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Social Security Act of 1935 Text

Social Security Act of 1935 Text

TITLE
I- GRANTS TO STATES FOR OLD-AGE ASSISTANCE

APPROPRIATION

SECTION
1. For the purpose of enabling each State to furnish financial assistance, as
far as practicable under the conditions in such State, to aged needy
individuals, there is hereby authorized to be appropriated for the fiscal year
ended June 30, 1936, the sum of $49,750,000, and there is hereby authorized to
be appropriated for each fiscal year thereafter a sum sufficient to carry out
the purposes of this title. The sums made available under this section shall be
used for making payments to States which have submitted, and had approved by
the Social Security Board established by Title VII (hereinafter referred to as
the Board ), State plans for old-age assistance.

STATE
OLD-AGE ASSISTANCE PLANS

SEC.
2. (a) A State plan for old-age assistance must

(1)
provide that it shall be in effect in all political subdivisions of the State,
and, if administered by them, be mandatory upon them;

(2)
provide for financial participation by the State;

(3)
either provide for the establishment or designation of a single State agency to
administer the plan, or provide for the establishment or designation of a
single State agency to supervise the administration of the plan;

(4)
provide for granting to any individual, whose claim for old-age assistance is
denied, an opportunity for a fair hearing before such State agency;

(5)
provide such methods of administration (other than those relating to selection,
tenure of office, and compensation of personnel) as are found by the Board to
be necessary for the efficient operation of the plan;

(6)
provide that the State agency will make such reports, in such form and
containing such information, as the Board may from time to time require, and
comply with such provisions as the Board may from time to time find necessary
to assure the correctness and verification of such reports; and

(7)
provide that, if the State or any of its political subdivisions collects from
the estate of any recipient of old-age assistance any amount with respect to
old-age assistance furnished him under the plan, one- half of the net amount so
collected shall be promptly paid to the United States. Any payment so made
shall be deposited in the Treasury to the credit of the appropriation for the
purposes of this title.

(b)
The Board shall approve any plan which fulfills the conditions specified in
subsection (a), except that it shall not approve any plan which imposes, as a
condition of eligibility for old-age assistance under the plan-

(1)
An age requirement of more than sixty-five years, except that the plan may
impose, effective until January 1, 1940, an age requirement of as much as
seventy years; or

(2)
Any residence requirement which excludes any resident of the State who has
resided therein five years during the nine years immediately preceding the
application for old-age assistance and has resided therein continuously for one
year immediately preceding the application; or (3) Any citizenship requirement
which excludes any citizen of the United States.

PAYMENT
TO STATES

SEC.
3. (a) From the sums appropriated therefor, the Secretary of the Treasury shall
pay to each State which has an approved plan for old-age assistance, for each
quarter, beginning with the quarter commencing July 1, 1935,

(1)
an amount, which shall be used exclusively as old-age assistance, equal to
one-half of the total of the sums expended during such quarter as old-age
assistance under the State plan with respect to each individual who at the time
of such expenditure is sixty-five years of age or older and is not an inmate of
a public institution, not counting so much of such expenditure with respect to
any individual for any month as exceeds $30, and

(2)
5 per centum of such amount, which shall be used for paying the costs of administering
the State plan or for old-age assistance, or both, and for no other purpose:
Provided, That the State plan, in order to be approved by the Board, need not
provide for financial participation before July 1, 1937, by the State, in the
case of any State which the Board, upon application by the State and after
reasonable notice and opportunity for hearing to the State, finds is prevented
by its constitution from providing such financial participation.

(b)
The method of computing and paying such amounts shall be as follows:

(1)
The Board shall, prior to the beginning of each quarter, estimate the amount to
be paid to the State for such quarter under the provisions of clause (1) of
subsection (a), such estimate to be based on

(A)
a report filed by the State containing its estimate of the total sum to be
expended in such quarter in accordance with the provisions of such clause, and
stating the amount appropriated or made available by the State and its
political subdivisions for such expenditures in such quarter, and if such
amount is less than one-half of the total sum of such estimated expenditures,
the source or sources from which the difference is expected to be derived,

(B)
records showing the number of aged individuals in the State, and

(C)
such other investigation as the Board may find necessary.

(2)
The Board shall then certify to the Secretary of the Treasury the amount so
estimated by the Board, reduced or increased, as the case may be, by any sum by
which it finds that its estimate for any prior quarter was greater or less than
the amount which should have been paid to the State under clause (1) of
subsection (a) for such quarter, except to the extent that such sum has been
applied to make the amount certified for any prior quarter greater or less than
the amount estimated by the Board for such prior quarter.

(3)
The Secretary of the Treasury shall thereupon, through the Division of
Disbursement of the Treasury Department and prior to audit or settlement by the
General Accounting Office, pay to the State, at the time or times fixed by the
Board, the amount so certified, increased by 5 per centum.

OPERATION
OF STATE PLANS

SEC.
4. In the case of any State plan for old-age assistance which has been approved
by the Board, if the Board, after reasonable notice and opportunity for hearing
to the State agency administering or supervising the administration of such
plan, finds-

(1)
that the plan has been so changed as to impose any age, residence, or
citizenship requirement prohibited by section 2 (b), or that in the
administration of the plan any such prohibited requirement is imposed, with the
knowledge of such State agency, in a substantial number of cases; or

(2)
that in the administration of the plan there is a failure to comply
substantially with any provision required by section 2 (a) to be included in
the plan; the Board shall notify such State agency that further payments will
not be made to the State until the Board is satisfied that such prohibited
requirement is no longer so imposed, and that there is no longer any such
failure to comply. Until it is so satisfied it shall make no further
certification to the Secretary of the Treasury with respect to such State.

ADMINISTRATION

SEC.
5. There is hereby authorized to be appropriated for the fiscal year ending
June 30, 1936, the sum of $250,000, for all necessary expenses of the Board in
administering the provisions of this title.

DEFINITION

SEC.
6. When used in this title the term old age assistance means money payments to
aged individuals.

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TITLE
II-FEDERAL OLD-AGE BENEFITS OLD-AGE RESERVE ACCOUNT

Section
201. (a) There is hereby created an account in the Treasury of the United
States to be known as the Old-Age Reserve Account hereinafter in this title
called the Account. There is hereby authorized to be appropriated to the
Account for each fiscal year, beginning with the fiscal year ending June 30,
1937, an amount sufficient as an annual premium to provide for the payments
required under this title, such amount to be determined on a reserve basis in
accordance with accepted actuarial principles, and based upon such tables of
mortality as the Secretary of the Treasury shall from time to time adopt, and
upon an interest rate of 3 per centum per annum compounded annually. The
Secretary of the Treasury shall submit annually to the Bureau of the Budget an
estimate of the appropriations to be made to the Account.

(b)
It shall be the duty of the Secretary of the Treasury to invest such portion of
the amounts credited to the Account as is not, in his judgment, required to
meet current withdrawals. Such investment may be made only in interest-bearing
obligations of the United States or in obligations guaranteed as to both principal
and interest by the United States. For such purpose such obligations may be
acquired

(1)
on original issue at par, or

(2)
by purchase of outstanding obligations at the market price. The purposes for
which obligations of the United States may be issued under the Second Liberty
Bond Act, as amended, are hereby extended to authorize the issuance at par of
special obligations exclusively to the Account. Such special obligations shall
bear interest at the rate of 3 per centum per annum. Obligations other than
such special obligations may be acquired for the Account only on such terms as
to provide an investment yield of not less than 3 per centum per annum.

(c)
Any obligations acquired by the Account (except special obligations issued
exclusively to the Account) may be sold at the market price, and such special
obligations may be redeemed at par plus accrued interest.

(d)
The interest on, and the proceeds from the sale or redemption of, any
obligations held in the Account shall be credited to and form a part of the
Account.

(e)
All amounts credited to the Account shall be available for making payments
required under this title.

(f)
The Secretary of the Treasury shall include in his annual report the actuarial
status of the Account.

OLD-AGE
BENEFIT PAYMENTS

SEC.
202. (a) Every qualified individual (as defined in section 210) shall be
entitled to receive, with respect to the period beginning on the date he
attains the age of sixty-five, or on January 1, 1942, whichever is the later,
and ending on the date of his death, an old-age benefit (payable as nearly as
practicable in equal monthly installments) as follows:

(1)
If the total wages (as defined in section 210) determined by the Board to have
been paid to him, with respect to employment (as defined in section 210) after
December 31, 1936, and before he attained the age of sixty- five, were not more
than $3,000, the old-age benefit shall be at a monthly rate of one-half of 1
per centum of such total wages;

(2)
If such total wages were more than $3,000, the old-age benefit shall be at a
monthly rate equal to the sum of the following:

(A)
One-half of 1 per centum of $3,000; plus

(B)
One-twelfth of 1 per centum of the amount by which such total wages exceeded
$3,000 and did not exceed $45,000; plus

(C)
One-twenty-fourth of 1 per centum of the amount by which such total wages
exceeded $45,000.

