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PUBLIC LAW 97-35—AUG. 13, 1981

conditions. Other than criteria for participation in the State's work incentive demonstration project, which shall be uniform throughout the State, the components of the program may vary by geographic area or by political subdivision. Program "(d) A State's work incentive demonstration program, if initially duration. approved, shall be in force for a three-year period. During this period, the State may elect to use up to six months for planning purposes. During such planning period, all requirements of part A and this part 42 USC 601, 630. C shall remain in full force and effect, Evaluations by "(e) The Secretary of Health and Human Services shall conduct two HHS Secretary. evaluations of a State's work incentive demonstration program. The first evaluation shall be conducted at the conclusion of the first twelve months of operation of the demonstration program. The second evaluation shall be conducted at the conclusion of the demonstration program. Both evaluations shall compare placement rates during the demonstration program with placement rates achieved during a number of previous years, to be determined by the Secretary of Health and Human Services. Funding. "(f)(1) For each year of its demonstration program, a State which is operating such program shall be funded in an amount equal to its initial annual 1981 allocation under the work incentive program set forth in this part, plus any other Federal funds which the State may properly receive under any statute for establishing work programs for recipients of aid to families with dependent children. "(2) Such funds shall only be used by the State for administering and operating its work incentive demonstration program. These funds shall not be used for direct grants of assistance under the aid to families with dependent children program. "(g) Earnings derived from participation in a State's work incentive demonstration program shall not result in a determination of financial ineligibility for assistance under the aid to families with dependent children program.". EFFECT OF PARTICIPATION IN A STRIKE ON ELIGIBILITY FOR AFDC

42 USC 602.

SEC. 2310. Section 402(a) of the Social Security Act is amended by inserting after paragraph (20) the following new paragraph: "(21) provide— "(A) that, for purposes of this part, participation in a strike shall not constitute good cause to leave, or to refuse to seek or accept employment; and "(B)(i) that aid to families with dependent children is not payable to a family for any month in which any caretaker relative with whom the child is living is, on the last day of such month, participating in a strike, and (ii) that no individual's needs shall be included in determining the amount of aid payable for any month to a family under the plan if, on the last day of such month, such individual is participating in a strike;". AGE LIMIT OF DEPENDENT CHILD

42 USC 606.

SEC. 2311. Section 406(a)(2) of the Social Security Act is amended to read as follows: "(2) who is (A) under the age of eighteen, or (B) at the option of the State, under the age of nineteen and a full-time student m a secondary school (or in the equivalent level of vocational or technical training), if, before he attains age nineteen, he may reason-

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95 STAT. 853

ably be expected to complete the program of such secondary school (or such training);". LIMITATION ON AFDC TO PREGNANT WOMEN

SEC. 2312. (a) Section 406(b) of the Social Security Act is amended by striking out "dependent children" the second place it appears in the matter that precedes clause (1) and inserting in lieu thereof "dependent children, or, at the option of the State, a pregnant woman but only if it has been medically verified that the child is expected to be born in the month such payments are made or within the threemonth period following such month of payment, and who, if such child had been born and was living with her in the month of payment, would be eligible for aid to families with dependent children", (b) Section 406 of such Act is amended by adding at the end thereof the following new subsection: "(g)(1) Notwithstanding the provisions of subsection (b), the term 'aid to families with dependent children' does not mean any— "(A) amount paid to meet the needs of an unborn child; or "(B) amount paid (or by which a payment is increased) to meet the needs of a woman occasioned by or resulting from her pregnancy, unless, as has been medically verified, the woman's child is expected to be born in the month such payments are made (or increased) or within the three-month period following such month of payment. "(2) Notwithstanding paragraph (1), a State may provide that for purposes of title XIX a pregnant woman shall be deemed to be a recipient of aid to families with dependent children under this part if she would be eligible for such aid if such child had been born and was living with her in the month of payment, and such pregnancy has been medically verified.".

42 USC 606.

"Aid to families with dependent ^ ^ ^^"

42 USC 1396.

AID TO FAMIUES WITH DEPENDENT CHILDREN BY REASON OF UNEMPLOYMENT OF A PARENT

SEC. 2313. (a) Section 407 of the Social Security Act is amended as 42 USC 607. follows: (1) the heading is amended to read "DEPENDENT CHILDREN OF UNEMPLOYED PARENTS";

(2) subsection (a) is amended by striking out "his father" and inserting in lieu thereof "the parent who is the principal earner"; (3) subsection (b)(1) is amended— (A) by striking out "such child's father" in subparagraph (A) and inserting in lieu thereof "whichever of such child's parents is the principal earner", and (B) by striking out "father" in subparagraph (B) and inserting in lieu thereof "parent"; (4) subsection (b)(2) is amended— (A) by striking out "fathers" in subparagraph (A) and inserting in lieu thereof "unemployed parents ', and (B) by striking out "father" in subparagraph (C)(i) and (ii) and in subparagraph (D) and inserting in lieu thereof "parent described in paragraph (1)(A)"; (5) subsection (c) is amended by striking out "father" both times it appears and inserting in lieu thereof "parent"; (6) subsection (d) is amended— (A) by striking out "and" at the end of paragraph (2);

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Definition.

94 Stat. 460. 42 USC 602.

42 USC 607.

94 Stat. 461. 42 USC 602.

42 USC 607.

PUBLIC LAW 97-35—AUG. 13, 1981 (B) by striking out the period at the end of paragraph (3) and inserting in lieu thereof "; and"; and (C) by adding at the end thereof the following new paragraph: "(4) the phrase 'whichever of such child's parents is the principal earner', in the case of any child, means whichever parent, in a home in which both parents of such child are living, earned the greater amount of income in the 24-month period the last month of which immediately precedes the month in which an application is filed for aid under this part on the basis of the unemployment of a parent, for each consecutive month for which the family receives such aid on that basis."; and (7) subsection (e) is amended by striking out "fathers" and inserting in lieu thereof "parents". (b) Section 402(a)(19)(A) of such Act is amended— (1) ijy striking out "mother" in clause (v) and inserting in lieu thereof "parent"; (2) by striking out "mother or other female caretaker of a child, if the father or another adult male relative" in clause (vi) and inserting in lieu thereof "parent or other caretaker of a child who is deprived of parental support or care by reason of the death, continued absence from the home, or physical or mental incapacity of a parent, if another adult relative"; (3)(A) by striking out "or" at the end of clause (vi); (B) by striking out the semicolon at the end of clause (vii) and inserting in lieu thereof "; or"; and (C) by adding at the end thereof the following new clause: ' (viii) the parent of a child who is deprived of parental support or care by reason of the unemployment of a parent, if the other parent (who is the principal earner, as defined in section 407(d)) is not excluded by the preceding clauses of this subparagraph;"; and (4) in the matter following the numbered clauses— (A) by striking out "her option" and inserting in lieu thereof "his or her option"; (B) by striking out "if she so desires" and inserting in lieu thereof "if he or she so desires"; (C) by striking out "to her" and inserting in lieu thereof "to him or her"; and (D) by striking out "she should decide" and inserting in lieu thereof "he or she should decide". (c)(1) Section 402(a)(19)(F) of such Act is amended by redesignating clauses (ii) through (iv) as clauses (iii) through (v), respectively, and by inserting after clause (i) the following new clause: "(ii) if the parent who has been designated as the principal earner, for purposes of section 407, makes such refusal, aid will be denied to all members of the family;". (2) Section 407(b)(2)(C)(i) of such Act is amended by striking out "not registered" and inserting in lieu thereof "not currently registered". WORK REQUIREMENTS FOR AFDC RECIPIENTS

42 USC 602.

SEC. 2314. (a) Section 402(a)(19)(A)(i) of the Social Security Act is amended to read as follows: "(i) a child who is under age 16 or attending, full-time, an elementary, secondary, or vocational (or technical) school;", (b) Section 402(a)(19)(A)(v) of such Act (as amended by section 2313(b)(1) of this Act) is amended to read as follows:

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"(v) the parent or other relative of a child under the age of six who is personally providing care for the child with only very brief and infrequent absences from the child;". RETROSPECTIVE BUDGETING AND MONTHLY REPORTING

SEC. 2315. (a) Section 402(a) of the Social Security Act is amended 42 USC 602. by inserting after paragraph (12) the following new paragraphs: "(13) provide that— "(A) except as provided in subparagraph (B), the State agency (i) will determine a family s eligibility for aid for a month on the basis of the family's income, composition, resources, and other similar relevant circumstances during such month, and (ii) will determine the amount of such aid on the basis of the income and other relevant circumstances in the first or, at the option of the State but only where the Secretary determines it to be appropriate, second month preceding such month; and "(B) in the case of the first month, or at the option of the State but only where the Secretary determines it to be appropriate, the first and second months, in a period of consecutive months for which aid is payable, the State agency will determine the amount of aid on the basis of the family's income and other relevant circumstances in such first or second month; "(14)(A) provide that the State agency will require each family to which it furnishes aid to families with dependent children (or to which it would provide such aid but for paragraph (22) or (32)) to report, as a condition to the continued receipt of such aid (or to continuing to be deemed to be a recipient of such aid), each month to the State agency on— "(i) the income received, family composition, and other relevant circumstances during the prior month; and "(ii) the income and resources it expects to receive, or any changes in circumstances affecting continued eligibility or benefit amount, that it expects to occur, in that month (or in future months); except that with the prior approval of the Secretary the State may select categories of recipients who may report at specified less frequent intervals upon the State's showing to the satisfaction of the Secretary that to require individuals in such categories to report monthly would result in unwarranted expenditures for administration of this paragraph; and "(B) that, in addition to whatever action may be appropriate based on other reports or information received by the State agency, the State agency will take prompt action to adjust the amount of assistance payable, as may be appropriate, on the basis of the information contained in the report (or upon the failure of the family to furnish a timely report), and will give an appropriate explanatory notice, concurrent with its action, to the family;", (b) Section 403(a) of such Act is amended by adding at the end 42 USC 603. thereof the following sentence: "No payment shall be made under this subsection with respect to amounts paid to supplement or otherwise increase the amount of aid to families with dependent children found payable in accordance with section 402(a)(13) if such Supra. amount is determined to have been paid by the State in recognition of

