
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document affected by Public Law 106-554 Section 1(a)(1)[515]]
[CITE: 42USC1382e]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                       CHAPTER 7--SOCIAL SECURITY
 
   SUBCHAPTER XVI--SUPPLEMENTAL SECURITY INCOME FOR AGED, BLIND, AND 
                                DISABLED
 
                    Part A--Determination of Benefits
 
Sec. 1382e. Supplementary assistance by State or subdivision to 
        needy individuals
        

(a) Exclusion of cash payments in determination of income of individuals 
        for purposes of eligibility for benefits; agreement by 
        Commissioner and State for Commissioner to make supplementary 
        payments on behalf of State or subdivision

    Any cash payments which are made by a State (or political 
subdivision thereof) on a regular basis to individuals who are receiving 
benefits under this subchapter or who would but for their income be 
eligible to receive benefits under this subchapter, as assistance based 
on need in supplementation of such benefits (as determined by the 
Commissioner of Social Security), shall be excluded under section 
1382a(b)(6) of this title in determining the income of such individuals 
for purposes of this subchapter and the Commissioner of Social Security 
and such State may enter into an agreement which satisfies subsection 
(b) of this section under which the Commissioner of Social Security 
will, on behalf of such State (or subdivision) make such supplementary 
payments to all such individuals.

(b) Agreement between Commissioner and State; contents

    Any agreement between the Commissioner of Social Security and a 
State entered into under subsection (a) of this section shall provide--
        (1) that such payments will be made (subject to subsection (c) 
    of this section) to all individuals residing in such State (or 
    subdivision) who are receiving benefits under this subchapter, and
        (2) such other rules with respect to eligibility for or amount 
    of the supplementary payments, and such procedural or other general 
    administrative provisions, as the Commissioner of Social Security 
    finds necessary (subject to subsection (c) of this section) to 
    achieve efficient and effective administration of both the program 
    which the Commissioner conducts under this subchapter and the 
    optional State supplementation.

At the option of the State (but subject to paragraph (2) of this 
subsection), the agreement between the Commissioner of Social Security 
and such State entered into under subsection (a) of this section shall 
be modified to provide that the Commissioner of Social Security will 
make supplementary payments, on and after an effective date to be 
specified in the agreement as so modified, to individuals receiving 
benefits determined under section 1382(e)(1)(B) of this title.

(c) Residence requirement by State or subdivision for supplementary 
        payments; disregarding amounts of certain income by State or 
        subdivision in determining eligibility for supplementary 
        payments

    (1) Any State (or political subdivision) making supplementary 
payments described in subsection (a) of this section may at its option 
impose as a condition of eligibility for such payments, and include in 
the State's agreement with the Commissioner of Social Security under 
such subsection, a residence requirement which excludes individuals who 
have resided in the State (or political subdivision) for less than a 
minimum period prior to application for such payments.
    (2) Any State (or political subdivision), in determining the 
eligibility of any individual for supplementary payments described in 
subsection (a) of this section, may disregard amounts of earned and 
unearned income in addition to other amounts which it is required or 
permitted to disregard under this section in determining such 
eligibility, and shall include a provision specifying the amount of any 
such income that will be disregarded, if any.
    (3) Any State (or political subdivision) making supplementary 
payments described in subsection (a) of this section shall have the 
option of making such payments to individuals who receive benefits under 
this subchapter under the provisions of section 1382h of this title, or 
who would be eligible to receive such benefits but for their income.

(d) Payment to Commissioner by State of amount equal to expenditures by 
        Commissioner as supplementary payments; time and manner of 
        payment by State; fees for Federal administration of State 
        supplementary payments

    (1) Any State which has entered into an agreement with the 
Commissioner of Social Security under this section which provides that 
the Commissioner of Social Security will, on behalf of the State (or 
political subdivision), make the supplementary payments to individuals 
who are receiving benefits under this subchapter (or who would but for 
their income be eligible to receive such benefits), shall, in accordance 
with paragraph (5) pay to the Commissioner of Social Security an amount 
equal to the expenditures made by the Commissioner of Social Security as 
such supplementary payments, plus an administration fee assessed in 
accordance with paragraph (2) and any additional services fee charged in 
accordance with paragraph (3).
    (2)(A) The Commissioner of Social Security shall assess each State 
an administration fee in an amount equal to--
        (i) the number of supplementary payments made by the 
    Commissioner of Social Security on behalf of the State under this 
    section for any month in a fiscal year; multiplied by
        (ii) the applicable rate for the fiscal year.