(b)
In no case shall the monthly rate computed under subsection (a) exceed $85.

(c)
If the Board finds at any time that more or less than the correct amount has
theretofore been paid to any individual under this section, then, under
regulations made by the Board, proper adjustments shall be made in connection
with subsequent payments under this section to the same individual.

(d)
Whenever the Board finds that any qualified individual has received wages with
respect to regular employment after he attained the age of sixty-five, the
old-age benefit payable to such individual shall be reduced, for each calendar
month in any part of which such regular employment occurred, by an amount equal
to one month s benefit. Such reduction shall be made, under regulations
prescribed by the Board, by deductions from one or more payments of old-age
benefit to such individual.

PAYMENTS
UPON DEATH

SEC.
203. (a) If any individual dies before attaining the age of sixty-five, there
shall be paid to his estate an amount equal to 3 « per centum of the total
wages determined by the Board to have been paid to him, with respect to
employment after December 31, 1936.

(b)
If the Board finds that the correct amount of the old-age benefit payable to a
qualified individual during his life under section 202 was less than 3 « per
centum of the total wages by which such old-age benefit was measurable, then
there shall be paid to his estate a sum equal to the amount, if any, by which
such 3 « per centum exceeds the amount (whether more or less than the correct
amount) paid to him during his life as old-age benefit.

(c)
If the Board finds that the total amount paid to a qualified individual under
an old-age benefit during his life was less than the correct amount to which he
was entitled under section 202, and that the correct amount of such old-age
benefit was 3 « per centum or more of the total wages by which such old-age
benefit was measurable, then there shall be paid to his estate a sum equal to
the amount, if any, by which the correct amount of the old- age benefit exceeds
the amount which was so paid to him during his life.

PAYMENTS
TO AGED INDIVIDUALS NOT QUALIFIED FOR BENEFITS

SEC.
204. (a) There shall be paid in a lump sum to any individual who, upon
attaining the age of sixty-five, is not a qualified individual, an amount equal
to 3 « per centum of the total wages determined by the Board to have been paid
to him, with respect to employment after December 31, 1936, and before he
attained the age of sixty-five.

(b)
After any individual becomes entitled to any payment under subsection (a), no
other payment shall be made under this title in any manner measured by wages
paid to him, except that any part of any payment under subsection (a) which is
not paid to him before his death shall be paid to his estate.

AMOUNTS
OF $500 OR LESS PAYABLE TO ESTATES

SEC.
205. If any amount payable to an estate under section 203 or 204 is $500 or
less, such amount may, under regulations prescribed by the Board, be paid to
the persons found by the Board to be entitled thereto under the law of the
State in which the deceased was domiciled, without the necessity of compliance
with the requirements of law with respect to the administration of such estate.

OVERPAYMENTS
DURING LIFE

SEC.
206. If the Board finds that the total amount paid to a qualified individual
under an old-age benefit during his life was more than the correct amount to
which he was entitled under section 202, and was 3 « per centum or more of the
total wages by which such old-age benefit was measurable, then upon his death
there shall be repaid to the United States by his estate the amount, if any, by
which such total amount paid to him during his life exceeds whichever of the
following is the greater:

(1)
Such 3 « per centum, or

(2)
the correct amount to which he was entitled under section 202.

METHOD
OF MAKING PAYMENTS

SEC.
207. The Board shall from time to time certify to the Secretary of the Treasury
the name and address of each person entitled to receive a payment under this
title, the amount of such payment, and the time at which it should be made, and
the Secretary of the Treasury through the Division of Disbursement of the
Treasury Department, and prior to audit or settlement by the General Accounting
Office, shall make payment in accordance with the certification by the Board.

ASSIGNMENT

SEC.
208. The right of any person to any future payment under this title shall not
be transferable or assignable, at law or in equity, and none of the moneys paid
or payable or rights existing under this title shall be subject to execution,
levy, attachment, garnishment, or other legal process, or to the operation of
any bankruptcy or insolvency law.

PENALTIES

SEC.
209. Whoever in any application for any payment under this title makes any
false statement as to any material fact, knowing such statement to be false,
shall be fined not more than $1,000 or imprisoned for not more than one year,
or both.

DEFINITIONS

SEC.
210. When used in this title– (a) The term wages means all remuneration for
employment, including the cash value of all remuneration paid in any medium other
than cash; except that such term shall not include that part of the
remuneration which, after remuneration equal to $3,000 has been paid to an
individual by an employer with respect to employment during any calendar year,
is paid to such employer with respect to employment during such calendar year.

(b)
The term employment means any service, of whatever nature, performed within the
United States by an employee for his employer, except-

(1)
Agricultural labor;

(2)
Domestic service in a private home;

(3)
Casual labor not in the course of the employer s trade or business;

(4)
Service performed as an officer or member of the crew of a vessel documented
under the laws of the United States or of any foreign country;

(5)
Service performed in the employ of the United States Government or of an
instrumentality of the United States;

(6)
Service performed in the employ of a State, a political subdivision thereof, or
an instrumentality of one or more States or political subdivisions;

(7)
Service performed in the employ of a corporation, community chest, fund, or
foundation, organized and operated exclusively for religious, charitable,
scientific, literary, or educational purposes, or for the prevention of cruelty
to children or animals, no part of the net earnings of which inures to the
benefit of any private shareholder or individual.

(c)
The term qualified individual means any individual with respect to whom it
appears to the satisfaction of the Board that-

(1)
He is at least sixty-five years of age; and

(2)
The total amount of wages paid to him, with respect to employment after
December 31, 1936, and before he attained the age of sixty-five, was not less
than $2,000; and

(3)
Wages were paid to him, with respect to employment on some five days after
December 31, 1936, and before he attained the age of sixty-five, each day being
in a different calendar year.

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TITLE
III-GRANTS TO STATES FOR UNEMPLOYMENT COMPENSATION ADMINISTRATION APPROPRIATION

SECTION
301. For the purpose of assisting the States in the administration of their
unemployment compensation laws, there is hereby authorized to be appropriated,
for the fiscal year ending June 30, 1936, the sum of $4,000,000, and for each
fiscal year thereafter the sum of $49,000,000, to be used as hereinafter
provided.

PAYMENTS
TO STATES

SEC.
302. (a) The Board shall from time to time certify to the Secretary of the
Treasury for payment to each State which has an unemployment compensation law
approved by the Board under Title IX, such amounts as the Board determines to
be necessary for the proper administration of such law during the fiscal year
in which such payment is to be made. The Board s determination shall be based
on

(1)
the population of the State;

(2)
an estimate of the number of persons covered by the State law and of the cost of
proper administration of such law; and

(3)
such other factors as the Board finds relevant. The Board shall not certify for
payment under this section in any fiscal year a total amount in excess of the
amount appropriated therefor for such fiscal year.

(b)
Out of the sums appropriated therefor, the Secretary of the Treasury shall,
upon receiving a certification under subsection

(a),
pay, through the Division of Disbursement of the Treasury Department and prior
to audit or settlement by the General Accounting Office, to the State agency
charged with the administration of such law the amount so certified.

PROVISIONS
OF STATE LAWS

SEC.
303. (a) The Board shall make no certification for payment to any State unless
it finds that the law of such State, approved by the Board under Title IX,
includes provisions for-

(1)
Such methods of administration (other than those relating to selection, tenure
of office, and compensation of personnel) as are found by the Board to be
reasonably calculated to insure full payment of unemployment compensation when
due; and

(2)
Payment of unemployment compensation solely through public employment offices
in the State or such other agencies as the Board may approve; and

(3)
Opportunity for a fair hearing, before an impartial tribunal, for all
individuals whose claims for unemployment compensation are denied; and

(4)
The payment of all money received in the unemployment fund of such State,
immediately upon such receipt, to the Secretary of the Treasury to the credit
of the Unemployment Trust Fund established by section 904; and

(5)
Expenditure of all money requisitioned by the State agency from the
Unemployment Trust Fund, in the payment of unemployment compensation, exclusive
of expenses of admin- istration; and

(6)
The making of such reports, in such form and containing such information, as
the Board may from time to time require, and compliance with such provisions as
the Board may from time to time find necessary to assure the correctness and
verification of such reports; and

(7)
Making available upon request to any agency of the United States charged with
the administration of public works or assistance through public employment, the
name, address, ordinary occupation, and employment status of each recipient of
unemployment compensation, and a statement of such recipient s rights to
further compensation under such law.

(b)
Whenever the Board, after reasonable notice and opportunity for hearing to the
State agency charged with the administration of the State law finds that in the
administration of the law there is–

(1)
a denial, in a substantial number of cases, of unemployment compensation to
individuals entitled thereto under such law; or

(2)
a failure to comply substantially with any provision specified in subsection
(a); the Board shall notify such State agency that further payments will not be
made to the State until the Board is satisfied that there is no longer any such
denial or failure to comply. Until it is so satisfied it shall make no further
certification to the Secretary of the Treasury with respect to such State.

