An Act to extend certain Social Security Act provisions, and for other purposes.
PL 95-171 (H.R.3387), enacted 11/12/1977

PUBLIC LAW 95-171—NOV. 12, 1977 
91 STAT. 1353 
Public Law 95-171 
95th Congress 
An Act 
To extend certain Social Security Act provisions, and for other purposes. 
Be it enacted ty the Senate 
and House of Representatives 
of the 
United States of America 
in Congress 
assembled^ 
SECTION 1. (a) Section 3 of Public Law 94-401 is amended— 
(1) by inserting "and the fiscal year ending September 30, 
1978," after "1977," in the matter preceding paragraph (1) of 
subsection ( a ) ; 
(2) by inserting "and such fiscal year ending September 30, 
1978," after "1977," in subsection (a) (1) ( B ) ; 
(3) by striking out "or fiscal year" in subsection (a) (2) and 
inserting in lieu thereof "or either such fiscal year"; 
(4) by striking out "or fiscal year" in subsections (b), (c) (1), 
and (c)(2)(A) and inserting m lieu thereof in each instance 
"or either fiscal year"; 
(5) by inserting ", or the fiscal year ending September 30, 
1978" before the period at the end of subsection (d) (1) ; and 
(6) by striking out "for such fiscal year" in subsection (d) (2) 
and inserting in lieu thereof "for either such fiscal year", 
(b) Section 5(b) of Public Law 94-401 is amended by striking out 
"September 30, 1977" and "October 1, 1977" and inserting in lieu 
thereof "September 30, 1978" and "October 1,1978", respectively. 
(c) Section 6 of Public Law 94-401 is amended by striking out 
"September 30, 1977" and "October 1, 1977" and inserting in lieu 
thereof "September 30, 1978" and "October 1, 1978", respectively. 
(d) Section 7(a) (3) of Public Law 93-647 is amended by striking 
out "October 1, 1977" and inserting in lieu thereof "October 1, 1978". 
(e) Section 50B(a) (2) (B) of the Internal Revenue Code of 1954 
(definition 
of 
Federal 
welfare 
recipient 
employment 
incentive 
expenses) is amended by striking out "October 1,1977" and inserting 
in lieu thereof "October 1,1978". 
(f) The amendments made by this section shall be effective on 
October 1,1977. 
SEC. 2. (a) Section 3304(a) (6) (A) of the Internal Revenue Code 
(relating to approval of State unemployment compensation laws) is 
amended by striking out "and" at the end of clause (ii) and by adding 
at the end thereof the following new clause: 
"(iv) with respect to any services described in clause (i) 
or (ii), compensation payable on the basis of services in any 
such capacity may be denied as specified in clauses (i), (ii), 
and (iii) to any individual who performed such services in 
an educational institution while in the employ of an educa-
tional service agency, and for this purpose the term 'educa-
tional service agency' means a governmental agency or 
governmental entity which is established and 
operated 
exclusively for the purpose of providing such services to one 
or more educational institutions, and", 
(b) The amendments made by subsection (a) shall apply with 
respect to weeks of unemployment which begin after December 31, 
1977. 
Nov. 12, 1977 
[H.R. 3387] 
Social Security 
Act, 
amendments. 
42 u s e 1397a 
note. 
42 u s e 1397a 
note. 
42 u s e 1397a 
note. 
42 u s e 1397b. 
42 u s e 1397 
note. 
26 u s e SOB. 
Effective dat«;. 
26 u s e SOB 
note. 
State 
unemployment 
compensation 
laws, approv£il. 
26 use 3304. 
"Educational 
service agency. 
26 use 3304 
note. 
91 STAT. 1354 
PUBLIC LAW 95-171—NOV. 12, 1977 
42 use 603. 
Families with 
dependent 
children, aid 
payments. 
42 use 606. 
Effective date. 
42 u s e 603 note. 
State aid plans, 
Federal financial 
participation. 
42 u s e 606 note. 
42 u s e 602. 
42 u s e 302 note. 
SEC. 3, (a) (1) Section 403(a) of the Social Security Act is amended 
by striking out "10" in each of the last tv.'o sentences and inserting 
in lieu thereof "20". 
