Indianapolis Times, Volume 47, Number 310, Indianapolis, Marion County, 6 March 1936 — Page 12

PAGE 12

Summaries of Texts of Proposed Social Security Laws

Following is a digest of the public welfare bill now' under consideration by the Indiana Legislature, meeting in special session.

Section 1 deals with definitions. Section 2 creates a State Department of Public Welfare to be administered by a State Board of Public Welfare. Section 3 provides that the board shall consist of five members to be appointed by the Governor, not more than three to oe members of the same political party. Members shall have a recognized interest in and knowledge of the problems of public welfare. 'P' :ir terms shall be staggered, one to be appointed for one year; one for two years; one for three years, and two for four years. Thereafter, all appointments are to be for four years. Compensation shall be S3OO a year with an allowance for traveling and other necessary expenses. The board shall elect a president and vice president and meet at least once each month, annually in October. Section 4 defines the board’s duties. With the advice and consent of the Governor it shall appoint an administrator to serve at its pleasure. The administrator, whose salary shall be fixed by the Governor at not to exceed S6OOO annually, shall be the secretary and executive officer of the board under bond. In addition, the board shall name investigators or boards of review to hold hearings for any applicants or recipients who deem themselves aggrieved; adopt rules and regulations for the government of the department; classify the service and fix standards and salary schedules lor the personnel.

DUTIES ARE OUTLINED

Duties of the state department are defined in Section 5. The department shall: Administer or supervise old-age assistance, aid to dependent children and assistance to the blind and otherwise handicapped. Supervise operation of the state’s charitable, penal, reformatory and correctional institutions and the School for the Blind, the School for the Deaf and the Board of Industrial Aid for the Blind; the operation of all agencies and institutions caring for dependent or mentally or physically handicapped or aged adults, including the approval of the incorporation of charitable agencies. Administer or supervise all child welfare services, the licensing and supervision of private and local public child-caring agencies and institutions; the care of dependent and neglected children in foster family homes, or in institutions; exercise supervision and control of delinquent children and probation when assigned by a court having juvenile jurisdiction; supervise operation of all state institutions for children, James Whitcomb Riley Hospital excepted. The department also is given supervision over all benevolent institutions supported in whole or in part by public funds and on noninstitutional care connected with such institutions.

INVOKE MERIT SYSTEM

The department is to supervise all correctional activities, including the granting of paroles for adults, the probation services of such paroled adults and is charged with supervising inspection of local jails and with recommendations to the State Clemency Commission. In addition the department is to provide services to the county governments, assisting the organization of their public welfare departments and must co-operate with the Social Security Board set up under the Federal law and with other Federal and state agencies in all pertinent matters. The department is given broad powers in establishing the merit system for employes and for determining technical and professional qualifications of applicants for positions. The department is empowered to classify patients and inmates of state institutions and to transfer patients or inmates to other institutions at its discretion, although no patient or inmate of a benevolent institution shall be transferred to a penal institution except on a court committment. Section 6 deals with state financial aid to the county units. In this connection the department must require that each county shall bear a portion of the expense under penalty of terminating state aid if the requirements are not met. The duties of the administrator are defined in Section 7. He shall prepare a biennial budget, taking into account grants to be received from the Federal government and submit an annual report to the Governor, not later than the first of September, outlining the board's activities for the year. He is empowered to appoint assistants and directors of divisions created under Section 8 with approval of the board. Directors shall appoint their assistants with approval of the administrator and the board.

DEPUTIES TO ASSIST

The Attorney General is authorized at the request of the board to designate deputies to assist in the administration of the act. their salaries to be a charge against the board during their period of service for the board. Section 8 creates the following divisions within the department: Public Assistance, Children's, Medical Care and Correction. The board may create other divisions, if necessary. Subject to approval by the board, the administrator is authorized to allocate duties to the divisions. Under Section 9. dealing with duties of the divisions, the public assistance division shall have charge of old-age assistance, assistance to dependent children and to the blind, and supervision of the Board of Industrial Aid for the Blind. The children s division shall have charge of all child welfare services, including supervision of the Soldiers' and Sailors’ Children's Home, School for the Deaf, School fir the Blind. Boys’ School and Girla’ School. The division of medical care ahal have charge of the supervision of benevolent institutions

and non-institutional care, the operation of the state hospitals and other institutions and the approval of the incorporation of charitable agencies.

