Unemployment compensation amendments of 1976


Material Information

Unemployment compensation amendments of 1976 description of the provisions of H.R. 10210 (Public Law 94-566)
Physical Description:
iii, 10 p. : ; 24 cm.
United States -- Congress. -- Senate. -- Committee on Finance
United States -- Congress. -- House. -- Committee on Ways and Means
U.S. Govt. Print. Off.
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Publication Date:


Subjects / Keywords:
Insurance, Unemployment -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


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CIS Microfiche Accession Numbers: CIS 76 S362-44
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At head of title: 94th Congress, 2d session. Committee print.
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prepared by the staffs of the Committee on Finance of the U.S. Senate and the Committee on Ways and Means of the U.S. House of Representatives.

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University of Florida
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Table of Contents
    Front Cover
        Page i
        Page ii
    Table of Contents
        Page iii
        Page iv
    Unemployment compensation provisions
        Page 1
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
        Page 7
        Page 8
    Supplemental security income provisions
        Page 9
        Page 10
    Back Cover
        Page 11
        Page 12
Full Text

94th Congress } COMMITTEE PRINT
2d Session I

Unemployment Compensation Amendments

of 1976

Description of the Provisions of
(Public Law 94-566

Prepared by the Staffs of the











Pi epared for the use of the Senate Committee on Finae
House Committee on Ways and MNe,ii,



H.R. 10210




RL'SSE LI. B. LONG, I.,uisi:tna. Chairman

KIt:l. \X I" TI.XI.M.\,MKI-:. C,..,r1i
VANC[: HARTKE. Indiaina
At-RAII1AM RIBICOFF, Connecticut
IIHARRY F. BYRD, JL., Virginia
(;\YLIl{D NELSON, Wisconsin
FI.iYl) K. JIASN.I:L.L. ('Colorado

CARL T. CI'HTIS. Npl-raska
PAI'L J. FANNIN. Arizona
WILLIAM V. ROTH, JR., Delaware
BILL BROCK. Tennessee

.MICHAEL Si~3' N, SlaFf Dir ctor
DO.\ALI V. M.' 1OltrE E.\I, ('h itf ]in orityN Ci,1, iim.cl

AL ULL.MAN, Ormi'n. Chairman

WT.iBUR D. MILLS. Arkansas
JAMI.:s A. B,'UKE. Massachusetts
I'1IIL M LANDRU'M. G.orgla
JAMEiS C. CORMAN. California
WILLIAM J. GREEN. Pennsylvania
SAM M. GI]I',ONS. Florida
JOE D. WAGGONNER, Ja., Louisiana
JOSI:I'H IE. KARTI. Mirnneota
OTIS G. PIKE, New York
J. J. I'CKI.E. Texas
\\I LI. .I M I. C OTTER,. Connecticut
PORTNEY H. (.PETE:) STARK, California
JAMEs R. JONES. Oklaho'lma
ABNER J. MIKVA. Illinois
JOSEiI'H L. FISHER, Virginia
HAROLD E. FORD, Tennessee

JOHN J. DUNCAN, Tennessee
JAMES G. MARTIN, North Carolina
L.. A. (SKIP) BAPALIS. Florida

JOHN M. MARTIN, Jr., Chief Counsel
J. P. BAKER. Assi.tanft 'Chief CuiuiHcI
J'JjiN K. MEAGHER, Minority Counsel



Provision 8(*
I. Unemployment compensation provisions:
A. Coverage provisions:
Farmworkers ------------------------------- 1
State and local government employees-----
periods --------------------------------
Payment to school employees during vacattion
Extended benefit costs-------------------
'Elementary and secondary nonprofit schools----
Domestic workers ------------------
Transitional benefits ------------
Inclusion of Virgin Islands -----------
B. Financing provisions:
Increase in Federal unemployment tax rate--- -
Increase in taxable earnings-----------------
Timing of loans to States -----------
Costs of benefits to former Federal employees --...-
C. Extended benefit triggers:
Change in national trigger---------------- 3
C1:lInge in Stft,.' trigger-------------------- -
D. Provisions related to benefit eli'ibjlijiy
Disqualification for p1eg-iney-------------
Finality of Federal agency findings----
Profe-si,,fmal athletes -----------
Illegal aliens-- -------------
Disqualification for receipt of pension ------ -
E. National Commission on Uinemployment (Compei.nsation:
Descriiption and purpo.-e of the Commission-----
Ageiida items for the Cimmis-;ion------------ 4
F. Other provisions:
Extension of SUA program ----------
Unenip)loyment coiip(;i.-ation and AFDC-UF___
Information furnished to AFDC and child sup-
port agencies -----------------
II. Supplemental security income provisions:
Services for disabled children----------_----------- 5
Criteria for determining child disability-------------- 5
Instituti(i :iliz;ition of a spouse--- ------------
Protection of medicaid eligibility ----------
Change in 5S! savings clau'-----------------
SSI payments to persons in institutions --------

