101-193 Any person who shall violate, or aid or abet in ...

TITLE 42.-THE PUBLIC HEALTH

§ 148. Offenses; punishment.Any person who shall violate, or aid or abet in

violating, any of the provisions of sections 141-148of this title shall be punisled by a fine not exceeding$500 or by imprisonment not exceeding one year, orby both such fine and imprisonment, in the discre-tion of the court. (July 1, 1902, ch. 1378, § 7, 32Stat. 729.)

Chapter 5.-MATERNITY AND INFANCY WEL-FARE AND IIYGIENE

§§161-175. Repealed. Jan. 22, 1927, cli. 53, § 2, 41Stat. 1024, eft. June 30, 1929.

Sections 161-175 were from acts Nov. 23. 1021, ch. 135.i§ 1-14, 42 Stat. 224-226; Mar. 10, 1024, ch 46, § 3, 43Stat 17; Jan. 22, 1927, ch. 53, § 1, 44 Stat. 1024.

Chapter 6.-TIlE CHILDREN'S BUREAU

§§ 191-193. Establishment of Bureau; chief; quarters.

Sections 191-103, acts Apr. 0, 1912, ch. 73, Hi 1-4, 37Stat. 79, 80; Mar. 4, 1913, ch. 141, qt 3, 6, 37 Stat. 737, 738;Feb. 27, 1925, ch. 364, title IV, 43 Stat. 1050, have becomesections 18-18c of Title 29, Labor.

Chapter 7.--SOCIAL SECURITY ACT

SUBCHAPTER I--GRANTS TO STATES FOR OLD-AGEASSISTANCE

Sec.301. Appropilation.302. State old-age aEsistance plans; contents; ap-

proval by Board.303. Payment to States; computation of amounts.304. Stopping payment on deviation from required

provisions of plan or failure to comply there-with.

305. Appropriation.306. "Old-age assistance" defined.

SUBCHAPTER II-FEDERAL OLD-AGE AND SUR-VIVORS INSURANCE BENEFITS

401. Federal old-age and survivors insurance trustfund.

402. Old-age and survivors insurance benefit pay-ments.

(a) Primary insurance beneflits.(b) Wife's Insurance benefits.(c) Child's insurance benefits.(d) Widow's insurance benefits.(e) Widow's current insurance benefits.(f) Parent's insurance benefit.(g) Lump sum death payments.(h) Application

403. Reduction and increase of insurance benefits.404. Overpayments and underpayments,405. Evidence, procedure, and certification for pay-

ment.406. Representation of claimants before the Board.407. Assignment.408. Penalties.409. Definitions.410. Definitions.410a. Limitation on definition of employment.

SUBCHAPTER III-GRANTS TO STATES FOR UNEM-PLOYMENT COMPENSATION ADMINISTRATION

501. Appropriation.502. Payments to States; computation of amounts.503. State laws, provisions required; stopping pay-

ments on failure to comply with law.

SUBCHAPTER IV.-GRANTS TO STATES FOR AID TODEPENDENT CHILDREN

601. Appropriation.602. State plans for aid to dependent children; con-

tents; approval by Board.

603. Payment to States: computation of amountm.604. Stopping payments on deviation from required

provisions of plan or failure to comply there-with.

605. Appropriation.600. Detfinitions.

SUBCIIAPTER V--GRANTS TO STATES 'OR MATFJ-

NAL AND CHILD WELFAIE

MATFraNAL AND CHILD HEALTH Srvi1cln

701. Appropriation.702 Allotments to States.703. State plans; contents; approval by Chief of Chil-

dren'. Bureau.704. Payment to States; computation of amounts.70 In. Allotments excluded from computation.705. Stopping payment on failure to comply with

plan.

SERvICS- FOR CRIPPLED CHILDREN

711. Appropriation.712. Allotments to States.713. State plans: contents; approval by Chief of Chil-

dren's Buit -ii.714. Payment to States; computation of amounts.715. Stopping payment on failure to comply with

State plan.

C1mn.D-WELFARE SsiRvicra

721. Appropriation; allotments to States.

AnINISTnATION

731. Appropriation for administration.

SUBCIIAPTER VI--PUBLIC HEALTH! WORK

801. Appropriation.802. Allotment of appropriation to States.803. Investigations by Public Health Service; appro-

priation; annual report to Congress.

SUBCIIAPTER VII-SOCIAL SECURITY BOARD

001. Establishment of Board; composition and termof office; compensation.

O01a. Federal Security Administrator; direction andsupervi!.ion.

902. Duties of Board.003. Expenses of Board; appointment and compen-

sation of officers and employees.904. Annual report to Congress.

SUBCHAPTER VIII.-TAXES WITH RESPECT TOEMPLOYMENT

1001.1002.1003.1004.1005.1006.1007.1008.1009.

1010.1011.

Income tax on employees.Deduction of tax from wages.Deductibility from income tax.Excise tax on employers.Adjustment of employers' tax.Refunds and deficienciesCollection and payment of taxes.Rules and regulationsSale by postmasters of stamps or other devices for

collection or payment of tax.Penalties.Definitions

SUBCHAPTER IX.-TAX ON EMPLOYERS OF EIGIT ORMORE

1101.1102.1103.1104.

1105.

Imposition of tax.Credit against tax.Approval and certification of State laws.Unemployment Trust Fund; establishment; In-

vestment; payments to States.Administration, refunds and penalties.

(a) Collection; penalties.(b) Returns.(c) Inspection of returns.(d) Payment in installments.(e) Extension of time for payment.(f) Fractional part of cent,

Page 3539 11 101-193


Bee1106

1107.11081100.1110

Engngng In Inte'mtate commerce not to excusepayrnent of tax

Definitions.Rules and regulationsAdditional cedlit against tax.Conditions of additional credit allowance

SUBCIIAPTIIR X-GRANTS TO STATES FOR AID TOTilE BLIND

1201120212031204.

1205.1200.

1301.1301a.

1302.1303.130413051306.1307.

Appropriation.State plans for aid to Ilind.Payn'nt to State-,Change In or failure to comply with plans; stop-

ping payments.Appropriation."Ail to the blind" defined.

SUBCIIAPTER XI-GENERAL PROVISIONS

Definitions.Bureau of Old-Age and Survivors' Insurance em-

ployees; travel expenses.Rules and regulations.Separability clause.Reservation of right to amend or repeal.Short title of chapter.Disclosure of information in possesion of Board.Penalty for fraud

SOCIAl, INsuRANCE AND LAeon RELATIONS OF RAILROADCOAL-MrMIN EMPLOYEES; RErOAcrIVE OPEnATION OFAar AUGUST 13, 1040; EFFECr ON PAYMENTS, RIGIITS, ETC.

Sections 4-7 of said act Aug. 13, 1040, ch. 664, 54 Stat.780, 787, with regard to the operation and effect of thesechanges, provided as follows:

"SEc. 4. (a) The laws hereby expressly amended (see-tion 1532 of title 26, and sections 151, 215, 228a, 261, and361 of title 45), the Social Security Act, approved August14, 1935 (section 301 et seq of title 42), and all amend-ments thereto, shall operate as if each amendment hereincontained had been enacted as a part of the law itamends, at the time of the original enactment of suchlaw.

"(1) No person (ag defined In the Carriers Taxing Actof 1037 (section 261 ct seq. of title 45) ) shall be entitled,by reason of the provisions of this act, to a refund of,or relief from liability for, any income or excise taxes paidor accrued, pursuant to the provisions of the CarriersTaxing Act of 1937 (section 201 et seq. of title 45) orsubchnpter B of chapter 9 of the Internal Revenue Code(section 1500 et seq. of title 20), prior to the date of theenactment of this act by reason of employment in theservice of any carrier by railroad subject to part I ofthe Interstate Commerce Act (section 1 et seq. of title49), but any individual who has been employed in suchservice of any carrier by railroad subject to part I of theInterstate Commerce Act (section 1 et seq. of title 49),as is excluded by the amendments made by this act fromcoverage under the Carriers Taxing Act of 1937 (section261 et seq. of title 45) and subchaptcr B of chapter 9of the Internal Revenue Code (section 1500 et seq. oftitle 26), and who has paid income taxes under theprovisions of such act or subchapter, and any carrierby railroad subject to part I of the Interstate CommerceAct (section 1 et seq. of title 49) which has paid excisetaxes undier the provisions of the Carriers Taxing Act of1937 (section 261 et seq. of title 45) or subchapter Bof chapter 0 of the Internal Revenue Code (section 1500et seq. of title 26), may, upon making proper applica-tion therefor to the Bureau of Internal Revenue, havethe amount of taxes so paid applied in reduction of suchtax liability with respect to employment, as may, byreason of the amendments made by this act, accrueagainst them under the provisions of title VIII of theSocial Security Act (section 1001 et seq. of title 42) orthe Federal Insurance Contributions Act (subchapter Aof chapter 9 of the Internal Revenue Code (section 1400et seq. of title 26)).

"(c) Nothing contained in this act shall operate (1)to affect any annuity, pension, or death benefit granted

under the Rallrond Retirement Act of 1935 (sections 215-228 of title 45) or the Railroad Retirement Act of 1937(section 228a et seq. of title 45), prior to the date ofenactment of this act, cr (2) to include any of theservices on the basis of which any such annuity orpension was granted, as employment within the meaningof section 210 (b) of the Social Security Act or section209 (b) of such act, as amended (sections 410 (b) and 409(b), respectively, of title 42). In any case In which a deathbenefit alone has been granted, the amount of suchdeath benefit nttributable to services, coverage of whichis affected by this act, shall be deemed to have beenpaid to the deceased under section 204 of the SocialSecurity Act (section 404 of title 42) in effect prior toJanuary 1, 1940, and deductions shall be made fromany insurance benefit or benefits payable under the SocialSecurity Act, as amended (section 301 et seq. of title 42),with repect to wnges paid to an individual for suchservices until such deductions total the amount of suchdeath benefit attributable to such services.

"(d) Nothing contained in this act shall operate toaffect the benefit rights of any individual under the Rail-road Unemployment Insurance Act (section 351 et seq. oftitle 45) for any day of unemployment (as defined insection 1 (k) of such act (section 351 (k) of title 45))occurring prior to the date of enactment of this act.

"SEC. 5. Any application for payment filed with theRailroad Retirement Board prior to, or within sixty daysafter, the enactment of this act shall, under such regu-lations as the Social Security Board may prescribe, bedeemed to be an application filed with the Social SecurityBoard by such Individual or by any person claiming anypayment with respect to the wages of such individual,under any provision of section 202 of the Social SecurityAct, as amended (section 402 of title 42),

"Sec. 6. Nothing contained in this act, nor the action ofCongress in adopting it, shall be taken or considered asaffecting the question of what carriers, companies, orindividuals, other than those in this act specifically pro-vided for, are included in or excluded from the provisionsof the various laws to which this act is an amendment.

"SEC. 7. (a) Notwithstanding the provisions of section1605 (b) of the Internal Revenue Code, no interest shall,during the period February 1, 1940, to the eighty-ninthday after the date of enactment of this act, inclusive,accrue by reason of delinquency in the payment of thetax imposed by section 1600 with respect to services af-fected by this act performed during the period July 1,1939, to December 31, 1939, inclusive, with respect towhich services amounts have been paid as contributionsunder the Railroad Unemployment Insurance Act (sec-tion 351 et seq. of title 45) prior to the date of enactmentof this act.

"(b) Notwithstanding the provisions of section 1601(a) (3) of the Internal Revenue Code, the credit allow-able under section 1601 (a) against the tax imposed bysection 1600 for the calendar year 1939 shall not be dis-allowed or reduced by reason of the payment into a Stateunemployment fund after January 31, 1940, of contri-butions with respect to services affected by this act per-formed during the period July 1, 1939, to December 31,1939, inclusive, with respect to which services amountshave been paid as contributions under the Railroad Un-employment Insurance Act (section 351 et seq. of title45) prior to the date of enactment of this act: Provided,That this subsection shall be applicable only if the contri-butions with respect to such services are paid into theState unemployment fund before the ninetieth day afterthe date of enactment of this act."

Act Aug. 13, 1940, ch. 604, 54 Stat. 785, specificallyamended section 1532 of title 26 and sections 151, 215,228a, 261, and 351 of title 45, by redefining the terms "em-ployer", "employee", and "carrier". In Its report on thebill, the Senate committee approved the policy that coal-mining activities of railroads and their subsidiaries forthe purpose of railroad operations, "whether conducteddirectly by carriers or by bubsidiaries of carriers, shouldfor purposes of a social-insurance program and for pur-poses of labor relations be covered by the system of lawsapplicable to coal-mining generally rather than the sys-tem of laws applicable to tho railroad industry." The

Page 3540


committee accordingly recommended the enactment ofthe bill "so as to exclude coal-mining operations fromthe acts covering the railroad Industry . . ."

SUBCHAPTER I.-GRANTS TO STATES FOR

OLD-AGE ASSISTANCE

§ 301. Appropriation.For the purpose of enabling each State to furnish

financial assistance, as far as practicable under theconditions in such State, to aged needy individuals,there is hereby authorized to be appropriated for thefiscal year ending June 30, 1936, the sum of $49,750.-000, and there is hereby authorized to be appropria-ated for each fiscal year thereafter a sum sufficientto carry out the purposes of sections 301-306 of thistitle. The sums made available under this sectionshall be used for making payments to States whichhave submitted, and had approved by the SocialSecurity Board established by sections 901, 902-904of this title (hereinafter referred to as the "Board"),State plans for old-age assistance. (Aug. 14, 1935,ch. 531, title I, § 1, 49 Stat. 620.)

§302. State old-age assistance plans; contents; ap-

proval by Board.

(a) A State plan for old-age assistance must (1)provide that it shall be in effect in all political sub-divisions of the State, and, if administered by them,be mandatory upon them; (2) provide for financialparticipation by the State; (3) either provide forthe establishment or des'gnation of a single Stateagency to administer the plan, or provide for theestablishment or designation of a single Stateagency to supervise the administration of the plan;(4) provide for granting to any individual, whoseclaim for old-age assistance is denied, an opportun-ity for a fair hearing before such State agency; (5)provide such methods of administration (includingafter January 1, 1940, methods relating to the es-tablishment and maintenance of personnel stand-ards on a merit basis, except that the Board shallexercise no authority with respect to the selection,tenure of office, and compensation of any individualemployed in accordance with such methods) as arefound by the Board to be necessary for the properand efficient operation of the plan; (6) provide thatthe State agency will make such reports, in suchform and containing such information, as the Boardmay from time to time require, and comply withsuch provisions as the Board may from time to timefind necessary to assure the correctness and verifi-cation of such reports; (7) effective July 1, 1941,provide that the State ag :ncy shall, in determiningneed, take into considerP ion any other income andresources of an Indiv.aix.l claiming old-age assist-ance; and (8) effective July 1, 1941, provide safe-guards which restrict the use or disclosure of infor-mation concerning applicants and recipients to pur-poses directly connected with the administration ofold-age assistance.

(b) The Board shall approve any plan which ful-fills the conditions specified in subsection (a), ex-cept that it shall not approve any plan which im-poses, as a condition of eligibility for old-age assist-ace under the plan-

(1) An age requirement of more than sixty-fiveyears, except that the plan may impose, effectiveuntil January 1, 1940, nn age requirement of asmuch as seventy years; or

(2) Any residence requirement which excludesany resident of the State who has resided thereinfive years during the nine years Immediately pre-ceding the application for old-age assistance andhas resided therein continuously for one year i-mediately preceding the application; or

(3) Any citizenship requirement which excludesany citizen of the United States. (Aut. 14, 1935, ch.531, title I, § 2, 49 Stat. 620; Aug. 10, 1939, ch. 666,title I, § 101, 53 Stat. 1360.)

§303. Payment to States; computation of amounts.

(a) From the sums appropriated therefor, theSecretary of the Treasury shall pay to each Statewhich has an approved plan for old-age assistance,for each quarter, beginning with the quarter com-mencing January 1, 1940, (1) an amount, whichshall be used exclusively as old-age assistance, equalto one-half of the tctal of the sums expended duringsuch quarter as old-age assistance under the Stateplan with respect to each needy individual who atthe time of such expenditure is sixty-five years ofage or older and is not an inmate of a public insti-tution, not counting so much of such expenditurewith respect to any individual for any month asexceeds $40, and (2) 5 per centum of such amount,which shall be used for paying the costs of admin-istering the State plan or for old-age assistance, orboth, and for no other purpose.

(b) The method of computing and paying suchamounts -hall be as follows:

(1) The Board shall, prior to the beginning ofeach quarter, estimate the amount to be paid tothe State for such quarter under the provisions ofclause (1) of subsection (a), such estimate to bebased on (A) a report filed by the State containingits estimate of the total sum to be expended in suchquarter in accordance with the provisions of suchclause, and stating the amount appropriated ormade available by the State and Its political subdi-visions for such expenditures in such quarter, andif such amount is less than one-half of thp total sumof such estimated expenditures, dhe -,'.irce orsources from which the difference is expected to bederived, (B) records showing the number of agedIndividuals in the State, and (C) such other inves-tigation as the Board may find necessary.

(2) The Board shall then certify to the Secretaryof the Treasury the amount so estimated by theBoard, (A) reduced or increased, as the case maybe, by any sum by which it finds that its estimate forany prior quarter was greater or less than the amountwhich should have been paid to the State underclause (1) of subsection (a) for such quarter, and (B)reduced by a sum equivalent to the pro rata shareto which the United States is equitably entitled, asdetermined by the Board, of the net amount recov-ered during any prior quarter by the State or anypolitical subdivision thereof with respect to old-ageassistance furnished under the State plan; exceptthat such increases or reductions shall not be made

541 1 303


to tli extent that -uch sums have been applied tomake the amount certified for any prior quartergreater or lss than thc amount estimated by theBoard for such prior quarter: Provided, That anypart of the amount recovered from the estate of a(lecea1ed recipient which is not in excess of theamount expended by the State or any political sub-division theicof for the funeral expenses of thedeceased shall not be considered as a basis for re-duction undvr clau.ie (B) of this paragraph.(3) The Secretary of the Treasury shall there-

upon, throu;ih the Fiscal Service of the Treasury)epariment and prior to audit or settlement by the

General Accounting Office, pay to the State, at thetime or times fixed by the Board, the amount socertifld, increased by 5 per centum. (Aug. 14,1935, ch. 531, title 1, § 3, 49 Stat. 621; Aug. 10, 1939,ch. 666, title I, § 102, 53 Stat. 1361; Reorg. Plan No.1II,§ I (a) (1), eft. June 30, 1940, 5 Fcd. Reg. 2107,54 Stat. 1231.)

EVF.(-rivE DATE

Amendment of ,ection by ect August 10, 1939, cited totext, was made effective January 1, 1940, by section 102of ,'aid act

TRANSFERt OF FUNCTIONS

Divislon of Disbursement and certain other offlccs andagencies and their functions were consolidated into FiscalService of Treasury Department by Rcorg. Plan No. III,

1 (a), cited to text, bet out in note under section 133tof Title 5, Executive Dopartments and Government Offi-cers and Employees.

§30.1. Sfopping payment on desiaiion from requiredIrovisions of plan or failure to comply therewitih.

In the case of any State plan for old-age a.ssist--nce which has been npproved by the Board, ifthe Board, after reasonable notice and opportunityfor hearing to the State agency administering orsupervising the administration of such plan, finds-

(1) that the plan has been so changed as to im-pose any age, residence, or citizenship requirementprohibited by section 302 (b) of this title, or that inthe administration of the plan any such prohibitedrequirement is imposed, with the knowledge of suchState agency, in a substantial number of cases; or

(2) that in the administration of the plan thereis a failure to comply substantially with any provi-sion required by section 302 (a) of this title to beincluded in the plan;

the Board shall n.,tify such State agency that fur-ther payments will not be made to the State untilthe Board is satisfied that such prohibited require-ment is no longer so imposed, and that there is nolonger any such failure to comply. Until it is sosatisfied it shall make no further certification tothe Secretary of the Treasury with respect to suchState. (Aug. 14, 1935, ch. 531, title I, § 4, 49 Stat.622.)

§ 305. Appropriation.

Section, act Aug. 14, 1935, ch. 631, Title I, § 5, 49 Stat.622, made an appropriation for the fiscal year ending June30, 1936.

§ 306. "Old-age assistance" defined.

When used in sections 301-306 of this title theterm "old-age assistance" means money payments

to needy aged individuals. (Aug. 14, 1935, ch. 531,title I, § 6, 49 Stat. 622; Aug. 10, 1939, ch. 666, titleI, § 103. 53 Stat. 1362.)

SUBCHAPTER II.-FEDERAL OLD-AGE ANDSURVIVORS INSURANCE BENEFITS

Cnoss REFEP.ENCE

Collection of tax on services made necessary by hurl-cane, see note under section 1004 of this title.

§ 401. Federal old-age and suriivors insurance trustfund.

(a) There is hereby created on the books of theTreasury of the United States a trust fund to beknown as the "Federal Old-Age and Survivors In-surance Trust Fund" (hereinafter in sections 401-409 of this title called the "Trust Fund"). TheTrust Fund shall consist of the securities held by theSecretary of the Treasury for the Old Age ReserveAccount and the amount standing to the credit ofthe Old Age Reserve Account on the books of theTreasury on January 1, 1940, which securities andamount the Secretary of the Treasury is authorizedand directed to transfer to the Trust Fund, and, inaddition, such amounts as may be appropriated tothe Trust Fund as hereinafter provided. There ishereby appropriated to the Trust Fund for the fis-cal year ending June 30, 1941, and for each fiscalyear thereafter, out of any moneys in the Treasurynot otherwise appropriated, amounts equivalent to100 per centum of the taxes (including interest, pen-alties, and additions to the taxes) received undersections 1400-1403, 1410, 1411, 1420-1432 of Title 26and covered into the Treasury.

