Federal Register / Vol. 62, No. 2 / Friday, January 3, 1997 / Rules and Regulations 309

This incorporation by reference was

approved by the Director of the Federal

Register in accordance with 5 U.S.C. 552(a)

and 1 CFR part 51. Copies may be obtained

from Textron Lycoming, 652 Oliver St.,

Williamsport, PA 17701; telephone (717)

327–7278, fax (717) 327–7022. Copies may be

inspected at the FAA, New England Region,

Office of the Assistant Chief Counsel, 12 New

England Executive Park, Burlington, MA; or

at the Office of the Federal Register, 800

North Capitol Street, NW., suite 700,

Washington, DC.

(f) This amendment becomes effective on

January 21, 1997.

Issued in Burlington, Massachusetts, on

December 26, 1996.

Jay J. Pardee,

Manager, Engine and Propeller Directorate,

Aircraft Certification Service.

[FR Doc. 96–33399 Filed 12–31–96; 12:23

pm]

BILLING CODE 4910–13–U

14 CFR Part 71

[Airspace Docket No. 96–AEA–11]

Amendment to Class E Airspace,

Staunton, VA

AGENCY: Federal Aviation

Administration (FAA) DOT.

ACTION: Final rule.

SUMMARY: This amendment modifies the

Class E airspace at Staunton, VA, to

accommodate a Global Positioning

System (GPS) Standard Instrument

Approach Procedure (SIAP) to Runway

(RWY) 23 at Shenandoah Valley

Regional Airport. This amendment also

corrects the airspace description of the

Staunton, VA Class E airspace are,

published as a Notice of Proposed

Rulemaking in the Federal Register

November 1, 1996 (61 FR 56480). The

intended effect of this action is to

provide adequate controlled airspace for

instrument flight rules (IFR) operations

at the airport.

EFFECTIVE DATE: 0901 UTC, March 27,

1997.

FOR FURTHER INFORMATION CONTACT: Mr.

Francis Jordan, Airspace Specialist,

Operations Branch, AEA–530, Air

Traffic Division, Eastern Region, Federal

Aviation Administration, Federal

Building #111, John F. Kennedy

International Airport, Jamaica, New

York 11430, telephone: (718) 553–4521.

SUPPLEMENTARY INFORMATION:

History

On November 1, 1996, the FAA

proposed to amend Part 71 of the

Federal Aviation Regulations (14 CFR

Part 71) by modifying Class E airspace

at Staunton, VA, (61 FR 56480). This

action would provide adequate Class E

airspace for IFR operations at

Shenandoah Valley Regional Airport.

Interested parties were invited to

participate in this rulemaking

proceeding by submitting written

comments on the proposal to the FAA.

No comments objecting to the proposal

were received.

Class E airspace areas designations are

published in paragraph 6005 of FAA

Order 7400.9D, dated September 4,

1996, and effective September 16, 1996,

which is incorporated by reference in 14

CFR 71.1. The Class E airspace

designation listed in this document will

be published subsequently in the Order.

The Rule

This amendment to Part 71 of the

Federal Aviation Regulations (14 CFR

Part 71) modifies Class E airspace area

at Staunton, VA, to accommodate a GPS

RWY 23 SIAP and for IFR operations at

Shenandoah Valley Regional Airport.

The FAA has determined that this

regulation only involves an established

body of technical regulations for which

frequent and routine amendments are

necessary to keep them operationally

current. Therefore, this regulation—(1)

is not a ‘‘significant regulatory action’’

under Executive Order 12866; (2) is not

a ‘‘significant rule’’ under DOT

Regulatory Policies and Procedures (44

FR 10034; February 26, 1979); and (3)

does not warrant preparation of a

regulatory evaluation as the anticipated

impact is so minimal. Since this is a

routine matter that will only affect air

traffic procedures and air navigation it

is certified that this rule will not have

significant economic impact on a

substantial number of small entities

under the criteria of the Regulatory

Flexibility Act.

List of Subjects in 14 CFR Part 71

Airspace, Incorporation by reference,

Navigation (air).