Ii! tion fn
action pj1!i.e



11 (b)

11 (b)






Digitized by the Internet Archive
in 2013


OF H.R. 10210

I. Unemployment Compensation Provisions
Farmworkers.-In the past, farm employment has been exempt
from the Federal unemployment tax. As a result. protection of farm-
workers under unemployment compensation programs has been a
matter of State option. H.R. 10210 makes the Federal unemploy-
ment tax applicable to farm employment if the farm operator, in
either the current year or the preceding year. has a payroll of at least
$20.000 in any calendar quarter or has 10 or more employees in 20)
weeks during the year. This extension of the Federal unemployment
payroll tax has the effect of bringing farm emplovilyment meeting
these criteria within the coverage of all State unemployment eoii)p)en-
sation programs. Coverage is effective as of January 1978.
In the case of farmworkers who are hired by a farm labor con-
tractor ("crew leader") rather than by the farm operator, the bill
provides that the crew leader will be considered the employer and
thus be responsible for paying the unemployment tax and submitting
the required reports if he provides. the service of mechanized equip-
ment-crop dusting, mecllanized harvesting, et cetera-or if he is
registered under the Farm Labor Contractor Registration Act. Since
that act now requires registration for most crew leaders-amn excep-
tion is made for those operating both within a 25-mile radius of their
homes and for no more than 13 weeks per year-H.R. 10210 generally
makes the crew leader the employer. The bill provides, however, that
the farm operator be considered the employer in cae-s where the crew
leader is in fact the farmers own empIloyee and in case- where the
farmer and the crew leader have a written agreement under which
the farm operator will act as employer for unemployment comlpez-;1-
tion purposes.
The bill exempts from unemployment compensation cover:,ge aliens
who are brought into the United States on a temporary basis to work
during peak agricultural crop seasons under sections 101 (a) (15) (II)
and 214(c) of the Immigration and Nationality Act. This exelIption
from coverage expires January 1. 1980.
Under the provisions of II.R. 10210. an estimated 459.(00) farm
jobs and 17,400 farm employers will be s.ubjeot to the Federal
unemployment tax. This repr-.snts 40 percent of all farm employment
and 2 percent of all f;>rm operators.