    (B) As used in subparagraph (A), the term ``applicable rate'' 
means--
        (i) for fiscal year 1994, $1.67;
        (ii) for fiscal year 1995, $3.33;
        (iii) for fiscal year 1996, $5.00;
        (iv) for fiscal year 1997, $5.00;
        (v) for fiscal year 1998, $6.20;
        (vi) for fiscal year 1999, $7.60;
        (vii) for fiscal year 2000, $7.80;
        (viii) for fiscal year 2001, $8.10;
        (ix) for fiscal year 2002, $8.50; and
        (x) for fiscal year 2003 and each succeeding fiscal year--
            (I) the applicable rate in the preceding fiscal year, 
        increased by the percentage, if any, by which the Consumer Price 
        Index for the month of June of the calendar year of the increase 
        exceeds the Consumer Price Index for the month of June of the 
        calendar year preceding the calendar year of the increase, and 
        rounded to the nearest whole cent; or
            (II) such different rate as the Commissioner determines is 
        appropriate for the State.

    (C) Upon making a determination under subparagraph (B)(x)(II), the 
Commissioner of Social Security shall promulgate the determination in 
regulations, which may take into account the complexity of administering 
the State's supplementary payment program.
    (D) All fees assessed pursuant to this paragraph shall be 
transferred to the Commissioner of Social Security at the same time that 
amounts for such supplementary payments are required to be so 
transferred.
    (3)(A) The Commissioner of Social Security may charge a State an 
additional services fee if, at the request of the State, the 
Commissioner of Social Security provides additional services beyond the 
level customarily provided, in the administration of State supplementary 
payments pursuant to this section.
    (B) The additional services fee shall be in an amount that the 
Commissioner of Social Security determines is necessary to cover all 
costs (including indirect costs) incurred by the Federal Government in 
furnishing the additional services referred to in subparagraph (A).
    (4)(A) The first $5 of each administration fee assessed pursuant to 
paragraph (2), upon collection, shall be deposited in the general fund 
of the Treasury of the United States as miscellaneous receipts.
    (B) That portion of each administration fee in excess of $5, and 100 
percent of each additional services fee charged pursuant to paragraph 
(3), upon collection for fiscal year 1998 and each subsequent fiscal 
year, shall be credited to a special fund established in the Treasury of 
the United States for State supplementary payment fees. The amounts so 
credited, to the extent and in the amounts provided in advance in 
appropriations Acts, shall be available to defray expenses incurred in 
carrying out this subchapter and related laws.
    (5)(A)(i) Any State which has entered into an agreement with the 
Commissioner of Social Security under this section shall remit the 
payments and fees required under this subsection with respect to monthly 
benefits paid to individuals under this subchapter no later than--
        (I) the business day preceding the date that the Commissioner 
    pays such monthly benefits; or
        (II) with respect to such monthly benefits paid for the month 
    that is the last month of the State's fiscal year, the fifth 
    business day following such date.

    (ii) The Commissioner may charge States a penalty in an amount equal 
to 5 percent of the payment and the fees due if the remittance is 
received after the date required by clause (i).
    (B) The Cash Management Improvement Act of 1990 shall not apply to 
any payments or fees required under this subsection that are paid by a 
State before the date required by subparagraph (A)(i).
    (C) Notwithstanding subparagraph (A)(i), the Commissioner may make 
supplementary payments on behalf of a State with funds appropriated for 
payment of benefits under this subchapter, and subsequently to be 
reimbursed for such payments by the State at such times as the 
Commissioner and State may agree. Such authority may be exercised only 
if extraordinary circumstances affecting a State's ability to make 
payment when required by subparagraph (A)(i) are determined by the 
Commissioner to exist.

(e) State standards; establishment; annual public review; annual 
        certification; payments to individuals

    (1) Each State shall establish or designate one or more State or 
local authorities which shall establish, maintain, and insure the 
enforcement of standards for any category of institutions, foster homes, 
or group living arrangements in which (as determined by the State) a 
significant number of recipients of supplemental security income 
benefits is residing or is likely to reside. Such standards shall be 
appropriate to the needs of such recipients and the character of the 
facilities involved, and shall govern such matters as admission 
policies, safety, sanitation, and protection of civil rights.
    (2) Each State shall annually make available for public review a 
summary of the standards established pursuant to paragraph (1), and 
shall make available to any interested individual a copy of such 
standards, along with the procedures available in the State to insure 
the enforcement of such standards and a list of any waivers of such 
standards and any violations of such standards which have come to the 
attention of the authority responsible for their enforcement.
    (3) Each State shall certify annually to the Commissioner of Social 
Security that it is in compliance with the requirements of this 
subsection.
    (4) Payments made under this subchapter with respect to an 
individual shall be reduced by an amount equal to the amount of any 
supplementary payment (as described in subsection (a) of this section) 
or other payment made by a State (or political subdivision thereof) 
which is made for or on account of any medical or any other type of 
remedical care provided by an institution of the type described in 
paragraph (1) to such individual as a resident or an inpatient of such 
institution if such institution is not approved as meeting the standards 
described in such paragraph by the appropriate State or local 
authorities.