Adoption of the Amendment

In consideration of the foregoing, the

Federal Aviation Administration

amends 14 CFR Part 71 as follows:

PART 71—[AMENDED]

1. The authority citation for 14 CFR

Part 71 continues to read as follows:

Authority: 49 U.S.C. 106(g), 40103, 40113,

40120; EO 10854, 24 FR 9565, 3 CFR, 1959–

1963 Comp., p. 389; 14 CFR 11.69.

§ 71.1 [Amended]

2. The incorporation by reference in

14 CFR 71.1 of Federal Aviation

Administration Order 7400.9D, Airspace

Designations and Reporting Points,

dated September 4, 1996, and effective

September 16, 1996, is amended as

follows:

Paragraph 6005 Class E airspace areas

extending upward from 700 feet or more

above the surface of the earth.

* * * * *

AEA VA E5 Staunton, VA [Revised]

Shenandoah Valley Regional Airport, VA

(lat. 38°15′50′′N., long. 78°53′47′′W.)

Bridgewater Air Park, VA

(lat. 38°22′00′′N., long. 78°57′37′′W.)

Bridgewater NDB

(lat. 38°21′56′′N., long. 78°57′40′′W.)

STAUT NDB

(lat. 38°12′06′′N., long. 78°57′26′′W.)

That airspace extending upward from 700

feet above the surface within a 10.5–mile

radius of the Shenandoah Valley Regional

Airport and within 8 miles northwest and 4

miles southeast of the Shenandoah Valley

Regional Airport localizer southwest course

extending from the STAUT NDB to 16 miles

southwest of the NDB and within a 6.8–mile

radius of Bridgewater Air Park and within 4

miles northwest and 8 miles southeast of the

208° bearing from the Bridgewater NDB

extending from the NDB to 16 miles

southwest of the NDB.

* * * * *

Issued in Jamaica, New York on December

18, 1996.

James K. Buckles,

Acting Manager, Air Traffic Division, Eastern

Region.

[FR Doc. 97–76 Filed 1–2–97; 8:45 am]

BILLING CODE 4910–13–M

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.

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
310 Federal Register / Vol. 62, No. 2 / Friday, January 3, 1997 / Rules and Regulations

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 pastdue 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
Federal Register / Vol. 62, No. 2 / Friday, January 3, 1997 / Rules and Regulations 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

§§ 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:

• 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;

• 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;

• The modification or expansion of

the existing SSI Quality Assurance

sample that would increase the level of

reporting usually performed by SSA;

• The development and issuance of

notices to SSI/State supplementary

payment recipients in the State beyond

those normally provided;

• 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;

• The provision of more detailed or

frequent accounting data or reports; and

• 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 § 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

§ 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 holdharmless 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 §§ 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

§§ 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

§ 416.2050(b)(1) and § 416.2090 (a)(2)

and (d). Section 416.2010(d) is being

redesignated as § 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
312 Federal Register / Vol. 62, No. 2 / Friday, January 3, 1997 / Rules and Regulations

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:

§ 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

§ 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 § 416.2001(c) and an
Federal Register / Vol. 62, No. 2 / Friday, January 3, 1997 / Rules and Regulations 313

administration agreement under this

paragraph may be consolidated into one

agreement.

* * * * *

(d) * * * If the State elects options

available under this subpart (specified

in §§ 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:

§ 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.

* * * * *

§ 416.2050 [Amended]

4. Paragraph (b)(1) of section 416.2050

is amended by removing the phrase ‘‘(as

defined in § 416.2085(e))’’ and removing

‘‘the Secretary’’ and adding ‘‘SSA’’ each

time it appears.

§ 416.2080 [Removed]

5. Section 416.2080 is removed.

§ 416.2082 [Removed]

6. Section 416.2082 is removed.

§ 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 § 416.2080’’ at the end

of paragraph (d), and by revising the

section heading and paragraphs (a) and

(b) to read as follows:

§ 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 § 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

§ 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 § 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