S/1i'c fil Ij, i( t/.t'1 ne',t o/1 c l/O. 'p?.-S-.,t;te' anad local govern-
VIerit cn ploNy111,,1t I- exempt frm tin. l"1 ,'eral unel 1 ploymient payroll
t;X. Ifowe-er, under legislation enacted in 1970, the States were
It'liiiI' t to provide, u1ie,1ol ,llei iiiei:lHco fur employees of State
oei,,tedt ho.-pit la :Itld institute ion.- of hli.her e(lucation. In addition,
::b1,"1 one-hialf of the St:ites have .Ine beyond tlhe Federal require-
ii-nts :alrd p',vidle niadlatory coverage for State employees and
1'11ui it loal :1ernhme i(,nts to opt for coverage.
Hinder H.R. 10210, State and local government employment will
continue to be exempt from the Federal unemployment payroll tax.
"tat,- will be requireL however, to provide State coverage for such
emiplOymient ,s :i a mliiti ,11 of conti"ii".,1 ],:iti2i:,ition in the Fed'ral-
Si.at, !iilnipl,,.iwiiit compel.,i: 10io11 prograiii. (F1ailure to participate
would. in effect., raise the Federal unemployioint tax on employers in
t i, State from 0.7 to 3.4 percent and would depri\e the State of Fed-
v.!; 1 tI'il to meet :(ldiiiitr;itive expenses and part of the benefit
,-.s for benefits pliid after the 26th week of unemployment.)
All St:ite and local government employees will be covered except
elected officials., members of the legislature or judiciary, persons in
)policyiiaking or advisory positions which are designated as major,
nontnuired position. oras ordinarily requiring less than 8 hours work
per week, members of the National Guard, prisoners, and persons
lred for temnpor iry jobs in emergency situations. With the above
-x i.'ptoiol-. ill employment after December 31, 1977 will be covered.
Under the bill, the State law will have to permit the employing entity
to determine whether to pay for its coverage through contributions
1i1tiivalent to the State payroll tax or by reimbursing the fund retro-
actively for benefits paid to its former employees.
Tile pi visions of H.R. 10210 extend coverage under the unemploy-
ment compensation program to approximately 588.000 State em-
ploe, .r who are not now covered and to about 7.7 million employees
of local ,-overnments.
Pi/nm, r;t to school employees durnq -.vatYotion pewiods.-H.R. 10210
require, that benefits be denied during vacation periods between
academic terms (or years) to professional school employees who have
a contract for, or reasonable assurance of, reemnployment during the
up.oming, termn (or year). The bill also permits States to deny benefits
during, vacation periods on the same basis to nonprofessional school
E.fto,,,!ed benefit costs.-At present, the Federal extended benefit
account in the unemployment trust fund pays one-half of the costs of
benefits under the Federal-State Extended Unemployment Compen-
-ationi Act. That act provides in times of high unemployment for up
to 13 week] of added benefits after a worker exhausts his regular
benefit eligibility. This 50 percent Federal funding is provided from
the Frleral unemployment payroll tax. H.R. 10210 includes a provi-
sion which eliminates this 50 percent Federal funding for the cost of
extended benefits for State and local government employees, whose
employment is exempt from the Federal tax. (The Federal accounts

will continue to pay the administrative co-Is attributable to coverage
of employees of State and local governments.)
Elementary and s,8 'ondary nonprofit schools.-Prior to the 1970
amendments, nonprofit organizations, which are exempt from taxa-
tion under the Internal Revenue (Code, were covered as emnployers for
unemployment compensation purposes only at tlie option of the Staltes.
The 1970 amendments required States to provide coveraie for non-
profit employers who have at least four employee:- in at least 20 week-
of the year. However, an exception in the law allowed States to
exclude from covera-ge nonprofit elementary and secondary - hiools.
H.LR. 10210 repeals this exclusionil, thus requiring coverage for such
schools on the same basis as it has been required for other nonprofit
Domestic workers.-DonIestic employment in private houtseholds
has been exempt from the Federal unemployment payroll tax and
such employment has been covered under State unemployment coin-
pensation programs in only three States. H.R. 10210 makes such
employment subject to the unemployment tax. effective January 1!9)
(and, therefore, effectively requires its coverage under State pro-
grams) in the case of any employer who pays domestic wages of
$1,000 or more in any calendar quarter of the current or preceding
year. It is estimated that this will result in coverage for some 128,000
domestic jobs.
Transitional benefits.-The new coverage provided under H.R.
10210 for agricultural workers, domestic employees, employees of
State and local governments and of certain nonprofit schools is effec-
tive as of 1978. As of January 1, 1978, newly covered workers will
begin accumulating wage credits necessary to qualify for unemploy-
ment compensation should they become unemployed. In most States
these workers will not have accumulated enough wage credits to
qualify for benefits until the last quarter of 1978. The transition provi-
sions in H.R. 10210 provide that, if a State agrees to pay benefits to
newly covered workers as of January 1, 1978, benefits paid through
June 30, 1978, based on wage credits earned prior to that date, will be
reimbursed from Federal general revenues. States will also be reim-
bursed after June 30, 1978 in cas-es where they pay benefits based on
newly covered wages earned prior to January 1, 1978.
Inclusion of Virgiqh, slands.-Under prior Federal law, the Virgin
Islands was excluded from the Federal-State system of unemplovynent
insurance. The Virgin Islands has for several l years had a simTilar
unemployment inSlrance pro:,nm l however, and the territorial gov-
ernment has formally requested that the Virgin Islands be included
in the Federal-State system.
The inclusion of the Virgin ii Islands in the Federal-State unemploy-
ment system is provided for in IH.R. 10210. This extends to that juris-
diction the Federal unemployment tax and thus increases slightly the
revenues to the Federal accounts in the unemployment trust fund. At
the same time, H.R. 10210 provides new or modified funding for the
Virgin Islands programs as shown in the table below:


Funding under H.R.
Expenditure type Current funding 10210

Regular benefits .......... Territorial tax.... Territorial tax.
Administrative costs:
Compensation ..... do........... Federal trust fund
system, accounts.
Employment service... Federal general Federal trust fund
funds, accounts and
general funds.
Extended benefits......... Not in effect......50 percent terri-
torial tax, 50
percent Federal
trust fund
Loans..................... Federal general Federal trust fund
funds, accounts.

Jnrrei.r i77 Federnal gnrmployip"nt tax rate.-HT.R. 10210 increases
the gross Federal unemployment tax rate from 3.2 percent to 3.4 per-
cent while leaving the tax credit at 2.7 percent. This adds 0.2 percent
to the net Federal tax rate raising it from the present level of 0.5 to
a new level of 0.7 percent. This increased tax rate will take effect in
January 1977 and will continue in effect until all general revenue
advances to the extended benefit account in the unemployment trust
fund have been repaid, after which the existing 0.5 percent net tax
rate will affain become applicable. The increase in the net Federal
tax rate will affect only the amounts collected by the Federal trust
fund accounts.
I.-rea.se in to.vablx earnings.-H.R. 10210 also increases from '.4.200
to $6.000 the amount of annual earnincrs subject to taxation. This
increase is effective January 1978 and affects both Federal and State
taxes. Since States set their own tax rates and may adjust their tax
rates to take account of the new tax base, the exact impact of the
increase on State revenues will depend upon subsequent action by
the States.
Timi;ng of loais to Saftx.-When States find it necessary to borrow
from the Federal accounts. in the unemployment trust fund to meet
their unemployment benefit obligations, prior law required that the
funds borrowed for any month be applied for in the preceding month.
H.R. 10210 includes a provision permitting States to apply for
loans covering a 3-month period. Under this provision, States will be
able to make a single application covering the 3-month period, but the
advances will continue to be paid out to the States on a month-by-
month basis.
Costs of benefits to former Federal employees.-When unemploy-
ment benefits are paid by a State to a former member of the armed


services or Federal employee, the costs of the benefits attributable to
Federal employment are funded from Federal general revenues and
the costs, if any, resulting from non-Federal employment are paid
from State funds. At present, the amount of Federal reimbursement is
determined by computing the amount of benefits actually paid to an
individual over and above the compensation which would have been
paid if his Federal employment had not been ii.-ed in computing his
benefits. H.R. 10210 provides instead that the Federal and State por-
tions of the cost of benefits will be based on the relative Federal and
non-Federal wages of the individual during the base period on which
his unemployment compensation is computed. Thus, if an individual
had $4,000 of wages in his base period and $1,000 of these wages came
from a Federal agency employer, 25 percent of his unemployment bene-
fits would be paid for from Federal general revenues.
The Federal-State Extended Unemployment Compensation Act of
1970 provides for the payment of additional weeks of benefits to in-
dividuals who exhaust their benefit entitlement under the regular State
programs. The additional entitlement provides the same weekly benefit
amount as the regular entitlement and continues for half as long as
the regular entitlement. Thus, an individual entitled to the maximum
duration of 26 weeks of regular benefits could receive up to 13 addi-
tional weeks of extended benefits. Half the funding of the extended
benefits comes from State unemployment taxes and half comes from
the Federal tax.
Change in national trigger.-Benefits under the extended benefit
program are payable only in periods of high unemployment. Perma-
nent law makes the program effective in all States when the national
insured unemployment rate on a seasonally adjusted basis reaches 4.5
percent for 3 consecutive months, and the program continues in effect
until that rate declines below 4.5 percent for 3 consecutive months. (A
temporary provision which expires December 31, 1976 permits States
to participate in the extended benefit program when the national
trigger rate is 4 percent rather than 4.5 percent.) H.R. 10210
modifies the permanent law by providing that the program will be in
effect in all States when the seasonally adjusted 4.5 percent national
insured unemployment rate for a given week and the 12 previous weeks
(rather than for 3 consecutive months) average, 4.5 percent or more
and will cease to be in effect when that rate averages les- than 4.5 pr-
Change in State trggq(,r.-From December 1971 to November
1974, the national insured unemployment rate was below the perma-
nent law 4.5 percent rate which triggers the extended benefit programin
into operation in all States. When the national trig-ier iN "off," Statet
participate in the program only if the State trigger requirements are
met. Under permanent law, the extended unemployment conpen-,ntion
program becomes effective in a State when two requirements are met.
The rate of insured unemployment in the State (not seasonally ad-
justed) must reach a level of 4 percent or more averaged over a
13-week period and the rate for that 13-week period must b,1 at least
20 percent higher than the average of the State inuiired unemployment

