [amending

this section] shall apply with respect to obligations issued, and

payments made, after 60 days after the date of the enactment of

this Act [Aug. 15, 1994].

"(2) Treatment of outstanding obligations. - Not later than 60

days after the date of the enactment of this Act, the Secretary of

the Treasury shall issue to the Federal Old-Age and Survivors

Insurance Trust Fund or the Federal Disability Insurance Trust

Fund, as applicable, a paper instrument, in the form of a bond,

note, or certificate of indebtedness, for each obligation which has

been issued to the Trust Fund under section 201(d) of the Social

Security Act [subsec. (d) of this section] and which is outstanding

as of such date. Each such document shall set forth the principal

amount, date of maturity, and interest rate of the obligation, and

shall state on its face that the obligation shall be incontestable

in the hands of the Trust Fund to which it was issued, that the

obligation is supported by the full faith and credit of the United

States, and that the United States is pledged to the payment of the

obligation with respect to both principal and interest."

Section 321(c)(1)(A)(ii) of Pub. L. 103-296 provided that: "The

amendments made by clause (i) [amending this section] shall apply

only with respect to periods beginning on or after the date of the

enactment of this Act [Aug. 15, 1994]."

Section 321(c)(1)(B)(ii) of Pub. L. 103-296 provided that: "The

amendments made by clause (i) [amending this section] shall apply

only with respect to wages paid on or after January 1, 1995."

EFFECTIVE DATE OF 1990 AMENDMENT

Section 5106(d) of Pub. L. 101-508 provided that: "The amendments

made by this section [amending this section and sections 406,

1320a-6, 1383, and 1395i of this title] shall apply with respect to

determinations made on or after July 1, 1991, and to reimbursement

for travel expenses incurred on or after April 1, 1991."

Section 5115(c)[(b)] of Pub. L. 101-508 provided that: "The

amendments made by this section [amending this section] shall

become effective on the first day of the month following the month

in which this Act is enacted [November 1991]."

Amendment by section 13304 of Pub. L. 101-508 effective for

annual reports of the Board of Trustees issued in or after calendar

year 1991, see section 13306 of Pub. L. 101-508, set out as a note

under section 632 of Title 2, The Congress.

EFFECTIVE DATE OF 1989 AMENDMENT

Section 202(b) of Pub. L. 101-234 provided that: "The provisions

of subsection (a) [set out below] shall take effect January 1,

1990, and the repeal of section 211 of MCCA [Pub. L. 100-360, which

amended sections 1395r, 1395w, and 1395mm of this title and enacted

provisions set out as a note under section 1395r of this title]

shall apply to premiums for months beginning after December 31,

1989."

EFFECTIVE DATE OF 1988 AMENDMENT

Section 8005(b) of Pub. L. 100-647 provided that: "The amendments

made by this section [amending this section and sections 1395i and

1395t of this title] shall apply to members of the Boards of

Trustees of the Federal Old-Age and Survivors Insurance Trust Fund

and the Federal Disability Insurance Trust Fund, of the Federal

Hospital Insurance Trust Fund, and of the Federal Supplementary

Medical Insurance Trust Fund serving on such Boards of Trustees as

members of the public on or after the date of the enactment of this

Act [Nov. 10, 1988]."

EFFECTIVE DATE OF 1986 AMENDMENT

Section 9213(c) of Pub. L. 99-272 provided that: "The amendments

made by this section [amending this section and sections 1395i and

1395t of this title] shall become effective on the date of the

enactment of this Act [Apr. 7, 1986]."

EFFECTIVE DATE OF 1984 AMENDMENT

Section 2664 of Pub. L. 98-369 provided that:

"(a) Except as otherwise specifically provided, the amendments

made by sections 2661 and 2662 [amending this section and sections

402, 403, 405, 409, 410, 415, 416, 423, 428, and 429 of this title

and sections 86, 134, 422A, 3121, 3306, and 6334 of Title 26,

Internal Revenue Code, enacting provisions set out as notes under

sections 402 and 403 of this title and sections 3121 and 3306 of

Title 26, and amending provisions set out as notes under sections

415 and 902 of this title, section 3121 of Title 26, and section

3023 [now 5123] of Title 38, Veterans' Benefits] shall be effective

as though they had been included in the enactment of the Social

Security Amendments of 1983 (Public Law 98-21).

"(b) Except to the extent otherwise specifically provided in this

subtitle [subtitle D (Secs. 2661-2664) of Pub. L. 98-369], the

amendments made by section 2663 [amending this section and sections

402, 403, 405, 408-410, 411, 413, 415, 416-418, 421-423, 426, 428,

430, 431, 433, 502, 503, 602, 603, 606, 607, 609, 610, 614, 615,

620, 631, 632, 633, 634, 636, 641, 643-645, 652-654, 656, 660, 662,

674, 902, 903, 907, 1101, 1104, 1108, 1301, 1302, 1306, 1307,

1314-1316, 1320, 1320a-5, 1320b-1, 1381a-1382a, 1382c, 1382d,

1382g, 1382j, 1383, 1395i, 1395s-1395u, 1396, 1397a, and 1397e of

this title and sections 51, 1402, 3121, 6057, 6103, and 6511 of

Title 26, repealing sections 1331-1336 of this title, and enacting

provisions set out as notes under sections 1301 and 1307 of this

title] shall be effective on the date of the enactment of this Act

[July 18, 1984]; but none of such amendments shall be construed as

changing or affecting any right, liability, status, or

interpretation which existed (under the provisions of law involved)

before that date."

EFFECTIVE DATE OF 1983 AMENDMENT

Section 141(c) of Pub. L. 98-21 provided that: "The amendments

made by this section [amending this section and section 1395i of

this title] shall become effective on the first day of the month

following the month in which this Act is enacted [April 1983]."

Section 142(a)(2)(B) of Pub. L. 98-21 provided that: "The

amendment made by this paragraph [amending this section] shall

apply with respect to months beginning more than thirty days after

the date of enactment of this Act [Apr. 20, 1983]."

Section 152(b) of Pub. L. 98-21 provided that: "The amendment

made by subsection (a) [amending this section] shall apply with

respect to all checks for benefits under title II of the Social

Security Act [this subchapter] which are issued on or after the

first day of the twenty-fourth month following the month in which

this Act is enacted [April 1983]."

Section 154(e) of Pub. L. 98-21 provided that: "The amendments

made by this section [amending this section and sections 1395i and

1395t of this title] shall take effect on the date of the enactment

of this Act [Apr. 20, 1983]."

Section 341(d) of Pub. L. 98-21 provided that: "The amendments

made by this section [amending this section and sections 1395i and

1395t of this title] shall become effective on the date of

enactment of this Act [Apr. 20, 1983]."

EFFECTIVE DATE OF 1981 AMENDMENT

Section 1(c) of Pub. L. 97-123 provided that: "The amendments

made by this section [amending this section and section 1395i of

this title] shall be effective on the date of the enactment of this

Act [Dec. 29, 1981]."

EFFECTIVE DATE OF 1980 AMENDMENT

Section 2 of Pub. L. 96-403 provided that: "The amendments made

by the first section of this Act [amending this section] shall

apply with respect to remuneration paid, and taxable years

beginning after December 31, 1979."

EFFECTIVE DATE OF 1977 AMENDMENT

Amendment by Pub. L. 95-216 applicable with respect to

remuneration paid or received, and taxable years beginning after

1977, see section 104 of Pub. L. 95-216, set out as a note under

section 1401 of Title 26, Internal Revenue Code.

EFFECTIVE DATE OF 1972 AMENDMENT

Section 132(f) of Pub. L. 92-603 provided that: "The amendments

made by this section [amending this section and sections 1395i and

1395t of this title] shall apply with respect to gifts and bequests

received after the date of enactment of this Act [Oct. 30, 1972]."

Section 305(c) of Pub. L. 92-603 provided that: "The provisions

of this section [amending this section and enacting provisions set

out as a note under this section] shall become effective on the

date of enactment of this Act [Oct. 30, 1972]."

EFFECTIVE DATE OF 1960 AMENDMENT

Section 701(f) of Pub. L. 86-778 provided that: "The amendments

made by this section [amending this section] shall take effect on

the first day of the first month beginning after the date of the

enactment of this Act [Sept. 13, 1960]."

EFFECTIVE DATE OF 1958 AMENDMENT

Amendment by Pub. L. 85-840 applicable with respect to monthly

benefits under this subchapter for months after August 1958, but

only if an application for such benefits is filed on or after Aug.

