Pub. L. 93-647, pt. A, sec. 2

Sec. 2. The Social Security Act is amended by inserting at the end thereof the following new title: “TITLE XX— GRANTS TO STATES FOR SERVICES “appropriation authorized “Sec. 2001. For the purpose, of encouraging each State, as far practicable under the conditions in that State, to furnish services directed at the goal of— “(1) achieving or maintaining economic self-support to prevent, reduce, or eliminate dependency, “(2) achieving or maintaining self-sufficiency, including reduction or prevention of dependency, “(3) preventing or remedying neglect, abuse, or exploitation of children and adults unable to protect their own interests, or preserving, rehabilitating, or reuniting families, “(4) preventing or reducing inappropriate institutional care by providing for community-based care, home-based care, or other forms of less intensive care, or “(5) securing referral or admission for institutional care when other forms of care are not appropriate, or providing services to individuals in institutions, there is authorized to be appropriated for each fiscal year 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 under section 2002. “payments to states “Sec. 2002. (a) (1) From the sums appropriated therefor, the Secretary shall, subject to the provisions of this section and section 2003, pay to each State, for each quarter, an amount equal to 90 per centum of the total expenditures during that quarter for the provision of fam-88 Stat. 2338ily planning services and 75 per centum of the total expenditures during that quarter for the provision of other services directed at the goal of— “(A) achieving or maintaining economic self-support to prevent, reduce, or eliminate dependency, “(B) achieving or maintaining self-sufficiency, including reduction or prevention of dependency, “(C) preventing or remedying neglect, abuse, or exploitation of children and adults unable to protect their own interests, or preserving, rehabilitating, or reuniting families, “(D) preventing or reducing inappropriate institutional care by providing for community-based care, home-based care, or other forms of less intensive care, or “(E) securing referral or admission for institutional care when other forms of care are not appropriate, or providing services to individuals in institutions, including expenditures for administration (including planning and evaluation) and personnel training and retraining directly related to the provision of those services (including both short- and long-term training at educational institutions through grants to such institutions or by direct financial assistance to students enrolled in such institutions). Services that are directed at these goals include, but are not limited to, child care services, protective services for children and adults, services for children and adults in foster care, services related to the management and maintenance of the home, day care services for adults, transportation services, training and related services, employment services, information, referral, and counseling services, the preparation and delivery of meals, health support services and appropriate combinations of services designed to meet the special needs of children, the aged, the mentally retarded, the blind, the emotionally disturbed, the physically handicapped, and alcoholics and drug addicts. “(2) (A) No payment with respect to any expenditures other than expenditures for personnel training or retraining directly related to the provision of services may be made under this section to any State for any fiscal year in excess of an amount which bears the same ratio to $2,500,000,000 as the population of that State bears to the population of the fifty States and the District of Columbia. The Secretary shall promulgate the limitation applicable to each State for each fiscal year under this paragraph prior to the first day of the third month of the preceding fiscal year, as determined on the basis of the most recent satisfactory data available from the Department of Commerce. “(B) Each State with respect to which a limitation is promulgated under subparagraph (A) for any fiscal year shall, at the earliest practicable date after the commencement of such fiscal year (and in accordance with regulations prescribed by the Secretary), certify to the Secretary whether the amount of its limitation is greater or less than the amount needed by the State, for uses to which the limitation applies, for such fiscal year and, if so, the amount by which the amount of such limitation is greater or less than such need. 88 Stat. 2339 “(C) If any State certifies, in accordance with subparagraph (B), that the amount of its limitation for any fiscal year is greater than its need for such year, then the amount of the limitation of such State for such year shall be reduced by the excess of its limitation amount over its need, and the amount of such reduction shall be available for allotment as provided in subparagraph (D). “(D) Of the amounts made available, pursuant to subparagraph (C), for allotment for any fiscal year, the Secretary (i) shall allot to the jurisdiction of Puerto Rico $15,000,000, to the jurisdiction of Guam $500,000, and to the jurisdiction of the Virgin Islands $500,000, which shall be. available to each such jurisdiction in addition to amounts available under section 1108 for purposes of matching the expenditures of such jurisdictions for services pursuant to sections 3(a)(4) and (5), 403(a)(3), 1003(a)(3) and (4) 1403(a)(3) and (4), and 1603(a)(4) and (5): Provided, That if the amounts made available, pursuant