89-194 0—82

56:QL3

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 95 STAT. 856

PUBLIC LAW 97-35—AUG. 13, 1981 the current or anticipated needs of a family (other than with respect to the first or first and second months of eligibility).". PROHIBITION AGAINST PAYMENT OF AID IN AMOUNTS BELOW TEN DOLLARS

SEC. 2316. Section 402(a) of the Social Security Act (as amended by section 2306 of this Act) is amended— (1) by striking out "and" at the end of paragraph (30); (2) by striking out the period at the end of paragraph (31) and inserting in lieu thereof "; and"; and (3) by adding after paragraph (31) the following new paragraph: "(32) provide that no payment of aid shall be made under the plan for any month if the amount of such payment, as determined in accordance with the applicable provisions of the plan and of this part, would be less than $10, but an individual with respect to whom a payment of aid under the plan is denied solely by reason of this paragraph is deemed to be a recipient of aid but shall not be eligible to participate in a community work experience program.". REMOVAL OF LIMIT ON RESTRICTED PAYMENTS IN A STATE'S A F D C PROGRAM

42 USC 603. 42 USC 606.

S E C 2317. (a) Section 403(a) of the Social Security Act is amended by striking out the first unnumbered paragraph following paragraph (5). (b) Section 406(b) of such Act is amended by adding at the end thereof the following new sentence: "Payments of the type described in clause (2) shall not be subject to the requirements of clauses (A) through (E) of such clause (2), when they are made in the manner described in clause (2) at the request of the family member to whom payment would otherwise be made in an unrestricted manner.". ADJUSTMENT FOR INCORRECT PAYMENTS

42 USC 602. Ante, p. 852.

SEC. 2318. Section 402(a) of the Social Security Act is amended by inserting after paragraph (21) the following new paragraph: "(22) provide that the State agency will promptly take all necessary steps to correct any overpayment or underpayment of aid under the State plan, and, in the case of— "(A) an overpayment to an individual who is a current recipient of such aid, recovery will be made by repayment by the individual or by reducing the amount of any future aid payable to the family of which he is a member, except that such recovery shall not result in the reduction of aid payable for any month, such that the aid, when added to such family s liquid resources and to its income (without application of paragraph (8)), is less than 90 percent of the amount payable under the State plan to a family of the same composition with no other income (and, in the case of an individual to whom no payment is made for a month solely by reason of recovery of an overpayment, such individual shall be deemed to be a recipient of aid for such month); "(B) an overpayment to any individual who is no longer receiving aid under the plan, recovery shall be made by

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95 STAT. 857

appropriate action under State law against the income or resources of the individual or the family; and "(C) an underpayment, the corrective payment shall be disregarded in determining the income of the family, and shall be disregarded in determining its resources in the month the corrective payment is made and in the following month;". REDUCED FEDERAL MATCHING OF STATE AND LOCAL AFDC TRAINING COSTS

SEC. 2819. (a) Section 403(a)(3)(A) of the Social Security Act, as in effect in the fifty States and the District of Columbia, is repealed. (b) Section 403(a)(3)(A)(iii) of such Act, as in effect in Puerto Rico, Guam, and the Virgin Islands, is repealed. (c) The first sentence of section 403(d)(1) of such Act is amended by striking out all that precedes "with respect to" and inserting in lieu thereof "Notwithstanding any provision of subsection (a)(3), the applicable rate under such subsection shall be 90 per centum". (d) The repeals made by this section shall apply to expenditures made after September 30, 1981.

42 USC 603. 42 USC 603 note. 94 Stat. 462.

42 USC 603 note.

ELIGIBILITY OF A L I E N S FOR AFDC

SEC. 2320. (a) Section 402(a) of the Social Security Act (as amended by section 2316 of this Act) is further amended— (1) by striking out "and" at the end of paragraph (31); (2) by striking out the period at the end of paragraph (32) and inserting in lieu thereof *; and"; and (3) by adding immediately after paragraph (32) the following new paragraph: "(33) provide that in order for any individual to be considered a dependent child, a caretaker relative whose needs are to be taken into account in making the determination under paragraph (7), or any other person whose needs should be taken into account in making such a determination with respect to the child or relative, such individual must be either (A) a citizen, or (B) an alien lawfully admitted for permanent residence or otherwise permanently residing in the United States under color of law (including any alien who is lawfully present in the United States as a result of the application of the provisions of section 207(c) of the Immigration and Nationality Act (or of section 203(a)(7) of 94 Stat. 103. such Act prior to April 1, 1980), or as a result of the application of | USC 1157. the provisions of section 208 or 212(d)(5) of such Act).'\ 94 Stat 105 107 (b)(1) Section 402(a)(7) of such Act (as amended by section 2302 of g USC 1158,' this Act) is further amended by inserting "and section 415" after 1182. "paragraph (31)". (2) Part A of title IV of such Act (as amended by section 2308 of this Act) is further amended by adding at the end thereof the following new section: " A T T R I B U T I O N OF S P O N S O R ' S I N C O M E AND RESOURCES TO ALIEN

"SEC. 415. (a) For purposes of determining eligibility for and the 42 USC 615. amount of benefits under a State plan approved under this part for an individual who is an alien described in clause (B) of section 402(a)(33), Supra. the income and resources of any person who (as a sponsor of such individual's entry into the United States) executed an affidavit of

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PUBLIC LAW 97-35—AUG. 13, 1981

Sponsor information and

support or similar agreement with respect to such individual, and the income and resources of the sponsor's spouse, shall be deemed to be the unearned income and resources of such individual (in accordance with subsections (b) and (c)) for a period of three years after the individual's entry into the United States, except that this section is not applicable if such individual is a dependent child and such sponsor (or such sponsor's spouse) is the parent of such child. "(b)(1) The amount of income of a sponsor (and his spouse) which shall be deemed to be the unearned income of an alien for any month shall be determined as follows: "(A) the total amount of earned and unearned income of such sponsor and such sponsor's spouse (if such spouse is living with the sponsor) shall be determined for such month; "(B) the amount determined under subparagraph (A) shall be reduced by an amount equal to the sum of— "(i) the lesser of (I) 20 percent of the total of any amounts received by the sponsor and his spouse in such month as wages or salary or as net earnings from self-employment, plus the full amount of any costs incurred by them in producing self-employment income in such month, or (II) $175; "(ii) the cash needs standard established by the State under its plan for a family of the same size and composition as the sponsor and those other individuals living in the same household as the sponsor who are claimed by him as dependents for purposes of determinig his Federal personal income tax liability but whose needs are not taken into account in making a determination under section 402(a)(7); "(iii) any amounts paid by the sponsor (or his spouse) to individuals not living in such household who are claimed by him as dependents for purposes of determining his Federal personal income tax liability; and "(iv) any payments of alimony or child support with respect to individuals not living in such household. "(2) The amount of resources of a sponsor (and his spouse) which shall be deemed to be the resources of an alien for any month shall be determined as follows: "(A) the total amount of the resources (determined as if the sponsor were applying for aid under the State plan approved under this part) of such sponsor and such sponsor's spouse (if such spouse is living with the sponsor) shall be determined; and "(B) the amount determined under subparagraph (A) shall be reduced by $1,500. "(c)(1) Any individual who is an alien shall, during the period of three years after entry into the United States, in order to be eligible

documentation.

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Ante, p. 844.

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for aid under a State plan approved under this part, be required to provide to the State agency administering such plan such information and documentation with respect to his sponsor as may be necessary in order for the State agency to make any determination required under this section, and to obtain any cooperation from such sponsor necessary for any such determination. Such alien shall also be required to provide to the State agency such information and documentation as it may request and which such alien or his sponsor provided in support of such alien's immigration application. "(2) The Secretary shall enter into agreements with the Secretary of State and the Attorney General whereby any information available to them and required in order to make any determination under this section will be provided by them to the Secretary (who may, in

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 PUBLIC LAW 97-35—AUG. 13, 1981 turn, make such information available, upon request, to a concerned State agency), and whereby the Secretary of State and Attorney General will inform any sponsor of an alien, at the time such sponsor executes an affidavit of support or similar agreement, of the requirements imposed by this section. "(d) Any sponsor of an alien, and such alien, shall be jointly and severally liable for an amount equal to any overpayment of aid under the State plan made to such alien during the period of three years after such alien's entry into the United States, on account of such sponsor's failure to provide correct information under the provisions of this section, except where such sponsor was without fault, or where good cause of such failure existed. Any such overpayment which is not repaid to the State or recovered in accordance with the procedures generally applicable under the State plan to the recoupment of overpayments shall be withheld from any subsequent payment to which such alien or such sponsor is entitled under any provision of this Act. "(e)(1) In any case where a person is the sponsor of two or more alien individuals who are living in the same home, the income and resources of such sponsor (and his spouse), to the extent they would be deemed the income and resources of any one of such individuals under the preceding provisions of this section, shall be divided into two or more equal shares (the number of shares being the same as the number of such alien individuals) and the income and resources of each such individual shall be deemed to include one such share. "(2) Income and resources of a sponsor (and his spouse) which are deemed under this section to be the income and resources of any alien individual in a family shall not be considered in determining the need of other family members except to the extent such income or resources are actually available to such other members. "(f) The provisions of this section shall not apply with respect to any alien who is— "(1) admitted to the United States as a result of the application, prior to April 1, 1980, of the provisions of section 203(a)(7) of the Immigration and Nationality Act; "(2) admitted to the United States as a result of the application, after March 31, 1980, of the provisions of section 207(c) of such Act; "(3) paroled into the United States as a refugee under section 212(d)(5) of such Act; "(4) granted political asylum by the Attorney General under section 208 of such Act; or "(5) a Cuban and Haitian entrant, as defined in section 501(e) of the Refugee Education Assistance Act of 1980 (Public Law 96-422).". (c) The amendments made by subsection (a) shall be effective on the date of the enactment of this Act. The amendments made by subsection (b) shall be effective with respect to individuals applying for aid to families with dependent children under any approved State plan for the first time after September 30, 1981.