28, 1958, see section 207(a) of Pub. L. 85-840, set out as a note

under section 416 of this title.

EFFECTIVE DATE OF 1939 AMENDMENT

Section 201 of act Aug. 10, 1939, provided that the amendment

made by that section is effective Jan. 1, 1940.

CONSTRUCTION OF 1994 AMENDMENT

Section 321(d) of Pub. L. 103-296 provided that:

"(1) The preceding provisions of this section [amending this

section and sections 402, 403, 405, 408 to 411, 413, 415, 416, 418,

423, 429, 430, and 432 of this title, and enacting provisions set

out as notes under this section and sections 402 and 430 of this

title] shall be construed only as technical and clerical

corrections and as reflecting the original intent of the provisions

amended thereby.

"(2) Any reference in title II of the Social Security Act [this

subchapter] to the Internal Revenue Code of 1986 [26 U.S.C. 1 et

seq.] shall be construed to include a reference to the Internal

Revenue Code of 1954 to the extent necessary to carry out the

provisions of paragraph (1)."

TERMINATION OF REPORTING REQUIREMENTS

For termination, effective May 15, 2000, of provisions of law

requiring submittal to Congress of any annual, semiannual, or other

regular periodic report listed in House Document No. 103-7 (in

which certain reporting requirements under subsec. (c)(2) of this

section are listed in item 7 on page 143), see section 3003 of Pub.

L. 104-66, as amended, and section 1(a)(4) [div. A, Sec. 1402(1)]

of Pub. L. 106-554, set out as notes under section 1113 of Title

31, Money and Finance.

NO IMPACT ON SOCIAL SECURITY TRUST FUNDS

Pub. L. 107-147, title V, Sec. 501, Mar. 9, 2002, 116 Stat. 58,

provided that:

"(a) In General. - Nothing in this Act [see Tables for

classification] (or an amendment made by this Act) shall be

construed to alter or amend title II of the Social Security Act

[this subchapter] (or any regulation promulgated under that Act

[this chapter]).

"(b) Transfers. -

"(1) Estimate of secretary. - The Secretary of the Treasury

shall annually estimate the impact that the enactment of this Act

has on the income and balances of the trust funds established

under section 201 of the Social Security Act (42 U.S.C. 401).

"(2) Transfer of funds. - If, under paragraph (1), the

Secretary of the Treasury estimates that the enactment of this

Act has a negative impact on the income and balances of the trust

funds established under section 201 of the Social Security Act

(42 U.S.C. 401), the Secretary shall transfer, not less

frequently than quarterly, from the general revenues of the

Federal Government an amount sufficient so as to ensure that the

income and balances of such trust funds are not reduced as a

result of the enactment of this Act."

IMPACT OF PUB. L. 107-134 ON SOCIAL SECURITY TRUST FUNDS

Pub. L. 107-134, title III, Sec. 301, Jan. 23, 2002, 115 Stat.

2444, provided that:

"(a) In General. - Nothing in this Act [see Short Title of 2002

Amendment note set out under section 1 of Title 26, Internal

Revenue Code] (or an amendment made by this Act) shall be construed

to alter or amend title II of the Social Security Act [this

subchapter] (or any regulation promulgated under that Act [this

chapter]).

"(b) Transfers. -

"(1) Estimate of secretary. - The Secretary of the Treasury

shall annually estimate the impact that the enactment of this Act

has on the income and balances of the trust funds established

under section 201 of the Social Security Act (42 U.S.C. 401).

"(2) Transfer of funds. - If, under paragraph (1), the

Secretary of the Treasury estimates that the enactment of this

Act has a negative impact on the income and balances of the trust

funds established under section 201 of the Social Security Act

(42 U.S.C. 401), the Secretary shall transfer, not less

frequently than quarterly, from the general revenues of the

Federal Government an amount sufficient so as to ensure that the

income and balances of such trust funds are not reduced as a

result of the enactment of this Act."

STUDY BY GENERAL ACCOUNTING OFFICE OF EXISTING COORDINATION OF THE

DI AND SSI PROGRAMS AS THEY RELATE TO INDIVIDUALS ENTERING OR

LEAVING CONCURRENT ENTITLEMENT

Pub. L. 106-170, title III, Sec. 303(b), Dec. 17, 1999, 113 Stat.

1904, provided that:

"(1) Study. - As soon as practicable after the date of the

enactment of this Act [Dec. 17, 1999], the Comptroller General of

the United States shall undertake a study to evaluate the

coordination under current law of the disability insurance program

under title II of the Social Security Act (42 U.S.C. 401 et seq.)

and the supplemental security income program under title XVI of

such Act (42 U.S.C. 1381 et seq.), as such programs relate to

individuals entering or leaving concurrent entitlement under such

programs. In such study, the Comptroller General shall specifically

address the effectiveness of work incentives under such programs

with respect to such individuals and the effectiveness of coverage

of such individuals under titles XVIII and XIX of such Act (42

U.S.C. 1395 et seq., 1396 et seq.).

"(2) Report. - Not later than 3 years after the date of the

enactment of this Act, the Comptroller General shall transmit to

the Committee on Ways and Means of the House of Representatives and

the Committee on Finance of the Senate a written report presenting

the results of the Comptroller General's study conducted pursuant

to this subsection, together with such recommendations for

legislative or administrative changes as the Comptroller General

determines are appropriate."

USE OF CONTINUING DISABILITY REVIEW FUNDS AND REPORT REQUIREMENT

Section 103(d) of Pub. L. 104-121, as amended by Pub. L. 104-193,

title II, Sec. 211(d)(5)(D), Aug. 22, 1996, 110 Stat. 2192,

provided that:

"(1) In general. - The Commissioner of Social Security shall

ensure that funds made available for continuing disability reviews

(as defined in section 201(g)(1)(A) of the Social Security Act

[subsec. (g)(1)(A) of this section]) are used, to the greatest

extent practicable, to maximize the combined savings in the

old-age, survivors, and disability insurance, supplemental security

income, Medicare, and medicaid programs, except that the amounts

appropriated pursuant to the authorization and discretionary

spending allowance provisions in section 211(d)(2)(5) of the

Personal Responsibility and Work Opportunity Reconciliation Act of

1996 [probably means section 211(d)(5) of Pub. L. 104-193, which

amended sections 665e and 901 of Title 2, The Congress, enacted

provisions set out as a note under section 1382c of this title, and

amended this note] shall be used only for continuing disability

reviews and redeterminations under title XVI of the Social Security

Act [subchapter XVI of this chapter].

"(2) Report. - The Commissioner of Social Security shall provide

annually (at the conclusion of each of the fiscal years 1996

through 2002) to the Congress a report on continuing disability

reviews which includes -

"(A) the amount spent on continuing disability reviews in the

fiscal year covered by the report, and the number of reviews

conducted, by category of review;

"(B) the results of the continuing disability reviews in terms

of cessations of benefits or determinations of continuing

eligibility, by program; and

"(C) the estimated savings over the short-, medium-, and

long-term to the old-age, survivors, and disability insurance,

supplemental security income, Medicare, and medicaid programs

from continuing disability reviews which result in cessations of

benefits and the estimated present value of such savings."

REPEAL OF CHANGES IN MEDICARE PART B MONTHLY PREMIUM AND FINANCING

Section 202(a) of Pub. L. 101-234 provided that: "Sections 211

through 213 (other than sections 211(b) and 211(c)(3)(B)) of MCCA

[Pub. L. 100-360, which enacted sections 1395t-1 and 1395t-2 of

this title, amended this section and sections 1395i, 1395l, 1395r,

1395s, 1395t, 1395w, and 1395mm of this title, and enacted

provisions set out as a note under section 1395r of this title] are

repealed and the provisions of law amended or repealed by such

sections are restored or revised as if such sections had not been

enacted."

TRANSFER OF EQUIVALENT OF 1983 TAX INCREASES TO PAYOR FUNDS;

REPORTS

Section 121(e) of Pub. L. 98-21, as amended by Pub. L. 99-514,

Sec. 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 103-66, title XIII,

Sec. 13215(c), Aug. 10, 1993, 107 Stat. 476; Pub. L. 104-188, title

I, Sec. 1703(n)(12), Aug. 20, 1996, 110 Stat. 1877, provided that:

"(1) In general. - (A) There are hereby appropriated to each

payor fund amounts equivalent to (i) the aggregate increase in tax

liabilities under chapter 1 of the Internal Revenue Code of 1986

[26 U.S.C. 1 et seq.] which is attributable to the application of

sections 86 and 871(a)(3) of such Code (as added by this section)

[26 U.S.C. 86, 871(a)(3)] to payments from such payor fund, less

(ii) the amounts equivalent to the aggregate increase in tax

liabilities under chapter 1 of the Internal Revenue Code of 1986

which is attributable to the amendments to section 86 of such Code

made by section 13215 of the Revenue Reconciliation Act of 1993

[Pub. L. 103-66].

