42 U.S.C. § 1203 — Payment to States

Page 2535 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1203 Act Aug. 28, 1950, ch. 809, title III, § 341(e), 64 Stat. 553, provided that the amendment made by that section is effective July 1, 1952. Act Aug. 28, 1950, ch. 809, title III, § 341(f), 64 Stat. 553, provided that: ‘‘The amendments made by subsections (b) and (d) [amending this section] shall take effect Oc- tober 1, 1950; and the amendment made by subsection (a) [amending this section] shall take effect July 1, 1951.’’ EFFECTIVE DATE OF 1939 AMENDMENT Act Aug. 10, 1939, ch. 666, title VII, § 701(b), 53 Stat. 1397, provided that the amendment made by that sec- tion is effective July 1, 1941. TRANSFER OF FUNCTIONS Functions, powers, and duties of Secretary under sub- sec. (a)(5)(A) of this section, insofar as relates to the prescription of personnel standards on a merit basis, transferred to Office of Personnel Management, see sec- tion 4728(a)(3)(D) of this title. PUBLIC ACCESS TO STATE DISBURSEMENT RECORDS Public access to State records of disbursements of funds and payments under this subchapter, see note set out under section 302 of this title. Executive Documents TRANSFER OF FUNCTIONS Functions of Federal Security Administrator trans- ferred to Secretary of Health, Education, and Welfare and agencies of Federal Security Agency transferred to Department of Health, Education, and Welfare by sec- tion 5 of Reorg. Plan No. 1 of 1953, set out as a note under section 3501 of this title. Federal Security Agen- cy and office of Administrator abolished by section 8 of Reorg. Plan No. 1 of 1953. § 1202a. Repealed. Pub. L. 87–543, title I, § 136(b), July 25, 1962, 76 Stat. 197 Section, act Aug. 28, 1950, ch. 809, title III, pt. 4, § 344(a), 64 Stat. 554, provided, in the case of any State without a plan for aid to the blind approved on Jan. 1, 1949, for approval of the plan of such a State con- forming to all requirements except those relating to determination of need and consideration of resources but conditioned payments to the State meeting the ex- cepted requirement. Statutory Notes and Related Subsidiaries EFFECTIVE AND TERMINATION DATES Section 136(b) of Pub. L. 87–543 also repealed section 344(b) of act Aug. 28, 1950, as amended Sept. 1, 1954, ch. 1206, title III, § 302, 68 Stat. 1097; Apr. 25, 1957, Pub. L. 85–26, 71 Stat. 27; Aug. 28, 1958, Pub. L. 85–840, title V, § 509, 72 Stat. 1051; Sept. 13, 1960, Pub. L. 86–778, title VII, § 706, 74 Stat. 995, which provided that this section should become effective Oct. 1, 1950 and terminate June 30, 1964. § 1203. Payment to States (a) Authorization of payments From the sums appropriated therefor, the Sec- retary of the Treasury shall pay to each State which has an approved plan for aid to the blind, for each quarter, beginning with the quarter commencing October 1, 1958— (1) Repealed. Pub. L. 97–35, title XXI, § 2184(c)(2)(A), Aug. 13, 1981, 95 Stat. 817. (2) in the case of Puerto Rico, the Virgin Is- lands, and Guam, an amount equal to one-half of the total of the sums expended during such quarter as aid to the blind under the State plan, not counting so much of any expenditure with respect to any month as exceeds $37.50 multiplied by the total number of recipients of aid to the blind for such month; and (3) in the case of any State, an amount equal to 50 percent of the total amounts expended during such quarter as found necessary by the Secretary for the proper and efficient adminis- tration of the State plan. (b) Computation of amounts The method of computing and paying such amounts shall be as follows: (1) The Secretary of Health and Human Services shall, prior to the beginning of each quarter, estimate the amount to be paid to the State for such quarter under the provisions of subsection (a), such estimate to be based on (A) a report filed by the State containing its estimate of the total sum to be expended in such quarter in accordance with the provisions of such