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Page:United States Statutes at Large Volume 91.djvu/1570

 91 STAT. 1536

PUBLIC LAW 95-216—DEC. 20, 1977

26 USC 1402,

(b) Section 1402(a) of the Internal Revenue Code of 1954 (relating to definition of net earnings from self-employment) is amended— (1) by striking out "and" ait the end of paragraph (10); (2) by striking out the period at the end of paragraph (11) and inserting in lieu thereof "; and"; and (3) by inserting after paragraph (11) the following new paragraph: " (12) there shall be excluded the distributive share of any item of income or loss of a limited partner, as such, other than guaranteed payments described in section 707(c) to that partner for 26 USC 707. services actually rendered to or on behalf of the partnership to the extent that those payments are established to be in the nature of remuneration for those services.". Effective date. (c) The amendments made by this section shall apply with respect 42 USC 411 note. to taxable years beginning after December 31, 1977. EMPLOYEES OF MEMBERS OF RELATED GROUPS OF CORPORATIONS

26 USC 3121. 26 USC 3101-3126.

SEC. 314. (a) Section 3121 of the Internal Revenue Code of 1954 (definitions for purposes of the Federal Insurance Contributions Act) is amended by adding at the end thereof the following new subsection: " (s)

Post, p. 1555. Ante, p. 1511, Post, pp. 1537, 1540.

26 USC 3306.

CONCURRENT EMPLOYMENT BY Two OR MORE EMPLOYERS.—For

purposes of sections 3102, 3111, and 3121 (a)(1), if two or more related corporations concurrently employ the same individual and compensate such individual through a common paymaster which is one of such corporations, each such corporation shall be considered to have paid as remuneration to such individual only the amounts actually disbursed by it to such individual and shall not be considered to have paid as remuneration to such individual amounts actually disbursed to such individual by another of such corporations.". (b) Section 3306 of such Code (relating to definitions in respect of unemployment tax) is amended by adding aJt the end thereof the following new subsection: " (p) CONCURRENT EMPLOYMENT BY Two OR MORE EMPLOYERS.—For

26 USC 3301, 3302.

Effective date. 26 USC 3121 note.

purposes of sections 3301, 3302, and 3306 (b)(1), if two or more related corporations concurrently employ the same individual and compensate such individual through a common paymaster which is one of such corporations, each such corporation shall be considered to have paid as remuneration to such individual only the amounts actually disbursed by it to such individual and shall not be considered to have paid as remuneration to such individual amounts actually disbursed to such individual by another of such corporations.". (c) The amendments made by this section shall apply with respect to wages paid after December 31, 1978. TAX ON EMPLOYERS OF INDIVIDUALS W H O RECEIVE INCOME FROM TIPS

Supra.

SEC. 315. (a) Section 3121 of the Internal Revenue Code of 1954 (definitions for purposes of the Federal Insurance Contributions Act) is amended by adding at the end thereof (after the new subsection added by section 314(a) of this Act) the following new subsection: " (t) SPECIAL RULE FOR DETERMINING WAGES SUBJECT TO EMPLOYER TAX IN CASE OF CERTAIN EMPLOYERS WHOSE EMPLOYEES RECEIVE INCOME FROM TIPS.—If the wages paid by an employer with respect to

Post, p. 1555.

the employment during any month of an individual who (for services performed in connection with such employment) receives tips which constitute wages, and to which section 3102(a) applies, are less than the total amount which would be payable (with respect to such

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Page:United States Statutes at Large Volume 91.djvu/1571

 PUBLIC LAW 95-216—DEC. 20, 1977 employment) at the minimum wage rate applicable to such individual under section 6(a)(1) of the Fair Labor Standards Act of 1938 (determined without regard to section 3(m) of such Act), the wages so paid shall be deemed for purposes of section 3111 to be equal to such total amount.". (b) Section 3111 of such Code is amended by inserting "and (t) " after "3121(a)" in subsections (a) and (b). (c) The amendments made by this section shall apply with respect to wages paid with respect to employment performed in months after December 1977.

91 STAT. 1537 Ante, p. 1245. 29 USC 203. Ante, pp. 1511, 1^12. Effective date, 26 USC 3111 "o*^-

REVOCATION OF EXEMPTION FROM COVERAGE BY CLERGYMEN

SEC. 316. (a) Notwithstanding section 1402(e)(3) of the Internal Revenue Code of 1954, any exemption which has been received under section 1402(e)(1) of such Code by a duly ordained, commissioned, or licensed minister of a church or a Christian Science practitioner, and which is effective for the taxable year in which this Act is enacted, may be revoked by filing an application therefor (in such form and manner, and with such official, as may be prescribed in regulations made under chapter 2 of such Code), if such application is filed— (1) before the applicant becomes entitled to benefits under section 202(a) or 223 of the Social Security Act (without regard to section 202(j)(1) or 223(b) of such Act), and (2) no later than the due date of the Federal income tax return (including any extension thereof) for the applicant's first taxable year beginning after the date of the enactment of this Act. Any such revocation shall be effective (for purposes of chapter 2 of the Internal Revenue Code of 1954 and title II of the Social Security Act), as specified in the application, either with respect to the applicant's first taxable year ending on or after the date of the enactment of this Act or with respect to the applicant's first taxable year beginning after such date, and for all succeeding taxable years; and the applicant for any such revocation may not thereafter again file application for an exemption under such section 1402(e)(1). If the application is filed on or after the due date of the applicant's first taxable year ending on or after the date of the enactment of this Act and is effective with respect to that taxable year, it shall include or be accompanied by payment in full of an amount equal to the total of the taxes that would have been imposed by section 1401 of the Internal Revenue Code of 1954 with respect to all of the applicant's income derived in that taxable year which would have constituted net earnings from self-employment for purposes of chapter 2 of such Code (notwithstanding section 1402(c)(4) or (c)(5) of such Code) except for the exemption under section 1402(e)(1) of such Code. (b) Subsection (a) shall apply with respect to service performed (to the extent specified in such subsection) in taxable years ending on or after the date of the enactment of this Act, and with respect to monthly insurance benefits payable under title II of the Social Security Act on the basis of the wages and self-employment income of any individual for months in or after the calendar year in which such individual's application for revocation (as described in such subsection) is filed (and lump-sum death payments payable under such title on the basis of such wages and self-employment income in the case of deaths occurring in or after such calendar year).

26 USC 1402 note, 26 USC 1402.

26 USC 1401. 42 USC 402, 423. ^^^^' P- 1^42.

42 USC 401.

26 USC 1401.

42 USC 401.

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Page:United States Statutes at Large Volume 91.djvu/1572

 91 STAT. 1538

PUBLIC LAW 95-216—DEC. 20, 1977 INTERNATIONAL AGREEMENTS W I T H RESPECT TO SOCIAL SECURITY BENEFITS

•;

S E C 317. (a) Title II of the Social Security Act is amended by adding at the end thereof the following new section: "INTERNATIONAL AGREEMENTS

"Purpose of Agreement 42 USC 433.

"SEC. 233. (a) The President is authorized (subject to the succeeding provisions of this section) to enter into agreements establishing totalization arrangements between the social security system established by this title and the social security system of any foreign country, for the purposes of establishing entitlement to and the amount of oldage, survivors, disability, or derivative benefits based on a combination of an individual's periods of coverage under the social security system established by this title and the social security system of such foreign country. "Definitions

'

"(b) For the purposes of this section— "(1) the term 'social security system' means, with respect to a foreign country, a social insurance or pension system which is of general application in the country and under which periodic benefits, or the actuarial equivalent thereof, are paid on account of old age, death, or disability; and "(2) the term 'period of coverage' means a period of payment of contributions or a period of earnings based on wages for employment or on self-employment income, or any similar period recognized as equivalent thereto under this title or under the social security system of a country which is a party to an agreement entered into under this section. "Crediting Periods of Coverage; Conditions of Payment of Benefits

Post, pp. 1550, 1552.

"(c)(1) Any agreement establishing a totalization arrangement pursuant to this section shall provide—• "(A) that in the case of an individual who has at least 6 quarters of coverage as defined in section 213 of this Act and periods of coverage under the social security system of a foreign country which is a party to such agreement, periods of coverage of such individual under such social security system of such foreign country may be combined with periods of coverage under this title and otherwise considered for the purposes of establishing entitlement to and the amount of old-age, survivors, and disability insurance benefits under this title; " (B)(i) that employment or self-employment, or any service which is recognized as equivalent to employment or self-employment under this title or the social security system of a foreign country which is a party to such agreement, shall, on or after the effective date of such agreement, result in a period of coverage under the system established under this title or under the system established under the laws of such foreign country, but not under both, and (ii) the methods and conditions for determining under which system employment, self-employment, or other service shall result in a period of coverage; and

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Page:United States Statutes at Large Volume 91.djvu/1573

 PUBLIC LAW 95-216—DEC. 20, 1977 "(C) that where an individual's periods of coverage are combined, the benefit amount payable under this title shall be based on the proportion of such individual's periods of coverage which was completed under this title. " (2) Any such agreement may provide that— "(A) an individual who is entitled to cash benefits under this title shall, notwithstanding the provisions of section 202(t), receive such benefits while he resides in a foreign country which is a party to such agreement; and "(B) the benefit paid by the United States to an individual who legally resides in the United States shall, if less when added to the benefit paid by such foreign country than the benefit amount which would be payable to an entitled individual based on the first figure in (or deemed to be in) column IV of the table in section 215(a) in the case of an individual becoming eligible for such benefit before January 1, 1979, or based on a primary insurance amount determined under section 215(a)(1)(C)(i)(I) in the case of an individual becoming eligible for such benefit on or after that date, be incieased so that the total of the two benefits is equal to the benefit amount which would be so payable. "(3) Section 226 shall not apply in the case of any individual to whom it would not be applicable but for this section or any agreement or regulation under this section. "(4) Any such agreement may contain other jDrovisions which are not inconsistent with the other provisions of this title and which the Pi'esident deems appropriate to carry out the purposes of this section.

91 STAT. 1539

t

42 USC 402.

Ante, p. 1514.