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TITLE
IV-GRANTS TO STATES FOR AID TO DEPENDENT CHILDREN APPROPRIATION

SECTION
401. For the purpose of enabling each State to furnish financial assistance, as
far as practicable under the conditions in such State, to needy dependent
children, there is hereby authorized to be appropriated for the fiscal year
ending June 30, 1936, the sum of $24,750,000, and there is hereby authorized to
be appropriated for each fiscal year thereafter a sum sufficient to carry out
the purposes of this title. The sums made available under this section shall be
used for making payments to States which have submitted, and had approved by
the Board, State plans for aid to dependent children.

STATE
PLANS FOR AID TO DEPENDENT CHILDREN

SEC.
402. (a) A State plan for aid to dependent children must

(1)
provide that it shall be in effect in all political subdivisions of the State,
and, if administered by them, be mandatory upon them;

(2)
provide for financial participation by the State;

(3)
either provide for the establishment or designation of a single State agency to
administer the plan, or provide for the establishment or designation of a
single State agency to supervise the administration of the plan;

(4)
provide for granting to any individual, whose claim with respect to aid to a
dependent child is denied, an opportunity for a fair hearing before such State
agency;

(5)
provide such methods of administration (other than those relating to selection,
tenure of office, and compensation of personnel) as are found by the Board to
be necessary for the efficient operation of the plan; and

(6)
provide that the State agency will make such reports, in such form and
containing such information, as the Board may from time to time require, and
comply with such provisions as the Board may from time to time find necessary
to assure the correctness and verification of such reports.

(b)
The Board shall approve any plan which fulfills the conditions specified in
subsection (a) except that it shall not approve any plan which imposes as a
condition of eligibility for aid to dependent children, a residence requirement
which denies aid with respect to any child residing in the State

(1)
who has resided in the State for one year immediately preceding the application
for such aid or

(2)
who was born within the State within one year immediately preceding the
application, if its mother has resided in the State for one year immediately
preceding the birth.

PAYMENT
TO STATES

SEC.
403. (a) From the sums appropriated therefor, the Secretary of the Treasury
shall pay to each State which has an approved plan for aid to dependent
children, for each quarter, beginning with the quarter commencing July 1, 1935,
an amount, which shall be used exclusively for carrying out the State plan,
equal to one-third of the total of the sums expended during such quarter under
such plan, not counting so much of such expenditure with respect to any
dependent child for any month as exceeds $18, or if there is more than one
dependent child in the same home, as exceeds $18 for any month with respect to
one such dependent child and $12 for such month with respect to each of the
other dependent children.

(b)
The method of computing and paying such amounts shall be as follows:

(1)
The Board shall, prior to the beginning of each quarter, estimate the amount to
be paid to the State for such quarter under the provisions of subsection

(a),
such estimate to be based on

(A)
a report filed by the State containing its estimate of the total sum to be
expended in such quarter in accordance with the provisions of such subsection
and stating the amount appropriated or made available by the State and its
political subdivisions for such expenditures in such quarter, and if such
amount is less than two-thirds of the total sum of such estimated expenditures,
the source or sources from which the difference is expected to be derived,

(B)
records showing the number of dependent children in the State, and

(C)
such other investigation as the Board may find necessary.

(2)
The Board shall then certify to the Secretary of the Treasury the amount so
estimated by the Board, reduced or increased, as the case may be, by any sum by
which it finds that its estimate for any prior quarter was greater or less than
the amount which should have been paid to the State for such quarter, except to
the extent that such sum has been applied to make the amount certified for any
prior quarter greater or less than the amount estimated by the Board for such
prior quarter.

(3)
The Secretary of the Treasury shall thereupon, through the Division of
Disbursement of the Treasury Department and prior to audit or settlement by the
General Accounting Office, pay to the State, at the time or times fixed by the
Board, the amount so certified.

OPERATION
OF STATE PLANS

SEC.
404. In the case of any State plan for aid to dependent children which has been
approved by the Board, if the Board, after reasonable notice and opportunity
for hearing to the State agency administering or supervising the administration
of such plan, finds-

(1)
that the plan has been so changed as to impose any residence requirement
prohibited by section 402 (b), or that in the administration of the plan any
such prohibited requirement is imposed, with the knowledge of such State
agency, in a substantial number of cases; or

(2)
that in the administration of the plan there is a failure to comply
substantially with any provision required by section 402 (a) to be included in
the plan; the Board shall notify such State agency that further payments will
not be made to the State until the Board is satisfied that such prohibited requirement
is no longer so imposed, and that there is no longer any such failure to
comply. Until it is so satisfied it shall make no further certification to the
Secretary of the Treasury with respect to such State.

ADMINISTRATION

SEC.
405. There is hereby authorized to be appropriated for the fiscal year ending
June 30, 1936, the sum of $250,000 for all necessary expenses of the Board in
administering the provisions of this title.

DEFINITIONS

SEC.
406. When used in this title-

(a)
The term dependent child means a child under the age of sixteen who has been
deprived of parental support or care by reason of the death, continued absence
from the home, or physical or mental incapacity of a parent, and who is living
with his father, mother, grandfather, grandmother, brother, sister, stepfather,
stepmother, stepbrother, stepsister, uncle, or aunt, in a place of residence
maintained by one or more of such relatives as his or their own home;

(b)
The term aid to dependent children means money payments with respect to a
dependent child or dependent children.

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TITLE
V- GRANTS TO STATES FOR MATERNAL AND CHILD WELFARE

PART
1-MATERNAL AND CHILD HEALTH SERVICES

APPROPRIATION

SECTION
501. For the purpose of enabling each State to extend and improve, as far as
practicable under the conditions in such State, services for promoting the
health of mothers and children, especially in rural areas and in areas
suffering from severe economic distress, there is hereby authorized to be
appropriated for each fiscal year, beginning with the fiscal year ending June
30, 1936, the sum of $3,800,000. The sums made available under this section
shall be used for making payments to States which have submitted, and had approved
by the Chief of the Children s Bureau, State plans for such services.

ALLOTMENTS
TO STATES

SEC.
502. (a) Out of the sums appropriated pursuant to section 501 for each fiscal
year the Secretary of Labor shall allot to each State $20,000, and such part of
$1,800,000 as he finds that the number of live births in such State bore to the
total number of live births in the United States, in the latest calendar year
for which the Bureau of the Census has available statistics.

(b)
Out of the sums appropriated pursuant to section 501 for each fiscal year the
Secretary of Labor shall allot to the States $980,000 (in addition to the
allotments made under subsection (a)), according to the financial need of each
State for assistance in carrying out its State plan, as determined by him after
taking into consideration the number of live births in such State.

(c)
The amount of any allotment to a State under subsection (a) for any fiscal year
remaining unpaid to such State at the end of such fiscal year shall be
available for payment to such State under section 504 until the end of the
second succeeding fiscal year. No payment to a State under section 504 shall be
made out of its allotment for any fiscal year until its allotment for the
preceding fiscal year has been exhausted or has ceased to be available.

APPROVAL
OF STATE PLANS

SEC.
503. (a) A State plan for maternal and child-health services must (1) provide
for financial participation by the State;

(2)
provide for the administration of the plan by the State health agency or the
supervision of the administration of the plan by the State health agency;

(3)
provide such methods of administration (other than those relating to selection,
tenure of office, and compensation of personnel) as are necessary for the
efficient operation of the plan;

(4)
provide that the State health agency will make such reports, in such form and
containing such information, as the Secretary of Labor may from time to time
require, and comply with such provisions as he may from time to time find
necessary to assure the correctness and verification of such reports;

(5)
provide for the extension and improvement of local maternal and child-health
services administered by local child health units;

(6)
provide for cooperation with medical, nursing, and welfare groups and
organizations; and

(7)
provide for the development of demonstration services in needy areas and among
groups in special need.

(b)
The Chief of the Children s Bureau shall approve any plan which fulfills the
conditions specified in subsection (a) and shall thereupon notify the Secretary
of Labor and the State health agency of his approval.

PAYMENT
TO STATES

SEC.
504. (a) From the sums appropriate therefor and the allotments available under
section 502 (a), the Secretary of the Treasury shall pay to each State which
has an approved plan for maternal and child-health services, for each quarter
beginning with the quarter commencing July 1935, an amount, which shall be used
exclusively for carrying out the State plan, equal to one-half of the total sum
expended during such quarter for carrying out such plan.

(b)
The method of computing and paying such amounts shall be as follows:

(1)
The Secretary of Labor shall, prior the beginning of each quarter, estimate the
amount to be paid to the State for such quarter under the provisions of
subsection (a), such estimate to be based on

(A)
a report filed by the State containing its estimate of the total sum to be
expended in such quarter in accordance with the provisions of such subsection
and stating the amount appropriated or made available by the State and its
political subdivisions for such expenditures in such quarter, and if such
amount is less than one-half of the total sum of such estimated expenditures,
the source or sources from which the difference is expected to be derived, and

(B)
such investi gation as he may find necessary.