to subparagraph (C), are insufficient to meet the requirements of this clause, then such amounts as are available shall be allotted to each of the three jurisdictions in proportion to their respective populations. “(3) No payment may be made under this section to any State with respect to any expenditure for the provision of any service to any individual unless— “(A) the State’s services program planning meets the requirements of section 2004, and “(B) the final comprehensive annual services plan in effect when the service is provided to the individual includes the provision of that service to a category of individuals which includes that individual in the descriptions required by section 2004(2) (B) and (C) of the services to be provided under the plan and the categories of individuals to whom the services are to be provided. The Secretary may not deny payment under this section to any State with respect to any expenditure on the ground that it is not an expenditure for the provision of a service or is not an expenditure for the provision of a service directed at a goal described in paragraph (1) of this subsection. “(4) So much of the aggregate expenditures with respect to which payment is made under this section to any State for any fiscal year as equals 50 per centum of the payment made under this section to the State for that fiscal year must be expended for the provision of services to individuals— “(A) who are receiving aid under the plan of the State approved under part A of title IV or who are eligible to receive such aid, or “(B) whose needs are taken into account in determining the needs of an individual who is receiving aid under the plan of the State approved under part A of title IV, or who are eligible to have their needs taken into account in determining the needs of an individual who is receiving or is eligible to receive such aid, or 88 Stat. 2340 “(C) with respect to whom supplemental security income benefits under title XVI or State supplementary payments, as defined in section 2007 (1), are being paid, or who are eligible to have such benefits or payments paid with respect to them, or “(D) whose income and resources are taken into account in determining the amount of supplemental security income benefits or State supplementary payments, as defined in section 2007(1), being paid with respect to an individual, or whose income and resources would be taken into account in determining the amount of such benefits or payments to be paid with respect to an individual who is eligible to have such benefits or payments paid with respect to him, or “(E) who are eligible for medical assistance under the plan of the State approved under title XIX. “(5) No payment may be made under this section to any State with respect to any expenditure for the provision of any service to any individual— “(A) who is receiving, or whose needs are taken into account in determining the needs of an individual who is receiving, aid under the plan of the State approved under part A of title IV, or with respect to whom supplemental security income benefits under title XVI or State supplementary payments, as defined in section 2007(1), are being paid, or “(B) who is a member of a family the monthly gross income of which is less than the lower of— “(i) 80 per centum of the median income of a family of four in the State, or “(ii) the median income of a family of four in the fifty States and the District of Columbia, adjusted, in accordance with regulations prescribed by the Secretary, to take into account the size of the family, if any fee or other charge (other than a voluntary contribution) imposed on the individual for the provision of that service is not consistent with such requirements (including requirements prohibiting the imposition of any such fee or charge) as the Secretary shall prescribe. “(6) No payment may be made under this section to any State with respect to any expenditure for the provision of any service, other than an information or referral service or a service directed at the goal of preventing or remedying neglect, abuse, or exploitation of children and adults unable to protect their own interests, to any individual who is not an individual described in paragraph (5), and— “(A) who is a member of a family the monthly gross income of which exceeds 115 per centum of the median income of a family of four in the State, adjusted, in accordance with regulations prescribed by the Secretary, to take into account the size of the family, or “(B) who is a member of a family the monthly gross income of which— 88 Stat. 2341 “(i) exceeds the low of— “(I) 80 per centum of the median income of a family of four in the State, or “(II) the median income of a family of four in the fifty States and the District of Columbia, adjusted, in accordance with regulations prescribed by the. Secretary, to take into account the size of the family, and “(ii) does not exceed 115 per centum of the median income of a family of four in the State, adjusted, in accordance with regulations prescribed by the Secretary, to take into account the size of the family, unless a fee or other charge reasonably related to income is imposed on the individual for the provision of the service. The Secretary shall promulgate the median income of a family of four in each State and the fifty States and the District of Columbia applicable to payments with respect to expenditures in each fiscal year prior to the first day of the third month of the preceding fiscal year. “(7) No payment may be made under this section to any State with respect to any expenditure— “(A) for