raie in tlhe same 13-week period of tihe preceding 2 years. II.R. 10210
retains the permanent law provisions with respect to State triggers.
However, the bill permits States to waive the "20 percent higher" re-
quirement whenever the rate of insured unemployment in the State is
at lca-t 5 percent. This provision is effective after March 1977 when
the existing waiver of the "20 percent higher" provision expires.
Dis qualification for pregnancy.-In order to qualify for unemploy-
ment compensation benefits, a worker must be abl)le to work. be seeking
work. and be available for work. In a number of States. an individual
who,:e unemployment is related to pregnancy has been barred from
receiving any une employment benefits. In 1975 the Supreme Court
found a provision of this type in the Utah unemployment compensa-
tion statutee to be unconstitutional. H.R. 10210 will prohibit States from
continuing to enforce any provision which denies unemployment coin-
pceisation L'enefits solely on the basi- of pregnancy (or recencv of
pregnancy). Pregnant individuals will, however, continue to be re-
quired to meet generally applicable criteria of seeking work, avail-
ability for work. and ability to work.
Finality of Federal agency findings.-State unemployment compen-
sation agencies are required to grant an impartial hearing to persons
whose claims for unemployment benefits are denied. In any case where
all or part of the employment on which benefits are to be based was
with a Federal agency, however, the findings of that agency have not
been subject to review by a State agency hearing officer insofar as they
concern: the fact of Federal employment, the period of Federal service
and amount of Federal wages, or the reasons for terminating Federal
H.R. 10210 allows these issues to be decided by the State agency
hearing officer.
Pro f.e. f,.',al at/hl ,'f..-H.R. 10210 prohibits the payment of bene-
fit. to a professional athlete during periods between two successive
sports ceazons if the athlete had been professionally participating in
suCih sports during the previous season and there is reasonable assur-
ance thlat he will participate in such sports during the following season.
The provision is intended to deny benefit to professional athletes in the
off season.
I1e7ga7 ablens.-H.R. 10210 prohibits payment of benefits to an
alien unless he has been lawfully admitted to the United States for per-
rnmanent residence. Any data or evidence of citizenship or permanent
residence will have to be uniformly required of all applicants for un-
employment compensation. A determination of whether an individual
is an illegal alien muzt be based on a preponderance of evidence.
DPLqua)flcation for receipt of pen-e. on.-Under H.R. 10210 the
States will be required, 9 after September 30. 1979. to reduce unem-
ployment compensation benefits by the amount of any public or
private pension includingz social security retirement benefits and
railroad retirement annuities) based on the claimant's previous

