74 1 "ALTERNATE PROVISION FOR DIRECT FEDERAL PAYMENTS 2 3 TO INDIVIDUALS "SEC. 1605. The Secretary may enter into an agreement 4 with a State under which he will, on behalf of the State, 5 pay aid to the aged, blind, and disabled directly to individuals 6 in the State under the State's plan approved under this title 7 and perform such other functions of the State in connection 8 with such payments as may be agreed upon. In such case payments shall not be made as provided in section 1604 10 and the agreement shall also provide for payment to the 11 Secretary by the State of its share of such aid (adjusted to 12 reflect the State's share of any overpayments recovered under 13 section 1606). 14 15 "OVERPAYMENTS AND UNDERPAYMENTS "SEC. 1606. Whenever the Secretary finds that more or 16 less than the correct amount of payment has been made to 17 any person as a direct Federal payment pursuant to section 18 1605, proper adjustment or recovery shall, subject to the 19 succeeding provisions of this section, be made by appropriate 20 21 adjustments in future payments of the overpaid individual or by recovery from him or his estate or payment to him. 22 The Secretary shall make such provision as he finds appro23 priate in the case of payment of more than the correct amount 24 of benefits with a view to avoiding penalizing individuals 25 who were without fault in connection with the overpayment, 75 1 if adjustment or recovery on account of such overpayment 2 in such case would defeat the purposes of this title, or be 3 against equity or good conscience, or (because of the small 4 amount involved) impede efficient or effective administration. "OPERATION OF STATE PLANS 5 6 "SEC. 1607. If the Secretary, after reasonable notice and 7 opportunity for hearing to the State agency administering 8 or supervising the administration of the State plan approved 9 under this title, finds 10 11 12 13 "(1) that the plan no longer complies with the provisions of sections 1602 and 1603; or "(2) that in the administration of the plan there is a failure to comply substantially with any such provision; 14 the Secretary shall notify such State agency that all, or such 15 portion as he deems appropriate, of any further payments 16 will not be made to the State or individuals within the State 17 under this title (or, in his discretion, that payments will be 18 limited to categories under or parts of the State plan not af19 fected by such failure), until the Secretary is satisfied that 21 there will no longer be any such failure to comply. Until he is so satisfied he shall make no such further payments to the 22 State or individuals in the State under this title (or shall 24 limit payments to categories under or parts of the State plan not affected by such failure). 1 2 3 76 "PAYMENTS TO STATES FOR SERVICES AND ADMINISTRATION "SEC. 1608. (a) If the State plan of a State approved 4 under section 1602 provides that the State agency will make 5 available to applicants for or recipients of aid to the aged, 6 blind, and disabled under the State plan at least those services 7 to help them attain or retain capability for self-support or 8 self-care which are prescribed by the Secretary, such State 9 shall qualify for payments for services under subsection (b) 10 of this section. 11 "(b) In the case of any State whose State plan ap12 proved under section 1602 meets the requirements of sub13 section (a), the Secretary shall pay to the State from the 14 sums appropriated therefor an amount equal to the sum of 15 the following proportions of the total amounts expended dur16 ing each quarter, as found necessary by the Secretary for the 17 proper and efficient administration of the State plan "(1) 75 per centum of so much of such expenditures as are for "(A) services which are prescribed pursuant to subsection (a) and are provided (in accordance with subsection (c)) to applicants for or recipients of aid under the plan to help them attain or retain capability for self-support or self-care, or "(B) other services, specified by the Secretary 77 as likely to prevent or reduce dependency, so provided to the applicants for or recipients of aid, or "(C) any of the services prescribed pursuant to subsection (a), and any of the services specified in subparagraph (B) of this paragraph, which the Secretary may specify as appropriate for individuals who, within such period or periods as the Secretary may prescribe, have been or are likely to become applicants for or recipients of aid under the plan, if such services are requested by the individuals and are provided to them in accordance with subsection (c), or "(D) the training of personnel employed or preparing for employment by the State agency or by the local agency administering the plan in the political subdivision; plus "(2) one-half of so much of such expenditures (not included under paragraph (1)) as are for services provided (in accordance with subsection (c)) to applicants for or recipients of aid under the plan, and to individuals requesting such services who (within such period or periods as the Secretary may prescribe) have been or are likely to become applicants for or recipients of such aid; plus "(3) one-half of the remainder of such expenditures. 78 1 "(c) The services referred to in paragraphs (1) and 2 (2) of subsection (b) shall, except to the extent specified 3 by the Secretary, include only— "(1) services provided by the staff of the State agency, or the local agency administering the State plan in the political subdivision (but no funds authorized under this title shall be available for services defined as vocational rehabilitation services under the Vocational Rehabilitation Act (A) which are available to individuals in need of them under programs for their rehabilitation carried on under a State plan approved under that Act, or (B) which the State agency or agencies administering or supervising the administration of the State plan approved under that Act are able and willing to provide if reimbursed for the cost thereof pursuant to agreement under paragraph (2), if provided by such staff), and "(2) subject to limitations prescribed by the Secretary, services which in the judgment of the State agency cannot be as economically or as effectively provided by the staff of that State or local agency and are not otherwise reasonably available to individuals in need of them, and which are provided, pursuant to agreement with the State agency, by the State health authority or the State agency or agencies administering or supervis |