Social Security/Title I—Grants To States For Old Age Assistance Appropriation [1934]
SECTION 1. For the purpose of z each State to furnish financial assistance, as far as practicable under the conditions in such State, to aged needy individuals, there is hereby authorized to be appropriated for the fiscal year ending June 30, 1936, the sum of $49,750,000, and there is hereby authorized to be appropriated for each fiscal year thereafter a sum sufficient to carry out the purposes of this title. The sums made available under this section shall be used for making payments to States which have submitted, and had approved by the Social Security Board established by Title VII, State plans for old-age assistance.
STATE OLD-AGE ASSISTANCE PLANS
SEC. 2 (a) A State plan for oldage assistance must (I) provide that it shall be in effect in all political subdivisions of the State, and, if administered by them, be mandatory upon them; (2) provide for financial participation by the State; (3) either provide for the establishment or designation of a single State agency to administer the plans or provide for the establishment or designation of a single State agency to supervise the administration of the plan; (4) provide for granting to any individual, whose claim for oldage assistance is denied, an opportunity for a fair hearing before such State agency; (5) provide such methods of administration (other than those relating to selection, tenure of office, and compensation of personnel) as are found by the Board to be necessary for the efficient operation of the plan; (6) provide that the State agency will make such reports, in such form and containing such inforrnation, as the Board may from time to time require, and comply with such provisions as the Board may from time to time find necessary to assure the correctness and verification of such reports; and (7) provide that if the State or any of its political subdivisions collects from the estate of any recipient of old-age assistance any amount with respect to oldage assistance furnished him under the plan, one-half of the net amount so collected shall be promptly paid to the United States. Any payment so made shall be deposited in the Treasury to the credit of the appropriation for the purposes of this title.
(b) The Board shall approve any plan which fulfills the conditions specified in subsection (a), except that it shall not approve any plan which imposes, as a condition of eligibility for old-age assistance under the plan—
( l ) An age requirement of more than sixty-five years, except that the plan may impose, eHective until January l, 1940, an age requirement of as much as seventy years; or
(2) Any residence requirement which excludes any resident of the State who has resided therein five years during the nine years immediately preceding the application for old-age assistance and has resided therein continuously for one year inunediately preceding the application; or
(3) Any citizenship requirement which excludes any citizen of the United States.
PAYMENT TO STATES
SEC. 3. (a) From the sums appropriated therefor, the Secretary of the Treasury shall pay to each State which has an approved plan
old-age assistance, for each quarter, beg&Mac245;nning with the quarter commencing July 1, 1935 (1) all amount, which shall be used exclusively as oldage assistance, equal to one-half of the total of the sums expended during such quarter as old-age assistance under the State plan with respect to each individual who at the time of such expenditure is sixty-five years of age or older and is not an inmate of a public institution, not counting so much of such expenditure with respect to any indinidaal for any month as exceeds $30, and (2) 5 per centum of such amount, which shall be used for paying the costs of administrating the State plan or for old-age assistance, or both, and for no other purpose: Provided,
Th..Rs the State plan, in order to be approved by Board, need not provide for financial participation before July 1, 1937 by the State, in the case of any State which the Board, upon application by the State and after reasonable notice and opportunity for hearing to the State, finds is prevented by its constitution from providing such financial participation.
(b) The method of computing and paying amounts shall be as follows:
(1) The Board shall, prior to the beging of each quarter, estimate the amount be paid to the State for such quarter ,under the provisions of clause (1) of subsection (a), such estimate to be based on (A) a report filed by the State containing estimate of the total sum to be expended in such quarter in accordance with provisions of such clause, and stating amount appropriated or made available by the State and its political subdivisions such expenditures in such quarter, and
in such amount is less than one-half of the sum of such estimated expenditures, source or sources from which the diference is expected to be derived, (B) records showing the number of aged individual in the State, and (C) such other investigation as the Board may find necessary .. .
TITLE11
FREDAL OLD AGE BENIFITS
Old Age Reserve Account
- Section 201(a) There is hereby created an account in the Treasury of the United States to be known as the "Old-Age Reserve Account."