Description and purpose of the Commssiaon.--I.R. 10210 --t )b-
lishes a National Commission on Unemployment Compensation for
the purpose of undertaking a comprehensive examination of the pri.t-
ent unemployment compensation system and developing appropriate
recommendations for further changes. The Commission is to be conm-
prised of three members appointed by the President Pro T(ijlpore of
the Senate, three members by the Speaker of the House of Repi.-,nta-
tives, and seven by the President. Selection of members of the Com-
mission will be aimed at assuring balanced representation of interested
groups including at least one representative of labor, industry, the
Federal Governmnent, State government, local government and small
The Commission will be authorized to appoint such staff as it
requires and to contract for necessary consultant services. The final
report of the Commission has to be sent to the President and to
Congress by January 1, 1979, and the Commission terminates 90 days
after the report is submitted. An interim report will be required by
March 31, 1978.
Agenda items for the Comvns.?'.on.-H.R. 10210 specifies that the
Commission's study shall include, without being limited to, the
following items:
(1) Examination of the adequacy, and economic and administrative
impacts, of the changes made by H.R. 10210 in coverage, benefit provi-
sions, and financing;
(2) Identification of appropriate purposes, objectives, and future
directions for unemployment compensation programs, including rail-
road unemployment insurance;
(3) Examination of issues and alternatives concerning the relation-
ship of unemployment compensation to the economy, with special
attention to long-range funding requirements and desirable methods
of program financing:
(4) Examination of eligibility requirements, disqualification provi-
sions, and factors to consider in determining appropriate benefit
amounts and duration:
(5) Examination of (A) the problems of claimant fraud ind abuse
in the unemployment compensation programs: (B) the adequacy of
present statutory requirements and administrative procedirr' de-
signed to protect the programs against such fraud and abuse: and
(C) problems of claimants in obtaining prompt proce.zing and pay-
ment of their claims for benefits and any appropriate mcasur, to
relieve such problems:
(6) Examination of the relationship between unemployment coln-
pensation programs and manpower training r and employment
(7) Examination of the appropriate role of uineminplovnyment -om-
pensation in income maintenance and its relationship to other social
insurance and income maintenance programs:
(8) Conduct of such surveys, hearings, research, and othlier :1tiv-
ities as it deems necessary to enable it to formulate appropriate

re'ommendations, and to obtain relevant information, attitudes,
opinions, and recommendations from individuals and organizations
representing employers. employees, and the general public;
(9) Review of the present method of collecting and analyzing
present and prospective national and local employment and unenm-
ployvment information and statistics;
(10) Identification of any weaknesses in such method and any
problem which results from the operation of such method;
(11) Formulation of any necessary or appropriate new techniques
for the collection and analysis of such information and statistics; and
(12) Examination of the feasibility and advisability of developing
or not developing Federal minimum ie'iineflt standards for State
unemployment insurance prograins.
In addition, the conference report on H.R. 10210 directs the coin-
mission to include in its studies an examination of the payment of
unemployment compensation to retirees and the denial of comnpen-
sation to employees of educational institutions between terms.
Extension of SUA progronm.-H.R. 10210 extends the Special Un-
employment Assistance (SUA) program through December 1977
(claims filed by then could continue in payment status through June
30, 1978). It also modifies the program so that SUA benefits would
be based on the same period of work used for regular unemployment
compensation. Nonprofessional employees of schools would not be
eligible for SUA payments during vacation periods when they have
reasonable assurance of employment for the postvacation school term.
Unemployment eompen.at;on and AFDc-UF.---H.R. 10210 re-
quires unemployed fathers who apply for aid to families with depend-
ent children-unemployed fathers (AFDC-UF) to collect any uin-
employment compensation to which they are entitled before they
can receive any AFDC-UF benefits for which they might qualify.
In those cases where an individual collecting unemployment compen-
sation meets the State AFDC-UF eligibility requirements, the State
is required to supplement unemployment compensation benefits up to
AFDC-UF benefit levels otherwise payable. The bill azo provides, in
connection with the requirements for registering for employment
under the Work Incentive program and the une ployment compensa-
tion program, that the Secretariev of Labor and of Health, Education,
and Welfare are to enter into agreements with each State which is will-
ing and able to do so. These agreements will provide for the simplifica-
tion of the procedures involved in such regi-tration and, where possi-
ble, for a single registration to satisfy the requirements of both pro-
In formation f ,,-t'sh1 ed to AFD ,, aid rh.i!d supportt ag nwies.-State
employment offices will be required to furnish specified information to
welfare agencies for the purpose of administering the AFDC or child
support programs. The State epi)loylnent service will be reinil)bursed
by the welfare or child support agencies for the cost. of supplying
this information.

