[Federal Register Volume 62, Number 2 (Friday, January 3, 1997)]
[Rules and Regulations]
[Pages 309-313]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-39]


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SOCIAL SECURITY ADMINISTRATION

20 CFR Part 416

[Regulations No. 16]
RIN 0960-AD75


Supplemental Security Income for the Aged, Blind, and Disabled; 
Charging Administration Fees for Making State Supplementary Payments; 
Interest Charging on State Supplementary Payment Funds

AGENCY: Social Security Administration (SSA).

ACTION: Final rule.

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SUMMARY: We are revising our rules to bring them into accord with 
statutory changes which require the Social Security Administration 
(SSA) to charge the States an administration fee for making 
supplementary payments on behalf of States and authorize SSA to charge 
the States an additional services fee for performing services not 
customarily provided at the request of States. We also are conforming 
our regulations to reflect the requirements of the law regarding the 
transfer of funds

[[Page 310]]

from States to SSA for use in making supplementary payments.

EFFECTIVE DATE: These rules are effective February 3, 1997.

FOR FURTHER INFORMATION CONTACT: Henry D. Lerner, Legal Assistant, 
Division of Regulations and Rulings, Social Security Administration, 
6401 Security Blvd., Baltimore, MD 21235, (410) 965-1762 for 
information about these rules. For information on eligibility or 
claiming benefits, call our national toll-free number, 1-800-772-1213.

SUPPLEMENTARY INFORMATION

Background

    These regulations reflect the provisions of section 13731 of Pub. 
L. 103-66 (the Omnibus Budget Reconciliation Act (OBRA) of 1993) and 
Pub. L. 101-453 (the Cash Management Improvement Act (CMIA) of 1990) as 
amended by Pub. L. 102-589 (the Cash Management Improvement Act 
Amendments of 1992). From the inception of the supplemental security 
income (SSI) program in January 1974 through September 1993, SSA did 
not have the authority to charge States for the costs it incurred in 
administering mandatory and optional State supplementary payment 
programs. During that same period of time, SSA did not have specific 
authority to charge States for the costs it incurred in performing, at 
the request of the States, services not customarily provided in the 
administration of State supplementary payment programs.
    Section 13731 of Public Law 103-66, effective for supplementary 
payments made for any month beginning on or after October 1, 1993, 
requires SSA to charge the States an administration fee for making 
supplementary payments on behalf of States and authorizes SSA to charge 
the States an additional services fee for performing services at the 
request of States not customarily provided.
    The CMIA requires that transfers of funds from the States to SSA 
for the payment of supplementary payments be timed to coincide as 
closely as possible with disbursements of those funds to eligible 
individuals. In the case of certain States, transfers which do not 
occur on due dates and/or which are not in appropriate amounts will 
cause the imposition of an interest liability on either the States or 
on the Federal Government in accordance with the regulations of the 
United States Department of the Treasury implementing the CMIA. The 
provisions of the CMIA were effective on the later of July 1, 1993, or 
the first day of the State's fiscal year beginning in 1993. Prior to 
the effective date of the CMIA, no interest liability was incurred by 
either the States or the Federal Government on the transfer of funds to 
SSA for use in making State supplementary payments.
    At the outset of the SSI program, States were encouraged to 
supplement the Federal benefit. As an incentive to provide a 
supplement, States that agreed to make optional supplementary payments 
and signed an agreement to have those payments administered by the 
Federal Government would not be charged a fee for Federal 
administration. States required to pay mandatory supplementary payments 
could also enter into agreements providing for Federal administration 
of those payments at no cost to the States. States electing Federal 
administration were required to periodically transfer to SSA only 
amounts equal to the expenditures made by SSA for supplementary 
payments.
    On October 1, 1993, pursuant to amendments made to the Social 
Security Act (the Act) and to section 212(b)(3) of Public Law 93-66 by 
section 13731 of Public Law 103-66, SSA began charging States that had 
elected Federal administration of optional and/or mandatory State 
supplementary payments a fee for administering those payments. The 
administration fee is charged monthly and is derived by multiplying the 
number of State supplementary payments made by SSA on behalf of a State 
for a month by the applicable dollar rate for the fiscal year (FY), as 
prescribed in section 13731 of Public Law 103-66. The dollar rates are 
as follows: for FY 1994, $1.67; for FY 95, $3.33; for FY 96, $5.00; 
and, for FY 1997 and each succeeding FY, $5.00 or such different rate 
as determined by SSA to be appropriate for any particular State, taking 
into account the complexity of administering the State's supplementary 
payment program. The number of supplementary payments made by SSA in a 
month is the total number of checks issued, and direct deposits made, 
to recipients in that month, that are composed in whole or in part of 
State supplementary funds. The number of supplementary payments 
include, for example, recurring monthly payments (ongoing monthly 
payments to individuals who maintain eligibility from the previous 
month); supplemental payments (payments certified after the date 
established for the regular transfer of payment data to the United 
States Department of the Treasury); daily payments (non-recurring 
initial claims or post-entitlement payments including one-time payments 
such as those made to correct underpayments); erroneous payments 
(overpayments and payments to ineligibles); unnegotiated check payments 
(payments by check not presented for payment by the recipient within 
180 days of issuance); replacement checks (duplicate checks issued when 
recipients allege nonreceipt of original check issuances); and, 
installment payments of large past-due amounts (payments made over a 
period of months, the sum of which is equal to amounts due recipients).
    Section 13731 of Public Law 103-66 also authorizes SSA to charge a 
State an additional services fee if, at the request of the State, SSA 
agrees to provide the State with additional services beyond the level 
customarily provided in the administration of State supplementary 
payments. SSA is not required to perform any additional services 
requested by a State and may, at its sole discretion, refuse to perform 
those additional services. An additional services fee charged a State 
may be a one-time charge or, if the furnished services result in 
ongoing costs to the Federal Government, a monthly or less frequent 
charge to the State for providing such services. Section 13731 of 
Public Law 103-66 requires that the additional services fee be in an 
amount that SSA determines is necessary to cover all costs (including 
indirect costs) incurred by the Federal Government in furnishing the 
additional services. Prior to the effective date of section 13731 of 
Pub. L. 103-66, SSA had no specific authority to impose additional 
services fees.
    The CMIA was enacted to ensure greater efficiency, effectiveness 
and equity in the exchange of funds between the Federal Government and 
the States. For purposes of Federal administration of State 
supplementary payments, the CMIA requires that the transfer of funds 
from the States to SSA for use in making supplementary payments be 
timed to coincide as closely as possible with the actual payment of 
those funds to recipients. While all States are required to comply with 
the funding techniques of the CMIA, pursuant to the implementing 
regulations of the United States Department of the Treasury at 31 CFR 
Part 205, only those States whose State supplementary payment programs 
meet the requirements of a major Federal assistance program in their 
respective States are subject to the interest liability provisions of 
the CMIA. For those States, transfers of supplementary payment funds to 
SSA which are not made on due dates and/or are not made in appropriate 
amounts will cause the imposition of an interest liability on either 
the State, or the