DIRECTORS ARE BONDED

The division of corrections is to have charge of all correctional activities except those dealing with children. Each director and his assistant is to be bonded. Section 10 authorizes the board to grant paroles on recommendation of the board of trustees of the various penal and correctional institutions. Parole agents shall be appointed by the board. Section 11 transfers the rights, powers and duties of the Board of State Charities and the Department of Public Welfare to the new welfare department. Likewise the rights, powers and duties of the Governor, the board of trustees and the superintendents or wardens of corrective or benevolent institutions in respect to transfer of wards or inmates are transferred to the welfare department.

BENEFITS ARE RELATED

Section 12 authorizes the Governor to transfer to the new welfare department any agency of the state under provisions of the consolidation act of 1933. Under Section 13 the department is authorized to lease or rent such quarters as may be necessary. Section 14 accepts the provisions and benefits of the Federal Social Security Act. Section 15 designates the State Treasurer custofeian of all moneys received by the state from the Federal government for the purposes of the act. County welfare taxes will be collected by the state and county welfare departments and paid over to the treasurer who shall be the department’s disbursing officer. Section 16 authorizes the treasurer to set up the necessary funds and accounts. Separate accounts are to be kept for old-age assistance, dependent children, crippled children, child welfare and needy blind. Section 17 designates the State Department as the agency to cooperate with the Federal government in the administration of certain provisions of the Social Security Act. County and district departments are set up under Section 18. Each county shall constitute a welfare district with the exception of the following 26 counties, which are grouped into 13 districts:

DISTRICT BOARD NAMED

Franklin and Union; LaGrange and Steuben; Jasper and Newton; Benton and Warren; Jennings and Scott; Pulaski and Starke; Ohio and Dearborn; Monroe and Owen; Crawford and Harrison; Jefferson and Switzerland; Brown and Johnson; Martin and Daviess; Blackford and Jay. Each district shall be administered by a district Board of Public Welfare. Counties, other than those enumerated, have the right to combine into welfare districts with the approval of the state board. County and district boards are defined in Section 19. A county board shall have five members appointed by the Circuit Judge. At least two shall be women, not more than three of the same political faith, and they shall have been residents for at least two years prior to the date of the appointment and have a recognized interest and knowledge of welfare problems. Tenure is the same as for the state board. District boards also shall have five members of the same qualificaitons. Three are to be named by the Circuit Judge in the county having the largest population; two by the Circuit Judge of lesser population. In the larger county not more than two shall be of the same political party; at least one shall be a woman. In the smaller both shall not be members of the same party and one must be a woman. Compensation ranges from SIOO yearly in counties or districts of less than 50,000 population to S3OO annually in districts or counties of more than 100.000. Duties of the county and district board are defined in Section 20. The boards shall name district directors on a merit basis. Directors shall be executive officers of the board and act as secretary.

ELIGIBILITY SET OUT

To be eligible a director must have lived in the district at least two years prior to appointment. Compensation of directors ranges from SI2OO yearly in counties or district of less than 22,000 to S4OOO yearly in counties of more than 217,000 population. Directors also are entitled to necessary expenses and must furnish bonds for faithful discharge of duties. Comnensation of the board, director and his assistants is a charge against the district, The county department under Section 21 is charged with the administration of assistance to dependent children, old-age assistance, assistance to persons otherwise handicapped, care and treatment of dependent, neglected, delinquent and handicapped children and such other duties as may be delegated by the state board. * The director and his assistants are to be agents of the courts in carrying out provisions of the act. Under Section 22 the rights, powers and duties of the board of children’s guardians are transferred to the various county departments and the Board of Children's Guardians is abolished. Section 23 authorizes the county departments to prosecute and defend suits. The county director with the approval of the county board is authorized under Section 24 to appoint assistants and fix their compensation Under Section 25 no claims for an allowance, award or assistance ap-

