An Act to amend the Tariff Schedules of the United States to provide duty free treatment to watches and watch movements manufactured in any insular possession of the United States if foreign materials do not exceed 70 percent of the total value of such watches and movements, to amend child support provisions of title IV of the Social Security Act, and for other purposes.
PL 94-88 (H.R.7710), enacted 08/09/1975

PUBLIC LAW 94-88—AUG. 9, 1975 
89 STAT. 433 
Public Law 94-88 
94th Congress 
An Act 
To amend the TarifiE Schedules of the United States to provide duty free treat-
ment to watches and watch movements manufactured in any insular possession 
of the United States if foreign materials do not exceed 70 percent of the total 
value of such watches and movements, to amend child support provisions of 
title IV of the Social Security Act, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That general head-
note 3(a) (i) of the Taritf Schedules of the United States (19 U.S.C. 
1202) is amended by inserting immediately after "50 percent of their 
total value" the following: "(or more than 70 percent of their total 
value with respect to watches and watch movements)". 
SEC. 2. The amendment made by the first section of this Act shall 
apply with respect to articles entered, or withdrawn from warehouse, 
for consumption on or after the date of enactment of this Act. 
T I T L E I I — A M E N D M E N T S R E L A T I N G TO SOCIAL 
S E C U R I T Y ACT 
Aug. 9. 1975 
[H.R. 7710] 
Certain watches 
and watch 
movements, duty 
suspension; 
Social Secuiity 
Act, 
amendments. 
19 use 1202 
note. 
TEMPORARY WAIVERS OF CERTAIN REQUIREMENTS FOR CERTAIN STATES 
SEC. 201. (a) If the Governor of any State, which has an approved 
State plan under part A of title IV of the Social Security Act, sub-
mits to the Secretary of Health, Education, and Welfare (hereinafter 
in this section referred to as the "Secretary"), a request that any pro-
vision of section 402(a) (26) of the Social Security Act or section 
402(a) (27) of such Act not be made applicable to such State prior to 
a date specified in the request (which shall not be later than June 30, 
1976) and— 
(1) such request is accompanied by a certification, with respect 
to such provision, of the Governor that the State cannot imple-
ment such provision because of the lack of authority to do so 
under State law, and 
(2) such request fully explains the reasons why such provision 
cannot be implemented, and sets forth any provision of State law 
which impedes the implementation thereof, 
the Secretary shall, if he is satisfied that such a waiver is justified, 
grant the waiver so requested. 
(b) During any period with respect to which a w^aiver, obtained 
under subsection (a) with respect to section 402(a) (26) (A) of the 
Social Security Act, is in effect with respect to any State, the provi-
sions of section 454 (4) and (5) of such Act shall be applied to such 
State in like manner as if the phrase "with respect to whom an assign-
ment under section 402(a) (26) of this title is effective" did not appear 
therein, and the provisions of section 458 of such Act shall be applied 
to such State in like manner as if the phrase "support rights assigned 
under section 402(a) (26)" read "child support obligations". 
(c) Section 455 of the Social Security Act is amended to read as 
follows: 
Request, 
submittal. 
42 use 602 note. 
42 use 601. 
42 use 602. 
42 use 654. 
42 use 658. 
Payments to 
States. 
42 use 655. 
89 STAT. 434 
PUBLIC LAW 94-88—AUG. 9, 1975 
"SEC. 455. From the sums appropriated therefor, the Secretary shall 
pay to each State for each quarter, beginning with the quarter com-
mencing July 1,1975, an amount— 
' (1) equal to 75 percent of the total amounts expended by such 
State during such quarter for the operation of the plan approved 
42 use 654. 
under section 454, and 
" (2) equal to 50 percent of the total amounts expended by such 
State during such quarter for the operation of a plan which 
meets the conditions of section 454 except as is provided by a 
waiver by the Secretary which is granted pursuant to specific 
authority set forth in the law; 
except that no amount shall be paid to any State on account of fur-
nishing child support collection or paternity determination services 
(other than the parent locator services) to individuals under section 
454 (6) during any period beginning after June 30,1976.". 
Reports to 
(^^ The Secretary shall from time to time, submit to the Committee 
congressional 
Q^ Finance of the Senate and the Committee on Ways and Means of 
42"tJ^^C 60*2 
*^® House of Eepresentatives, full and complete reports (the first of 
which shall not be later than September 15, 1975) regarding any 
requests which he has received for waivers under subsection (a) and 
any waivers granted by him under such subsection, and such reports 
shall include copies of all such requests for such waivers and any 
supporting documents submitted with or in connection with any such 
requests. 
PROTECTION AGAINST DECREASE IN GRANTS BECAUSE OF PAYMENT OF 
SUPPORT DIRECTLY TO THE STATE 
42 use 602. 