(2)
The Secretary of Labor shall then certify the amount so estimated by him to the
Secretary of the Treasury, reduced or increased, as the case may be, by any sum
by which the Secretary of Labor finds that his estimate for any prior quarter
was greater or less than the amount, which should have been paid to the State
for such quarter, except to the extent that such sum has been applied to make
the amount certified for any prior quarter greater or less than the amount,
estimated by the Secretary of Labor for such prior quarter.

(3)
The Secretary of the Treasury shall thereupon, through the Division of
Disbursement of the Treasury Department and prior to audit or settlement by the
General Accounting Office, pay to the State, at the time or times fixed by the
Secretary of Labor, the amount so certified.

(c)
The Secretary of Labor shall from time to time certify to the Secretary of the
Treasury the amounts to be paid to the States from the allotments available
under section 502 (b), and the Secretary of the Treasury shall, through the
Division of Disbursement of the Treasury Department and prior to audit or
settlement by the General Accounting Office, make payments of such amounts from
such allotments at the time or times specified by the Secretary of Labor.

OPERATION
OF STATE PLANS

SEC.
505. In the case of any State plan for maternal and child-health services which
has been approved by the Chief of the Children s Bureau, if the Secretary of
Labor, after reasonable notice and opportunity for hearing to the State agency
administering or supervising the administration of such plan, finds that in the
administration of the plan there is a failure to comply substantially with any
provision required by section 503 to be included in the plan, he shall notify
such State agency that further payments will not be made to the State until he
is satisfied that there is no longer any such failure to comply. Until he is so
satisfied he shall make no further certification to the Secretary of the
Treasury with respect to such State.

PART
2-SERVICES FOR CRIPPLED CHILDREN

APPROPRIATION

SEC.
511. For the purpose of enabling each State to extend and improve (especially
in rural areas and in areas suffering from severe economic distress), as far as
practicable under the conditions in such State, services for locating crippled
children and for providing medical, surgical, corrective, and other services
and care, and facilities for diagnosis, hospitalization, and aftercare, for
children who are crippled or who are suffering from conditions which lead to
crippling, there is hereby authorized to be appropriated for each fiscal year
beginning with the fiscal year ending June 30, 1936, the sum of $2,850,000. The
sums made available under this section shall be used for making payments to
States which have submitted, and had approved by the Chief of the Children s
Bureau, State plans for such services.

ALLOTMENTS
TO STATES

SEC.
512. (a) Out of the sums appropriated pursuant to section 511 for each fiscal
year the Secretary of Labor shall allot to each State $20,000, and the
remainder to the States according to the need of each State as determined by
him after taking into consideration the number of crippled children in such
State in need of the services referred to section 511 and the cost of furnishing
such service to them

(b)
The amount of any allotment to a State under subsection (a) for any fiscal year
remaining unpaid to such State at the end of such fiscal year shall be
available for payment to such State under section 514 until the end of the
second succeeding fiscal year. No payment to a State under section 514 shall be
made out of its allotment for any fiscal year until its allotment for the
preceding fiscal year has been exhausted or has ceased to be available.

APPROVAL
OF STATE PLANS

SEC.
513. (a) A State plan for services for crippled children must

(1)
provide for financial participation by the State;

(2)
provide for the administration of the plan by a State agency or the supervision
of the administration of the plan by a State agency;

(3)
provide such methods of administration (other than those relating to selection,
tenure of office, and compensation of personnel) as are necessary for the
efficient operation of the plan;

(4)
provide that the State agency will make such reports, in such form and
containing such information, as the Secretary of Labor may from time to time
require, and comply with such provisions as he may from time to time find
necessary to assure the correctness and verification of such reports;

(5)
provide for carrying out the purposes specified in section 511; and

(6)
provide for cooperation with medical, health, nursing, and welfare groups and
organizations and with any agency in such State charged with administering
State laws providing for vocational rehabilitation of physically handicapped
children.

(b)
The Chief of the Children s Bureau shall approve any plan which fulfills the
conditions specified in subsection (a) and shall thereupon notify the Secretary
of Labor and the State agency of his approval.

PAYMENT
TO STATES

SEC.
514. (a) From the sums appropriated therefor and the allotments available under
section 512, the Secretary of the Treasury shall pay to each State which has an
approved plan for services for crippled children, for each quarter, beginning
the quarter commencing July 1, 1935, an amount which shall be used exclusively
for carrying out the State plan, equal to one-half of the total sum expended
during such quarter for carrying out such plan.

(b)
The method of computing and paying such amounts shall be as follows:

(1)
The Secretary of Labor shall, prior the beginning of each quarter, estimate the
amount to be paid to the State for such quarter under the provisions of
subsection (a), such estimate to be based on

(A)
a report filed by the State containing its estimate of the total sum to be
expended in such quarter in accordance with the provisions of such subsection
and stating the amount appropriated or made available by the State and its
political subdivisions for such expenditures in such quarter and if such amount
is less than one-half of the total sum of such estimated expenditures the
source or sources from which the difference is expected to be derived, and

(B)
such investigation as he may find necessary.

(2)
The Secretary of Labor shall then certify the amount so estimated by him to the
Secretary of the Treasury, reduced or increased as the case may be, by any sum
by which the Secretary of Labor finds that his estimate for any prior quarter
was greater or less than the amount which should have been paid to the State for
such quarter, except to the extent that such sum has been applied to make the
amount certified for any prior quarter greater or less than the amount
estimated by the Secretary of Labor for such prior quarter.

(3)
The Secretary of the Treasury shall thereupon, through the Division of
Disbursement of the Treasury Department and prior to audit or settlement by the
General Accounting Office, pay to the State, at the time or times fixed by the
Secretary of Labor, the amount so certified.

OPERATION
OF STATE PLANS

SEC.
515. In the case of any State plan for services for crippled children which has
been approved by the Chief of the Children s Bureau, if the Secretary of Labor,
after reasonable notice and opportunity for hearing to the State agency
administering or supervising the administration of such plan finds that in the
administration of the plan there a failure to comply substantially with any
provision required by section 513 to be included in the plan, he shall notify
such State agency that further payments will not be made to the State until he
is satisfied that there is no longer any such failure to comply. Until he is so
satisfied he shall make no further certification to the Secretary of the
Treasury with respect to such State.

PART
3- CHILD WELFARE SERVICES

SEC.
521. (a) For the purpose of enabling the United States, through the Children s
Bureau, to cooperate with State public-welfare agencies establishing,
extending, and strengthening, especially in predominantly rural areas,
public-welfare services (hereinafter in this section referred to as
child-welfare services ) for the protection and care of homeless, dependent,
and neglected children, and children in danger of becoming delinquent, there is
hereby authorized to be appropriated for each fiscal year, beginning with the
year ending June 30, 1936, the sum of $1,500,000. Such amount shall be allotted
by the Secretary of Labor for use by cooperating State public- welfare agencies
on the basis of plans developed jointly by the State agency and the Children s
Bureau, to each State, $10,000, and the remainder to each State on the basis of
such plans, not to exceed such part of the remainder as the rural population of
such State bears to the total rural population of the United States. The amount
so allotted shall be expended for payment of part of the cost of district,
county or other local child- welfare services in areas predominantly rural, and
for developing State services for the encouragement and assist- ance of
adequate methods of community child-welfare organization in areas predominantly
rural and other areas of special need. The amount of any allotment to a State
under this section for any fiscal year remaining unpaid to such State at the
end of such fiscal year shall be available for payment to such State under this
section until the end of the second succeeding fiscal year. No payment to a
State under this section shall be made out of its allotment for any fiscal year
until its allotment for the preceding fiscal year has been exhausted or has ceased
to be available.

(b)
From the sums appropriated therefor and the allotments available under
subsection (a) the Secretary of Labor shall from time to time certify to the
Secretary of the Treasury the amounts to be paid to the States, and the
Secretary of the Treasury shall, through the Division of Disbursement of the
Treasury Department and prior to audit or settlement by the General Accounting
Office, make payments of such amounts from such allotments at the time or times
specified by the Secretary of Labor.

PART
4- VOCATIONAL REHABILITATION

SEC.
531. (a) In order to enable the United States to cooperate with the States and
Hawaii in extending and strengthening their programs of vocational
rehabilitation of the physically disabled, and to continue to carry out the
provisions and purposes of the Act entitled An Act to provide for the promotion
of vocational rehabilitation of persons disabled in industry or otherwise and
their return to civil employment , approved June 2, 1920, as amended (U.S.C.,
title 29, ch. 4; U.S.C., Supp. VII title 29, secs. 31, 32, 34, 35, 37, 39, and
40), there is hereby authorized to be appropriated for the fiscal years ending
June 30, 1936, and June 30, 1937, the sum of $841,000 for each such fiscal year
in addition to the amount of the existing authorization, and for each fiscal
year thereafter the sum of $1,938,000. Of the sums appropriated pursuant to
such authorization for each fiscal year, $5,000 shall be apportioned to the
Territory of Hawaii and the remainder shall be apportioned among the several
States in the manner provided in such Act of June 2, 1920, as amended.