Post, pp. 1543, l^'*^-

"Kegulations "(d) The Secretary of Health, Education, and Welfare shall make rules and regulations and establish procedures which are reasonable and necessary to implement ami administer any agreement which has been entered into in accordance with this section. "Reports to Congress; P^ffective Date of Agreements "(e)(1) Any agreement to establish a totalization arrangement entered into pursuant to this section shall be transmitted by the President to the Congress together with a report on the estimated numbei' of individuals wno will be affected by the agreement and the effect of the agreement on the estimated income and expenditures of the programs established by this Act. "(2) Such an agreement shall become effective on any date, provided in the agreement, which occurs after the expiration of the period (following the date on which the agreement is transmitted in accordance with paragraph (1)) during which each House of the Congress has been in session on each of 90 days; except that such agreement shall not become effective if, during such period, either House of the Congress adopts a resolution of disapproval of the agreement.". (b)(1) Section 1401 of the Internal Revenue Code of 1954 26 USC 1401. is amended by adding at the end thereof the following new subsection: "(c) RELIEF FROM TAXES IN CASES COVERED BY CERTAIN INTERNATIONAL AGREEMENTS.—During any period in which there is in effect an

agreement entered into pursuant to section 233 of the Social Security Act with any foreign country, the self-employment income of an Ante, p. 1538. individual shall be exempt from the taxes imposed by this section to the extent that such self-employment income is subject under such agree-

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Page:United States Statutes at Large Volume 91.djvu/1574

 91 STAT. 1540

26 USC 3101, 3111-

PUBLIC LAW 95-216—DEC. 20, 1977 ment to taxes or contributions for similar purposes under the social security system of such foreign country.". (2) Sections 3101 and 3111 of such Code are each amended by adding at the end thereof the following new subsection: "(c) RELIEF FROM TAXES IN CASES COVERED BY CERTAIN INTERNATIONAL AGREEMENTS.—During any period in which there is in effect an

Ante, p. 1538.

26 USC 6051. Supra. 26 USC 1401 note.

agreement entered into pursuant to section 233 of the Social Security Act with any foreign country, wages received by or paid to an individual shall be exempt from the taxes imposed by this section to the extent that such wages are subject under such agreement to taxes or contributions for similar purposes under the social security system of such foreign country.". (3) Section 6051(a) of such Code is amended by adding at the end thereof the following new sentence: "The amounts required to be shown by paragraph (5) shall not include wages which are exempted pursuant to sections 3101(c) and 3111(c) from the taxes imposed by sections 3101 and 3111.". (4) Notwithstanding any other provision of law, taxes paid by any individual to any foreign country with respect to any period of employment or self-employment which is covered under the social security system of such foreign country in accordance with the terms of an agreement entered into pursuant to section 233 of the Social Security Act shall not, under the income tax laws of the United States, be deductible by, or creditable against the income tax of, any such individual. MODIFICATION

OF AGREEMENT W I T H ILLINOIS TO PROVIDE FOR CERTAIN POLICEMEN AND FIREMEN

COVERAGE

42 use418 note. SEC. 318. (a) Notwithstanding the provisions of subsection (d)(5) 42 USC 418. (A) of section 218 of the Social Security Act and the references thereto in subsections (d)(1) and (d)(3) of such section 218, the agreement with the State of Illinois heretofore entered into pursuant to such section 218 may, at any time prior to January 1, 1979, be modified pursuant to subsection (c)(4) of such section 218 so as to apply to services performed in policemen's or firemen's positions covered by the Illinois Municipal Retirement Fund on the date of the enactment of this Act if the State of Illinois has at any time prior to the date of the enactment of this Act paid to the Secretary of the Treasury, with respect to any of the services performed in such positions, the sums prescribed pursuant to subsection (e)(1) of such section 218. For purposes of this section, a retirement system which covers positions of policemen or firemen shall, if the State of Illinois so desires, be deemed to be a separate retirement system with respect to the positions of such policemen or firemen, as the case may be. (b) Notwithstanding the provisions of subsection (f) of section 218 of the Social Security Act, any modification in the agreement with the State of Illinois under subsection (a) of this section, to the extent ... that it involves services performed by a policeman or fireman in positions covered under the Illinois Municipal Retirement Fund, shall be made effective with respect to— (1) all services performed by policemen or firemen, in positions to which the modification relates, on or after the date of the enactment of this Act; and (2) all services performed by such individuals in such positions , before such date of enactment with respect to which the State of Illinois has paid to the Secretary of the Treasury the sums pre-

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Page:United States Statutes at Large Volume 91.djvu/1575

 PUBLIC LAW 95-216—DEC. 20, 1977

91 STAT. 1541

scribed pursuant to subsection (e)(1) of such section 218 at the 42 USC 418. time or times established pursuant to such subsection (e)(1), if and to the extent that— (A) no refund of the sums so paid has been obtained, or (B) a refund of part or all of the sums so paid has been obtained but the State of Illinois repays to the Secretary of the Treasury the amount of such refund within 90 days after the date that the modification is agreed to by the State and the Secretary of Health, Education, and Welfare. COVERAGE FOR POLICEMEN AND F I R E M E N I N MISSISSIPPI

SEC. 319. Section 218(p)(1) of the Social Security Act is amended 42 USC 418. by inserting "Mississippi," after "Maryland,". COVERAGE U N D E R D IV I D F J J RETIREMENT SYSTEM FOR PUBLIC EMPLOYEES I N N E W JERSEY

SEC. 320. Section 218(d)(6)(C) of the Social Security Act is amended by inserting "New Jersey," after "Nevada,". COVERAGE OP SERVICE UNDER WISCONSIN RETIREMENT SYSTEM

SEC. 321. Section 218(m)(1) of the Social Security Act is amended by inserting after "Wisconsin retirement fund" the following: "or any successor system". PART C — B E N E F I T AMOUNTS AND ELIGIBILITY ACTUARIAL REDUCTION OF BENEFIT INCREASES TO BE APPLIED AS OF TIME OF ORIGINAL ENTITLEMENT

SEC. 331. (a) Section 202(q)(4) of the Social Security Act is 42 USC 402. amended by striking out all that follows subparagraph (B) and inserting in lieu thereof the following: "then the amount of the reduction of such benefit (after the application of any adjustment under paragraph (7)) for each month beginning with the month of such increase in the primary insurance amount shall be computed under paragraph (1) or (3), wnichever applies, as though the increased primary insurance amount had been in effect for and after the month for which the individual first became entitled to such monthly benefit reduced under such paragraph (1) or (3).". L (b) Section 202(q) of such Act is further amended by adding at the end thereof the following new paragraphs: "(10) For purposes of applying paragraph (4), with respect to monthly benefits payable for any month after December 1977 to an individual who was entitled to a monthly benefit as reduced under paragraph (1) or (3) prior to January 1978, the amount of reduction in such benefit for the first month for which such benefit is increased hj reason of an increase in the primary insurance amount of the individual on whose wages and self-employment income such benefit is based and for all subsequent months (and similarly for all subsequent increases) shall be increased by a percentage equal to the percentage increase in such primary insurance amount (such increase being made in accordance with the provisions of paragraph (8)). In the case of an individual whose reduced benefit under this section is increased as a result of the use of an adjusted reduction period or an additional

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Page:United States Statutes at Large Volume 91.djvu/1576

 91 STAT. 1542

PUBLIC LAW 95-216—DEC. 20, 1977

adjusted reduction period (in accordance with paragraphs (1) and (3) of this subsection), then for the first month for which such increase is effective, and for all subsequent months, the amount of such reduction (after the application of the previous sentence, if applicable) shall be determined— "(A) in the case of old-age, wife's, and husband's insurance benefits, by multiplying such amount by the ratio of (i) the number of months in the adjusted reduction period to (ii) the number of months in the reduction period, "(B) in the case of widow's and widower's insurance benefits for the month in which such individual attains age 62, by multiplying such amount by the ratio of (i) the number of months in the reduction period beginning with age 62 multiplied by i%o of 1 percent, plus the number of months in the adjusted reduction period prior to age 62 multiplied by i%o of 1 percent, plus the number of months in the adjusted additional reduction period multiplied by 4%4o of 1 percent to (ii) the number of months in the reduction period multiplied by i%o of 1 percent, plus the number of months in the additional reduction period multiplied by 4%4Q of 1 percent, and "(C) in the case of widow's and widower's insurance benefits for the month in which such individual attains age 65, by multiplying such amount by the ratio of (i) the number of months in the adjusted reduction period multiplied by i%o of 1 percent, plus the number of months in the adjusted additional reduction period multiplied by 4%4o of 1 percent to (ii) the number of months in the reduction period beginning with age 62 multiplied by ^%o of 1 percent, plus the number of months in the adjusted reduction period prior to age 62 multiplied by i%o of 1 percent, plus the number of months in the adjusted additional reduction period multiplied by 4%4o of 1 percent, such determination being made in accordance with the provisions of paragraph (8). "(11) When an individual is entitled to more than one monthly benefit under this title and one or more of such benefits are reduced under this subsection, paragraph (10) shall apply separately to each such benefit reduced under this subsection before the application of subsection (k) (pertaining to the method by which monthly benefits are offset when an individual is entitled to more than one kind of benefit) and the application of this paragraph shall operate in conjunction with paragraph (3).". 42 USC 402. (c)(1) Section 202(q)(7)(C) of such Act is amended by striking out "because" and all that follows and inserting in lieu thereof "because of the occurrence of an event that terminated her or his entitlement to such benefits,". (2) Section 202(q)(3)(H) of such Act is amended by inserting "for that month or" after "first entitled". Effective date. (d) The amendments made by this section shall be effective with 42 USC 402 note, respect to monthly benefits payable for months after December 1977. LIMITATION ON RETROACTIVE BENEFITS

SEC. 332. (a)(1) The first sentence of section 202(j)(l) of the Social Security Act is amended by striking out "An individual" and inserting in lieu thereof "Subject to the limitations contained in paragraph (4), an individual".