the provision of medical or any other remedial care, other than family planning services, unless it is an integral but subordinate part of a service described in paragraph (1) of this subsection and Federal financial participation with respect, to the expenditure is not available under the plan of the State approved under title XIX; or “(B) for the purchase, construction, or major modification of any land, building or other facility, or fixed equipment; or “(C) which is in the form of goods or services provided in kind by a private entity; or “(D) which is made from donated private funds, unless such funds— “(i) are transferred to the State and are under its administrative control, and “(ii) are donated to the State without restrictions as to use, other than restrictions as to the services with respect to which the funds are to be used imposed by a donor who is not a sponsor or operator of a program to provide those services, or the geographic area in which the services with respect to which the contribution is used are to be provided, and “(iii) do not revert to the donor’s facility or use if the. donor is other than a nonprofit organization; or “(E) for the provision of room or board (except as provided by paragraph (11) (C)) other than room or board provided for a period of not more than six consecutive months as an integral but subordinate part of a service described in paragraph (1) of this subsection. 88 Stat. 2342 “(8) No payment may be made under this section with respect to any expenditure if payment is made with respect to that expenditure under section 403 or 422 of this Act. “(9) (A) No payment may be made under this section with respect to any expenditure in connection with the provision of any child day care service, unless— “(i) in the case of care provided in the child’s home, the care meets standards established by the State which are reasonably in accord with recommended standards of national standard-setting organizations concerned with the home care of children, or “(ii) in the case of care provided outside the child’s home, the care meets the Federal interagency day care requirements as approved by the Department of Health, Education, and Welfare and the Office of Economic Opportunity on September 23, 1968; except that (I) subdivision III of such requirements with respect to educational services shall be recommended to the States and not required, and staffing standards for school-age children in day care centers may be revised by the Secretary, (II) the staffing standards imposed with respect to such care in the case of children under age 3 shall conform to regulations prescribed by the Secretary, and (III) the staffing standards imposed with respect to such care in the case of children aged 10 to 14 shall require at least one adult for each 20 children, and in the case of school-aged children under age 10 shall require at least one adult for each 15 children, except as provided in subparagraph (B). “(B) The Secretary shall submit to the President of the Senate and the Speaker of the House of Representatives, after December 31, 1976, and prior to July 1, 1977, an evaluation of the appropriateness of the requirements imposed by subparagraph (A), together with any recommendations he may have for modification of those requirements. No earlier than ninety days after the submission of that report, the Secretary may, by regulation, make such modifications in the requirements imposed by subparagraph (A) as he determines are appropriate. “(C) The requirements imposed by this paragraph are in lieu of any requirements that would otherwise be applicable under section 522(d) of the Economic. Opportunity Act of 1964 to child day care services with respect to which payment is made under this section. “(10) No payment may be made under this section with respect to any expenditure for the provision of any educational service which the State makes generally available to its residents without cost and without regard to their income. “(11) No payment may be made under this section with respect to any expenditure for the provision of any service to any individual living in any hospital, skilled nursing facility, or intermediate care facility (including any such hospital or facility for mental diseases or for the mentally retarded), any prison, or any foster family home except— 88 Stat. 2343 “(A) any expenditure for the provision of a service that (i) is provided by other than the hospital facility, prison, or foster family home in which the individual is living, and (ii) is provided, under the State’s program for the provision of the services described in paragraph (1), to individuals who are not living in a hospital, skilled nursing facility, intermediate care facility, prison, or foster family home, “(B) any expenditure which is for the cost, in addition to the cost of basic foster care, of the provision, by a foster family home, to an individual living in that home, of a service which meets a special need of that individual, as determined under regulations prescribed by the Secretary, and “(C) any expenditure for the provision of emergency shelter provided to a child, for not in excess of thirty days, as a protective service. “(12) No payment may be made under this section with respect to any expenditure for the provision of cash payments as a service. “(13) No payment may be made under this section with respect to any expenditure for the provision of any service to any individual to the extent that the provider of the service or the individual receiving the service is eligible to receive payment under title