"(B) There are hereby appropriated to the hospital insurance

trust fund amounts equal to the increase in tax liabilities

described in subparagraph (A)(ii). Such appropriated amounts shall

be transferred from the general fund of the Treasury on the basis

of estimates of such tax liabilities made by the Secretary of the

Treasury. Transfers shall be made pursuant to a schedule made by

the Secretary of the Treasury that takes into account estimated

timing of collection of such liabilities.

"(2) Transfers. - The amounts appropriated by paragraph (1)(A) to

any payor fund shall be transferred from time to time (but not less

frequently than quarterly) from the general fund of the Treasury on

the basis of estimates made by the Secretary of the Treasury of the

amounts referred to in such paragraph. Any such quarterly payment

shall be made on the first day of such quarter and shall take into

account social security benefits estimated to be received during

such quarter. Proper adjustments shall be made in the amounts

subsequently transferred to the extent prior estimates were in

excess of or less than the amounts required to be transferred.

"(3) Definitions. - For purposes of this subsection -

"(A) Payor fund. - The term 'payor fund' means any trust fund

or account from which payments of social security benefits are

made.

"(B) Hospital insurance trust fund. - The term 'hospital

insurance trust fund' means the fund established pursuant to

section 1817 of the Social Security Act [section 1395i of this

title].

"(C) Social security benefits. - The term 'social security

benefits' has the meaning given such term by section 86(d)(1) of

the Internal Revenue Code of 1986 [26 U.S.C. 86(d)(1)].

"(4) Reports. - The Secretary of the Treasury shall submit annual

reports to the Congress and to the Secretary of Health and Human

Services and the Railroad Retirement Board on -

"(A) the transfers made under this subsection during the year,

and the methodology used in determining the amount of such

transfers and the funds or account to which made, and

"(B) the anticipated operation of this subsection during the

next 5 years."

[For termination, effective May 15, 2000, of provisions relating

to submission of annual reports to Congress in section 121(e)(4) of

Pub. L. 98-21, set out above, see section 3003 of Pub. L. 104-66,

as amended, set out as a note under section 1113 of Title 31, Money

and Finance, and item 17 on page 143 of House Document No. 103-7.]

REIMBURSEMENT TO TRUST FUNDS FOR UNNEGOTIATED BENEFIT CHECKS

Section 152(c) of Pub. L. 98-21 provided that:

"(1) The Secretary of the Treasury shall transfer from the

general fund of the Treasury to the Federal Old-Age and Survivors

Insurance Trust Fund and to the Federal Disability Insurance Trust

Fund, in the month following the month in which this Act is enacted

[April 1983] and in each of the succeeding 30 months, such sums as

may be necessary to reimburse such Trust Funds in the total amount

of all checks (including interest thereof) which he and the

Secretary of Health and Human Services jointly determine to be

unnegotiated benefit checks, to the extent provided in advance in

appropriation Acts. After any amounts authorized by this subsection

have been transferred to a Trust Fund with respect to any benefit

check, the provisions of paragraphs (3) and (4) of section 201(m)

of the Social Security Act [subsec. (m)(3), (4) of this section]

(as added by subsection (a) of this section) shall be applicable to

such check.

"(2) As used in paragraph (1), the term 'unnegotiated benefit

checks' means checks for benefits under title II of the Social

Security Act [this subchapter] which are issued prior to the

twenty-fourth month following the month in which this Act is

enacted [April 1983], which remain unnegotiated after the sixth

month following the date on which they were issued, and with

respect to which no transfers have previously been made in

accordance with the first sentence of such paragraph."

STUDY OF FLOAT PERIOD OF MONTHLY INSURANCE BENEFIT CHECKS

Section 153 of Pub. L. 98-21 directed Secretary of Health and

Human Services and Secretary of the Treasury jointly to undertake a

thorough study with respect to period of time (referred to as

"float period") between issuance of checks from general fund of

Treasury in payment of monthly insurance benefits under title II of

the Social Security Act [this subchapter] and transfer to general

fund from Federal Old-Age and Survivors Insurance Trust Fund or

Federal Disability Insurance Trust Fund, as applicable, of amounts

necessary to compensate general fund for issuance of such checks,

with Secretaries to submit a report to President an Congress not

later than twelve months after Apr. 20, 1983, on their findings as

to necessity of making adjustments in procedures governing payment

of monthly insurance benefits.

DUE DATE FOR 1983 REPORT ON OPERATION AND STATUS OF TRUST FUND

Section 154(d) of Pub. L. 98-21 provided that notwithstanding

sections 401(c)(2), 1395i(b)(2), and 1395t(b)(2) of this title, the

annual reports of the Boards of Trustees of the Trust Funds which

are required in calendar year 1983 under those sections may be

filed at any time not later than forty-five days after Apr. 20,

1983.

STUDY RELATING TO ESTABLISHMENT OF TIME LIMITATIONS FOR DECISIONS

ON CLAIMS FOR BENEFITS; REPORT

Section 308 of Pub. L. 96-265 directed Secretary of Health and

Human Services to submit to Congress, no later than July 1, 1980, a

report recommending establishment of appropriate time limitations

governing decisions on claims for benefits under this subchapter,

taking into account both need for expeditious processing of claims

for benefits and need to assure that all such claims will be

thoroughly considered and accurately determined.

EFFECTS OF CERTAIN AMENDMENTS BY PUB. L. 96-265; REPORT

Section 312 of Pub. L. 96-265 directed Secretary of Health and

Human Services to submit to Congress, not later than Jan. 1, 1985,

a full and complete report as to effects produced by reason of

preceding provisions of this Act and amendments made thereby (see

Tables for classification).

APPOINTMENT AND COMPENSATION OF INDIVIDUALS NECESSARY TO ASSIST THE

BOARD OF TRUSTEES

Section 8(e) of Pub. L. 94-202 provided that: "Any persons the

Board of Trustees finds necessary to employ to assist it in

performing its functions under section 201(g)(4) of the Social

Security Act [subsec. (g)(4) of this section] may be appointed

without regard to the civil service or classification laws, shall

be compensated, while so employed at rates fixed by the Board of

Trustees, but not exceeding $100 per day, and, while away from

their homes or regular places of business, they may be allowed

traveling expenses, including per diem in lieu of subsistence, as

authorized by law for persons in the Government service employed

intermittently."

METHOD OF DETERMINING COSTS PRESCRIBED BY THE BOARD OF TRUSTEES

CERTIFICATION AND TRANSFER OF FUNDS

Section 8(f) of Pub. L. 94-202, as amended by Pub. L. 99-514,

Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: "The

Secretary shall not make any estimates pursuant to section

201(g)(1)(A)(ii) of the Social Security Act [subsec. (g)(1)(A)(ii)

of this section] before the Board of Trustees prescribes the method

of determining costs as provided in section 201(g)(4) of such Act

[subsec. (g)(4) of this section]. The determinations pursuant to

section 201(g)(1)(B) of the Social Security Act [subsec. (g)(1)(B)

of this section] with respect to the carrying out of the functions

of the Department of Health, Education, and Welfare [now Health and

Human Services] specified in section 232 of such Act [section 432

of this title], which relate to the administration of provisions of

the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (other

than those referred to in clause (i) of the first sentence of

section 201(g)(1)(A) of the Social Security Act [subsec. (g)(1)(A)

of this section]), during fiscal years ending before the Board of

Trustees prescribes the method of making such determinations, shall

be made after the Board of Trustees has prescribed such method. The

Secretary of Health, Education, and Welfare [now Health and Human

Services] shall certify to the Managing Trustee the amounts that

should be transferred from the general fund in the Treasury to the

Trust Funds (as referred to in section 201(g)(1)(A) of the Social

Security Act [subsec. (g)(1)(A) of this section]) to insure that

the general fund in the Treasury bears its proper share of the

costs of carrying out such functions in such fiscal years. The

Managing Trustee is authorized and directed to transfer any such

amounts in accordance with any certification so made."