Highlights of Proposed Social Security Laws SOME of the outstanding provisions of the proposed public welfare bill before the Indiana legislature, are: Financial assistance for needy aged, blind persons, dependent and crippled children Creates state and county departments of public welfare to be administered by state and county welfare boards. State, county and district boards consist of five members. In the county and district boards, two must be women, no more than three on any board shall be of the same political faith, and all must have a practieal knowledge of public welfare problems. State Board members shall be named by the Governor; local boards by the Circuit Court judges. Besides administering financial assistance to the aged, blind, needy children and ihose otherwise handicapped, the state board would supervise operation of the state’s charitable, penal, reformatory and correctional institutions. Supervision over granting paroles and the probation service also would be included. Abolishes Boards of Children’s Guardians and transfers their rights, powers and duties to the county departments. The Board of State Charities and the Department of Public Welfare are abolished and their powers transferred to the state department. a a a a a a HIGHLIGHTS of the unemployment insurance bill follow: The “merit plan’’ becomes effective Jan. 1, 1940, with employer contributions to be determined by the condition of reserve account balances of employers. Employe contributions, 50 per cent of the amount required of employers subject to a limitation of 1 per cent maximum, are to start in 1937. Total unemployment benefits may equal half of the eligible’s full-time wage, subject to a sls maximum and a $5 minimum. Benefits may not be denied, however, if the position offered is vacant, due directly to a labor dispute ... if the hours, wages and conditions of the work offered are substantially less favorable to the individual than those prevailing for similar work in the community. The employe is protected in the bill from being forced by his employer to share part of the latter’s burden. a a a a a a OUTSTANDING points of the public health measure: The state is to receive slj}l,ooo in Federal funds. The State Health Division is to administrate the act that is to improve and extend health services throughout the state. The Health Board may.enter into co-operative agreements with municipal districts.

proved by the county board shall be subject to allowance by County Commissioners with the exception of claims for administrative expense which shall be subject to the allowance of the commissioners in the same manner as other county claims. No custodial relationship or guardianship authorized by law or by an abolished board shall be disturbed under provisions of the new law except otherwise ordered by the court, according to provisions of Section 26.

BONDS PREMIUMS PAID

Section 27 provides that any right, power or duty imposed by this or any other act on the state or county, Department of Public Welfare shall be possessed and exercised by the state or county board. Premiums on bonds required by the act from officers or other persons shall be paid by the state or county under Section 28. Section 29 holds officers, employes and board members strictly accountable solely to the state for faithful performance of their duties. Section 30 authorizes any officer or employe of the state or county department, on approval of the respective boards, to take oaths or affirmations as required for the purposes of the act and Section 31 prohibits nepotism. Persons eligible for old-age assistance are defined in Section 32 as any needy citizen of the United States 70 (65 on July 1, 1938) who has resided in the state for at least five years during the nine years immediately preceding his application, the last year of which was continuous, has not within five years immediately prior to application made an assignment or transfer of property for the of making him eligible for benefits or is not. because of physical or mental condition in need of institutional care, and has not sufficient income or other resources to provide a reasonable subsistence compatible with decency and health.

PROVIDE MEDICAL AID

Inftiates of private or public homes are eligible if they cease to be inmates. Persons receiving old-age assistance are not entitled to other forms of relief except temporary medical and surgical assistance, and necessary hospital expenses under Section 33Section 34 limits maximum monthly assistance to an individual to S3O. Under Section 35 applications for assistance shall be made to county or district departments in writing. Section 36 provides for thorough investigation by the county department. Section 37 imposes authority on the county departments to grant monthly old-age assistance notifying the applicant and state department in writing. Thereafter, unless modified, the award is binding upon the county. Under Section 38 assistance granted the applicant shall constitute a lien against the estate of the recipient for any amounts recoverable. The county department may designate a responsible person to handle installments due a recipient who may be deemed incapable, as provided in Section 39.

