58970 Federal Register / Vol. 65, No. 192 / Tuesday, October 3, 2000 / Proposed Rules

2. Labeling rule. The Commission

could issue a rule banning PBRs that did

not contain specified warnings and

instructions.

3. Voluntary standard. If the industry

developed, adopted, and substantially

conformed to an adequate voluntary

standard, the Commission could defer to

the voluntary standard in lieu of issuing

a mandatory rule.

E. Existing Standards

The Commission is not aware of any

promulgated state, voluntary, foreign,

international, or other standard dealing

with the described risk of injury or

death. In February 1998, the CPSC staff

requested that ASTM develop a

provisional standard for PBRs to address

the hazard of entrapment-related deaths.

In May 1999, CPSC staff drafted

proposed performance requirements and

submitted them to ASTM for

consideration. As of May 2000, the

ASTM Portable Bed Rail Subcommittee

had not balloted a proposed

performance standard for these

products.

F. Economic Considerations

1. PBR Sales and Numbers Available for

Use

Based on information gathered by the

CPSC Office of Compliance, eleven

firms produced a total of approximately

7.7 million PBRs during the period from

January 1988 to July 14, 1998.

Subsequent sales (1998 and 1999) were

reportedly stable. Thus, based on

available information, approximately

733,000 units are sold per year. The

retail cost of a PBR is in the range of

$15–$30.

No information is available on the

average product life of a PBR. CPSC staff

estimate that for the period of first use

an expected life of two years would be

appropriate. However, some units could

see use with subsequent children so

four years is estimated as a reasonable

upper bound on the expected useful life

of a PBR. Assuming an expected useful

life of four years and stable sales, there

may be as many as approximately 3

million PBRs in use at any one given

time (733,000 PBRs sold per year x 4

years).

2. Suppliers

CPSC staff has identified eleven firms

that marketed PBRs in the United States

during the period 1980–1998. There

may be other manufacturers or

importers that the staff has not

identified.

3. Substitutes

Substitutes for PBRs include beds

equipped with fixed side rails that are

designed for children in the two to five

year old age range or differently

designed PBRs that do not pose an

entrapment hazard.

4. Cost Effectiveness Considerations

The CPSC is aware of 14 deaths since

1990 that are directly attributable to

PBRs, for an average of 1.34 deaths per

year over that period. At a statistical

value of life of $5 million, the aggregate

cost to society from PBR-attributable

deaths is approximately $6.7 million

annually. This estimate does not

account for the costs associated with

non-fatal PBR-related injuries.

Using the death rate and annual sales

estimates noted above, CPSC staff

calculate that the expected societal cost

of those deaths over the life of a PBR is

approximately $9 per PBR. Thus, if

product improvements were 100%

effective in preventing the predicted

deaths, a cost per bed rail for the

improvements of $9 would be

economically justified. (The $9 per bed

rail societal cost represents between

30% and 60% of the retail price of a

PBR.)

G. Solicitation of Information and

Comments

This ANPR is the first step of a

proceeding that could result in a

mandatory rule for PBRs to address the

described risk of injury or death. All

interested persons are invited to submit

to the Commission their comments on

any aspect of the alternatives discussed

above. In particular, CPSC solicits the

following additional information:

1. The models and numbers of PBRs

produced for sale in the U.S. each year

from 1990 to the present;

2. The names and addresses of

manufacturers and distributors of PBRs;

3. The expected useful life of PBRs;

4. Comparisons of the utility obtained

from PBRs versus any available

substitute products;

5. The number of persons injured or

killed by the hazards associated with

PBRs;

6. The circumstances under which

these injuries and deaths occur,

including the ages of the victims;

7. An explanation of designs that

could be adapted to PBRs to reduce the

described risk of injury;

8. Physical or performance

characteristics of the product that could

or should not be used to define which

products might be subject to a rule;

9. The costs to manufacturers

involved in either redesigning PBRs to

remove the risk or removing PBRs from

the market;

10. Other information on the potential

costs and benefits of potential rules;

11. Steps that have been taken by

industry or others to reduce the risk of

injury from the product;

12. The likelihood and nature of any

significant economic impact of a rule on

small entities;

13. The costs and benefits of

mandating a banning, labeling, or

instructions requirement.