95 STAT. 859

Overpayment liability.

8 USC 1153.

94 Stat. 103. 8 USC 1157. 94 Stat. 107. 8 USC 1182. 94 Stat. 105. 8 USC 1158. 94 Stat. 1809. 8 USC 1522 note. Effective dates. 42 USC 615 note.

EFFECTIVE DATE

SEC. 2321. (a) Except as otherwise specifically provided in the 42 USC 602 note. preceding sections of this chapter or in subsection (b), the provisions of this chapter and the amendments and repeals made by this chapter shall become effective on October 1, 1981.

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 95 STAT. 860 42 USC 601.

"Session of a State's legislature."

PUBLIC LAW 97-35—AUG. 13, 1981 (b) If a State agency administering a plan approved under part A of title IV of the Social Security Act demonstrates, to the satisfaction of the Secretary of Health and Human Services, that it cannot, by reason of State law, comply with the requirements of an amendment made by this chapter to which the effective date specified in subsection (a) applies, the Secretary may prescribe that, in the case of such State, the amendment will become effective beginning with the first month beginning after the close of the first session of such State's legislature ending on or after October 1, 1981. For purposes of the preceding sentence, the term "session of a State's legislature" includes any regular, special, budget, or other session of a State legislature. CHAPTER 2—CHILD SUPPORT ENFORCEMENT COLLECTION OF PAST-DUE CHILD AND SPOUSAL SUPPORT FROM FEDERAL TAX REFUNDS

SEC. 2331. (a) Part D of title IV of the Social Security Act is amended by adding at the end thereof the following new section: COLLECTION OF PAST-DUE SUPPORT FROM FEDERAL TAX REFUNDS

42 USC 664. 42 USC 602.

42 USC 657. Regulations.

"Past-due support."

42 USC 654.

"SEC. 464. (a) Upon receiving notice from a State agency administering a plan approved under this part that a named individual owes past-due support which has been assigned to such State pursuant to section 402(a)(26), the Secretary of the Treasury shall determine whether any amounts, as refunds of Federal taxes paid, are payable to such individual (regardless of whether such individual filed a tax return as a married or unmarried individual). If the Secretary of the Treasury finds that any such amount is payable, he shall withhold from such refunds an amount equal to the past-due support, and pay such amount to the State agency (together with notice of the individual's home address) for distribution in accordance with section 457(b)(3). "(b) The Secretary of the Treasury shall issue regulations, approved by the Secretary of Health and Human Services, prescribing the time or times at which States must submit notices of past-due support, the manner in which such notices must be submitted, and the necessary information that must be contained in or accompany the notices. The regulations shall specify the minimum amount of past-due support to which the offset procedure established by subsection (a) may be applied, and the fee that a State must pay to reimburse the Secretary of the Treasury for the full cost of applying the offset procedure, and provide that the Secretary of the Treasury will advise the Secretary of Health and Human Services, not less frequently than annually, of the States which have furnished notices of past-due support under subsection (a), the number of cases in each State with respect to which such notices have been furnished, the amount of support sought to be collected under this subsection by each State, and the amount of such collections actually made in the case of each State. "(c) As used in this part the term 'past-due support' means the amount of a delinquency, determined under a court order, or an order of an administrative process established under State law, for support and maintenance of a child, or of a child and the parent with whom the child is living.". (b) Section 454 ofsuch Act is amended—

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(1) by striking out "and" at the end of paragraph (16); (2) by striking out the period at the end of paragraph (17) and inserting in lieu thereof "; and"; and (3) by adding at the end thereof the following new paragraph: "(18) provide that the State has in effect procedures necessary to obtain payment of past-due support from overpayments made to the Secretary of the Treasury as set forth in section 464, and Anti, p. 860. take all steps necessary to implement and utilize such procedures.", (c) Section 6402 of the Internal Revenue Code of 1954 is amended— 26 USC 6402. (1) by striking out in subsection (a) thereof "shall refund" and inserting in lieu thereof "shall, subject to subsection (c), refund"; and (2) by adding at the end thereof the following new subsection: "(c) OFFSET OF PAST-DUE SUPPORT AGAINST OVERPAYMENTS.—The

amount of any overpayment to be refunded to the person making the overpayment shall be reduced by the amount of any past-due support (as defined in section 464(c) of the Social Security Act) owed by that person of which the Secretary has been notified by a State in accordance with section 464 of the Social Security Act. The Secretary shall remit the amount by which the overpayment is so reduced to the State to which such support has been assigned and notify the person making the overpayment that so much of the overpayment as was necessary to satisfy his obligation for past-due support has been paid to the State. This subsection shall be applied to an overpayment prior to its being credited to a person's future liability for an internal revenue tax.", COLLECTION OF SUPPORT FOR CERTAIN ADULTS

SEC. 2332. (a) Section 451 of the Social Security Act is amended by 42 USC 651. striking out "children" and inserting in lieu thereof "children and the spouse (or former spouse) with whom such children are living" and by striking out "child support" and inserting in lieu thereof "child and spousal support". (b)(1) Section 452(a) of such Act is amended— 42 USC 652. (A) in paragraph (1), by inserting "and support for the spouse (or former spouse) with whom the absent parent's child is living" after "child support"; (B) in paragraph (7), by inserting "and spousal" after "child"; and (C) in paragraph (10)(C), by inserting "(with separate identification of the number in which collection of spousal support was involved)" after "child support cases". (2) Section 452(b) of such Act is amended— (A) by inserting ", including any support obligation with respect to the parent who is living with the child and receiving aid under the State plan approved under part A," after "assigned 42 USC 601. to the State" in the first sentence; (B) by striking out "court order" in the second sentence and inserting in lieu thereof "court or administrative order"; and (C) by striking out "United States" in the second sentence and inserting in lieu thereof "Secretary of the Treasury"; and (D) by inserting immediately after the second sentence the following new sentence: "All reimbursements shall be credited to the appropriation accounts which bore all or part of the costs involved in making the collections.".

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 95 STAT. 862 42 USC 653. 42 USC 654.

42 USC 657.

42 USC 660.

PUBLIC LAW 97-35-AUG. 13, 1981 (c) Section 453(c)(1) of such Act is amended by striking out "child support" and inserting in lieu thereof "child and spousal support". (d) Section 454 of such Act is amended— (1) by striking out "CHILD SUPPORT" in the heading and inserting in lieu thereof "CHILD AND SPOUSAL SUPPORT"; (2) by striking out "child support" in the matter preceding paragraph (1) and inserting in lieu thereof "child and spousal support; (3) in paragraph (4)(B), by striking out the comma immediately following the first parenthetical phrase and inserting in lieu thereof "and, at the option of the State, from such parent for his spouse (or former spouse) receiving aid to families with dependent children (but only if a support obligation has been established with respect to such spouse),'; (4) in paragraph (5), by striking out "child support payments" and inserting in lieu thereof "support payments and by striking out "collected for a child" and inserting in lieu thereof collected for an individual"; (5) in paragraph (9)(C), by striking out "of a child or children" and inserting in lieu thereof "of the child or children or the parent of such child or children"; (6) in paragraph (11), by striking out "child"; and (7) in paragraph (16), by striking out "child" each place it appears. (e) Section 457 of such Act is amended— (1) by striking out "child" in the portion of subsection (b) that precedes paragraph (1); and (2) by striking out "child" each place it appears in subsection (c). (f) The heading of section 460 of such Act is amended by striking out "CHILD".

26 USC 6305.

(g) Section 6305(a)(4) of the Internal Revenue Code of 1954, (relating to collection of certain liability) is amended by striking out "court order" and inserting in lieu thereof "court or administrative order". COST OF COLLECTION AND OTHER SERVICES FOR NON-AFDC FAMILIES

42 USC 654.

SEC. 2333. (a) Section 454(6) of the Social Security Act is amended— (1) by striking out "such services" in clause (B) and inserting in lieu thereof "services under the State plan (other than collection of support)"; and (2) by amending clause (C) to read as follows: "(C) the State will retain, but only if it is the State which makes the collection, the fee imposed under State law as required under paragraph (19);". (b) Section 454 of such Act (as amended by section 2331(b) of this Act) is further amended— (1) by striking out "and" at the end of paragraph (17); (2) by striking out the period at the end of paragraph (18) and inserting in lieu thereof "; and"; and (3) by adding at the end thereof the following new paragraph: "(19) provide that a fee shall be imposed on the individual who owes a child or spousal support obligation, in accordance with State law, with respect to all such child and spousal support obligations for which collection is made by the State agency under this part on behalf of an individual not otherwise eligible for collection services (as determined for purposes of paragraph (6)) in an amount equal to 10 percent of the amount so owed (and for purposes of this part, no part of the amount collected shall be

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Page:United States Statutes at Large Volume 95.djvu/889

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 863

considered to be a fee collected except amounts which exceed the actual amount of support owed).", (c) Section 453(a) of such Act is amended by adding at the end 42 USC 653. thereof the following new sentence: "In determining the total amounts expended by any State during a quarter, for purposes of this subsection, there shall be excluded an amount equal to the total of any fees collected or other income resulting from services provided under the plan approved under this part.". CHILD SUPPORT OBLIGATIONS NOT DISCHARGED BY BANKRUPTCY

SEC. 2334. (a) Section 456 of the Social Security Act is amended by adding at the end thereof the following new subsection: "(b) A debt which is a child support obligation assigned to a State under section 402(a)(26) is not released by a discharge in bankruptcy under title 11, United States Code.". (b) Section 523(a)(5)(A) of title 11, United States Code, is amended by inserting before the semicolon the following: "(other than debts assigned pursuant to section 402(a)(26) of the Social Security Act)". (c) The amendments made by this section shall become effective on the date of the enactment of this Act.

42 USC 656. 42 USC 602.

Effective date. ^2 USC 656 note.