XVIII with respect to the provision of the service. “(b) (1) Prior to the beginning of each quarter the Secretary shall estimate the amount to which a State will be entitled under this section for that quarter on the basis of a report filed by the State containing its estimate of the amount to be expended during that quarter with respect to which payment must be made under this section, together with an explanation of the bases for that estimate. “(2) The Secretary shall then pay to the State, in such installments as he may determine, the amount so estimated, reduced or increased to the extent of any overpayment or underpayment which the Secretary determines was made under this section to the State for any prior quarter and with respect to which adjustment has not already been made under this subsection. “(3) Upon the making of any estimate by the Secretary under this subsection, any appropriations available for payments under this section shall be deemed obligated. “program reporting “Sec. 2003. (a) Each State which participates in the program established by this title shall make such reports concerning its use of Federal social services funds as the Secretary may by regulation provide.” “(b) Each State which participates in the program established by this title shall assure that the aggregate expenditures from appropriated funds from the State and political subdivisions thereof for the provision of services during each services program year (as established under the requirements of section 2002(a) (3)) with respect to which payment is made under section 2002 is not less than the aggregate expenditures from such appropriated funds for the prevision of those, services during the fiscal year ending June 30, 1973, or the fiscal year ending June 30, 1974. with respect to which payment was made under the plan of the State approved under title I, VI, X, XIV, or XVI, or part A of title IV, whichever is less, except that the requirements of this subsection shall not apply to any State for any services program year if the payment to the State under section 2002, for each fiscal year any part of which is included in that services program year, with 88 Stat. 2344respect to expenditures other than expenditures for personnel training or retraining directly related to the provision of services, equals the allotment of the State for that fiscal year under section 2002(a) (2). “(c) (1) If the Secretary, after reasonable notice and an opportunity for a hearing to the State, finds that there is a substantial failure to comply with any of the requirements imposed by subsections (a) and (b) of this section, he shall, except as provided in paragraph (2), notify the State that further payments will not be made to the State under section 2002 until he is satisfied that there will no longer be any such failure to comply, and until he is so satisfied he shall make no further payments to the State. “(2) The Secretary may suspend implementation of any termination of payments under paragraph (1) for such period as he determines appropriate and instead reduce the amount otherwise payable to the State under section 2002 for expenditures during that period by 3 per centum for each of subsections (a) and (b) of this section with respect to which there was a finding of substantial noncompliance and with respect to which he is not yet satisfied that there will no longer be any such failure to comply. “(d) (1) Each State which participates in the program established by this title shall have a plan applicable to its program for the provision of the services described in section 2002(a) (1) which— “(A) provides that an opportunity for a fair hearing before the appropriate State agency will be granted to any individual whose claim for any service described in section 2002(a)(1) is denied or is not acted upon with reasonable promptness; “(B) provides that the use or disclosure of information obtained in connection with administration of the State’s program for the provision of the services described in section 2002(a) (1) concerning applicants for and recipients of those services will be restricted to purposes directly connected with the administration of that program, the plan of the State approved under part A of title IV, the plan of the State developed under part 13 of that title, the supplemental security income program established by title XVI, or the plan of the State approved under title XIX; “(C) provides for the designation, by the chief executive officer of the State or as otherwise provided by the laws of the State, of an appropriate agency which will administer or supervise the administration of the State’s program for the provision of the services described in section 2002(a) (1); “(D) provides that the State will, in the administration of its program for the provision of the services described in section 2002(a)(1), use such methods relating to the establishment and maintenance of personnel standards on a merit basis as are found by the Secretary to be necessary for the proper and efficient operation of the program, except that the Secretary shall exercise no authority with respect to the selection, tenure, of office, or compensation of any individual employed in accordance with such methods; “(E) provides that no durational residency or citizenship requirement will be, imposed as a condition to participation in the program of the State for the provision of the services described in section 2002(a) (1); “(F) provides, if the State program for the provision of the services described in section 2002(a) (1) includes services to individuals living