(b) There is hereby created a body to be knownas the Board of Trustees of the Federal Old-Ageand Survivors Insurance Trust Fund (hereinafterin sections 401-409 of this title called the "Board ofTrustees") which Board of Trustees shall be com-posed of the Secretary of the Treasury, the Secre-tary of Labor, and the Chairman of the Social Se-curity Board, all ex officio. The Secretary of theTreasury shall be the Managing Trustee of theBoard of Trustees (hereinafter in this title calledthe "Managing Trustee"). It shall be the duty ofthe Board of Trustees to-

(1) Hold the Trust Fund;(2) Report to the Congress on the first day of each

regular session of the Congress on the operation andstatus of the Trust Fund during the preceding fiscalyear and on its expected operation and status duringthe next ensuing fve fiscal years;

(3) Report immediately to the Congress when-ever the Board of Trustees is of the opinion thatduring the ensuing five fiscal years the Trust Fundwill exceed three times the highest annual expendi-tures anticipated during that five-fiscal-year period,and whenever the Board of Trustees is of the opin-ion that the amount of the Trust Fund is undulysmall.

The report provided for in paragraph (2) aboveshall include a statement of the assets of, andthe disbursements made from, the Trust Fund dur-ing the preceding fiscal year, an estimate of theexpected future income to, and disbursements tobe made from, the Trust Fund during each of the

5 304 Page 3542

TITLE 42.-THE PUBLIC HEALTH4

next ensuing five fiscal years. and a statement ofthe actuarial status of the Trust Fund.

(c) It shall be the duty of the Managing Trusteeto invest such portion of the Trust Fund as is not,in his judgment, required to meet current with-drawals. Such investments may be made only ininterest-bearing obligations of the United States orin obligations guaranteed as to both principal andinterest by the United States. For such purposesuch obligations may be acquired (1) on originalissue at par, or (2) by pur.hase of outstandingobligations at the market price. The purposes forwhich obligations of the United States may be issuedunder sections 745, 747, 752--754b, 757-757c, 758, 760,764-766, 769, 771, 773, 774 (2), and 801, of title 31,are hereby extended to authorize the issuance atpar of special obligations exclusively to the TrustFund. Such special obligations shall bear interestat a rate equal to the average rate of interest, com-puted as to the end of the calendar month nextpreceding the date of such issue, borne by all inter-est-bearing obligations of the United States thenforming a part of the Public Debt; except thatwhere such average rate is not a multiple of one-eighth of 1 per centum, the rate of interest of suchspecial obligations shall be the multiple of one-eighth of 1 per centum next lower than such averagerate. Such special obligations shall be issued onlyIf the Managing Trustee determines that the pur-chase of other interest-bearing obligations of theUnited States, or of obligations guaranteed as toboth principal and interest by the United Stateson original issue or at the market price, is not inthe public interest.

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

(e) The interest on, and the proceeds from thesale or redemption of, any obligations held in theTrust Fund shall be credited to and form a part ofthe Trust Fund.

(f) The Managing Trustee is directed to pay fromthe Trust Fund into the Treasury the amount esti-mated by him and the Chairman of the Social Se-curity Board which will be expended during a threemonth period by the Social Security Board and theTreasury Department for the administration of sec-tions 401-409 and sections 1001-1011 of this title, andsections 1400-1403, 1410, 1411, 1420-1432 of thistitle. Such payments shall be covced into the Treas-ury as repayments to the account for reimbursementof expenses incurred in connection with the admin-istration of sections 401-409 and sections 1001-1011 ofthis title and sections 1400-1403, 1410, 1411, 1420-1432 of this title. Such repayments shall not beavailable for expenditures but shall be carried to thesurplus fund of the Treasury. If it subsequently ap-pear that the estimates In any particular three monthperiod were too high or too low, appropriate adjust-ments shall be made by the Managing Trustee infuture payments.

(g) All amounts credited to the Trust Fund shallbe available for making payments required under

sections 401-409 of this title. (Aug. 14, 1935, ch 531,title II, § 201, 49 Stat. 622; Aug. 10, 1939, ch. 660.title II, § 201, 53 Stat. 1362.)

Ernc~rnvE DATEAmendment by act August 10. 1939. cited to text, wits

made effective January 1, 1040, by section 201 of aind act.

§102. Old-age and survivors insurance hencit hay-ments-(u) Primary insurance benefits.

Every individual, who (1) is a fully insured indi-vidual (as defined in section 409 ,g) of this title)after December 31, 1939, (2) has attained the age ofsixty-five, and (3) has filed application for primaryinsurance benefits, shall be entitled to receive a pri-mary insurance benefit (as defined in section 409(e) of this title) for each month, beginning with themonth in which such individual becomes so entitledto such insurance benefits and ending with the monthpreceding the month in which he dies.

(b) Wife's insurance benefits.(1) Every wife (as defined in section 409 (i) of

this title) of an individual entitled to primary insur-ance benefits, if such wife (A) has attained the ageof sixty-five, (B) has filed application for wife's in-surance benefits, (C) was living with such individualat the time such application was filed, and (D) is notentitled to receive primary insurance benefits, or isentitled to receive primary insurance benefits eachof which is less than one-half of a primary insurancebenefit of her husband, shall be entitled to receive awife's insurance benefit for each month, beginningwith the month in which she becomes so entitled tosuch insurance benefits, and ending with the monthimmediately preceding the first month in which anyof the following occurs: she dies, her husband dies,they are divorced a vinculo matrimonii, or she be-comes entitled to receive a primary insurance benefitequal to or exceeding one-half of a primary insur-ance benefit of her husband.

(2) Such wife's insurance benefit for each monthshall be equal to one-half of a primary insurancebenefit of her husband, except that, if she is entitledto receive a primary insurance benefit for any month,such wife's insurance benefit for such month shallbe reduced by an amount equal to a primary insur-ance benefit of such wife.

(c) Child's insurance benefits.(1) Every child (as defined in section 409 (k) of

this title) of an individual entitled to primary insur-ance benefits, or of an individual who died a fully orcurrently insured individual (as defined in section409 (g) and (h) of this title) after December 31,1939, If such child (A) has filed application forchild's insurance benefits, (B) at the time such ap-plication was filed was unmarried and had not at-tained the age of 18, and tO) was dependent uponsuch individual at the time such application wasfiled, or, if such individual has died, was dependent

upon such individual at the time of such individual'sdeath, shall be entitled to receive a child's insurancebenefit for each month beginning with the monthin which such child becomes so entitled to such in-surance benefits, and ending with the month imme-diately preceding the first month in which any of the

Page 3543 ,t 402

TITLE 42.-THE PUBLIC HEALTHP

following occurs: such child dies, marries, is adopted,

or attains the age of eighteen.(2) Such child's Insurance benefit for each month

shall bex equal to one-half of a primary insurance

benfit of the Individual with respect to whose wages

the child I,, entitled to receive such benefit., exceptthat, when there Is more than one such individual

iuch h'nerfit shall be equal to one-half of whicheverprimary insurance benefit is greatest.

(3) A child shall be deemed dependent upon a

father or adopting father, or to have been dependentupon such individual at the tifnc of the death of

such individual, unless, at the time of such death,or, if such individual was living, at the time suchchild's application for child's insurance benefit; wasfiled, such Individual was not living with or con-tributing to the support of such child and-

(A) such child is neither the legitimate noradopted child of such individual, or

(B) such child had been adopted by some otherindividual, or

(C) such child, at the time of such individual'sdeath, was living with and suppcrted by such child'sstel)father.

(4) A child shall be deemed dependent upon amother, adopting mother, or stepparent, or to havebeen dependent upon such individual at the timeof the death of such individual, only if, at the timeof such death, or, if such individual was living, atthe time such child's application for child's insur-ance benefits was filed, no parent other than suchindividual was contributing to the support of suchchild and such child was not living with its fattor adopting father.

d) Widow's insurance benefits.(1) Every widow (as defined in section 409 (J)

of this title) of an individual who died a fullyinsured individual after December 31, 1939, if suchwidow (A) has not remarried, (B) has attained theage of sixty-five, (C) has filed application forwidow's insurance benefits, (D) was living with suchindividual at the time of his death, and (E) is notentitled to receive primary insurance benefits, oris entitled to receive primary insurance benefits eachof which is less than three-fourths of a primaryinsurance benefit of her husband, shall be entitledto receive a widow's insurance benefit for eachmonth, beginning with the month in which shebecomes so entitled to such insurance benefits andending with the month immediately preceding thefirst month in which any of the following occurs:she remarries, dies, or becomes entitled to receivea primary insurance benefit equal to or exceedingthree-fourths of a primary insurance benefit of herhusband.

(2) Such widow's insurance benefit for each monthshall be equal to three-fourths of a primary insur-ance benefit of her deceased husband, except that, ifshe is entitled to receive a primary insurance bene-fit for any month, such widow's insurance bene-fit for such month shall be reduced by an amountequal to a primary insurance benefit of such widow.

(e) Widow's current insurance benefits.(1) Every widow (as defined in section 409 (J)

of this title) of an individual who died a fully or

currently insured individual after December 31, 1939,If such widow (A) has not remarried, (B) is notentitled to receive a widow's insurance benefit, andis not entitled to receive primary insurance benefits,or is entitled to receive primary insurance benefitseach of which is less than three-fourths of a primaryinsurance benefit of her husband, (C) was livingwith such individual at the time of his death, (D)has filed application for widow's current insurancebenefits, and (E) at the time of filing such appli-cation has in her care a child of such deceased indi-vidual entitled to receive a child's insurance benefit,shall be entitled to receive a widow's current in-surance benefit for each month, beginning withthe month in which she becomes so entitled to suchcurrent insurance benefits and ending with themonth immediately preceding the first month inwhich any of the following occurs: no child of suchdeceased individual is entitled to receive a child'sinsurance benefit, she becomes entitled to receivea primary insurance benefit equal to or exceedingthree-fourths of a primary insurance benefit of hrdeceased husband, she becomes entitled to receive awidow's insurance benefit, she remarries, she dies.

(2) Such widow's current insurance benefit foreach month shall be equal to three-fourths of a pri-mary insurance benefit of her deceased husband,except that, if she is entitled to receive a primaryinsurance benefit for any month, such widow's cur-rent insurance benefit for such month shall be re-duced by an amount equal to a primary insurancebenefit of such widow.

(f) Parent's insurance benefit.(1) Every parent (as defined in this subsection)

of an individual who died a fully insured individualafter December 31, 1939, leaving no widow and nounmarried surviving child under the age of eighteen,if such parent (A) has attained the age of sixty-five,(B) was wholly dependent upon and supported bysuch individual at the time of such individual'sdeath and filed proof of such dependency and sup-port within two years of such date of death, (C)has not married since such individual's death, (D)is not entitled to receive any other insurance bene-fits under this section, or is entitled to receive oneor more of such benefits for a month, but the totalfor such month is less than one-half of a primaryinsurance benefit of such deceased individual, and(E) has filed application for parent's insurancebenefits, shall be entitled to receive a parent's insur-ance benefit for each month, beginning with themonth in which such parent becomes so entitled tosuch parent's insurance benefits and ending with themonth immediately preceding the first month inwhich any of the following occurs: such parent dies,marries, or becomes entitled to receive for anymonth an insurance benefit or benefits (other thana benefit under this subsection) in a total amountequal to or exceeding one-half of a primary insur-ance benefit of such deceased individual.

(2) Such parent's insurance benefit for eachmonth shall be equal to one-half of a primary in-surance benefit of such deceased individual, exceptthat, if such parent is entitled to receive an insur-ance benefit or benefits for any month (other than

Page 3544§ 402

TITLE 42 -THE PUBLIC HEALTH

a benefit under this subsection), such patent's in-surance benefit for such month shall be reduced byan amount equal to the total of such other benefitor benefits for such month. When there is morethan one such individual with respect to whosewages the parent is entitled to receive a parent'sinsurance benefit for a month, such benefit shall beequal to one-half of whichever primary insurancebenefit is greatest.

(3) As used in this subsection, the term "parent"means the mother or father of an individual, a step-parent of an individual by a marriage contractedbefore such individual attained the age of sixteen,or an adopting parent by whom an individual wasadopted before he attained the age of sixteen.

(g) Lump sum death payments.Upon the death, after December 31, 1939, of an

individual who died a full" or currently insuredindividual leaving no surviving widow, child, or par-ent who would, on filing application in the monthin which such individual died, be entitled to a bene-fit for such month under subsection (c), (d), (e), orCf) of this section, an amount equal to six times aprimary insurance benefit of such individual shallbe paid in a lump-sum to the following person (orif more than one, shall be distributed among them)whose relationship to the deceased is determined bythe Board, and who is living on the date of such de-termination: To the widow or widower of the de-ceased; or, if no such widow or widower be thenliving, to any child or children of the deceased andto any other person or persons who are, under theintestacy law of the State where the deceased wasdomiciled, entitled to share as distributees with suchchildren of the deceased, in such proportions as isprovided by such law; or, if no widow or widowerand no such child and no such other person be thenliving, to the parent or to the parents of the de-ceased, in equal shares. A person who is entitledto share as distributee with an above-named rela-tive of the deceased shall not be precluded from re-ceiving a payment under this subsection by reasonof the fact that no such named relative survivedthe deceased or of the fact that no such namedrelative of the deceased was living on the date ofsuch determination. If none of the persons de-scribed in this subsection be living on the date ofsuch determination, such amount shall be paid toany person or persons, equitably entitled thereto, tothe extent and in the propretions that he or theyshall have paid the expensc- of burial of the de-ceased. No payment shall be made to any personunder this subsection, unless application thereforshall have been filed, by or on behalf of any suchperson (whether or not legally competent), priorto the expiration of two years after the date ofdeath of such individual.

(h) Application.An individual who would have been entitled to a

benefit under subsection (b), (c), (d), (e), or Cf)for any month had he filed application thereforprior to the end of such month, shall be entitled tosuch benefit for such month if he fies applicationtherefor prior to the end of the third month im-mediately succeeding such month. (Aug. 14, 1935,

ch. 531, title II, § 202, 49 Stat. 623; Aug. 10, 1039,ch. 666, title II, 1 202, 53 Stat. 1363.)

Eyrrc-rnr DATrAmendment by act Augu:,t 10, 1939, cited to text, was

made vilvctive January 1, 1940, by bect iol 201 of bald act.

CHoss R FluuMxucN

Railroad coal-mining employces, tram, fer of comiageto Social Sccurity Act by act August 13, 1910, ace noteunder this chapter, pieceding section 301

§ 403. Reduction and increase of insurance benefits.(a) Whenever the total of benefits under section

402 of this title, payable for a month with respectto an individual's wages, is more than $20 and ex-ceeds (1) $85, or (2) an amount equal to twice aprimary insurance benefit of such individual, or (3)an amount equal to 80 per centumr of his averagemonthly wage (as defined in section 409 (f) of thistitle), whichever of such three amounts is least,such total of benefits shall, prior to any deductionsunder subsections (d), ke), or th), be reduced tosuch least amount or to $20, whichever is greater.

(b) Whenever the benefit or total of benefits un-der section 402 of this title, payable for a monthwith respect to an individual's wages, is less than$10, such benefit or total of benefits shall, prior toany deductions under subsections (d), (e), or (h),be Increased to $10.(c) Whenever a decrease or increase of the total

of benefits for a month is made under subsection(a) or (b) of this section, each benefit, except theprimary benefit, shall be proportionately decreasedor increased, as the case may be.

(d) Deductions, In such amounts and at such timeor times as the Board shall determine, shall be madefrom any payment or payments under sections 401-409 of this title to which an individual Is entitled,until the total of such deductions equals such Indi-vidual's benefit or benefits for any month in whichsuch Individual:

(1) rendered services for wages of not less than$15; or

(2) if a child under eighteen and over sixteenyears of age, failed to attend school regularly andthe Board finds that attendan-e was feasible; or

(3) if a widow entitled to a widow's current in-surance benefit, did not have In her care a child ofher deceased husband entitled to receive a child'sinsurance benf.fit.(e) Deductions shall be made from any wife's or

child's insurance benefit to which a wife or child isentitled, until the total of such deductions equalssuch wife's or child's insurance benefit or benefitsfor any month in which the individual, with respectto whose wages such benefit was payable, renderedservices for wages of not less than $15.

Cf) If more than one event occurs in any onemonth which would occasion deductions equal to abenefit for such month, only an amount equal tosuch benefit shall be deducted.(g) Any individual in receipt of benefits subject

to deduction under subsection (d) or (e) (or who Isin receipt of such benefits on behalf of another Indi-vidual), because of the occurrence of an eventenumerated therein, shall report suc" occurrenceto the Board prior to the receipt ant, acceptance

Page 3545 § 403


(if an insurance benefit for the second month fol-lowing the month in which such event occurred.Any ,,uch individual having knowledge thrcof, whofail to report any such occurrence, shall tuffer anadditional deduction equal to that imposed undersubsection (d) or (e).

(h) Deductions shall also be made from any pri-mary Insurance benefit to which an individual Isentitled, or from any other insurance benefit pay-able with respect to such Individual's wages, untils'uch deductions total the amount of any lump sumpaid to such Individual under section 404 of thischapter In force prior to August 10, 1939. (Aug. 14,1935, clh. 531, title II, § 203, 49 Stat. 623; Aug. 10.1939, ch. 666, title II, § 203, 53 Stat. 1367.)

ErsncTivx DATE

Amendment by act August 10, 1030, cited to text, was

made eifective January 1, 1940, by rection 201 of said act.

§ ,101. Overpayments and underpayments.

(a) Whenever an error has been made with re-spect to payments to an individual under sections401-409 of this title (including payments made priorto January 1, 1940), proper adjuvtment shall bemade, under regulations prescribed by the Board,by increasing or decreasing subsequent paymentsto which such individual Is entitled. If such indi-vidual dies before such adjustment has been com-pleted, adjustment shall be made by increasing ordecreasing subsequent benefits payable with respectto the wages which were the basis of benefits ofsuch deceased Individual.

(b) There shall be no adjustment or recovery bythe United States in any case where incorrect pay-ment has been made to an individual who is with-out fault (including payments made prior to Jan-uary 1, 1940), and where adjustment or recoverywould defeat the purpose of sections 401-409 of thistitle or would be against equity and good conscience.

(c) No certifying or disbursing officer shall be heldliable for any amount certified or paid by him toany person where the adjustment or recovery ofsuch amount Is waived under subsection (b), orwhere adjustment under subsection (a) Is not com-pleted prior to the death of all persons againstwhose benefits deductions are authorized. (Aug.14, 1935, ch. 531, title II, § 204, 49 Stat. 624; Aug.10, 1939, ch. 666, title II, § 204, 53 Stat. 1368.)

EFFcTrIvE DATEAmendment by act August 10, 1939, cited to text, was

made effective January 1, 1040 by section 201 of said act.

§105. Evidence, procedure, and certification for pay-

ment.

(a) The Board shall have full power and authorityto make rules and regulations and to establish pro-cedures, not inconsistent. with the provisions of sec-tions 401-409 of this title, which are necessai; orappropriate to carry out such provisions, and shalladopt reasonable and proper rules and regulationsto regulate and provide for the nature and extentof the proofs and evidence and the method of tak-ing and furnishing the same in order to establishthe right to benefits hereunder.

(b) The Board is directed to make findings offact, and decisions as to the rights of any Individual

applying for a payment under sections 401-409 ofthis title. Whenever requested by any such inidi-vidual or whenever requested by a wife, widow,child, or parent who makes a showing in writingthat his or her rights may be prejudiced by any deci-sion the Board has rendered, it shall give such ap-plicant and such other Individual reasonable noticeand opportunity for a hearing with respect to suchdecision, and, if a hearing is held, shall, on the basisof evidence adduced at the hearing, affirm, modify,or reverse its findings of fact and such decision.The Board Is further authorized, on its own motion,to hold such hearings and to conduct such Investi-gations and other proceedings as it may deemnecessary or proper for the administration of sec-tions 401-409 of this title. In the course of anyhearing, investigation, or other proceeding, it mayadminister oaths and affirmations, examine wit-nesses, and receive evidence. Evidence may be re-ceived at any hearing before the Board even thoughinadmissible under rules of evidence applicable tocourt procedure.

(c) (1) On the basis of information obtained by orsubmitted to the Board, and after such verificationthereof as it deems necessary, the Board shall estab-lish and maintain records of the amounts of wagespaid to each Individual and of the periods in whichsuch wages were paid and, upon request, shall in-form any individual, or after his death shall Informthe wife, child, or parent of such individual, of theamounts of wages of such individual and the periodsof payments shown by such records at the time ofsuch request. Such records shall be evidence, forthe purpose of proceedings before the Board or anycourt, of the amounts of such wages and the periodsIn which they were paid, and the absence of anentry as to an individual's wages in such records forany period shall be evidence that no wages were paidsuch individual In such period.

(2) After the expiration of the fourth calendaryear following any year in which wages were paidor are alleged to have been paid an Individual, therecords of the Board as to the wages of such Indi-vidual for such year and the periods of paymentshall be conclusive for the purposes of sections 401-409 of this title, except as hereafter provided.