(Aug. 14, 1935, ch. 531, title XVI, Sec. 1616, as added Pub. L. 92-603, 
title III, Sec. 301, Oct. 30, 1972, 86 Stat. 1474; amended Pub. L. 93-
233, Sec. 14, Dec. 31, 1973, 87 Stat. 965; Pub. L. 94-566, title V, 
Sec. 505(c), (d), Oct. 20, 1976, 90 Stat. 2687; Pub. L. 96-265, title 
II, Sec. 201(b)(1), June 9, 1980, 94 Stat. 446; Pub. L. 97-35, title 
XXIII, Sec. 2353(n), Aug. 13, 1981, 95 Stat. 873; Pub. L. 99-272, title 
XII, Sec. 12201(b), Apr. 7, 1986, 100 Stat. 290; Pub. L. 103-66, title 
XIII, Sec. 13731(a)(1), Aug. 10, 1993, 107 Stat. 660; Pub. L. 103-296, 
title I, Sec. 107(a)(4), Aug. 15, 1994, 108 Stat. 1478; Pub. L. 105-33, 
title V, Sec. 5102(a)(1), (b)(1)(A), Aug. 5, 1997, 111 Stat. 595, 596; 
Pub. L. 105-78, title V, Sec. 516(a)(1), (b)(1)(A), Nov. 13, 1997, 111 
Stat. 1517, 1518; Pub. L. 106-170, title IV, Sec. 410(a)(1), Dec. 17, 
1999, 113 Stat. 1916.)

                       References in Text

    The Cash Management Improvement Act of 1990, referred to in subsec. 
(d)(5)(B), is Pub. L. 101-453, Oct. 24, 1990, 104 Stat. 1058, as 
amended. For complete classification of this Act to the Code, see Short 
Title of 1990 Amendment note set out under section 6501 of Title 31, 
Money and Finance, and Tables.


                               Amendments

    1999--Subsec. (d)(1). Pub. L. 106-170, Sec. 410(a)(1)(A), 
substituted ``in accordance with paragraph (5)'' for ``at such times and 
in such installments as may be agreed upon between the Commissioner of 
Social Security and such State''.
    Subsec. (d)(5). Pub. L. 106-170, Sec. 410(a)(1)(B), added par. (5).
    1997--Subsec. (d)(2)(B)(iii) to (x). Pub. L. 105-33, 
Sec. 5102(a)(1)(A), and Pub. L. 105-78, Sec. 516(a)(1)(A), amended 
subpar. (B) identically, striking out ``and'' at end of cl. (iii), 
adding cls. (iv) to (x) and striking out former cl. (iv) which read as 
follows: ``for fiscal year 1997 and each succeeding fiscal year, $5.00, 
or such different rate as the Commissioner of Social Security determines 
is appropriate for the State.''
    Subsec. (d)(2)(C). Pub. L. 105-33, Sec. 5102(a)(1)(B), and Pub. L. 
105-78, Sec. 516(a)(1)(B), amended subpar. (C) identically, substituting 
``subparagraph (B)(x)(II)'' for ``subparagraph (B)(iv)''.
    Subsec. (d)(4). Pub. L. 105-78, Sec. 516(b)(1)(A), amended par. (4) 
generally. Prior to amendment, par. (4) read as follows:
    ``(4)(A) The first $5 of each administration fee assessed pursuant 
to paragraph (2), upon collection, shall be deposited in the general 
fund of the Treasury of the United States as miscellaneous receipts.
    ``(B) That portion of each administration fee in excess of $5, and 
100 percent of each additional services fee charged pursuant to 
paragraph (3), upon collection for fiscal year 1998 and each subsequent 
fiscal year, shall be credited to a special fund established in the 
Treasury of the United States for State supplementary payment fees. The 
amounts so credited, to the extent and in the amounts provided in 
advance in appropriations Acts, shall be available to defray expenses 
incurred in carrying out this subchapter and related laws. The amounts 
so credited shall not be scored as receipts under section 902 of title 
2, and the amounts so credited shall be credited as a discretionary 
offset to discretionary spending to the extent that the amounts so 
credited are made available for expenditure in appropriations Acts.''
    Pub. L. 105-33, Sec. 5102(b)(1)(A), amended par. (4) generally. 
Prior to amendment, par. (4) read as follows: ``All administration fees 
and additional services fees collected pursuant to this subsection shall 
be deposited in the general fund of the Treasury of the United States as 
miscellaneous receipts.''
    1994--Pub. L. 103-296 substituted ``Commissioner of Social 
Security'' for ``Secretary'' wherever appearing and ``the Commissioner 
conducts'' for ``he conducts'' in subsec. (b)(2).
    1993--Subsec. (d). Pub. L. 103-66 designated existing provisions as 
par. (1), inserted before period at end ``, plus an administration fee 
assessed in accordance with paragraph (2) and any additional services 
fee charged in accordance with paragraph (3)'', and added pars. (2) to 
(4).
    1986--Subsec. (b). Pub. L. 99-272 inserted provision at end relating 
to modification of the agreement at the option of the State to provide 
for supplementary payments on and after an effective date specified in 
the agreement.
    1981--Subsec. (e)(2). Pub. L. 97-35 struck out ``, as a part of the 
services program planning procedures established pursuant to section 
1397c of this title'' after ``available for public review''.
    1980--Subsec. (c)(3). Pub. L. 96-265 added par. (3).
    1976--Subsec. (e). Pub. L. 94-566, Sec. 505(d), added subsec. (e), 
effective Oct. 1, 1977. Pub. L. 94-566, Sec. 505(c), repealed former 
subsec. (e) which provided for reduction of supplemental security income 
payments to individuals provided institutional medical or other remedial 
care, State financed under Federal grants for medical assistance, 
effective Oct. 1, 1976. See Effective Date of 1976 Amendment note below.
    1973--Subsec. (e). Pub. L. 93-233 added subsec. (e).