subsection, and stating the amount ap- propriated or made available by the State and its political subdivisions for such expenditures in such quarter, and if such amount is less than the State’s proportionate share of the total sum of such estimated expenditures, the source or sources from which the difference is expected to be derived, (B) records showing the number of blind individuals in the State, and (C) such other investigation as the Secretary may find necessary. (2) The Secretary of Health and Human Services shall then certify to the Secretary of the Treasury the amount so estimated by the Secretary of Health and Human Services, (A) reduced or increased, as the case may be, by any sum by which he finds that his estimate for any prior quarter was greater or less than the amount which should have been paid to the State under subsection (a) for such quar- ter, and (B) reduced by a sum equivalent to the pro rata share to which the United States is equitably entitled, as determined by the Secretary of Health and Human Services, of the net amount recovered during a prior quar- ter by the State or any political subdivision thereof with respect to aid to the blind fur- nished under the State plan; except that such increases or reductions shall not be made to the extent that such sums have been applied to make the amount certified for any prior quarter greater or less than the amount esti- mated by the Secretary of Health and Human Services for such prior quarter: Provided, That any part of the amount recovered from the es- tate of a deceased recipient which is not in ex- cess of the amount expended by the State or any political subdivision thereof for the fu- neral expenses of the deceased shall not be considered as a basis for reduction under clause (B) of this paragraph. (3) The Secretary of the Treasury shall thereupon, through the Fiscal Service of the Treasury Department, and prior to audit or settlement by the Government Accountability Office, pay to the State, at the time or times fixed by the Secretary of Health and Human Services, the amount so certified. (Aug. 14, 1935, ch. 531, title X, § 1003, 49 Stat. 646; Aug. 10, 1939, ch. 666, title VII, § 702, 53 Stat. 1397; Page 2536 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1203 1940 Reorg. Plan No. III, § 1(a)(1), eff. June 30, 1940, 5 F.R. 2107, 54 Stat. 1231; Aug. 10, 1946, ch. 951, title V, § 503, 60 Stat. 992; June 14, 1948, ch. 468, § 3(c), 62 Stat. 439; Aug. 28, 1950, ch. 809, title III, pt. 4, § 342(a), pt. 6, § 361(c), (d), 64 Stat. 553, 558; July 18, 1952, ch. 945, § 8(c), 66 Stat. 779; 1953 Reorg. Plan No. 1, §§ 5, 8, eff. Apr. 11, 1953, 18 F.R. 2053, 67 Stat. 631; Sept. 1, 1954, ch. 1206, title III, § 303(a), 68 Stat. 1097; Aug. 1, 1956, ch. 836, title III, §§ 303, 313(c), 343, 70 Stat. 847, 849, 853; Pub. L. 85–840, title V, § 503, Aug. 28, 1958, 72 Stat. 1049; Pub. L. 87–64, title III, § 303(b), June 30, 1961, 75 Stat. 143; Pub. L. 87–543, title I, §§ 101(a)(3), (b)(3), 132(b), July 25, 1962, 76 Stat. 176, 180, 195; Pub. L. 89–97, title I, § 122, title IV, § 401(d), July 30, 1965, 79 Stat. 353, 415; Pub. L. 90–248, title II, § 212(b), Jan. 2, 1968, 81 Stat. 897; Pub. L. 92–512, title III, § 301(b), (d), Oct. 20, 1972, 86 Stat. 946, 947; Pub. L. 93–647, §§ 3(e)(2), 5(c), Jan. 4, 1975, 88 Stat. 2349, 2350; Pub. L. 96–88, title V, § 509(b), Oct. 17, 1979, 93 Stat. 695; Pub. L. 97–35, title XXI, § 2184(c)(2), title XXIII, § 2353(e), Aug. 13, 1981, 95 Stat. 817, 872; Pub. L. 99–603, title I, § 121(b)(4), Nov. 6, 1986, 100 Stat. 3391; Pub. L. 103–66, title XIII, § 13741(b), Aug. 10, 1993, 107 Stat. 663; Pub. L. 108–271, § 8(b), July 7, 2004, 118 Stat. 814.) REPEAL OF SECTION Pub. L. 92–603, title III, § 303(a), (b), Oct. 30, 1972, 86 Stat. 1484, provided that this section is repealed effective Jan. 1, 1974, except with re- spect to Puerto Rico, Guam, and the Virgin Is- lands. Editorial Notes AMENDMENTS 2004—Subsec. (b)(3). Pub. L. 108–271 substituted ‘‘Gov- ernment Accountability Office’’ for ‘‘General Account- ing Office’’. 