OLD-AGE BENEFIT PAYMENTS SEC. 202. (a)
Every qualified individual shall be entitled to receive, with respect to the period beginning on the date he attains the age of sixty-five, or on January 1, 1942, whichever is the later, and ending on the date of his death, an old-age benefit (payable as nearly as practicable in equal monthly installments) as follows:
(1) If the total wages determined by the Board to have been paid to him, with re spect to employment after December 31, 1936, and before he attained the age of sixty-five, were not more than $3,000, the old-age benefit shall be at a monthly rate of one-half of 1 per centum of such total wages;
(2) If such total wages were more than $3,000, the old-age benefit shall be at a monthly rate equal to the sum of the following:
(A) One-half of 1 per centum of $3,000; plus (B) One-twelfth of 1 per centum of the amount by which such total wages exceeded $3,000 and did not exceed $45,000; plus (C) One-twenty-fourth of 1 per cent um of the amount by which such total wages exceeded $45,000. (b) In no case shall the monthly rate computed under subsection (a) exceed $85
PAYMENTS UPON DEATH
SEC. 203. (a) If any individual dies before attaining the age of sixty-five, there shall be paid to his estate an amount equal to 3 1/2 per centum of the total wages determined by the Board to have been paid to him, with respect to employment after December 31, 1936....
PAYMENTS TO AGED INDIVIDUALS NOTQUALIFIED FOR BENEFITS
SEC. 204. (a) There shall be paid in a lump sum to any individual who, upon attaining the age of sixty-five, is not a qualified individual, an amount equal to 336 per centum of the total wages determined by the Board to have been paid to him, with respect to employ
ment after December 31, 1936, and before he attained the age of sixty-five.
(b) After any individual becomes entitled to any payment under subsection (a), no other payment shall be made under this title in any manner measured by wages paid to him, except that any part of any payment under subsection (a) which is not paid to him before his death shall be paid to his estate....
SEC. 210. .
(b) The term "employment" means any service, of whatever nature, performed within the United States by an employee for his employer, except—
( 1 ) Agricultural labor;
(2) Domestic service in a private home;
(3) Casual labor not in the course of the employer's trade or business;
(4) Service performed as an officer or member of the crew of a vessel documented under the laws of the United States or of any foreign country;
(5) Service performed in the employ of the United States Government or of an instrumentality of the United States;
(6) Service performed in the employ of a State, a political subdivision thereof, or an instrumentality of one or more States or political subdivisions;
(7) Service performed in the employ of a corporation, community chest, fund, or foundation, organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual....
TITLE EMIGRANTS TO STATES FOR UNEMPLOYMENT COMPENSATION ADMINISTRATION
APPROPRI ATION
SECTION 301. For the purpose of assisting the States in the administration of their unemployment compensation laws, there is hereby authorized to be appropriated, for the fiscal year ending June 30, 1936, the sum of $4,000,000, and for each fiscal year thereafter the sum of 49,00.0,000, to be used as hereinafter provided.
PAYMENTS TO STATES
SEC. 302. (a) The Board shall from time to time certify to the Secretary of the Treasury for payment to each State which has an unemployment compensation law approved by the Board under Title IX, such amounts as the Board determines to be necessary for the proper administration of such law during the fiscal year in which such payment is to be made. The Board's determination shall be based on ( 1 ) the population of the State; (2) an estimate of the number of persons covered by the State law and of the cost of proper administration of such law; and (3) such other factors as the Board finds relevant. The Board shall not certify for payment umder this section in any fiscal year a total amount in excess of the amount appropriated therefor for such fiscal year....
PROVISIONS OF STATE LAWS
SEC. 303. (a) The Board shall make no
certification for payment to any State unless it finds that the law of such State, approved by the Board under Title IX, includes provisions for—
( 1 ) Such methods of administration (other than those relating to selection, tenure of office, and compensation of personnel) as are found by the Board to be reasonably calculated to insure full payment of unemployment compensation when due; and
(2) Payment of unemployment compensation solely through public employment offices in the State or such other agencies as the Board may approve; and
(3) Opportunity for a fair hearing, before an impartial tribunal, for all individuals whose claims for unemployment compensation are denied; and
(4) The payment of all money received in the unemployment fund of such State, immediately upon such receipt, to the Secretary of the Treasury to the credit of the Unemployment Trust Fund established by section 904; and
(S) Expenditure of all money reotlisitioned by the State agency from the Unemployment Trust Fund, in the payment of unemployment compensation, exclusive of expenses of administration; and
(6) The making of such reports, in such
form and containing such information, as the Board may from time to time require, and compliance with such provisions as the Board may from time to time find necessary to assure the correctness and verification of such reports; and
( 7 ) Making available upon request to joy agency of the United States charged with the administration of public works or assistance through public employment, the name address, ordinary occupation and employment status of each recipient of unemplovment compensation, and a statement of such recipient's rights to further compensation under such law.