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Page:United States Statutes at Large Volume 91.djvu/1577

 PUBLIC LAW 95-216—DEC. 20, 1977

91 STAT. 1543

(2) Section 202(j) of such Act is further amended by adding at the end thereof the following new paragraph: "(4)(A) Except as provided in subparagraph (B), no individual shall be entitled to a monthly benefit under subsection (a), (b), (c), (e), or (f) for any month prior to the month in which he or she files an application for benefits under that subsection if the effect of entitlement to such benefit would be to reduce, pursuant to subsection (q), the amount of the monthly benefit to which such individual would otherwise be entitled for the month in which such application is filed. " (B)(i) If the individual applying for retroactive benefits is applying for such benefits under subsection (a), and there are one or more other persons who would (except for subparagraph (A)) be entitled for any month, on the basis of the wages and self-employment income of such individual and because of such individual's entitlement to such retroactive benefits, to retroactive benefits under subsection (b), (c), or (d) not subject to reduction under subsection (q), then subparagraph (A) shall not apply with respect to such month or any subsequent month. "(ii) If the individual applying for retroactive benefits is a widow, surviving divorced wife, or widower and is under a disability (as defined in section 223(d)), and such individual would, except for subparagraph (A), be entitled to retroactive benefits as a disabled widow or widower or disabled surviving divorced wife for any month before attaining the age of 60, then subparagraph (A) shall not apply with respect to such month or any subsequent month, "(iii) If the individual applying for retroactive benefits has excess earnings (as defined in section 203(f)) in the year in which he or she files an application for such benefits which could, except for subparagraph (A), be charged to months in such year prior to the month of application, then subparagraph (A) shall not apply to so many of such months immediately preceding the month of application as are required to charge such excess earnings to the maximum extent possible. "(iv) As used in this subparagraph, the term 'retroactive benefits' means benefits to which an individual becomes entitled for a month prior to the month in which application for such benefits is filed.". (3) Section 226(h) of such Act is amended by adding at the end thereof the following new paragraph: "(4) For purposes of determining entitlement to hospital insurance benefits under subsection (b) in the case of an individual described in clause (iii) of subsection (b)(2)(A), the entitlement of such individual to widow's or widower's insurance benefits under section 202(e) or (f) by reason of a disability shall be deemed to be the entitlement to such benefits that would result if such entitlement were determined without regard to the provisions of section 202(j)(4).". (b) The amendments made by subsection (a) shall be effective with respect to monthly insurance benefits under title II of the Social Security Act to which an individual becomes entitled on the basis of an application filed on or after January 1, 1978. DELIVERY o r BENEFIT CHECKS

SEC. 333. (a) Title VII of the Social Security Act is amended by adding at the end thereof the following new section:

42 USC 402.

42 USC 423.

42 USC 403.

"Retroactive benefits." 42 USC 426.

42 USC 402. Effective date. 42 USC 402 note. 42 USC 401.

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Page:United States Statutes at Large Volume 91.djvu/1578

 91 STAT. 1544

PUBLIC LAW 95-216—DEC. 20, 1977 a. DELIVERY

OP BENEFIT CHECKS

"SEC. 708. (a) If the day r e ^ l a r l y designated for the delivery of benefit checks under title II or title X VI falls on a Saturday, Sunday, or legal public holiday (as defined in section 6103 of title 5, United States Code) in any month, the benefit checks which would otherwise be delivered on such day shall be mailed for delivery on the first day preceding such day which is not a Saturday, Sunday, or legal public holiday (as so defined), without regard to whether the delivery of such checks would as a result have to be made before the end of the month for which such checks are issued. " (b) If more than the correct amount of payment under title II or XVI is made to any individual as a result of the receipt of a benefit check pursuant to subsection (a) before the end of the month for which such check is issued, no action shall be taken (under section 42 USC 404, 204 or 1631(b) or otherwise) to recover such payment or the incor1383. rect portion thereof.". Effective date. (b) The amendment made by subsection (a) of this section shall 42 USC 909 note. apply with respect to benefit checks the regularly designated day for delivery of which occurs on or after the thirtieth day after the date of the enactment of this Act.

42 USC 909. 42 USC 401, 1381.

REDUCED BENEFITS FOR SPOUSES RECEIVING GOVERNMENT PENSIONS

42 USC 402.

42 USC 418. 42 USC 410.

"Periodic benefit."

42 USC 402.

SEC. 334. (a)(1) Section 202(b)(2) of the Social Security Act is amended by inserting after "subsection (q)" the following: "and paragraph (4) of this subsection". (2) Section 202(b) of such Act is further amended by adding at the end thereof the following new paragraph: "(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) shall be reduced (but not below zero) by an amount equal to the amount of any monthly periodic benefit payable to such 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 218(b)(2)) if, on the last day she was employed by such entity, such service did not constitute 'employment' as defined in section 210. "(B) For purposes of this paragraph, any periodic benefit which 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 Secretary) 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.". (b)(1) Section 202(c)(1) of such Act is amended— (A) by striking out subparagraph (C); ^B) by adding "and" at the end of subparagraph (B); and (C) by redesignating subparagraph (D) as subparagraph (C). (2) Section 202(c)(2) of such Act is amended to read as follows: "(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) shall be reduced (but not below zero) by an amount equal to the amount of any monthly periodic benefit payable to such husband for such month which is based upon his earnings while in the service of the Federal Government or any State (or political sub-

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Page:United States Statutes at Large Volume 91.djvu/1579

 PUBLIC LAW 95-216—DEC. 20, 1977

91 STAT. 1545

division thereof, as defined in section 218(b)(2)) if, on the last day 42 USC 418. he was employed by such entity, such service did not constitute 'employment' as defined in section 210. Post, p. 1549. "(B) For purposes of this paragraph, any periodic benefit which 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 Secretary) and such equivalent montKly benefit shall constitute a monthly periodic benefit for purposes of subparagraph (A). For purposes of this sub- "Periodic paragraph, the term 'periodic benefit' includes a benefit payable in a benefit." lump sum if it is a commutation of, or a substitute for, periodic payments.''. (3) Section 202(c)(3) of such Act is amended by inserting after 42 USC 402. "subsection (q)" the following: "and paragraph (2) of this subsection". (c)(1) Section 202(e)(2)(A) of such Act (as amended by section 204(a) of this Act) is amended by striking out "paragraph (4)" in the first sentence and inserting in lieu thereof "paragraphs (4) and (8)". (2) Section 202(e) of such Act is further amended by adding at the end thereof the following new paragraph: "(8)(A) The amount of a widow's insurance benefit for each month as determined (after application of the provisions of subsections (q) and (k), paragraph (2)(B), and paragraph (4)) shall be reduced (but not below zero) by an amount equal to the amount of any monthly periodic benefit payable to such 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 any political subdivision thereof, as defined in section 218(b)(2)) if, on the last day she was employed by such entity, such service did not constitute 'employment' as defined in section 210. "(B) For purposes of this paragraph, any periodic benefit which 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 Secretary) and such equivalent monthly benefit shall constitute a monthly periodic benefit for purposes of subparagraph (A). For purposes of this subparagraph, "Periodic the term 'periodic benefit' includes a benefit payable in a lump sum benefit." if it is a commutation of, or a substitute for, periodic payments.". 42 USC 402. (d)(1) Section 202(f)(1) of such Act is amended— (A) by striking out subparagraph (D); and (B) by redesignating subparagraphs (E), (F), and (G) as subparagraphs (D), (E),and (F),respectively. (2) Section 202(f)(2) of such Act is amended to read as follows: "(2)(A) The amount of a widower's insurance benefit for each month (as determined after application of the provisions of subsections (k) and (q), paragraph (3)(B), and paragraph (5)) shall be reduced (but not below zero) by an amount equal to the amount of any monthly periodic benefit payable to such widower for such month which is based upon his earnings while in the service of the Federal Government or any State (or any political subdivision thereof, as defined in section 218(b)(2)) if, on the last day he was employed by such entity, such service did not constitute 'employment' as defined in section 210. "(B)^ For purposes of this paragraph, any periodic benefit which 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 Secretary) and such

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Page:United States Statutes at Large Volume 91.djvu/1580

 91 STAT. 1546

PUBLIC LAW 95-216—DEC. 20, 1977

equivalent monthly benefit shall constitute a monthly periodic benefit "Periodic for purposes of subparagraph (A). For purposes of this subparabenefit." graph, 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) Section 202(f)(3)(A) of such Act (as amended by section 204 Ante, p. 1528. (c) of this Act) is amended by striking out "paragraph (5)" in the first sentence and inserting in lieu thereof "paragraphs (2) and (5)". (4)(A) Section 202(f)(7) of such Act is amended by striking out "paragraph (1)(G) " and inserting in lieu thereof "paragraph (1) (F)". 42 USC 426. (B) Section 226(h)(1)(B) of such Act is amended by striking out "subparagraph (G) of section 202(f)(1)" and inserting in lieu thereof "subparagraph (F) of section 202(f)(1)". (5) Section 202(p)(1) of such Act is amended by striking out "subparagraph (C) of subsection (c)(1), clause (i) or (ii) of subparagraph (D) of subsection (f)(l),or". (6) Section 202(s)(3) of such Act is amended by striking out "Subsections" and all that follows down through "so much" and inserting in lieu thereof "So much". (e)(1) Section 202(g)(2) of such Act is amended by striking out "Such" and inserting in lieu thereof "Except as provided in paragraph (4) of this subsection, such". (2) Section 202(g) of such Act is further amended by adding at the end thereof the following new paragraph: "(4)(A) The amount of a mother's insurance benefit for each month to which any individual is entitled under this subsection (as determined after application of subsection (k)) shall be reduced (but not below zero) by an amount equal to the amount of any monthly periodic benefit payable to such individual for such month which is based upon such individual's earnings while in the service of the Federal Government or any State (or political subdivision thereof, as defined in section 218(b)(2)) if, on the last day such individual was 42 USC 418. employed by such entity, such service did not constitute 'employment' as defined in section 210. Post, p. 1549. "(B) For purposes of this paragraph, any periodic benefit which 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 Secretary) and such equivalent monthly benefit shall constitute a monthly periodic benefit for purposes of subparagraph (A). For purposes of this subpara"Periodic benefit." graph, the term 'periodic benefit' includes a benefit pavable in a lump sum if it is a commutation of, or a substitute for, periodic payments.". Effective date. (f) The amendments made by this section shall applv with respect to 42 USC 402 note. monthly insurance benefits payable under title IT of the Social Secu42 USC 401. rity Act for months beq-inning with the month in which this Act is enacted, on the basis of applications filed in or after the month in which this A ct is enacted. Effective date. (g)(1) The amendments made by the preceding provisions of this 42 USC 402 note. section shall not apply with respect to any monthly insurance benefit payable, under subsection (b), (c), (e), (f), or (g) (as the case may be) of section 202 of the Social Security Act, to an individual— (A) to whom there is payable for any month within the 60-month period beginning with the month in which this Act is enacted (or who is eligible in any such month for) a monthly periodic benefit (wnthin the meaning of such provisions) based upon such individual's earnings while in the service of the Federal Government or any State (or political subdivision thereof, as