CHILD SUPPORT INTERCEPT OF UNEMPLOYMENT BENEFITS

SEC. 2335. (a) Section 454 of the Social Security Act (as amended by section 2333(b) of this Act) is amended by strimng out "and" at the end of paragraph (18), by striking out the period at the end of paragraph (19) and inserting in lieu thereof "; and", and by adding at the end thereof the following new paragraph: "(20) provide that the agency administering the plan— "(A) shall determine on a periodic basis,frominformation supplied pursuant to section 508 of the Unemployment Compensation Amendments of 1976, whether any individ- 29 USC 49b. uals receiving compensation under the State's unemploy- ^^ ^^^ ^^^^ ment compensation law (including amounts payable pursuant to any agreement under any Federal unemployment compensation law) owe child support obligations which are being enforced by such agency, and "(B) shall enforce any such child support obligations which are owed by such an individual but are not being met— "(i) through an agreement with such individual to have specified amounts withheld from compensation otherwise payable to such individual and by submitting a cop^ of any such agreement to the State agency administering the unemployment compensation law, or "(ii) in the absence of such an agreement, by bringing legal process (as defined in section 462(e) of this Act) to 42 USC 662. require the withholding of amountsfromsuch compensation.". (b)(1) Subsection (e) of section 303 of the Social Security Act is 42 USC 503. amended by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively, and by inserting after paragraph (1) the following new paragraph: "(2)(A) The State agency charged with the administration of the State law— "(i) shall require each new applicant for unemployment compensation to disclose whether or not such applicant owes child

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Page:United States Statutes at Large Volume 95.djvu/890

 95 STAT. 864

Ante, p. 863.

42 USC 662.

' 'Unemployment compensation."

Ante, p. 863.

Effective date. 42 USC 503 note.

PUBLIC LAW 97-35—AUG. 13, 1981 support obligatons (as defined in the last sentence of this subsection), "(ii) shall notify the State or local child support enforcement agency enforcing such obligations, if any applicant discloses under clause (i) that he owes child support obligations and he is determined to be eligible for unemployment compensation, that such applicant has been so determined to be eligible, "(iii) shall deduct and withhold from any unemployment compensation otherwise payable to an individual— "(I) the amount specified by the individual to the State agency to be deducted and withheld under this clause, "(11) the amount (if any) determined pursuant to an agreement submitted to the State agency under section 454(20)(B)(i) of this Act, or "(III) any amount otherwise required to be so deducted and withheld from such unemployment compensation through legal process (as defined in section 462(e)), and "(iv) shall pay any amount deducted and withheld under clause (iii) to the appropriate State or local child support enforcement agency. Any amount deducted and withheld under clause (iii) shall for all purposes be treated as if it were paid to the individual as unemployment compensation and paid by such individual to the State or local child support enforcement agency in satisfaction of his child support obligations. "(B) For purposes of this paragraph, the term 'unemployment compensation' means any compensation payable under the State law (including amounts payable pursuant to agreements under any Federal unemployment compensation law). "(C) Each State or local child support enforcement agency shall reimburse the State agency charged with the administration of the State unemployment compensation law for the administrative costs incurred by such State agency under this paragraph which are attributable to child support obligations being enforced by the State or local child support enforcement agency.". (2) Paragraph (3) of section 303(e) of such Act (as redesignated by paragraph (1)) is amended by striking out "paragraph (1)" and inserting in lieu thereof "paragraph (1) or (2)". (3) The last sentence of paragraph (1) of such section 303(e) is amended by striking out "the preceding sentence" and inserting in lieu thereof "this subsection". (c) The amendments made by this section shall take effect on the date of the enactment of this Act, except that such amendments shall not be requirements under section 454 or 303 of the Social Security Act before October 1, 1982. EFFECTIVE DATE

42 USC 651 note.

42 USC 651.

SEC. 2336. (a) Except as otherwise specifically provided in the preceding sections of this chapter or in subsection (b), the provisions of this chapter and the amendments and repeals made by this chapter shall become effective on October 1, 1981. (b) If a State agency administering a plan approved under part D of title IV of the Social Security Act demonstrates, to the satisfaction of the Secretary of Health and Human Services, that it cannot, by reason of State law, comply with the requirements of an amendment made by this chapter to which the effective date specified in subsection (a) applies, the Secretary may prescribe that, in the case of such

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 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 865

State, the amendment will become effective beginning with the first month beginning after the close of the first session of such State's legislature ending on or after October 1, 1981. For purposes of the preceding sentence, the term "session of a State's legislature" includes any regular, special, budget, or other session of a State legislature.

Subtitle B—Supplemental Security Income Benefits RETROSPECTIVE ACCOUNTING

SEC. 2341. (a) Section 1611(c) of the Social Security Act is amended to read as follows: "(c)(1) An individual's eligibility for a benefit under this title for a month shall be determined on the basis of the individual's (and eligible spouse's, if any) income, resources, and other relevant characteristics in such month, and, except as provided in paragraph (2), the amount of such benefit shall be determined for such month on the basis of income and other characteristics in the first or, if the Secretary so determines, second month preceding such month. Eligibility for and the amount of such benefits shall be redetermined at such time or times as may be provided by the Secretary. "(2) The amount of such benefit for the month in which application for such benefits is filed or, if the Secretary so determines, for such month and the following month, and for any month following a month of ineligibility for such benefits (or, if the Secretary so determines, such month and the following month) shall be determined on the basis of the individual's (and eligible spouse's, if any) income and other relevant circumstances in such month. "(3) For purposes of this subsection, an application shall be effective as of the first day of the month in which it is filed. "(4) The Secretary may waive the limitations specified in subparagraphs (A) and (B) of subsection (e)(1) on an individual's eligibility and benefit amount for a month (to the extent either such limitation is applicable by reason of such individual's presence throughout such month in a hospital, extended care facility, nursing home, or intermediate care facility) if such waiver would promote the individual's removal from such institution or facility. Upon waiver of such limitations, the Secretary shall apply, to the month preceding the month of removal, or, if the Secretary so determines, the two months preceding the month of removal, the benefit rate that is appropriate to such individual's living arrangement subsequent to his removal from such institution or facility.". (b) Section 1612(b)(3) of such Act is amended— (1) by striking out "calendar quarter" each place it appears and inserting in lieu thereof "month"; (2) by striking out "such quarter" each place it appears and inserting in lieu thereof "such month"; (3) by striking out "$60" and inserting in lieu thereof "$20"; and (4) by striking out "$30" and inserting in lieu thereof "$10". (c)(1) "The amendments made by this section shall be effective with respect to months after the first calendar quarter which ends more than five months after the month in which this Act is enacted. (2) The Secretary of Health and Human Services may, under conditions determined by him to be necessary and appropriate, make a transitional payment or payments during the first two months for which the amendments made by this section are effective. A transi-

42 USC 1382.

Limitations waiver.

42 USC 1382a.

Effective date. 42 USC 1382 note. Transitional payments.

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Page:United States Statutes at Large Volume 95.djvu/892

 95 STAT. 866

PUBLIC LAW 97-35—AUG. 13, 1981 tional payment made under this section shall be deemed to be a payment of supplemental security income benefits. ELIGIBILITY OF SSI RECIPIENTS FOR FOOD STAMPS

42 USC 1382e note.

42 USC 1382e.

42 USC 1382g.

Effective date. 42 USC 1382e note.

SEC. 2342. (a) Section 8(d) of Public Law 93-233 is amended to read as follows: "(d) Upon the request of a State, the Secretary shall find, for purposes of the provisions specified in subsection (c), that the level of such State's supplementary payments of the type described in section 1616(a) of the Social Security Act has been specifically increased for any month so as to include the bonus value of food stamps (and that such State meets the applicable requirements of subsection (c)(1)) if— "(1) the Secretary has found (under this subsection or subsection (c), as in effect in December 1980) that such State's supplementary payments in December 1980 were increased to include the bonus value of food stamps; and "(2) such State continues without interruption to meet the requirements of section 1618 of such Act for each month after the month referred to in paragraph (1) and up to and including the month for which the Secretary is making the determination.". (b) The amendment made by subsection (a) shall become effective July 1, 1981. P A Y M E N T TO STATES WITH RESPECT TO CERTAIN UNNEGOTIATED CHECKS

42 USC 1383.

SEC. 2343. (a) Section 1631 of the Social Security Act is amended by adding at the end thereof the following new subsection: "Payment to States With Respect to Certain Unnegotiated Checks

42 USC 1382e. 87 Stat. 155.

Investigation.

Effective date. 42 USC 1383 note.

"(i)(1) The Secretary of the Treasury shall, on a monthly basis, notify the Secretary of all benefit checks issued under this title which include amounts representing State supplementary payments as described in paragraph (2) and which have not been presented for payment within one hundred and eighty days after the day on which they were issued. "(2) The Secretary shall from time to time determine the amount representing the total of the State supplementary payments made pursuant to agreements under section 1616(a) of this Act and under section 212(b) of Public Law 93-66 which is included in all checks payable to individuals entitled to benefits under this title but not presented for payment within one hundred and eighty days after the day on which they were issued, and shall pay each State (or credit each State with) an amount equal to that State's share of all such amount. Amounts not paid to the States shall be returned to the appropriation from which they were originally paid. "(3) The Secretary, upon notice from the Secretary of the Treasury under paragraph (1), shall notify any State having an agreement described in paragraph (2) of all such benefit checks issued under that State's agreement which were not presented for payment within one hundred and eighty days after the day on which they were issued. "(4) The Secretary shall, to the maximum extent feasible, investigate the whereabouts and eligibility of the individuals whose benefit checks were not presented for payment within one hundred and eighty days after the day on which they were issued.". (b) The amendment made by subsection (a) shall become effective October 1, 1982.