(3) 1), prior to the expiration of such fourth year.It Is brought to the attention of the Board that anyentry of such wages in such records Is erroneou,, orthat any Item of such wages has been omitted fromthe records, the Board may correct such entry orinclude such omitted item in its records, as the casemay be. Written notice of any revision of any suchentry, which is adverse to the interests of any indi-vidual, shall be given to such individual, in any casewhere such Individual has previously been notifiedby the Board of the amount of wages and of theperiod of payments shown by such entry. Uponrequest in writing made prior to the expiration ofsuch fourth year, or within sixty days thereafter,the Board shall afford any individual, or after hisdeath shall afford the wife, child, or parent of suchindividual, reasonable notice and opportunity forhearing with respect to any entry or alleged omis-sion of wages of such individual in such records, orany revision of any such entry. If a hearing Is

Page 354611 404


held, the Board shall make findings of fact and adecision based upon the evidence adduced at suchhearing and shall revise its records as may be re-quired by such findings and decision.

(4) After the expiration of such fourth year, theBoard may revise any entry or include in its rec-ords any omitted item of wages to conform its rec-ords with tax retarns or portions of tax returns(including information returns and other writtenstatements) filed with the Commissioner of Inter-nal Revenue under sections 1001-1011 of this titleor sections 1400-1403, 1410, 1411, 1420-1432 of Title26 or under regulations made under authoritythereof. Notice shall be given of such revision un-der such conditions and to such individuals as isprovided for revisions under paragraph (3) of thissubsection. Upon request, notice and opportunityfor hearing with respect to any such entry, omis-sion, or revision, shall be afforded under such con-ditions and to such individuals as is provided inparagraph (3) hereof, but no evidence shall be in-troduced at any such hearing except with respectto conformity of such records with such tax returnsand such other data submitted under such sections1001-1011 of this title or sections 1400-1403, 1410,1411, 1420-1432 of Title 20 or under such regulations.

(5) Decisions of the Board under this subsectionshall be reviewable by commencing a civil action inthe district court of the United States as providedin subsection (g) hereof.

(d) For the purpose of any hearing, Investigation,or other proceeding authorized or directed undersections 401-409 of this title, or relative to any othermatter within its Jurisdiction hereunder, the Boardshall have power to issue subpenas requiring the at-tendance and testimony of witnesses and the pro-duction of any evidence that relates to any matterunder investigation or in question before the Board.Such attendance of witnesses and production ofevidence at the designated place of such hearing,investigation, or other proceeding may be requiredfrom any place in the United States or in any Ter-ritory or possession thereof. Subpenas of the Boardshall be served by anyone authorized by it (1) bydelivering a copy thereof to the individual namedtherein, or (2) by registered mail addressed to suchindividual at his last dwelling place or principalplace of business. A verified return by the Indi-vidual so serving the subpena setting forth the man-ner of service, or, in the case of service by registeredmail, the return post-office receipt therefor signedby the individual so served, shall be proof of service.Witnesses so subpenaed shall be paid the same feesand mileage as are paid witnesses in the districtcourts of the United States.

(e) In case of contumacy by, or refusal to obey asubpena duly served upon, any person, any districtcourt of the United States for the judicial districtin which said person charged with contumacy orrefusal to obey is found or resides or transacts busi-ness, upon application by the Board, shall have jur-isdiction to Issue on' order requiring such person toappear and give testimony, or to appear and pro-duce evidence, or both; any failure to obey suchorder of the court may be punished by said courtas contempt thereof.

(f) No person so subpenaed or ordered shall beexcused from attending and testifying or from pro-ducing books, records, correspondence, documents,or other evidence on the ground that the testimonyor evidence required of him may tend to incriminatehim or subject him to a penalty or forfeiture; butno person shall be prosecuted or subjected to anypenalty or forfeiture for, or on account of, anytransaction, matter, or thing concerning which heis compelled, after having claimed his privilegeagainst self-incrimination, to testify or produce evi-dence, except that such person so testifying shallnot be exempt from prosecution and punishment forperjury committed in so testifying.

(g) Any individual, after any final decision of theBoard made after a hearing to which he was a party,irrespective of the amount in controversy. may ob-tain a review of such decision by a civil action com-menced within sixty days after the mailing to himof notice of such decision or within such furthertime as the Board may allow. Such action shall bebrought in the district court of the United Sttesfor the judicial district in which the plaintiff resides,or has his principal place of business, or, if he doesnot reside or have his principal place of businesswithin any such judicial district, in the DistrictCourt of the United States for the District of Colum-bia. As part of its answer the Board shall file acertified copy of the transcript of the record in-cluding the evidence upon which the findings anddecision complained of are based. The court shallhave power to enter, upon the pleadings and tran-script of the record, a Judgment affirming, modify-ing, or reversing the decision of the Board, with orwithout remanding the cause for a rehearing. Thefindings of the Board as to any fact, if supportedby substantial evidence, shall be conclusive, andwhere a claim has been denied by the Board or adecision is rendered under subsection (b) hereofwhich is adverse to an individual who was a partyto the hearing before the Board, because of failureof the claimant or such individual to submit proofin conformity with any regulation prescribed undersubsection (a) hereof, the court shall review onlythe question of conformity with such regulations andthe validity of such regulations. The court shall,on motion of the Board made before it files its an-swer, remand the case to the Board for furtheraction by the Board, and may, at any time, on goodcause shown, order additional evidence to be takenbefore the Board, and the Board shall, after thecase Is remanded, and after hearing such additionalevidence if so ordered, modify or affirm its findingsof fact or its decision, or both, and shall file withthe court any such additional and modified find-ings of fact and decision, and a transcript of theadditional record and testimony upon which itsaction In modifying or affirming was based. Suchadditional or modified findings of fact and decisionshall be reviewable only to the extent provided forreview of the original findings of fact and decision.The judgment of the court shall be final except thatit shall be subject to review in the same manner asa Judgment in other civil actions.

(h) The findings and decision of the Board aftera hearing shall be binding upon all Individuals who,

1405Page 35%/7


were parties to such hearing. No findings of factor decision of the Board shall be reviewed by anypeison, tribunal, or governmental agency exceptas herein piovided. No action against the UnitedStates, the Board, or any officer or employee thereofshall be brought under section 41 of Title 28 torecover on any claim arising under sections 401-409of this title.

(I) Upon final decision of the Board, or uponfinal Judgment of any court of competent jurisdic-tion, that any person is entitled to any payment orpayments under sections 401-409 of this title, theBof,rd shall certify to the Managing Trustee thename and address of the person so entitled toreceive such payment or payments, the amount ofsuch payment or payments, and the time at whichsuch payment or payments should be made, andthe Managing Trustee, through the Division of Dis-bursement of the Treasury Department, and priorto any action thereon by the General AccountingOffice, shall make payment in accordance with thecertification of the Boaid: Provided, That where areview of the Board's decision is or may be soughtunder subsection (g) the Board may withholdcertification of payment pendhig such review. TheManaging Trustee shall not be held personally liablefor any payment or payments made in accordancewith a certification by the Board.

(j) When it appears to the Board that the inter-est of an applicant entitled to a payment would ',--served thereby, certification of payment may bemade, regardless of the legal competency or incom-petency of the individual entitled thereto, eitherfor direct payment to such applicant, or for hisuse and benefit to a relative or some other person.

(k) Any payment made after December 31, 1939,under conditions set forth in subsection (j), anypayment nmade before January 1, 1940, to, or onbehalf of, a legally incompetent individual, and anypayment made after December 31, 1939, to a legallyincompetent individual without knowledge by theBoard of incompetency prior to certification of pay-ment, if otherwise valid under sections 401-409 ofthis title, shall be a complete settlement and satis-faction of any claim, right, or interest in and tosuch payment.

(1) The Board is authorized to delegate to anymember, officer, or employee of the Board dcsig-nated by it any of the powers conferred upon it bythis section, and is authorized to be represented byits own attorneys in any court in any case or pro-ceeding arising under the provisions of subsec-tion (e).

(in) No application for any benefit under sections401-409 of this title filed prior to three monthsbefore the first month for which the applicant be-comes entitled to receive such benefit shall be ac-cepted as an application for the purposes ofsections 401-409 of this title.

(n) The Board may, in Its discretion, certify tothe Managing Trustee any two or more individualsof the same family for Joint payment of the totalbenefits payable to such individuals. (Aug. 14, 1935,ch. 531, title II, § 205, 49 Stat. 624; Aug. 10, 1939,ch. 666, title II, § 205, 53 Stat. 1368.)

1So in original. Probably should read an".

EFFcT-rivE DATz

Amendment by act Augut 10, 1039, cited to text, wasmade effective January 1, 1940, by section 201 of said hct.

§.06. Represeniation of claimants before the Board.

The Board may prescribe rules and regulationsgoverning the recognition of agents or other per-sons, other than attorneys as hereinafter provided,representing claimants before the Board, and mayrequire of such agents or other persons, before beingrecognized as representatives of claimants that theyshall show that they are of good character and ingood repute, possessed of the necessary qualifica-tions to enable them to render such claimants valu-able service, and otherwise competent to advise andassist such claimants in the presentation of theircases. An attorney in good standing who is ad-mitted to practice before the highest court of theState, Territory, District, or insular possession ofhis residence or before the Supreme Court of theUnited States or the inferior Federal courts, shallbe entitled to represent claimants before the Boardupon filing with the Board a certificate of his rightto so practice from the presiding judge or clerk ofany such court. The Board may, after due noticeand opportunity for hearing, suspend or prohibitfrom further practice before it any such person,agent, or attorney who refuses to comply with theBoard's rules and regulations or who violates anyprovision of this section for which a penalty is pre-scribed. The Board may, by rule and regulation,prescribe the maximum fees which may be chargedfor services performed in connection with any claimbefore the Board under sections 401-409 of thistitle, and any agreement in violation of such rulesand regulations shall be void. Any persnn whoshall, with intent to defraud, in any manner will-fully and knowingly deceive, mislead, or threatenany claimant or prospective claimant or beneficiaryunder sections 401-409 of this title by word, circular,letter or advertisement, or who shall knowinglycharge or collect directly or indirectly any fee inexcess of the maximum fee, or make any agreementdirectly or indirectly to charge or collect any feein excess of the maximum fee, prescribed by theBoard shall be deemed guilty of a misdemeanor and,upon conviction thereof, shall for each offense bepunished by a fine not exceeding $500 or by impris-onment not exceeding one year, or both. (Aug. 14,1935, ch. 531, title II, § 206, 49 Stat. 624; Aug. 10,1939, ch. 666, title II, § 206, 53 Stat. 1372.)

EFFEcTIVE DATE

Amendment by act August 10, 1939, cited to text, wasmade effective January 1, 1940, by section 201 of said act.

§ 407. Assignment.The right of any person to any future payment

under sections 401-409 of this title shall not betransferable or assignable, at law or in equity, andnone of the moneys paid or payable or rights exist-ing under sections 401-409 of this title shall be sub-ject to execution, levy, attachment, garnishment, orother legal process, or to the operation of any bank-ruptcy or insolvency law. (Aug. 14, 1935, ch. 531,title II, § 207, 49 Stat. 624; Aug. 10, 1939, ch. 666,title II. § 207, 53 Stat. 1372.)

§ 406 Page 3548

TITLE 42.-THE PUBLIC HEALTH4

EFFrcvE DATE

Amendment by act August 10, 1939, cited to text, wsmade effective January 1, 1940, by section 201 of said act.

§ 408. Penalties.Whoever, for the purpose of caasing an increase

in any payment authorized to be made under sec-tions 401-409 of this title, or for the purpose ofcausing any payment to be made where no pay-ment is authorized under sections 401-409 of thistitle, shall make or cause to be made any falsestatement or representation (including any falsestatement or representation in connection with anymatter arising under sections 1400-1403, 1410, 1411,1420-1432 of Title 26) as to the amount of any wagespaid or received or the period during which earnedor paid, or whoever makes or causes to be made anyfalse statement of a material fact in any applica-tion for any payment under sections 401-409 of thistitle, or whoever makes or causes to be made anyfalse statement, representation, affidavit, or docu-merit in connection with such an application, shallbe guilty of a misdemeanor and upon convictionthereof shall be fined not more than $1,000 or im-prisoned for not more than one year, or both.(Aug. 14, 1935, ch. 531, title II, § 208, 49 Stat. 625;Aug. 10, 1939, ch. 666, title II, § 208, 53 Stat. 1372.)

EFFECTIVE DATE


§ 409. Definitions.

When used in sections 401-409 of this title-(a) The term "wages" means all remuneration

for employment, including the cash value of all re-muneration paid in any medium other than cash;except that such term shall not include-

(1) That part of the remuneration which, afterremuneration equal to $3,000 has been paid to anindividual by an employer with respect to employ-ment during any calendar year prior to 1940, Is paidto such individual by such employer with respectto employment during such calendar year;

(2) That part of the remuneration which, afterremuneration equal to $3,000 has been paid to anindividual with respect to employment during anycalendar year after 1939, is paid to such individualwith respect to employment during such calendaryear;

(3) The amount of any payment made to, or onbehalf of, an employee under a plan or system es-tablished by an employer which makes provisionfor his employees generally or for a class or classesof his employees (including any amount paid by anemployer for insurance or annuities, or into a fund,to provide for any such payment), on account of(A) retirement, or (B) sickness or accident disabil-ity, or (C) medical and hospitalization expenses inconnection with sickness or accident disability, or(D) death, provided the employee (i) has not theoption to receive, instead of provision for such der thbenefit, any part of such payment or, if such deathbenefit is insured, any part of the premiuns (orcontributions to premiums) paid by his employer,and (i) has not the right, under the provisions ofthe plan or system or policy of insurance providing

for such death benefit, to assign such benefit, or toreceive a cash consideration in lieu of such benefiteither upon his withdrawal from the plan or sys-tern providing for such benefit or upon terminationof such plan or system or policy of insurance or ofhis employment with such employer;

(4) The payment by an employer (without deduc-tion from the remuncration of the employee) (A)of the tax imposed upon an employee under section1400 of Title 26 or (B) of any paynent rquired froman employee under a State unemploynent compen-sation law;

(5) Dismissal payments which the employer is notlegally required to make; or

(6) Any remuneration paid to an individual priorto January 1, 1937.

(b) The term "employment" means any serviceperformed after December 31, 1936, and prior toJanuary 1, 1940, which was employment as definedin section 410 (b) of this chapter prior to January1, 1940 (except service performed by an Individualafter he attained the age of sixty-five if performedprior to January 1, 1939), and any service, of what-ever nature, performed after December 31, 1939,by an employee for the person employing him, irre-spective of the citizenship or residence of either,(A) within the United States, or (B) on or in con-nection with an American vessel under a contractof service which is entered into within the UnitedStates or during the performance of which the vesseltouches at a port in the United States, if the em-ployee is employed on and in connection with suchvessel when outside the United States, except--

(1) Agricultural labor (as defined in subsection(1) of this section);

(2) Domestic service in a private home, local col-lege club, or local chapter of a college fraternity orsorority;

(3) Casual labor not in the course of the em-ployer's trade or business;

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

(5) Service performed or in connection with a ves-sel not an American vessel by an employee, if theemployee is employed on and in connection withsuch vessel when outside the United States;

(6) Service performed in the employ of the UnitedStates Government, or of an instrumentality of theUnited States which Is (A) wholly owned by theUnited States, or (B) exempt from the tax imposedby section 1410 of Title 26 by virtue of any otherprovision of law;

(7) Service performed in the employ of a State, orany political subdivision thereof, or any instrumen-tality of any one or more of the foregoing which iswholly owned by one or more States or political sub-divisions; and any service performed in the employof any instrumentality of one or more States orpolitical subdivisions to the extent that the instru-mentality is, with respect to such service, immuneunder the Constitution of the United States fromthe tax imposed by section 1410 of Title 26;

(8) Service performed in the employ of a corpora-tion, community chest, fund, or foundation, organ-

Page 3549 1409

TITLE 42-THE PUBLIC HEALTHP

lzf.d and operated r-xclusively for religious, charita-ble, ,,cientiflc, literary, or educational purposes, orfor the prevention of cruelty to children or animals,no part of the net earnings of which inures to thebenefit of tiny private shareholder or Individual, andno ,-ubstantlal part of the activities of which iscarrying on liopnlanda, or otherwlic attempting, toInfluence legislation;

(9) Service performed by an individual as an cm-ployee or employee representaitive as defined insection 1532 of Title 26;

(10) (A) Service performed in any calendar quar-ter In the employ of any organization exempt fromincome tax under section 101 of Title 26, if-

(i) the remuneration for such service does not ex-ceed $45, or

(ii) such service Is in connection with the collec-tion of dues or premiums for a fraternql beneficiarysociety, order, or association, and is performed awayfrom the home office, or is ritualistic service in con-nection with any such society, order, or association,or

(iII) such service is performed by a student whois enrolled and is regularly attending classes at a.school, college, or university;

(B) Service perfoimed in the employ of an agri-cultural or horticultural organization exempt fromincome tax under section 101 (1) of Title 26;

(C) Service performed In the employ of a volun-tary employees' beneficiary association providing forthe payment of life, sick, accident, or other benefitsto the members of such association or their de-pendents, if (i) no part of its net earnings inures(other than through such payments) to the bene-fit of any private shareholder or individual, and (ii)85 per centum or more of the income consists ofamounts collected from members for the sole pur-pose of making such payments and meeting ex-penses;

(D) Service performed in the employ of a volun-tary employees' beneficiary association providing forthe payment of life, sick, accident, or other benefitsto the members of such association or their depend-ents or their designated beneficiaries, if (I) admis-sion to membership in such association is limited toindividuals who are officers or employees of theUnited States Government, and (it) no part of thenet earnings of such association Inures (other thanthrough such payments) to the benefit of any pri-vate shareholder or individual;

(E) Service performed in any calendar quarterIn the employ of a school, college, or university, notexempt from income tax under section 101 of title26, if such service Is performed by a student whoIs enrolled and is regularly attending classes at suchschool, college, or university, and the remunerationfor such service does not exceed $45 (exclusive ofloom, board, and tuition);

(11) Service performed in the employ of a for-eign government (including service as a consularor other officer or employee or a nondiplomaticrepresentative) ;

(12) Service performed in the employ of an In-strumentality wholly owned by a foreign govern-ment-

(A) If the service is of a character similar to thatperformed in foreign countries by employees of theUnited States Government or of an Instrumentalitythereof; and

(B) If the Secretary of State shall certify to theSecretary of the Treasui that the foreign govern-ment, with respect to whose instrumentality andemployees theicof exemipion is claimed, grants anequivalent exemption with respect to similar serviceperformed in the foreign country by employees ofthe United States Government and of Instrumen-talities thereof;

(13) Service performed as a student nurse in theemploy of a hospital or a nurses' training school byan individual who is enrolled and is regularly at-tending classes in a nurses' training school char-tered or approved pursuant to State law; and serviceperformed as an interne in the employ of a hos-pital by an individual who has completed a fouryears' course in a medical school chartered or ap-proved pursuant to State law;

(14) Service performed by an individual in (oras an officer or member of the crew of a vessel whileit is engaged in) the catehhg, taking, harvesting,cultivating, or farming of any kind of fish, shellfish,crustacca, sponges, seaweeds, or other aquatic formsof animal and vegetable life (including service per-formed by any such individual as an ordinary inci-dent to any such activity), except (A) service per-formed in connection with the catching or takingof salmon or halibut, for commercial purposes, and(B) service performed on or in connection with avessel of more than ten net tons (determined inthe manner provided for determinirg the registertonnage of merchant vessels under the laws of theUnited States); or

(15) Servi, c performed by an individual under theage of .-lghteei: in the delivery or distribution ofnewspa'3ers or shopping news, not including deliveryor aibtribution to any point for subsequent deliveryor distribution.

(c) If the services performed during one-half ormore of any pay period by an employee for theperson employing him constitute employment, allthe services of such employee for such period shallbe deemed to be employment; but if the servicesperformed during more than one-half of any suchpay period by an employee for the person employinghim do not constitute employment, then none ofthe services of such employee for such period shallbe deemed to be employment. As used in this sub-section the term "pay period" means a period (ofnot more than thirty-one consecutive days) forwhich a payment of remuneration is ordinarilymade to the employee by the person employing him.This subsection shall not be applicable with respectto services performed in a pay period by an em-ployee for the person employing him, where anyof such service is excepted by paragraph (9) of sub-section (b).

(d) The term "American vessel" means any vesseldocumented or numbered under the laws of theUnited States; and Includes any vessel which Isneither documented or numbered under the laws ofthe United States nor documented under the lawsof any foreign country, If its crew Is employed solely

Page 3550§ 409

TITLE 42.-THE PUBLIC HEALTII

by one or more citizens or residents of the unitedStates or corpo.ations organized under the laws ofthe United States or of any State,

(e) The term "primary insure nce benefit" meansan amount equal to t'ae sum of the following-

(1) (A) 40 per centum of the amount of an indi-vidual's average monthly wage if such averagemonthly wage does not exceed $50, or (B) if suchaverage monthly wage exceeds $50, 40 per centumof $50, plus 10 per centum of the amount by whichsuch average monthly wage exceeds $50 and doesnot exceed $250, and

(2) an amount equal to I per centum of theamount computed under parragraph (1) multipliedby the number of years in which $200 or more ofwar.es were paid to such Individual. Where theprimary insurance benefit thus computed is less than$10, such benefit sliall be $10.