                    Effective Date of 1999 Amendment

    Pub. L. 106-170, title IV, Sec. 410(b), Dec. 17, 1999, 113 Stat. 
1917, provided that: ``The amendments made by subsection (a) [amending 
this section and provisions set out as a note under section 1382 of this 
title] shall apply to payments and fees arising under an agreement 
between a State and the Commissioner of Social Security under section 
1616 of the Social Security Act (42 U.S.C. 1382e) or under section 212 
of Public Law 93-66 (42 U.S.C. 1382 note) with respect to monthly 
benefits paid to individuals under title XVI of the Social Security Act 
[this subchapter] for months after September 2009 (October 2009 in the 
case of a State with a fiscal year that coincides with the Federal 
fiscal year), without regard to whether the agreement has been modified 
to reflect such amendments or the Commissioner has promulgated 
regulations implementing such amendments.''


                    Effective Date of 1994 Amendment

    Amendment by Pub. L. 103-296 effective Mar. 31, 1995, see section 
110(a) of Pub. L. 103-296, set out as a note under section 401 of this 
title.


                    Effective Date of 1993 Amendment

    Section 13731(b) of Pub. L. 103-66 provided that: ``The amendments 
made by this section [amending this section and provisions set out as a 
note under section 1382 of this title] shall apply to supplementary 
payments made pursuant to section 1616(a) of the Social Security Act 
[subsec. (a) of this section] or section 212(a) of Public Law 93-66 [set 
out as a note under section 1382 of this title] for any calendar month 
beginning after September 30, 1993, and to services furnished after such 
date, regardless of whether regulations to implement such amendments 
have been promulgated by such date, or whether any agreement entered 
into under such section 1616(a) or such section 212(a) has been 
modified.''


                    Effective Date of 1981 Amendment

    Amendment by Pub. L. 97-35 effective Oct. 1, 1981, except as 
otherwise explicitly provided, see section 2354 of Pub. L. 97-35, set 
out as an Effective Date note under section 1397 of this title.


                    Effective Date of 1980 Amendment

    Amendment by Pub. L. 96-265 effective Jan. 1, 1981, see section 
201(d) of Pub. L. 96-265, as amended, set out as an Effective Date note 
under section 1382h of this title.


                    Effective Date of 1976 Amendment

    Amendment by section 505(c) of Pub. L. 94-566 effective Oct. 1, 
1976, see section 505(e) of Pub. L. 94-566, set out as a note under 
section 1382 of this title.
    Section 505(d) of Pub. L. 94-566 provided that the amendment made by 
that section is effective Oct. 1, 1977.


                             Effective Date

    Section 301 of Pub. L. 92-603 provided that this section is 
effective Jan. 1, 1974.


             Limitations on Authorization of Appropriations

    Section 516(b)(2) of Pub. L. 105-78 provided that: ``From amounts 
credited pursuant to section 1616(d)(4)(B) of the Social Security Act 
[subsec. (d)(4)(B) of this section] and section 212(b)(3)(D)(ii) of 
Public Law 93-66 [set out as a note under section 1382 of this title] to 
the special fund established in the Treasury of the United States for 
State supplementary payment fees, there is authorized to be appropriated 
an amount not to exceed $35,000,000 for fiscal year 1998, and such sums 
as may be necessary for each fiscal year thereafter, for administrative 
expenses in carrying out the supplemental security income program under 
title XVI of the Social Security Act [this subchapter] and related 
laws.''
    Section 5102(b)(2) of Pub. L. 105-33 provided that: ``From amounts 
credited pursuant to section 1616(d)(4)(B) of the Social Security Act 
[subsec. (d)(4)(B) of this section] and section 212(b)(3)(D)(ii) of 
Public Law 93-66 [set out as a note under section 1382 of this title] to 
the special fund established in the Treasury of the United States for 
State supplementary payment fees, there is authorized to be appropriated 
an amount not to exceed $35,000,000 for fiscal year 1998, and such sums 
as may be necessary for each fiscal year thereafter.''