ADVANCES FROM TRUST FUNDS FOR ADMINISTRATIVE EXPENSES

Section 305(b) of Pub. L. 92-603 provided that:

"(1) Sums appropriated pursuant to section 1601 of the Social

Security Act [section 1381 of this title] shall be utilized from

time to time, in amounts certified under the second sentence of

section 201(g)(1)(A) of such Act [subsec. (g)(1)(A) of this

section], to repay the Trust Funds for expenditures made from such

Funds in any fiscal year under section 201(g)(1)(A) of such Act (as

amended by subsection (a) of this section) [amending subsec.

(g)(1)(A) of this section] on account of the costs of

administration of title XVI of such Act [subchapter XVI of this

chapter] (as added by section 301 of this Act).

"(2) If the Trust Funds have not theretofore been repaid for

expenditures made in any fiscal year (as described in paragraph

(1)) to the extent necessary on account of -

"(A) expenditures made from such Funds prior to the end of such

fiscal year to the extent that the amount of such expenditures

exceeded the amount of the expenditures which would have been

made from such Funds if subsection (a) had not been enacted,

"(B) the additional administrative expenses, if any, resulting

from the excess expenditures described in subparagraph (A), and

"(C) any loss in interest to such Funds resulting from such

excess expenditures and such administrative expenses,

in order to place each such Fund in the same position (at the end

of such fiscal year) as it would have been in if such excess

expenditures had not been made, the amendments made by subsection

(a) shall cease to be effective at the close of the fiscal year

following such fiscal year.

"(3) As used in this subsection, the term 'Trust Funds' has the

meaning given it in section 201(g)(1)(A) of the Social Security Act

[subsec. (g)(1)(A) of this section]."

ADVANCES FROM TRUST FUNDS FOR ADMINISTRATIVE PURPOSES; FISCAL YEAR

TRANSITION PERIOD OF JULY 1, 1976, THROUGH SEPTEMBER 30, 1976,

DEEMED FISCAL YEAR

Fiscal year transition period of July 1, 1976, through Sept. 30,

1976, deemed fiscal year for purposes of section 305(b) of Pub. L.

92-603, set out as a note above, relating to advances from trust

funds for administrative purposes, see section 201(11) of Pub. L.

94-274, title II, Apr. 21, 1976, 90 Stat. 390, set out as a note

under section 343 of Title 7, Agriculture.

GIFTS AND BEQUESTS FOR THE USE OF THE UNITED STATES AND FOR

EXCLUSIVELY PUBLIC PURPOSES

Section 132(g) of Pub. L. 92-603 provided that: "For the purpose

of Federal income, estate, and gift taxes, any gift or bequest to

the Federal Old-Age and Survivors Insurance Trust Fund, the Federal

Disability Insurance Trust Fund, the Federal Hospital Insurance

Trust Fund, or the Federal Supplementary Medical Insurance Trust

Fund, or to the Department of Health, Education, and Welfare [now

Health and Human Services], or any part or officer thereof, for the

benefit of any of such Funds or any activity financed through any

of such Funds, which is accepted by the Managing Trustee of such

Trust Funds under the authority of section 201(i) of the Social

Security Act [subsec. (i) of this section], shall be considered as

a gift or bequest to or for the use of the United States and as

made for exclusively public purposes."

TAXES ON SERVICES RENDERED BY EMPLOYEES OF INTERNATIONAL

ORGANIZATIONS PRIOR TO JAN. 1, 1946

Section 5(b) of act Dec. 29, 1945, ch. 652, title I, 59 Stat.

671, prohibited collection of tax under title VIII or IX of the

Social Security Act or under the Federal Insurance Contributions

Act or the Federal Unemployment Tax Act with respect to services

rendered prior to January 1, 1946, which were described in

paragraph (16) of sections 1426(b) and 1607(c) of the Internal

Revenue Code of 1939, and authorized refund of taxes collected.

-EXEC-

EXECUTIVE ORDER NO. 12335

Ex. Ord. No. 12335, Dec. 16, 1981, 46 F.R. 61633, as amended by

Ex. Ord. No. 12397, Dec. 23, 1982, 47 F.R. 57651; Ex. Ord. No.

12402, Jan. 15, 1983, 48 F.R. 2311, which established the National

Commission on Social Security Reform and provided for its

membership, functions, etc., was revoked by Ex. Ord. No. 12534,

Sept. 30, 1985, 50 F.R. 40319, formerly set out as a note under

section 14 of the Federal Advisory Committee Act in the Appendix to

Title 5, Government Organization and Employees.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 415, 417, 421, 429, 909,

910, 1320b-1, 1395i, 1395t of this title; title 2 section 901;

title 26 section 3121.

-FOOTNOTE-

(!1) So in original. Two cls. (i) and (ii) have been enacted.

(!2) So in original. Probably should be "(vii)".

(!3) So in original. Probably should be "Commissioner".

-End-

-CITE-

42 USC Sec. 401a 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 7 - SOCIAL SECURITY

SUBCHAPTER II - FEDERAL OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE

BENEFITS

-HEAD-

Sec. 401a. Omitted

-COD-

CODIFICATION

Section, acts Aug. 1, 1956, ch. 836, title I, Sec. 116, 70 Stat.

833; Sept. 13, 1966, Pub. L. 86-778, title VII, Sec. 704, 74 Stat.

994; July 30, 1965, Pub. L. 89-97, title I, Sec. 109(b), 79 Stat.

340, which established an initial Advisory Council on Social

Security Financing to review the status of the Federal Old-Age and

Survivors Insurance Trust Fund and the Federal Disability Insurance

Trust Fund in relation to long term commitments to old-age,

survivors, and disability insurance programs, appointed personnel

and provided for their compensation, required a report of the

findings and recommendations of the Council to be submitted to the

Secretary of the Board of Trustees of the abovementioned Trust

Funds not later than Jan. 1, 1959, at which time the Council

terminated, provided for subsequent Advisory Councils to be

appointed in 1963, 1966, and every fifth year thereafter and to

submit reports to Congress, and required additional information be

included in these reports, was omitted in view of the termination

of the initial Advisory Council on submission of their report not

later than Jan. 1, 1959, the repeal of subsec. (e) by Pub. L.

89-97, title I, Sec. 109(b), July 30, 1965, 79 Stat. 340, which

provided for the subsequent Advisory Councils, and the obsolescence

of subsec. (f), which provided for additional information in

reports to Congress, upon the repeal of subsec. (e).

-End-

-CITE-

42 USC Sec. 402 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 7 - SOCIAL SECURITY

SUBCHAPTER II - FEDERAL OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE

BENEFITS

-HEAD-

Sec. 402. Old-age and survivors insurance benefit payments

-STATUTE-

(a) Old-age insurance benefits

Every individual who -

(1) is a fully insured individual (as defined in section 414(a)

of this title),

(2) has attained age 62, and

(3) has filed application for old-age insurance benefits or was

entitled to disability insurance benefits for the month preceding

the month in which he attained retirement age (as defined in

section 416(l) of this title),

shall be entitled to an old-age insurance benefit for each month,

beginning with -

(A) in the case of an individual who has attained retirement

age (as defined in section 416(l) of this title), the first month

in which such individual meets the criteria specified in

paragraphs (1), (2), and (3), or

(B) in the case of an individual who has attained age 62, but

has not attained retirement age (as defined in section 416(l) of

this title), the first month throughout which such individual

meets the criteria specified in paragraphs (1) and (2) (if in

that month he meets the criterion specified in paragraph (3)),

and ending with the month preceding the month in which he dies.

Except as provided in subsection (q) and subsection (w) of this

section, such individual's old-age insurance benefit for any month

shall be equal to his primary insurance amount (as defined in

section 415(a) of this title) for such month.