(f) The term "average monthly wage" means thequotient obtained by dividing the total wages paidan individual before the quarter in which he diedor became ent"led to receive primary insurancebenefits, whichever first occurred, by three times thenumber of quarters elapsing after 1936 and beforesuch quarter in which he died or became so entitled,excluding any quarter prior to the qu.,rter in whichhe attained the ag, f twenty-two during which hewas pa'd less thai $50 of wages and any quarter,after the quarter in which he attained agesixty-five, occurring prior to 1939.

(g) The term "fully insured individual" meansany individ,,al with respect to whom it appears tothe satisfaction of the Board that,--

(1) Ie had not less than one quarter of coveragefor each two of the quarters elapsing after 1936, orafter the quarter in which he attained the age oftwenty-one, whichever quarter is ]!fr. and up tobut excluding the quartr tr. which he attainedthe age of sixty-five, or died, whichever first oc-curred, and in no case less than six quarters ofcoverage; or

(2) He had at least forty quarters of coverage.As used in this subsection, and in subsection (h)

of this section, the term "quarter" and the term"calendar quarter" mean a period of three calendarmonths ending on March 31, June 30, September 30,or December 31; ani the term "quarter of cover-age" means a calendar quarter in which the indi-vidual has been paid not less than $50 in wages.When the number of quarters specified in paragraph(1) of this subsection is an odd number, for pur-poses of such paragraph such number shall be re-duced by one. In any case where an individual hasbeen paid in a calendar year $3,000 or more inwages, each quarter of such year following his first'uarter of coverage shall be deemed a quarter of

civerage, excepting any quarter in such year inwh.c.h such individual dies or becomes entitled toa primary insurance benefit and any quarter suc-ceeding such quarter in which he died or becameso entitled.

(h) The term "currently insured individual"means any individual with respect to whom it atd-pears to the satisfaction of the Board that he hasbeen paid wages of not less than $50 for each of not

205f58"-41-vol. 3-o

less than six of the twelve calendar quarters, im-mediately preceding the quarter in which he died.

(i) The term "wife" means the wife of an indi-vidual who either (1) is the mother of such indi-vidual's son or daughter, or (2) was mar led to himprior to January 1, 1939, or if later, prior to thedate upon which he attained the age of sixty.

(J) The term "widow" (except when used in sec-tion 402 (g) of this title) means the surviving wifeof an Individual who either (1) is the mother ofsuch individual's son or daughter, or (2) was marriedto him prior to the beginning of the twelfth monthbefore the month in which he died.

(k) The term "child" (except when used In sec-tion 402 (g) of this title) means the child of anIndividual, and the stepchild of an individual bya marriage contracted prior to the date upon whichhe attained the age of sixty and prior to the begin-ning of the twelfth month before the month Inwhich he died, and a child legally adopted by anindividual prior to the date upon which he attainedthe age of sixty and prior to the beginning of thetwel h month before the month In which he died.

(1) The term "agricultural labor" includes allservice performed-

(1) On a farm, In the employ of any person, inconnection with cultivating the soil, or in connec-tion with raising or harvesting any agricultural orhorticultural commodity, including the raising,shearing, feeding, caring for, traiing, and man-agement of livestock, bees, poultry, and fur-bearinganimals and wildlife.

(2) In the employ of the owner or tenant or otheroperator of a farm, in connection with the opera-tion, management, conservation, improvement, ormaintenance of such farm and its tools and equip-ment, or in salvaging timber or clearing land ofbrush and other debris left by a hurricane, if themajor part of such service is performed on a farm.

(3) In connection with the production or harvest-ing of maple sirup or maple sugar or any commoditydefined as an agricultural commodity in section1141j (g) Title 12, as . iended, or In connectionwith the raising or harvesting of mushrooms, or Inconnection with the hatching of poultry, or Im con-nection with the ginning of cotton, or in connectionwith the operation or maintenance of ditches, canals,reservoirs, or waterways used exclusively for supply-ing and storing water for farming purposes.

(4) In handling, planting, drying, packing, pack-aging, processing, freezing, grading, storing, or deliv-ering to storage or to market or to a carrier fortransportation to market, any agricultural or horti-cultural commodity, but only if such service isperformed as an Incident to ordinary farming oper-ations or, in the case of fruits and vegetables, as anincident to the preparation of such fruits or vege-tables for market. The provisions of this palagraphshall not be deemed to be applicable with respect toservice performed in connection with commercialcanning or commercial freezing or in connectionwith any agricultural or horticultural commodityafter its delivery to a terminal market for distiibu-tion for consumption.

As used in this subsection, the term "farm" in-cludes stock, dairy, poultry, fruit, fur-bearing ani-

Page 3551 § 409


real, and truck farms, plantations, ranches,nurser i(.s, ranges, greenhouses or other similar struc-tures us,,d primarily for the raising of agriculturalor hoiticultural commodities, and orchards.

(in) In determining w! ether an applicant is thewife, widow, child, or parent of a fully insured orcurrently ln,,u ed Individual for pulposes of sec-tions 401-409 of this title, the Bord shall applysuch law as would be applied in determining the(hvolution of Intestate personal property by thecourts of the State in which such insured individualis domiciled at the time such applicant files appli-cation, or, if such insured individual is dead, bythe courts of the State in which he wa domiciled atthe time of his death, or If such insured individualis or was not so domiciled in any State, by the courtsof lhe District of Columbia. Applicants who ac-cording to such law would have the same statusrelative to taking intestate personal property asa wife, widow, child, or parent shall be deemed such.

(n) A wife shall be deemed to be living with herhusband if they are both members of the samehousehold, or she is receiving regular contributionsfrom him toward her support, or he has been orderedby any court to contribute to her support; and awidow shall be deemed to have been living with herhusband at the time of his death if they were bothmembers of the same household on the date of hisdeath, or she was receiving regular contributionsfrom him toward her support on such date, or hehid been ordered by any court to contribute to hersupport. (Aug. 14, 1935, ch. 531, title II, § 209, 49Stat. 625; Aug. 10, 1.939, ch. 666, title II, § 209, 53Stat. 1373.)

EFI-rLiVE DATEAmendment by act August 10, 1039, cited to text, was

made effective January 1, 1940, by section 201 of said act.

§ 4110. Definitions.Amendment of sections 401-409 of this title by act Aug.

10, 1930. ch. 660, title II, 53 Stat. 1362, which amendmentwas made effective Ja 1 . 1, 1940, by section 201 of said act,omitted section 410, act Aug. 14, 1935, ch. 531, title II,§ 210, 49 Slat. 625. Definitions are now contained In sec-tion 409 of this title.

§,410a. Limitation on definition of employment.Section, act Aug. 29, 1035, ch. 812, § 17, as amended

June 24, 1937, ch. 382, part I, § 1, 50 Stat. 317, part ofRailroad Retirement Act, limited term "employment" asdefined In section 410, which section 410 was omittedby amendment of title II by act Aug. 10, 1039, ch. 666,title II, k 201, 53 Stat. 1362. Section is set out in Rail-rond Retirement Act as section 228q of Title 45, Railroads.

SUBCHAPTER 111.-GRANTS TO STATES FORUNEMPLOYMENT COMPENSATION ADMINIS-TRATION


For the purpose of assisting the States In theadministration of their unemployment compensa-tion laws, there Is hereby authorized to be appropri-ated for the fiscal year ending June 30, 1936, thesum of $4,000,000, for each fiscal year thereafterup to and including the fiscal year ending June 30,1938, the sum of $49,000,000, and for the fiscal yearending June 30, 1939, and for each fiscal year there-after, the sum of $80,000,000, to be used as herein-

after provided. (Aug. 14, 1935, ch. 531, title III,1 301, 49 Stat. 626; Apr. 19, 1939, ch. 73, 53 Stat.581.)

§502. Payments to States; computation of amounti.

(a) The Board shall from time to time certify tothe Secretary of the Treasury for payment to eachState which has an unemployment compensationlaw approved by the Board under sections 1600-1611of Title 26, such amounts as the Board determinesto be necessary for the proper and efficient admin-istration of such law during the fiscal year for whichsuch payment is to be made. The Board's deter-mination shall be based on (1) the population ofthe State; (2) an estimate of the number of personscovered by the State law and of the cost of properand efficient administration of such law; and (3)such other factors as the Board finds relevant. TheBoard shall not certify for payment under thissection in any fiscal year a total amount In excessof the amount appropriated therefor for such fiscalyear.

(b) Out of the sums appropriated therefor, theSecretary of the Treasury shall, upon receiving acertification under subsection (a), pay, through theFiscal Service of the Treasury Department andprior to audit or settlement by the General Account-ing Office, to the State agency charged with theadministration of such law the amount so certified.(Aug. 14, 1935, ch. 531, title III, § 302, 49 Stat. 626;Aug. 10, 1939, ch. 666, title III, § 301, 53 Stat. 1378;Reorg. Plan No. III, § 1 (a), eft. June 30, 1940, 5Fed. Reg. 2107, 54 Stat. 1231.)

TRANSFER OF FUNCTIONS

Division of Disbursement and certain other offices andagencies and their functions were consolidated into FiscalService of Treasury Department by Reorg. Plan No. III,§ 1 (n), cited to text, set out in note under section 133tof Title 5, Executive Departments and Government Offi-cers and Employees.

CROSS RMERENCEWithholding amounts from certiflcntion for payment

see note under section 363 of Title 45, Railroads.

§ 503. State laws, provisions required; stopping pay-ments on failure to comply with law.

(a) The Board shall make no certification forpayment to any State unless it finds that the lawof such State, approved by the Board under sections1600-1611 of Title 26, includes provision for-

(1) Such methods of administration (includingafter January 1, 1940, methods relating to the es-tablishment and maintenance of personnel stand-ards on a merit basis, except that the Board shallexercise no authority with respect to the selection,tenure of office, and compensation of any individualemployed in accordance with such methods) as arefound by the Board to be reasonably calculated toInsure full payment of unemployment compensa-tion when due; and

(2) Payment of unemployment compensationsolely through public employment offices or suchother agencies as the Board may approve; and

(3) Opportunity for a fair hearing, before an im-partial tribunal, for all Individuals whose claimsfor unemployment compensation are denied; and

! 410 Page 3552

Tae5= 42.-TIIE PUBLIC HEALTH6

(4) The payment of all money received in the un-employment fund of such State (except for refundsof sums erroneously paid into such fund and exceptfor refunds paid in accordance with the provisionsof section 1606 (b) of Title 26). immediately uponsuch receipt, to the Secretary of the Treasury tothe credit of the unemployment trust fund estab-lished by section 1104 of this title; and

(5) Expenditure of all money withdrawn froman unemployment fund of such State, in the pay-ment of unemployment compensation, exclusive ofexpenses of administration, and for refunds of sumserroneously paid into such fund and refunds paid inaccordance with the provisions of section 1606 (b)of Title 26; and

(6) The making of such reports, in such form andcontaining such information, as the Board may fromtime to time require, and compliance with suchprovisions as the Boaid may from time to time findnecessary to assure thi correctness and verificationof such reports* and

(7) Making available upon request to any agencyof the United States charged with the administra-tion of public works or assistance through publicemployment, the name, address, ordinary occupa-ticn and employment status of each recipient ofunemployment compensation, and a statement ofsuch recipient's rights to further compensationunder such law; and

(8) Effective July 1, 1941, the expenditure of allmoneys received pursuant to section 502 of this titlesolely for the purposes and in the amounts foundnecessary by the Board for the proper and efficientadministration of such State law; and

(9) Effective July 1, 1941, the replacement, withina reasonable time, of any moneys received pursu-ant to section 502 of this title, which, because ofany action or contingency, have been lost or havebeen expended for purposes other than, or inamounts in excess of, those found necessary by theBoard for the proper administration of such Statelaw.

(b) Whenever the Board, after reasonable noticeand opportunity for hearing to the State agencycharged with the administration of the State law,finds that in the administration of the law there Is-

(1) a denial, in a substantial number of cases, ofunemployment compensation to individuals entitledthereto under such law; or

(2) a failure to comply substantially with anyprovision specified in subsection (a);

the Board shall notify such State agency that fur-ther payments will not be made to the State untilthe Board is satisfied that there is no longer anysuch denial or failure to comply. Until it is sosatisfied it shall make no further certification to theSecretary of the Treasury with respect to suchState.

(c) The Board shall make no certification forpayment to any State if it finds, alter reasonablenotice and opportunity for hearing to the Stateagency charged with the administration of the Statelaw-

(1) That such State does not make its recordsavailable to the Railroad Retirement Board, and

furnish to the Raiload Retirement Board at theexpense of the Railroad Retirement Board suchcopies thereof as the Railroad Retirement Boarddecams necessary for its purposes; or

(2) That such State is failing to afford reasonablecooperation with every agency of the United Statescharged with the administration of any inenmploy-ment insurance law. (Aug. 14, 1935, ch. 531, titleIII, § 303, 49 Stat. 626: June 25, 1938, ch. 680, § 13(g), 52 Stat. 1112; June 20, 1939, ch. 227, § 18, 53Stat. 848; Aug. 10, 1939, ch. 666, title III, 1302, 53Stat. 1378.)

CROSq RFFERENcrE

Withdrawal as breach of conditions, see note uIiidersection 363 of Title 45, Railroads.

SUBCHAPTER IV.-GRANTS TO STATES FPORAID TO DEPENDENT CHILDREN


For the purpose of enabling each State to furnishfinancial assistance, as far as practicable under theconditions in -uch State, to needy dependent chil-dren, there is hereby authorized to be appropriatedfor the fiscal year ending June 30, 1936, the sum of$24,750,000, and there is hereby authorized to beappropriated for each fiscal year thereafter a sumsufficient to carry out the purposes of sections 601-606 of this title. The sums made available und.!rthis section shall be used for making payment , toStates which have submitted, and had approve bythe Bo, rd, State plans for aid to dependent chil-dren. (Aug. 14, 1935, ch. 531, title IV, § 401, 49 Stat.627.)

§ 602. State plans for aid to dependent ehildren; con.tents; approval by Board.

(a) A State plan for aid to dependent childrenmust (1) provide that it shall be in effect in allpolitical subdivisions of the State, and, If adminis-tered by them, be mandatory upon them; (2) providefor financial participation by the State; (3) eitherprovide for the establ-liment or designation of asingle State agency to administer the plan, or pro-vide for the establishment or designation of a singleState agency to supervise the administration of theplan; (4) provide for granting to any individual,whose claim with respect to aid to a dependent childis denied, an opportunity for a fair hearing beforesuch State agency; (5) provide such methods ofadministration (including after January 1, 1940,methods relating to the establishment and mainte-nance of personnel standards on a merit basis, ex-cept that the Board shall exercise no authority withrespect to the selection, tenure of office, and com-pensation of any individual employed in accordancewith such methods) as are found by the Board tobe necessary for the proper and efficient operationof the plan; and (6) provide that the State agencywill make such reports, in such form and contain-ing such information, as the Board may from timeto time require, and comply with such provisionsas the Board may from time to time find necessaryto assure the correctness and verification of suchreports; (7) provide that the State agency shall,

Page 3553 1 602


In determining need, take into consideration anyother income and resources of any child claimingaid to dependent children; and (8) provide safe-gluai d which restrict the use or disclosure of in-formation concerning applicants and recipients topuipose:, directly connected with the administrationof aid to dependent children.

(b) The Board shall approve any plan which ful-fills the conditions specifled In subscction (a), ex-cept that it shall not approve any plan whichImposes as a condition of eligibility for aid to de-pendent children, a residence requirement %hichdenies aid with respect to any child residing In theSlate (1) who has resided in the State for one yearImnmediately preceding the application for suchaid, or (2) who was born within the State withinone year immediately preceding the application, ifits mother has resided in the State for one yearImmediately preceding the birth. (Aug. 14, 1935,ch. 531, title IV, § 402, 49 Stat. 627; Aug. 10, 1939, ch.666, title IV, § 401, 53 Stat. 1379.)

EFMrtTiVE DATE

Amendment by act Aug 10, 1939, ci'ed to text, addingclauses (7) and (8) was made effective July 1, 19.1. bysection 401 (b) of said act. Clause (5) was amended byaid nct without Epecific provibion as to effective date.

603. Payment to States; computation of amounts.

(a) From the sums appropriated therefor, theSecretary of the Treasury shall pay to each Statewhich has an approved plan for aid to dependentchildren, for each quarter, beginning with the quar-

ter commencing July 1, 1935, an amount, which shallbe used exclusively for carrying out the State plan,equal to one-half of the total of the sums expendedduring such quarter under such plan, not countingso much of such expenditure with respect to anydependent child for any month as exceeds $18, orif there is more than one dependent child in thesame home, as exceeds $18 for any month withrespect to one such dependent child and $12 for

such month with respect to each of the other

dependent children.(b) The method of computing and paying such

amounts shall be as follows:(1) The Board shall, prior to the beginning of

each quarter, estimate the amount to be paid to the

State for such quarter under the provisions of sub-section (a), such estimate to be based on (A) a re-port filed by the State containing its estimate of thetotal sum to be expended In such quarter in accord-ance with the provisions of such subsection andstating the amount appropriated or made availableby the State and its political subdivisions for suchexpenditures in such quarter, and if such amount isless than one-half of the total sum of such estimatedexpenditures, the source or sources from which thedifference is expected to be derived, (B) recordsshowing the number of dependent children in theState, and (C) such other investigation as the Boardmay find necessary.

(2) The Board shall then certify to the Secretaryof the Treasury the amount so estimated by theBoard, (A) reduced or increased, as the case maybe, by any sum by which it finds That its estimatefor any prior quarter was greater or less than the

amount which should have been paid to the Statefor such quarter, and (B) reduced by a sum equiva-lent to the pro rata share to which the United Statesis equitably entitled, as determined by the Board,of the net amount recovered during any prior quar-ter by the State or any political subdivision thereofwith respect to aid to dependent children furnishedunder the State plan; except that such increases orreductions shall not be made to the extent that suchsums have been applied to make the amount certi-'ied for any prior quarter greater or less than theamount estimated by the Board for such priorquarter.

(3) The Secretary of the Treasury shall there-upon, through the Fiscal Service of the TreasuryDepartment and prior to audit or settlement bythe General Accounting Office, pay to the State, atthe time or times fixed by the Board, the amount socertified. (Aug. 14, 1935, ch. 531, title IV, § 403, 49Stat. 628; Aug. 10, 1939, ch. 666, title IV, § 402, 53Stat. 1380; Reorg. Plan No. III, § 1 (a), eft. June 30,1940, 5 Fed. Reg. 2107, 54 Stat. 1231.)

EvrEcTiVE DATE

Amendment by act Aug. 10, 1939, cited to text, wasmade effective Jan. 1, 1940, by section 402 of said act.

TRANSFm or FUNCTIONS

Division of Disbursement and certain other offices andagencies and their functions were consolidated Into Fis-cal Service of Treasury Department by Reorg. Plan No.Ifl, § 1 (a), cited to text, set out in note under section133t of Title 5, Executive Departments and GovernmentOfflccrs and Employees.

§ 604. Stopping payments on devialion from required

provisions of plan or failure to comply therewith.

In the case of any State plan for aid to dependentchildren which has been approved by the Board, ifthe Board, after reasonable notice and opportunityfor hearing to the State agency administering orsupervising the administration of such plan, finds-

(1) that the plan has been so changed as to imposeany residence requirement prohibited by section 602(b) of this title, or that in the administration ofthe plan any such prohibited requirement is im-posed, with the knowledge of such State agency, ina substantial number of cases; or

(2) that in the administration of the plan thereis a failure to comply substantially with any provi-sion required by section 602 (a) of this title to beIncluded in the plan;

the Board shall notify su.,i State agency thatfurther payments will not be made to the Stateuntil the Board is satisfied that such prohibited re-quirement is no longer so Imposed, and that thereis no longer any such failure to comply. Until it isso satisfied it shall make no further certificationto the Secretary of the Treasury with respect tosuch State. (Aug. 14, 1935, ch. 531, title IV, § 404,49 Stat. 628.)


Section, act A1ug. 14, 1935, ch. 531, title IV, § 405, 49Stat. 629, made an appropriation of $250,000 for the fiscalyear which ended June 30, 1936, to defray expenses ofthe Board under sections 601-605 of this title,

1603 Page 3554


§ 606. Definitions.When used in sections 601-605 of this title-(a) The term "dependent child" means a needy

child under the age of sixteen, or under the age ofeighteen if found by the State agency to be regularlyattending school, who has been deprived of parentalsupport or care by reason of the death, continuedabsence from the home, or physical or mental in-capacity of a parent, and who is living with hisfather, mother, grandfather, grandmother, brother,sister, stepfather, stepmother, stepbrother, stepsis-ter, uncle, or aunt, in a place of residence maintainedby one or more of such relatives as his or their ownhome;

(b) The term "aid to dependent children" meansmoney payments with respect to a dependent childor dependent children. (Aug. 14, 1935, ch. 531, titleIV, § 406, 49 Stat. 629; Aug. 10, 1939, ch. 666, title IV,§ 403, 53 Stat. 1380.)SUBCHAPTER V.-GRANTS TO STATES FOR

MATERNAL AND CHILD WELFARE

MATERNAL AND CHILD HIEALTH SERVICES

§ 701. Appropriation.For the purpose of enabling each State to extend

and improve, as far as practicable under the condi-tions in such State, services for promoting thehealth of mothers and children, especially in ruralareas and in areas suffering from severe economicdistress, there is hereby authorized to be appropri-ated for each fiscal year, beginning with the fiscalyear ending June 30, 1936, the sum of $5,820,000.The sums made available under this section shallbe used for making payments to States which havesubmitted, and had approved by the Chief of theChildren's Bureau, State plans for such services.(Aug. 14, 1935, ch. 531, title V, § 501, 49 Stat. 629;Aug. 10, 1939, ch. 666, title V, § 501, 53 Stat. 1380.)