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Page:United States Statutes at Large Volume 91.djvu/1581

 PUBLIC LAW 95-216—DEC. 20, 1977

91 STAT. 1547

defined in section 218(b)(2) of the Social Security Act); and 42 USC 418. (B) who at time of application for or initial entitlement to such monthly insurance benefit under such subsection (b), (c), (e), (f), or (^) meets the requirements of that subsection as it was in effect and bein^ administered in January 1977. (2) For purposes of paragraph (1)(A), an individual is eligible Eligibility, for a monthly periodic benefit for any month if such benefit would be payable to such individual for that month if such individual were not employed during that month and had made proper application for such benefit. (3) If any provision of this subsection, or the application thereof Separability, to any person or circumstance, is held invalid, the remainder of this section shall not be affected thereby, but the application of this subsection to any other persons or circumstances shall also be considered invalid. SUBSTANTIAL GAINFUL ACTIVITY I N CASE OF BLIND INDIVIDUALS

SEC. 335. Section 223(d)(4) of the Social Security Act is amended 42 USC 423. by inserting after the first sentence the following new sentence: "No individual who is blind shall be regarded as having demonstrated an ability to engage in substantial gainful activity on the basis of earnings that do not exceed the exempt amount under section 203(f)(8) which is applicable to individuals described in subparagraph (D) thereof.". Ante, p. 1530. REMARRIAGE OF WIDOWS AND WIDOWERS

SEC. 336. (a)(1) Section 202(e)(2)(A) of the Social Security Act (as amended by sections 204(a) and 334(c)(1) of this Act) is amended by striking out "paragraphs (4) and (8)" and inserting in lieu thereof "paragraph (8)". (2) Section 202(e)(3) of such Act is amended by striking out "In the case of a widow or surviving divorced wife who marries" in the matter preceding subparagraph (A) and inserting in lieu thereof "If a widow, before attaining age 60, or a surviving divorced wife, marries". (3) Section 202(e)(4) of such Act is amended to read as follows: "(4) If a widow, after attaining age 60, marries, such marriage shall, for purposes of paragraph (1), be deemed not to have occurred.". (b)(1) Section 202(f)(3)(A) of such Act (as amended by sections 204(c) and 334(d)(3) of this Act) is further amended by striking out "paragraphs (2) and (5)" and inserting in lieu thereof "paragraph (2). (2) Section 202(f)(4) of such Act is amended by striking out "In the case of a widower who remarries" in the matter preceding subparagraph (A) and inserting in lieu thereof "If a widower, before attaining age 60, remarries". (3) Section 202(f)(5) of such Act is amended to read as follows: "(5) If a widower, after attaining age 60, marries, such marriage shall, for purposes of paragraph (1), be deemed not to have occurred." (c)(1) The amendments made by this section shall apply only with respect to monthly benefits payable under title II of the Social Security Act for months after December 1978, and, in the case of individuals who are not entitled to benefits of the type involved for December 1978, only on the basis of applications filed on or after January 1, 1979.

Ante, pp. 1527, 1544.

42 USC 402.

Ante, pp. 1528, 1546.

Effective date. 42 USC 402 note. 42 USC 401.

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Page:United States Statutes at Large Volume 91.djvu/1582

 91 STAT. 1548

PUBLIC LAW 95-216—DEC. 20, 1977

(2) In the case of an individual who was entitled for the month of December 1978 to monthly insurance benefits under subsection (e) or Ante, pp. 1545, (f) of section 202 of the Social Security Act to which the provisions of 1547. subsection (e)(4) or (f)(5) applied, the Secretary shall, if such ^rete, pp. 1528, benefits would be increased by the amendments made by this section, redetermine the amount of such benefits for months after December 1978 as if such amendments had been in effect for the first month for which the provisions of section 202(e)(4) or 202(f)(5) became applicable. 42 use402 note. (d) Where— (1) two or more persons are entitled to monthly benefits under 42 USC 402. section 202 of the Social Security Act for December 1978 on the basis of the wages and self-employment income of a deceased individual, and one or more of such persons is so entitled under subsection (e) or (f) of such section 202, and (2) one or more of such persons is entitled on the basis of such wages and self-employment income to monthly benefits under subsection (e) or (f) of such section 202 (as amended by this section) for January 1979, and (3) the total of benefits to which all persons are entitled under section 202 of such Act on the basis of such wages and self-employment income for January 1979 is reduced by reason of section Ante, p. 1524. 203(a) of such Act as amended by this Act (or would, but for the first sentence of section 203(a)(4), be so reduced), then the amount of the benefit to which each such person referred to in paragraph (1) is entitled for months after December 1978 shall in no case be less after the application of this section and such section 203(a) than the amount it would have been without the application of this section. DURATION-Or-MARRIAGE REQUIREMENT

42 USC 416.

SEC. 337. (a) Section 216(d) of the Social Security Act is amended by striking out "20 years" in paragraphs (1) and (2) and inserting in lieu thereof in each instance "10 years". (b) Section 202(b)(1)(G) of such Act is amended by striking out "20 years" and inserting in lieu thereof "lOyears". Effective date. (c) The amendments made by this section shall apply with respect 42 USC 402 note, to monthly benefits payable under title II of the Social Security Act 42 USC 401. fQj. months after December 1978, and, in the case of individuals who are not entitled to benefits of the type involved for December 1978, only on the basis of applications filed on or after January 1, 1979. PART D—STUDY W I T H RESPECT TO GENDER-BASED DISTINCTIONS STUDY OF P R O P O S A L S TO ELIMINATE DEPENDENCY AND SEX DISCRIMINATION UNDER THE SOCIAL SECURITY PROGRAM

42 USC 902 note.

SEC. 341. (a) The Secretary of Health, Education, and Welfare, in consultation with the Task Force on Sex Discrimination in the Department of Justice, shall make a detailed study, within the Department of Health, Education, and Welfare and the Social Security Administration, of proposals to eliminate dependency as a factor in the determination of entitlement to spouse's benefits under the program established under title II of the Social Security Act, and of proposals to bring about equal treatment for men and women in any and all respects under such program, taking into account the practi-

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Page:United States Statutes at Large Volume 91.djvu/1583

 PUBLIC LAW 95-216—DEC. 20, 1977

91 STAT. 1549

cal effects (particularly the effect upon women's entitlement to such benefits) of factors such as— (1) changes in the nature and extent of women's participation in the labor force^ (2^ the increasing divorce rate, and (3) the economic value of women's work in the home. The study shall include appropriate cost analyses. (b) The Secretary shall submit to the Congress within six months Report to after the date of the enactment of this Act a fiili and complete report Congress. on the study carried out under subsection (a). PART E—COMBINED SOCIAL SECURITY AND INCOME TAX ANNUAL REPORTING

Subpart 1—Amendments to Title II of the Social Security Act ANNUAL CREDITING OF QUARTERS OF COVERAGE

SEC. 351. (a)(1) Sections 209(g)(3), 209(j), 210(a) (17)(A), and 210(f)(4)(B) of the Social Security Act are each amended by strik- 42 USC 409, ing out "quarter" wherever it appears and inserting in lieu thereof 410. "year". (2) Sections 209(g)(3) and 209(j) of such Act are each further amended by striking out "$50" and inserting in lieu thereof "$100". (3)(A) Section 209 of such Act is amended by striking out "or" at the end of subsection (n), by striking out the period at the end of subsection (o) and inserting in lieu thereof "; or", and by inserting after subsection (o) the following new subsection: "(p) Remuneration paid by an organization exempt from income tax under section 501 of the Internal Revenue Code of 1954 in any 26 USC 501. calendar year to an employee for service rendered in the employ of such organization, if the remuneration paid in such year by the organization to the employee for such service is less than $100.". (B) Section 210(a) (10) of such Act is amended by striking out "(10)(A) " and all that follows down through " (B) Service" and inserting in lieu thereof "(10) Service", and by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively. (b) Section 212 of such Act is amended to read as follows: 42 USC 412. " C R E D I T I N G OF S E L F - EMPLOYMENT I N C O M E TO CALENDAR YEARS

"SEC. 212. (a) For the purposes of determining average monthly wage and quarters of coverage the amount of self-employment income derived during any taxable year which begins before 1978 shall— "(1) in the case of a taxable year which is a calendar year, be credited equally to each quarter of such calendar year; and "(2) in the case of any other taxable year, be credited equally to the calendar quarter in which such taxable year ends and to each of the next three or fewer preceding quarters any part of which is in such taxable year. "(b) For the purposes oi determining average indexed monthly earnings, average monthly wage, and quarters of coverage the amount of self-employment income derived during any taxable year which begins after 1977 shall— "(1) in the case of a taxable year which is a calendar year or which begins with or during a calendar year and ends with or during such year, be credited to such calendar year; and

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Page:United States Statutes at Large Volume 91.djvu/1584

 91 STAT. 1550

"Quarters of coverage." 42 USC 413.

Ante, p. 1549.

42 USC 414. 42 USC 416.

Ante, p. 1513, Post, p. 1554.