$75 FUNERAL EXPENSES

Section 40 authorizes a sum not to exceed $75 for funeral expenses of any recipient. No sum paid for assistance is assign. hie nor subject to legal process under Section 41 and under Section 42 any person who feels himself aggrieved is given the right to appeal j to the state department. Section 43 provides for periodic reconsideration and changes in the amount of assistance and under Sec- ; tion 44 county departments are required to obtain agreements from applicants to reimburse the state and county if ultimately able to do so. The applicant shall assign as collateral security such part of his personal property as the county department shall require. Section 45 authorizes transfer of an applicant's property, if any, to the county department, such property to be managed by the department for the benefit of the recipient. Sectiorts 46. 47 and 48 deal with recovery of property or funds either during the lifetime or after death of a recipient. Review by the state department is provided.

THE INDIANAPOLIS TIMES

Section 49 deals with the status of a person moving from one county to another with approval of the state department.

AID FOR NEEDY BLIND

Under Section 50 the state shall reimburse each district to the extent of 60 per cent of the amount expended for assistance to aged persons. Forty per cent of sums received from the Federal government is to be paid to the counties. Section 51 is concerned with reimbursement procedure. Reimbursements to the county districts shall be made monthly. Provision is made for refunds to the United States of amounts recovered from estates and otherwise. Sections 52 to 70 inclusive deal with administration of the act in reference to the needy blind. Assistance shall not exceed S3O a month, exclusive of funeral expenses, temporary medical and surgical assistance and hospital expenses, to any blind person who meets the residence and economic requirements, which are the same as for those of the aged needy. Males of 21 and females of 18 are eligible if their eyesight * was lost while a resident of the state. Soliciting of alms is forbidden. Examination must be by an ophthalmologist or eye specialist who shall be a physician licensed to practice medicine who has been designated by the state department to make such examinations. Fees shall be fixed by the state department. Provision also is made for recovery during the lifetime or after death of a recipient if the applicant or his estate becomes possessed of any property or if it develops that a recipient was possessed of property or income in excess of the amount reported under the actApplication for blind assistance shall be to the county departments. Methods of providing for assistance to dependent children are provided in Sections 71 to 82 inclusive. A dependent child is entitled to assistance if a resident of the state for at least one year preceding application, or was born in the state within a year of the application, and whose mother has resided in the state for a period of at least one year immediately preceding the birth of such child. The child must be living in a suitable family home conforming to the standards of care and health fixed by state laws and the rules of the department.

$1 A MONTH LIMIT

Assistance shall not exceed $lB a month and if there are other dependent children not to exceed sl2 a month for each additional child. Application must be made to county departments on the verified affidavit of parent or guardian. Appeal is provided for as well as periodic reconsideration and changes in the amount of assistance. The state shall reimburse each county 60 per cent of amounts expended for assistance to dependent children and in addition shall distribute proportionately 40 per cent of Federal moneys received for this purpose. Sections 83 to 85 deal with child welfare services. The state department is to co-op-erate with the county departments and the children’s bureau of the United States Department of Labor in establishing, extending and strengthening, especially in rural areas, public welfare services for the protection and care of homeless, dependent and neglected children and children in danger of becoming delinquent. The department is authorized to develop state services for the encouragement and assistance of adequate methods of community child welfare organizations in areas predominantly rural and in other areas of special need; also to extend and develop child welfare agencies in such areas. Expenses shall be paid by the county subject to allocations from the state based upon need out of Federal funds.

HELP CRIPPLED CHILDREN

Crippled children are provided for in Sections 86 to 89, inclusive. It is the duty of the state department to co-operate with the State Health Board, the county departments and the children's bureau of the United States Department of Labor in ex-

! tending and improving, especially in rural areas and in localities where acute economic distress has been suffered, services for locating crippled children and for providing medical, surgical, corrective and other services and care and facilities for diagnosis, hospitalization and aftercare for children who are crippled or who are suffering from conditions which lead to crippling. The State Health Board shall appoint a representative, acceptable to the state welfare department, who shall assist in carrying out the provisions of the law' in respect to crippled children. Such board representative shall be compensated by the welfare department. • Crippled children in need of hospitalization may be placed in any public or private hospital or in James Whitcomb Riley Hospital. While such child is in Riley Hospital he shall be exclusively under the jurisdiction of Riley Hospital authorities until released. All expenses shall be paid by the county subject to allocation by the state funds of Federal aid on the basis of ascertained need. Sections 90 to 97 deal with general provisions. Section 94 restates the liability of persons to support his parent or parents, child or spouse. No person by reason of his age who is not receiving old-age assistance shall be deprived of receiving other public relief or care.