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Page:United States Statutes at Large Volume 95.djvu/893

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 867

FUNDING OF REHABILITATION SERVICES FOR SSI RECIPIENTS

SEC. 2344. Effective October 1, 1981, section 1615(d) of the Social 42 USC I382d. Security Act is amended— (1) by striking out "is authorized to pay to" and inserting in lieu thereof "is authorized to reimburse'; (2) by inserting "for" before "the costs incurred"; and (3) by striking out "individuals referred for such services pursuant to subsection (a)" and inserting in lieu thereof "individuals who are referred for such services pursuant to subsection (a) if such services result in their performance of substantial gainful activity which lasts for a continuous period of nine months. The determination of the amount of costs to be reimbursed under this subsection shall be made by the Commissioner of Social Security in accordance with criteria determined by him in the same manner as under section 222(d)(1)". 42 USC 422.

Subtitle C—Block Grants for Social Services

Block Grant Act.
 * ?"?^^^'^T?.

SHORT TITLE

SEC. 2351. This subtitle may be cited as the "Social Services Block 42 USC 1305 Grant Act". "°teTITLE XX BLOCK GRANTS

SEC. 2352. (a) Title XX of the Social Security Act is amended to read as follows: "TITLE XX—BLOCK GRANTS TO STATES FOR SOCIAL SERVICES " P U R P O S E S OF TITLE; AUTHORIZATION OF APPROPRIATIONS

"SEC. 2001. For the purposes of consolidating Federal assistance to 42 USC 1397. States for social services into a single grant, increasing State flexibility in using social service grants, and encouraging each State, as far as practicable under the conditions in that State, to furnish services directed at the goals of— "(1) achieving or maintaining economic self-support to prevent, reduce, or eliminate dependency; "(2) achieving or maintaining self-sufficiency, including reduction or prevention of dependency; "(3) preventing or remedying neglect, abuse, or exploitation of children and adults unable to protect their own interests, or preserving, rehabilitating or reuniting families; "(4) preventing or reducing inappropriate institutional care by providing for community-based care, home-based care, or other forms of less intensive care; and "(5) securing referral or admission for institutional care when other forms of care are not appropriate, or providing services to individuals in institutions, there are authorized to be appropriated for each fiscal year such sums as may be necessary to carry out the purposes of this title. "PAYMENTS TO STATES

"SEC. 2002. (a)(1) Each State shall be entitled to payment under this 42 USC 1397a. title for each fiscal year in an amount equal to its allotment for such

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Page:United States Statutes at Large Volume 95.djvu/894

 95 STAT. 868

Services.

Expenditures.

26 USC 501.

Technical assistance.

PUBLIC LAW 97-35—AUG. 13, 1981 fiscal year, to be used by such State for services directed at the goals set forth in section 2001, subject to the requirements of this title. "(2) For purposes of paragraph (1)— "(A) services which are directed at the goals set forth in section 2001 include, but are not limited to, child care services, protective services for children and adults, services for children and adults in foster care, services related to the management and maintenance of the home, day care services for adults, transportation services, family planning services, training and related services, employment services, information, referral, and counseling services, the preparation and delivery of meals, health support services and appropriate combinations of services designed to meet the special needs of children, the aged, the mentally retarded, the blind, the emotionally disturbed, the physically handicapped, and alcoholics and drug addicts; and "(B) expenditures for such services may include expenditures for— "(i) administration (including planning and evaluation); "(ii) personnel training and retraining directly related to the provision of those services (including both short- and long-term training at educational institutions through grants to such institutions or by direct financial assistance to students enrolled in such institutions); and "(iii) conferences or workshops, and training or retraining through grants to nonprofit organizations within the meaning of section 501(c)(3) of the Internal Revenue Code of 1954 or to individuals with social services expertise, or through financial assistance to individuals participating in such conferences, workshops, and training or retraining (and this clause shall apply with respect to all persons involved in the delivery of such services). "(b) The Secretary shall make payments in accordance with section 203 of the Intergovernmental Cooperation Act of 1968 (42 U.S.C. 4213) to each State from its allotment for use under this title. "(c) Payments to a State from its allotment for any fiscal year must be expended by the State in such fiscal year or in the succeeding fiscal year. "(d) A State may transfer up to 10 percent of its allotment under section 2003 for any fiscal year for its use for that year under other provisions of Federal law providing block grants for support of health services, health promotion and disease prevention activities, or lowincome home energy assistance (or any combination of those activities). Amounts allotted to a State under any provisions of Federal law referred to in the preceding sentence and transferred by a State for use in carrying out the purposes of this title shall be treated as if they were paid to the State under this title but shall not affect the computation of the State's allotment under this title. The State shall inform the Secretary of any such transfer of funds. "(e) A State may use a portion of the amounts described in subsection (a) for the purpose of purchasing technical assistance from public or private entities if the State determines that such assistance is required in developing, implementing, or administering programs funded under this title. "ALLOTMENTS

42 USC 1397b.

"SEC. 2003. (a) The allotment for any fiscal year to each of the jurisdictions of Puerto Rico, Guam, the Virgin Islands, and the Northern Mariana Islands shall be an amount which bears the same

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Page:United States Statutes at Large Volume 95.djvu/895

 PUBLIC LAW 97-35—AUG. 13, 1981 ratio to the amount specified in subsection (c) as the amount which was specified for allocation to the particular jurisdiction involved for the fiscal year 1981 under section 2002(a)(2)(C) of this Act (as in effect prior to the enactment of this section) bore to $2,900,000,000. "0^) The allotment for any fiscal year for each State other than the jurisdictions of Puerto Rico, Guam, the Virgin Islands, and the Northern Mariana Islands shall be an amount which bears the same ratio to— "(1) the amount specified in subsection (c), reduced by "(2) the total amount allotted to those jurisdictions for that fiscal year under subsection (a), as the population of that State bears to the population of all the States as determined by the Secretary (on the basis of the most recent data available from the Department of Commerce) and promulgated (subject to subsection (d)) prior to the first day of the third month of the preceding fiscal year. "(c) The amount specified for purposes of subsections (a) and (b) shall be— "(1) $2,400,000,000 for the fiscal year 1982; "(2) $2,450,000,000 for the fiscal year 1983; "(3) $2,500,000,000 for the fiscal year 1984; "(4) $2,600,000,000 for the fiscal year 1985; and "(5) $2,700,000,000 for the fiscal year 1986 or any succeeding fiscal year. "(d) The determination and promulgation required by subsection (b) with respect to the fiscal year 1982 shall be made as soon as possible after the enactment of the Omnibus Budget Reconciliation Act of 1981.

95 STAT. 869

94 Stat. 525. 42 USC 1397a.

Ante, p. 357.

"STATE ADMINISTRATION

"SEC. 2004. Prior to expenditure by a State of payments made to it under section 2002 for any fiscal year, the State shall report on the intended use of the payments the State is to receive under this title, including information on the types of activities to be supported and the categories or characteristics of individuals to be served. The report shall be transmitted to the Secretary and made public within the State in such manner as to facilitate comment by any person (including any Federal or other public agency) during development of the report and after its completion. The report shall be revised throughout the year as may be necessary to reflect substantial changes in the activities assisted under this title, and any revision shall be subject to the requirements of the previous sentence.

Public report. 42 USC 1397c.

LIMITATIONS ON USE OF GRANTS

"SEC. 2005. (a) Except as provided in subsection Ob), grants made 42 USC I397d. under this title may not be used by the State, or by any other person with which the State makes arrangements to carry out the purposes of this title— "(1) for the purchase or improvement of land, or the purchase, construction, or permanent improvement (other than minor remodeling) of any building or other facility; "(2) for the provision of cash payments for costs of subsistence or for the provision of room and board (other than costs of subsistence during rehabilitation, room and board provided for a short term as an integral but subordinate part of a social service, or temporary emergency shelter provided as a protective service);

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Page:United States Statutes at Large Volume 95.djvu/896

 95 STAT. 870

Waiver.

PUBLIC LAW 97-35—AUG. 13, 1981 "(3) for payment of the wages of any individual as a social service (other than payment of the wages of welfare recipients employed in the provision of child day care services); "(4) for the provision of medical care (other than family planning services, rehabilitation services, or initial detoxification of an alcoholic or drug dependent individual) unless it is an integral but subordinate part of a social service for which grants may be used under this title; "(5) for social services (except services to an alcoholic or drug dependent individual or rehabilitation services) provided in and by employees of any hospital, skilled nursing facility, intermediate care facility, or prison, to any individual living in such institution; "(6) for the provision of any educational service which the State makes generally available to its residents without cost and without regard to their income; "(7) for any child day care services unless such services meet applicable standards of State and local law; or "(8) for the provision of cash payments as a service (except as otherwise provided in this section). "(b) The Secretary may waive the limitation contained in subsection (a)(1) and (4) upon the State's request for such a waiver if he finds that the request describes extraordinary circumstances to justify the waiver and that permitting the waiver will contribute to the State's ability to carry out the purposes of this title. REPORTS AND AUDITS

42 USC 1397e.

Copies.

Unexpended funds.

"SEC. 2006. (a) Each State shall prepare reports on its activities carried out with funds made available (or transferred for use) under this title. Reports shall be in such form, contain such information, and be of such frequency (but not less often than every two years) as the State finds necessary to provide an accurate description of such activities, to secure a complete record of the purposes for which funds were spent, and to determine the extent to which funds were spent in a manner consistent with the reports required by section 2004. The State shall make copies of the reports required by this section available for public inspection within the State and shall transmit a copy to the Secretary. Copies shall also be provided, upon request, to any interested public agency, and each such agency may provide its views on these reports to the Congress. "(b) Each State shall, not less often than every two years, audit its expenditures from amounts received (or transferred for use) under this title. Such State audits shall be conducted by an entity independent of any agency administering activities funded under this title, in accordance with generally accepted auditing principles. Within 30 days following the completion of each audit, the State shall submit a copy of that audit to the legislature of the State and to the Secretary. Each State shall repay to the United States amounts ultimately found not to have been expended in accordance with this title, or the Secretary may offset such amounts against any other amount to which the State is or may become entitled under this title. "(c) For other provisions requiring States to account for Federal grants, see section 202 of the Intergovernmental Cooperation Act of 1968 (42 U.S.C. 4212).