(b)
For the administration of such Act of June 2, 1920, as amended, by the Federal
agency authorized to administer it, there is hereby authorized to be appropriated
for the fiscal years ending June 30, 1936, and June 30, 1937, the sum of
$22,000 for each such fiscal year in addition to the amount of the existing
authorization, and for each fiscal year thereafter the sum of $102,000.

PART
5- ADMINISTRATION

SEC.
541. (a) There is hereby authorized to be appropriated for the fiscal year
ending June 30, 1936, the sum of $425,000, for all necessary expenses of the
Children s Bureau in administering the provisions of this title, except section
531.

(b)
The Children s Bureau shall make such studies and investigations as will
promote the efficient administration of this title, except section 531.

(c)
The Secretary of Labor shall include in his annual report to Congress a full
account of the administration of this title, except section 531.

——————————————————————————–

TITLE
VI- PUBLIC HEALTH WORK APPROPRIATION

SECTION
601. For the purpose of assisting States, counties, health districts, and other
political subdivisions of the States in establishing and maintaining adequate
public-health services, including the training of personnel for State and local
health work, there is hereby authorized to be appropriated for each fiscal
year, beginning with the fiscal year ending June 30,1936, the sum of $8,000,000
to be used as hereinafter provided.

STATE
AND LOCAL PUBLIC HEALTH SERVICES

SEC.
602. (a) The Surgeon General of the Public Health Service, with the approval of
the Secretary of the Treasury, shall, at the beginning of each fiscal year,
allot to the States the total of (1) the amount appropriated for such year
pursuant to section 601; and (2) the amounts of the allotments under this
section for the preceding fiscal year remaining unpaid to the States at the end
of such fiscal year. The amounts of such allotments shall be determined on the
basis of (1) the population; (2) the special health problems; and (3) the
financial needs; of the respective States. Upon making such allotments the
Surgeon General of the Public Health Service shall certify the amounts thereof
to the Secretary of the Treasury.

(b)
The amount of an allotment to any State under subsection (a) for any fiscal
year, remaining unpaid at the end of such fiscal year, shall be available for
allotment to States under subsection (a) for the succeeding fiscal year, in
addition to the amount appropriated for such year.

(c)
Prior to the beginning of each quarter of the fiscal year, the Surgeon General
of the Public Health Service shall, with the approval of the Secretary of the
Treasury, determine in accordance with rules and regulations previously
prescribed by such Surgeon General after consultation with a conference of the
State and Territorial health authorities, the amount to be paid to each State
for such quarter from the allotment to such State, and shall certify the amount
so determined to the Secretary of the Treasury. Upon receipt of such certification,
the Secretary of the Treasury shall, through the Division of Disbursement of
the Treasury Department and prior to audit or settlement by the General
Accounting Office, pay in accordance with such certification.

(d)
The moneys so paid to any State shall be expended solely in carrying out the
purposes specified in section 601, and in accordance with plans presented by
the health authority of such State and approved by the Surgeon General of the
Public Health Service.

INVESTIGATIONS

SEC.
603. (a) There is hereby authorized to be appropriated for each fiscal year,
beginning with the fiscal year ending June 30, 1936, the sum of $2,000,000 for
expenditure by the Public Health Service for investigation of disease and
problems of sanitation (including the printing and binding of the findings of
such investigations), and f or the pay and allowances and traveling expenses of
personnel of the Public Health Service, including commissioned officers,
engaged in such investigations or detailed to cooperate with the health
authorities of any State in carrying out the purposes specified in section 601:
Provided, That no personnel of the Public Health Service shall be detailed to
cooperate with the health authorities of any State except at the request of the
proper authorities of such State.

(b)
The personnel of the Public Health Service paid from any appropriation not made
pursuant to subsection (a) may be detailed to assist in carrying out the
purposes of this title. The appropriation from which they are paid shall be
reimbursed from the appropriation made pursuant to subsection (a) to the extent
of their salaries and allowances for services performed while so detailed.

(c)
The Secretary of the Treasury shall include in his annual report to Congress a
full account of the administration of this title.

——————————————————————————–

TITLE
VII-SOCIAL SECURITY BOARD ESTABLISHMENT

SECTION
701. There is hereby established a Social Security Board (in this Act referred
to as the Board ) to be composed of three members to be appointed by the
President, by and with the advice and consent of the Senate. During his term of
membership on the Board , no member shall engage in any other business,
vocation, or employment. Not more than two of the members of the Board shall be
members of the same political party. Each member shall receive a salary at the
rate of $10,000 a year and shall hold office for a term of six years, except
that

(1)
any member appointed to fill a vacancy occurring prior to the expiration of the
term for which his predecessor was appointed, shall be appointed for the
remainder of such term; and

(2)
the terms of office of the members first taking office after the date of the
enactment of this Act shall expire, as designated by the President at the time
of appointment, one at the end of two years, one at the end of four years, and
one at the end of six years, after the date of the enactment of this Act. The
President shall designate one of the members as the chairman of the Board.

DUTIES
OF THE SOCIAL SECURITY BOARD

SEC.
702. The Board shall perform the duties imposed upon it by this Act and shall
also have the duty of studying and making recommendations as to the most
effective methods of providing economic security through social insurance, and
as to legislation and matters of administrative policy concerning old-age
pensions, unemployment compensation, accident compensation, and related
subjects.

EXPENSES
OF THE BOARD

SEC.
703. The Board is authorized to appoint and fix the compensation of such
officers and employees, and to make such expenditures, as may be necessary for
carrying out its functions under this Act. Appointments of attorneys and
experts may be made without regard to the civil-service laws.

REPORTS

SEC.
704. The Board shall make a full report to Congress, at the beginning of each
regular session, of the administration of the functions with which it is
charged.

——————————————————————————–

TITLE
VIII- TAXES WITH RESPECT TO EMPLOYMENT

INCOME
TAX ON EMPLOYEES

SECTION
801. In addition to other taxes, there shall be levied, collected, and paid
upon the income of every individual a tax equal to the following percentages of
the wages (as defined in section 811) received by him after December 31, 1936,
with respect to employment (as defined in section 811) after such date:

(1)
With respect to employment during the calendar years 1937, 1938, and 1939, the
rate shall be 1 per centum.

(2)
With respect to employment during the calendar years 1940, 1941, and 1942, the
rate shall 1 « per centum.

(3)
With respect to employment during the calendar years 1943, 1944, and 1945, the
rate shall be 2 per centum.

(4)
With respect to employment during the calendar years 1946, 1947, and 1948, the
rate shall be 2 « per centum.

(5)
With respect to employment after December 31, 1948, the rate shall be 3 per
centum.

DEDUCTION
OF TAX FROM WAGES

SEC.
802. (a) The tax imposed by section 801 shall be collected by the employer of
the taxpayer by deducting the amount of the tax from the wages as and when
paid. Every employer required so to deduct the tax is hereby made liable for
the payment of such tax, and is hereby indemnified against the claims and demands
of any person for the amount of any such payment made by such employer.

(b)
If more or less than the correct amount of tax imposed by section 801 is paid
with respect to any wage payment, then, under regulations made under this
title, proper adjustments, with respect both to the tax and the amount to be
deducted, shall be made, without interest, in connection with subsequent wage
payments to the same individual by the same employer.

DEDUCTIBILITY
FROM INCOME TAX

SEC.
803. For the purposes of the income tax imposed by Title I of the Revenue Act
of 1934 or by any Act of Congress in substitution therefor, the tax imposed by
section 801 shall not be allowed as a deduction to the taxpayer in computing
his net income for the year in which such tax is deducted from his wages.

EXCISE
TAX ON EMPLOYERS

SEC.
804. In addition to other taxes, every employer shall pay an excise tax, with
respect to having individuals in his employ, equal to the following percentages
of the wages (as defined in section 811) paid by him after December 31, 1936,
with respect to employment (as defined in section 811) after such date:

(1)
With respect to employment during the calendar years 1937, 1938, and 1939, the
rate shall be 1 per centum.

(2)
With respect to employment during the calendar years 1940, 1941, and 1942, the
rate shall be 1 « per centum.

(3)
With respect to employment during the calendar years 1943, 1944, and 1945, the
rate shall be 2 per centum.

(4)
With respect to employment during the calendar years 1946, 1947, and 1948, the
rate shall be 2 « per centum.

(5)
With respect to employment after December 31, 1948, the rate shall be 3 per
centum.

ADJUSTMENT
OF EMPLOYERS TAX

SEC.
805. If more or less than the correct amount of tax imposed by section 804 is
paid with respect to any wage payment, then, under regulations made under this
title, proper adjustments with respect the tax shall be made, without interest,
in connection with subsequent wage payments to the same individual by the same
employer.

REFUNDS
AND DEFICIENCIES

SEC.
806. If more or less than the correct amount of tax imposed by section 801 or
804 is paid or deducted with respect to any wage payment and the overpayment or
underpayment of tax cannot be adjusted under section 802 (b) or 805 the amount
of the overpayment shall be refunded and the amount of the underpayment shall
be collected in such manner and at such times (subject to the statutes of
limitations properly applicable thereto) as may be prescribed by regulations
made under this title.

