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PUBLIC ASSISTANCE-Continued

Item

Present law

H.R. 12580

I. Old-age assistance medical program-Continued

A. Matching formula-

Continued

The Federal percentages as promulgated for

the period Oct. 1, 1958, through June 30, 1961, are as follows: State.

Federal percentage Alabama

65. 00 Alaska.

50. 00 Arizona

63. 23 Arkansas.

65. 00 California

50. 00 Colorado

53. 42 Connecticut

50. 00 Delaware..

50. 00 District of Columbia.

50. 00 Florida.

59. 68 Georgia.

65. 00 Hawaii.

50.00 Idaho..

65.00 Illinois

50. 00 Indiana.

50. 00 Iowa.

63. 23 Kansas.

60. 78 Kentucky

65. 00 Louisiana.

65. 00 Maine.

65.00 Maryland.

50. 00 Massachusetts

50.00 Michigan.

50. 00 Minnesota.

58. 57 Mississippi

65. 00 Missouri.

53. 42 Montana.

54. 07 Nebraska.

63. 41 Nevada..

50. 00 New Hampshire.

57. 91 New Jersey

50.00 New Mexico.

65. 00 New York.

50.00 North Carolina..

65. 00 North Dakota.

65. 00 Ohio.

50. 00 Oklahoma.

65. 00 Oregon..

52. 58 Pennsylvania

50.00 Rhode Island,

50. 00 South Carolina..

65. 00 South Dakota.

65. 00 Tennessee

65. 00 Texas.

61. 36 Utah

65. 00 Vermont.

65. 00 Virginia

65. 00 Washington.

50. 00 West Virginia.

65. 00 Wisconsin.

54. 60 Wyoming-

50. 92 (23 F.R. 7150]

PUBLIC ASSISTANCE-Continued

Item

Present law

H.R. 12580

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If a State submits to the Secretary of Health,

Education, and Welfare a modification of its plan which satisfies the Secretary that it will result in a substantial improvement in its old-age assistance medical program, it will receive additional Federal matching. An increase of 5 percentage points in the Federal share of the additional vendor medical expenditures up to an average of $5 a month per recipient would be made. For example:

(1) It will increase the Federal share on the additional amount, within the matching maximum of $65 per month, from 65 to 70 percent in the lowest income States.

(2) It will increase the Federal share on the additional amount, within the matching maximum of $65 per month, from 50 to 55 percent in the highest income States.

(3) For States who are over the $65-&month matching maximum, the Federal share would be 5 percent of the additional

amount. Effective for quarter beginning Oct. 1, 1960. Bill: sec. 602. House report, pp. 9–11, 135, 136. Modifies exclusion as to vendor medical care

payments to permit Federal sharing as to an individual in a medical institution as a result of a diagnosis of tuberculosis or psychosis

for a period of 42 days. Effective date: July 1, 1961. Bill: Sec. 602. House report: p. 136. Provides that the Secretary would develop and

revise from time to time guides or recommended standards as to the level, content, and quality of medical care and medical services for the use of the States in evaluating and improving their public assistance medical care programs and their programs of medical services for the aged. For this purpose, the Secretary would also be directed to secure information from the States on their medical care and medical services under these programs and to publish these reports and other necessary informa

tion. Bill: Sec. 705. House report: pp. 9-10, 139.

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PUBLIC ASSISTANCE-Continued

Item

III. Temporary extension of

certain special provisions relating to State plans for aid to the blind.

MATERNAL AND CHILD WELFARE SERVICES

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Present law

H.R. 12580

Postpones termination date until June 30, 1964.
Bill: Sec. 706.
House report: pp. 57, 139.

Temporary legislation (sec. 344(b) of the

Social Security Amendments of 1950) relates to the approval by the Secretary of certain State plans for aid to the blind which do not meet in full the requirements of clause (8) of sec. 1002(a) of title X relating to the "needs" test. Expires June 30, 1961.

Authorizes $21,500,000 per year..

Out of the sum appropriated

1. $10,750,000 shall be allotted as follows: to each State a uniform base grant of $60,000 and the remainder in the proportion of live births in that State to the whole United States.

2. The other $10,750,000 is allotted accord-
ing to the financial need of each State after
taking into consideration the number of live
births in that State (proportionate reduction
in amounts if full authorized sum is not ap-
propriated).
No specific provision in the law.

Authorizes $25 million per year.
Effective date: Fiscal year 1961.
Bill: Sec. 707(a)(1)(A)
House report: pp. 5, 34, 49, 139.
Substitutes $12,500,000 for $10,750,000 in both

1 and 2 and also provides that the uniform

grant in i be increased from $60,000 to $70,000. Bill: Sec. 707(a)(1)(B). House report: p. 139.