Also, in accordance with section 3(f)

of the FHSA, the Commission solicits:

1. Written comments with respect to

the risk of injury identified by the

Commission, the regulatory alternatives

being considered, and other possible

alternatives for addressing the risk.

2. Any existing standard or portion of

a standard which could be issued as a

proposed regulation.

3. A statement of intention to modify

or develop a voluntary standard to

address the risk of injury discussed in

this notice, along with a description of

a plan (including a schedule) to do so.

Comments should be mailed,

preferably in five copies, to the Office of

the Secretary, Consumer Product Safety

Commission, Washington, DC 20207–

0001, or delivered to the Office of the

Secretary, Consumer Product Safety

Commission, Room 502, 4330 East-West

Highway, Bethesda, Maryland 20814;

telephone (301) 504–0800. Comments

also may be filed by telefacsimile to

(301) 504–0127 or by email to cpscos@cpsc.gov. Comments should be

captioned ‘‘ANPR for Portable Bed

Rails.’’ All comments and submissions

should be received no later than

December 4, 2000.

Dated: September 27, 2000.

Todd A. Stevenson,

Deputy Secretary, Consumer Product Safety

Commission.

[FR Doc. 00–25279 Filed 10–2–00; 8:45 am]

BILLING CODE 6355–01–P

SOCIAL SECURITY ADMINISTRATION

20 CFR Parts 404 and 416

RIN 0960–AF13

Collection of Supplemental Security

Income (SSI) Overpayments From

Social Security Benefits

AGENCY: Social Security Administration.

ACTION: Proposed rules.

SUMMARY: We propose to revise our

regulations dealing with the recovery of

overpayments under the Supplemental

Security Income (SSI) program under

title XVI of the Social Security Act (the

Act). Under the proposed revisions, we

would modify our regulations to permit

SSA to recover SSI overpayments by

Federal Register / Vol. 65, No. 192 / Tuesday, October 3, 2000 / Proposed Rules 58971

adjusting the amount of social security

benefits payable to the individual under

title II of the Act. This collection

practice would be limited to individuals

who are not currently eligible to receive

any cash payments under any provision

of title XVI or State supplementary cash

payments that we administer. Also, the

amount of the title II benefits withheld

in a month to recover the title XVI

overpayment would not exceed 10

percent of the amount payable under

title II unless the overpaid person

requests us to withhold a higher amount

or the overpaid person (or his or her

spouse) willfully misrepresented or

concealed material information in

connection with the overpayment. In a

case involving willful misrepresentation

or concealment, the entire title II benefit

amount will be withheld to recover the

overpayment. These revisions would

permit SSA to recover SSI

overpayments from title II benefits

payable to the overpaid individual

when SSI cash benefits are not payable.

These revisions are necessary to

implement section 1147 of the Act.

DATES: To be sure your comments are

considered, we must receive them no

later than December 4, 2000.

ADDRESSES: Comments should be

submitted in writing to the

Commissioner of Social Security, P.O.

Box 1585, Baltimore, Maryland 21235–

1585, sent by telefax to (410) 966–2830,

sent by e-mail to regulations@ssa.gov or

delivered to the Office of Process and

Innovation Management, Social Security

Administration, 2109 West Low Rise

Building, 6401 Security Boulevard,

Baltimore, Maryland 21235–6401.

FOR FURTHER INFORMATION CONTACT:

Robert Augustine, Social Insurance

Specialist, Office of Process and

Innovation Management, Social Security

Administration, 6401 Security

Boulevard, Baltimore, Maryland 21235–

6401, (410) 966–5121 or TTY (410) 966–

5609 for information about these rules.

For information on eligibility or

claiming benefits, call our national tollfree number, 1–800–772–1213 or TTY

1–800–325–0778.

SUPPLEMENTARY INFORMATION: Under the

law in effect prior to the enactment of

Pub. L. 105–306 on October 28, 1998, if

an individual received an SSI

overpayment and failed to refund the

full overpayment amount, SSA was

authorized to recover the overpayment

by adjusting future SSI payments due

the recipient or his or her eligible

spouse. If the overpaid person was not

receiving SSI payments but was entitled

to benefits under title II of the Act, he

or she generally could elect voluntarily

to have the overpayment recovered by

adjusting the title II benefits. If an

overpaid individual was no longer

entitled to SSI payments, we could refer

the overpayment to the Department of

the Treasury for offset against any

Federal tax refund due that individual.