(2) Section 406 (b) of such Act is amended— 
(A) by striking out the semicolon at the end of clause (2) (E) 
and inserting in lieu thereof a period; and 
(B) by adding at the end thereof (after and below clause 
(2) ( E ) ) the following new sentences: 
"Payments with respect to a dependent child which are intended to 
enable the recipient to pay for specific goods, services, or items rec-
ognized by the State agency as a part of the child's need under the 
State plan may (in the discretion of the State or local agency admin-
istering the plan in the political subdivision) be made, pursuant to a 
determination referred to in clause (2) (A), in the form of checks 
drawn jointly to the order of the recipient and the person furnishing 
such goods, services, or items and negotiable only upon endorsement 
by both such recipient and such person; and payments so made shall 
be considered for all of the purposes of this part to be payments 
described in clause (2). Whenever payments with respect to a depend-
ent child are made in the manner described in clause (2) (including 
payments described in the preceding sentence), a statement of the 
specific reasons for making such payments in that manner (on which 
the determination under clause (2) (A) was based) shall be placed 
in the file maintained with respect to such child by the State or local 
agency administering the State plan in the political subdivision.". 
(3) The amendments made by this subsection shall apply wath 
respect to payments of aid to families with dependent children made 
for months beginning on or after October 1,1977. 
(b) Notwithstanding any other provision of law, Federal 
financial 
participation in aid to families with dependent children under a State 
plan approved under section 402 of the Social Security Act, for 
quarters (with respect to which expenditure reports were timely filed 
by the State) during the period beginning with the calendar quarter 
in which Public Law 90-248 was enacted and ending wnth the first 
calendar quarter of 1977, shall not be denied, on or after October 1, 
1977, by reason of the provision of goods, services, or items in the 
form of a check which is drawn jointly to the order of the recipient 
and the person furnishing such goods, services, or items and which 
shows the purpose for which the check is drawn, or by reason of the 
failure of the State to meet the requirement of the last two sentences 
of section 403(a) of such Act or the failure of the State (or any 
political subdivision thereof) to carry out the functions and duties 
prescribed in clauses (A), (B), (C), and (E) of section 40r)(b)(2) 
of such Act, regardless of the form in which the aid involved was 
paid, if (and to the extent that) the amount of such aid was correct 
and the payment of the aid in that form did not result in assistance 
in cases or in amounts not authorized by or under part A of title IV 
of such Act. 
PUBLIC LAW 95-171—NOV. 12, 1977 
91 STAT. 1355 
SEC. 4. (a) Section 167 (k) of the Internal Revenue Code of 1954 
(relating to depreciation of expenditures to rehabilitate low-income 
rental housing) is amended by striking out "January 1, 1978" each 
place it appears and inserting in lieu thereof "January 1,1979". 
(b) Section 203(b) of the Tax Reform Act of 1976 is amended by 
striking out ", and 'before January 1, 1978, and expenditures made 
pursuant to a binding contract entered into before January 1, 1978". 
SEC. 5. Section 4(c) of the Act entitled "An Act to suspend until 
the close of June 30, 1975, the duty on certain carboxmethyl cellulose 
salts, and for other purposes", approved October 26, 1974 (Public 
Law 93-483), is amended to read as follows: 
"(c) EFFECTIVE DATE.—The provisions of this section shall apply 
with respect to amounts received during calendar years 1973, 1974, 
and 1975, and, in the case of a member of a uniformed service receiving 
training after 1975 and before 1979 in programs described in subsection 
(a), with respect to amounts received after 1975 and before 1983." 
SEC. 6. (a) Section 2(b) of Public Law 94-331 is amended by strik-
ing out "and before December 31,1976". 
(b) The effective date of this section shall be the first day of the 
calendar quarter following enactment of this Act. 
SEC. 7. (a) Section 4(b) of Public Law 94-331 is amended by striking 
out "and before December 31,1976". 
(b) The effective date of this section shall be the first day of the 
calendar quarter following enactment of this Act. 
SEC. 8. (a) Section 1612(b) of the Social Security Act is amended— 
(1) by striking out "and" at the end of paragraph 
(10) 
thereof, 
(2) by striking out the period at the end of paragraph (11) 
thereof and inserting in lieu of such period the following: "; and", 
and 
(3) by adding after and below paragraph (11) thereof the 
following new paragraph: 
"(12) interest income received on assistance funds referred to 
in paragraph (11) within the 9-month period beginning on the 
date such funds are received (or such longer periods as the Sec-
retary shall by regulations prescribe in cases where good cause 
is shown by the individual concerned for extending such period).". 
(b) The amendment made by this section shall be effective July 1, 
1976, with respect to catastrophes which occurred on or after June 1, 
1976, and before December 31, 1976. With respect to catastrophes 
which occurred on or after December 31, 1976, the amendment made 
by this section shall be effective the first day of the calendar quarter 
following enactment of this Act. 
SEC. 9. (a) The first sentence of section 1613(a) of the Social Secu-
rity Act is amended— 
(1) by striking out "and" at the end of paragraph (4) thereof, 
(2) by striking out the period at the end of paragraph (5) 
thereof and inserting in lieu of such period the following:"; and", 
and 
26 use 167, 
26 use 167 note. 