1993—Subsec. (a)(3). Pub. L. 103–66 substituted ‘‘50 per- cent of the total amounts expended during such quarter as found necessary by the Secretary for the proper and efficient administration of the State plan.’’ for ‘‘the sum of the following proportions of the total amounts expended during such quarter as found necessary by the Secretary of Health and Human Services for the proper and efficient administration of the State plan— ‘‘(A) 75 per centum of so much of such expenditures as are for the training (including both short- and long-term training at educational institutions through grants to such institutions or by direct fi- nancial assistance to students enrolled in such insti- tutions) of personnel employed or preparing for em- ployment by the State agency or by the local agency administering the plan in the political subdivision; plus ‘‘(B) 100 percent of so much of such expenditures as are for the costs of the implementation and operation of the immigration status verification system de- scribed in section 1320b–7(d) of this title; plus ‘‘(C) one-half of the remainder of such expendi- tures.’’ 1986—Subsec. (a)(3)(B), (C). Pub. L. 99–603 added sub- par. (B) and redesignated former subpar. (B) as (C). 1981—Subsec. (a)(1). Pub. L. 97–35, § 2184(c)(2)(A), struck out par. (1) which provided for computation of amounts payable in the case of any State other than Puerto Rico, the Virgin Islands, and Guam. Subsec. (a)(2). Pub. L. 97–35, § 2184(c)(2)(B), struck out ‘‘(including expenditures for premiums under part B of subchapter XVIII of this chapter for individuals who are recipients of money payments under such plan and other insurance premiums for medical or any other type of remedial care or the cost thereof)’’ after ‘‘under the State plan’’. Subsec. (a)(3). Pub. L. 97–35, § 2353(e)(1)(A), redesig- nated subpar. (A)(iv) as subpar. (A), struck out former subpars. (A)(i), which included services prescribed pur- suant to subsec. (c)(1) of this section and provided to applicants for or recipients of aid to the blind to help them attain self-support, (A)(ii), which included other services, specified by the Secretary as likely to prevent or reduce dependency, and (A)(iii), which included any of the services in subpars. (A)(i) and (ii) deemed appro- priate for individuals likely to become applicants for or recipients of aid to the blind, redesignated former sub- par. (C) as (B), and struck out former subpar. (B), which included one-half of so much of the expenditures, not included in subpar. (A), as are for services for appli- cants for or recipients of aid to the blind or individuals likely to become such applicants or recipients, and sub- pars. (D) and (E) and provision following subpar. (E), which specified what services were includible. Subsec. (a)(4). Pub. L. 97–35, § 2353(e)(1)(B), struck out par. (4) which provided payment, in the case of any State whose plan approved under section 1202 of this title did not meet the requirements of subsec. (c)(1) of this section, of an amount equal to one-half of the total of the sums expended during the quarter as found nec- essary by the Secretary for the proper and efficient ad- ministration of the State plan. Subsec. (c). Pub. L. 97–35, § 2353(e)(2), struck out sub- sec. (c) which prescribed eligibility requirements for payments. 1975—Subsec. (a). Pub. L. 93–647, § 3(e)(2), struck out ‘‘(subject to section 1320b of this title)’’ after ‘‘the Sec- retary of the Treasury shall’’. Subsec. (a)(3)(A)(iv). Pub. L. 93–647, § 5(c), inserted ‘‘(including both short- and long-term training at edu- cational institutions through grants to such institu- tions or by direct financial assistance to students en- rolled in such institutions)’’ after ‘‘training’’. 1972—Subsec. (a). Pub. L. 92–512, § 301(d), substituted ‘‘shall (subject to section 1320b of this title) pay’’ for ‘‘shall pay’’ in provisions preceding par. (1). Subsec. (a)(3)(E). Pub. L. 92–512, § 301(b), substituted ‘‘under conditions which shall be’’ for ‘‘subject to limi- tations’’. 