§ 702. Allotments to States.,a) Out of the sums appropriated pursuant to

section 701 of this title for each fiscal year the Sec-retary of Labor shall allot to each State $20,000,and such part of $2,800,000 as he finds that the num-ber of live births in such State bore to the totalnumber of live births in the United States, in thelatest calendar year for which the Bureau of theCensus has available statistics.

(b) Out of the sums appropriated pursuant tosection 701 of this title for each fiscal year the See-retary of Labor shall allot to the States $1,980,000(in addition to the allotments made under subsec-tion (a)), according to the financial need of eachState for assistance in carrying out its State plan,as determined by him after taking into considerationthe number of live births in such State.

(c) The amount of any allotment to a State un-der subsection (a) for any fiscal year remainingunpaid to such State at the end of such fiscal yearshall be available for payment to such State undersection 704 of this title until the end of the secondsucceeding fiscal year. No payment to a State un-der section 704 of this title sha!1 be made out of itsallotment for any fiscal year until its allotment forthe preceding fiscal year has been exhausted or has

ceased to be available. (Aug. 14, 1935, ch. 531, titleV. § 502, 49 Stat. 629; Aug. 10, 1039, ch. 666, title V.§ 502, 53 Stat. 1380.)

§703. State plans; contents; approval by Chief ofChildren s Bureau.

(a) A State plan for maternal and child-healthservices must (1) provide for financial participationby the State; (2) provide for the administration ofthe plan by the State health agency or the super-vision of the administration of the plan by the Statehealth agency; (3) provide such methods of admin-istration (including after January 1, 1940, methodsrelating to the establishment and maintenance ofpersonnel standards on a merit basis, except thatthe Board shall exercise no authority with respectto the selection, tenure of office, and compensationof any Individual employed in accordance withsuch methods) as are necessary for the pioper andefficient operation of the plan; (4) provide that theState health agency will make such reports, in suchform and containing such information, as the Sec-retary of Labor may from time to time require, andcomply with such provisions as he may from time totime find necessary to assure the correctness andverification of such reports; (5) provide for the ex-tension and improvement of local maternal andchild-health services administered by local child-health units; (6) provide for cooperation with mIeo-ical, nursing, and welfare groups and organizations;and (7) provide for the development of demonstra-tion services in needy areas and among groups inspecial need.

(b) The Chief of the Children's Bureau shall ap-prove any plan which fulfills the conditions specifiedin subsection (a) and shall thereupon notify theSecretary of Labor and the State health agency ofhis approval. (Aug. 14, 1935, ch. 531, title V, § 503,49 Stat. 630; Aug. 10, 1939, ch. 6C6, title V, § 503,53 Stat. 1380.)

§704. Payment to States; computation of amounts.(a) From the sums appropriated therefor and the

allotments available under section 702 (a) of thistitle, the Secretary of the Treasury shall pay to eachState which has an approved plan for maternal andchild-health services, for each quarter, beginningwith the quarter commencing July 1, 1935, anamount, which shall be used exclusively for carryingout the State plan, equal to one-half of the totalsum expended during such quarter for carrying outsuch plan.

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

(1) The Secretary of Labor shall, prior to the be-ginning of each quarter, estimate the amount to bepaid to the State for such quarter under the provi-sions of subsection (a), such estimate to be basedon (A) a report filed by the State containing itsestimate of the total sum to be expended in suchquarter in accordance with the provisions of suchsubsection and stating the amount appropriatedor made available by the State and its political sub-divisions for such expenditures in such quarter, andif such amount is less than one-half of the totalsum of such estimated expenditures, the source or

Page 3555 1104

TITLE 42.-T1E PUBLIC HIEALTII

iouicv.:, from which the difference is expected to bederived, and (B) ;,uch Investigation as he may findnece:.ary.

(2) The S-ci (etaiy of Labor ,,hall tlen cei tify theamount so evtimated by him to the Secretary of theTre'[,ury, reduced or increased, as the case may be,by any .sun by wh!ch the Secretary of Labor findsthat his cstinati- Jor any prior quarter was greateror Ies than the amount which should have beenpaid to the State for such quarter, except to the ex-tent that such ,um has been applied to make theamount certified for any prior quarter greater orhcss than the amount estimated by the Secretary ofLabor for such prior quarter.

(3) The Secretnmy of the Treasury shall there-upon, through the Fi.cal Seivice of the TreasuryDepartment and prior to audit or settlement by theGeneral Accounting Office, pay to the State, at thetime or times fixed by the Secretary of Labor, theamount so certified,

(c) The Secretary of Labor shall from time totime certify to the Secretary of the Treasury theamounts to be paid to the States from the allot-ment.s available under section 702 (b) of this title,and the Secretary of the Treasury shall, through theFiscal Service of the Treasury Department and priorto audit or settlement by the General Accounting0fice, make payments of such amounts from suchallotments at the time or times specified by theSecretary of Labor. (Aug. 14, 1935, ch. 531, title V,§ 504, 49 Slat. 630; Reorg. Plan No. III, § 1 (a), eff.June 30, 1940, 5 Fed. Reg. 2107, 54 Stat. 1231.)

TRANSFEI OF FUNCTIONS

Division of Disbursement and certain other offices andagencies and their functions were consolidated intoFiscal Service of Treasury Department by Reorg. PlanNo. III, 1 1 (a), cited to text, set out In note undersection 133t of Title 5, Executive Departments and Gov-ernment Officcrs and Employces,

§704a. Allutments excluded from computation.

An allotment to a State pursuant to section 702(b) of this title shall not be included in computingfor the purposes of subsections (a) and (b) of sec-tion 704 of this title an amount expended or esti-mated to be expended by the State. (June 26, 1940,ch. 428, title I, 54 Stat. 578.)

SIMILAR PROVISIONS

The text of this section was taken from Departmentof Labor Appropriation Act, 1941. Similar provisions werecontained in the following acts:

1939-Aug. 9, 1939, ch. 633, title I, § 1, 53 Stat. 1320.1939-June 20, 1939, ch. 240, § I, 53 Stat. 924.1938-Apr. 27, 1038, ch. 180, title IV, § 1, 52 Stat. 288.1037-June 1G, 1037, eh 359, § 1, title IV, 50 Stat. 301.1936--May 15, 1930, el. 405, § I, 49 Stat. 1350.

CODIFICATION

Section Is not a part of the Social Security Act.

§ 705. Stopping payment on failure to comply with

plan.

In the case of any State plan for maternal andchild-health services which has been approved bythe Chief of the Children's Bureau, if the Secretaryof Labor, after reasonable notice and opportunityfor hearing to the State agency administering orsupervising the administration of such plan, finds

that in the administration of the plan there is afailure to comply substantially with any provisionrequired by section 703 of this title to be includedin the plan, he shall notify such State agency thatfurther payments will not be made to the State untilhe is satisfied that there is no longer any such failureto comply. Until he is so satisfied he shall makeno further certification to the Secretary of theTreasury with respect to such State. (Aug. 14, 1935,ch. 531, title V, § 505, 49 Slat. 631.)

SERVICES FOR CRIPPLED CHILDREN

§ 711. Appropriation.For the purpose of enabling each State to extend

and Impiove (especially in rural areas and in areassuffering from severe economic distress), as far aspracticable under the conditions in such State, serv-ices for locating crippled children, and for providingmedical, surgical, corrective, and other services andcare, and facilities for diagnosis, hospitalization, andaftercare, for children who are crippled or who aresuffering from conditions which lead to crippling,there is hereby authorized to be appropriated foreach fiscal year, beginning with the fiscal year end-ing June 30, 1936, the sum of $3,870,000. The sumsmade available under this section shall be used formaking payments to States which have submitted,and had approved by the Chief of the Children'sBureau, State plans for such services. (Aug. 14,1935, ch. 531, title V, § 511, 49 Stat. 631; Aug. 10,1939, ch, 666, title V, § 504, 53 Stat. 1380.)

§ 712. Allotments to States.(a) Out of the sums appropriated pursuant to sec-

tion 711 of this title for each fiscal year the Secre-tary of Labor shall allot to each State $20,000, and$1,830,000 to the States according to the need ofeach State as determined by him after taking intoconsideration the number of crippled children insuch State in need of the services referred to inIsection 711 of this title and the cost of furnishingsuch services to them.

(b) Out of the sums appropriated pursuant tosection 711 of this title for each fiscal year the Sec-retary of Labor shall allot to the States $1,000,000(in addition to the allotments made under subsec-tion (a)), according to the financial need of eachState for assistance in carrying out its State plan,as determined by him after taking into considera-tion the number of crippled children in such Statein need of the services referred to in section 711 ofthis title and the cost of furnishing such servicesto them.

(c) The amount of any allotment to a State undersubsection (a) for any fiscal year remaining unpaidto such State at the end of such fiscal year shall beavailable for payment to such State under section714 of this title until the end of the second succeed-ing fiscal year, No payment to a State under sec-tion 714 of this title shall be made out of its allot-ment for any fiscal year until its allotment for thepreceding fiscal year has been exhausted or hasceased to be available. (Aug. 14, 1935, ch. 531, titleV, § 512, 49 Stat. 631; Aug. 10, 1939, ch. 666, title V,§ 505, 53 Stat. 1380.)

Page 35561 04a


CROSS REFRENCZ

Certification of available allotments, see section 714 (c)of this title.

§ 713. State plans; contents; approval by Chief of

Children's Bureau.

(a) A State plan for services for crippled childrenmust (1) provide for financial participation by theState; (2) provide for the administration of theplan by a State agency or the supervision 01 theadministration of the plan by a State agency; (3)provide such methods of administration (includingafter January 1, 1940, methods relating to the estab-lishment and maintenance of pursonnel standardson a merit basis, except that the Board shall exer-cise no authority with respect to the selection, ten-ure ot office, and compensation of any individualemployed in accordance with such methods) as arenecessary for the proper and efficient operation ofthe plan (4) provide that the State agency willmake such reports, in such form and containingsuch information, as the Secretary of Labor mayfrom time to time require, and comply with suchprovisions as he may from time to time find neces-sary to 9ssure the correctness and verification ofsuch reports; (5) provide for carrying out the pur-poses specified in section 711 of this title; and (6)provide for cooperation with medical, health, nurs-ing, and welfare groups and organizations and withany agency in such State charged with administer-ing State laws providing for vocational rehabilita-tion of physically handicapped children.

(b) The Chief of the Children's Bureau shall ap-prove any plan which fulfills the conditions specifiedin subsection (a) and shall thereupon notify theSecretary of Labor and the State agency of hisapproval. (Aug. 14, 1935, ch. 531, title V, § 513, 49Stat. 632; Aug. 10, 1939, ch. 666, title V, § 506, 53Stat. 1381.)

§ 714. Payment to States; computation of amounts.

(a) From the sums appropriated therefor and theallotments available under section 712 (a) of thistitle, the Secretary of the Treasury shall pay to eachState which has an approved plan for services forcrippled children, for each quarter, beginning withthe quarter commencing July 1, 1935, an amount,which shall be used exclusively for carrying out theState plan, equal to one-half of the total sum ex-pended during such quarter for carrying out suchplan.


(1) The Secretary of Labor shall, prior to the be-ginning of each quarter, estimate the amount to bepaid to the State for such quarter under the provi-sions of subsection (a), such estimate to be basedon (A) a report filed by the State containing itsestimate of the total sum to be expended in suchquarter in accordance with the provisions of suchsubsection and stating the amount appropriated ormade available by the State and its political subdi-visions for such expenditures in such quarter, and Ifsuch amount is less than one-half of the total sumof such estimated expenditures, the source orsources from which the difference is expected to

be derived, and (B) such Investigation as he mayfind necessary.

(2) The Secretary of Labor shall then certify theamount so estimated by him to tile Secretary of theTreasury, reduced or increased, as the case may be,by any sum by which the Secretary of Labor findsthat his estimate for any prior quarter was greateror less than the amount which should have beenpaid to the State for such quarter, except to theextent that such sum has been applied to make tileamount certified for any prior quarter greater or lessthan the amount estimated by the Secretary ofLabor for such prior quarter.

(3) The Secretary of the Treasury shall there-upon, through the Fiscal Service of the Treasury De-partment and prior to audit or settlement by theGeneral Accounting Office, pay to the State, at thetime or times fixed by the Secretary of Labor, theamount so certified.

(c) The Secretary of Labor shall from time totime certify to the Secretary of the Treasury theamounts to be paid to the States from the allot-ment available tinder section 712 (b) of this title,and the Secretary of the Treasury shall, throughthe Fiscal Service of the Treasury Department, andprior to audit or settlement by the General Account-ing Office, make payments of such amounts fromsuch allotments at the time or times specified by theSecretary of Labor. (Aug. 14, 1935, ch. 531, title V,§ 514, 49 Stat. 632; Aug. 10, 1939, ch. 666, title V,§ 507 (a), (b), 53 Stat. 1381; Reorg. Plan No. III,§ 1 (a) (1), eff. June 30, 1940, 5 Fed. Reg. 2107, 54Stat. 1231.)


Division of Disbursement and certain other officeg andagencics and their functions were consolidated into FiscalService of Treasury Department by Reorg. Plan No, III,§ 1 (a), cited to text, set out In note under iection 133t ofTitle 5, Executive Departments and Government Ofllcersand Employee.s.

§ 715. Stopping payment on failure to comply witih

State plan.

In the case of any State plan for services for crip-pled children which has been approved by the Chiefof the Children's Bureau, if the Secretary of Labor,after reasonable notice and opportunity for hearingto the State agency administering or supervisingthe administration of such plan, finds that in theadministration of the plan there is a failure to com-ply substantially with any provision required bysection 713 of this title to be included in the plan,he shall notify such State agency that further pay-ments will not be made to the State until he issatisfied that there is no longer any such failure tocomply. Until he is so satisfied he shall make nofurther certification to the Secretary of the Treasurywith respect to such State. (Aug. 14, 1935, ch. 531,title V, § 515, 49 Stat. 633.)

ClILD-WELFARE SERVICES

§ 721. Appropriation; allotments to States.

(a) For the purpose of enabling the United States,through the Children's Bureau, to cooperate withState public-welfare agencies in establishing,extending, and strengthening, especially in predom-

1721Page 3557


Inantly jural areas, public-welfare services (here-Inafter In this section referred to as "child-welfarese:vice,,") for the protection and care of homeless,depcndent, and neglected children, and children Indanger of becoming delinquent, there is hereby au-thorized to be appropriated for each fiscal year,beginning with the fiscal year ending June 30, 1936,IlIi, sum of $1,510,000. Such amount shall beallotted by the Secretary of Labor for use by cooper-ating State public-welfare agencies on the basis ofplans developed jointly by the State agency andthe Children's Bureau, to each State, $10,000, andthe i(niatnder to each State on the basis of suchplans, not to exceed such part of the remainder asfihe rial population of such St.ate bears to the totalruial population of the United States. The amountso allotted shall be expended for payment of partof the cost of district, county or other local child-welfare services in areas predominantly rural, andfor developing State services for the encouragementand assistance of adequate methods of communitychild-welfare organization in areas predominantlyrural and other areas of special need. The amountof any allotment to a State under this section forany fiscal year remaining unpaid to such State atthe end of such fiscal year shall be available for pay-ment to such State under this section until the endof the second succeeding fiscal year. No paymentto a State under this section shall be made out ofits allotment for any fiscal year until Its allotmentfor the preceding fiscal year has been exhausted orhas ceased to be available.

(b) From the sums appropriated therefor and theallotments available under subsection (a) the Secre-tary of Labor shall from time to time certify to theSecretary of the Treasury the amounts to be paid tothe States, and the Secretary of the Treasury shall,through the Fiscal Service of the Treasury Depart-ment and prior to audit or settlement by the Gen-eral Accounting Office, make payments of suchamounts from such allotments at the time or timesspecified by the Secretary of Labor. (Aug. 14, 1935,ch. 531, title V, § 521, 49 Stat. 633; Aug. 10, 1939.ch. 666, title V, § 507 (c), 53 Stat. 1381; Reorg. PlanNo. III, § 1 (a) (1), ef. June 30, 1940, 5 Fed. Reg.3107, 54 Stat. 1231.)

TRANSFER OF PUNCTIONS

Division of Disbursement and certain other offices andagencies and their functions were consolidated into FiscalService of Treasury Department by Reorg. Plan No. III,

1 (a), cited to text, set out in note under section 133tof Title 5, Executive Departments and Government Offi-cers and Employees.

ADMINISTR ATION

§ 731. Appropriation for administration.

(a) Executed.(b) The Children's Bureau shall make such studies

and investigations -s will promote the efficient ad-ministration of sections 701-704, 705, 711-715, 721,and 731 of this title.

(c) The Secretary of Labor shall include in hisannual report to Congress a full account of theadministration of sections 701-704, 705, 711-715, 721,and 731 of this title. (Aug. 14, 1935, ch. 531, titleV. § 541, 49 Stat. 634.)

CODIFICATION

Subsection (a) authorized appropriation of $425.000 forChildren's Bureau for fbrcal year ending June 30, 1930.

SUBCHAPTER VI.-PUBI IC HEALTH WORK

§ 801. Appropriation.For the purpose of assisting States, counties, health

districts, and other political subdivisions of theStates in establishing and maintaining adequatepublic health services, including the training of per-sonnel for State and local health work, there ishereby authorized to be appropriated for each fiscalyear, beginning with the fiscal year ending June20, 1940, the sum of $11,000,000 to be used as here-lnaftcr provided. (Aug. 14, 1935, ch. 531, title VI,§ 601, 49 Stat. 634; Aug. 10, 1939, ch. 666, title V,§ 509, 53 Stat. 1381.)

§ 802. Allotment of appropriation to States.

(a) The Surgeon General of the Public HealthService, with the approval of the Federal SecurityAdministrator, shall, at the beginning of each fiscalyear, allot to the States the total of (1) the amountappropriated for such year pursuant to section 801of this title; and (2) the amounts of the allotmentsunder this section for the preceding fiscal year re-maining unpaid to the States at the end of suchfiscal year. The amounts of such allotments shallbe determined on the basis of (1) the population;(2) the special health problems; and (3) the finan-cial needs; of the respective States. Upon makingsuch allotments the Surgeon General of the PublicHealth Service shall certify the amounts thereof tothe Secretary of the Treasury.

(b) The amount of an allotment to any Stateunder subsection (a) for any fiscal year, remainingunpaid at the end of such fiscal year, shall be avail-t.ble for allotment to States under subsection (a)for the succeeding fiscal year, in addition to theamount appropriated for such year.

(c) Prior to the beginning of each quarter ofthe fiscal year, the Surgeon General of the PublicHealth Service shall, with the approval of the Fed-eral Security Administrator, determine in accord-ance with rules and regulations previously prescribedby such Surgeon General after consultation with aconference of the State and Territorial health au-thorities, the amount to be paid to each State forsuch quarter from the allotment to such State, andshall certify the amount so determined to the See-ietary of the Treasury. Upon receipt of such cer-tification, the Secretary of the Treasury shall,through the Fiscal Service of the Treasury Depart-ment and prior to audit or settlement by the GeneralAccounting Office, pay in accordance with suchcertification.

(d) The moneys so paid to any State shall be ex-pended solely in carrying out the purposes specifiedin section 801 of this title, and in accordance withplans presented by the health authority of suchState and approved by the Surgeon General of theP'blic Health Service. (Aug. 14, 1935, ch. 531, titleVI, § 602, 49 Stat. 634; Reorg. Plan No. I, § 201, eff.July 1, 1939, 4 Fed. Reg. 2728, 53 Stat. 1,t24; Reorg,Plan No. ITI, § 1 (a) (1), eft. June 30, 1940, 5 Fed. Reg.2107, 54 Stat. 1231.)

Page 35581 TI 1


TRANsFER OF FUNcTIONs

Division of Disbursement and certain other offlceq andagencies and their functions were consolidated Into FiscalService of Teasury Department by Reorg Plan No. III, 1 1(a), cited to text, tet out in note under section 133t ofTitle 5, Executive Departments and Government Officersand Employees.

Public Health Service and its functions and personneltransferred to Federal Security Agency, see note undersection 2 of this title.

§ 803. Investigations by Public llcalth Service; appro-

priation; annual report to Congress.

(a) There is hereby authorized to be appropriatedfor each fiscal year, beginning with the fiscal yearending June 30, 1936, the sum of $2,000,000 for ex-penditure by the Public Health Service for Investi-gation of disease and problems of sanitation (includ-ing the printing and binding of the findings of suchInvestigations), and for the pay and allowances andtraveling expenses of personnel of the Public HealthService, including commissioned officers, engaged insuch investigations or detailed to cooperate with thehealth authorities of any State in carrying out thepurposes specified in section 801 of this title: Pro-vided, That no personnel of the Public Health Serviceshall be detailed to cooperate with the health author-ities of any State except at the request of the properauthorities of such State.

(b) The personnel of the Public Health Servicepaid from any appropriation not made pursuant tosubsection (a) may be detailed to assist in carryingout the purposes of sections 801-803 of this title. Theappropriation from which they are paid shall be re-imbursed from the appropriation made pursuant tosubsection (a) to the extent of their salaries andallowances for services performed while so detailed.