FINANCIAL SCHEDULE SET

Financial matters are dealt with in Sections 98 to 112, inclusive. A welfare fund is created in each county. This shall consist of the county’s share to be raised by general tax and by grants in aid from the state and Federal government. Budgets shall be compiled in July by the county director, approved by the county and state departments and levied by the County Councils. The County Council is authorized to make additional appropriations in the event the fund is exhausted. County Commissioners may borrow sums, if necessary. In the event the County Council or County Tax Board makes reductions in the welfare budget which, in the opinion of the state or county welfare departments would jeopardize proper enforcement of the act, the state or county departments may appeal to the State Tax Board. In its discretion the County Council may authorize issuance of serial bonds to finance operations of the county department in any year in which it appears appropriations are inadequate. The rest of the bill, Sections 113 to 130, inclusive, deals with miscellaneous provisions. County Auditors are directed to keep records and make reports relating to the county welfare funds.

PENALTIES ARE PROVIDED

Section 116 provides penalties foxfraudulent acts committed by recipients or others. Violation is a misdemeanor punishable up to SSOO or imprisonment for not more than three months, or both. There is appropriated a sufficient sum for the unexpired portion of the biennial period ending June 30. 1937 out of money in the general fund not otherwise appropriated to defray any expenses incurred in discharging the duties and functions of the State Welfare Department and for the purpose of securing such Federal funds as may be available for any welfare services enumerated in the act. Money received from the Federal government is made available and all money appropriated for use of the county agencies is made available to the county departments. Persons now receiving old-age or other types of assistance continue to receive such assistance without further action on their part. Declaring an emergency exists, the act provides it shall be effective immediately upon passage. Short title of the act is defined in Section 127 as “The Welfare Act of 1936.’

Job Insurance Bill Outlined

Following is a partial digest of provisions of the unemployment insurance bill; Section 1 of the bill is devoted to a declaration of public policy setting forth the following principles: “Economic insecurity due to unemployment is a serious menace to the health, morale and welfare of the people of this staate. Protection

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against this great hazard of our economic life can be provided in some measure by encouraging employers to provide more stable employment and by the systematic accumulation of funds during periods of employment to provide benefits for periods of unemployment. The enactment of this measure to encourage stabilization of employment and provide for the payment of benefits to persons unemployed through no fault of their own and to provide for the creation of a state essential to the public welfare. Including definitions. Section 2 sets out exemptions to be considered under the general term of “employment”

FINANCIAL PLAN OUTLINED

Provision is made for establishment of free public employment offices. A “pooled account” is defined as an account in which funds are mingled for benefit of persons not eligible for “reserve account” payments which, in turn, are defined as accounts maintained separately by employers for his owrn employes. “Balance in reserve accounts” is defined as excess of all contributions received from employer and employes plus amounts transferred from the “pooled account” when the “Reserve account may be overdrawn. Wages are held to be any renumeration other than cash paid to an individual by an employe in any calendar year. Sections 2 and 3 are principally definitions. Section 4 sets forth the following contribution requirements: Employers become taxable April 1, 1936, and must pay their contributions to the State Treasurer monthly except that the state director may permit established employers of financial responsibility to make payment less frequently, in no case less often than annually. Employer contributions may not be deducted from wages of individuals in his employ. Employers pay nine-tenths of 1 per cent of their total pay roll during 1936 after April 1. The levy increases to 1.8 per cent in 1937 and to 2.7 per cent on their 1938 and 19®9 pay rolls.

