53 STAT.] 76TH CONG., 1ST SESS.-CH. 666-AUG. 10 , 1939 agency shall, in determining need, take into consideration any other income and resources of an individual claiming old-age assistance; and (8) effective July 1, 1941, provide safeguards which restrict the use or disclosure of information concerning applicants and recipients to purposes directly connected with the administration of old-age assistance." SEC. 102. Effective January 1, 1940, section 3 of such Act is amended to read as follows: 1361 49 Stat. 621 . 42 U. S. C., Supp. IV, § 303. "PAYMENT TO STATES "SEC. 3 . (a) From the sums appropriated therefor, the Secretary Amont to be paid of the Treasury shall pay to each State which has an approved plan for old-age assistance, for each quarter, beginning with the quarter commencing January 1, 1940, (1) an amount, which shall be used Detemination. exclusively as old-age assistance, equal to one-half of the total of the sums expended during such quarter as old-age assistance under the State plan with respect to each needy individual who at the time of such expenditure is sixty-five years of age or older and is not an inmate of a public institution, not counting so much of such expendi- ture with respect to any individual for any month as exceeds $40, and (2) 5 per centum of such amount, which shall be used for paying Administrative the costs of administering the State plan or for old-age assistance, or both, and for no other purpose. "(b) The method o computing and paying such amounts shall pMethd opaym be as follows: amounts. "(1) The Board shall, prior to the beginning of each quarter, Estimate by Board. estimate the amount to be paid to the State for such quarter Base of estimate. under the provisions of clause (1) of subsection (a), such estimate to be based on (A) a report filed by the State contain- ing its estimate of the total sum to be expended in such quarter in accordance with the provisions of such clause, and stating the amount appropriated or made available by the State and its political subdivisions for such expenditures in such quarter, and if such amount is less than one-half 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 aged individuals in the State, and (C) such other investigation as the Board may find necessary. "(2) The Board shall then certify to the Secretary of the aertifiyation of Treasury the amount so estimated by the Board, (A) reduced or reIctions or in- increased, as the case may be, by any sum by which it finds that Ce its estimate for any prior quarter was greater or less than the amount which should have been paid to the State under clause (1) of subsection (a) for such quarter, and (B) reduced by a sum equivalent to the pro rata share to which the United States is equitably entitled, as determined by the Board, of the net amount recovered during any prior quarter by the State or any political subdivision thereof with respect to old-age assistance fur- nished under the State plan; except that such increases or reduc- Exception. tions 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 estimated by the Board for such prior quarter: Provided, That any part of the amount recov- ories fromes ered from the estate of a deceased recipient which is not in excess tates of deceased re- of the amount expended by the State or any political subdivision pent thereof for the funeral expenses of the deceased shall not be con- sidered as a basis for reduction under clause (B) of this paragraph.
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