(c) The Secretary of the Treasury shall include inhis annual report to Congress a full account of theadministration of sections 801-803 of this title. (Aug.14, 1935, ch. 531, title VI, § 603, 49 Stat. 635.)

SUBCHAPTER VII.-SOCIAL SECURITY BOARD

§ 901. Establishment of Board; composition and termof oflice; compensation.

There Is hereby established a Social Security Board(in this chapter referred to as the "Board") to becomposed of three members to be appointed by thePresident, by and with the advice and consent ofthe Senate. During his term of membership on theBoard, no member shall engage in any other business,vocation, or employment. Not more than two of themembers of the Board shall be members of the samepolitical party. Each member shall receive a salaryat the rate of $10,000 a year and shall hold office fora term of six years, except that (1) any member ap-pointed to fill a vacancy ocr.urring prior to the ex-piration of the term for which his predecessor wasappointed, shall be appointed for the remainder ofsuch term; and (2) the terms of office of the membersfirst taking office after August 14, 1935 shall expire,as designated by the President at the time of ap-pointment, one at the end of two years, one at theend of four years, and one at the end of six years,after August 14, 1935. The President shall designateone of the members as the chairman of the Board.(Aug. 14, 1935, ch. 531, title VII, § 701, 49 Stat. 635.)

TaANS OF FUNctiONS

Social Security Board and its functions were consolldatedwith other agencies under Federal Secutity Agency byReorg. Plan No. I, 11 201-203. eff. July 1, 1939, 4 Fed. Iteg2728, 53 Stat. 1424, set out in note under secl lon 133t ofTitle 5, Executive Departments and Government Oflicersand Employees. See sections 208-211 of sald plan for pro-visions relating to transfer of records, properiY, fundLs, andpersonnel.

§ 901a. Federal Security Administrator; direction andsupervision.

All functions of the Social Security Board shall btadministered by the Social Security Boaid under thedirection and supervision of the Federal SecurityAdministrator. (Aug. 10, 1939, ch. 636, title IX, § 90,53 Stat. 1402.)

CODIFICATION

Section was not enacted as part of Social Secnrity Act.

§ 902. Duties of Bloard.

The Board shall perform the duties imposed uponit by this chapter and shall also have the duty ofstudying and making recommendations as to themost effective methods of providing economic securitythrough social Insurance, and as to legislation andmatters of administrative policy concerning old-agepensions, unemployment compensation, accidentcompensation, and related subjects. (Aug. 14, 1935,ch. 531, 'itle VII, § 702, 49 Stat. 636.)

TRANSFsm or FuNcriONS

Social Security Board and its functions were consolidatedwith other agencies under Federal Security Agency byReorg, Plan No. I, §§ 201-203, elf. July 1, 1939, 4 Fed. Reg.2728, 53 Stat. 1424, set out In note under section 133t ofTitle 5, Executive Departments and Government Oiflcersand Employees. See sections 208-211 of said plan for pro-visions relating to transfer of records, property, funCLs, andpersonnel.

§ 903. Expenses of Board; appointment and compen-sation of oficern an(l employees.

The Board is authorized to appoint and fix thecompensation of such officers and employees, and tomake such expenditures, as may be necessary forcarrying out its functions under this chapter, Ap-pointments of attorneys and experts may be madewithout regard to the civil-service laws. (Aug. 14,1935, ch. 531, title VII, § 703, 49 Stat. 636.)

TRANSFn OF FUNCTIONS

Social Security Board and its functions were consolidatedwith other agencies under Federal Security Agency, seenote under section 001 of this title.

§ 904. Annual report to Congress.The Board shall make a full report to Congress, at

the beginning of each regular session, of the admin-istration of the functions with which It is charged.(Aug. 14, 1935, ch. 531, title VII, § 704, 49 Stat. 636.)

Ta^NsrEa OF FUNCTIONSSocial Security Board and its functions were consolidated

with other agencies under Federal Security Agency, seenote under section 001 of this title.

SUBCHAPTER VIII.-TAXES WITH RESPECT TOEMPLOYMENTCnoss REEnarNCES

Collection of tax on services made necessary by hurri-cane, see note under section 1004 of this title.

Railroad coal-mining employees, transfer of coverage toSocial Security Act by act Aug 13, 1040, see note underchapter heading preceding section 301 of this title.

Page 3559) 1004


§ 1001. Income tax on employees.

In addition to other taxes, there shall be levied,collected, and paid upon the income of every Jndi-vidual a tax equal to the following percentages ofthe wages (as defined in section 1011 of this title)received by him aftcr December 31, 1936, with re-spect to employment (as defined in section 1011 ofti is title) after such date:

(1) With respect to employment during the cal-endar year,; 1937, 1938, and 1939, the rate shall be1 per centum.

(2) With respect to employment during the cal-(ndar years 1940, 1941, and 1942, the rate shall beI I per centumr.

(3) With respect to employment during the cal-endar years 1943, 1944, and 1945, the rate shall be2 per cent um.

(4) Willh respect to employment during the cal-endar years 1946, 1947, and 1948, the rate shall be2"- per centum.

(5) With respect to employment after December31, 1948, the rate shall be 3 per centum. (Aug. 14.1935, ch, 531, title VIII, § 801, 49 Stat. 636.)

FPrAl

Insofar as this Foction relnted exchluslvely to InternalRevenue it wn. repealed and Incorporated as section100 of Title 26. Internal Revenue Code. See section 4 (a)of Title 20, Internal Revenue Code.

§ 1002. l)ednction of tax from wage,.(a) The tax imposed by section 1001 of this title

shall be collected by the employer of the taxpayer,by duducting the amount of the tax from the wagesas and when paid. Every employer required so todeduct the tax Is hereby made liable for the pay-ment of such tax, and is hereby indemnified againstthe claims and demands of any person for theamouint of any such payment made by such em-ployer.

(b) If more or less than the correct amount oftax imposed by section 1001 of this title is paidwith respect to any wage payment, then, under regu-lations made under sections 1001-1011 of this title,proper adjustments, with respect both to the taxand the amount to be deducted, shall be made,without Interest, In connection with subsequent wagepayments to the same individual by the same em-ployer. (Aug. 14, 1935, ch. 531, tite VIII, § 802, 49Stat. 636.)

REPEAL

Insofar as this section related exclusively to InternalRevenue It was repealed and incorporated as section1401 of Title 20, Internal Revenue Code. See section 4 (a)prccedilng section 1 of Title 26. Internal Revenue Code.

§ 1003. Deductibility from income tax.For the purposes of the income tax imposed by

sections 11 and 12 of Title 26 or by any Act of Con-gress in substitution therefor, the tax imposed bysection 1001 of this title shall not be allowed as adeduction to the taxpayer in computing his netincome for the year in which such tax is deductedfrom his wages. (Aug. 14, 1935, ch. 531, title VIII,§ 803, 49 Stat. 637.)

REPEAL

Insofar as this section related exclusively to InternalRevenue it was repealed and incorporated as section

1402 of Title 26, Internul Revenue Code. See section 4 (a)preceding section 1 of Title 26, Internal Revenue Code.

§ 1001. Excise tax on employers.In addition to other taxes, every employer shall

pay an excise tax, with respect to having individ-uals in his employ, equal to the following per-centages of the wages (as defined in section 1011of this title) paid by him after December 31, 1936,with respect to employment (as defined in section1011 of this title) after such date:

(1) With respect to employment during the cal-endar years 1937, 1938, and 1939, the rate shall be1 per centum.

(2) With respect to employment during the cal-erdar years 1940, 1941, and 1942, the rate shall be1'2 per centum.

(3) With respect to employment during the cal-endar years 1943, 1944, and 1945, the rate shall be2 per centum.

(4) With respect to employment during the calen-dar years 1946, 1947, and 1948, the rate shall be 21/2per centum.

(5) With respect to employment after December31, 1948, the rate shall be 3 per centum. (Aug. 14,1935, ch. 531, title VIII, § 804, 49 Stat. 637.)

REPEAL

Insofar as this section related exclusively to InternalRevenue it was repealed and incorporated as section 1410of Title 26, Internal Revenue Code. See section 4 (a) ofTitle 26, Internal Revenue Code.

REPAIR OF DAMAGE 13Y HURRICANE

Act Aug. 11, 1039, ch. 710, § 2, 53 Stat. 1420 provided asfollows: "Sec. 2. No tax shall be collected under title VIIIor IX of the Social Security Act [sections 1001-1011,1101--1110 of Title 421 or under the Federal InsuranceContributions Act [sections 1400 ct seq. of this title] orthe Federal Unemployment Tax Act, [sections 1600 et seq.of this titlel with respect to services rendered prior toJanuary 1, 1940, in the employ of the owner or tenantof land, in salvaging timber on such land or clearing suchland of brush and other debris leit by a hurricanc; andany such tax heretofore collected (Including penalty andinterest with respect thereto, If any), shall be refundedIn accordance with the provisions of law applicable in thecase of erroneous or illegal collection of the tax. NoInterest shall be allowed or paid on the amount of anysuch refund. No payment shall be made under title II ofthe Social Security Act with respect to such servicesrendered prior to January 1, 1940."

§ 1005. Adjustment of employers' tax.

If more or less than the correct amount of taximposed by section 1004 of this title Is paid withrespect to any wage payment, then, under regula-tions made under sections 1001-1011 of this title,proper adjustments with respect to the tax shall bemade, without Interest, In connection with subse-quent wage payments to the same individual by thesame employer. (Aug. 14, 1935, ch. 531, title VIII,§ 805, 49 Stat. 637.)

REPEAL

Insofar as this section related exclusively to InternalRevenue It was repealed and incorporated as section 1411of Title 26, Internal Revenue Code. See section 4 (a) ofTitle 26, Internal Revenue Code.

§ 1006. Refunds and deficiencies.

If more or less than the correct amount of taximposed by section 1001 or 1004 of this title is paidor deducted with respect to any wage payment and

§1OO1 Page 3560


the overpayment or underpayment of tax cannot beadjusted under section 1002 (b) or 1005 of this titlethe amount of the overpayment shall be refundedand the amount of the underpayment shall be col-lected, in such manner and at such times (subjectto the statutes of limitations properly appiicablethereto) as may be prescribed by regulations madeunder sections 1001-1011 of this title. (Aug. 14,1935, ch. 531, title NIII, § 806, 49 Stat. 637.)

REPIFAL

Insofar as this section related exclusively to InternalRevenue It was repealed and incorporated as section 1421of Title 26, Internal Revenue Code. See bection 4 (a) ofTitle 20, Internal Revenue Code.

§ 1007. Colleclion and payment of taxes.

(a) The taxes imposed by sections 1001 and 1004of this title shall be collected by the Bureau of In-ternal Revenue under the direction of the Secr-taryof the Treasury and shall be paid into the Treas-ury of the United States as internal-revenue collec-tions. If the tax is not paid when due, there shallbe added as part of the tax interest (except in thecase of adjustments made in accoidance with theprovisions of sections 1002 (b) and 1005 of thistitle) at the rate of one-half of 1 per centum permonth from the date the tax became due until paid.

(b) Such taxes shall be collected and paid in suchmanner, at such times, and under such conditions,not inconsistent with sections 1001-1011 of this title(either by making and filing returns, or by stamps,coupons, tickets, books, or other reasonabic devicesor methods necessary or helpful in securing a coin-plete and proper collection and payment of the taxor in securing proper identification of the taxpayer),as may be prescribed by the. Commissioner of In-ternal Revenue, with the approval of the Secretaryof the Treasury.

(c) All provisions of law, including penalties, ap-plicable with respect to any tax imposed by section600 or section 800 of the Revenue Act of 1926,1 andthe provisions of section 607 of the Revenue Act of1934,1 shall, insofar as applicable and not inconsist-ent with the provisions of sections 1001-1011 of thistitle, be applicable with respect to the taxes imposedby sections 1001-1011 of this title.

(d) In the payment of any tax under sections 1001and 1004 of this title a fractional part of a centshall be disregarded unless it amounts to one-halfcent or more, in which case it shall be increased to 1cent. (Aug. 14, 1935, ch. 531, title VIII, § 807, 49Stat. 037.)

'See Title 26, Internal Revenue Code, § 1430.

REPEAL

Insofar as this section related exclusively to InternalRevenue it was repealed and incorporated as sections 1420,1430 of Title 26, Internal Revenue Code. See section 4 (a)of Title 26, Internal Revenue Code.

CROSS REFRsENCE

Disclosure of information in possession of board, seesection 1306 of this title.

§ 1008. Rules and regulations.

The Commissioner of Internal Revenue, with theapproval of the Secretary of the Treasury. shall makeand publish rules and regulations for the enforce-

ment of sections 1001-1011 of this title. (Aug. 14,1935, ch. 531, title VIn, § 808, 49 Stat. 630.)

R rXL

Insofar as this section related exclusively to InternalRevenue it was repealed and incorporated Ms second ten-tence of section 1429 of Title 20, Internal Revenue Code.See section 4 (a) of Title 20, Internal Revenue Code.

§ 1009. Sale by postmasters of stamips or other de% ices

for collection or payment of lax.The Cominissioner of Internal Revenue shall fur-

nish to the Postmaster General without prepaynenta suitable quantity of ztamps, coupons, tickets, books,or other devices prescribed by the Commissionerunder section 1007 of this title for the collection orpayment of any tax imposed by this titic, to be dis-tributed to, and kept on sale by, all post offices of thefirst and second classes, and such post offices of thethud and fourth classes as (1) are located in countyseats, or (2) are certified by the Secretary of theTreasury to the Postmaster General as necessary tothe proper administration of sections 1001-1011 ofthis title. The Postmaster Qenctal may requireeach such postmaster to furnish bond in such in-creased amount as he may from tine to time deter-mine, and each such postmaster shall deposit thereceipts from the sale of such stamps, coupons,tickets, books, or other devices, to the credit of, andrender accounts to, the Postmaster General at suchtimes and in such form as the Postmaster Generalmay by regulations prescribe. The Postmaster Gen-eral shall at least once a month transfer to theTreasury as internal-revenue collections ill receiptsso deposited together with a statement of the addi-tional expenditures in the District of Columbia andelsewhere incurred by the Post Office Department inperforming the duties imposed upon said Depart-ment by this section, and the Secretary of the Treas-ury is hereby authorized and directed to advancefrom time to time to the credit of the Post OfficeDepartment from appropriations made for the col-lection of th: taxes imposed by sections 1001-1011 ofthis title, such sums as may be required for suchadditional expenditures Incurred by the Post OfficeDepartment. (Aug. 14, 1935, ch. 531, title VIII, § 809,49 Stat. 638.)

REPEAL

Insofar as this section related exclusively to InternalRevenue It was repealed and Incorporated as sections 1423,

1424 of Title 26, Internal Revenue Code. See section 4 (a)of Title 26, Internal Revenue Code.

§ 1010. Penalties.

(a) Whoever buys, sells, offers for sale, uses,transfers, takes or gives in exchange, or pledgesor gives in pledge, except as authorized in sections1001-1011 of this title or in regulations made pur-suant thereto, any stamp, coupon, ticket, book, orother device, prescribed by the Commissioner ofInternal Revenue under section 1007 of this titlefor the collection or payment of any tax imposedby sections 1001-1011 of this title, shall be finednot more than $1,000 or imprisoned for not morethan six months, or both.

(b) Whoever, with intent to defraud, alters,forges, makes, or counteifeits any stamp, coupon,ticket, book or other device prescribed by the Com-

I' P-

Page 3561 1 1010


missioner of Internal Revenue under section 1007of this title for the collection or payment of anytax impos,.d by sections 1001-1011 of this title, oru,,cs, selh, lends, or has In his possession any suchaltered, forged, or counterfeited Etamp, coupon,ticket, book, or other device, or makes, uses, sells,or has in his pos.sesslon any material In imitationof the material used in the manalfacture of suchstanmp, coupon, ticket, book, or other device, shallbe lined not more than $5,000 or imprisoned notmole than five years, or both. (Aug. 14, 1935, ch.531. title VIII, § 810, 49 Stat. 638.)

RIFEAL

lnnfar fis this section related! exclusively to IntcrnalRevenue it was repealed find incorporated as section1425 of Title 26, Internal Revenue Code. See section4 (a) of Title 26, Internal Revenue Code.


When used in sections 1001-1010 of this title-(a) The telni "wages" means ats remuneration for

(mployment, including the cash value of all re-muneration paid In any mcdium other than cash;except that such term shall not include that partof the remuneration which, after remunerationequal to $3,000 has been paid to an Individual byan employer with respect to employment durinr anycalendar year, is paid to such individual by sucn em-ployer with respect to employment during suchcalendar year.

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

(1) Agricultural labor;(2) Domestic service in a private home;(3) Casual labor not i the course of the em-

ployer's trade or business;(4) Repealed.(5) Service performed as an officer or member

of the crew of a vessel documented under the lawsof the United States or of any foreign country;

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

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

(8) Service performed in the employ of a corpo-ration, community chest, fund, or foundation, or-ganized and operated exclusively for religious, char-itable, sc:cijiflc, literary, or educational purposes,or for the prevention of cruelty to children or ani-mals, no part ol the net earnings of which inuresto the benefit of any private shareholder or indi-

vidual. (Aug. 14, 1935, ch. 531, title VIII, § 811,49 Stat. 639; Aug. 10, 1939, ch. 666, title IX, § 905(a), 53 Stat. 1400.)

REPEAL

Insofar as this section related exclusively to InternalRevenue it was repealed and incorporated as section1426 of Title 26, Internal Revenue Code. See section4 (a) of Title 26, Internal Revenue Code.

Subsec. (b), par. (4) was repealed as of Jan. 1, 1939,by section 905 (a) of act Aug. 10, 1939, cited to text.See note under section 1426 of Title 26, Internal RevenueCode.

RERUND OF CERTAIN TAXES

Act Aug 10, 1039. ch. 666, title IX, § 002 (f), 53 Stat1400, provided as folexes: "No tax shrll be collected undertitle VIII (section 1001 et seq of Title 42) or IX (sec-tion 1101 ct seq of Title 42) of the Social Security Actor under the Federal Insurance Contributions Act (section1400 et seq. of Title 26, Internal Revenue Code) or theFederal Unemployment Tax Act (section 1600 et seq ofTitle 26, Internal Revenue Code) with respect to servicesrendered prior to January 1, 1940, which are describedin subparagraphs (11) and (12) of sections 1426 (bi and1607 (c) of the Internal Revenue Code, as amended, andany ',,,cli tax heretofore collected (including penalty andintercst with respect thereto, if any), shall be refundedin accordance with the provisions of law' applicable in thecase of erroneous or illegal collection of the tax. Nointerest shall be allowed or paid on the amount of anysuch refund. No payment shall be made under titleII of the Social Security Act (section 401 et "eq. of Title42) with respect to services rendered prior to January 1.1940, which arc described in subpalagraphs (11) and(12) of section 209 (b) of such Act, as amended"

Caoss REFERENCE

Railroad coal-mining employees, transfer of coverageto Social Security Act by act Aug 13, 1940, see noteuncter chapter heading, preceding section 301 of thistitle.

SUBCHAPTER IX.-TAX ON EMPL3YERS OFEIGHT OR MORE

CROSS REFEIRENCE

Collection of tax on services made necessnry by hurri-cane, see note under section 1004 of this title.

§ 1101. Imposition of tax.

On and after Januaiy 1, 1936. every employer

(as defined in section 1107 of this title) shall pay

for each calendar year an excise tax, with respect

to having individuals in his employ, equal to thefollowing percentages of the total wages (as de-

fined In section 1107 of this title) payable by him

(rcgardlss of the time of payment) with respect

to employment (as defined In section 1107 of this

chapter) during such calendar year:

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

(2) With respect to employment during the cal-

endar year 1937 the rate shall be 2 per centurn;

(3) With respect to employment after December31, 1937, the rate shall be 3 per centum. (Aug. 14,

1935, ch. 531, title IX, § 901, 49 Stat. 639.)

REPEAL

Insofar as this section related exclusively to InternalRevenue it was repealed and incorporated air section1600 of Title 26, Internal Revenue Code. See section 4(a) of Title 26, Internal Revenue Code.

CREDITs AGAINST SOCIAL SEcUrrr TAX

Act Aug. 10, 1939, ch. 666, title IX, § 002 (1), 53 Stat.1400, provided as follows: "No part of the tax Imposedby the Federal Unemployment Tax Act (section 1600 etseq. of Title 26) or by title IX of the Social Security Act(section 1101 et seq. of Title 42) whether or not the tax-payer is entitled to a credit against such tax, shall bedeemed to be a penalty or forfeiture within the meaningof section 57J of the act entitled 'An Act to establish auniform system of bankruptcy throughout the UnitedStates' (Title 11), approved July 1, 18911, as amended."

Act May 28, 1938, ch. 289, § 810, 62 Start. 576, provided asfollows:

"(a) ALLOWANCE OF CnEDIT.-Againsr the tax for thecalendar year 1936 imposed by section 901 (section 1101of Title 42) of the Social Security Act, any taxpayer shall

9 1011 Page 3562

TITLE 42.-THE PUBLIC HEALTI1

be allowed credit fcr the amount of contributions, withrespect to employment during such 3ear, paid by him,before the sixtieth (lay after the date of the enactmentof this Act (Revenue Act of 1938, enacted May 28, 1938),into an unemployment fund under a State law The pro-visions of the Social Seculity Act (except the plovisionlimiting such credit to amounts paid before the date offiling returns) Shall apply to allowance of credit tuiderthis section, and the terms used in this subsection shallhave the same meaning as when used in title IX of theSocial Scmity Act (section 1101 et seq. of Title 42).