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Page:United States Statutes at Large Volume 95.djvu/897

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 871

CHILD DAY CARE SERVICES

"SEC. 2007. (a) Subject to subsection (b), sums granted by a State to a qualified provider of child day care services (as defined in subsection (c)) to assist such provider in meeting its work incentive program expenses (as defined in subsection (c)) with respect to individuals employed in jobs related to the provision of child day care services in one or more child day care facilities of such provider, shall be deemed for purposes of section 2002 to constitute expenditures made by the State in accordance with the provisions of this title for the provision of child day care services. "(b) The provisions of subsection (a) shall not be applicable with respect to any grant made to a particular qualified provider of child day care services to the extent that (as determined by the Secretary) such grant is or will be used to pay wages to any employee at an annual rate in excess of $6,000, in the case of a public or nonprofit private provider, or at an annual rate in excess of $5,000, or to pay more than 80 percent of the wages of any employee, in the case of any other provider. "(c) For purposes of this subsection— "(1) the term 'qualified provider of child day care services', when used in reference to a recipient of a grant by a State, includes a provider of such services only if, of the total number of children receiving such services from such provider in the facility with respect to which the grant is made, at least 20 percent thereof have some or all of the costs for the child day care services so furnished to them by such provider paid for under a program conducted pursuant to this title; and "(2) the term 'work incentive program expenses' means expenses of a qualified provider of child day care services which constitute work incentive program expenses as defined in section 50B(a)(l) of the Internal Revenue Code of 1954, or which would constitute work incentive program expenses as so defined if the provider were a taxpayer entitled to a credit (with respect to the wages involved) under section 40 of such Code.". (b) Section 1101(a)(1) of such Act is amended by adding at the end thereof the following new sentence: "Such term when used in title XX also includes the Virgin Islands, American Samoa, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands.".

Grants to qualified provider. 42 USC 1397f.

Definitions.

26 USC SOB.

26 USC 40. 42 USC 1301. Ante, p. 867.

CONFORMING AMENDMENTS TO THE SOCIAL SECURITY ACT

SEC. 2353. (a)(1) Section 3(a) of the Social Security Act is amended— (A) by amending paragraph (4) to read as follows: "(4) in the case of any State, an amount equal to the sum of the following proportions of the total amounts expended during such quarter as found necessary by the Secretary of Health and Human Services for the proper and efficient administration of the State plan— "(A) 75 per centum of so much of such expenditures as are for the training (including both short- and long-term training at educational institutions through grants to such institutions or by direct financial assistance to students enrolled in such institutions) of personnel employed or preparing for employment by the State agency or by the local agency administering the plan in the political subdivision; plus "(B) one-half of the remainder of such expenditures."; and (B) by striking out paragraph (5).

-194 0—82

57: QL3

42 USC 303.

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 95 STAT. 872 42 USC 303. 42 USC 602 note.

PUBLIC LAW 97-35—AUG. 13, 1981

(2) Section 3(c) of such Act is repealed. (b)(1) Sections 402(a)(5), 402(a)(13), 402(a)(14), 402(a)(15) 403(a)(3), 403(e), and 406(d) of such Act as in effect with respect to Puerto Rico, Guam, and the Virgin Islands are repealed. 42 USC 602 note. (2) Sections 402(a)(5), 402(a)(15), and 403(a)(3) of such Act as they apply to the fifty States and the District of Columbia shall be applicable to Puerto Rico, Guam, and the Virgin Islands. 42 USC 603 note. (3) Section 248(b) of the Social Security Amendments of 1967 (Public Law 90-248) is repealed. 42 USC 602. (c) Section 402(a)(15) of such Act is amended— (1) by striking out "as part of the program of the State for the provision of services under title XX"; and (2) by striking out "or clause (14)". 42 USC 603. (d) Section 403(a)(3) of such Act is amended by striking out "service described in section 2002(a)(l)" and inserting in lieu thereof "service described in section 2002(a)". 42 USC 1203. (e)(1) Section 1003(a) of such Act is amended— (A) by amending paragraph (3) to read as follows: "(3) in the case of any State, an amount equal to the sum of the following proportions of the total amounts expended during such quarter as found necessary by the Secretary of Health and Human Services for the proper and efficient administration of the State plan— "(A) 75 per centum of so much of such expenditures as are for the training (including both short- and long-term training at educational institutions through grants to such institutions or by direct financial assistance to students enrolled in such institutions) of personnel employed or preparing for employment by the State agency or by the local agency administering the plan in the political subdivision; plus "(B) one-half of the remainder of such expenditures."; and (B) by striking out paragraph (4). (2) Section 1003(c) of such Act is repealed. 42 USC 1308. (f) Section 1108(a) of such Act is amended in the matter preceding paragraph (1) to read as follows: "(a) The total amount certified by the Secretary of Health and Human Services under titles I, X, XlV, and XVI, and under parts A 42 USC 301, and E of title IV (exclusive of any amounts on account of services and 601^670^^' ^^^^' i*®"^s *° which subsection (b) applies)—". 94 Stat. 501. fe) Section 1115(a) of such Act is amended— 42 USC 1315. (1) in the matter preceding paragraph (1), by striking out "XIX, or XX" and inserting in lieu thereof "or XIX"; (2) in paragraph (1), by striking out "1902, 2002, 2003, or 2004" and inserting in lieu thereof "or 1902"; and (3) in paragraph (2)— (A) by striking out "1903, or 2002" and inserting in lieu thereof "or 1903^ and (B) by striking out "or expenditures with respect to which payment shall be made under section 2002,". 42 USC 1316. (h) Section 1116 of such Act is amended— (1) in subsections (a)(1) and 0)), by striking out "XIX, or XX" and inserting in lieu thereof "or XIX"; (2) in subsection (a)(3), by striking out "1904, or 2003" and inserting in lieu thereof "or 1904"; and (3) in subsection (d), by striking out "XIX, XX" and inserting in lieu thereof "or XIX". 42 USC i320a-3. (i) Section 1124(a) of such Act is amended—

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Page:United States Statutes at Large Volume 95.djvu/899

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 873

(1) in paragraph (1), by striking out "XIX and XX" each place it appears and inserting in lieu thereof "and XIX"; and (2) in paragraph (2)— (A) by inserting "or" after the semicolon at the end of subparagraph (B); (B) by striking out "; or" at the end of subparagraph (C) and inserting in lieu thereof a period; and (C) by striking out subparagraph (D). (j) Section 1126(a) of such Act is amended by striking out "XIX, and XX" and inserting in lieu thereof "and XIX". (k) Section 1128(a) of such Act is amended— (1) in paragraph (2)(A), by striking out "or title XX,"; and (2) in paragraph (2)(B), by striking out "or title XX". (IXD Section 1403(a) of such Act is amended— (A) by amending paragraph (3) to read as follows: "(3) in the case of any State, an amount equal to the sum of the following proportions of the total amounts expended during such quarter as found necessary by the Secretary of Health and Human Services for the proper and official administration of the State plan— "(A) 75 per centum of so much of such expenditures as are for the training (including both short- and long-term training at educational institutions through grants to such institutions or by direct financial assistance to students enrolled in such institutions) of personnel employed or preparing for employment by the State agency or by the local agency administering the plan in the political subdivision; plus "(B) one-half of the remainder of such expenditures."; and (B) by striking out paragraph (4). (2) Section 1403(c) of such Act is repealed. (m)(l) Section 1601 of such Act is amended— (A) by inserting "and" before "(b)" the first time it appears; and (B) by striking out "and (c)" and all that follows through "selfcare,". (2) Section 1603(a) of such Act is amended— (A) by inserting "and" after the semicolon at the end of paragraph (2)(B); (B) by amending paragraph (4) to read as follows: "(4) in the case of any State, an amount equal to the sum of the following proportions of the total amounts expended during such quarter as found necessary by the Secretary of Health and Human Services for the proper and efficient administration of the State plan— "(A) 75 per centum of so much of such expenditures as are for the training (including both short- and long-term training at educational institutions through grants to such institutions or by direct financial assistance to students enrolled in such institutions) of personnel employed or preparing for employment by the State agency or by the local agency administering the plan in the political subdivision: plus "(B) one-half of the remainder of such expenditures.; and (C) by striking out paragraph (5). (3) Section 1603(c) of such Act is repealed. (n) Section 1616(e)(2) of such Act is amended by striking out ", as a part of the services program planning procedures established pursuant to section 2004 of this Act,'. (o) Section 1619 of such Act is amended—

42 USC 1320a-5. 94 Stat. 2619. 42 USC 1320a-7. 42 USC 1353.

42 USC 1381 note.

42 USC 1383 note.

42 USC 1382e. 94 Stat. 445. 42 USC 1382h.

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Page:United States Statutes at Large Volume 95.djvu/900

 95 STAT. 874

94 Stat. 446. 42 USC 13821. 42 USC 607. Ante, p. 846.

42 USC 671.

42 USC 1397a note.

PUBLIC LAW 97-35—AUG. 13, 1981 (1) by striking out "titles XIX and XX" each place it appears and inserting in lieu thereof "title XIX", and (2) by striking out "title XIX or XX" and inserting in lieu thereof "title XIX". (p) Section 1620(c) of such Act is amended by striking out the matter following the end of paragraph (7). (q) Section 407(d)(1) of such Act is amended by striking out "a community work and training program under section 409 or any other work and training program subject to the limitations in section 409, or" and inserting in lieu thereof "a community work experience program under section 409, or". (r) Section 471(a)(10) of such Act is amended by striking out "standards referred to in section 2003(d)(l)(F)" and inserting in lieu thereof "standards in effect in the State with respect to child day care services under title XX". (s) Section 3(f) of the Social Security Amendments of 1974 (Public Law 93-647) is repealed. EFFECTIVE DATE

42 USC 1397 note.

SEC. 2354. Except as otherwise explicitly provided, the provisions of this subtitle, and the repeals and amendments made by this subtitle, shall become effective on October 1, 1981. STUDY OF STATE SOCIAL SERVICE PROGRAMS

42 USC 1397 note.

Ante, p. 867.

Report to Congress.