in institutions or foster homes, for the establishment or designation of a State authority or authorities which shall be responsible for establishing and maintaining standards for such 88 Stat. 2345institutions or homes which are reasonably in accord with recommended standards of national organizations concerned with standards for such institutions or homes, including standards related to admissions policies, safety, sanitation, and protection of civil rights; “(G) provides, if the State program for the provision of the services described in section 2002(a)(1) includes child day care services, for the establishment or designation of a State authority or authorities which shall be responsible for establishing and maintaining standards for such services which are reasonably in accord with recommended standards of national organizations concerned with standards for such services, including standards related to admission policies for facilities providing such services, safety. sanitation, and protection of civil rights; “(H) provides that the State’s program for the provision of the services described in section 2002(a)(1) will be in effect in all political subdivisions of the State; and “(I) provides for financial participation by the State in the provision of the services described in section 2002(a)(1). Notwithstanding clause (C), if on December 1, 1974, the State agency which administered or supervised the administration of the portion of the plan of the State for services to the aged, blind, or disabled approved under title VI of this Act which related to blind individuals was different from the agency which administered or supervised the administration of the rest of that plan, the State agency which administered or supervised the administration of the portion of the plan of the State for services to the aged, blind, or disabled related to blind individuals may be designated to administer or supervise the administration of the portion of the State’s program for the provision of the services described in section 2002(a)(1) related to blind individuals and a separate State agency may be designated to administer or supervise the administration of the rest of the program; and in such case the part of the program which each agency administers, or the administration of which each agency supervises, shall lie regarded as a separate program for the provision of the services described in section 2002(a) (1) for purposes of this title. The date selected by the State pursuant to section 2004(1) as the beginning of the services program year for each of the separate programs shall be the same. “(2) The Secretary shall approve any plan which complies with the provisions of paragraph (1). “(e) (1) No payment may be made under section 2002 to any State which does not have a plan approved under subsection (g). “(2) In the case of any State plan which has been approved by the Secretary under subsection (d), if the Secretary, after reasonable notice and an opportunity for a hearing to the State, finds— “(A) that the plan no longer complies with the provisions of subsection (d) (1), or “(B) that in the administration of the plan there is a substantial failure to comply with any such provision, the Secretary shall, except as provided in paragraph (3), notify the State that further payments will not be made to the State under section 2002 until he is satisfied that there will no longer be any such failure. to comply, and until he is so satisfied he shall make no further payments to the State. “(3) The Secretary may suspend implementation of any termination of payments under paragraph (2) for such period as he determines appropriate and instead reduce the amount otherwise payable to the 88 Stat. 2346State under section 2002 for expenditures during that period by 3 percent for each clause of subsection (d)(1) with, respect to which there is a finding of noncompliance and with respect to which he is not yet satisfied that there will no longer be any such failure to comply. “services program planning “Sec. 2004. A State’s services program planning meets the requirements of this section if. for the purpose of assuring public participation in the development of the program for the provision of the services described in section 2002(a) (1) within the State— “(1) the beginning of the fiscal year of either the Federal Government or the State government is established as the beginning of the State’s services program year; and “(2) at least ninety days prior to the beginning of the State’s services program year, the chief executive officer of the State, or such other official as the laws of the State provide, publishes and makes generally available (as defined in regulations prescribed by the Secretary after consideration of State laws governing notice of actions by public officials) to the public a proposed comprehensive annual services program plan prepared by the agency designated pursuant to the requirements of section 2003 (d)(1)(C) and, unless the laws of the State provide otherwise, approved by the chief executive officer, which sets forth the State’s plan for the provision of the services described in section 2002(a) (1) during that year, including— “(A) the objectives to be achieved under the program, “(B) the services to be provided under the program, including at least one service directed at at least one of the goals in each of the five categories of goals set forth in section 2002(a)(1) (as determined by the State) and including at least three types of services (selected by the State) for individuals who are recipients of supplemental