PUBLIC LAW 95-216—DEC. 20, 1977 "(2) in the case of any other taxable year, be allocated proportionately to the two calendar years, portions of which are included within such taxable year, on the basis of the number of months in each such calendar year which are included completely within the taxable year. For purposes of clause (2), the calendar month in which a taxable year ends shall be treated as included completely wnthin that taxable year.". (c) Section 213(a)(2) of such Act is amended to read as follows: " (2)(A) The term 'quarters of coverage' means— ii^^^ £(jj. calendar years before 1978, and subject to the provisions of subparagraph (B), a quarter in which an individual has been paid $50 or more in wages (except wages for agricultural labor paid after 1954) or for which he has been credited (as determined under section 212) with $100 or more of selfemployment income; and "(ii) for calendar years after 1977, and subject to the provisions of subparagraph (B), each portion of the total of the wages paid and the self-employment income credited (pursuant to section 212) to an individual in a calendar year which equals $250, with such quarter of coverage being assigned to a specific calendar quarter in such calendar year only if necessary in the case of any individual who has attained age 62 or died or is under a disability and the requirements for insured status in subsection (a) or (b) of section 214, the requirements for entitlement to a computation or recomputation of his primary insurance amount, or the requirements of paragraph (3) of section 216(i) would not otherwise be met. "(B) Notwithstanding the provisions of subparagraph (A) — "(i) no quarter after the quarter in which an individual dies shall be a quarter of coverage, and no quarter any part of which is included in a period of disability (other than the initial quarter and the last quarter of such period) shall be a quarter of coverage; "(ii) if the wages paid to an individual in any calendar year equal to $3,000 in the case of a calendar year before 1951, or $3,600 in the case of a calendar year after 1950 and before 1955, or $4,200 in the case of a calendar year after 1954 and before 1959, or $4,800 in the case of a calendar year after 1958 and before 1966, or $6,600 in the case of a calendar year after 1965 and before 1968, or $7,800 in the case of a calendar year after 1967 and before 1972, or $9,000 in the case of the calendar year 1972, or $10,800 in the case of the calendar year 1973, or $13,200 in the case of the calendar year 1974, or an amount equal to the contribution and benefit base (as determined under section 230) in the case of any calendar year after 1974 and before 1978 with respect to which such contribution and benefit base is effective, each quarter of such year shall (subject to clauses (i) and (v)) be a quarter of coverage; " (iii) if an individual has self-employment income for a taxable year^ and if the sum of such income and the wages paid to him during such year equals $3,600 in the case of a taxable year beginning after 1950 and ending before 1955, or $4,200 in the case of a taxable year ending after 1954 and before 1959, or $4,800 in the case of a taxable year ending after 1958 and before 1966, or $6,600 in the case of a taxable year ending after 1965 and before 1968, or $7,800 in the case of a taxable year ending after 1967 and before 1972, or $9,000 in the case of a taxable year beginning after 1971

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Page:United States Statutes at Large Volume 91.djvu/1585

 PUBLIC LAW 95-216—DEC. 20, 1977 and before 1973, or $10,800 in the case of a taxable year beginning after 1972 and before 1974, or $13,200 in the case of a taxable year beginning after 1973 and before 1975, or an amount equal to the contribution and benefit base (as determined under section 230) which is effective for the calendar year in the case of any taxable year beginning in any calendar year after 1974 and before 1978, each quarter any part of which falls in such year shall (subject to clauses (i) and (v)) be a quarter of coverage; "(iv) if an individual is paid wages for agricultural labor in a calendar year after 1954 and before 1978, then, subject to clauses (i) and (v), (I) the last quarter of such year which can be but is not otherwise a quarter of coverage shall be a quarter of coverage if such wages equal or exceed $100 but are less than $200; (II) the last two quarters of such year which can be but are not otherwise quarters of coverage shall be quarters of coverage if such wages equal or exceed $200 but are less than $300; ( III) the last three quarters of such year which can be but are not otherwise quarters of coverage shall be quarters of coverage if such wages equal or exceed $300 but are less than $400; and (IV) each quarter of such year which is not otherwise a quarter of coverage shall be a quarter of coverage if such wages are $400 or more; "(v) no quarter shall be counted as a quarter of coverage prior to the beginning of such quarter; " (vi) not more than one quarter of coverage may be credited to a calendar quarter; and "(vii) no more than four quarters of coverage may be credited to any calendar year after 1977. If in the case of an individual who has attained age 62 or died or is under a disability and who has been paid wages for agricultural labor in a calendar year after 1954 and before 1978, the requirements for insured status in subsection (a) or (b) of section 214, the requirements for entitlement to a computation or recomputation of his primary insurance amount, or the requirements of paragraph (3) of section 216 (i) are not met after assignment of quarters of coverage to quarters in such year as provided in clause (iv) of the preceding sentence, but would be met if such quarters of coverage were assigned to different quarters in such year, then such quarters of coverage shall instead be assigned, for purposes only of determining compliance with such requirements, to such different quarters. If, in the case of an individual who did not die prior to January 1, 1955, and who attained age 62 (if a woman) or age 65 (if a man) or died before July 1, 1957, the requirements for insured status in section 214(a)(3) are not met because of his having too few quarters of coverage but would be met if his quarters of coverage in the first calendar year in which he had any covered employment had been determined on the basis of the period during which wages were earned rather than on the basis of the period during which wages were paid (any such wages paid that are reallocated on an earned basis shall not be used in determining quarters of coverage for subsequent calendar years), then upon application filed by the individual or his survivors and satisfactory proof of his record of wages earned being furnished by such individual or his survivors, the quarters of coverage in such calendar year may be determined on the basis of the periods during which wages were earned.". (d) The amendments made by subsection (a) shall apply with respect to remuneration paid and services rendered after December 31,

29-191+ 0 - 80 -

100

91 STAT. 1551

Ante, p. 1513, ^c^(> P- 1554.

42 USC 414.

1

Effective dates, 42 USC 409 note.

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Page:United States Statutes at Large Volume 91.djvu/1586

 91 STAT. 1552

PUBLIC LAW 95-216—DEC. 20, 1977

1977. The amendments made by subsections (b) and (c) shall be effective January 1, 1978. ADJUSTMENT I N AMOUNT REQtTIRED FOR A QUARTER OP COVERAGE

Ante, p. 1549.

SEC. 352. (a) Section 213(a)(2)(A) (ii) of the Social Security Act, as amended by section 351(c) of this Act, is amended by striking out "$250" and inserting in lieu thereof "the amount required for a quarter of coverage in that calendar year (as determined under subsection

(^}>"-.

.

.

.

,

(b) Section 213 of such Act is further amended by adding at the end thereof the following new subsection: "Amount Required for a Quarter of Coverage

Publication in Federal Register.

42 USC 409.

Ante, p. 1514.

Effective date. 42 USC 413 note.

"(d)(1) The amount of wages and self-employment income which an individual must have in order to be credited with a quarter of coverage in any year under subsection (a)(2)(A) ( i i) shall be $250 in the calendar year 1978 and the amount determined under paragraph (2) of this subsection for years after 1978. "(2) The Secretary shall, on or before November 1 of 1978 and of every year thereafter, determine and publish in the Federal Register the amount of wages and self-employment income which an individual must have in order to be credited with a quarter of coverage in the succeeding calendar year. The amount required for a quarter of coverage shall be the larger of— "(A) the amount in effect in the calendar year in which the determination under this subsection is made, or "(B) the product of the amount prescribed in paragraph (1) which is required for a quarter of coverage in 1978 and the ratio of the average of the total wages (as defined in regulations of the Secretary and computed without regard to the limitations specified in section 209(a)) reported to the Secretary of the Treasury or his delegate for the calendar year before the year in which the determination under this paragraph is made to the average of the total wages (as so defined and computed) reported to the Secretary of the Treasury or his delegate for 1976 (as published in the Federal Register in accordance with section 215(a)(1)(D)), with such product, if not a multiple of $10, being rounded to the next higher multiple of $10 where such amount is a multiple of $5 but not of $10 and to the nearest multiple of $10 in any other case.". (c) The amendments made by this section shall be effective January 1, 1978. TECHNICAL AND CONFORMING

42 USC 403.

AMENDMENTS

SEC. 353. (a)(1) Section 203(f)(8)(B)(i) of the Social Security Act is amended by striking out "was" wherever it appears and inserting in lieu thereof "is". (2) Section 203(f)(8)(B) (ii) of such Act is amended to read as follows: "(ii) the product of the exempt amount described in clause (i) and the ratio of (I) the average of the total wages (as defined in regulations of the Secretary and computed without regard to the limitations specified in section 209(a)) reported to the Secretary of the Treasury or his delegate for the calendar year before the calendar year in which the determination under subparagraph (A) is made to (II) the average of the total wages (as so defined

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 PUBLIC LAW 95-216—DEC. 20, 1977

91 STAT. 1553

and computed) reported to the Secretary of the Treasury or his delegate for the calendar year before the most recent calendar year in which an increase in the exempt amount was enacted or a determination resulting in such an increase was made under subparagraph (A), with such product, if not a multiple of $10, being rounded to the next higher multiple of $10 where such product is a multiple of $5 but not of $10 and to the nearest multiple of $10 in any other case.". (b)(1) The first sentence of section 218(c)(8) of such Act is 42 USC 418. amended by striking out "quarter" wherever it appears and inserting in lieu thereof "year", and by striking out "$50" and inserting in lieu thereof "$100". (2) Section 218(g)(1) of such Act is amended by striking out "quarter" and inserting in lieu thereof "year". (3) Section 218(q)(4)(B) of such Act is amended by striking out "any calendar quarters" and inserting in lieu thereof "a calendar year" and by striking out "such calendar quarters" and inserting in lieu thereof "such calendar year". (4) Section 218(q) (6; (B) of such Act is amended by striking out "calendar quarters designated by the State in such wage reports as the" and inserting in lieu thereof "period or periods designated by the State in such wage reports as the period or". (5) Section 218(r)(1) of such Act is amended— (A) by striking out "quarter" in the matter before clause (A) and inserting in lieu thereof "year", (B) by striking out "in which occurred the calendar quarter" in clause (A), and (C) by striking out "quarter" in clause (B) and inserting in lieu thereof "year". (c)(1) Effective with respect to estimates for calendar years beginning after December 31, 1977, section 224(a) of such Act is amended Ante, p. 1529. by striking out the last sentence. (2) Section 224(f)(2) of such Act is amended to read as follows: "(2) In making the redetermination required by paragraph (1), the individual's average current earnings (as defined in subsection (a)) shall be deemed to be the product of— "(A) his average current earnings as initially determined under subsection (a); " (B) the ratio of (i) the average of the total wages (as defined in regulations of the Secretary and computed without regard to the limitations specified in section 209(a)) reported to the Secre- 42 USC 409. tary of the Treasury or his delegate for the calendar year before the year in which such redetermination is made to (ii) the average of the total wages (as so defined and computed) reported to the Secretary of the Treasury or his delegate for calendar year 1977 or, if later, the calendar year before the year in which the reduction was first computed (but not counting any reduction made in benefits for a previous period of disability); and "(C) in any case in which the reduction was first computed before 1978, the ratio of (i) the average of the taxable wages reported to the Secretary for the first calendar quarter of 1977 to (ii) the average of the taxable wages reported to the Secretary for the first calendar quarter of the calendar year before the year in which the reduction was first computed (but not countinsr any reduction made in berK^firs for a previous period of disability).