(b) Whenever the Board, after reasonable notice and opportunity for hearing to the
agency charged with the administration of the State law, finds that in the administration of the law there is—
(1)a denial, in a substantial number of cates of unemployment compensation to individuals entitled thereto under such
law :or
(2) a failure to comply substantially sith any provision specified in subsection (a); the Board shall notify such State agency that further payments will not be made to the State the Board is satisfied that there is
no longer any such denial or failure to comply. Until it is so satisfied it shall make no
further certification to the Secretary of the Treasury
with respect to such State....
TITLE IV—GRANTS TO STATES FOR AIDI TO DEPENDENT CHILDREN
1. APPROPRIATION
SECTSM 401. For the purpose of enabling
each State to furnish financial assistance, as far as practible under the conditions in such State, to needy dependent children, there is hereby authorized to be appropriated for the fiscal year ending June 30, 1936, the sum of $24,750,000, and there is hereby authorized to be appropriated for each fiscal year ending June 30, 1936,
a sum sufficient to carry out the purposes of this title. The sums made available under this section shall be used for making payments to States which have submitted, and had approved by the Board, State plans for aid to dependent children....
SEC. 403. (a) From the sums appropriated therefor, the Secretary of the Treasury shall pay to each State which has an approved plan for aid to dependent children, for each quarter, beginning with the quarter commencing July 1, 1935, an amount, which shall be used exclusively for carrying out the State plan, equal to one-third of the total of the sums expended during such quarter under such plan, not counting so much of such expenditure with respect to any dependent child for any month as exceeds $18, or if there is more than one dependent child in the same home, as exceeds $18 for any month with respect to one such dependent child and $12 for such month with respect to each of the other dependent children....
DEFINITI ONS
SEC. 40O. When used in this title—
(a) The term "dependent child" means a child under the age of sixteen who has been deprived of parental support or care by reason of the death, continued absence from the home, or physical or mental incapacity of a parent, and who is living with his father, mother, grandfather, grandmother, brother, sister, stepfather, stepmother, step brother, stepsister, uncle, or aunt, in a place of residence maintained by one or more of such relatives as his or their own home....
TITLE V—GRANTS TO STATES FOR MATERNAL AND CHILD WELFARE
PART 1—MATERNAL AND CHILD HEALTH SERVICES MP APPROPRI ATION
SECTION 501. For the purpose of enabling each State to extend and improve, as far as practicable under the conditions in such State, services for promoting the health of mothers and children, especially in rural areas and in areas suffering from severe economic distress, there is hereby authorized to be appropriated for each fiscal year, beginning with the fiscal year ending June 30, 1936, the sum of $3,800,000. The sums made available under this section shall be used for making payments to States which have submitted, and had approved by the Chief of the Children's Bureau, State plans for susb services.
SEC. 502. (a) Out of the sums appropriated pursuant to section 501 for each fiscal year the Secretary of Labor shall allot to each State $20,000, and such part of $1,800,000 as he finds that the number of live births in such State bore to the total ntnnber of live births in the United States, in the latest calendar year for which the Bureau of the Census has available statistics.
(b) Out of the sums appropriated pursuant to section 501 for each fiscal year the Secretary of Labor shall allot to the States $980,000 (in addition to the allotments made under subsection (a)), according to the financial need for each State for assistance in carrying out its State plan, as determined by him after taking into consideration the number of live births in such State....