 Period Within Which California May Make Cash Payments in Lieu of Food 
      Stamps to Recipients of Supplemental Security Income Benefits

    Pub. L. 95-458, Sec. 5(b), Oct. 14, 1978, 92 Stat. 1261, provided 
that: ``No additional cash payment under title XVI of the Social 
Security Act [this subchapter] may be made pursuant to the third 
sentence of section 8(d) of Public Law 93-233 (as added by subsection 
(a) of this section) [amending a note under this section] for any month 
beginning before October 1, 1978, or ending after September 30, 1979.''


 Eligibility of Supplemental Security Income Recipients for Food Stamps

    Section 8(c) of Pub. L. 93-233, as amended by Pub. L. 95-113, title 
XIII, Sec. 1302(a)(3), Sept. 29, 1977, 91 Stat. 979, provided that: 
``For purposes of section 6(g) of the Food Stamp Act of 1977 [section 
2015(g) of Title 7, Agriculture] and subsections (b)(3) [set out as a 
note under section 612c of Title 7] and (f) [set out below] of this 
section, the level of State supplementary payment under section 1616(a) 
[subsec. (a) of this section] shall be found by the Secretary to have 
been specifically increased so as to include the bonus value of food 
stamps (1) only if, prior to October 1, 1973, the State has entered into 
an agreement with the Secretary or taken other positive steps which 
demonstrate its intention to provide supplementary payments under 
section 1616(a) [subsec. (a) of this section] at a level which is at 
least equal to the maximum level which can be determined under section 
401(b)(1) of the Social Security Amendments of 1972 [set out as a note 
under this section] and which is such that the limitation on State 
fiscal liability under section 401 [set out as a note under this 
section] does result in a reduction in the amount which would otherwise 
be payable to the Secretary by the State, and (2) only with respect to 
such months as the State may, at its option, elect.''
    [Section 1302(b) of Pub. L. 95-113 provided that the amendment of 
section 8(c) of Pub. L. 93-233 by section 1302(a)(3) of Pub. L. 95-113 
is effective Oct. 1, 1977.]

    Section 8(d) of Pub. L. 93-233, as added by Pub. L. 94-379, 
Sec. 1(a), Aug. 10, 1976, 90 Stat. 1111, and amended by Pub. L. 95-458, 
Sec. 5(a), Oct. 14, 1978, 92 Stat. 1260; Pub. L. 97-18, Sec. 2, June 30, 
1981, 95 Stat. 102; Pub. L. 97-35, title XXIII, Sec. 2342(a), Aug. 13, 
1981, 95 Stat. 866, provided that: ``Upon the request of a State, the 
Secretary shall find, for purposes of the provisions specified in 
subsection (c) [set out above], that the level of such State's 
supplementary payments of the type described in section 1616(a) of the 
Social Security Act [subsec. (a) of this section] has been specifically 
increased for any month so as to include the bonus value of food stamps 
(and that such State meets the applicable requirements of subsection 
(c)(1)) if--
        ``(1) the Secretary has found (under this subsection or 
    subsection (c), as in effect in December 1980) that such State's 
    supplementary payments in December 1980 were increased to include 
    the bonus value of food stamps; and
        ``(2) such State continues without interruption to meet the 
    requirements of section 1618 of such Act [section 1382g of this 
    title] for each month after the month referred to in paragraph (1) 
    and up to and including the month for which the Secretary is making 
    the determination.''
    [Section 2 of Pub. L. 97-18 provided that the amendment of section 
8(d) of Pub. L. 93-233, set out above, by Pub. L. 97-18 is effective for 
the period July 1, 1981, to Aug. 31, 1981.]
    [Section 2342(b) of Pub. L. 97-35 provided that the amendment of 
section 8(d) of Pub. L. 93-233, set out above, by section 2342(a) of 
Pub. L. 97-35 is effective July 1, 1981.]