COLLECTION
AND PAYMENT OF TAXES

SEC.
807. (a) The taxes imposed by this title shall be collected by the Bureau of
Internal Revenue under the direction of the Secretary of the Treasury and shall
be paid into the Treasury of the United States as internal- revenue
collections. If the tax is not paid when due, there shall be added as part of
the tax interest (except in the case of adjustments made in accordance with the
provisions of sections 802 (b) and 805) at the rate of one-half of 1 per centum
per month from the date the tax became due until paid.

(b)
Such taxes shall be collected and paid in such manner, at such times, and under
such conditions, not inconsistent with this title (either by making and filing
returns, or by stamps, coupons, tickets, books, or other reasonable devices or
methods necessary or helpful in securing a complete and proper collection and
payment of the tax or in securing proper identification of the taxpayer), as
may be prescribed by the Commissioner of Internal Revenue, with the approval of
the Secretary of the Treasury.

(c)
All provisions of law, including penalties, applicable with respect to any tax
imposed by section 600 or section 800 of the Revenue Act of 1926 and the
provisions of section 607 of the Revenue Act of 1934, shall, insofar as
applicable and not inconsistent with the provisions of this title, be
applicable with respect to the taxes imposed by this title.

(d)
In the payment of any tax under this title a fractional part of a cent shall be
disregarded unless it amounts to one-half cent or more, in which case it shall
be increased to 1 cent.

RULES
AND REGULATIONS

SEC.
808. The Commissioner of Internal Revenue, with the approval of the Secretary
of the Treasury, shall make and publish rules and regulations for the
enforcement of this title.

SALE
OF STAMPS BY POSTMASTERS

SEC.
809. The Commissioner of Internal Revenue shall furnish to the Postmaster
General without prepayment a suitable quantity of stamps, coupons, tickets,
books, or other devices prescribed by the Commissioner under section 807 for
the collection or payment of any tax imposed by this title, to be distributed
to, and kept on sale by, all post offices of the first and second classes, and
such post offices of the third and fourth classes as

(1)
are located in county seats, or

(2)
are certified by the Secretary of the Treasury to the Postmaster General as
necessary to the proper administration of this title. The Postmaster General
may require each such postmaster to furnish bond in such increased amount as he
may from time to time determine, and each such postmaster shall deposit the
receipts from the sale of such stamps, coupons, tickets, books, or other
devices, to the credit of, and render accounts to, the Postmaster General at
such times and in such form as the Postmaster General may by regulations
prescribe. The Postmaster General shall at least once a month transfer to the
Treasury, as internal- revenue collections all receipts so deposited together
with a statement of the additional expenditures in the District of Columbia and
elsewhere incurred by the Post Office Department in performing the duties
imposed upon said Department by this Act, and the Secretary of the Treasury is
hereby authorized and directed to advance from time to time to the credit of
the Post Office Department from appropriations made for the collection of the
taxes imposed by this title, such sums as may be required for such additional
expenditures incurred by the Post Office Department.

PENALTIES

SEC.
810. (a) Whoever buys, sells, offers for sale, uses, transfers, takes or gives
in exchange, or pledges or gives in pledge, except as authorized in this title
or in regulations made pursuant thereto, any stamp, coupon, ticket, book, or
other device, prescribed by the Commissioner of Internal Revenue under section
807 for the collection or payment of any tax imposed by this title, shall be
fined not more than $1,000 or imprisoned for not more than six months, or both.

(b)
Whoever, with intent to defraud, alters, forges, makes, or counterfeits any
stamp, coupon, ticket, book, or other device prescribed by the Commissioner of
Internal Revenue under section 807 for the collection or payment of any tax
imposed by this title, or uses, sells, lends, or has in his possession any such
altered, forged, or counterfeited stamp, coupon, ticket, book, or other device,
or makes, uses, sells, or has in his possession any ma- terial in imitation of
the material used in the manufacture of such stamp, coupon, ticket, book, or
other device, shall be fined not more than $5,000 or imprisoned not more than
five years, or both.

DEFINITIONS

SEC.
811. When used in this title- (a) The term wages means all remuneration for
employment, including the cash value of all remuneration paid in any medium
other than cash; except that such term shall not include that part of the
remuneration which, after remuneration equal to $3,000 has been paid to an
individual by an employer with respect to employment during any calendar year,
is paid to such individual by such employer with respect to employment during
such calendar year.

(b)
The term employment means any service, of whatever nature, performed within the
United States by an employee for his employer, except-

(1)
Agricultural labor;

(2)
Domestic service in a private home;

(3)
Casual labor not in the course of the employer s trade or business;

(4)
Service performed by an individual who has attained the age of sixty-five;

(5)
Service performed as an officer or member of the crew of a vessel documented
under the laws of the United States or of any foreign country;

(6)
Service performed in the employ of the United States Government or of an
instrumentality of the United States;

(7)
Service performed in the employ of a State, a political subdivision thereof, or
an instrumentality of one or more States or political subdivisions;

(8)
Service performed in the employ of a corporation, community chest, fund, or
foundation, organized and operated exclusively for religious, charitable,
scientific, literary, or educational purposes, or for the prevention of cruelty
to children or animals, no part of the net earnings of which inures to the
benefit of any private shareholder or individual.

——————————————————————————–

TITLE
IX- TAX ON EMPLOYERS OF EIGHT OR MORE

IMPOSITION
OF TAX

SECTION
901. On and after January 1, 1936, every employer (as defined in section 907)
shall pay for each calendar year an excise tax, with respect to having
individuals in his employ, equal to the following percentages of the total wages
(as defined in section 907) payable by him (regardless of the time of payment)
with respect to employment (as defined in section 907) during such calendar
year:

(1)
With respect to employment during the calendar year 1936 the rate shall be 1
per centum;

(2)
With respect to employment during the calendar year 1937 the rate shall be 2
per centum;

(3)
With respect to employment after December 31, 1937, the rate shall be 3 per
centum.

CREDIT
AGAINST TAX

SEC.
902. The taxpayer may credit against the tax imposed by section 901 the amount
of contributions, with respect to employment during the taxable year, paid by
him (before the date of filing of his return for the taxable year) into an
unemployment fund under a State law. The total credit allowed to a taxpayer
under this section for all contributions paid into unemployment funds with
respect to employment during such taxable year shall not exceed 90 per centum
of the tax against which it is credited, and credit shall be allowed only for
contributions made under the laws of States certified for the taxable year as
provided in section 903.

CERTIFICATION
OF STATE LAWS

SEC.
903 (a) The Social Security Board shall approve any State law submitted to it,
within thirty days of such submission, which it finds provides that-

(1)
All compensation is to be paid through public employment offices in the State
or such other agencies as the Board may approve;

(2)
No compensation shall be payable with respect to any day of unemployment
occurring within two years after the first day of the first period with respect
to which contributions are required;

(3)
All money received in the unemployment fund shall immediately upon such receipt
be paid over to the Secretary of the Treasury to the credit of the Unemployment
Trust Fund established by section 904;

(4)
All money withdrawn from the Unemployment Trust Fund by the State agency shall
be used solely in the payment of compensation, exclusive of expenses of
administration;

(5)
Compensation shall not be denied in such State to any otherwise eligible
individual for refusing to accept new work under any of the following
conditions:

(A)
If the position offered is vacant due directly to a strike, lockout, or other
labor dispute;

(B)
if the wages, hours, or other conditions of the work offered are substantially
less favorable to the individual than those prevailing for similar work in the
locality;

(C)
if as a condition of being employed the individual would be required to join a
company union or to resign from or refrain from joining any bona-fide labor
organization;

(6)
All the rights, privileges, or immunities conferred by such law or by acts done
pursuant thereto shall exist subject to the power of the legislature to amend
or repeal such law at any time. The Board shall, upon approving such law,
notify the Governor of the State of its approval.

(b)
On December 31 in each taxable year the Board shall certify to the Secretary of
the Treasury each State whose law it has previously approved, except that it
shall not certify any State which, after reasonable notice and opportunity for
hearing to the State agency, the Board finds has changed its law so that it no
longer contains the provisions specified in subsection (a) or has with respect
to such taxable year failed to comply substantially with any such provision.

(c)
If, at any time during the taxable year, the Board has reason to believe that a
State whose law it has previously approved, may not be certified under
subsection (b), it shall promptly so notify the Governor of such State.

UNEMPLOYMENT
TRUST FUND

SEC.
904. (a) There is hereby established in the Treasury of the United States a
trust fund to be known as the Unemployment Trust Fund , hereinafter in this
title called the Fund . The Secretary of the Treasury is authorized and
directed to receive and hold in the Fund all moneys deposited therein by a State
agency from a State unemployment fund. Such deposit may be made directly with
the Secretary of the Treasury or with any Federal reserve bank or member bank
of the Federal Reserve System designated by him for such purpose.