(b) Wife's insurance benefits

(1) The wife (as defined in section 416(b) of this title) and

every divorced wife (as defined in section 416(d) of this title) of

an individual entitled to old-age or disability insurance benefits,

if such wife or such divorced wife -

(A) has filed application for wife's insurance benefits,

(B) has attained age 62 or (in the case of a wife) has in her

care (individually or jointly with such individual) at the time

of filing such application a child entitled to a child's

insurance benefit on the basis of the wages and self-employment

income of such individual,

(D) is not entitled to old-age or disability insurance

benefits, or is entitled to old-age or disability insurance

benefits based on a primary insurance amount which is less than

one-half of the primary insurance amount of such individual,

shall (subject to subsection (s) of this section) be entitled to a

wife's insurance benefit for each month, beginning with -

(i) in the case of a wife or divorced wife (as so defined) of

an individual entitled to old-age benefits, if such wife or

divorced wife has attained retirement age (as defined in section

416(l) of this title), the first month in which she meets the

criteria specified in subparagraphs (A), (B), (C), and (D), or

(ii) in the case of a wife or divorced wife (as so defined) of

(I) an individual entitled to old-age insurance benefits, if

such wife or divorced wife has not attained retirement age (as

defined in section 416(l) of this title), or

(II) an individual entitled to disability insurance benefits,

the first month throughout which she is such a wife or divorced

wife and meets the criteria specified in subparagraphs (B), (C),

and (D) (if in such month she meets the criterion specified in

subparagraph (A)),

whichever is earlier, and ending with the month preceding the month

in which any of the following occurs -

(E) she dies,

(F) such individual dies,

(G) in the case of a wife, they are divorced and either (i) she

has not attained age 62, or (ii) she has attained age 62 but has

not been married to such individual for a period of 10 years

immediately before the date the divorce became effective,

(H) in the case of a divorced wife, she marries a person other

than such individual,

(I) in the case of a wife who has not attained age 62, no child

of such individual is entitled to a child's insurance benefit,

(J) she becomes entitled to an old-age or disability insurance

benefit based on a primary insurance amount which is equal to or

exceeds one-half of the primary insurance amount of such

individual, or

(K) such individual is not entitled to disability insurance

benefits and is not entitled to old-age insurance benefits.

(2) Except as provided in subsection (q) of this section and

paragraph (4) of this subsection, such wife's insurance benefit for

each month shall be equal to one-half of the primary insurance

amount of her husband (or, in the case of a divorced wife, her

former husband) for such month.

(3) In the case of any divorced wife who marries -

(A) an individual entitled to benefits under subsection (c),

(f), (g), or (h) of this section, or

(B) an individual who has attained the age of 18 and is

entitled to benefits under subsection (d) of this section,

such divorced wife's entitlement to benefits under this subsection

shall, notwithstanding the provisions of paragraph (1) (but subject

to subsection (s) of this section), not be terminated by reason of

such marriage.

(4)(A) The amount of a wife's insurance benefit for each month

(as determined after application of the provisions of subsections

(q) and (k) of this section) shall be reduced (but not below zero)

by an amount equal to two-thirds of the amount of any monthly

periodic benefit payable to the wife (or divorced wife) for such

month which is based upon her earnings while in the service of the

Federal Government or any State (or political subdivision thereof,

as defined in section 418(b)(2) of this title) if, on the last day

she was employed by such entity -

(i) such service did not constitute "employment" as defined in

section 410 of this title, or

(ii) such service was being performed while in the service of

the Federal Government, and constituted "employment" as so

defined solely by reason of -

(I) clause (ii) or (iii) of subparagraph (G) of section

410(a)(5) of this title, where the lump-sum payment described

in such clause (ii) or the cessation of coverage described in

such clause (iii) (whichever is applicable) was received or

occurred on or after January 1, 1988, or

(II) an election to become subject to the Federal Employees'

Retirement System provided in chapter 84 of title 5 or the

Foreign Service Pension System provided in subchapter II of

chapter 8 of title I of the Foreign Service Act of 1980 [22

U.S.C. 4071 et seq.] made pursuant to law after December 31,

1987,

unless subparagraph (B) applies. The amount of the reduction in any

benefit under this subparagraph, if not a multiple of $0.10, shall

be rounded to the next higher multiple of $0.10.

(B)(i) Subparagraph (A)(i) shall not apply with respect to

monthly periodic benefits based wholly on service as a member of a

uniformed service (as defined in section 410(m) of this title).

(ii) Subparagraph (A)(ii) shall not apply with respect to monthly

periodic benefits based in whole or in part on service which

constituted "employment" as defined in section 410 of this title if

such service was performed for at least 60 months in the aggregate

during the period beginning January 1, 1988, and ending with the

close of the first calendar month as of the end of which the wife

(or divorced wife) is eligible for benefits under this subsection

and has made a valid application for such benefits.

otherwise meets the requirements of subparagraph (A), but which is

paid on other than a monthly basis, shall be allocated on a basis

equivalent to a monthly benefit (as determined by the Commissioner

of Social Security) and such equivalent monthly benefit shall

constitute a monthly periodic benefit for purposes of subparagraph

(A). For purposes of this subparagraph, the term "periodic benefit"

includes a benefit payable in a lump sum if it is a commutation of,

or a substitute for, periodic payments.

(5)(A) Notwithstanding the preceding provisions of this

subsection, except as provided in subparagraph (B), the divorced

wife of an individual who is not entitled to old-age or disability

insurance benefits, but who has attained age 62 and is a fully

insured individual (as defined in section 414 of this title), if

such divorced wife -

(i) meets the requirements of subparagraphs (A) through (D) of

paragraph (1), and

(ii) has been divorced from such insured individual for not

less than 2 years,

shall be entitled to a wife's insurance benefit under this

subsection for each month, in such amount, and beginning and ending

with such months, as determined (under regulations of the

Commissioner of Social Security) in the manner otherwise provided

for wife's insurance benefits under this subsection, as if such

insured individual had become entitled to old-age insurance

benefits on the date on which the divorced wife first meets the

criteria for entitlement set forth in clauses (i) and (ii).

(B) A wife's insurance benefit provided under this paragraph

which has not otherwise terminated in accordance with subparagraph

(E), (F), (H), or (J) of paragraph (1) shall terminate with the

month preceding the first month in which the insured individual is

no longer a fully insured individual.

(1) The husband (as defined in section 416(f) of this title) and

every divorced husband (as defined in section 416(d) of this title)

of an individual entitled to old-age or disability insurance

benefits, if such husband or such divorced husband -

(A) has filed application for husband's insurance benefits,

(B) has attained age 62 or (in the case of a husband) has in

his care (individually or jointly with such individual) at the

time of filing such application a child entitled to child's

insurance benefits on the basis of the wages and self-employment

income of such individual,

(D) is not entitled to old-age or disability insurance

benefits, or is entitled to old-age or disability insurance

benefits based on a primary insurance amount which is less than

one-half of the primary insurance amount of such individual,

shall (subject to subsection(s) of this section) be entitled to a

husband's insurance benefit for each month, beginning with -

(i) in the case of a husband or divorced husband (as so

defined) of an individual who is entitled to an old-age insurance

benefit, if such husband or divorced husband has attained

retirement age (as defined in section 416(l) of this title), the

first month in which he meets the criteria specified in

subparagraphs (A), (B), (C), and (D), or

(ii) in the case of a husband or divorced husband (as so

defined) of -

(I) an individual entitled to old-age insurance benefits, if

such husband or divorced husband has not attained retirement

age (as defined in section 416(l) of this title), or

(II) an individual entitled to disability insurance benefits,

the first month throughout which he is such a husband or divorced

husband and meets the criteria specified in subparagraphs (B),

(C), and (D) (if in such month he meets the criterion specified

in subparagraph (A)),

whichever is earlier, and ending with the month preceding the month

in which any of the following occurs:

(E) he dies,

(F) such individual dies,

(G) in the case of a husband, they are divorced and either (i)

he has not attained age 62, or (ii) he has attained age 62 but

has not been married to such individual for a period of 10 years

immediately before the divorce became effective,

(H) in the case of a divorced husband, he marries a person

other than such individual,

(I) in the case of a husband who has not attained age 62, no

child of such individual is entitled to a child's insurance

benefit,

(J) he becomes entitled to an old-age or disability insurance

benefit based on a primary insurance amount which is equal to or

exceeds one-half of the primary insurance amount of such

individual, or

(K) such individual is not entitled to disability insurance

benefits and is not entitled to old-age insurance benefits.

(2)(A) The amount of a husband's insurance benefit for each month

(as determined after application of the provisions of subsections

(q) and (k) of this section) shall be reduced (but not below zero)

by an amount equal to two-thirds of the amount of any monthly

periodic benefit payable to the husband (or divorced husband) for

such month which is based upon his earnings while in the service of

the Federal Government or any State (or political subdivision

thereof, as defined in section 418(b)(2) of this title) if, on the

last day he was employed by such entity -

(i) such service did not constitute "employment" as defined in

section 410 of this title, or

(ii) such service was being performed while in the service of

the Federal Government, and constituted "employment" as so

defined solely by reason of -

(I) clause (ii) or (iii) of subparagraph (G) of section

410(a)(5) of this title, where the lump-sum payment described

in such clause (ii) or the cessation of coverage described in

such clause (iii) (whichever is applicable) was received or

occurred on or after January 1, 1988, or

(II) an election to become subject to the Federal Employees'

Retirement System provided in chapter 84 of title 5 or the

Foreign Service Pension System provided in subchapter II of

chapter 8 of title I of the Foreign Service Act of 1980 [22

U.S.C. 4071 et seq.] made pursuant to law after December 31,

1987,

unless subparagraph (B) applies. The amount of the reduction in any

benefit under this subparagraph, if not a multiple of $0.10, shall

be rounded to the next higher multiple of $0.10.

