76 STAT. ]
PUBLIC LAW 87-543-JULY 25, 1962
189
and guidance services with respect to the use of such payments and the management of other funds by the relative receiving such payments as it deems advisable in order to assure use of such payments in the best interests of such child, and may provide for advising such relative that continued failure to so use such payments will result in substitution therefor of protective payments as provided under section 406(b)(2), or in seeking appointment of a guardian or legal infra. representative as provided in section 1111, or in the imposition of 72 Stat. 1052criminal or civil penalties authorized under State law if it is deter- ^^ ^^^ ^^^^' mined by a court of competent jurisdiction that such relative is not using or has not used for the benefit of the child any such payments made for that purpose; and the provision of such services or advice by the State agency (or the taking of the action specified in such advice) shall not serve as a basis for withholding funds from such State under section 404 and shall not prevent such payments with 42 USC 604. respect to such child from being considered aid to families with dependent children." (b) Section 404(b) of such Act is amended by inserting before the 7s Stat. 77. period at the end thereof the following: "; nor shall any such pay- *^ "^^ ^°'^ment be withheld for any period beginning on or after such date by reason of any action taken pursuant to such a statute if provision is otherwise made pursuant to a State statute for adequate care and assistance with respect to such child". PROTECTIVE PAYMENTS UNDER DEPENDENT CHILDREN PROGRAM
SEC. 108. (a) Section 406(b) of the Social Security Act is amended 42 USC eoe. by inserting " (1) " after "includes" and by inserting before the semicolon at the end thereof: ", and (2) payments with respect to any dependent child (including payments to meet the needs of the relative, and the relative's spouse, with whom such child is living) which do not meet the preceding requirements of this subsection, but which would meet such requirements except that such payments are made to another individual who (as determined in accordance with standards prescribed by the Secretary) is interested in or concerned with the welfare of such child and relative, but only with respect to a State whose State plan approved under section 402 includes provision for— 42 USC 602. " (A) determination by the State agency that the relative of the child with respect to whom such payments are made has such inability to manage funds that making payments to him would be contrary to the welfare of the child and, therefore, it is necessary to provide such aid with respect to such child and relative through payments described in this clause (2); " (B) making such payments only in cases in which such pays ments will, under the rules otherwise applicable under the State plan for determining need and the amount of aid to families with dependent children to be paid (and in conjunction with other income and resources), meet all the need of the individuals with respect to whom such payments are made; (C) undertaking and continuing special efforts to develop greater ability on the part of the relative to manage funds in such manner as to protect the welfare of the family; " (D) periodic review by such State agency of the determination under clause (A) to ascertain whether conditions justifying such determination still exist, with provision for termination of such payments if they do not and for seeking judicial appointment of a guardian or other legal representative, as described in section 1111, if and when it appears that the need for such pay- 42 USC 1311. ments is continuing, or is likely to continue, beyond a period specified by the Secretary;
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