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Page:United States Statutes at Large Volume 91.djvu/1588

 91 STAT. 1554

42 USC 429.

42 USC 430.

42 USC 409.

42 USC 402. 42 USC 405. "Period."

26 USC 6011. 42 USC 418.

PUBLIC LAW 95-216—DEC. 20, 1977 Any amount determined under this paragraph which is not a multiple of $1 shall be reduced to the next lower multiple of $1.". (d) Section 229(a) of such Act is amended— (1) by striking out "shall be deemed to have been paid, in each calendar quarter occurring after 1956 in which he" and inserting in lieu thereof ", if he", and (2) by striking out "wages (in addition to the wages actually paid to" him for such service) of $300." at the end thereof and inserting in lieu thereof the following: "shall be deemed to have been paid— "(1) in each calendar quarter occurring after 1956 and before 1978 in which he was paid such wages, additional wages of $300, and "(2) in each calendar year occurring after 1977 in which he was paid such wages, additional wages of $100 for each $300 of such wages, up to a maximum of $1,200 of additional wages for any calendar year.". (e)(1) Section 230(b) of such Act is amended by striking out the last sentence. (2) Section 230(b)(1) of such Act is amended to read as follows: "(1) the contribution and benefit base which is in effect with respect to remuneration paid in (and taxable years beginning in) the calendar year in which the determination under subsection (a) is made, and". (3) Section 230(b)(2) of such Act is amended to read as follows: "(2) the ratio of (A) the average of the total wages (as defined in regulations of the Secretary and computed without regard to the limitations specified in section 209(a)) reported to the Secretary of the Treasury or his delegate for the calendar year before the calendar year in which the determination under subsection (a) is made to (B) the average of the total wages (as so defined and computed) reported to the Secretary of the Treasury or his delegate for the calendar year before the most recent calendar year in which an increase in the contribution and benefit base was enacted or a determination resulting in such an increase was made under subsection (a),". (f)(1) Effective with respect to convictions after December 31, 1977, section 202(u)(1)(C) of such Act is amended by striking out "quarter" wherever it appears and inserting in lieu thereof "year". (2)(A) Section 205(c)(1) of such Act is amended by striking out " (as defined in section 211(e))". (B) Section 205(c)(1) of such Act is further amended by adding at the end thereof the following new subparagraph: "(D) The term 'period' when used with respect to self-employment income means a taxable year and when used with respect to wages means— "(i) a quarter if wages were reported or should have been reported on a quarterly basis on tax returns filed with the Secretary of the Treasury or his delegate under section 6011 of the Internal Revenue Code of 1954 or regulations thereunder (or on reports filed by a State under section 218(e) or regulations thereunder), "(ii) a year if wages were reported or should have been reported on a yearly basis on such tax returns or reports, or "(iii) the half year beginning January 1 or July 1 in the case of wages which were reported or should have been reported for calendar year 1937.".

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 PUBLIC LAW 95-216—DEC. 20, 1977

91 STAT. 1555

(C) Section 205(o) of such Act is amended by inserting "before 42 USC 405. 1978" after "calendar year". (g) The amendments made by subsection (b) of this section shall Effective dates, apply with respect to remuneration paid after December 31, 1977, 42 USC 418 note, except that the amendment made by subsection (b)(2) shall apply with respect to notices submitted by the States to the Secretary after the date of the enactment of this Act. The amendments made by subsections (d) and (f)(2) shall be effective January 1, 1978. Except as otherwise specifically provided, the remaining amendments made by this section shall be effective January 1, 1979. Subpart 2—Amendments to the Internal Revenue Code of 1954 DEDUCTIOlSr OF TAX FROM WAGES

SEC. 355. (a) Section 3102(a) of the Internal Revenue Code of 1954 26 USC 3102. is amended by striking out "or (C) or (10)", and by inserting after "is less than $50;" the following: "and an employer who in any calendar year pays to an employee cash remuneration to which paragraph'(7)(C) or (10) of section 3121(a) is applicable may deduct Infra. an amount equivalent to such tax from any such payment of remuneration, even though at the time of payment the total amount of such i remuneration paid to the employee by the employer in the calendar year is less than $100;". (b)(1) Paragraphs (1) and (2) of section 3102(c) of such Code are each amended by striking out "quarter" wherever it appears and by inserting in lieu thereof "year". (2) Paragraph (3) of section 3102(c) of such Code is amended— (A) by striking out "quarter of the" in subparagraph (A); and (B) by striking out "quarter" wherever it appears in subparagraphs (B) and (C) and inserting in lieu thereof "year". (c) The amendments made by this section shall apply with respect Effective date. to remuneration paid and to tips received after December 31, 1977. 26 USC 3102 note. TECHNICAL AND CONFORMING AMENDMENTS

SEC. 356. (a) Sections 3121(a)(7)(C) and 3121(a) (10) of the Internal Revenue Code of 1954 are each amended by striking out "quarter" wherever it appears and inserting in lieu thereof "year", and by striking out "$50" and inserting in lieu thereof "$100". (b) Section 3121(a) of such Code is amended by striking out "or" at the end of paragraph (14), by striking out the period at the end of paragraph (15) and inserting in lieu thereof "; or", and by adding after paragraph (15) the following new paragraph: "(16) remuneration paid by an organization exempt from income tax under section 501(a) (other than an organization described in section 401(a)) or under section 521 in any calendar year to an employee for service rendered in the employ of such organization, if the remuneration paid in such year by the organization to the employee for such service is less than $100.". (c) Section 3121(b) (10) of such Code is amended by striking out inserting in lieu thereof "(10) service", and redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively. (d) Sections 3121(b) (17)(A) and 3121(g)(4)(B) of such Code are each amended by striking out "quarter" and inserting in lieu thereof "year".
 * '(10)(A)" and all that follows down through "(B)" service" and

26 USC 3121.

26 USC 501. 26 USC 401, 521.

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Page:United States Statutes at Large Volume 91.djvu/1590

 91 STAT. 1556

PUBLIC LAW 95-216—DEC. 20, 1977

Effective date.

26 USC 3121 note.

(e) The amendments made by this section shall apply with respect to remuneration paid and services rendered after December 31, 1977. Subparts—Conforming Amendment to the Railroad Eetirement Act of 1974 COMPUTATION OF EMPLOYEE A N N U I T I E S

45 USC 231b.

Effective date.

45 USC 231b note.

SEC. 358. (a) The last sentence of section 3(f)(1) of the Eailroad Retirement Act of 1974 is amended— (1) by inserting "paid before 1978" after "in the case of wages", and (2) by inserting "and in the case of wages paid after 1977" before the period at the end thereof. (b) The amendments made by this section shall be effective January 1, 1978. PART F—NATIONAL. COMMISSION ON SOCIAL SECURITY ESTABLISHMENT OF COMMISSION

42 USC 907a. Membership.

Appointment.

Membership qualifications.

ehairman. Quorum. Term. Vacancy.

SEC. 361. (a)(1) There is hereby established a commission to be known as the National Commission on Social Security (hereinafter referred to as the "Commission"). (2)(A) The Commission shall consist of— (i) five members to be appointed by the President, by and with the advice and consent of the Senate, one of whom shall, at the time of appointment, be designated as Chairman of the Commission; (ii) two members to be appointed by the Speaker of the House of Representatives; and (iii) two members to be appointed by the President pro tempore of the Senate. (B) At no time shall more than three of the members appointed by the President, one of the members appointed by the Speaker of the House of Representatives, or one of the members appointed by the President pro tempore of the Senate be members of the same political party. (C) The membership of the Commission shall consist of individuals who are of recognized standing and distinction and who possess the demonstrated capacity to discharge the duties imposed on the Commission, and shall include representatives of the private insurance industry and of recipients and potential recipients of benefits under the programs involved as well as individuals whose capacity is based on a special knowledge or expertise in those programs. No individual who is otherwise an officer or full-time employee of the United States shall serve as a member of the Commission, (D) The Chairman of the Commission shall designate a member of the Commission to act as Vice Chairman of the Commission. (E) A majority of the members of the Commission shall constitute a quorum, but a lesser number may conduct hearings. (F) Members of the Commission shall be appointed for a term of two years. (C) A vacancy in the Commission shall not affect its powers, but shall be filled in the same manner as that herein provided for the appointment of the member first appointed to the vacant position.