           Adjusted Payment Level; Payment Level Modification

    Section 8(e), formerly Sec. 8(d) of Pub. L. 93-233, as renumbered 
Sec. 8(e) by Pub. L. 94-379, Sec. 1(a), Aug. 10, 1976, 90 Stat. 1111, 
provided that: ``Section 401(b)(1) of the Social Security Amendments of 
1972 [set out below] is amended by striking out everything after the 
word `exceed' and inserting in lieu thereof: `a payment level 
modification (as defined in paragraph (2) of this subsection) with 
respect to such plans'.''
    Section 8(f), formerly Sec. 8(e), of Pub. L. 93-233, as amended by 
Pub. L. 93-335, Sec. 1(b), July 8, 1974, 88 Stat. 291; Pub. L. 94-44, 
Sec. 3(b), June 28, 1975, 89 Stat. 235; Pub. L. 94-365, Sec. 2(2), July 
14, 1976, 90 Stat. 990, and renumbered Sec. 8(f) and amended by Pub. L. 
94-379, Sec. 1(a), (b), Aug. 10, 1976, 90 Stat. 1111; Pub. L. 95-59, 
Sec. 3(2), June 30, 1977, 91 Stat. 255; Pub. L. 95-113, title XIII, 
Sec. 1302(a)(4), Sept. 29, 1977, 91 Stat. 979, provided that: ``The 
amendment made by subsection (e) [set out above] shall not be effective 
in any State which provides supplementary payments of the type described 
in section 1616(a) of the Social Security Act [subsec. (a) of this 
section] the level of which has been found by the Secretary to have been 
specifically increased so as to include the bonus value of food 
stamps.''
    [Amendment of section 8(e) [now Sec. 8(f)] of Pub. L. 93-233 by 
section 1(b) of Pub. L. 93-335, effective July 1, 1974, see section 1(c) 
of Pub. L. 93-335, set out as a note below.]
    [Section 1(c) of Pub. L. 93-335, July 8, 1974, 88 Stat. 291, 
provided that amendments by section 1(a), (b) of Pub. L. 93-335 to 
section 8(a)(1), (2), (b)(1)-(3), and (e) of Pub. L. 93-233, Dec. 31, 
1973, 87 Stat. 956, set out as notes under this section and sections 
612c, 1431 and 2012 of Title 7, Agriculture, is effective as of July 1, 
1974.]
    [Section 3 of Pub. L. 95-59 provided that the amendment of section 
8(f) of Pub. L. 93-233, set out above, by section 3(2) of Pub. L. 95-59 
is effective July 1, 1977.]
    [Section 1302(b) of Pub. L. 95-113 provided that the amendment of 
section 8(f) of Pub. L. 93-233, set out above, by section 1302(a)(4) of 
Pub. L. 95-113 is effective Oct. 1, 1977.]


   Commodity Distribution Program: Individual Receiving Supplemental 
   Security Income Benefits as Member of Household for any Purpose of 
                                 Program

    Individual receiving supplemental security income benefits or 
payments as part of benefits or payments described in subsec. (a) of 
this section as member of a household for any purpose of the food 
distribution program, see section 4(c) of Pub. L. 93-86, set out as a 
note under section 612c of Title 7, Agriculture.


                 Application to Northern Mariana Islands

    For applicability of this section to the Northern Mariana Islands, 
see section 502(a)(1) of the Covenant to Establish a Commonwealth of the 
Northern Mariana Islands in Political Union with the United States of 
America and Proc. No. 4534, Oct. 24, 1977, 42 F.R. 6593, set out as 
notes under section 1801 of Title 48, Territories and Insular 
Possessions.


                  Puerto Rico, Guam, and Virgin Islands

    Enactment of provisions of Pub. L. 92-603, eff. Jan. 1, 1974, not 
applicable to Puerto Rico, Guam, and the Virgin Islands, see section 
303(b) of Pub. L. 92-603, set out as a note under section 301 of this 
title.


  Limitation on Fiscal Liability of States for Payment to Secretary of 
     Supplementary Payments Made by Secretary Pursuant to Agreement