[[Page 311]]

Federal Government. Currently, SSA administers the supplementary 
payment programs of 25 States and the District of Columbia. The 
supplementary payment programs of 11 of those States and the District 
of Columbia meet the requirements of a major Federal assistance program 
and, thus, are subject to the interest liability provisions of the 
CMIA.
    Each month, States are notified of the amount of funds they must 
transfer to SSA to be used in the succeeding month to make 
supplementary payments and to pay administration fees. Notification is 
made, generally, 7 work days before the end of the month. For purposes 
of complying with the funding technique requirements of the CMIA and 
its implementing regulations, all State funds must be received by SSA 
by the fifth Federal business day following the day the regularly 
recurring monthly supplementary payments are issued. This date is the 
State supplementary payment transfer date and represents the dollar-
weighted average day of clearance of all SSI/State supplementary 
payment checks and direct deposits made to individuals in a month. 
Section 1616(d) of the Act and section 212(b)(3) of Public Law 93-66, 
as amended by section 13731 of Public Law 103-66, require that the 
States pay administration fees on the same day they transfer to SSA the 
amounts necessary to make State supplementary payments. However, the 
provisions of the CMIA apply only to the amounts transferred to SSA for 
use in making supplementary payments. Therefore, the interest 
provisions of the CMIA are inapplicable to the payment of 
administration fees not made on transfer dates and/or not made in 
appropriate amounts. However, administration fee payment delinquencies 
by States are subject to the provisions of the claims collection 
regulations at 45 CFR Part 30, which include the imposition of interest 
on amounts due SSA. These Department of Health and Human Services 
regulations remain applicable after March 30, 1995, to the assessment 
of interest on delinquent administration fees by SSA pursuant to 
section 106(b) of Public Law 103-296, the Social Security Independence 
and Program Improvements Act of 1994.
    It is not possible for SSA to forecast the precise amount of State 
expenditures that will be made in the subsequent month. Therefore, the 
amounts transferred on the State supplementary payment transfer date 
are based on estimates made by SSA. After the close of the month for 
which the amounts are transferred, when final expenditure figures 
become available, those amounts will be revealed to be either more or 
less than actually expended, therefore triggering an interest liability 
on either the State or the Federal Government. Prior to the amendments 
being made by these final rules, SSA's regulations did not reflect the 
CMIA requirement that supplementary payment funds be transferred to SSA 
on the date of average clearance of SSI/supplementary payments, nor did 
they authorize the charging or payment of interest by either SSA or the 
States with regard to the transfer of State supplementary payment 
funds.