(B)(i) Subparagraph (A)(i) shall not apply with respect to

monthly periodic benefits based wholly on service as a member of a

uniformed service (as defined in section 410(m) of this title).

(ii) Subparagraph (A)(ii) shall not apply with respect to monthly

periodic benefits based in whole or in part on service which

constituted "employment" as defined in section 410 of this title if

such service was performed for at least 60 months in the aggregate

during the period beginning January 1, 1988, and ending with the

close of the first calendar month as of the end of which the

husband (or divorced husband) is eligible for benefits under this

subsection and has made a valid application for such benefits.

otherwise meets the requirements of subparagraph (A), but which is

paid on other than a monthly basis, shall be allocated on a basis

equivalent to a monthly benefit (as determined by the Commissioner

of Social Security) and such equivalent monthly benefit shall

constitute a monthly periodic benefit for purposes of subparagraph

(A). For purposes of this subparagraph, the term "periodic benefit"

includes a benefit payable in a lump sum if it is a commutation of,

or a substitute for, periodic payments.

(3) Except as provided in subsection (q) of this section and

paragraph (2) of this subsection, such husband's insurance benefit

for each month shall be equal to one-half of the primary insurance

amount of his wife (or, in the case of a divorced husband, his

former wife) for such month.

(4) In the case of any divorced husband who marries -

(A) an individual entitled to benefits under subsection (b),

(e), (g), or (h) of this section, or

(B) an individual who has attained the age of 18 and is

entitled to benefits under subsection (d) of this section, by

reason of paragraph (1)(B)(ii) thereof,

such divorced husband's entitlement to benefits under this

subsection, notwithstanding the provisions of paragraph (1) (but

subject to subsection (s) of this section), shall not be terminated

by reason of such marriage.

(5)(A) Notwithstanding the preceding provisions of this

subsection, except as provided in subparagraph (B), the divorced

husband of an individual who is not entitled to old-age or

disability insurance benefits, but who has attained age 62 and is a

fully insured individual (as defined in section 414 of this title),

if such divorced husband -

(i) meets the requirements of subparagraphs (A) through (D) of

paragraph (1), and

(ii) has been divorced from such insured individual for not

less than 2 years,

shall be entitled to a husband's insurance benefit under this

subsection for each month, in such amount, and beginning and ending

with such months, as determined (under regulations of the

Commissioner of Social Security) in the manner otherwise provided

for husband's insurance benefits under this subsection, as if such

insured individual had become entitled to old-age insurance

benefits on the date on which the divorced husband first meets the

criteria for entitlement set forth in clauses (i) and (ii).

(B) A husband's insurance benefit provided under this paragraph

which has not otherwise terminated in accordance with subparagraph

(E), (F), (H), or (J) of paragraph (1) shall terminate with the

month preceding the first month in which the insured individual is

no longer a fully insured individual.

(d) Child's insurance benefits

(1) Every child (as defined in section 416(e) of this title) of

an individual entitled to old-age or disability insurance benefits,

or of an individual who dies a fully or currently insured

individual, if such child -

(A) has filed application for child's insurance benefits,

(B) at the time such application was filed was unmarried and

(i) either had not attained the age of 18 or was a full-time

elementary or secondary school student and had not attained the

age of 19, or (ii) is under a disability (as defined in section

423(d) of this title) which began before he attained the age of

22, and

(i) if such individual is living, at the time such

application was filed,

(ii) if such individual has died, at the time of such death,

(iii) if such individual had a period of disability which

continued until he became entitled to old-age or disability

insurance benefits, or (if he has died) until the month of his

death, at the beginning of such period of disability or at the

time he became entitled to such benefits,

shall be entitled to a child's insurance benefit for each month,

beginning with -

(i) in the case of a child (as so defined) of such an

individual who has died, the first month in which such child

meets the criteria specified in subparagraphs (A), (B), and (C),

(ii) in the case of a child (as so defined) of an individual

entitled to an old-age insurance benefit or to a disability

insurance benefit, the first month throughout which such child is

a child (as so defined) and meets the criteria specified in

subparagraphs (B) and (C) (if in such month he meets the

criterion specified in subparagraph (A)),

whichever is earlier, and ending with the month preceding whichever

of the following first occurs -

(D) the month in which such child dies, or marries,

(E) the month in which such child attains the age of 18, but

only if he (i) is not under a disability (as so defined) at the

time he attains such age, and (ii) is not a full-time elementary

or secondary school student during any part of such month,

(F) if such child was not under a disability (as so defined) at

the time he attained the age of 18, the earlier of -

(i) the first month during no part of which he is a full-time

elementary or secondary school student, or

(ii) the month in which he attains the age of 19,

but only if he was not under a disability (as so defined) in such

earlier month;

(G) if such child was under a disability (as so defined) at the

time he attained the age of 18 or if he was not under a

disability (as so defined) at such time but was under a

disability (as so defined) at or prior to the time he attained

(or would attain) the age of 22 -

(i) the termination month, subject to section 423(e) of this

title (and for purposes of this subparagraph, the termination

month for any individual shall be the third month following the

month in which his disability ceases; except that, in the case

of an individual who has a period of trial work which ends as

determined by application of section 422(c)(4)(A) of this

title, the termination month shall be the earlier of (I) the

third month following the earliest month after the end of such

period of trial work with respect to which such individual is

determined to no longer be suffering from a disabling physical

or mental impairment, or (II) the third month following the

earliest month in which such individual engages or is

determined able to engage in substantial gainful activity, but

in no event earlier than the first month occurring after the 36

months following such period of trial work in which he engages

or is determined able to engage in substantial gainful

activity),

or (if later) the earlier of -

(ii) the first month during no part of which he is a

full-time elementary or secondary school student, or

(iii) the month in which he attains the age of 19,

but only if he was not under a disability (as so defined) in such

earlier month; or

(H) if the benefits under this subsection are based on the

wages and self-employment income of a stepparent who is

subsequently divorced from such child's natural parent, the month

after the month in which such divorce becomes final.

Entitlement of any child to benefits under this subsection on the

basis of the wages and self-employment income of an individual

entitled to disability insurance benefits shall also end with the

month before the first month for which such individual is not

entitled to such benefits unless such individual is, for such later

month, entitled to old-age insurance benefits or unless he dies in

such month. No payment under this paragraph may be made to a child

who would not meet the definition of disability in section 423(d)

of this title except for paragraph (1)(B) thereof for any month in

which he engages in substantial gainful activity.

(2) Such child's insurance benefit for each month shall, if the

individual on the basis of whose wages and self-employment income

the child is entitled to such benefit has not died prior to the end

of such month, be equal to one-half of the primary insurance amount

of such individual for such month. Such child's insurance benefit

for each month shall, if such individual has died in or prior to

such month, be equal to three-fourths of the primary insurance

amount of such individual.

(3) A child shall be deemed dependent upon his father or adopting

father or his mother or adopting mother at the time specified in

paragraph (1)(C) of this subsection unless, at such time, such

individual was not living with or contributing to the support of

such child and -

(A) such child is neither the legitimate nor adopted child of

such individual, or

(B) such child has been adopted by some other individual.

For purposes of this paragraph, a child deemed to be a child of a

fully or currently insured individual pursuant to section

416(h)(2)(B) or section 416(h)(3) of this title shall be deemed to

be the legitimate child of such individual.

(4) A child shall be deemed dependent upon his stepfather or

stepmother at the time specified in paragraph (1)(C) of this

subsection if, at such time, the child was receiving at least

one-half of his support from such stepfather or stepmother.

(5) In the case of a child who has attained the age of eighteen

and who marries -

(A) an individual entitled to benefits under subsection (a),

(b), (c), (e), (f), (g), or (h) of this section or under section

423(a) of this title, or

(B) another individual who has attained the age of eighteen and

is entitled to benefits under this subsection,

such child's entitlement to benefits under this subsection shall,

notwithstanding the provisions of paragraph (1) of this subsection

but subject to subsection (s) of this section, not be terminated by

reason of such marriage.