(b)
It shall be the duty of the Secretary of the Treasury to invest such portion of
the Fund as is not, in his judgment, required to meet current withdrawals. Such
investment may be made only in interest-bearing obligations of the United
States or in obligations guaranteed as to both principal and interest by the
United States. For such purpose such obligations may be acquired

(1)
on original issue at par, or

(2)
by purchase of outstanding obligations at the market price. The purposes for
which obligations of the United States may be is- sued under the Second Liberty
Bond Act, as amended, are hereby extended to authorize the issuance at par of
special obligations exclusively to the Fund. Such special obligations shall
bear interest at a rate equal to the average rate of interest, computed as of
the end of the calendar month next preceding the date of such issue, borne by
all interest-bearing obligations of the United States then forming part of the
public debt; except that where such average rate is not a multiple of one
eighth of 1 per centum, the rate of interest of such special obligations shall
be the multiple of one-eighth of 1 per centum next lower than such average
rate. Obligations other than such special obligations may be acquired for the
Fund only on such terms as to provide an investment yield not less than the
yield which would be required in the case of special obligations if issued to
the Fund upon the date of such acquisition.

(c)
Any obligations acquired by the Fund (except special obligations issued
exclusively to the Fund) may be sold at the market price, and such special
obligations may be redeemed at par plus accrued interest.

(d)
The interest on, and the proceeds from the sale or redemption of, any
obligations held in the Fund shall be credited to and form a part of the Fund.

(e)
The Fund shall be invested as a single fund, but the Secretary of the Treasury
shall maintain a separate book account for each State agency and shall credit
quarterly on March 31, June 30, September 30, and December 31, of each year, to
each account, on the basis of the average daily balance of such account, a
proportionate part of the earnings of the Fund for the quarter ending on such
date.

(f)
The Secretary of the Treasury is authorized and directed to pay out of the Fund
to any State agency such amount as it may duly requisition, not exceeding the
amount standing to the account of such State agency at the time of such
payment.

ADMINISTRATION,
REFUNDS, AND PENALTIES

SEC.
905. (a) The tax imposed by this title shall be collected by the Bureau of
Internal Revenue under the direction of the Secretary of the Treasury and shall
be paid into the Treasury of the United States as internal- revenue
collections. If the tax is not paid when due, there shall be added as part of
the tax interest at the rate of one-half of 1 per centum per month from the
date the tax became due until paid.

(b)
Not later than January 31, next following the close of the taxable year, each
employer shall make a return of the tax under this title for such taxable year.
Each such return shall be made under oath, shall be filed with the collector of
internal revenue for the district in which is located the principal place of
business of the employer, or, if he has no principal place of business in the
United States, then with the collector at Baltimore, Maryland, and shall
contain such information and be made in such manner as the Commissioner of
Internal Revenue, with the approval of the Secretary of the Treasury, may by
regulations prescribe. All provisions of law (including penalties) applicable
in respect of the taxes imposed by section 600 of the Revenue Act of 1926,
shall, insofar as not inconsistent with this title, be applicable in respect of
the tax imposed by this title. The Commissioner may extend the time for filing
the return of the tax imposed by this title, under such rules and regulations
as he may prescribe with the approval of the Secretary of the Treasury, but no
such extension shall be for more than sixty days.

(c)
Returns filed under this title shall be open to inspection in the same manner,
to the same extent, and subject to the same provisions of law, including
penalties, as returns made under Title II of the Revenue Act of 1926.

(d)
The taxpayer may elect to pay the tax in four equal installments instead of in
a single payment, in which case the first installment shall be paid not later
than the last day prescribed for the filing of returns, the second installment
shall be paid on or before the last day of the third month, the third
installment on or before the last day of the sixth month, and the fourth
installment on or before the last day of the ninth month, after such last day.
If the tax or any installment thereof is not paid on or before the last day of
the period fixed for its payment, the whole amount of the tax unpaid shall be
paid upon notice and demand from the collector.

(e)
At the request of the taxpayer the time for payment of the tax or any
installment thereof may be extended under regulations prescribed by the
Commissioner with the approval of the Secretary of the Treasury, for a period
not to exceed six months from the last day of the period prescribed for the
payment of the tax or any installment thereof. The amount of the tax in respect
of which any extension is granted shall be paid (with inter- est at the rate of
one-half of 1 per centum per month) on or before the date of the expiration of
the period of the extension.

(f)
In the payment of any tax under this title a fractional part of a cent shall be
disregarded unless it amounts to one-half cent or more, in which case it shall
be increased to 1 cent.

INTERSTATE
COMMERCE

SEC.
906. No person required under a State law to make payments to an unemployment
fund shall be relieved from compliance therewith on the ground that he is
engaged in interstate commerce, or that the State law does not distinguish
between employees engaged in interstate commerce and those engaged in
intrastate commerce.

DEFINITIONS

SEC.
907. When used in this title — (a) The term employer does not include any
person unless on each of some twenty days during the taxable year, each day
being in a different calendar week, the total number of individuals who were in
his employ for some portion of the day (whether or not at the same moment of
time) was eight or more.

(b)
The term wages means all remuneration for employment, including the cash value
of all remuneration paid in any medium other than cash.

(c)
The term employment means any service, of whatever nature, performed within the
United States by an employee for his employer, except-

(1)
Agricultural labor;

(2)
Domestic service in a private home;

(3)
Service performed as an officer or member of a crew of a vessel on the
navigable waters of the United States;

(4)
Service performed by an individual in the employ of his son, daughter, or
spouse, and service performed by a child under the age of twenty-one in the
employ of his father or mother;

(5)
Service performed in the employ of the United States Government or of an
instrumentality of the United States;

(6)
Service performed in the employ of a State, a political subdivision thereof, or
an instrumentality of one or more States or political subdivisions;

(7)
Service performed in the employ of a corporation, community chest, fund, or
foundation, organized and operated exclusively for religious, charitable,
scientific, literary, or educational purposes, or for the prevention of cruelty
to children or animals, no part of the net earnings of which inures to the
benefit of any private shareholder or individual.

(d)
The term State agency means any State officer, board, or other authority,
designated under a State law to administer the unemployment fund in such State.

(e)
The term unemployment fund means a special fund, established under a State law
and administered by a State agency, for the payment of compensation.

(f)
The term contributions means payments required by a State law to be made by an
employer into an unemployment fund, to the extent that such payments are made
by him without any part thereof being deducted or deductible from the wages of
individuals in his employ.

(g)
The term compensation means cash benefits payable to individuals with respect
to their unemployment.

RULES
AND REGULATIONS

SEC.
908. The Commissioner of Internal Revenue, with the approval of the Secretary
of the Treasury, shall make and publish rules and regulations for the
enforcement of this title, except sections 903, 904, and 910.

ALLOWANCE
OF ADDITIONAL CREDIT

SEC.
909. (a) In addition to the credit allowed under section 902, a taxpayer may,
subject to the conditions imposed by section 910, credit against the tax
imposed by section 901 for any taxable year after the taxable year 1937, an
amount, with respect to each State law, equal to the amount, if any, by which
the contributions, with respect to employment in such taxable year, actually
paid by the taxpayer under such law before the date of filing his return for
such taxable year, is exceeded by whichever of the following is the lesser- (1)
The amount of contributions which he would have been required to pay under such
law for such taxable year if he had been subject to the highest rate applicable
from time to time throughout such year to any employer under such law; or (2)
Two and seven-tenths per centum of the wages payable by him with respect to
employment with respect to which contributions for such year were required
under such law.

(b)
If the amount of the contributions actually so paid by the taxpayer is less
than the amount which he should have paid under the State law, the additional
credit under subsection (a) shall be reduced proportionately.

(c)
The total credits allowed to a taxpayer under this title shall not exceed 90
per centum of the tax against which such credits are taken.

CONDITIONS
OF ADDITIONAL CREDIT ALLOWANCE

SEC.
910. (a) A taxpayer shall be allowed the additional credit under section 909,
with respect to his contribution rate under a State law being lower, for any
taxable year, than that of another employer subject to such law, only if the
Board finds that under such law–

(1)
Such lower rate, with respect to contributions to a pooled fund, is permitted
on the basis of not less than three years of compensation experience;

(2)
Such lower rate, with respect to contributions to a guaranteed employment
account, is permitted only when his guaranty of employment was fulfilled in the
preceding calendar year, and such guaranteed employment account amounts to not
less than 7 « per centum of the total wages payable by him, in accordance with
such guaranty, with respect to employment in such State in the preceding
calendar year;

(3)
Such lower rate, with respect to contributions to a separate reserve account,
is permitted only when

(A)
compensation has been payable from such account throughout the preceding
calendar year, and

(B)
such account amounts to not less than five times the largest amount of
compensation paid from such account within any one of the three preceding
calendar years, and

(C)
such account amounts to not less than 7 « per centum of the total wages payable
by him (plus the total wages payable by any other employers who may be
contributing to such account) with respect to employment in such State in the
preceding calendar year.