Regulations Changes

    We are amending the regulations at Secs. 416.2010(b) and 416.2090 
to reflect the provisions of section 13731 of Public Law 103-66 that 
require SSA to charge States an administrative fee for administering 
their State supplementary payments and authorize SSA to charge States 
an additional services fee for services not customarily performed. 
Examples of services not customarily provided States and thus, for 
which an additional fee will be charged if SSA agrees to perform them, 
are presented below. The list is not intended to be inclusive. Any and 
all additional services performed by SSA at the request of a State will 
be subject to the services fee, including:
    <bullet> The collection and/or verification of additional 
information in the claims or redetermination process which SSA does not 
now typically or usually collect and/or verify;
    <bullet> The modification of a supplementary payment level 
variation or replacement of a supplementary payment level variation, 
resulting in a variation more labor intensive or otherwise more costly 
to administer than variations normally administered by SSA;
    <bullet> The modification or expansion of the existing SSI Quality 
Assurance sample that would increase the level of reporting usually 
performed by SSA;
    <bullet> The development and issuance of notices to SSI/State 
supplementary payment recipients in the State beyond those normally 
provided;
    <bullet> The revision of State supplementary payment amounts which 
requires software changes in the SSI payment system not otherwise 
necessary. Such revisions would be other than the customary revisions 
associated with annual cost-of-living adjustments to the Federal 
benefit rate;
    <bullet> The provision of more detailed or frequent accounting data 
or reports; and
    <bullet> A service that would require SSA to engage in software 
development or modification and/or reprogramming efforts not normally 
undertaken.
    We also are amending the regulations at Sec. 416.2090(a)(2) to 
provide, consistent with our present procedure, that all State funds to 
be used by SSA to make monthly supplementary payments and to pay 
administration fees for that month, as estimated by SSA, must be on 
deposit with SSA by the fifth Federal business day following the day 
the regularly recurring monthly supplementary payments are issued. This 
paragraph also provides that any additional services fees are to be on 
deposit with SSA on the date specified by SSA. In addition, we are 
amending Sec. 416.2090(b) to clarify that administration and additional 
services fees are included in SSA's accounting of State funds and to 
reflect the fact that SSA and the States may now incur interest charges 
with respect to the adjustment and accounting of State supplementary 
payment funds in accordance with the CMIA and implementing regulations 
of the United States Department of the Treasury.
    We also are making technical revisions to the regulations in 
Subpart T that are unrelated to the provisions of OBRA of 1993 and the 
CMIA. Section 184 of Public Law 97-248, enacted September 3, 1982, 
phased-out the hold-harmless provisions of the Social Security Act. In 
order to reflect the fact that these provisions are now obsolete, we 
are deleting the hold-harmless regulations at Secs. 416.2010(b) (except 
for the last sentence which is unrelated to the hold-harmless 
protection and which will be inserted at the end of Secs. 416.2005(d)), 
416.2080, 416.2082, and 416.2085 per SSA's June 1, 1995, report to 
President Clinton on Eliminating and Improving Regulations, and are 
amending the regulations at Sec. 416.2050(b)(1) and Sec. 416.2090 
(a)(2) and (d). Section 416.2010(d) is being redesignated as 
Sec. 416.2010(c) and is being revised to indicate that agreements will 
renew automatically one year after the date they are signed for a 
period of one year unless the State or SSA gives written notice not to 
renew at least 90 days before the beginning of the new period. The 
regulations previously provided that the agreements run until June 30, 
the Federal government's former end of a fiscal year. This change takes 
into consideration the fact that States have not signed their 
agreements on one uniform date. Finally, these rules, in the sections 
being amended, replace all references to the Secretary of Health and 
Human Services with references to SSA to reflect Public Law 103-296 
which, effective March 31, 1995, established

[[Page 312]]

SSA as an independent agency separate from the Department of Health and 
Human Services.