1968—Subsec. (a)(3)(D). Pub. L. 90–248 inserted ‘‘, except to the extent specified by the Secretary’’ after ‘‘shall’’ in introductory text to subpar. (D). 1965—Subsec. (a)(1). Pub. L. 89–97, §§ 122, 401(d), in- serted ‘‘premiums under part B of subchapter XVIII of this chapter for individuals who are recipients of money payments under such plan and other’’ after ‘‘ex- penditures for’’ in parenthetical phrase appearing in so much of par. (1) as precedes cl. (A); and substituted ‘‘31/ 37’’ and ‘‘$37’’ for ‘‘29/35’’ and ‘‘$35’’ in subpar. (A) and ‘‘$75’’ for ‘‘$70’’ in subpar. (B), respectively. Subsec. (a)(2). Pub. L. 89–97, § 122, inserted ‘‘premiums under part B of subchapter XVIII of this chapter for in- dividuals who are recipients of money payments under such plan and other’’ after ‘‘expenditures for’’ in par- enthetical phrase. 1962—Subsec. (a)(1). Pub. L. 87–543, § 132(b), sub- stituted ‘‘29⁄35’’ and ‘‘$35’’ for ‘‘four-fifths’’ and ‘‘$31’’, re- spectively, in subpar. (A) and ‘‘$70’’ for ‘‘$66’’ in subpar. (B). Subsec. (a)(2). Pub. L. 87–543, § 132(b), substituted ‘‘$37.50’’ for ‘‘$35.50’’. Subsec. (a)(3). Pub. L. 87–543, § 101(a)(3), (b)(3)(A), in- serted in opening provisions ‘‘whose State plan ap- proved under section 1202 of this title meets the re- quirements of subsection (c)(1) of this section’’ after ‘‘any State’’, and substituted provisions which in- creased the Federal share of expenses of administration of State public assistance plans by providing quarterly payments of the sum of 75 per centum of the quarterly expenses for certain prescribed services to help attain and retain capability for self-support or self-care, serv- ices likely to prevent or reduce dependency, and serv- ices appropriate for individuals who were or are likely to become applicants for or recipients of aid to the blind and request such services, and training of State or local public assistance personnel administering such Page 2537 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1203 plans and one-half of other administrative expenses for other services, permitted State health or vocational re- habilitation or other appropriate State agencies to fur- nish such services, except vocational rehabilitation services, and required the determination of the portion of expenses covered by the 75 and 50 per centum provi- sions in accordance with methods and procedures per- mitted by the Secretary for former provisions requiring quarterly payments of one-half of quarterly expenses of administration of State plans, including staff service of State or local public assistance agencies to applicants for and recipients of aid to the blind to help them at- tain self-support or self-care. Subsec. (a)(4). Pub. L. 87–543, § 101(b)(3)(B), added par. (4). Subsec. (c). Pub. L. 87–543, § 101(b)(3)(C), added subsec. (c). 1961—Subsec. (a). Pub. L. 87–64 substituted ‘‘$31’’ for ‘‘$30’’ and ‘‘$66’’ for ‘‘$65’’ in cl. (1), and ‘‘$35.50’’ for ‘‘$35’’ in cl. (2). 1958—Subsec. (a). Pub. L. 85–840 increased the pay- ments to the States to four-fifths of the first $30 of the average monthly payment per recipient including as- sistance in the form of money payments and in the form of medical or any other type of remedial care, plus the Federal percentage of the amount by which the expenditures exceed the maximum which may be counted under cl. (A), but excluding that part of the av- erage monthly payment per recipient in excess of $65, increased the average monthly payment to Puerto Rico and the Virgin Islands from $30 to $35, excluded Guam from the provisions which authorize an average month- ly payment of $65 and included Guam within the provi- sions which authorize an average monthly payment of $35, and permitted the counting of individuals with re- spect to whom expenditures were made as old-age as- sistance in the form of medical or any other type of re- medial