"(b) REFUND-Refund of the tax (including penaltyand Interest collected with respect thereto, if any), basedon any credit allowable under this section, may be madein necoidance with the provisions of law applicable inthe case of erroneous or illegal collection of the tax. NoInterest shall be allowed or paid on the amount of anysuch refund "

CREDIT AGAINST FEDERAL UNr5MPLOYMENT TAXES

Act Oct. 8, 1940, 11 p. m., E. S. T., ch. 757, title VII, 1 701,54 Stat. 1017, provided as follows:

"(a) ALLOWANCE OF CSEDIT-Against the tax imposedby section 001 of the Social Security Act (section 1101 of

Title 42) for the calendar year 1936, 1037, or 1038, or

against the tax imposed by the Federal UnemploymentTax Act (section 1600 et seq. of Title 26) for the calendaryear 1939, any taxpayer shall be allowed credit for theamount of contributions paid by him into an unemploy-ment fund under a State law-

"(1) Before the sixtieth day after the date of the enact-ment of this Act,

'(2) On or a cer such sixtieth day (except in the caseof the tax foi the calendar year 10V) with respect towages paid after the fortieth day after such date ofenactment;

"(3) Without regard to the date of payment, if theassets of the taxpayer are, at any time during the fifty-nine-day period following such date of enactment, in thecustody or control of a receiver, trustee, or other fidu-ciary appointed by, or under the control of, a court ofcompetent jurisdiction.

The amount of such credit, in the case of contributions

with respect to the calendar year 1939 paid after the lastday upon which the taxpayer was required under section

1604 of the Federal Unemployment Tax Act (section 1604of Title 26) to file a return for such year, shall not

exceed 90 per centum of the amount which would havebeen allowable as credit on account of such contribu-tions had they been paid on or before such last day. Theprovisions of the Social Security Act (section 301 et seq.of Title 42) in force prior to February 11, 1939 (exceptthe provision limiting the credit to amounts paid beforethe date of filing returns) shall, with respect to the taxfor the calendar year 1936, 1937, or 1938, apply to allow-ance of credit under this section, and the provisions ofthe Federal Unemployment Tax Act (section 1600 et seq.of Title 26) (section 1601 (a) (3) of Title 26) shall, withrespect to the tax for the calendar year 1939, apl-.y toallowance of credit under this section. The terms used inthis subsection shall, with respect to the tax for thecalendar year 1936, 1937, or 1938, have the same meaningas when used In title IX of the Social Security Act (section1101 et seq. of Title 42) prior to February 11, 1939, andshall, with respect to the tax for the calendar year 1939,have the same meaning as when used in the Federal Un-employment Tax Act (section 1600 et seq. of Title 26).The total credit allowable against the tax imposed by sec-tion 901 of the Social Security Act (section 1101 of Title42) for the calendar year 1936, 1037, or 1938, or against thetax Imposed by section 1600 of the Federal UnemploymentTax Act (section 1600 of Title 26) for the calendar year1939, shall not exceed 90 per centum of such tax.

"(b) Rl-muND.-Rofund of the tax (including penaltyand interest collected with respect thereto, if any), basedon any credit allowable under this section, may be madein accordance with the provisions of law applicable Inthe case of erroneous or illegal collection of the tax.No interest shall be allowed or paid on the amount ofany such refund."

§ 1102. Credit against tax.

The taxpayer may ciedit against the tax imposedby section 1101 of this title the amount of contribu-

tions, with respect to employmet, during the taxableyear. paid by him (before the date of filing his returnfor the taxable year) into an llunemployment fundunder a State law. 'The total credit allowed to a tax-payer under this section for all contributions paidInto unemployment funds with respect to employ-ment during such taxable year shall not exceed 90

per centum of the tax against which it is credited,and credit shall be allowed only for contributionsmade under the laws of States certified for the tax-able year as provided In section 1103 of this title.(Aug. 14, 1935, ch. 531, title IX, § 002, 49 Stat. 639.)

RPEAL

Insofar as this section related exclusively to Interni.1Revenue it was repealed and Incorporated as section 1601(a) of Title 26, Internal Revenue Code. See section 4 (a)of Title 26, Internal Revenue Code.

CEDSrrS AND SOCIAL SECURITY TAX

Act Aug. 10, 1939, ch. 666, Title IX. § 902 (a) (b) (c)(d) and (h), 53 Stat. 1399. provided as follows:

"(a) Against the tax imposed by section 01 of theSocial Security Act (Eection ll1101 of Title 42) for the cal-endar year 1936, 1037, or 1938, any taxpayer salill be al-lowed credit for the amount of contributions, with respectto employment during such year, paid by him into anunemployment fund Under a State law-

"(1) Before the sixtieth day after the date of the en-actment of this act;

"(2) On or after such sixtieth day, with respect towages paid after the fortieth clay after such date ofenactment;

"(3) Without regard to the date of payment, if theassets of the taxpayer are, at any time during the fifty-nine-day period following such date of enactment, in thecustody or control of a receiver, trustee, or other fhluclaiyappointed by, or under the control of, a court of competentjurisdiction.

"(b) Upon the payment of contributions into the unem-ployment fund of a State which are required under theunemployment compensation law of that State with re-spect to remuneration on the basis of which, prior to suchpayment into the proper fund, the taxpayer erroneouslypaid an amount as contributions under another iunem-ployment compensation law, the payment into tne properfund shall, for purposes of credit against the tax it-posed by Eection 901 of the Social Security Act (section1101 of Title 42) for the calendar years 1936, 1937, and1938, respectively, be deemed to have been made at thetime of the erroneous payment. If, by reason of suchother law, the taxpayer was entitled to cease paying con-tributions with respect to services subject to such otherlaw, the payment into the proper fund shall, for purposesof credit against the tax, be deemed to have been made onthe date the return for th3 taxable year was filed undersection 905 of the Social SEcurity Act (section 1105 ofTitle 42).

"(c) The provisions of the Social Stcurity Act in forceprior to February 11, 1939 (except the provisions limitingthe credit to amounts paid before the date of filing re-turns) shall apply to allowance of credit under subsec-tions (a), (b), and (hi), and the terms used In such xEub-sections shall have the same meaning as when used intitle IX of the Social Security Acc (sections 1101-1110 ofTitle 49) prior to such date. The total credit allowableagainst the tax imposed by qcction 001 of such act (sec-tion 1101 of Title 42) for the calendar years 1936, 1937, and1938, respectively, shall not exceed 90 per centum of suchtax.

"(d) Refund of the tax (including penalty and interestcollected with respect thereto, if any) , based on any creditallowable under subsections (a), (b), and (hi, may bemade in accordance with the provisions of law Lpplicabl.in the case of erroneous or illegal collection of the tax

Page 3563 1 1103


No Int're,t shall be allowed or paid on the amount of anyie h refu (d"(hi) Notwithitandng the proviion of tection 007 ()

of the Social Hecurity AcL (sction 1107 of Title 42) Ilr-Iting the term 'contributlhn,,' to payments required by aStatv law, (redit shall b permitted against the tax lIr.-popied by w'ctlon 001 (,ection 1101 ct Title 42) of such actfor the calendar yeai I3O or 1937, for so much of any pay-Inrnt, made an contributlons for such year into the unem-ployment fund of a Ptate which are L.eld by the highestcourt of nurh State not t/) l, required payment, under theunemplo ment compensation law of such State if theyare not returned to the taxpayer. So much of ruch pay-ments ivs are not so returned .hmll be con.dered to be'Iontributiont' for the purposes of section 903 (section1103 of Title 42) of such act The perlod- of limitationspic ilbed by section q312 (a) of the Internal RevenueCode shnll not begin to run, In the case of the tax for ruch5ear of any taxpayer to whom any such payment is re-turned, until the last tucli payment is returned to thetaxpayer."

§ 1103. Approval and certification of State laws.(a) The Social Security Board shall approve any

State law submitted to It, within thirty days of suchsubnission, which it finds provides that-

(1) All compensation is to be paid through publiccmploymleht offices in the State or such otheragencies as the Board may approve;

(2) No compensation shall be payable with respectto any day of unemployment occurring within twoyears after the first day of the first period with re-spect to which contributions are required;

(3) All money received in the unemployment fundshall immediately upon such receipt be paid over tothe Secretary of the Treasury to the credit of theUnemployment Trust Fund established by section1104 of this title;

(4) All money withdrawn from the Unemploy-ment Trust Fund by the State agency shall be usedsolely in the payment of compensation, e,,clusive ofexpenses of administration;

(5) Compensation shall not be denied in suchState to any otherwise eligible individual for refus-Ing to accept new work under any of the followingconditions: (A) If the position offered is vacant duedirectly to a strike, lockout, or other labor dispute;(B) if the wages, hours, or other conditions of thework offered are substpntially less favorable to theindividual than those prevailing for similar work inthe locality; (C) if as a condition of being employedthe individual would be required to join a companyunion or to resign from or refrain from joining anybona fide labor organization;

(6) All the rights, privileges, or immunities con-ferred by such law or by acts done pursuant theretoshall exist suojcct to the power of the legislature toamend or repeal such law at any t!me.

The Board shall, upon approving such law, notifythe Governor of the State of its approval.

(b) On December 31 in each taxable year theBoard shall certify to the Secretary of the Treasuryeach State whose law it has previously approved, ex-cept that it shall not certify any State which, afterreasonable notice and opportunity for hearing to theState agency, the Board finds has changed its law sothat it no longer contains the provisions specified insubsection (a) or has with respect to such taxableyear failed to comply substantially with any suchprovision.

(c) If, at any time during the taxable year, theBoard has reason to believe that a State whose lawit has previously approved, may not be :ertifled undersubsection (b), it, shall promptly so notify the Gov-ernor of such State. (Aug. 14, 1935, ch. 531, title IX,

903, 49 Stat. 640.)REPEAL

Insofar as this section related exclusively to InternalRevenue it was repealed and incorporated as section 1603of Title 26, Internal Revenue Code. See section 4 (a) ofTitle 26, Internal Revenue Code.

PA'MENTS TO STATES,

Act August 24, 1037, ch. 755, 50 Stat. 754, provided "forpayment to the unemploym~ent fund of each State orTerritory which was not certified by the Social SecurityBoard under section 903 of the Social Security Act (section1103 of this title) on December 31, 1036, but which enactedIn the year 1037 an unemployment-compensation law ap-proved by the Social Security Board under such section, anamount equal to 90 per centum of the proc eds of the taxpaid on or before January 31, 1038, with respect to em-ployment in such State or Territory during the calendaryear 1936 under title IX of such Act (sections 1101-1110 ofthis tit!e). Out of the sums appropriated therefor, theSecretary of the Treasury shall pay such amount, throughthe Division of Disbursement (Fiscal Service) of the Treas-ury Department, to each such State unemployment fund.The terms used In this Act shall have tht same meaningas identical terms in title IX of the Social Security Act(sections 1101-1110 of this title)."

TRANSFER F FINcTioNs

Social Security Board and its functions were consolidatedwith other agencies under Federal Security Agency, seenote under section 001 of this title.

CROSS REFERENCEPayments en'oneously made under State law, as con-

tributions, see note u.nder section 1102 of this title.

§ 1101. Unemployment. Trust Fund; establishment;investment; payments to States.

(a) There is hereby established in the Treasuryof the United States a trust fund to be known asthe "unemployment trust fund", hereinafter in thischapter called the "fund". The Secretary of theTreasury is authorized and directed to receive andhold in the fund all moneys deposited therein by aState agency from a State unemployment fund, orby the Railroad Retirement Board to the credit ofthe railroad unemployment insurance account.Such deposit may be made directly with the See-letary of the Treasury or with any Federal Reservebank or member bank of the Federal Reserve Sys-tem designated by lum for such purpose.

(b) It shall be the duty of the Secretary of theTreasury to invest such portion of the Fund as isnot, in his Judgment, required to meet current with-drawals. Such investment may be made only Ininterest bearing obligations of the United States orin obligations guaranteed as to both principal andinterest by the United States. For such purposesuch obligations may be acquired (1) on originalissue at par, or (2) by purchase of outstanding obli-gations at the market price. The purposes forwhich obligations of the United States may be Is-sued under section 752 of Title 31, are hereby ex-tended to authorize the issuance at par of specialobligations exclusively to the Fund. Such specialobligations shall bear interest at a rate equal tothe average rate of interest, comnuted as of the endof the calendar month next preceding the date of

11103 Page 3564

T 42.-.THE PUBLIC HEALTH

such issue, borne by all interest-bearing obligationsof the United States then forming part of the publicdebt; except that where such average rate Is nota multiple of one-eighth of 1 per centum, the rateof Interest of such special obligations shall be themultiple of one-eighth of 1 per centum next lowerthan such average rate. Obligations other thansuch special obligations may be acquired for theFund only on such terms as to provide an investmentyield not less than the yield which would be requiredin the case of special obligations if Issued to theFund upon the date of sach acquisition.

(c) Any obligations o quired by the Fund (exceptspecial obligations Issued exclusively to the Fund)may be sold at the market price, and such specialobligations may be redeemed at par plus accruedinterest

(d) The interest on, and the proceeds from tilesale or redemption of any obligations held In theFund shall ie credited to and form a part of theFund.

(e) The fund shall be Invested as a single fund,but the Secretary of the Treasury shall maintaina separate book account for each State agency andthe railroad unemployment Insurance account andshall credit quarterly on Mqrch 31, June 30, Sep-tember 30, and December 31, of each year, tu eachaccount, on the bas., of the average daily balanceof such account, a proportionate part of the earn-ings of the fund for the quarter ending on such date.

(f) The Secretary of the Treasury Is authorizedand directed to pay out of the Fund to any Stateagency such amount as It may duly requisition, notexceeding the amount stanoing to the account ofsuch State agency at the time of such payment.The Secretary of the Treasury is authorized anddirected to make such payments out of the fundas the Railroad Retirement Board may duly certify,not exceedint" the amount standing to the railroadunemployment insurance account at the time ofsuch payment. (Aug. 14, 1935, ch. 531, title IX,§ 904, 49 Stat. 640; June 25, 1938, ch. 680, § 10 (e-g),52 Stat. 1104, 1105.)

§1105. Administration, refunds and penalties-(a)Collection; penalties.

The tax imposed by section 1101 of this title shallbe collected by the Bureau of Internal Revenueunder the direction of the Secretary of the Treasuryand shall be paid Into the Treasury of the UnitedStates as internal-revenue collections. If the taxIs not paid when due, there shall be added as partof the tax Interest at the rate of one-half of 1 percentum per month from the date the tax becamedue until paid.

(b) Returns.Not later than January 31, next following the close

of the taxable year, each employer shall make areturn of the tax under sections 1101-1110 of thistitle for such taxable year Each such return shallbe made under oath, shall be filed with the collectorof internal revenue for the district in which is lo-cated the principal place of business of the employer,or, if he has no principal place of business in theUnited States, then with the collector at Baltimore,

Maryland, and shall contain such information andbe made in such manner as the Commissioner ofInternal Revenue, with the approval of the Secre-tary of the Treasury, may by regulations prescribe.All provisions of law (including penalties) appli-cable In respect of the taxes Imposed by section 600of the Revenue Act of 1926,1 shall, insofar as notInconsistent with sections 1101-1110 of this title,be applicable in respect of the tax imposed by sec-tions 1101-1110 of this title. The Coinlnissione"may extend the time for filing the return of thetax Imposed by sections 1101-1110 of this title, undersuch rules and regulations as lie may prescribe withthe approval of the Secretary of the Treasury, butno such extension shall be for more than sixty days.

(c) Inspection of returns.Returns filed under sections 1101-1110 of this title

shall be open to inspection In the same manner, tothe same extent, and subject to the same provisionsof law, including penalties, as returns made underTitle II of the Revenue Act of 1926.'(d) Payment in installments.

The taxpayer may elect to pay the tax in fourequal installments instead of in a Lingle payment,in which case the first Installment shall be paid notlater than the last day prescribed for the filing ofreturns, the second Installment shall be paid on orbefore the last day of the third month, the thirdinstallment on or before the last day of the sixthmonth, and the fourth installment on or beforethe last day of the ninth month, after such lastday. If the tax or any installment thcreof is notpaid on or before the last day of the period fixedfor Its payment, the whole amount of the tax unpaidshall be paid upon notice and demand from thecollector.

(e) Extension of time for payment.At the request of the taxpayer the time for pay-

ment of 'he tax or any installment thereof may beextended under regulations prescribed by the Com-missioner with the approval of the Secretary of theTreasury, for a period not to exceed siK months fromthe last day of the period prescribed for the paymentof the tax or any installment thereof. The amountof the tax in respect of which any extension isgranted shall be paid (with Interest at the rate ofone-half of 1 per centum per month) on or beforethe date of the expiration of the period of theextension.

(f) Fractional part of cent.In the payment of any tax under sections 1101-

1110 of this title a fractional part of a cent shall bedisregarded unless it amounts to one-half cent ormore, in which case it shall be increased to 1 cent.(Aug. 14, 1935, ch. 531, title IX. § 905, 49 Stat. 641.)

See Title 26, Internal Revenue Code, § 1610.See Title 20, Internal Revenue Code, 11604 (c).

REPEAL

Insofar as this section related exclusively to InternalRevenue it was repealed and Incoporated as sectiona 1604,1605, 1610 of Title 26, Internal Revenue Code. See section4 (a) of Title 26, Internal Revenue Code.

CRoss REFERENCE

Credit against tax, see section 1102 and note of thistAle

Page 3565 | 1105


fi 1]06. Engaging in interstate commerce not to excusepiayment of tax.

No person required under a State law to makepayments to an unemployment fund shall be relievedfrom compfliance therewith on the giound that heIs engalpd in Interstate commerce, or that the Statelaw does not distingulsh between employees engagedin interstate commerce and those engaged in intra-state commerce. (Aug. 14, 1935, ch. 531, title IX,§ 906, 49 Stat. 642.)

REPEAL

In.,ofar as this section related exclusively to InternalRevenue It was repealed and incorporated as section 1606of Title 26, Internal Revenue Code. See section 4 (a) ofTitle 20, Internal Revenue Code.

CRoss REFERENCE

"Person" as defined in this section not to include anyemployer (as defined in chapter 11 of Title 45) or anyperson In Its employ, see bection 363 (a) of Title 45, Rail-roads.


When used In sections 1101-1110 of this title-(a) The term "employer" does not include any

person unless on each of some twenty days duringthe taxable year, each day being in a different cal-endar week, the total number of individuals whowere In his employ for some portion of the day(whether or not at the same moment of time) waseight or more.

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

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

(1) Agricultural labor;(2) Domestic service in a private home;(3) Service performed as an officer or member of

the crew of a vessel on the navigable waters of theUnited States;

(4) Service performed by an Individual in the em-ploy of his son, daughter, or spouse, and service per-formed by a child under the age of twenty-one in theemploy of his father or mother;

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

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

(7) Service performed in the employ of a corpora-tion, community chest, fund, or foundation, organ-ized and operated exclusively for religious, charitable,scientific, literary, or educational purposes, or for theprevention of cruelty to children or animals, no partof the net earnings of which inures to the benefit ofany private shareholder or individual;

(8) Service performed in the employ of an em-ployer as defined in sections 351-367 of Title 45 andservice performed as an employee representative asdefined in sections 351-367 of Title 45.

(d) The term "State agency" means any Stateofficer, board, or other authority, designated under aState law to administer the unemployment fund insuch State.

(e) The term "unemployment fund" means a spe-cial fund, established under a State law and admin-istered by a State agency, for the payment of com-pensation,

(f) The term "contributions" means payments re-quired by a State law to be made by an employer intoan unemployment fund, to the extent that such pay-ments are made by him without any part thereofbeing deducted or deductible from the wages of indi-viduals in his employ.

(g) The term "compensation" means cash benefitspayable to individuals with respect to their unem-ployment. (Aug. 14, 1935, ch. 531, title IX, § 907, 49Stat. 642; June 25, 1938, ch. 680, § 13 (a), 52 Stat.1110.)

REPEAL

Insofar as this section, except subsection (c) (8), re-lated exclusively to Internal Revenue It was repealed andincorporated as section 1607 of Title 26, Internal RevenueCode. See section 4 (a) of Title 26, Internal RevenueCode.

REVeNDSAct Aug. 10, 1939, ch. 666, title IX, § 902 (f), 53 Stat.

1400, provided as follows: "No tax shall be collected undertitle VIII (section 1001 et seq. of Title 42) or IX (section1101 et seq. of Title 42) of the Social Security Act or underthe Federal Insurance Contributions Act (section 1400et seq. of Title 26, Internal Revenue Code) or the FederalUnemployment Tax Act (section 1600 et seq. of Title 26,Internal Revenue Code), with respect to services rendredprior to January 1, 1040, which are described In subpara-graphs (11) and (12) of sections 1420 (b) and 1607 (c) ofthe Internal Revenue Code, as amended, and any such taxheretofore collected (including penalty and Interest withrespect thereto, if any), shall be refunded in accordancewith the provisions of law applicable in the case of errone-ous or illegal collection of the tax. No interest shall beallowed or paid on the amount of any such refund. Nopayment shall be made under title II of the Social SecurityAct (section 401 et seq. of Title 42) with respect to servicesrendered prior to January 1, 1940, which are described insubparagraphs (11) and (12) of section 209 (b) of suchAct, as amended."