APPROVAL OF STATE PLANS
SEC. 503. (a) A State plan for maternal and child-health services must (l) provide for financial participation by the State; (2) provide for the administration of the plan by the State health agency or the supervision of the administration of the plan by the State health agency; (3) provide such methods of administration (other than those relating to selection, tenure of office, and compensation of personnel) as are necessary for the efficient operation of the plan; (4) provide that the State health agency will make such reports, in such form and containing such information, as the Secretary of Labor may from time to time require, and comply with such provisions as he may from time to time find necessary to assure the correctness and verification of such reports; (5) provide for the extension and improvement of local maternal and childhealth services administered by local childhealth units; (6) provide for cooperation with medical, nursing, and welfare groups and organizations; and (7) provide for the development of demonstration services in needy areas and among groups in special need....
PART 2—SERVICES FOR CRIPPLED CHILDREN
APPROPRIATION
SEC. 511 For the purpose of enabling each State to extend and improve (especially in rural areas and in areas suffering from severe economic distress), as far as practicable under the conditions in such State, services for locating crippled children, and for providing medical, surgical, corrective, and other services and care, and facilities for diagnosis, hospitalization, and aftercare, for children who are crippled or who are suffering from conditions which lead to crippling, there is hereby authorized to be appropriated for each fiscal year, beginning with the fiscal year ending June 30, 1936, the sum of $2,850,000. The sums made available under this section shall be used for making payments to States which have submitted, and had approved by the Chief of the Children's Bureau, State plans for such services.
ALLOTMENTS TO STATES
SEC. 512. (a) Out of the sums appropriated pursuant to section 511 for each fiscal year the Secretary of Labor shall allot to each State $20l000, and the remainder to the States according to the need of each State as determined by him after taking into consideration the number of crippled children in such State in need of the services referred to in section 511 and the cost of furnishing such services to them.
PART 3—
CHILDWELFARE SERVICES
SEC. 521. (a) For the purpose of enabling the United States, through the Children's Bureau, to cooperate with State publicwelfare agencies in establishing, extending, and strengthening especially in predominantly rural areas, publicwelfare services (hereinafter in this section referred lo as "childwelfare services") for the protection and care of homeless, dependent, and neglected children, and children in danger of becoming delinquent, there is hereby authorized to be appropriated for each fiscal year, beginning with the fiscal year ending June 30, 1936, the sum of $1,500,000. Such amount shall be allotted by the Secretary of Labor for use by cooperating State public-welfare agencies on the basis of plans developed jointly by the State agency and the Children's Bureau, to each State, $10,000, and the remainder to each State on the basis of such plans, not to exceed such part of the remainder as the rural population of such State bears to the total rural population of the United States. The amount so allotted shall be expended for payment of part of the cost of district, county or other local child-welfare services in areas predorni-,
nantly rural, and for developing State services for the encouragement and assistance of adequate| methods of community child-welfare organization in areas predominantly rural and other areas of special need....
PART 4 VOCATIONAL REHABILITATION
SEC. 531. (a) In order to enable the United States to cooperate with the States and Hawaii in extending and strengthening their Programs of vocational rehabilitation of the phsically disabled, and to continue to carry out the provisions and purposes of the Act Stifled "An Act to provide for the promotion rof vocational rehabilitation of persons disabled in industry or otherwise and their return civil employment," approved June 2, ),.. . there is hereby authorized to be opriated for the fiscal years ending June 1936, and June 30, 1937, the sum of 1,000 for each such fiscal year in addition he amount of the existing authorization, for each fiscal year thereafter the sum of 3S,000.
Title VI—PUBLIC HEALTH WORK APPROPRIATION
601. For the purpose of assisting 5, counties, health districts, and other political subdivisions of the States in establishing¢ and maintaining adequate public-health including the training of personnel state and local health work, there is authorized to be appropriated for such year, beginning with the fiscal year endme 30, 1936, the sum of $8,000,000 to ed as hereinafter provided.
STATE AND LOCAL PUBLIC HEALTH SERVICES
602. (a) The Surgeon General of the Public Health Service, with the approval of |Secretary of the Treasury, shall, at the beginning of each fiscal year, allot to the States the total of (1) the amount appropripd for such year pursuant to section 601; Rand (2) the amounts of the allotments under this section for the preceding fiscal year remaing unpaid to the States at the end of |such fiscal year. The amounts of suchI allotments shall be determined on the basis of b the population; (2) the special health Operas and (3) the financial needs; of the respective States. Upon making such allotments the Surgeon General of the Public Health Service shall certify the amounts thereof to the Secretary of the Treasury.