care in determining the total number of recipi- ents. 1956—Subsec. (a). Act Aug. 1, 1956, § 303, substituted ‘‘during such quarter as aid to the blind in the form of money payments under the State plan’’ for ‘‘during such quarter as aid to the blind under the State plan’’ in cls. (1) and (2), ‘‘who received aid to the blind in the form of money payments for such month’’ for ‘‘who re- ceived aid to the blind for such month’’ in par. (a) of cl. (1), and inserted cl. (4). Act Aug. 1, 1956, § 313(c), struck out ‘‘, which shall be used exclusively as aid to the blind,’’ after ‘‘the Virgin Islands, an amount’’ in cls. (1) and (2), and substituted ‘‘including services which are provided by the staff of the State agency (or of the local agency administering the State plan in the political subdivision) to appli- cants for and recipients of aid to the blind to help them attain self-support or self-care’’ for ‘‘which amount shall be used for paying the costs of administering the State plan or for aid to the blind, or both, and for no other purpose’’ in cl. (3). Act Aug. 1, 1956, § 343, substituted ‘‘October 1, 1956’’ for ‘‘October 1, 1952’’, struck out ‘‘, which shall be used exclusively as aid to the blind,’’ after ‘‘the Virgin Is- lands, an amount’’ in cls. (1) and (2), substituted ‘‘$60’’ for ‘‘$55,’’ ‘‘the product of $30’’ for ‘‘the product of $25’’, ‘‘Secretary of Health, Education, and Welfare’’ for ‘‘Secretary’’, and ‘‘including services which are pro- vided by the staff of the State agency (or of the local agency administering the State plan in the political subdivision) to applicants for and recipients of aid to the blind to help them attain self-support or self-care’’ for ‘‘which amount shall be used for paying the costs of administering the State plan or for aid to the blind, or both, and for no other purpose’’. 1954—Subsec. (b)(1). Act Sept. 1, 1954, substituted ‘‘the State’s proportionate share’’ for ‘‘one-half’’. 1952—Subsec. (a). Act July 18, 1952, increased the Fed- eral share of the State’s average monthly payment to four-fifths of the first $25 plus one-half of the remainder within individual maximums of $55, and changed for- mulas for computing the Federal share of public assist- ance for Puerto Rico and the Virgin Islands. 1950—Subsec. (a). Act Aug. 28, 1950, § 342(a), provided a new method of computation of the Federal portion of aid to the blind. Subsec. (b). Act Aug. 28, 1950, § 361(c), (d), substituted ‘‘Administrator’’ for ‘‘Board’’. 1948—Subsec. (a). Act June 14, 1948, substituted ‘‘$50’’ for ‘‘$45’’ and ‘‘$20’’ for ‘‘$15’’. 1946—Subsec. (a). Act Aug. 10, 1946, § 503(a), tempo- rarily increased the maximum monthly State expendi- ture to which the Federal government will contribute from $40 to $45 and increased the Federal contribution for aid to the blind from one-half the State’s expendi- ture to two-thirds such expenditure up to $15 monthly per individual plus one-half the State’s expenditure over $15. See Effective and Termination Date of 1946 Amendment note below. Subsec. (b). Act Aug. 10, 1946, § 503(b), temporarily substituted ‘‘the State’s proportionate share’’ for ‘‘one- half’’ in par. (1). See Effective and Termination Date of 1946 Amendment note below. 1939—Act Aug. 10. 1939, amended section generally. Statutory Notes and Related Subsidiaries CHANGE OF NAME ‘‘Secretary of Health and Human Services’’ sub- stituted for ‘‘Secretary of Health, Education, and Wel- fare’’ in subsec. (b) pursuant to section 509(b) of Pub. L. 96–88, which is classified to section 3508(b) of Title 20, Education. EFFECTIVE DATE OF 1993 AMENDMENT Amendment by Pub. L. 103–66 effective with respect to calendar quarters beginning on or after Apr. 1, 1994, with special rule for States whose legislature meets bi- ennially, and does not have regular session scheduled in calendar year 1994, see section 13741(c) of Pub. L. 103–66, set out as a note under section 303 of this title. EFFECTIVE DATE OF 1986 AMENDMENT Amendment by Pub. L. 