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Page:United States Statutes at Large Volume 91.djvu/1591

 PUBLIC LAW 95-216—DEC. 20, 1977 (3) Members of the Commission shall receive $138 per diem while engaged in the actual perforaiance of the duties vested in the Commission, plus reimbursement for travel, subsistence, and other necessary expenses incurred in the performance of such duties. (4) The Commission shall meet at the call of the Chairman, or at the call of a majority of the members of the Commission; but meetings of the Commission shall be held not less frequently than once in each calendar month which begins after a majority of the authorized membership of the Commission has first been appointed. (b)(1) It shall be the duty and function of the Commission to conduct a continuing study, investigation, and review of— (A) the Federal old-age, survivors, and disability insurance program established by title II of the Social Security Act; and (B) the health insurance programs established by title X VIII of such Act. (2) Such study, investigation, and review of such programs shall include (but not be limited to) — (A) the fiscal status of the trust funds established for the financing of such programs and the adequacy of such trust funds to meet the immediate and long-range financing needs of such programs; (B) the scope of coverage, the adequacy of benefits including the measurement of an adequate retirement income, and the conditions of qualification for benefits provided by such programs including the application of the retirement income test to unearned as well as earned income; (C) the impact of such programs on, and their relation to, public assistance programs, nongovernmental retirement and annuity programs, medical service delivery systems, and national employment practices; (D) any inequities (whether attributable to provisions of law relating to the establishment and operation of such programs, to rules and regulations promulgated in connection with the administration of such programs, or to administrative practices and procedures employed in the carrying out of such programs) which affect substantial numbers of individuals who are insured or otherwise eligible for benefits under such programs, including inequities and inequalities arising out of marital status, sex, or similar classifications or categories; (E) possible alternatives to the current Federal programs or particular aspects thereof, including but not limited to (i) a phasing out of the payroll tax with the financing of such programs being accomplished in some other manner (including general revenue funding and the retirement bond), (ii) the establishment of a system providing for mandatory participation in any or all of the Federal programs, (iii) the integration of such current Federal programs with private retirement programs, and (iv) the establishment of a system permitting covered individuals a choice of public or private programs or both; (F) the need to develop a special Consumer Price Index for the elderly, including the financial impact that such an index would have on the costs of the programs established under the Social Security Act; and (G) methods for effectively implementing the recommendations of the Commission. (3) In order to provide an effective opportunity for the general public to participate fully in the study, investigation, and review under

91 STAT. 1557 Compensation,

Meetings,

Study, investigation and review of programs. 42 USC 401. 42 USC 1395.

contents.

42 USC 1305.

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Page:United States Statutes at Large Volume 91.djvu/1592

 91 STAT. 1558

Report to President and Congress.

Reports to President and Congress; recommendations.

Executive Director, appointment and compensation. 5 USC 5316.

5 USC 5101 et seq., 5331. Hearings.

Support services.

Appropriation authorization. Notice of meetings. 42 USC 1395dd.

PUBLIC LAW 95-216—DEC. 20, 1977 this section, the Commission, in conducting such study, investigation, and review, shall hold public hearings in as many different geographical areas of the country as possible. The residents of each area where such a hearing is to be held shall be given reasonable advance notice of the hearing and an adequate opportunity to appear and express their views on the matters under consideration. (c)(1) No later than four months after the date on which a majority of the authorized membership of the Commission is initially appointed,, the Commission shall submit to the President and the Congress a special report describing the Commission's plans for conducting the study, investigation, and review under subsection (b), with particular reference to the scope of such study, investigation, and review and the methods proposed to be used in conducting it. (2) At or before the close of each of the first two years after the date on which a majority of the authorized membership of the Commission is initially appointed, the Commission shall submit to the President and the Congress an annual report on the study, investigation, and review under subsection (b), together with its recommendations with respect to the programs involved. The second such report shall constitute the final report of the Commission on such study, investigation, and review, and shall include its final recommendations; and upon the submission of such final report the Commission shall cease to exist. (d)(1) The Commission shall appoint an Executive Director of the Commission who shall be compensated at a rate fixed by the Commission, but which shall not exceed the rate established for level V of the Executive Schedule by title 5, United States Code. (2) In addition to the Executive Director, the Commission shall have the power to appoint and fix the compensation of such personnel as it deems advisable, in accordance with the provisions of title 5, United States Code, governing appointments to the competitive service, and the provisions of chapter 51 and subchapter III of chapter 53 of such title, relating to classification and General Schedule pay rates. (e) In carrying out its duties under this section, the Commission, or any duly authorized committee thereof, is authorized to hold such hearings, sit and act at such times and places, and take such testimony, with respect to matters with respect to which it has a responsibility under this section, as the Commission or such committee may deem advisable. The Chairman of the Commission or any member authorized by him may administer oaths or affirmations to witnesses appearing before the Commission or before any committee thereof. (f) The Commission may secure directly from any department or agency of the United States such data and information as may be necessary to enable it to carry out its duties under this section. Upon request of the Chairman of the Commission, any such department or agency shall furnish any such data or information to the Commission. (g) The General Services Administration shall provide to the Commission, on a reimbursable basis such administrative support services as the Commission may request. (h) There are hereby authorized to be appropriated such sums as may be necessary to carry out this section. (i) It shall be the duty of the Health Insurance Benefits Advisory Council (established by section 1867 of the Social Security Act) to provide timely notice to the Commission of any meeting, and the Chairman of the Commission (or his delegate) shall be entitled to attend any such meeting.

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Page:United States Statutes at Large Volume 91.djvu/1593

 PUBLIC LAW 95-216—DEC. 20, 1977

91 STAT. 1559

PART G—MISCELI^NEOUS PROVISIONS APPOINTMENT OF HEARING EXAMINERS

42 USC 1383 note, 42 USC 1383. 42 USC 1383 note.

SEC. 371. The persons who were appointed to serve as hearing examiners under section 1631(d)(2) of the Social Security Act (as in effect prior to January 2, 1976), and who by section 3 of Public Law 94-202 were deemed to be appointed under section 3105 of title 5, United States Code (with such appointments terminating no later than at the close of the period ending December 31, 1978), shall be deemed appointed to career-absolute positions as hearing examiners under and in accordance with section 3105 of title 5, United States Code, with the same authority and tenure (without regard to the expiration of such period) as hearing examiners appointed directly under such section 3105, and shall receive compensation at the same rate as hearing examiners appointed by the Secretary of Health, Education, and Welfare directly under such section 3105. All of the provisions of title 5, United States Code, and the regulations promulgated pursuant 5 USC 101 et seq. thereto, which are applicable to hearing examiners appointed under such section 3105, shall apply to the persons described in the preceding sentence. REPORT OF ADVISORY COUNCIL ON SOCIAL SECURITY

42 USC 907 note. SEC. 372. Notwithstanding the provisions of section 706(d) of the Social Security Act, the report of the Advisory Council on Social 42 USC 907. Security which is due not later than January 1, 1979, may be filed at any date prior to October 1, 1979. TITLE IV—PROVISIONS RELATING TO CERTAIN STATE W E L F A R E AND SERVICE PROGRAMS RECEIVING FEDERAL FINANCIAL ASSISTANCE FISCAL RELIEF FOR STATES AND POLITICAL SUBDIVISIONS W I T H RESPECT TO COSTS OF WELFARE PROGRAMS

(1) in subsection (a), by adding at the end thereof the following new paragraph: "In the case of calendar quarters beginning after September 30, 1977, and prior to April 1, 1978, the amount to be paid to each State (as determined under the preceding provisions of this subsection or section 1118, as the case may be) shall be increased in accordance with 42 USC 1318. the provisions of subsection (i) of this section."; and (2) by adding at the end thereof the following new subsection: " (i)(l) In the case of any calendar quarter which begins after September 30, 1977, and prior to April 1, 1978, the amount payable (as determined under subsection (a) or section 1118, as the case may be) to each State which has a State plan approved under this part shall (subject to the succeeding paragraphs of this subsection) be increased by an amount equal to the sum of the following: "(A) an amount which bears the same ratio to $46,750,000 as the amount expended as aid to families with dependent children under the State plan of such State during the month of December 1976 bears to the amount expended as aid to families with dependent children under the State plans of all States during such month, and
 * SEC. 401, Section 403 of the Social Security Act is amended— 42 USC 603.

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 91 STAT. 1560

PUBLIC LAW 95-216—DEC. 20, 1977

"(B)(i) in the case of Puerto Eico, Guam, and the Virgin Islands, an amount equal to the amount determined under subparagraph (A) with respect to such State, or "(ii) in the case of any other State, an amount which bears the same ratio to $46,750,000, minus the amounts determined under clause (i) of this subparagraph, as the amount allocated to such State under section 106 of the State and Local Fiscal Assistance Act of 1972, for the most recent entitlement period for which allocations have been made under such section prior to the date of the enactment of this subsection, bears to the total of the amounts allocated to all States under such section 106 for such period. "(2) As a condition of any State receiving an increase, by reason of the application of the foregoing provisions of this subsection, in the amount determined for such State pursuant to subsection (a) or under section 1118 (as the case may be), such State must agree to pay to any political subdivision thereof which participates in the cost of the State's plan approved under this part, during any calendar quarter with respect to which such increase applies, so much of such increase as does not exceed 100 per centum of such political subdivision's financial contribution to the State's plan for such quarter. "(3) Notwithstanding any other provision of this part, the amount payable to any State by reason of the preceding provisions of this subsection for calendar quarters prior to April 1, 1978, shall be made in a single installment, which shall be payable as shortly after October 1, 1977, as is administratively feasible.".

31 USC 1225.

42 USC 1318.

INCENTIVE ADJUSTMENTS FOR QUALITY CONTROL I N FEDERAL F I N A N C I A L PARTICIPATION I N AID TO FAMILIES W I T H DEPENDENT CHILDREN PROGRAMS

" *' ^'

-

SEC. 402. (a) Section 403 of the Social Security Act is amended by adding after subsection (i) (as added by section 401 of this Act) the following new subsection: "(j) If the dollar error rate of aid furnished by a State under its State plan approved under this part with respect to any six-month period, as based on samples and evaluations thereof, is— "(1) at least 4 per centum, the amount of the Federal financial participation in the expenditures made by the State in carrying out such plan during such period shall be determined without regard to the provisions of this subsection; or " (2) less than 4 per centum, the amount of the Federal financial participation in the expenditures made by the State in carrying out such plan during such period shall be the amount determined without regard to this subsection, plus, of the amount by which such expenditures are less than they would have been if the erroneous excess payments of aid had been at a rate of 4 per centum— "(A) 10 per centum of the Federal share of such amount, in case such rate is not less than 3.5 per centum, " (B) 20 per centum of the Federal share of such amount, in case such rate is at least 3.0 per centum but less than 3.5 per centum, "(C) 30 per centum of the Federal share of such amount, in case such rate is at least 2.5 per centum but less than 3.0 per centum, "(D) 40 per centum of the Federal share of such amount, in case such rate is at least 2.0 per centum but less than 2.5 per centum,

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Page:United States Statutes at Large Volume 91.djvu/1595

 PUBLIC LAW 95-216—DEC. 20, 1977

91 STAT. 1561

" (E) 50 per centum of the Federal share of such amount, in case such rate is less than 2.0 per centum. For purposes of this subsection (i) the term 'dollar error rate of aid' means the total of the dollar error rates of aid for (I) payments to ineligible families receiving assistance: (II) overpayments to eligible families receiving assistance; ( III) underpayments to eligible families receiving assistance; and (IV) nonpayments to eligible families not receiving assistance due to erroneous terminations or denials, and (ii) the term 'erroneous excess payments,' means the total of (I) erroneous payments to ineligible families receiving assistance, and (II) overpayments to eligible families receiving assistance.". (b) Payments may be made under the amendment made by subsection (a) only in the case of periods commencing on or after January 1, 1978.