(b)
Such additional credit shall be reduced, if any contributions under such law
are made by such taxpayer at a lower rate under conditions not fulfilling the
requirements of subsection (a), by the amount bearing the same ratio to such
additional credit as the amount of contributions made at such lower rate bears
to the total of his contributions paid for such year under such law.

(c)
As used in this section-

(1)
The term reserve account means a separate account in an unemployment fund, with
respect to an employer or group of employers, from which compensation is
payable only with respect to the unemployment of individuals who were in the
employ of such employer, or of one of the employers comprising the group.

(2)
The term pooled fund means an unemployment fund or any part thereof in which
all contributions are mingled and undivided, and from which compensation is
payable to all eligible individuals, except that to individuals last employed
by employers with respect to whom reserve accounts are maintained by the State
agency, it is payable only when such accounts are exhausted.

(3)
The term guaranteed employment account means a separate account, in an unemployment
fund, of contributions paid by an employer (or group of employers) who

(A)
guarantees in advance thirty hours of wages for each of forty calendar weeks
(or more, with one weekly hour deducted for each added week guaranteed) in
twelve months, to all the individuals in his employ in one or more distinct
establishments, except that any such individual s guaranty may commence after a
probationary period (included within twelve or less consecutive calendar
weeks), and

(B)
gives security or assurance, satisfactory to the State agency, for the
fulfillment of such guaranties, from which account compensation shall be
payable with respect to the unemployment of any such individual whose guaranty
is not fulfilled or renewed and who is otherwise eligible for compensation
under the State law.

(4)
The term year of compensation experience , as applied to an employer, means any
calendar year throughout which compensation was payable with respect to any
individual in his employ who became unemployed and was eligible for
compensation.

——————————————————————————–

TITLE
X- GRANTS TO STATES FOR AID TO THE BLIND APPROPRIATION

SECTION
1001. For the purpose of enabling each State to furnish financial assistance,
as far as practicable under the conditions in such State, to needy individuals
who are blind, there is hereby authorized to be appropriated for the fiscal
year ending June 30, 1936, the sum of $3,000,000, and there is hereby
authorized to be appropriated for each fiscal year thereafter a sum sufficient
to carry out the purposes of this title. The sums made available under this
section shall be used for making payments to States which have submitted, and
had approved by the Social Security Board, State plans for aid to the blind.

STATE
PLANS FOR AID TO THE BLIND

SEC.
1002. (a) A State plan for aid to the blind must

(1)
provide that it shall be in effect in all political subdivisions of the State,
and, if administered by them, be mandatory upon them;

(2)
provide for financial participation by the State;

(3)
either provide for the establishment or designation of a single State agency to
administer the plan, or provide for the establishment or designation of a
single State agency to supervise the administration of the plan;

(4)
provide for granting to any individual, whose claim for aid is denied, an
oppor- tunity for a fair hearing before such State agency;

(5)
provide such methods of administration (other than those relating to selection,
tenure of office, and compensation of personnel) as are found by the Board to
be necessary for the efficient operation of the plan;

(6)
provide that the State agency will make such reports, in such form and
containing such information, as the Board may from time to time require, and comply
with such provisions as the Board may from time to time find necessary to
assure the correctness and verification of such reports; and

(7)
provide that no aid will be furnished any individual under the plan with
respect to any period with respect to which he is receiving old-age assistance
under the State plan approved under section 2 of this Act.

(b)
The Board shall approve any plan which fulfills the conditions specified in
subsection (a), except that it shall not approve any plan which imposes, as a
condition of eligibility for aid to the blind under the plan-

(1)
Any residence requirement which excludes any resident of the State who has
resided therein five years during the nine years immediately preceding the
application for aid and has resided therein continuously for one year
immediately preceding the application or

(2)
Any citizenship requirement which excludes any citizen of the United States.

PAYMENT
TO STATES

SEC.
1003. (a) From the sums appropriated therefor, the Secretary of the Treasury
shall pay to each State which has an approved plan for aid to the blind, for
each quarter, beginning with the quarter commencing July 1, 1935,

(1)
an amount which shall be used exclusively as aid to the blind equal to one-half
of the total of the sums expended during such quarter as aid to the blind under
the State plan with respect to each individual who is blind and is not an
inmate of a public institution not counting so much of such expenditure with
respect to any individual for any month as exceeds $30, and

(2)
5 per centum of such amount, which shall be used for paying the costs of
administering the State plan or for aid to the blind, or both, and for no other
purpose.

(b)
The method of computing and paying such amounts shall be as follows:

(1)
The Board shall, prior to the beginning of each quarter, estimate the amount to
be paid to the State for such quarter under provisions of clause (1) of
subsection (a), such estimate to be based on

(A)
a report filed by the State containing its estimate of the total sum to be
expended in such quarter in accordance with the provisions of such clause, and
stating the amount appropriated or made available by the State and its
political subdivisions for such expenditures in such quarter, and if such
amount is less than one-half of the total sum of such estimated expenditures,
the source or sources from which the difference is expected to be derived,

(B)
records showing the number of blind individuals in the State, and

(C)
such other investigation as the Board may find necessary.

(2)
The Board shall then certify to the Secretary of the Treasury the amount so
estimated by the Board, reduced or increased, as the case may be, by any sum by
which it finds that its estimate for any prior quarter was greater or less than
the amount which should have been paid to the State under clause (1) of
subsection (a) for such quarter, except to the extent that such sum has been
applied to make the amount certified for any prior quarter greater or less than
the amount estimated by the Board for such prior quarter.

(3)
The Secretary of the Treasury shall thereupon, through the Division of
Disbursement of the Treasury Department and prior to audit or settlement by the
General Accounting Office, pay to the State, at the time or times fixed by the
Board, the amount so certified, increased by 5 per centum.

OPERATION
OF STATE PLANS

SEC.
1004. In the case of any State plan for aid to the blind which has been
approved by the Board, if the Board, after reasonable notice and opportunity
for hearing to the State agency administering or supervising the administration
of such a plan, finds–

(1)
that the plan has been so changed as to impose any residence or citizenship
requirement prohibited by section 1002 (b), or that in the administration of
the plan any such prohibited requirement is imposed, with the knowledge of such
State agency, in a substantial number of cases; or

(2)
that in the administration of the plan there is a failure to comply substantially
with any provision required by section 1002 (a) be included in the plan; the
Board shall notify such State agency that further payments will not be made to
the State until the Board is satisfied that such prohibited requirement is no
longer so imposed, and that there is no longer any such failure to comply.
Until it is satisfied it shall make no further certification to the Secretary
of the Treasury with respect to such State.

ADMINISTRATION

SEC.
1005. There is hereby authorized to be appropriated for the fiscal year ending
June 30, 1936 the sum of $30,000, for all necessary expenses of the Board in
administering the provisions of this title.

DEFINITION

SEC.
1006. When used in this title the term aid to the blind means money payments to
blind individuals.

——————————————————————————–

TITLE
XI- GENERAL PROVISIONS

DEFINITIONS
SECTION 1101. (a) When used in this Act-

(1)
The term State (except when used in section 531) includes Alaska, Hawaii, and
the District of Columbia.

(2)
The term United States when used in a geographical sense means the States,
Alaska, Hawaii, and the District of Columbia.

(3)
The term person means an individual, a trust or estate, a partnership, or a
corporation.

(4)
The term corporation includes associations, joint-stock companies, and
insurance companies.

(5)
The term shareholder includes a member in an association, joint- stock company,
or insurance company.

(6)
The term employee includes an officer of a corporation.

(b)
The terms includes and including when used in a definition contained in this
Act shall not be deemed to exclude other things otherwise within the meaning of
the term defined.

(c)
Whenever under this Act or any Act of Congress, or under the law of any State, an
employer is required or permitted to deduct any amount from the remuneration of
an employee and to pay the amount deducted to the United States, a State, or
any political subdivision thereof, then for the purposes of this Act the amount
so deducted shall be considered to have been paid to the employee at the time
of such deduction.

(d)
Nothing in this Act shall be construed as authorizing any Federal official,
agent, or representative, in carrying out any of the provisions of this Act, to
take charge of any child over the objection of either of the parents of such
child, or of the person standing in loco parentis to such child.

RULES
AND REGULATIONS

SEC.
1102. The Secretary of the Treasury, the Secretary of Labor, and the Social
Security Board respectively, shall make and publish such rules and regulations,
not inconsistent with this Act, as may be necessary to the efficient
administration of the functions with which each is charged under this Act.

SEPARABILITY

SEC.
1103. If any provision of this Act, or the application thereof to any person or
circumstance is held invalid, the remainder of the Act, and the application of
such provision to other persons or circumstances shall not be affected thereby.

RESERVATION
OF POWER

SEC.
1104. The right to alter, amend, or repeal any provision of this Act is hereby
reserved to the Congress.

SHORT
TITLE

SEC.
1105. This Act may be cited as the Social Security Act.

Approved,
August 14, 1935.

 

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