Comments on Notice of Proposed Rulemaking

    These regulations were published in the Federal Register (61 FR 
18529) as a notice of proposed rulemaking (NPRM) on April 26, 1996. 
Interested parties were given 60 days to submit comments. Public 
comments were received from a State's Governor's office which raised 
concerns about interest charging on State supplementary funds. We 
address these concerns in our responses to the comments by elaborating 
on certain statements we made in the NPRM. We are, therefore, 
publishing the final rules with no substantive changes from the 
proposed rules.
    Comment: The commenter believes it is contrary to the spirit of 
CMIA to assess interest when a State timely transmits to SSA the amount 
of SSI funds requested for a month's disbursements. The NPRM indicates 
that such interest results because ``[i]t is not possible for SSA to 
forecast the precise amount of State expenditures that will be made in 
the subsequent month . . .,'' (61 FR 18529, 18530) which the commenter 
sees as an explicit admission that SSA procedures require improvement.
    The commenter stated that in conversations with SSA on this 
subject, it was explained that necessary adjustments occurring 
subsequent to the payment due date affect the final monthly figures. 
This could and does result in differences between the amounts estimated 
by SSA and amounts actually paid out, leading to a calculation of 
interest due to or from the Federal Government. According to the 
commenter, a fairer solution to the problem would be for SSA to record 
the later adjustments and apply them, plus or minus, to the estimates 
for the succeeding month. These estimates, when timely transmitted by 
the State, would result in no interest calculation and would be in 
keeping with the spirit of CMIA.
    Response: Pursuant to CMIA, interest has been and will be 
calculated on the difference between the amount of the State's monthly 
payment to SSA and the actual amount of monthly outlays for State 
supplementary payments made by SSA on behalf of the State. The monthly 
funds requests are developed nearly two months before the actual 
current month's expenditures are available. SSA does take adjustments 
into consideration when developing the monthly estimates. However, 
State supplementary payments are not processed only on the first of 
each month. Payments and recoveries are processed daily and the volume 
is unpredictable. By including as many monthly adjustments and payments 
as possible in the monthly funds request, interest charges to either 
party are kept to a minimum. The greatest cause of interest to either 
party is the early or late transfer of State payment funds not the 
adjustments included in the funds requests.
    Comment: The same commenter also addresses the rate of interest SSA 
uses in calculating a ``penalty'' for untimely delivery of the 
processing fees. According to the commenter, SSI is by its nature not a 
``Federal Assistance Program,'' which defines the scope of CMIA. 
However, since the program is specifically covered by CMIA regulations, 
the commenter accepts its inclusion under CMIA.
    The commenter states that CMIA defines the interest rate applicable 
to programs covered by CMIA, and does not reserve to SSA or any Federal 
agency the right to charge interest rates other than those calculated 
in accordance with CMIA; therefore, any interest charged for delinquent 
payment of processing fees should be subject to CMIA interest rules. 
The commenter believes that in terms of equity and fairness, SSA cannot 
have it both ways: either SSI and related fees are subject to CMIA or 
they are not. If they are subject to CMIA, as it appears, then only one 
interest rate should apply--that specified by CMIA regulations.
    Response: The CMIA is only applicable to funds representing benefit 
payments to recipients. The administration fees are not covered by 
CMIA. However, the fees are covered by the claims collection 
regulations, set forth at Subpart B of 45 C.F.R. Part 30. These 
regulations require that the Commissioner of Social Security take 
action to collect debts and reduce delinquencies and generally require 
the imposition of interest on debts. The interest rate is set by the 
Secretary of the Treasury after taking into consideration the 
prevailing private consumer rates of interest. The State is immediately 
notified of any interest due as a result of a failure to make timely 
payment of its administrative fee.

Regulatory Procedures

Executive Order 12866

    We have consulted with the Office of Management and Budget (OMB) 
and determined that these rules do not meet the criteria for a 
significant regulatory action under Executive Order 12866. Thus, they 
were not subject to OMB review.