security income benefits under title X VI and who are in need of such services, together with a definition of those services and a description of their relationship to the objectives to be achieved under the program and the goals described in section 2002(a)(1), “(C) the categories of individuals to whom those services are to be provided, including any categories based on the income of individuals or their families, “(D) the geographic areas In which those services are to be provided, and the nature and amount of the services to be provided in each area, “(E) a description of the planning, evaluation, and reporting activities to be carried out under the program, “(F) the sources of the resources to be used to carry out the program, “(G) a description of the organizational structure through which the program will be administered, including the extent to which public and private agencies and volunteers will be utilized in the provision of services, “(H) a description of how the provision of services under the program will be coordinated with the plan of the State approved under part A of title IV, the plan of the State developed under part B of that title, the supplemental security income program established by title XVI, the plan of the State approved under title XIX, and other programs for the provision of related human services within the State, includ-88 Stat. 2347ing the steps taken to assure maximum feasible utilization of services under these programs to meet the needs of the low income population, “(I) the estimated expenditures under the program, including estimated expenditures with respect to each of the services to be provided, each of the categories of individuals to whom those services are to be provided, and each of the geographic areas in which those services are to be provided, and a comparison between estimated non-Federal expenditures under the program and non-Federal expenditures for the provision of the services described in section 2002(a)(1) in the State during the preceding services program year, and “(J) a description of the steps taken, or to be taken, to assure that the needs of all residents of, and all geographic areas in, the State were taken into account in the development of the plan; and “(3) public comment on the proposed plan is accepted for a period of at least forty-five days; and “(4) at least forty-five days after publication of the proposed plan and prior to the beginning of the State’s services program year, the chief executive officer of the State, or such other official as the laws of the State provide, publishes a final comprehensive annual services program plan prepared by the agency designed pursuant to the requirements of section 2003(d)(1)(C) and, unless the laws of the State provide otherwise, approved by the chief executive officer, which sets forth the same information required to be included in the proposed plan, together with an explanation of the differences between the proposed and final plan and the reasons therefor; and “(5) any amendment to a final comprehensive services program plan is prepared by the agency designated pursuant to section 2003(d)(1)(C), approved by the chief executive officer of the State unless the laws of the State provide otherwise, and published by the chief executive officer of the State, or such other official as the laws of the State provide, as a proposed amendment on which public comment is accepted for a period of at least thirty days, and then prepared by the agency designated pursuant to section 2003(d)(1)(C). approved by the chief executive officer of the State unless the laws of the State provide otherwise, and published by the chief executive officer of the State, or such other official as the laws of the State provide, as a final amendment, together with an explanation of the differences between the proposed and final amendment and the reasons therefor. “effective date of regulations published by the secretary “Sec. 2005. No final regulation published by the Secretary under this title shall be effective with respect to payments under section 2002 for expenditures during any quarter commencing before the beginning of the first services program year established by the State under the requirements of section 2002(a) (3) which begins at least sixty days after the publication of the final regulation. “evaluation; program assistance “Sec. 2006. (a) The Secretary shall provide for the continuing evaluation of State programs for the provision of the services described in section 2002(a) (1). 88 Stat. 2348 “(b) The Secretary shall make available to the States assistance with respect to the content of their services program, and their services program planning, reporting, administration, and evaluation. “(c) Within six months after the close of each fiscal year, the Secretary shall submit to the Congress a report on the operation of the program established by this title during that year, including— “(1) the evaluations carried out under subsection (a) and the results obtained therefrom, and “(2) the assistance provided under subsection (b) during that year. “definitions “Sec. 2007. For purposes of this title— “(1) the term ‘State supplementary payment’ means any cash payment made by a State on a regular basis to an individual who is receiving supplemental security income benefits under title XVI or who would but for his income be eligible to receive such benefits, as assistance based on need in supplementation of such benefits, as determined by the Secretary, and “(2) the term ‘State’ means the fifty States and the District of Columbia.”.