SEC. 202. Section 402(a) of the Social Security Act is amended— 
(1) by striking out "and" at the end of paragraph (26); 
(2) by striking out the period at the end of paragraph (27) 
and inserting in lieu thereof "; and"; and 
(3) by adding after paragraph (27) the following new 
paragraph: 
"(28) provide that, in determining the amount of aid to which 
an eligible family is entitled, any portion of the amounts collected 
in any particular month as child support pursuant to a plan 
42 use 651. 
approved under part D, and retained by the State under section 
42 use 657. 
457^ which (under the State plan approved under this part as 
in effect both during July 1975 and during that particular month) 
would not have caused a reduction in the amount of aid paid to 
the family if such amounts had been paid directly to the family, 
shall be added to the amount of aid otherwise payable to such 
family under the State plan approved under this part.". 
SUPPORT ASSIGNMENTS BY RECIPIENTS DURING TRANSITIONAL, PERIOD 
42 use602 note. 
SEC. 203. (a) Li the case of any State the law of which on August 1, 
1975, meets the requirements of section 402(a) (26) (A) of the Social 
42 use 602. 
Security Act, the requirements of such section shall be effective, with 
respect to individuals who are recipients on August 1, 1975, at such 
time as may be determined by the State agency, but not later than the 
time of the first redetermination of eligibility required after August 1, 
1975, and in any event not later than February 1, 1976. 
(b) In the case of any State described in subsection (a), the pro-
42 use 654. 
visions of section 454 (4) and (5) of the Social Security Act shall, 
during the period beginning August 1,1975, and ending December 31, 
1975, be applied, with respect to all recipients of aid under the State 
PUBLIC LAW 94-88—AUG. 9, 1975 
89 STAT. 435 
plan of such State (approved under part A of title IV of such Act) 
who have not made an assignment pursuant to section 402(a) (26) (A) 
of such Act, in the case of such State in like manner as if the phrase 
"with respect to whom an assignment under section 402(a) (26) of 
this title is effective" did not appear therein, and the provisions of 
section 458 of such Act shall, during such period, be applied in the 
case of such State in like manner as if the phrase "support rights 
assigned under section 402(a) (26)" read "child support obligations". 
42 use 601. 
42 use 602. 
REMOVAL o r VENDOR PAYMENT LIMITATION FOR CHILD SUPPORT 
SEC. 204. Section 403(a) of the Social Security Act is amended by 
inserting before the period at the end thereof "or section 402 (a) (26)". 
42 use 603. 
AUTHORITY FOR QUARTERLY ADVANCES TO STATES FOR CHILD 
SUPPORT PROGRAMS 
SEC. 205. (a) Section 455 of the Social Security Act (as added by 
the Social Services Amendments of 1974 and amended by section 
201(c) of this Act) is amended by inserting "(a)" immediately after 
"SEC. 455." and by adding at the end thereof the following new 
subsection: 
"(b) (1) Prior to the beginning of each quarter, the Secretary shall 
estimate the amount to which a State will be entitled under subsec-
tion (a) for such quarter, such estimates 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 appropriated 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, and (B) 
such other investigation as the Secretary may find necessary. 
"(2) The Secretary shall then pay, in such installments as he may 
determine, to the State the amount so estimated, reduced or increased 
to the extent of any overpayment or underpayment which the Secre-
tary determines was made under this section to such State for any 
prior quarter and with respect to which adjustment has not already 
been made under this subsection. 
"(3) Upon the making of any estimate by the Secretary under this 
subsection, any appropriations available for payments under this sec-
tion shall be deemed obligated.". 
Estimate of 
payments. 
Ante, p. 433. 
PAYMENTS TO STATES FOR CERTAIN EXPENSES INCURRED DURING JULY 19 7 5 
SEC. 206. Notwithstanding any other provision of law, amounts 42 USe 655 note, 
expended in good faith by any State (or by any of its political sub-
divisions) during July 1975 in employing and compensating staff 
personnel, leasing office space, purchasing equipment, or carrying out 
other organizational or administrative activities, in preparation for or 
implementation of the child support program under part D of title IV 
of the Social Security Act, shall be considered for purposes of section 42 USe 651. 
455 of such Act (as amended by this Act), to the extent that payment 42 USe 655. 
for the activities involved would be made under such section (as so 
amended) if section 101 of the Social Services Amendments of 1974 88 Stat. 2351. 
had become effective on July 1, 1975, to have been expended by the 
State for the operation of the State plan or for the conduct of activi-
ties specified in such section (as so amended). 
89 STAT. 436 
PUBLIC LAW 94-88—AUG. 9, 1975 
42 use 602. 
42 
use 
620, 
630, 
651. 