Regulatory Flexibility Act

    We certify that these rules will not have a significant economic 
impact on a substantial number of small entities. Therefore, a 
regulatory flexibility analysis as provided in Public Law 96-354, the 
Regulatory Flexibility Act, is not required.

Paperwork Reduction Act

    These rules impose no reporting/recordkeeping requirements subject 
to OMB clearance.

(Catalog of Federal Domestic Assistance Program No. 96.006, 
Supplemental Security Income)

List of Subjects in 20 CFR Part 416

    Administrative practice and procedure, Aged, Blind, Disability 
benefits, Public assistance programs, Reporting and recordkeeping 
requirements, Supplemental Security Income.

    Dated: December 19, 1996.
Shirley S. Chater,
Commissioner of Social Security.
    Subpart T of part 416 of chapter III of title 20 of the Code of 
Federal Regulations is amended as follows:

PART 416--[AMENDED]


Subpart T--[Amended]

    1. The authority citation for subpart T of part 416 continues to 
read as follows:

    Authority: Secs. 702(a)(5), 1616, 1618, and 1631 of the Social 
Security Act (42 U.S.C. 902(a)(5), 1382e, 1382g, and 1383); sec. 
212, Pub. L. 93-66, 87 Stat. 155 (42 U.S.C. 1382 note); sec. 8(a), 
(b)(1)-(b)(3), Pub. L. 93-233, 87 Stat. 956 (7 U.S.C. 612c note, 
1431 note and 42 U.S.C. 1382e note); secs. 1 (a)-(c) and 2(a), 
2(b)(1), 2(b)(2), Pub. L. 93-335, 88 Stat. 291 (42 U.S.C. 1382 note, 
1382e note).

    2. Section 416.2005 is amended by revising paragraph (a), removing 
``the Secretary'' and adding ``SSA'' in the heading and each time it 
appears in paragraphs (b)-(d) and adding a sentence to the end of 
paragraph (d) to read as follows:


Sec. 416.2005  Administration agreements with SSA.

    (a) Agreement-mandatory only. Subject to the provisions of 
paragraph (d) of this section, any State having an agreement with the 
Social Security Administration (SSA) under Sec. 416.2001(c) may enter 
into an administration agreement with SSA under which SSA will make the 
mandatory minimum supplementary payments on behalf of such State. An 
agreement under Sec. 416.2001(c) and an

[[Page 313]]

administration agreement under this paragraph may be consolidated into 
one agreement.
* * * * *
    (d) * * * If the State elects options available under this subpart 
(specified in Secs. 416.2015-416.2035), such options must be specified 
in the administration agreement.
    3. Section 416.2010 is amended by removing paragraph (b), 
redesignating paragraphs (c) through (f) as paragraphs (b) through (e), 
removing ``the Secretary'' and adding ``SSA'' each time it appears in 
paragraphs (a), (d) and (e), and by revising redesignated paragraphs 
(b) and (c) to read as follows:


Sec. 416.2010  Essentials of the administration agreements.

* * * * *
    (b) Administrative costs. (1) SSA shall assess each State that had 
elected Federal administration of optional and/or mandatory State 
supplementary payments an administration fee for administering those 
payments. The administration fee is assessed and paid monthly and is 
derived by multiplying the number of State supplementary payments made 
by SSA on behalf of a State for any month in a fiscal year by the 
applicable dollar rate for the fiscal year. The number of supplementary 
payments made by SSA in a month is the total number of checks issued, 
and direct deposits made, to recipients in that month, that are 
composed in whole or in part of State supplementary funds. The dollar 
rates are as follows:
    (i) For fiscal year 1994, $1.67;
    (ii) For fiscal year 1995, $3.33;
    (iii) For fiscal year 1996, $5.00; and
    (iv) For fiscal year 1997 and each succeeding fiscal year, $5.00, 
or such different rate as determined by SSA to be appropriate for any 
particular State, taking into account the complexity of administering 
the State's supplementary payment program.
    (2) SSA shall charge a State an additional services fee if, at the 
request of the State, SSA agrees to provide the State with additional 
services beyond the level customarily provided in the administration of 
State supplementary payments. The additional services fee shall be in 
an amount that SSA determines is necessary to cover all costs, 
including indirect costs, incurred by the Federal Government in 
furnishing the additional services. SSA is not required to perform any 
additional services requested by a State and may, at its sole 
discretion, refuse to perform those additional services. An additional 
services fee charged a State may be a one-time charge or, if the 
furnished services result in ongoing costs to the Federal Government, a 
monthly or less frequent charge to the State for providing such 
services.
    (c) Agreement period. The agreement period for a State which has 
elected Federal administration of its supplementary payments will 
extend for one year from the date the agreement was signed unless 
otherwise designated. The agreement will be automatically renewed for a 
period of one year unless either the State or SSA gives written notice 
not to renew, at least 90 days before the beginning of the new period. 
For a State to elect Federal administration, it must notify SSA of its 
intent to enter into an agreement, furnishing the necessary payment 
specifications, at least 120 days before the first day of the month for 
which it wishes Federal administration to begin, and have executed such 
agreement at least 30 days before such day.
* * * * *