26 use 117 Bote. 
Effective date. 
42 use 1382a 
note. 
Effective date. 
42 use 1382a 
note. 
42 use 1382a 
note. 
Effective date. 
42 use 1382a 
note. 
Interest income 
on assistance 
funds. 
42 use 1382a. 
Effective dates. 
42 use 1382a 
note. 
42 use 1382b. 
91 STAT. 1356 
PUBLIC LAW 95-171—NOV. 12, 1977 
42 use 1382a. 
Effective date. 
42 use 1382b 
note. 
26 use 3501. 
(3) by adding after and below paragraph (5) thereof the 
following new paragraph: 
"(6) assistance referred to in section 1612(b) (11) for the 
9-month period beginning on the date such funds are received 
(or for such longer period as the Secretary shall by regulations 
prescribe in cases where good cause is shown by the individual 
concerned for extending such period); and, for purposes of this 
paragraph, the term 'assistance' includes interest thereon which 
is excluded from income under section 1612 (b) (12).". 
(b) The amendment made by this section shall be effective July 1, 
1976, with respect to catastrophes which occurred on or after June 1, 
1976, and before December 31, 1976. With respect to catastrophes 
which occurred on or after December 1, 1976, the amendment made 
by this section shall be effective the first day of the calendar quarter 
following enactment of this Act. 
SEC. 10. (a) Chapter 25 of the Internal Revenue Code of 1954 
(relating to general provisions for employment taxes) is amended by 
addintr at the end thereof the following; new section: 
26 use 3506. 
"SEC. 3506. INDIVIDUALS PROVIDING COMPANION 
SIT-
TING PLACEMENT SERVICES. 
"Sitters." 
Regulations. 
Effective date. 
26 use 3506 
note. 
" (a) I N GENERAL.—For purposes of this subtitle, a person engaged 
in the trade or business of putting sitters in touch with individuals 
who wish to employ them shall not be treated as the employer of such 
sitters (and such sitters shall not be treated as employees of such 
person) if such person does not pay or receive the salary or wages of 
the sitters and is compensated by the sitters or the persons who employ 
them on a fee basis. 
"(b) DEFINITION.—For purposes of this section, the term 'sitters' 
means individuals who furnish personal attendance, companionship, 
or household care services to children or to individuals who are elderly 
or disabled. 
"(c) REGULATIONS.—The Secretary shall prescribe such regulations 
as may be necessary to carry out the purpose of this section.". 
(b) The table of sections for such chapter is amended by adding at 
the end thereof the following new item: 
"Sec. 3506. Individuals providing companion sitting placement 
services.". 
(c) The amendments made by this section shall apply to remunera-
tion received after December 31,1974. 
(d) The amendments made by this section shall not be construed as 
affecting (1) any individual's right to receive unemployment compen-
sation based on services performed before the date of the enactment 
of this Act, or (2) any individual's eligibility for social security 
benefits to the extent based on services performed before that date. 
PUBLIC LAW 95-171—NOV. 12, 1977 
91 STAT. 1357 
SEC. 11. Section 457(c) of the Social Security Act is amended— 
42 U
S
C 657. 
(a) in paragraph (1) — 
(1) by striking out "such support payments" and inserting 
in lieu thereof "amounts of child support payments which 
represent monthly support payments", and 
(2) by inserting ", which represent monthly support pay-
ments," immediately after "amounts so collected", and 
(b) in paragraph (2) — 
(1) by striking out "such support payments" and inserting 
in lieu thereof "amounts of child support payments which 
' '' 
represent monthly support payments", 
(2) by inserting ", which represents monthly support pay-
ments," immediately after "amount so collected", and 
(3) by striking out the period at the end thereof and 
inserting in lieu of such period a comma, and 
(c) by adding at the end thereof the following new provision: Child support 
"and so much of any amounts of child support so collected as are in proceeds, 
excess of the payments required to be made in paragraph (1) shall be distribution, 
distributed in the manner provided by subsection (b) (3) (A) and (B) 
with respect to excess amounts described in subsection (b).". 
Approved November 12, 1977. 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 95-439 (Comm. on Ways and Means). 
SENATE REPORT No. 95-456 (Comm. on Finance). 
CONGRESSIONAL RECORD, VoL 123 (1977): 
July 18, considered and passed House. 
Oct. 17, considered and passed Senate, amended. 
Oct. 25, House concurred in Senate amendment with an amendment. 
Oct. 27, Senate concurred in House amendment.