SEC. 2355. The Secretary of Health and Human Services shall conduct a study to identify criteria and mechanisms which may be useful for the States in assessing the effectiveness and efficiency of the State social service programs carried out with funds made available under title XX of the Social Security Act. The study shall include consideration of Federal incentive payments as an option in rewarding States having high performance social service programs. The Secretary shall report the results of such study to the Congress within one year after the date of the enactment of this Act.

TITLE XXIV—UNEMPLOYMENT COMPENSATION EUMINATION OF NATIONAL TRIGGER

SEC. 2401. (a) GENERAL RULE.—Paragraphs (1) and (2) of section 26 USC 3304 note.

203(a) of the Federal-State Extended Unemployment Compensation Act of 1970 are amended to read as follows: "(1) shall begin with the third week after the first week for which there is a State 'on' indicator; and "(2) shall end with the third week after the first week for which there is a State 'off indicator.". (b) TECHNICAL AMENDMENTS.—

(1) Section 203 of such Act is amended by striking out subsection (d) and by redesignating subsections (e) and (f) as subsections (d) and (e), respectively. (2) Subparagraph (B) of section 203(b)(1) of such Act is amended by striking out "by reason of a State 'on' indicator". (3) Paragraph (2) of section 2030b) of such Act is amended by striking out "(or all the States)". (4) Subsection (e) of section 203 of such Act (as redesignated by paragraph (D) is amended—

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Page:United States Statutes at Large Volume 95.djvu/901

 PUBLIC LAW 97-35—AUG. 13, 1981 (A) by striking out "subsections (d) and (e)" in paragraph (1) and inserting in lieu thereof "subsection (d)", (B) by striking out "all State agencies (or, in the case of subsection (e), by the State agency)" in paragraph (1)(A) and inserting in lieu thereof "the State agency", and (C) by striking out paragraphs (2) and (3) andinserting in lieu thereof the following: "(2) Determinations under subsection (d) shall be made by the State agency in accordance with regulations prescribed by the Secretary.". (5) Subsection (a) of section 204 of such Act is amended— (A) by striking out paragraph (3), and (B) by redesignating paragraph (4) as paragraph (3). (c) EFFECTIVE DATES.—The amendments made by this section shall apply to weeks beginning after the date of the enactment of this Act.

95 STAT. 875

26 USC 3304 note. 26 USC 3304 note.

CLAIMS FOR EXTENDED OR ADDITIONAL COMPENSATION NOT INCLUDED IN DETERMINING RATE OF INSURED UNEMPLOYMENT SEC. 2402. (a) GENERAL RULE.—Subparagraph (A) of section

203(e)(1) of the Federal-State Extended tJnemployment Compensation Act of 1970 (as redesignated by section 2401(b)(1) of this Act) is amended by striking out "individuals filing claims" and inserting in lieu thereof "individuals filing claims for regular compensation". (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall applv for purposes of determining whether there are State "on" or "off indicators for weeks beginning after the date of the enactment of this Act. For purposes of making such determinations for such weeks, such amendment shall be deemed to be in effect for all weeks whether beginning before, on, or after such date of enactment.

26 USC 3304 note. 26 USC 3304 note.

CHANGE IN STATE TRIGGER FOR EXTENDED COMPENSATION SEC. 2403. (a) GENERAL RULE.—Subsection (d) of section 203 of the

Federal-State Extended Unemployment Compensation Act of 1970 (as redesignated by section 2401(b)(1) of this Act) is amended— (1) in paragraph (1)(B), by striking out "4" and inserting in lieu thereof "5"; and (2) in the matter following paragraph (2), by striking out "the figure '4' contained in subparagraph (B) thereof were '5"' and inserting in lieu thereof "the figure *5' contained in subparagraph (B) thereof were '6"'. (b) EFFECTIVE DATE.—The amendments made by subsection (a) 26 USC 3304 note. shall apply to weeks beginning after September 25, 1982. QUALIFYING REQUIREMENT FOR EXTENDED COMPENSATION SEC. 2404. (a) GENERAL RULE.—Subsection (a) of section 202 of the

Federal-State Extended Unemployment Compensation Act of 1970 is 26 USC 3304 amended by redesignating paragraph (5) as paragraph (6) and insert- note. ing after paragraph (4) the following: "(5) Notwithstanding the provisions of paragraph (2), an individual shall not be eligible for extended compensation unless, in the base period with respect to which the individual exhausted all rights to regular compensation under the State law, the individual had 20 weeks of full-time insured employment, or the equivalent in insured wages. For purposes of this paragraph, the equivalent in insured wages shall be earnings covered by the State law for compensation purposes which exceed 40 times the

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Page:United States Statutes at Large Volume 95.djvu/902

 95 STAT. 876

26 USC 3304 note.

26 USC 3304 "°^®

PUBLIC LAW 97-35—AUG. 13, 1981 individual's most recent weekly benefit amount or 1 ^ times the individual's insured wages in that calendar quarter of the base period in which the individual's insured wages were the highest (or one such quarter if his wages were the same for more than one such quarter). The State shall by law provide which one of the foregoing methods of measuring employment and earnings shall be used in that State.". (b) CONFORMING AMENDMENT.—Section 202(a)(6) of such Act (as redesignated bjj subsection (a)) is amended— (1) by striking out "paragraphs (3) and (4)" and inserting in lieu thereof "paragraphs (3), (4), and (5)"; and (2) by inserting "extended compensation or" before "sharable regular compensation". (c) EFFECTIVE DATE.—The amendments made by this section shall apply with respect to extended compensation and sharable regular compensation payable for weeks which begin after September 25, 1982. ELIGIBILITy REQUIREMENTS FOR EX-SERVICEMEMBERS

2405. (a) GENERAL RULE.—Section 8521(aKlXB) of title 5, United States C!ode, is amended to read as follows: "(B) with respect to that service, the individual— "(i) was dischai^ed or released under honorable conditions; "(ii) did not resign or voluntarily leave the service; and "(iii) was not released or discharged for cause as defined by the Department of Defense;". 5 USC 8521 note. (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply with respect to terminations of service on or after July 1, 1981, but only in the case of weeks of unemployment beginning after the date of the enactment of this Act. SEC.

AOJUSTBdENTS TO PROVISIONS WHICH INCREASE FEDERAL UNEMPLOYMENT TAX IN STATES WTTH OUTSTANDING LOANS

2406. (a) LIMITATIONS ON CREDIT REDUCTION IN CERTAIN CASES.—Section 3302 of the Internal Revenue Code of 1954 (relating to credits against unemployment tax) is amended by adding at the end thereof the following new subsection: SEC.

26 USC 3302.

"(f) LIMITATION ON CREDIT REDUCTION.—

"(1) LIMITATION.—In the case of any Stjite which meets the requirements of paragraph (2) with respect to any taxable year beginning before January 1, 1988, the reduction under subsection (cK2) in credits otherwise applicable to taxpayers subject to the unemployment compensation law of such State shall not exceed the greater of— "(A) the reduction which was in efTect with respect to such State under subsection (c)(2) for the preceding taxable year, or "(B) 0.6 percent of the wages paid by the taxpayer during such taxaole year which are attributable to such State. "(2) REQUIREMENTS.—The requirements of this paragraph are met by any State with respect to any taxable year if the S»:n*etary of Labor determines (on or before November 10 of such taxable year) that— "(A) no State action was taken during the 12-month period ending on September 30 of such taxable year (excluding any £u^on required under State law as in effect prior to the date

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Page:United States Statutes at Large Volume 95.djvu/903

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 877

of the enactment of this subsection) which has resulted or will result in a reduction in such State's unemployment tax effort (as defined by the Secretary of Labor in regulations), "(B) no State action was taken during the 12-month period ending on September 30 of such taxable year (excluding any action required under State law as in effect prior to the date of the enactment of this subsection) which has resulted or will result in a net decrease in the solvency of the State unemployment compensation system (as defined by the Secretary of Labor in regulations), "(C) the State unemployment tax rate for the taxable year equals or exceeds the average benefit cost ratio for calendar years in the 5-calendar year period ending with the last calendar year before the taxable year, and "(D) the outstanding balance for such State of advances under title XII of the Social Security Act on September 30 of 42 USC 1321. such taxable year was not greater than the outstanding balance for such State of such advances on September 30 of the third preceding taxable year (or, for purposes of applying this subparagraph to taxable year 1983, September 30, 1981). The requirements of subparagraphs (C) and (D) shall not apply to taxable years 1981 and 1982. "(3) CREDIT REDUCTIONS FOR SUBSEQUENT YEARS.—If the credit

reduction under subsection (c)(2) is limited by reason of paragraph (1) of this subsection for any taxable year, for purposes of applying subsection (c)(2) to subsequent taxable years (including years after 1987), the taxable year for which the credit reduction was so limited (and January 1 thereof) shall not be taken into account. "(4) STATE UNEMPLOYMENT TAX RATE.—For purposes of this subsection— "(A) IN GENERAL.—The State unemployment tax rate for any taxable year is the percentage obtained by dividing— "(i) the total amount of contributions paid into the State unemployment fund with respect to such taxable year, by "(ii) the total amount of the remuneration subject to contributions under the State unemployment compensation law with respect to such taxable year (determined without regard to any limitation on the amount of wages subject to contribution under the State law). "(B) TREATMENT OF ADDITIONAL TAX UNDER THIS CHAPTER.— "(i) TAXABLE YEAR 1983.—In the case of taxable year

1983, any additional tax imposed under this chapter with respect to any State by reason of subsection (c)(2) shall be treated as contributions paid into the State unemployment fund with respect to such taxable year. "(ii) TAXABLE YEAR 1984.—In the case of taxable year 1984, any additional tax imposed under this chapter with respect to any State by reason of subsection (c)(2) shall (to the extent such additional tax is attributable to a credit reduction in excess of 0.6 of wages attributable to such State) be treated as contributions paid into the State unemployment fund with respect to such taxable year. "(5) BENEFIT COST RATIO.—For purposes of this subsection—

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Page:United States Statutes at Large Volume 95.djvu/904