Sec. 416.2050  [Amended]

    4. Paragraph (b)(1) of section 416.2050 is amended by removing the 
phrase ``(as defined in Sec. 416.2085(e))'' and removing ``the 
Secretary'' and adding ``SSA'' each time it appears.


Sec. 416.2080  [Removed]

    5. Section 416.2080 is removed.


Sec. 416.2082  [Removed]

    6. Section 416.2082 is removed.


Sec. 416.2085  [Removed]

    7. Section 416.2085 is removed.
    8. Section 416.2090 is amended by removing ``the Secretary'' and 
adding ``SSA'' each time it appears in paragraph (c), by removing the 
phrase ``for purposes of Sec. 416.2080'' at the end of paragraph (d), 
and by revising the section heading and paragraphs (a) and (b) to read 
as follows:


Sec. 416.2090  State funds transferred for supplementary payments.

    (a) Payment transfer and adjustment. (1) Any State which has 
entered into an agreement with SSA which provides for Federal 
administration of such State's supplementary payments shall transfer to 
SSA:
    (i) An amount of funds equal to SSA's estimate of State 
supplementary payments for any month which shall be made by SSA on 
behalf of such State; and
    (ii) An amount of funds equal to SSA's estimate of administration 
fees for any such month determined in the manner described in 
Sec. 416.2010(b)(1); and
    (iii) If applicable, an amount of funds equal to SSA's 
determination of the costs incurred by the Federal government in 
furnishing additional services for the State as described in 
Sec. 416.2010(b)(2).
    (2) In order for SSA to make State supplementary payments on behalf 
of a State for any month as provided by the agreement, the estimated 
amount of State funds referred to in paragraph (a)(1)(i) of this 
section, necessary to make those payments for the month, together with 
the estimated amount of administration fees referred to in paragraph 
(a)(1)(ii) of this section, for that month, must be on deposit with SSA 
on the State supplementary payment transfer date, which is the fifth 
Federal business day following the day in the month that the regularly 
recurring monthly supplemental security income payments are issued. The 
additional services fee referred to in paragraph (a)(1)(iii) of this 
section shall be on deposit with SSA on the date specified by SSA. The 
amount of State funds paid to SSA for State supplementary payments and 
the amount paid for administration fees will be adjusted as necessary 
to maintain the balance with State supplementary payments paid out by 
SSA on behalf of the State, and administration fees owed to SSA, 
respectively.
    (b) Accounting of State funds. (1) As soon as feasible, after the 
end of each calendar month, SSA will provide the State with a statement 
showing, cumulatively, the total amounts paid by SSA on behalf of the 
State during the current Federal fiscal year; the fees charged by SSA 
to administer such supplementary payments; any additional services fees 
charged the State; the State's total liability therefore; and the end-
of-month balance of the State's cash on deposit with SSA.
    (2) SSA shall provide an accounting of State funds received as 
State supplementary payments, administration fees, and additional 
services fees, within three calendar months following the termination 
of an agreement under Sec. 416.2005.
    (3) Adjustments will be made because of State funds due and payable 
or amounts of State funds recovered for calendar months for which the 
agreement was in effect. Interest will be incurred by SSA and the 
States with respect to the adjustment and accounting of State 
supplementary payments funds in accordance with applicable laws and 
regulations of the United States Department of the Treasury.
* * * * *
[FR Doc. 97-39 Filed 1-2-97; 8:45 am]
BILLING CODE 4190-29-P