(6) A child whose entitlement to child's insurance benefits on

the basis of the wages and self-employment income of an insured

individual terminated with the month preceding the month in which

such child attained the age of 18, or with a subsequent month, may

again become entitled to such benefits (provided no event specified

in paragraph (1)(D) has occurred) beginning with the first month

thereafter in which he -

(A)(i) is a full-time elementary or secondary school student

and has not attained the age of 19, or (ii) is under a disability

(as defined in section 423(d) of this title) and has not attained

the age of 22, or

(B) is under a disability (as so defined) which began before

the close of the 84th month following the month in which his most

recent entitlement to child's insurance benefits terminated

because he ceased to be under such disability,

but only if he has filed application for such reentitlement. Such

reentitlement shall end with the month preceding whichever of the

following first occurs:

(1)(D) occurs;

(D) the earlier of (i) the first month during no part of which

he is a full-time elementary or secondary school student or (ii)

the month in which he attains the age of 19, but only if he is

not under a disability (as so defined) in such earlier month; or

(E) if he was under a disability (as so defined), the

termination month (as defined in paragraph (1)(G)(i)), subject to

section 423(e) of this title, or (if later) the earlier of -

(i) the first month during no part of which he is a full-time

elementary or secondary school student, or

(ii) the month in which he attains the age of 19.

(7) For the purposes of this subsection -

(A) A "full-time elementary or secondary school student" is an

individual who is in full-time attendance as a student at an

elementary or secondary school, as determined by the Commissioner

of Social Security (in accordance with regulations prescribed by

the Commissioner) in the light of the standards and practices of

the schools involved, except that no individual shall be

considered a "full-time elementary or secondary school student"

if he is paid by his employer while attending an elementary or

secondary school at the request, or pursuant to a requirement, of

his employer. An individual shall not be considered a "full-time

elementary or secondary school student" for the purpose of this

section while that individual is confined in a jail, prison, or

other penal institution or correctional facility, pursuant to his

conviction of an offense (committed after the effective date of

this sentence (!1) ) which constituted a felony under applicable

law. An individual who is determined to be a full-time elementary

or secondary school student shall be deemed to be such a student

throughout the month with respect to which such determination is

made.

(B) Except to the extent provided in such regulations, an

individual shall be deemed to be a full-time elementary or

secondary school student during any period of nonattendance at an

elementary or secondary school at which he has been in full-time

attendance if (i) such period is 4 calendar months or less, and

(ii) he shows to the satisfaction of the Commissioner of Social

Security that he intends to continue to be in full-time

attendance at an elementary or secondary school immediately

following such period. An individual who does not meet the

requirement of clause (ii) with respect to such period of

nonattendance shall be deemed to have met such requirement (as of

the beginning of such period) if he is in full-time attendance at

an elementary or secondary school immediately following such

period.

(C)(i) An "elementary or secondary school" is a school which

provides elementary or secondary education, respectively, as

determined under the law of the State or other jurisdiction in

which it is located.

(ii) For the purpose of determining whether a child is a

"full-time elementary or secondary school student" or "intends to

continue to be in full-time attendance at an elementary or

secondary school", within the meaning of this subsection, there

shall be disregarded any education provided, or to be provided,

beyond grade 12.

(D) A child who attains age 19 at a time when he is a full-time

elementary or secondary school student (as defined in

subparagraph (A) of this paragraph and without application of

subparagraph (B) of such paragraph) but has not (at such time)

completed the requirements for, or received, a diploma or

equivalent certificate from a secondary school (as defined in

subparagraph (C)(i)) shall be deemed (for purposes of determining

whether his entitlement to benefits under this subsection has

terminated under paragraph (1)(F) and for purposes of determining

his initial entitlement to such benefits under clause (i) of

paragraph (1)(B)) not to have attained such age until the first

day of the first month following the end of the quarter or

semester in which he is enrolled at such time (or, if the

elementary or secondary school (as defined in this paragraph) in

which he is enrolled is not operated on a quarter or semester

system, until the first day of the first month following the

completion of the course in which he is so enrolled or until the

first day of the third month beginning after such time, whichever

first occurs).

(8) In the case of -

(A) an individual entitled to old-age insurance benefits (other

than an individual referred to in subparagraph (B)), or

(B) an individual entitled to disability insurance benefits, or

an individual entitled to old-age insurance benefits who was

entitled to disability insurance benefits for the month preceding

the first month for which he was entitled to old-age insurance

benefits,

a child of such individual adopted after such individual became

entitled to such old-age or disability insurance benefits shall be

deemed not to meet the requirements of clause (i) or (iii) of

paragraph (1)(C) unless such child -

(including such a child who was legally adopted by such

individual), or

(D)(i) was legally adopted by such individual in an adoption

decreed by a court of competent jurisdiction within the United

States, and

(ii) in the case of a child who attained the age of 18 prior to

the commencement of proceedings for adoption, the child was

living with or receiving at least one-half of the child's support

from such individual for the year immediately preceding the month

in which the adoption is decreed.

(9)(A) A child who is a child of an individual under clause (3)

of the first sentence of section 416(e) of this title and is not a

child of such individual under clause (1) or (2) of such first

sentence shall be deemed not to be dependent on such individual at

the time specified in subparagraph (1)(C) of this subsection unless

(i) such child was living with such individual in the United States

and receiving at least one-half of his support from such individual

(I) for the year immediately before the month in which such

individual became entitled to old-age insurance benefits or

disability insurance benefits or died, or (II) if such individual

had a period of disability which continued until he had become

entitled to old-age insurance benefits, or disability insurance

benefits, or died, for the year immediately before the month in

which such period of disability began, and (ii) the period during

which such child was living with such individual began before the

child attained age 18.

(B) In the case of a child who was born in the one-year period

during which such child must have been living with and receiving at

least one-half of his support from such individual, such child

shall be deemed to meet such requirements for such period if, as of

the close of such period, such child has lived with such individual

in the United States and received at least one-half of his support

from such individual for substantially all of the period which

begins on the date of such child's birth.

(10) For purposes of paragraph (1)(H) -

(A) each stepparent shall notify the Commissioner of Social

Security of any divorce upon such divorce becoming final; and

(B) the Commissioner shall annually notify any stepparent of

the rule for termination described in paragraph (1)(H) and of the

requirement described in subparagraph (A).

(e) Widow's insurance benefits

(1) The widow (as defined in section 416(c) of this title) and

every surviving divorced wife (as defined in section 416(d) of this

title) of an individual who died a fully insured individual, if

such widow or such surviving divorced wife -

(A) is not married,

(B)(i) has attained age 60, or (ii) has attained age 50 but has

not attained age 60 and is under a disability (as defined in

section 423(d) of this title) which began before the end of the

period specified in paragraph (4),

(C)(i) has filed application for widow's insurance benefits,

(ii) was entitled to wife's insurance benefits, on the basis of

the wages and self-employment income of such individual, for the

month preceding the month in which such individual died, and -

(I) has attained retirement age (as defined in section 416(l)

of this title),

(II) is not entitled to benefits under subsection (a) of this

section or section 423 of this title, or

(III) has in effect a certificate (described in paragraph

(8)) filed by her with the Commissioner of Social Security, in

accordance with regulations prescribed by the Commissioner of

Social Security, in which she elects to receive widow's

insurance benefits (subject to reduction as provided in

subsection (q) of this section), or

(iii) was entitled, on the basis of such wages and

self-employment income, to mother's insurance benefits for the

month preceding the month in which she attained retirement age

(as defined in section 416(l) of this title), and

(D) is not entitled to old-age insurance benefits or is

entitled to old-age insurance benefits each of which is less than

the primary insurance amount (as determined after application of

subparagraphs (B) and (C) of paragraph (2)) of such deceased

individual,

shall be entitled to a widow's insurance benefit for each month,

beginning with -

(E) if she satisfies subparagraph (B) by reason of clause (i)

thereof, the first month in which she becomes so entitled to such

insurance benefits, or

(F) if she satisfies subparagraph (B) by reason of clause (ii)

thereof -

(i) the first month after her waiting period (as defined in

paragraph (5)) in which she becomes so entitled to such

insurance benefits, or

(ii) the first month during all of which she is under a

disability and in which she becomes so entitled to such

insurance benefits, but only if she was previously entitled to

insurance benefits under this subsection on the basis of being

under a disability and such first month occurs (I) in the

period specified in paragraph (4) and (II) after the month in

which a previous entitlement to such benefits on such basis

terminated,

and ending with the month preceding the first month in which any of

the following occurs: she remarries, dies, becomes entitled to an

old-age insurance benefit equal to or exceeding the primary

insurance amount (as determined after application of subparagraphs

(B) and (C) of paragraph (2)) of such deceased individual, or, if

she became entitled to such benefits before she attained age 60,

subject to section 423(e) of this title, the termination month

(unless she attains retirement age (as defined in section 416(l) of

this title) on or before the last day of such termination month).