    Section 401 of Pub. L. 92-603, as amended by Pub. L. 93-233, 
Sec. 18(h), Dec. 31, 1973, 87 Stat. 969; Pub. L. 94-566, title V, 
Sec. 504(a), Oct. 20, 1976, 90 Stat. 2686; Pub. L. 94-585 Sec. 2(b), 
Oct. 21, 1976, 90 Stat. 2902; Pub. L. 97-248, title I, Sec. 184(a), 
Sept. 3, 1982, 96 Stat. 406, provided that:
    ``(a)(1) The amount payable to the Secretary by a State for any 
fiscal year, other than fiscal year 1974, pursuant to its agreement or 
agreements under section 1616 of the Social Security Act [this section] 
shall not exceed the non-Federal share of expenditures as aid or 
assistance for quarters in the calendar year 1972 under the plans of the 
State approved under titles I, X, XIV, and XVI of the Social Security 
Act [subchapters I, X, XIV, and XVI of this chapter] (as defined in 
subsection (c) of this section), and the amount payable for fiscal year 
1974 pursuant to such agreement or agreements shall not exceed one-half 
of the non-Federal share of such expenditures.
    ``(2) Paragraph (1) of this subsection shall only apply with respect 
to that portion of the supplementary payments made by the Secretary on 
behalf of the State under such agreements in any fiscal year which does 
not exceed in the case of any individual the difference between--
        ``(A) the adjusted payment level under the appropriate approved 
    plan of such State as in effect for January 1972 (as defined in 
    subsection (b) of this section), and
        ``(B) the benefits under title XVI of the Social Security Act 
    [this subchapter] (subject to the second sentence of this 
    paragraph), plus income not excluded under section 1612(b) of such 
    Act [section 1382a(b) of this title] in determining such benefits, 
    paid to such individual in such fiscal year,
and shall not apply with respect to supplementary payments to any 
individual who (i) is not required by section 1616 of such Act [this 
section] to be included in any such agreement administered by the 
Secretary and (ii) would have been ineligible (for reasons other than 
income) for payments under the appropriate approved State plan as in 
effect for January 1972. In determining the difference between the level 
specified in subparagraph (A) and the benefits and income described in 
subparagraph (B) there shall be excluded any part of any such benefit 
which results from (and would not be payable but for) any cost-of-living 
increase in such benefits under section 1617 of such Act [section 1382f 
of this title] (or any general increase enacted by law in the dollar 
amounts referred to in such section) becoming effective after June 30, 
1977.
    ``(b)(1) For purposes of subsection (a), the term `adjusted payment 
level under the appropriate approved plan of a State as in effect for 
January 1972' means the amount of the money payment which an individual 
with no other income would have received under the plan of such State 
approved under title I, X, XIV, or XVI of the Social Security Act 
[subchapters I, X, XIV, or XVI of this chapter], as may be appropriate, 
and in effect for January 1972; except that the State may, at its 
option, increase such payment level with respect to any such plan by an 
amount which does not exceed the sum of--
        ``(A) a payment level modification (as defined in paragraph (2) 
    of this subsection) with respect to such plan, and
        ``(B) the bonus value of food stamps in such State for January 
    1972 (as defined in paragraph (3) of this subsection).
    ``(2) For purposes of paragraph (1), the term `payment level 
modification' with respect to any State plan means that amount by which 
a State which for January 1972 made money payments under such plan to 
individuals with no other income which were less than 100 per centum of 
its standard of need could have increased such money payments without 
increasing (if it reduced its standard of need under such plan so that 
such increased money payments equaled 100 per centum of such standard of 
need) the non-Federal share of expenditures as aid or assistance for 
quarters in calendar year 1972 under the plans of such State approved 
under titles I, X, XIV, and XVI of the Social Security Act [subchapters 
I, X, XIV, and XVI of this chapter].
    ``(3) For purposes of paragraph (1), the term `bonus value of food 
stamps in a State for January 1972' (with respect to an individual) 
means--
        ``(A) the face value of the coupon allotment which would have 
    been provided to such an individual under the Food Stamp Act of 1964 
    [section 2011 et seq. of Title 7, Agriculture] for January 1972, 
    reduced by
        ``(B) the charge which such an individual would have paid for 
    such coupon allotment,
if the income of such individual, for purposes of determining the charge 
it would have paid for its coupon allotment, had been equal to the 
adjusted payment level under the State plan (including any payment level 
modification with respect to the plan adopted pursuant to paragraph (2) 
(but not including any amount under this paragraph)). The total face 
value of food stamps and the cost thereof in January 1972 shall be 
determined in accordance with rules prescribed by the Secretary of 
Agriculture in effect in such month.
    ``(c) For purposes of this section, the term `non-Federal share of 
expenditures as aid or assistance for quarters in the calendar year 1972 
under the plans of a State approved under titles I, X, XIV, and XVI of 
the Social Security Act' [subchapters I, X, XIV, and XVI of this 
chapter] means the difference between--
        ``(1) the total expenditures in such quarters under such plans 
    for aid or assistance (excluding expenditures authorized under 
    section 1119 of such Act [section 1319 of this title] for repairing 
    the home of an individual who was receiving aid or assistance under 
    one of such plans (as such section was in effect prior to the 
    enactment of this Act)), and
        ``(2) the total of the amounts determined under sections 3, 
    1003, 1403, and 1603 of the Social Security Act [sections 303, 1203, 
    1353, and 1383 note of this title], under section 1118 of such Act 
    [section 1318 of this title], and under section 9 of the Act of 
    April 19, 1950 [section 639 of Title 25, Indians], for such State 
    with respect to such expenditures in such quarters.
    ``(d) In addition to the amount which a State must pay to the 
Secretary for the fiscal year 1983 or the fiscal year 1984, as 
determined under subsection (a), the State shall also pay, for the 
fiscal year 1983, 60 percent of the further amount that would be payable 
but for the limit specified in subsection (a), and, for the fiscal year 
1984, 80 percent of such further amount. For each fiscal year 
thereafter, the limit prescribed in subsection (a) shall be inapplicable 
and a State shall pay to the Secretary the full amount of any 
supplementary payments he makes on behalf of such State.''
    [Amendment of section 401(a)(2) of Pub. L. 92-603, set out above, by 
Pub. L. 94-585 inserting parenthetical text in subpar. (B) and enacting 
last sentence, such amendments being identical to amendments by Pub. L. 
94-566 less the words ``and before July 1, 1979'' following ``June 30, 
1977'', effective with respect to benefits payable for months after June 
1977, see section 2(c) of Pub. L. 94-585, set out as a note under 
section 1382g of this title.]
    [Amendment of section 401(a)(2) of Pub. L. 92-603, set out above, by 
Pub. L. 94-566 inserting parenthetical text in subpar. (B) and enacting 
last sentence effective under provisions of Pub. L. 94-566, title V, 
Sec. 504(b), Oct. 20, 1976, 90 Stat. 2686, with respect to benefits 
payable for months after June 1977.]
    [Amendment of section 401 of Pub. L. 92-603, set out above, by 
section 18(h) of Pub. L. 93-233 effective Jan. 1, 1974, see section 
18(z-3)(1) of Pub. L. 93-233.]
    [Section 184(b) of Pub. L. 97-248 provided that: ``The amendment 
made by subsection (a) [amending section 401 of Pub. L. 92-603, set out 
above] shall become effective on the date of the enactment of this Act 
[Sept. 3, 1982].'']