 95 STAT. 878

42 USC 1321.

PUBLIC LAW 97-35—AUG. 13, 1981 "(A) IN GENERAL.—The benefit cost ratio for any calendar year is the percentage determined by dividing— "(i) the sum of the total of the compensation paid under the State unemployment compensation law during such calendar year and any interest paid during such calendar year on advances made to the State under title XII of the Social Security Act, by "(ii) the total amount of the remuneration subject to contributions under the State unemployment compensation law with respect to such calendar year (determined without regard to any limitation on the amount of remuneration subject to contribution under the State law). "(B) REIMBURSABLE BENEFITS NOT TAKEN INTO ACCOUNT.—

26 USC 3304 "°^®

26 USC 3302 ^°^^-

For purposes of subparagraph (A), compensation shall not be taken into account to the extent— "(i) the State is entitled to reimbursement for such compensation under the provisions of any Federal law, or "(ii) such compensation is attributable to services performed for a reimbursing employer. "(C) REIMBURSING EMPLOYER.—The term 'reimbursing employer' means any governmental entity or other organization (or group of governmental entities or any other organizations) which makes reimbursements in lieu of contributions to the State unemployment fund. "(D) SPECIAL RULES FOR YEARS BEFORE 1985.— "(i) TAXABLE YEAR 1983.—For purposes of determining whether a State meets the requirements of paragraph (2)(C) for taxable year 1983, only regular compensation (as defined in section 205 of the Federal-State Extended Unemployment Compensation Act of 1970) shall be t a k e n into account for purposes of determining the benefit ratio for any preceding calendar year before 1982. "(ii) TAXABLE YEAR 1984.—For purposes of determin-

ing whether a State meets the requirements of paragraph (2)(C) for taxable year 1984, only regular compensation (as so defined) shall be taken into account for purposes of determining the benefit ratio for any preceding calendar year before 1981. "(E) ROUNDING.—If any percentage determined under subparagraph (A) is not a multiple of.1 percent, such percentage shall be reduced to the nearest multiple of.1 percent. "(6) REPORTS.—The Secretary of Labor may, by regulations, require a State to furnish such information at such time and in such manner as may be necessary for purposes of this subsection. "(7) DEFINITIONS AND SPECIAL RULES.—The definitions and special rules set forth in subsection (d) shall apply to this subsection in the same manner as they apply to subsection (c).". (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1980.

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Page:United States Statutes at Large Volume 95.djvu/905

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 879

INTEREST ON LOANS MADE TO STATE UNEMPLOYMENT FUNDS

2407. (a) GENERAL RULE.—Section 1202 of the Social Security Act is amended by adding at the end thereof the following new subsection: "QoXD Except as otherwise provided in this subsection, each State shall pay interest on any advance made to such State under section 1201. Interest so payable with respect to periods during any calendar year shall be at the rate determined under paragraph (4) for such calendar year. "(2) No interest shall be required to be paid under paragraph (1) with respect to any advance made during any calendar year if— "(A) such advance is repaid in full before the close or September 30 of the calendar year in which the advance was made, and "(B) no other advance was made to such State under section 1201 during such calendar year and after the date on which the repayment of the advance was completed. "(3)(A) Interest payable under paragraph (1) which was attributable to periods during any fiscal year shall be paid by the State to the Secretary of the Treasury not later than the first day of the following fiscal year. If interest is payable under paragraph (1) on any advance (hereinafter in this subparagraph referred to as the 'first advance') by reason of another advance made to such State after September 30 of the calendar year in which the first advance was made, interest on such first advance attributable to periods before such September 30 shall be paid not later than the day after the date on which the other advance was made. "(B) Notwithstanding subparagraph (A), in the case of any advance made during the last 5 months of any fiscal year, interest on such advance attributable to periods during such fiscal year shall not be required to be paid before the last day of the succeeding taxable year. Any interest the time for payment of which is deferred by the preceding sentence shall bear interest in the same manner as if it were an advance made on the day on which it would have been required to be paid but for this subparagraph. ' (4) The interest rate determined under this paragraph with respect to any calendar year is a percentage (but not in excess of 10 percent) determined by dividing— "(A) the aggregate amount credited under section 904(e) to State accounts on the last day of the last calendar quarter of the immediately preceding calendar year, by "(B) the aggregate of the average daily balances of the State accounts for such quarter as determined under section 904(e). "(5) Interest required to be paid under paragraph (1) shall not be paid (directly or indirectly) by a State from amounts in its unemployment fund. If the Secretary of Labor determines that any State action results in the paying of such interest directly or indirectly (by an equivalent reduction in State unemployment taxes or otherwise) from such unemployment fund, the Secretary of Labor shall not certify such State's unemployment compensation law under section 3304 of the Internal Revenue Code of 1954. Such noncertification sjhall be made in accordance with section 3304(c) of such Code. "(6)(A) For purposes of paragraph (2), any voluntary repayment shall be applied against advances made under section 1201 on the last made first repaid basis. Any other repayment of such an advance shall be applied against advances on a first made first repaid basis. "(B) For purposes of this paragraph, the term 'voluntary repayment' means any repayment made under subsection (a). SEC.

42 USC 1322.

42 USC 1321.

42 USC 1104.

26 USC 3304.

"Voluntary repayment."

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Page:United States Statutes at Large Volume 95.djvu/906

 95 STAT. 880

PUBLIC LAW 97-35—AUG. 13, 1981 "(7) This subsection shall only apply to advances made on or after April 1, 1982, and before January 1, 1988." (b) TECHNICAL AMENDMENTS.—

42 USC 1321. 42 USC 1322.

(1) Paragraph (1) of section 1201 of the Social Security Act is amended by striking out "without interest" and inserting in lieu thereof "with interest to the extent provided in section 12020))". (2) Section 1202 of such Act is amended by striking out "SEC. 1202." and inserting in lieu thereof "SEC. 1202. (a)". CERTIFICATION OF STATE UNEMPLOYMENT LAWS; EFFECTIVE DATES SEC. 2408. (a) GENERAL RULE.—Section 3304(c) of the Internal

26 USC 3304.

26 USC 3304 "°*®26 USC 3304 note.

Revenue Code of 1954 is amended by striking out the last two sentences and inserting in lieu thereof the following: "On October 31 of any taxable year, the Secretary of Labor shall not certify any State which, after reasonable notice and opportunity for hearing to the State agency, the Secretary of Labor finds has failed to amend its law so that it contains each of the provisions required by law to be included therein (including provisions relating to the Federal-State Extended Unemployment Compensation Act of 1970 (or any amendments thereto) as required under subsection (a)(lD), or has, with respect to the twelve-month period ending on such October 31, failed to comply substantially with any such provision.". 03) TRANSITIONAL RuLES.—

(1) Except as otherwise provided in paragraph (2)— (A) The amendments made by sections 2401 and 2402 shall be required to be included in State unemployment compensation laws for purposes of certifications under section 3304(c) of the Internal Revenue Code of 1954 on October 31 of any taxable year after 1980; and (B) the amendments made by sections 2403 and 2404 shall be required to be included in such laws for purposes of such certifications on October 31 of any taxable year after 1981. (2)(A) In the case of any State the legislature of which— (i) does not meet in a session which begins after the date of the enactment of this Act and prior to September 1.1981, and (ii) if in session on the date of the enactment of this Act, does not remain in session for a period of at least 25 calendar days, the date "1980" in paragraph (1)(A) shall be deemed to be "1981". (B) In the case of any State the legislature of which— (i) does not meet in a session which begins after the date of the enactment of this Act and prior to September 1.1982, and (ii) if in session on the date of the enactment of this Act, does not remain in session for a period of at least 25 the date "1981" in paragraph (1)(B) shall be deemed to be "1982".

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Page:United States Statutes at Large Volume 95.djvu/907

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 881

TITLE XXV—TRADE ADJUSTMENT ASSISTANCE Subtitle A—Adjustment Assistance for Workers GROUP ELIGIBILITY REQUIREMENTS FOR ADJUSTMENT ASSISTANCE

SEC. 2501. Section 222 of the Trade Act of 1974 (19 U.S.C. 2272) is amended— (1) by amending paragraph (3) by striking out "contributed importantly to" and inserting in lieu thereof "were a substantial cause of, and by striking out "to such decline" and inserting in lieu thereof "of such decline"; and (2) by amending the last sentence to read as follows: "For purposes of paragraph (3), the term 'substantial cause* means a cause which is important and not less than any other cause.". BENEFIT INFORMATION TO WORKERS

SEC. 2502. Subchapter A of chapter 2 of title II of the Trade Act of 1974 is amended by adding at the end thereof the following new section: "SEC. 225. BENEFIT INFORMATION TO WORKERS. "The Secretary shall provide full information to workers about the benefit allowances, training, and other employment services available under this chapter and about the petition and application procedures, and the appropriate filing dates, for such allowances, training and services. The Secretary shall provide whatever assistance is necessary to enable groups of workers to prepare petitions or applications for program benefits. The Secretary shall make every effort to insure that cooperating State agencies fully comply with the agreements entered into under section 239(a) and shall periodically review such compliance. The Secretary shall inform the State Board for Vocational Education or equivalent agency and other public or private agencies, institutions, and employers, as appropriate, of each certification issued under section 223 and of projections, if available, of the needs for training under section 236 as a result of such certification.".

19 USC 2275.

19 USC 2311.

19 USC 2273. Post, p. 885.

QUALIFYING REQUIREMENTS FOR WORKERS

SEC. 2503. Section 231 of the Trade Act of 1974 (19 U.S.C. 2291) is amended to read as follows: "SEC. 231. QUALIFYING REQUIREMENTS FOR WORKERS. "(a) Payment of a trade readjustment allowance shall be made to an adversely affected worker covered by a certification under subchapter A who files an application for such allowance for any week of 19 USC 2271. unemployment which begins more than 60 days after the date on which the petition that resulted in such certification was filed under section 221, if the following conditions are met: "(1) Such worker's total or partial separation before his application under this chapter occurred— "(A) on or after the date, as specified in the certification under which he is covered, on which total or partial separation began or threatened to begin in the adversely affected employment.

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