Adds provision that not more than 25 percent

of the sums under B-2 (above) shall be avail-
able for grants to State health agencies, and
to public or other nonprofit institutions of
higher learning for special projects of region-
al or national significance which may con-
tribute to the advancement of maternal and

child health.
Bill: Sec. 707(b)(1)(A).
House report: pp. 34, 50, 139–140.

Authorizes $20 million per year.

Authorizes $25 million per year.
Effective date: Fiscal year 1961.
Bill: Sec. 707(2)(A).
House report: pp. 5, 34, 49, 139.
Same as B above.
Bill: Sec. 707(a)(2)(B).

Out of the sum appropriated

1. $10 million shall be allotted as follows: to each State $60,000 and the remainder according to need after taking into consideration the number of crippled children in each State in need of services and the cost of furnishing such services.

2. The other $10 million according to need of State as determined after taking into consideration the number of crippled children in each State in need of services and the cost of furnishing such services to them,

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II, Crippled children's serv

ices—Continued

C. Special project

grants. III. Child welfare services:

A. Authorization of annual appropriation.

B. Allotment to States.

Authorizes $17 million per year.

Authorizes $20 million per year.
Effective date: Fiscal year 1961.
Bill: Sec. 707(a)(3)(A).
House report: pp. 5, 34, 49, 139.
Changes the $60,000 to $70,000.
Bill: Sec. 707(a)(3)(A)(B).
House report: pp. 5, 34, 49, 139.

Out of the sum appropriated allots to a State

such portion of $60,000 as the amount appropriated bears to the amount authorized to be appropriated. The remainder of sums appropriated shall be alloted so that each State shall have an amount which bears the same ratio to the total remainder as the product of (1) the population of each State under the age of 21 and (2) the allotment percentage (based on relative per capita income) bears to the sum of the correspond

ing products of all the States. No provision.

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Authorizes appropriation for grants by the

Secretary of Health, Education, and Welfare to public or other nonprofit institutions of higher learning and to public and nonprofit agencies and organizations engaged in research or child welfare activities, for special research or demonstration projects for the demonstration of new methods or facilities which show promise of substantial contribu

tion to the advancement of child welfare. Bill: Sec. 707(b) (3). House report: pp. 50, 140.

EMPLOYMENT SECURITY (UNEMPLOYMENT COMPENSATION)

Item

Present law

I. Coverage.

In general, the unemployment compensation

program covers all employees in commerce and industry who are employed by an employer of 4 or more workers on at least 1

day of 20 weeks in a calendar year. 17 specific exclusions from coverage

are

H.R. 12580

spelled out in the Federal Unemployment
Tax Act (sec. 3306(c)).

Coverage is extended, generally effective in

1962, to several categories of employees presently specifically excluded. These include:

(1) Employees of certain instrumentalities of the United States which are neither wholly or partially owned by the United States, including Federal Reserve banks, Federal credit unions, Federal land banks, and others. Employees of partially owned instrumentalities such as banks for cooperatives and Federal intermediate credit banks are brought under the unemployment compensation program for Federal employees, effective in 1961.

(2) Employees serving on or in connection with American aircraft outside the United States.

(3) Employees of "feeder organizations,” all of whose profits are payable to a nonprofit organization and employees of nonprofit organizations which are not exempt from income tax.

(4) Certain employees of certain taxexempt organizations, including agricultural and horticultural organizations, voluntary employee beneficiary associations, and fra

ternal beneficiary societies.
Bill: Secs. 531-535.
House report, pp. 55-56, 124-126.
Puerto Rico will be treated as a State for the

purposes of the Federal-State unemployment
compensation system beginning Jan. 1, 1961.
Federal employees and ex-servicemen will
not have their benefits computed under

Puerto Rican law until 1966.
Bill: Secs. 541-543.
House report, pp. 57, 127-128.

II. Extension to Puerto Rico. The Commonwealth of Puerto Rico has an

independent unemployment compensation
program. Employers in Puerto Rico are
not subject to the Federal unemployment
tax and Puerto Rico is not entitled to Fed-
eral grants to cover the administrative ex-
penses of its unemployment compensation
program. The cost of employment service,
however, is covered by Federal grants

under the Wagner-Peyser Act.
III. Administrative financing:
A. Federal

unem- Each employer is taxed 3 percent on the 1st ployment tax rate.

$3,000 of an employees' covered wages, of
which 90 percent (2.7 percent of taxable
payrolls) may be offset by unemployment
taxes paid under State law or tax savings
allowed under State law through experience
rating. The net Federal tax is 0.3 percent

of taxable payroll.
B. Unemployment Receipts from State taxes go into the various
Trust Fund.

State accounts in the Unemployment
Trust Fund. The sums allocated to State
accounts are generally available for benefit
payments.

Effective in 1961, the tax rate is raised to 3.1

percent on the 1st $3,000 of covered wages,
which results in a net Federal tax of 0.4 per-

cent of taxable payroll.
Bill: Sec. 523.
House report, pp. 55, 118.

No change in State accounts.

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