"Dollar error rate of aid."

Effective date. 42 USC 603 note.

ACCESS TO WAGE INFORMATION

SEC. 403. (a) Part A of title IV of the Social Security Act is amended by adding after section 410 the following new section: a ACCESS TO WAGE

INFORMATION

"SEC. 411. (a) Notwithstanding any other provision of law, the Secretary shall make available to States and political subdivisions thereof wage information contained in the records of the Social Security Administration which is necessary (as determined by the Secretary in reflations) for purposes of determining an individual's eligibility for aid or services, or the amount of such aid or services, under a State plan for aid and services to needy families with children approved under this part, and which is specifically requested by such State or political subdivision for such purposes. "(b) The Secretary shall establish such safeguards as are necessary (as determined by the Secretary under regulations) to insure that information made available under the provisions of this section is used only for the purposes authorized by this section.". (b) Section 3304(a) of the Federal Unemployment Tax Act is amended by redesignating paragraph (16) as paragraph (17) and by inserting after paragraph (15) the following new paragraph: "(16)(A) wage information contained in the records of the agency administering the State law which is necessary (as determined by the Secretary of Health, Education, and Welfare in regulations) for purposes of determining an individual's eligibility for aid or services, or the amount of such aid or services, under a State plan for aid and services to needy families with children approved under part A of title IV of the Social Security Act, shall be made available to a State or political subdivision thereof when such information is specifically requested by such State or political subdivision for such purposes, and "(B) such safeguards are established as are necessary (as determined by the Secretary of Health, Education, and Welfare in regulations) to insure that such information is used only for the purposes authorized under subparagraph (A);". (c) Section 402(a) of the Social Security Act is amended— (1) by striking out the word "and" at the end of paragraph (2) by striking out the period at the end of paragraph (28) and inserting in lieu thereof a semicolon and the word "and"; and

42 USC 611.

26 USC 3304.

42 USC 601.

42 USC 602.

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 91 STAT. 1562

PUBLIC LAW 95-216—DEC. 20, 1977

(3) by adding at the end thereof the following new paragraph: "(29) effective October 1, 1979, provided that wage information available from the Social Security Administration under 42 USC 611. the provisions of section 411 of this Act, and wage information available (under the provisions of section 3304(a) (16) of the 26 USC 3304. Federal Unemployment Tax Act) from agencies administering State unemployment compensation laws, shall be requested and utilized to the extent permitted under the provisions of such sections; except that the State shall not be required to request such information from the Social Security Administration where such information is available from the agency administering the State unemployment compensation laws.". Effective date. (d) The amendments made by this section shall be effective on the 42 USC 602 note, date of the enactment of this Act. STATE DEMONSTRATION PROJECTS

42 USC 1315.

42 USC 601.

SEC. 404. Section 1115 of the Social Security Act is amended— (1) by inserting "(a) "after "SEC. 1115."; (2) by redesignating subsections (a) and (b) as paragraphs (1) and (2),respectively; and (3) by adding at the end thereof the following new subsection: "(b)(1) In order to permit the States to achieve more efficient and effective use of funds for public assistance, to reduce dependency, and to improve the living conditions and increase the incomes of individuals who are recipients of public assistance, any State having an approved plan under part A of title IV may, subject to the provisions of this subsection, establish and conduct not more than three demonstration projects. In establishing and conducting any such project the State shall— " (A) provide that not more than one such project be conducted on a statewide basis; "(B) provide that in making arrangements for public service employment— "(i) appropriate standards for the health, safety, and other conditions applicable to the performance of work and training on such project are established and will be maintained, "(ii) such project will not result in the displacement of employed workers, " (iii) each participant in such project shall be compensated for work performed by him at an hourly rate equal to the prevailing hourly wage for similar work in the locality where the participant performs such work (and, for purposes of this clause, benefits payable under the State's plan approved under part A of title IV of the family of which such participant is a member shall be regarded as compensation for work performed by such participant), "(iv) with respect to such project the conditions of work, training, education, and employment are reasonable in the light of such factors as the type of work, geographical region, and proficiency of the participant, and "(v) appropriate workmen's compensation protection is provided to all participants; and "(C) provide that participation in such project by any individual receiving aid to families with dependent children be voluntary.

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Page:United States Statutes at Large Volume 91.djvu/1597

 PUBLIC LAW 95-216—DEC. 20, 1977 "(2) Any State which establishes and conducts demonstration projects under this subsection may, subject to paragraph (3), with respect to any such project— " (A) waive, subject to paragraph (3), any or all of the requirements of sections 402(a)(1) (relating to statewide operation), 402(a)(3) (relating to administration by a single State agency), 402(a)(8) (relating to disregard of earned income), except that no such waiver of 402 (a)(8) shall operate to waive any amount in excess of one-half of the earned income of any individual, and 402 (a) (19) (relating to the work incentive program); "(B) subject to paragraph (4), use to cover the costs of the project such funds as are appropriated for payment to such State with respect to the assistance which is or would, except for participation in a project under this subsection, be payable to individuals participating in such projects under part A of title IV for any fiscal year in which such projects are conducted; and "(C) use such funds as are appropriated for payments to States under the State and Local Fiscal Assistance Act of 1972 for any fiscal year in which the project is conducted to cover so much of the costs of salaries for individuals participating in public service employment as is not covered through the use of funds made available under subparagraph (B). "(3)(A) Any State which wishes to establish and conduct demonstration projects under the provisions of this subsection shall submit an application to the Secretary in such form and containing such information as the Secretary may require. Whenever any State submits such an application to the Secretary, it shall at the same time issue public notice of that fact together with a general description of the project with respect to which the application is submitted, and shall invite comment thereon from interested parties and comments thereon may be submitted, within the 30-day period beginning with the date the application is submitted to the Secretary, to the State or the Secretary by such parties. The State shall also make copies of the application available for public inspection. The Secretary shall also immediately publish a summary of the proposed project, make copies of the application available for public inspection, and receive and consider comments submitted with respect to the application. A State shall be authorized to proceed with a project submitted under this subsection— "(i) when such application has been approved by the Secretary (which shall be no earlier than 30 days following the date the application is submitted to him), or "(ii) 60 days after the date on which such application is submitted to the Secretary unless, during such 60 day period, he denies the application. " (B) Notwithstanding the provisions of paragraph (2)(A), the Secretary may review any waiver made by a State under such paragraph. Upon a finding that any such waiver is inconsistent with the purposes of this subsection and the purposes of part A of title IV, the Secretary may disapprove such waiver. The project with respect to which any such disapproved waiver was made shall be terminated by such State not later than the last day of the month following the month in which such waiver was disapproved.

91 STAT. 1563

42 USC 602.

31 USC 1221 "ote.

Application.

Notice.

Copies, public inspection.

42 USC 601

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Page:United States Statutes at Large Volume 91.djvu/1598

 91 STAT. 1564

42 USC 607. Termination.

PUBLIC LAW 95-216—DEC. 20, 1977

"(4) Any amount payable to a State under section 403(a) on behalf of an individual participating in a project under this section shall not be increased by reason of the participation of such individual in any demonstration project conducted under this subsection over the amount which would be payable if such individual were receiving aid to families with dependent children and not participating in such project. "(5) Participation in a project established under this section shall not be considered to constitute employment for purposes of any finding with respect to 'imemployment' as that term is used in section 407. "(6) Any demonstration project established and conducted pursuant to the provisions of this subsection shall be conducted for not longer than two years. All demonstration projects established and conducted pursuant to the provisions of this subsection shall be terminated not later than September 30, 1980.". REIMBURSEMENT FOR ERRONEOUS STATE SUPPLEMENTARY

42 USC 1383 note.

87 Stat. 155. 42 USC 1382e.

Appropriation authorization.

PAYMENT

SEC. 405. (a) Notwithstanding any other provision of law, the Secretary of Health, Education, and Welfare is authorized and directed to pay to each State an amount equal to the amount expended by such State for erroneous supplementary payments to aged, blmd, or disabled individuals whenever, and to the extent to which, the Secretary through an audit by the Department of Health, Education, and Welfare which has been reviewed and concurred in by the Inspector General of such department determines that— (1) such amount was paid by such State as a supplementary payment during the calendar year 1974 pursuant to an agreement between the State and the Secretary required by section 212 of the Act entitled "An Act to extend the Kenegotiation Act of 1951 for one year, and for other purposes", approved July 9, 1973, or such amount was paid by such State as an optional State supplementation, as defined in section 1616 of the Social Security Act, during the calendar year 1974, (2) the erroneous payments were the result of good faith reliance by such State upon erroneous or incomplete information supplied by the Department of Health, Education, and Welfare, through the State data exchange, or good faith reliance upon incorrect supplemental security income benefit payments made by such department, and (3) recovery of the erroneous payments by such State would be impossible or unreasonable. (b) There are authorized to be appropriated such sums as are necessary to carry out the provisions of this section. TITLE V—MISCELLANEOUS COVERAGE U N D E R M E D I C A R E OF CERTAIN P O W E R - O P E R A T E D W H E E L C H A I R S

42USei395x.

SEC. 501. (a) Section 1861(s)(6) of the Social Security Act is amended by inserting after "wheelchairs" the following: "(which may include a power-operated vehicle that may be appropriately used as a wheelchair, but only where the use of such a vehicle is determined to be necessary on the basis of the individual's medical and physical condition and the vehicle meets such safety requirements as the Secretary may prescribe)".

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