II. Supplemental Security Income Provisions
Services for disabled childr,,.-I.R. 10210 requireZ the Social
Security Administration to refer blind and di-;ibled children under
age 16 who are receiving SSI benefits to the crippled children's or
other appropriate State agency. This agency will be r'-ponsible for
administering a State plan which must include provision for couii-.l-
ing of disabled children and their families; the e-tablishmlent of
individual service plans for children under 16: minonitoring to :i-.-iive
adherence to the plans; and provision of services to children under
age 7, and to children who have never been in school and require
preparation to take advantage of public educ':tional services.
A total of $30 million is made available for the operation of State
plans for each of three fiscal years, beginning with fi:-:cl year 1977:
there are no non-Federal matching requirements. The amount will
be allocated to the States on the basis of the number of children agce
6 and under in each State. Up to 10 percent of the State's funds may
be used for counseling, referral and monitoring provided under the
State plan for children up to age 16. The remainder of the funding
is available for services to disabled children under age 7 and tho-e
who have never been in school. The bill requires that the funds
authorized under the provision may not be used to replace State
and local funds now being used for these purposes. The funds iiiy
be used in the case of any program or service only to pay that portion
of the cost which is related to the additional requirements of serving
disabled chill'c-in over and above what woulld be required to serve
nondisabled children.
Criteria for determining child disability.-H.R. 10210 requires the
Secretary of IHEW to publish criteria to be used in deteriniin7
disability for children under age 18 within 120 days after enactment
of the provision.
JImtfff/toa7ff ion of a spoi.r,.-H.R. 10210 provides that if a
spou-f is institutionalized the two persons involved will b)e treated as
individuals rather than as a couple for purpo_-,- of applying their
separate incomes in computing the SSI benefit amount.
Protc,/;on of edicaWd eS'/a;h;thl.--ILR. 10210 provides that no
recipient of SSI will lose eligibility for medicaid solely as the result of
the operation of the cost-of-livina- benefit incre title TT of the Social Security Act. It protects the ind(lividual only
ao'ainst the loss of medicaid. and is effective only in tlie case of future
social -.'curity benefit increases.
hange in SSI .sv'irqs clame.-Under HT.R. 10210. payments to
States under the 1972 savings clause provision will not 1to reduced to
reflect Federal SST benefit increases in 1977 and 1978. This will en-
nble the three "hold harmless" States (Hawaii. Mfasachusetts. and
Wisconsin) to pass through the Federal inerean,.s in tlio-( years with-
out added State costs. No other States are affected.
,S1SI paiIment to person. ?n In. t'tio)/. .-H.R. 10210 exclude pu)b-
licly operated community residences which serve no inore than 16

r '-i A!'1is from 1 I.) ein-r (ld(, ripu.1 li,, i nl-titutions in which individuals
arF, ineligible for S.SI bvhiI'it.-. It iaIso )pr1)vides that Federal SSI
p)ayme ets nmay not ble reduced in thle ,a-e( of aO-ista. l.ilSed oil I"T.l
which i- )proide)l by States ;id localities. It reI)eal section 1616(e)
of the Social Seiuiiy Act whith provides 1lhat Federal SSI pav-
JHE1t- 1),. redieed in the .ase of payments made 1bv States or localities
for ii.,dic.al or any other tvpe of in'iedlial ,cari' provided by an inistittu-
tion. It adds a re, ]iren'ent, effective ()October 1, 1977, that eah State
establish or d(c-ir1nate State or local authorities to establish, maintain
ad is,1re thi, vnforr.ment of standards for categories of institutions
in which a silynifica"t nuni er of SSI recipients are residing. The
standard have to be appropriate to tlie iieeds of the recipients and
tlie character of tlie facilities involved. They are to govern admission
policies, safety, sanitation and protection of civil rights. H.R. 10210
also requires each State to make available for public review, as a part
of its social services program planning procedures under title XX.
a summary of the standards and the procedures available in the State
to insure their enforcement. There must be made available a list of
any waivers of standards -which have been made and any violations
of standards which have come to the attention of the enforcement
authority. Federal payments are to be reduced dollar for dollar by the
amount of any State supplementation in the case of persons who are
in group facilities which are not approved under State standards as
determined by the appropriate State or local authorities.


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