(b) The amount of an allotment to any State under subsection (a) for any fiscal year, remaining unpaid at the end of such fiscal year, shall be available for allotment to States under subsection (a) for the succeeding fiscal year, in addition to the amount appropriated for such year.
(c) Prior to the beginning of each quarter of the fiscal year, the Surgeon General of the Public Health Service shall, with the approval of the Secretary of the Treasury, determine in accordance with rules and regulations previously prescribed by such Surgeon General after consultation with a conference of the State and Territorial health authorities, the amount to be paid to each State for such quarter from the allotment to such State, and shall certify the amount so determined to the Secretary of the Treasury. Upon receipt of such certification, the Secretary of the Treasury shall, through the Division of Disbursement of the Treasury Department and prior to audit or settlement by the General Accounting Office, pay in accordance with such certification.
(d) The moneys so paid to any State shall be expended solely in carrying out the purposes specified in section 6Ul, and in accordance with plans presented by the health authority of such State and approved by the Surgeon General of the Public Health Service.
INVESTIGATIONS
SEC. 603. (a) There is hereby authorized to be appropriated for each fiscal year, begin l ning with the fiscal year ending June 30, 1936, the sum of $2,000,000 for expenditure by the Public Health Service for investigation of disease and problems of sanitation....
TITLE VII—SOCIAL SECURITY BOARD ESTABLISHMENT
SECTION 701. There is hereby established a Social Security Board to be composed of three members to be appointed by the President, by and with the advice and consent of the Senate. During his term of membership on the Board, no member shall engage in any
other business, vocation, or employment. Not more than two of the members of the Board shall be members of the same political party. Each member shall receive a salary at the rate of $10,000 a year and shall hold office for a term of six years, . . .
DUTIES OF SOCIAL SECURITY BOARD
SEC. 702. The Board shall perform the duties imposed upon it by this Act and shall also have the duty of studying and making recommendations as to the most effective methods of providing economic security through social insurance, and as to legislation and matters of administrative policy concerning old-age pensions, unemployment compensation, accident compensation, and related subjects....
TITLE VIII—TAXES WITH RESPECT TO EMPLOYMENT INCOME TAX ON EMPLOYEES
SECTION 801. In addition to other taxes, there shall be levied, collected, and paid upon the income of every individual a tax equal to the following percentages of the wages (as defined in section 811) received by him after December 31, 1936, with respect to employment (as defined in section 811) after such date:
(1) With respect to employment during the calendar years 1937, 1938, and 1939, the rate shall be 1 per centum.
(2) With respect to employment during the calendar years 1940, 1941, and 1942, the rate shall be 1 1/2 per centum.
(3) With respect to employment during the calendar years 1943, 1944, and 1945, the rate shall be 2 per centum.
(4) With respect to employment during the calendar years 1946, 1947, and 1948, the rate shall be 236 per centum.
(5) With respect to employment after December 31, 1948, the rate shall be 3 per centum.
DEDUCTION OF TAX FROM WAGES
SEC. 802. (a) The tax imposed by section 801 shall be collected by the employer of the taxpayer, by deducting the amount of the tax from the wages as and when paid....
EXCISE TAX ON EMPLOYERS
SEC. 804. In addition to other taxes, every employer shall pay an excise tax, with respect to having individuals in his employ, equal to the following percentages of the wages (as defined in section 811) paid by him after December 31, 1936, with respect to employment (as defined in section 811) after such date:
(1) With respect to employment during the calendar years 1937, 1938, and 1939, the rate shall be 1 per centum.
(2) With respect to employment during the calendar years 1940, 1941, and 1942, the rate shall be 1% per century
(3) With respect to employment during the calendar years 1943, 1944, and 1945, the rate shall be 2 per centum.
(4) With respect to employment during the calendar years 1946, 1947, and 1948, the rate shall be 2% per centum.