42 
use 
301, 
1201, 
1351, 
1381, 
1396, 
1397. 
^AEEGUARDINQ OF INrORMATlON 
SEC. 207. Section 402(a) (9) of the Social Security Act (as amended 
by the Social Services Amendments of 1974) is amended to read as 
follows: 
"(9) provide safeguards which restrict the use of disclosure &i 
information concerning applicants or recipients to purposes 
directly connected with (A) the administration of the plan of the 
State approved under this part, the plan or program of the State 
under part B, C, or D of this title or under title I, X, XIV, XVI, 
XIX, or XX, or the supplemental security income program 
established by title XVI, (B) any investigation, prosecution, or 
criminal or civil proceeding, conducted in connection with the 
administration of any such plan or program, and (C) the admin-
istration of any other Federal or federally assisted program which 
provides assistance, in cash or in kind, or services, directly to 
individuals on the basis of;need; and the safeguards so provided 
shall prohibit disclosure, to any committee or a legislative body, 
of any information which identifies by name or address any such 
applicant or recipient;". 
42 use 602. 
42 use 654. 
42 use 601. 
Proposed stand-
ards, submittal to 
eongress. 
42 u s e 602 note. 
Effective date. 
'Resolution. 
PROTECTION OF CHILD'S BEST INTEREST 
SEC. 208. (a) Section 402(a) (26) (B) of the Social Security Act (as 
added by the Social Services Amendments of 1974) is amended by 
inserting immediately after "such applicant or such child" the fol-
lowing: ", unless (in either case) such applicant or recipient is found 
to have good cause for refusing to cooperate as determined by the 
State agency in accordance with standards prescribed by the Secre-
tary, which standards shall take into consideration the best interests 
of the child on whose behalf aid is claimed;". 
(b) Section 454(4) (A) of such Act (as so added) is amended by 
inserting after "such child," the following: "unless the ?igency admin-
istering the plan of the State under part A of this title determines in 
accordance with the standards prescribed by the Secretary pursuant 
to section 402(a) (26) (B) that it is against the best interests of the 
child to do so,". 
(c) Section 454(4) (3) of such Act (as so added) is amended by 
inserting immediately after "other States" the following: "(unless 
the agency administering the plan of the State under part A of this 
title determines in accordance with the standards prescribed by the 
Secretary pursuant to section 402(a) (26) (B) that it is against the best 
interests of the child to do so)". 
(d)(1) The Secretary of Health, Education, and Welfare shall 
submit to the Congress any proposed standards authorized to be pre-
scribed by him under section 402(a) (26) (B) of the Social Security 
Act (as added by the Social Services Amendments of 1974 and as 
amended by subsection (a) of this section). Such standards shall take 
effect at the end of the period which ends 60 days after such proposed 
standards are so submitted to such committees unless, within such 
period, either House of the Congress, adopts a resolution of 
disapproval. 
(2) For purposes of this subsection, the term^'^resolution" means 
only— 
(A) a concurrent resoli^tionof "the two Houses of the Congress, 
the matter after the resolving clause of which is as follows: "That 
the Congress does not approve the standards (as authorized under 
PUBLIC LAW 94-88—AUG. 9, 1975 
89 STAT. 437 
section 402(a) (26) (B) of the Social Security Act) transmitted to 42 U
S
C 602. 
the Congress on 
.", the blank space being filled with 
the appropriate date; and 
(B) a resolution of either House of the Congress, the matter 
after the resolving clause of which is as follows: "That the 
does not approve the standards (as authorized under section 402 
(a)(26)(B) of the Social Security Act) transmitted to the Con-
gress on 
.", with the first blank space being filled 
with the name of the resolving House, and the second blank space 
being filled with the appropriate date. 
(3) The provisions of subsection (b), (c), (d), (e), and (f) of 
section 152 of the Trade Act of 1974 shall be applicable to resolutions 19 USC 2192. 
imder this subsection, except that the "20 hours" referred to in sub-
sections (d) (2) and (e) (2) of such section shall be deemed to read 
"4 hours". 
TECHNICAL AMENDMENT 
SEC. 209. Section 402(a) (27) is amended by striking out "States 42 USC 602. 
have" and inserting in lieu thereof "State has". 
EFFECTIVE DATE 
SEC. 210. The amendments made by this title shall, unless otherwise 42 U
S
C 602 note, 
specified therein, become effective August 1,1975. 
Approved August 9, 1975. 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 94-298 (Comm. on Ways and Means). 
SENATE REPORT No. 94-273 (Comm. on Finance). 
CONGRESSIONAL RECORD, Vol. 121 (1975): 
June 24, considered and passed House. 
Aug. 1, considered and passed Senate, amended; House concurred in Senate 
amendments. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 11, No. 33: 
Aug. 11, Presidential statement.