MERIT PLAN INCLUDED

The so-called “merit plan” becomes effective Jan. 1, 1940, and the employer contributions are determinable by the amount of balance in the reserve account. If the account is not normal, the levy continues at 1.7 per cent. If it is normal, the employer is to pay: (a) Two per cent if the reserve account balance is 7y 2 per cent, but less than 10 per cent of the total pay roll of the preceding calendar year. (b) One per cent if the balance is 10 pei cent, but less than 12% per cent of the preceding calendar year pay roll. (c) Cease if the balance is 12% per cent of the preceding calendar year pay roll. The levy may reach 4 per cent if it has been necessary to make transfers from the pool account to the reserve account in any year to offset negative balances. Employe contributions are to start in 1937. They are 50 per cent of the amount required of employers subject to a limitation of a 1 per cent maximum.

ACCOUNT IS POOLED

The pooled account is raised by collecting one-sixth of the amounts paid into reserve accounts. If subsequent to 1941, the pooled fund balance amounts to 214 per cent of the total pay roll in any year of all employers liable under the act, no transfers are to be made from normal reserve accounts. Section 5 deals with benefit payments. They may not begin until two years after contributions first accrue. Benefits are to be paid through the state * employment agencies. Total unemployment benefits may equal half of the eligible’s full time wage, subject to a sls maximum and $5 minimum. Partial unemployment benefits are to be paid in amount that would equal full time wages when added to the part time wages. To be eligible for benefits, Section 6 sets out that a jobless individual must register at employment offices designated by the board, must be physically and mentally able to work and available for work.

PENALTIES ARE SET

An individual may become ineligible for benefits if he leaves work voluntarily without good cause or if discharged for misconduct, or if he refuses to accept “suitable em-

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ployment” offered or procured for him. Benefits may not be denied, however, if the position offered is vacant due directly to a strike, lockout or labor dispute or if the hours, wages and conditions of the work offered are substantially less favorable to the individual than those prevailing for similar work in the community. The individual may not be required to join a company union or required to refrain from joining, or made to resign from, a bona fide labor organization. The bill sets up machinery’ for appeal of denied claims. Provision is made for investment of compensation fund moneys. No employe may be charged fees for representation in state board actions.

CIVIL ACTION PERMITTED

An interest penalty' of 1 per cent a month may be assessed for failure to pay fund contributions when due. Collection may be made after due notice through civil action by the attorney general. The employe is protected in the bill from being forced bv his employer to share part of the latter’s burden. No employe may waive any of his rights under the act nor may he pay part of the employer's contributions. Severe fine and imprisonment penalties are fixed. Similar penalties are fixed for false statement or misrepresentation in board actions. Collection of the unemployment compensation contributions are to be made through the existing gross income tax divsion for which more adequate quarters must be obtained. The state measure is contingent upon constitutionality of the Federal act being upheld.

Public Health Bill Explained

The state act on public health is an enabling measure which permits the state to receive approximately $131,000 in Federal funds, part by matching and part as allocations equal to money already being spent. Extremely brief, the act is calculated to: Extend and improve, in co-opera-tion with the children's bureau of the United States Department of Labor, the health of mothers and children, especially in rural areas and areas suffering from economic distress; provide for extension and improvement of maternal and child health services administered by the respective municipal corporations and health districts of the state; develop demonstration services in needy areas and among groups of special need, and co-operate with medical, dental, nursing, educational and welfare organizations of the state. The state health division is made the administration agency for the act. The health department is to develop the organization of local health movements, which probably will be established on a county unit basis. To permit the State Health Board to co-operate with the various departments and bureaus of the Federal government, the state budget committee is authorized by the bill to reallocate the health board’s unexpended funds for the biennium ending June 30. 1937. The reallocation is to be on the health board's recommendation.

$15,000 IS APPROPRIATED

Appropriations of $15,000 are authorized in addition to the funds reallocation. Regular employes of the health board may be assigned to performance of the duties contemplated by the act on a full-time or part-time

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basis and may obtain such additional qualified personnel as a necessary in the judgment of tha health board and the Governor. The health board is authorized to enter into co-operative agreement with the health authorities of any municipal corporation or health district for employment of assistants, investigators and employes.

TERM IS DEFINED

The term “municipal corporation” as used in the act is defined as any county, township, city, town or school corporation which has made or may hereafter make provision for conducting any kind of health work of such character as to qualify under the provisions of the act. As in the case of the unemployment insurance and public welfare bills, the public health measure is designated as an emergency act to take effect immediately upon its passage.

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