(5) With respect to employment after December 31, 1948, the rate shall be 3 per centum....
DEFINITI ONS
SEC. 811. When used in this title—. . .
(b) The term "employment" means any service, of whatever nature, performed within the United States by an employee for his employer, except— ~~
(1) Agricultural labor; a
(2) Domestic service in a private homeai~
(3) Casual labor not in the course of
the employer's trade or business;
(4) Service performed by an individual
who has attained the age of sixty-five;
(5) Service performed as an officer or
member of the crew of a vessel documented under the laws of the United States or of any foreign country;
(6) Service performed in the employ of
the United States Government or of an instrumentality of the United States;
(7) Service performed in the employ of
a State, a political subdivision thereof, or an instrumentality of one or more Stales or political subdivisions;
(8) Service performed in the employ of
a corporation, community chest, fund, or foundation, organized and operated excluslvely for religious, charitable, scientific, literary, or educational purposes, or for the
prevention of cruelty to children or animals. no part of the net earnings of which inures to the benefit of any private shareholder or individual.
TITILE—TAX ON EMPLOYERS
OF EIGHT OR MORE
IMPOSITION OF TAX
SECTION 901. On and after January 1, 1936, every employer shall pay for each calendar year an excise tax, With respect to having indixidu.lls in lsis employ, equal to the following perlenelges of the total wages payable by him with respect to employment during such calendar year:
(I) With respect to employment during the calendar year 1936 the rate shall be 1 per centum:
(2) faith respect to employment during Fle calendar year 1937 the rate shall be 2 per centum:
(3) Hi ith respect to employment after Desember 31, 1937, the rate shall be 3 per centum.
CERTIFICATION OF STATE LAWS
Sec. 903. (a) The Social Security Board bill approve any State law submitted to it,
ithir thirty days of such submission, which
it finds provides that—
(l) All compensation is to be paid
IF through public employment offices in the State or such other agencies as the Board
may approve
(2) No compensation shall be payable with respect to any day of unemployment
occurring within two years after the first day of the first period with respect to
which contributions are required;
(3) All money received in the unemployment fund shall immediately upon such recipt be paid over to the Secretary of the Treasury to the credit of the Unemployment Trust Fund....
(5) Compensation shall not be denied in such State to any otherwise eligible individual for refusing to accept new work under
anyof the following conditions: (A) If the
position offered is vacant due directly to a
strike,lockout, or other labor dispute; (B)
if the wages, hours, or other conditions ofthe won offered are substantially less
favorable to the individual than those prevailing for similar work in the locality; (C) if as a condition of being employed the individual would be required to join a company union or to resign from or refrain from joining any bona fide labor organization.
UNEMPLOYMENT TRUST FUND
SEC. 904. (a) There is hereby established in the Treasury of the United States a trust fund to be known as the "Unemployment Trust Fund, . . ."
(b) It shall be the duty of the Secretary of the Treasury to invest such portion of the Fund as is not, in his judgment, required to meet current withdrawals. Such investment may be made only in interest bearing obligations of the United States or in obligations guaranteed as to both principal and interest by the United States....
INTERSTATE COMMERCE
SEC. 906. No person required under a State law to make payments to an unemployment fund shall be relieved from compliance therewith on the ground that he is engaged in interstate commerce, or that the State law does not distinguish between employees engaged in interstate commerce and those engaged in intrastate commerce.
DEFINITI ONS
SEC. 907. When used in this title—
(a) The term "employer" does not include any person unless on each of some twenty days during the taxable year, each day being in a different calendar week, the total number of individuals who were in his employ for some portion of the day (whether or not at the same moment of time) was eight or more....
TITLE X—GRANTS TO STATES FOR AID TO THE; BLIND APPROPRIATION
SECTION 1001. For the purpose of enabling each State to furnish financial assistance, as far as practicable under the conditions in such State, to needy individuals who are blind, there is hereby authorized to be appropriated for the fiscal year ending June 30, 1936, the
sum of $3,000,000, and there is hereby authorized to be appropriated for each fiscal year thereafter a sum sufficient to carry out the purposes of this title. The sums made available under this section shall be used formaking payments to States which have submitted, and had approved by the Social Security Board, State plans for aid to the blind....