 Transitional Administration of Programs by State Pursuant to Agreement 
                       Between State and Secretary

    Section 402 of Pub. L. 92-603, as amended by Pub. L. 93-233, 
Sec. 18(i), Dec. 31, 1973, 87 Stat. 970, provided that: ``In order for a 
State to be eligible for any payments pursuant to title IV, V, XVI, or 
XIX of the Social Security Act [subchapter IV, V, XVI, or XIX of this 
chapter] with respect to expenditures for the third and fourth quarters 
in the fiscal year ending June 30, 1974, and any quarter in the fiscal 
year ending June 30, 1975, and for the purpose of providing an orderly 
transition from State to Federal administration of the Supplemental 
Security Income Program, such State shall enter into an agreement with 
the Secretary of Health, Education, and Welfare under which the State 
agencies responsible for administering or for supervising the 
administration of the plans approved under titles I, X, XIV, and XVI of 
the Social Security Act [subchapters I, X, XIV, and XVI of this chapter] 
will, on behalf of the Secretary, administer all or such part or parts 
of the program established by section 301 of this Act [enacting this 
subchapter], during such portion of the third and fourth quarters of the 
fiscal year ending June 30, 1974, and any quarter of the fiscal year 
ending June 30, 1975, as may be provided in such agreement.''


  Election of Payments Under Combined State Plan Rather Than Separate 
                                  Plans

    Pub. L. 87-543, Sec. 141(b), July 25, 1962, 76 Stat. 205, provided 
that: ``No payment may be made to a State under title I, X, or XIV of 
the Social Security Act [subchapter I, X, or XIV of this chapter] for 
any period for which such State receives any payments under title XVI of 
such Act or any period thereafter.''


                 Overpayment or Underpayment Adjustments

    Pub. L. 87-543, Sec. 141(f), July 25, 1962, 76 Stat. 205, provided 
that: ``In the case of any State which has a State plan approved under 
title XVI of the Social Security Act [this subchapter], any overpayment 
or underpayment which the Secretary determines was made to such State 
under section 3, 1003, or 1403 of such Act [section 303, 1203, or 1353 
of this title] with respect to a period before the approval of the plan 
under such title XVI, and with respect to which adjustment has not been 
already made under subsection (b) of such section 3, 1003, or 1403 
[section 303(b), 1203, or 1353 of this title], shall, for purposes of 
section 1603(b) of such Act [section 1383(b) of this title prior to its 
omission on Oct. 30, 1972], be considered an overpayment or underpayment 
(as the case may be) made under section 1603 of such Act [section 1383 
of this title as it existed prior to Oct. 30, 1972].''

                  Section Referred to in Other Sections

    This section is referred to in sections 402, 404, 426, 1012, 1310, 
1320a-6, 1320a-8a, 1320b-6, 1320b-17, 1382d, 1382g, 1382i, 1383, 1383c, 
1396a, 1396d, 3002 of this title; title 7 sections 2012, 2015; title 8 
section 1612; title 12 section 1715w; title 26 sections 51, 6103.