99–603 effective Oct. 1, 1987, see section 121(c)(2) of Pub. L. 99–603, set out as a note under section 502 of this title. EFFECTIVE DATE OF 1981 AMENDMENT Amendment by section 2353(e) of Pub. L. 97–35 effec- tive Oct. 1, 1981, except as otherwise explicitly pro- vided, see section 2354 of Pub. L. 97–35, set out as an Ef- fective Date note under section 1397 of this title. EFFECTIVE DATE OF 1975 AMENDMENT Amendment by section 3(e)(2) of Pub. L. 93–647 effec- tive with respect to payments under sections 603 and 803 of this title for quarters commencing after Sept. 30, 1975, see section 7(b) of Pub. L. 93–647, set out as a note under section 303 of this title. Amendment by section 5(c) of Pub. L. 93–647 effective with respect to payments for quarters commencing after Sept. 30, 1975, see section 7(a) of Pub. L. 93–647, set out as a note under section 303 of this title. EFFECTIVE DATE OF 1972 AMENDMENT Amendment by section 301(b) of Pub. L. 92–512 effec- tive Jan. 1, 1973, and amendment by section 301(d) of Pub. L. 92–512 effective July 1, 1972, see section 301(e) of Pub. L. 92–512, set out as a note under section 303 of this title. EFFECTIVE DATE OF 1968 AMENDMENT Amendment by Pub. L. 90–248 effective Jan. 1, 1968, see section 212(e) of Pub. L. 90–248, set out as a note under section 303 of this title. EFFECTIVE DATE OF 1965 AMENDMENT Amendment by section 401(d) of Pub. L. 89–97 applica- ble in the case of expenditures made after December 31, 1965, under a State plan approved under subchapter I, IV, X, XIV, or XVI of this chapter, see section 401(f) of Page 2538 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1204 Pub. L. 89–97, set out as a note under section 303 of this title. EFFECTIVE DATE OF 1962 AMENDMENT Amendment by section 101(a)(3) of Pub. L. 87–543 ap- plicable in the case of expenditures, under a State plan approved under subchapter I, IV, X, or XIV of this chap- ter, as the case may be made after Aug. 31, 1962, and amendment by section 101(b)(3) of Pub. L. 87–543 appli- cable in the case of expenditures, under a State plan approved under subchapter I, IV, X, or XIV of this chap- ter, as the case may be, made after June 30, 1963, see section 202(f) of Pub. L. 87–543, set out as a note under section 303 of this title. Amendment by section 132(b) of Pub. L. 87–543 appli- cable in the case of expenditures, under a State plan approved under subchapter I, IV, X, or XIV of this chap- ter, as the case may be, made after Sept. 30, 1962, see section 202(d) of Pub. L. 87–543, set out as a note under section 303 of this title. EFFECTIVE DATE OF 1961 AMENDMENT Amendment by Pub. L. 87–64 applicable only in the case of expenditures made after Sept. 30, 1961, and be- fore July 1, 1962, under a State plan approved under subchapters I, X, or XIV of this chapter, see section 303(e) of Pub. L. 87–64, set out as a note under section 303 of this title. EFFECTIVE DATE OF 1958 AMENDMENT For effective date of amendment by Pub. L. 85–840, see section 512 of Pub. L. 85–840, set out as a note under section 303 of this title. EFFECTIVE AND TERMINATION DATE OF 1956 AMENDMENT Amendment by section 303 of act Aug. 1, 1956, effec- tive July 1, 1957, see section 305 of act Aug. 1, 1956, set out as a note under section 303 of this title. Amendment by section 343 of act Aug. 1, 1956, effec- tive only for period beginning Oct. 1, 1956, and ending with close of June 30, 1959, see section 345 of act Aug. 1, 1956, set out as a note under section 303 of this title. EFFECTIVE AND TERMINATION DATE OF 1952 AMENDMENT Amendment by act July 18, 1952, effective for the pe- riod beginning Oct. 1, 1952, and ending Sept. 30, 1956, see section 8(e) of act July 18, 1952, set out as a note under section 303 of this title. EFFECTIVE DATE OF 1950 AMENDMENT Act Aug. 28, 1950, ch. 809, title III, § 342(b), 64 Stat. 554, provided that: ‘‘The amendment made by subsection (a) [amending this section] shall take effect October 1, 1950.’’ EFFECTIVE DATE OF 1948 AMENDMENT Amendment by act June 14, 1948, effective Oct. 1, 1948, see section 3(d) of act June 14, 1948, set out as a note under section 303 of this title. EFFECTIVE AND TERMINATION DATE OF 1946 AMENDMENT Amendment by section 503 of act Aug. 10, 1946, effec- tive only for period beginning Oct. 1, 1946, and ending with close of June 30, 1950, see section 504 of act Aug. 10, 1946, as amended, set out as a note under section 303 of this title. EFFECTIVE DATE OF 1939 AMENDMENT Act Aug. 10, 1939, ch. 666, title VII, § 702, 53 Stat. 1397, provided that the amendment made by that section is effective Jan. 1, 1940. NONDUPLICATION OF PAYMENTS TO STATES, PROHIBITION OF PAYMENTS AFTER DECEMBER 31, 1969 Prohibition of payments under this subchapter to States with respect to aid or assistance in form of med- ical or other type of remedial care for any period for which States received payments under subchapter XIX of this chapter or for any period after Dec. 31, 1969, see section 121(b) of Pub. L. 89–97, set out as a note under section 1396b of this title. ELECTION OF PAYMENTS UNDER COMBINED STATE PLAN RATHER THAN SEPARATE PLANS Payments to States under combined State plan under subchapter XVI of this chapter as precluding payment under State plan conforming to this subchapter, see Pub. L. 87–543, title I, § 141(b), July 25, 1962, 76 Stat. 205. Executive Documents TRANSFER OF FUNCTIONS Functions of Federal Security Administrator trans- ferred to Secretary of Health, Education, and Welfare and all agencies of Federal Security Agency transferred to Department of Health, Education, and Welfare by section 5 of Reorg. Plan No. 1 of 1953, set out as a note under section 3501 of this title. Federal Security Agen- cy and office of Administrator abolished by section 8 of Reorg. Plan No. 1 of 1953. ‘‘Fiscal Service’’ substituted for ‘‘Division of Dis- bursement’’ in subsec. (b)(3), on authority of section 1(a)(1) of Reorg. Plan No. III of 1940, eff. June 30, 1940, 5 F.R. 2107, 54 Stat. 1231, set out in the Appendix to Title 5, Government Organization and Employees, which consolidated such division into the Fiscal Serv- ice of the Treasury Department. See section 306 of Title 31, Money and Finance. § 1204. Operation of State plans In the case of any State plan for aid to the blind which has been approved by the Secretary of Health and Human Services, if the Secretary, after reasonable notice and opportunity for hearing to the State agency administering or supervising the administration of such plan, finds— (1) that the plan has been so changed as to impose any residence or citizenship require- ment prohibited by section 1202(b) of this title, or that in the administration of the plan any such prohibited requirement is imposed, with the knowledge of such State agency, in a sub- stantial number of cases; or (2) that in the administration of the plan there is a failure to comply substantially with any provision required by section 1202(a) of this title to be included in the plan; the Secretary shall notify such State agency that further payments will not be made to the State (or, in his discretion, that payments will be limited to categories under or parts of the State plan not affected by such failure) until the Secretary is satisfied that such prohibited re- quirement is no longer so imposed, and that there is no longer any such failure to comply. Until he is so satisfied he shall make no further payments to such State (or shall limit payments to categories under or parts of the State plan not affected by such failure). (Aug. 14, 1935, ch. 531, title X, § 1004, 49 Stat. 646; Aug. 28, 1950, ch. 809, title III, pt. 6, § 361(c), (d), 64 Stat. 558; 1953 Reorg. Plan No. 1, §§ 5, 8, eff. Apr. 11, 1953, 18 F.R. 2053, 67 Stat. 631; Pub. L. 90–248, title II, § 245, Jan. 2, 1968, 81 Stat. 918; Pub. L. 96–88, title V, § 509(b), Oct. 17, 1979, 93 Stat. 695.) REPEAL OF SECTION Pub. L. 92–603, title III, § 303(a), (b), Oct. 30, 1972, 86 Stat. 1484, provided that this section is