For purposes of the preceding sentence, the termination month for

any individual shall be the third month following the month in

which her disability ceases; except that, in the case of an

individual who has a period of trial work which ends as determined

by application of section 422(c)(4)(A) of this title, the

termination month shall be the earlier of (I) the third month

following the earliest month after the end of such period of trial

work with respect to which such individual is determined to no

longer be suffering from a disabling physical or mental impairment,

or (II) the third month following the earliest month in which such

individual engages or is determined able to engage in substantial

gainful activity, but in no event earlier than the first month

occurring after the 36 months following such period of trial work

in which she engages or is determined able to engage in substantial

gainful activity.

(2)(A) Except as provided in subsection (q) of this section,

paragraph (7) of this subsection, and subparagraph (D) of this

paragraph, such widow's insurance benefit for each month shall be

equal to the primary insurance amount (as determined for purposes

of this subsection after application of subparagraphs (B) and (C))

of such deceased individual.

(B)(i) For purposes of this subsection, in any case in which such

deceased individual dies before attaining age 62 and section

415(a)(1) of this title (as in effect after December 1978) is

applicable in determining such individual's primary insurance

amount -

(I) such primary insurance amount shall be determined under the

formula set forth in section 415(a)(1)(B)(i) and (ii) of this

title which is applicable to individuals who initially become

eligible for old-age insurance benefits in the second year after

the year specified in clause (ii),

(II) the year specified in clause (ii) shall be substituted for

the second calendar year specified in section 415(b)(3)(A)(ii)(I)

of this title, and

(III) such primary insurance amount shall be increased under

section 415(i) of this title as if it were the primary insurance

amount referred to in section 415(i)(2)(A)(ii)(II) of this title,

except that it shall be increased only for years beginning after

the first year after the year specified in clause (ii).

(ii) The year specified in this clause is the earlier of -

(I) the year in which the deceased individual attained age 60,

or would have attained age 60 had he lived to that age, or

(II) the second year preceding the year in which the widow or

surviving divorced wife first meets the requirements of paragraph

(1)(B) or the second year preceding the year in which the

deceased individual died, whichever is later.

(iii) This subparagraph shall apply with respect to any benefit

under this subsection only to the extent its application does not

result in a primary insurance amount for purposes of this

subsection which is less than the primary insurance amount

otherwise determined for such deceased individual under section 415

of this title.

have been) entitled to an old-age insurance benefit which was

increased (or subject to being increased) on account of delayed

retirement under the provisions of subsection (w) of this section,

then, for purposes of this subsection, such individual's primary

insurance amount, if less than the old-age insurance benefit

(increased, where applicable, under section 415(f)(5), 415(f)(6),

or 415(f)(9)(B) of this title and under section 415(i) of this

title as if such individual were still alive in the case of an

individual who has died) which he was receiving (or would upon

application have received) for the month prior to the month in

which he died, shall be deemed to be equal to such old-age

insurance benefit, and (notwithstanding the provisions of paragraph

(3) of such subsection (w) of this section) the number of increment

months shall include any month in the months of the calendar year

in which he died, prior to the month in which he died, which

satisfy the conditions in paragraph (2) of such subsection (w) of

this section.

(D) If the deceased individual (on the basis of whose wages and

self-employment income a widow or surviving divorced wife is

entitled to widow's insurance benefits under this subsection) was,

at any time, entitled to an old-age insurance benefit which was

reduced by reason of the application of subsection (q) of this

section, the widow's insurance benefit of such widow or surviving

divorced wife for any month shall, if the amount of the widow's

insurance benefit of such widow or surviving divorced wife (as

determined under subparagraph (A) and after application of

subsection (q) of this section) is greater than -

(i) the amount of the old-age insurance benefit to which such

deceased individual would have been entitled (after application

of subsection (q) of this section) for such month if such

individual were still living and section 415(f)(5), 415(f)(6), or

415(f)(9)(B) of this title were applied, where applicable, and

(ii) 82 1/2 percent of the primary insurance amount (as

determined without regard to subparagraph (C)) of such deceased

individual,

be reduced to the amount referred to in clause (i), or (if greater)

the amount referred to in clause (ii).

(3) For purposes of paragraph (1), if -

(A) a widow or surviving divorced wife marries after attaining

age 60 (or after attaining age 50 if she was entitled before such

marriage occurred to benefits based on disability under this

subsection), or

(B) a disabled widow or disabled surviving divorced wife

described in paragraph (1)(B)(ii) marries after attaining age 50,

such marriage shall be deemed not to have occurred.

(4) The period referred to in paragraph (1)(B)(ii), in the case

of any widow or surviving divorced wife, is the period beginning

with whichever of the following is the latest:

(A) the month in which occurred the death of the fully insured

individual referred to in paragraph (1) on whose wages and

self-employment income her benefits are or would be based, or

(B) the last month for which she was entitled to mother's

insurance benefits on the basis of the wages and self-employment

income of such individual, or

insurance benefits on the basis of such wages and self-employment

income terminated because her disability had ceased,

and ending with the month before the month in which she attains age

60, or, if earlier, with the close of the eighty-fourth month

following the month with which such period began.

(5)(A) The waiting period referred to in paragraph (1)(F), in the

case of any widow or surviving divorced wife, is the earliest

period of five consecutive calendar months -

(i) throughout which she has been under a disability, and

(ii) which begins not earlier than with whichever of the

following is the later: (I) the first day of the seventeenth

month before the month in which her application is filed, or (II)

the first day of the fifth month before the month in which the

period specified in paragraph (4) begins.

(B) For purposes of paragraph (1)(F)(i), each month in the period

commencing with the first month for which such widow or surviving

divorced wife is first eligible for supplemental security income

benefits under subchapter XVI of this chapter, or State

supplementary payments of the type referred to in section 1382e(a)

of this title (or payments of the type described in section 212(a)

of Public Law 93-66) which are paid by the Commissioner of Social

Security under an agreement referred to in section 1382e(a) of this

title (or in section 212(b) of Public Law 93-66), shall be included

as one of the months of such waiting period for which the

requirements of subparagraph (A) have been met.

(6) In the case of an individual entitled to monthly insurance

benefits payable under this section for any month prior to January

1973 whose benefits were not redetermined under section 102(g) of

the Social Security Amendments of 1972, such benefits shall not be

redetermined pursuant to such section, but shall be increased

pursuant to any general benefit increase (as defined in section

415(i)(3) of this title) or any increase in benefits made under or

pursuant to section 415(i) of this title, including for this

purpose the increase provided effective for March 1974, as though

such redetermination had been made.

(7)(A) The amount of a widow's insurance benefit for each month

(as determined after application of the provisions of subsections

(q) and (k) of this section, paragraph (2)(D), and paragraph (3))

shall be reduced (but not below zero) by an amount equal to

two-thirds of the amount of any monthly periodic benefit payable to

the widow (or surviving divorced wife) for such month which is

based upon her earnings while in the service of the Federal

Government or any State (or political subdivision thereof, as

defined in section 418(b)(2) of this title) if, on the last day she

was employed by such entity -

(i) such service did not constitute "employment" as defined in

section 410 of this title, or

(ii) such service was being performed while in the service of

the Federal Government, and constituted "employment" as so

defined solely by reason of -

(I) clause (ii) or (iii) of subparagraph (G) of section

410(a)(5) of this title, where the lump-sum payment described

in such clause (ii) or the cessation of coverage described in

such clause (iii) (whichever is applicable) was received or

occurred on or after January 1, 1988, or

(II) an election to become subject to the Federal Employees'

Retirement System provided in chapter 84 of title 5 or the

Foreign Service Pension System provided in subchapter II of

chapter 8 of title I of the Foreign Service Act of 1980 [22

U.S.C. 4071 et seq.] made pursuant to law after December 31,

1987,

unless subparagraph (B) applies. The amount of the reduction in any

benefit under this subparagraph, if not a multiple of $0.10, shall

be rounded to the next higher multiple of $0.10.

(B)(i) Subparagraph (A)(i) shall not apply with respect to

monthly periodic benefits based wholly on service as a member of a

uniformed service (as defined in section 410(m) of this title).

(ii) Subparagraph (A)(ii) shall not apply with respect to monthly

periodic benefits based in whole or in part on service which

constituted "employment" as defined in section 410 of this title if

such service was performed for at least 60 months in the aggregate

during the period beginning January 1, 1988, and ending with the

close of the first calendar month as of the end of which the widow

(or surviving divorced wife) is eligible for benefits under this