CROSS REFERENCES-Employment" under Railroad Unemployment Insur-

ance Act, see section 303 (a) of Title 45, Railroads.Payments erroneously made under State law as con-

tributions, see note under section 1102 of this title.Railroad coal-mining employees, transfer of coverage to

Social Security Act by act Aug. 13, 1940, see note underchapter heading preceding section 301 of this title.

§ 1108. Rules and regulations.

The Commissioner of Internal Revenue, with theapproval of the Secretary of the Treasury, shallmake and publish rules and regulations for the en-forcement of sections 1101-1110 of this title, exceptsections 1103, 1104 and 1110 of this title. (Aug. 14,1935, ch. 531, title IX, § 908, 49 Stat. 643.)

REPEAL

Insofar as this section related exclusively to InternalRevenue it was repealed and incorporated as last sentenceof section 1609 of Title 20, Internal Revenue Code. Seesection 4 (a) of Title 20, Internal Revenue Code.

§ 1109. Additional credit against tax.

(a) In addition to the credit allowed under section1102 of this title, a taxpayer may, subject to the con-ditions imposed by section 1110 of this title, creditagainst the tax imposed by section 1101 of this titlefor any taxable year after the taxable year 1937,an amount, with respect to each State law, equal

111100 Page 3566


to the amount, if ,ny, by which the contributions,with respect to employment in such taxable year,actually paid by the taxpayer under such law beforethe date of filing his return for such taxable year, isexceeded by whichever of the following is thelesser-

(1) The amcunt of contributions which he wouldhave been required to pay under such law for suchtaxable year if he had been subject to the highestrate applicable from time to time throughout suchyear to any employer under such law; or

(2) Two and seven-tenths per centum of the wagespayable by him with respect to employment withrespect to which contributions for such year wererequired under such law.

(b) If the amount of the contributions actually sopaid by the taxpayer is less than the amount whichhe should have paid under the State law, the addi-tional credit under subsection (a) shall be reducedvroportionately.

(W) The total credits allowed to a taxpayer undersections 1101-1110 of this title shall not exceed 90per centum of the tax against which such creditsare taken. (Aug. 14, 1935, ch. 531, title IX, § 909,49 Stat. 643.)

REPEAL

Insofar as this section related exclusively to InternalRevenue it was repealed and incorporated as section 1601(b) (c) of Title 26, Internal Revenue Code. See section4 (a) of Titlc 26, Internal Revenue Code.

§ 1110. Conditions of additional credit allowance.

(a) A taxpayer shall be allowed the additionalcredit under section 1109 of this title, with respectto his contribution rate under a State law beinglower, for any taxable year, than that of anotheremployer subject to such law, only if the Boardfinds that under such law-

(1) Such lower rate, with respect to contributionsto a pooled fund, is permitted on the basis of notless than three years of compensation experience;

(2) Such lower rate, with respect to contributionsto a guaranteed employment account, is permittedonly when his guaranty of employment was fulfilledin the preceding calendar year, and such guaranteedemployment account amounts to not less than 712per centum of the total wages payable by him, inaccordance with such guaranty, with respect to em-ployment in such State in the preceding calendaryear;

(3) Such lower rate, with respect to contributionsto a separate reserve account, is permitted only when(A) compensation has been payable from such ac-count throughout the preceding calendar year, and(B) such account amounts to not less than fivetimes the largest amount of compensation paidfrom such account within any one of the three pre-ceding calendar years, and (C) such accountamounts to not less than 71/' per centum of the totalwages payable by him (plus the total wages payableby any other employers who may be contributingto such account) with respect to employment in suchState in the preceding calendar year:

(b) Such additional credit shall be reduced, if anycontributions under such law are made by such tax-payer at a lower rate under conditions not fulfilling

20565, ° '-i1-vol. 3-37

the requirements of subsection (a), by the amountbearing the same ratio to such additional credit asthe amount of contributions made at such lower ratebears to the total of his contributions paid for suchyear under such law.

(c) As used in this section-(1) The term "reserve account" means a separate

account in an unemployment fund, with respect to anemployer or group of employers, from which compen-sation is payable only with Yespect to the unemploy-ment of individuals who were in the employ of suchemployer, or of one of the employers comprising thegroup.

(2) The term "pooled fund" means an unemploy-ment fund or any part thereof In which all contri-butions are mingled and undivided, and from whichcompensation is payable to all eligible individuals,except that to individuals last employed by em-ployers with respect to whom reserve accounts aremaintained by the State agency, it Is payable onlywhen such accounts are exhausted.

(3) The term "guaranteed employment account"means a separate account, in an unemploymentfund, of contributions paid by an employer (or groupof employers) who

(A) guarantees in advance thirty hours of wagesfor each of forty calendar weeks (or more, with oneweekly hour deducted for each added week guaran-teed) in twelve months, to all the individuals in hIlsemploy in one or more distinct establishments, ex-cept that any such individual's guaranty may com-mence after a probationary period (included withintwelve or less consecutive calendar weeks), and

(B) gives security or assurance, satisfactory to theState agency, for the fulfillment of such guaranties,from which account compensation shall be payablewith respect to the unemployment of any such indi-vidual whose guaranty is not fulfilled or renewedand who is otherwise eligible for compensation underthe State law.

(4) The tcrm "year of compensation experience",as applied to an employer, means any calendar yearthroughout which compensation was payable withrespect to any individual in his employ who becameunemployed and was eligible for compensation.(Aug. 14, 1935, ch. 531, title IX, § 910, 49 Stat. 644.)

REPEAL

Insofar as this section related exclusively to InternalRevenue it was repealed and incorporated as section1602 of Title 26, Internal Revenue Code. See section4 (a) of Title 26, Internal Revenue Code.

SUBCHAPTER X.-GRANTS TO STATES FORAID TO THE BLIND

§ 1201. Appropriation.Ior the purpose of enabling each State to furnish

financial assistance, as far as practicable under theconditions in such State, to needy individuals whoare blind, there is hereby authorized to be appro-priated for the fiscal year ending June 30, 1936,the sum of $3,000,000, and there is hereby author-ized to be appropriated for each fiscal year there-after a sum sufficient to carry out the purposes ofsections 1201-1206 of this title. The sums madeavailable under this section shall be used for mak-

Page 3567 11201


Ing payments to States which have submitted, andhad approved by the Social Security Board, Stateplans for aid to the blind. (Aug. 14, 1935, ch. 531,title X, § 1001, 49 Stat. 645.)

§ 1202. State planm for aid to blind.

'a) A State plan for aid to the blind must (1)provide that It shall be in effect in all political sub-divisions of the State, rrld, If administered by them,be mandatory upon them; (2) provide for financialparticipation by the State; (3) either provide forthe establishment or designation of a single Stateagency to administer the plan, or provide for theestablishment or designation of a single State agencyto supervise the administration of the plan; (4) pro-vide for granting to any individual, whose claimfor aid is denied, an opportunity for a fair hearing.before such State agency; (5) provide such methodsof administration (Including after January 1, 1940,methods relating to the establishment and mainte-nance of personnel standards on a merit basis, ex-cept that the Board shall exercise no authority withrespect to the selection, tenure of office, and com-pensation of any individual employed in accordancewith such methods) as are found by the Boardto be necessary for the proper and efficient opera-tion of the plan; (6) provide that the State agencywill make such reports, in such form and containingsuch Information, as the Board may from time totime require, and comply with such provisions asthe Board may from time to time find necessaryto assure the correctness and verification of suchreports; and (7) provide that no aid will be fur-nished any individual under the plan with respectto any period with respect to which he is receivingold-age assistance under the State plan approvedunder section 302 of this title; (8) provide that theState agency shall, in determining need, take intoconsideration any other Income and resources ofan individual claiming aid to the blind; and (9)provide safeguards which restrict the use or dis-closure of Information concerning applicants andrecipients to purposes directly connected with theadministration of aid to the blind.

(b) The Board shall approve any plan which ful-fills the conditions specified In subsection (a), exceptthat it shall not approve any plan which imposes, asa condition of eligibility for aid to the blind underthe plan-

(1) Any residence requirement which excludes anyresident of the State who has resided therein fiveyears during the nine years immediately precedingthe application for aid and has resided therein con-tinuously for one year immediately preceding theapplication; or

(2) Any citizenship requirement which excludesany citizen of the United States. (Aug. 14, 1935,ch. 531, title X, § 1002, 49 Stat. 645; Aug. 10, 1939, ch.666, title VII, § 701, 53 Stat. 1397.)

EFFEcTivE DATE

Amendment by act August 10, 1039, cited to text, addingcls. (8), (9) to subsec. (a) was made effective July 1,1941, by section 701 (b) of said act. Subsec. (a), cl (5)was also amended by section 701 (a) of said act, butwithout any special provision regarding its effective dte.

§ 1203, Payment to States.

(a) From the sums appropriated therefor, the Sec-retary of the Treasury shall pay to each State whichhas an approved plan for aid to the blind, for eachquarter, beginning with the quarter commencingJanuary 1, 1940, (1) an amount, which shall be usedexclusively as aid to the blind, equal to one-half ofthe total of the sums expended during such quarteras aid to the blind under the State plan with respectto each needy individual who is blind and is not aninmate of a public, institution, not counting somuch of such expenditure with respect to any indi-vidual for any month as exceeds $40, and (2) anamount equal to one-half of the total of the sumRexpended during such quarter as found necessaryby the Board for the proper and efficient admin-istration of the State plan, which amount shall beused for paying the costs of administering the Stateplan or for aid to the blind, or both, and for noother purpose.


(1) The Board shall, prior to the beginning of eachquarter, estimate the amount to be paid to the Statefor such quarter under the provisions of subsection(a), such estimate to be based on (A) a report filedby the State containing its estimate of ,,he total sumto be expended in such quarter in accordance withthe provisions of such subsection, and stating theamount appropriated or made available by the Stateand its political subdivisions for such expendituresin such quarter, and if such amount is less than one-half of the total sum of such estimated expenditures,the source or sources from which the difference Isexpected to be derived, (B) records showing thenumber of blind individuals in the State, and (C)such other investigation as the Board may findnecessary.

(2) The Board shall then certify to the Secretaryof the Treasury the amount so estimated by theBoard, (A) reduced or increased, as the case maybe, by any sum by which it finds that its estimatefor any prior quarter was greater or less than theamount which should have been paid to the Stateunder subsection (a) for such quarter, and (B)reduced by a sum equivalent to the pro rata shareto which the United States Is equitably entitled, asdetermined by the Board, of the net amount recov-ered during a prior quarter by the State or anypolitical subdivision thereof with respect to aid tothe blind furnished under the State plan; exceptthat such increases or reductions shall not be madeto the extent that such sums have been applied tomake the amount certified for any prior quartergreater or less than the amount estimated by theBoard for such prior quarter: Provided, That anypart of the amount recovered from the estate of adeceased recipient which is not in excess of theamount expended by the State or any political sub-division thereof for the funeral expenses of the de-ceased shall not be considered as a basis for reduc-tion under clause (B) of this paragraph.

(3) The Secretary of the Treasury shall thereupon,through the Fiscal Service of the Treasury Depart-ment, and prior to audit or settlement by the Gen-

Page 35681 1202


eral Accounting Office, pay to the State, at the timeor tin.:.s fixed by the Board, the amount so certified.(Aug. 14, 1935, ch. 531, title X, § 1003, 49 Stat. 646;Aug. 10, 1939, ch. 666, title VII, § 702, 53 Stat. 1397;Reorg. Plan No. III, § 1 (a) (1), eft. June 30, 1940, 5Fed. Reg. 2107, 54 Stat. 1231.)

EF EcrIVE DATE

Amendment by act August 10, 1039, cited to text, waSmade effective January 1, 1940, by section 702 of said act.


Division of Disbursement and certain other offices andagencies and their functions were conso' datcd into FiscalService of Treasury Department by R irg. Plan No. III,§ 1 (a) (1), cited to text, set out in note under section133t of Title 5, Executive Departments and GovernmentOfficers and Employees.

§ 1204. Change in or failure to comply with plans;

stopping payments.

In the case of any State plan for aid to the blindwhich has been approved by the Board, if the Board,after reasonable notice and opportunity for hearingto the State agency administering or supervising theadministration of such plan, finds-

(1) that the plan has been so changed as to im-pose any residence or citizenship requirement pro-hibited by section 1202 (b) of this title, or that inthe administration of the plan any such prohibitedrequirement is imposed, with the knowledge of suchState agency, in a substantial number of cases; or

(2) that in the administration of the plan there isa failure to comply substantially with any provisionrequired by section 1202 of this title to be includedin the plan;

the Board shall notify such State agency that furtherpayments will not be made to the State until theBoard is satisfied that such prohibited requirementis no longer so imposed, and that there is no longerany such failure to comply. Until it is so satisfied itshall make no further certification to the Secretaryof the Treasury with respect to such State. (Aug.14. 1935, ch. 531, title X, § 1004, 49 Stat, 646.)

§ 1205. Appropriation.Section, act Aug. 14, 1935, clh. 531, title X, § 1005, 49 Stat.

647, made available $30,000 !or the fiscal tenr ending June30, 1936, for expenses in administering sections 1201-1204of this title.

§ 1206. "Aid to the blind" defined.

When used in sections 1201-1206 of this title theterm "aid to the blind" means money payments toblind individuals who are needy. (Aug. 14, 1935, ch.531, title X, § 1000, 49 Stat. 647; Aug. 10, 1939, ch. 666,title VII, § 703, 53 Stat. 1398.)

SUBCHAPTER XI.-GENERAL PROVISIONS


(a) When used In this chapter-(1) The term "State" (except when used in sec-

tion 45b of Title 29) includes Alaska, Hawaii, and theDistrict of Columbia, and when used in sections 701-704, 705, 711-715, 721, 731 and sections 801-803 ofthis title (including section 45b of Title 29) includesPuerto Rico.

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

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

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

(5) The term "shareholder" includes a member inan assoriation joint-stock company, or insurancecompany.

(6) The term "employee" includes an officer of acorporation.

(b) The terms "includes" and "inclding" whenused in a definition cont:Lined in this chapter shallnot be deemed to exclude other things otherwisewithin the meaning of the term defined.

(c) Whenever under this chapter or any Act ofCongress, or under the law of any State, an employeris required or permitted to deduct any amount fromthe remuneration of an employee and to pay theamount deducted to the United States, a State, orany political subdivision thereof, then for the pur-poses of this chapter the amount so deducted shallbe considered to have been paid to the employee atthe time of such deduction.

(d) Nothing in this chapter shall be construed asauthorizing any Federal official, agent, or representa-tive, in carrying out any of the provisions of thischapter, to take charge of any child over the objec-tion of either of the parents of such child, or of theperson standing in loco parentis to such child. (Aug.14, 1935, ch. 531, title Xl, § 1101, 49 Stat. 647; Aug.10, 1939, ch. 666, title VIII, § 801, 53 Stat. 1398.)

REPEAL

Insofar as subsections (a) (1), (3), (6), (c) of this sec-tion related exclusively to Internal Revenue they wererepealed and incorporated as sections 1426 (c)-(e), 1427,1607 (h)-(J), 1608 of Title 26, Internal Revenue Code.See section 4 (a) of Title 20, Internal Revenue Code.

EFFECTIVE DATE


§ 1301a. Bureau of Old-Age and Sursivors' Insuranceemployees; travel expenses.

Employees of the Bureau of Old-Age and Survivors'Insurance when engaged in the investigation ofc'alms or the furnishing or securing of informationconcerning claims or wage records under sections401-409 of this title, as amended, may be reimbursedfor official travel performed by them In privatelyowned automobiles within the corporate limits oftheir official stations at a rate not to exceed 3 centsper mile. (June 26, 1940, ch. 428, title II, 54 Stat.588.)

SIMILAR PROVIsIoNs

The text of this section was taken from Deficiency Ap-propriation Act. 1910. Similar provisions were containedin act August 9. 1939, ch 633, title I, § 1, 53 Stat. 1304

§ 1302. RIules and regulations.The Secretary of the Treasury, the Secretary of

Labor, and the Social Security Board, respectively,shall make and publish such rules and regulations,not inconsistent with this chapter, as may be neces-sary to the efficient administration of the functionswith which each is charged under this chapter. (Aug.14, 1935, ch. 531, title XI, § 1102, 49 Stat. 647.)

Page 3569 11302

TITIE 42 -THE PUBLIC HEALTH

REPF.AL

Insoffar aq this hection related exclusively to Internallevenue It was repealed an~d incorporated as first sentenceof fectlons 1429, 1009 of Title 20, Internal Revenue Code.Slee ection 4 (a) of Title 26, Internal Revenue Code.

§ 1303. Separability clause.

If any provision of this chapter, or the applicationthereof to any person or circumstance, Is held invalid,the remainder of the chapter, and the application ofsuch provision to other persons or circumstances shallnot be affected thereby. (Aug. 14, 1935, ch. 531, titleXI, § 1103, 49 Stat. 648.)

§ 130.1. Reservation of right to amend or repeal.

The right to alter, amend, or repeal any provisionof this chapter is hereby reserved to the Congress.(Aug. 14, 1935, ch. 531, title XI, § 1104, 49 Stat. 648.)

§ 1305. Short title of chapter.

This chapter may be cited as the "Social SecurityAct". (Aug. 14, 1935, ch. 531, title XI, § 1105, 49Stat. 648.)

§ 1306. l)isclosure of inforndtion in possession of

Iloard.

No disclosure of any return or portion of a return(including information returns and other writtenstatements) filed with the Commissioner of InternalRevenue under sections 1001-1011 of this title orsections 1400-1403, 1410, 1411, 1420-1432 of Title 20 orunder regulations made under authority thereof,which has been transmitted to the Board by theCommissioner of Internal Revenue, or of any file,record, report, or other paper, or any information,obtained at any time by the Board or by any officeror employee of the Board in the course of dischargingthe duties of the Board, and no disclosure of anysuch file, record, report, or other paper, or Informa-tion, obtained at any time by any person from theBoard or from any officer or employee of the Board,shall be made except as the Board may by regula-tions prescribe. Any person who shall violate anyprovision of this section shall be deemed guilty of amisdemeanor and, upon conviction thereof, shall bepunished by a fine not exceeding $1,000, or byimprisonment not exceeding one year, or both.(Aug. 14, 1935, ch. 531, title XI, § 1106, as addedAug. 10, 1939, ch. 660, title VIII, § 802, 53 Stat. 1398.)

§ 1307. Penalty for fraud.

(a) Whoever, with the intent to defraud any per-son, shall make or cause to be made any false repre-sentation concerning the requirements of this chap-ter, sections 1400-1403, 1410, 1411, 1420-1432 of Title26, or sections 1600-1611 of Title 26, or of any rulesor regulations issued thereunder, knowing such rep-resentations to be false, shall be deemed guilty of amisdemeanor, and, upon conviction thereof, shallbe punished by. a fine not exceeding $1,000, or byImprisonment not exceeding one year, or both.

(b) Whoever, with the intent to elicit informationas to the date of birth, employment, wages, or bene-fits of any individual (1) falsely represents to theBoard that he is such individual, or the wife, parent,

or child of such individual, or the duly authorizedagent of such individual, or of the wife, parent, orchild of such individual, or (2) falsely represents toany person that he is an employee or agent of theUr'.ted States, shall be deemed guilty of a misde-meanor, and, upon conviction thereof, shall be pun-ished by a fine not exceeding $1,000, or by impris-onment not exceeding one year, or both. (Aug. 14,1935, ch. 531, title XI, § 1107, as added Aug. 10, 1939,ch. 666, title VIII, § 802, 53 Stat. 1398.)

Chapier 8.-LOW-IRENT HOUSINGSec.1401. Declaration of policy.1402. Definitions.

(1) Low-rent housing.(2) Families of low Income.(3) Slum.(4) Slum clearance.(5) Development.(0) Administration.(7) Federal project.(8) Acquisition cost(9) Non-dwelling facilitle-

(10) Going Federal rate of interest(11) Public housing agency.(12) State.(13) Authority.

1403. United States Hous ng Authority.(a) Creation.(b) Administrator; appointment; term: re-

moval.(c) Same; salary; reappointment; private

business.1404. Same; powers of administrator; transfer of prop-

erty.(a) Appointment and compensation of em-

ployees.(b) Same; confirmation by Senate.(c) Assistance of omcers and agencies.(d) Transfer of property to Authority.

1405. Same; miscellaneous provisions.(a) Location of offices.(b) Suits by or against.(c) Seal.(d) Mail franchise.(e) Exemption from taxation.

1400. Same; financial provisions.(a) Administrative expenditures; sales and

loans; audit.(b) Bids.(c) United States made materials(d) Presidential approval of annual con-

tracts, etc.1406a. Same; expenses of management and operation of

transferred projects as nonadministrative, pay-ment.

1406b. Same; expenses of uncomipensated advisers serv-Ing away from home.

1406c. Same; expense of construction advisers on non-Federal projects.

1407. Same; information; annual report.(a) Publication of information.(b) Annual report to Congress.

1408. Same; rules and regulations.1409. Loans for low-rent-housing and slum-clearance

projects.1410 Annual contributions in assistance of low rentals

(a) Authorization(b) Limitation on particular contribution

and periods.(c) Periodic examination of projects; modi-

fications; duration of contracts.(d) Availability of funds.(e) Limitation on aggregate contractual con.

tributions.(f) Payments under contractual contribu-

tions to be pledged for loans.

§1303 Page 3570

101-193 Any person who shall violate, or aid or abet in ...

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Transcript of 101-193 Any person who shall violate, or aid or abet in ...