maintenance of state effort

maintenance of state effort Sec. 221. (a) Section 1117(a) of the Social Security Act is amended by adding at the end thereof the following new sentence: “For any fiscal year ending on or after June 30, 1967, and before July 1, 1968, in lieu of the substitution provided by paragraph (3) or (4), at the option of the State (i) paragraphs (1) and (2) of this subsection shall be applied on a fiscal year basis (rather than on a quarterly basis), and (ii) the base period fiscal year shall be either the fiscal year ending June 30, 1965, or the fiscal year ending June 30, 1964 (whichever is chosen by the State). (b) Section 1117 of such Act is further amended by adding at the end thereof the following new subsection: “(d) (1) In the case of the quarters in any fiscal year ending before July 1, 1968, the reduction (if any) under this section shall, at the 81 Stat. 900option of the State, be determined under paragraph (2), (3), or (4) of this subsection instead of under the preceding provisions of this section. “(2) If the reduction determination is made under this paragraph for a State, then— “(A) subsection (a) shall be applied by taking into account only money payments under plans of the State approved under titles I, X, XIV, and XVI, and part A of title IV, “(B) subsection (b) shall be applied by eliminating each reference to title XIX, and “(C) subsection (c) shall be applied by eliminating the reference to section 1903, and by substituting a reference to this paragraph for the reference to subsections (a) and (b). “(3) If the reduction determination is made under this paragraph for a State, then— “(A) subsection (a) shall be applied by taking into account payments under section 523 and section 422, “(B) subsection (b) shall be applied by adding a reference to section 523 and section 422 after each reference to title XIX, and “(C) subsection (c) shall be applied by adding a reference to section 523 and section 422 after the reference to section 1903, and by substituting a reference to this paragraph for the reference to subsections (a) and (b). “(4) If the reduction determination is made under this paragraph for a State, then— “(A) subsection (a) shall be applied by taking into account only (i) money payments under plans of the State approved under titles I, X, XIV, and XVI, and part A of title IV, and (ii) payments under section 523 and section 422, “(B) subsection (b) shall be applied by eliminating each reference to title XIX and substituting a reference to section 523 and section 422, and “(C) subsection (c) shall be applied by eliminating the reference to section 1903 and substituting a reference to section 523 and section 422, and by substituting a reference to this paragraph for the reference to subsections (a) and (b).” (c) Section 1117(a) of such Act is further amended by striking out “December 31, 1965” and inserting in lieu thereof “June 30, 1966” (d) Effective July 1, 1968, section 1117 of the Social Security Act is repealed.