Section 8 of Pub. L. 105–306 added

new section 1147 to the Act, permitting

SSA to use an additional collection tool

to recover SSI overpayments. Under

section 1147, SSA may recover SSI

overpayments by adjusting the amount

of any benefits payable to the overpaid

individual under title II of the Act,

without the consent of the individual.

Throughout the remainder of this

preamble, this type of overpayment

recovery is referred to as ‘‘cross-program

recovery.’’

Section 1147 limits the use of crossprogram recovery to SSI overpayments

made to individuals who are not

currently eligible to receive cash

payments, including State

supplementary payments, under title

XVI or under section 212(b) of Pub. L.

93–66. Also, section 1147 limits the

amount of the SSI overpayment that

may be recovered in any month through

cross-program recovery to 10 percent of

the benefit amount payable under title

II in any month, unless the overpaid

person requests that SSA withhold a

higher amount or unless the overpaid

person or his or her spouse willfully

misrepresented or concealed material

information in connection with the

overpayment. If there is willful

misrepresentation or concealment,

section 1147 permits SSA to recover the

overpayment by withholding 100

percent of the title II benefit payable.

Explanation of Proposed Changes

We propose to add to our regulations

new § 416.572 setting forth our rules on

cross-program recovery. This new

section would:

• Define certain terms;

• Explain the conditions for imposing

cross-program recovery;

• Explain the rights of the overpaid

individual to request review of our

determination that he or she still owes

us the overpayment balance; and

• Explain the rules for determining

the amount to be withheld from the

individual’s title II benefits.

Specifically, in paragraph (a) of

proposed § 416.572, we would define

the following terms:

• ‘‘Cross-program recovery’’ would be

defined as the process we will use to

collect SSI overpayments by adjusting

title II benefits payable in a month.

• ‘‘Benefits payable in a month’’

would be defined as the amount of title

II benefits a person would actually

receive in a given month. Under our

proposed definition, ‘‘benefits payable

in a month’’ would include any past due

benefits a person would receive, but

would not include any amounts

withheld from the person’s benefits

under the deductions or reductions

listed in § 404.401(a) or (b) of our

regulations. The proposed definition

also includes an example of how we

determine the ‘‘benefits payable in a

month.’’

• ‘‘Not currently eligible for SSI cash

benefits’’ would mean that a person is

receiving no cash payments, including

State supplementary payments, under

title XVI of the Act or under section

212(b) of Pub. L. 93–66.

In paragraph (b) of proposed

§ 416.572, we would explain that we

may use cross-program recovery to

collect SSI overpayments if the overpaid

person is not currently receiving SSI

cash benefits and is receiving benefits

under title II of the Act. Thus, if a

person whose title II benefits are being

adjusted to recover an SSI overpayment

again becomes eligible for SSI benefits,

cross-program recovery would end with

the month in which SSI cash benefits

resume. When SSI benefits become

payable to the overpaid person, we

would resume the monthly adjustment

of SSI payments to collect the

overpayment. We would not start crossprogram recovery if the overpaid person

is refunding the title XVI overpayment

by regular monthly installments or we

are recovering a title II overpayment by

withholding that person’s title II

benefits.

Paragraph (c) of proposed § 416.572

would list the information that we

would include in the notice we would

send to a person whose title II benefits

would be subject to cross-program

recovery. The notice would inform the

person that he or she owes a specific SSI

overpayment balance, that we will be

using cross-program recovery to collect

that balance and that we will withhold

a specific amount from the title II

benefits. The notice would state that the

person may ask us to review our

determination that he or she still owes

the overpayment balance. Unless the

overpaid person or that person’s spouse

willfully misrepresented or concealed

material information in connection with

the overpayment, the notice would also

state that the person may request that

we withhold from the title II benefits a

different amount than the amount stated

in the notice.

Paragraph (d) of proposed § 416.572

would explain that we will begin to

withhold no sooner than 30 days after

the date of the notice. If the individual

pays the entire overpayment balance

within that 30-day period, we will not

58972 Federal Register / Vol. 65, No. 192 / Tuesday, October 3, 2000 / Proposed Rules

impose cross-program recovery. If

within the 30-day period the person

asks us to review the determination that

he or she still owes us the overpayment

balance, we will not begin crossprogram recovery until we review the

matter and notify the person of our

decision. If within the 30-day period,

the person requests that we withhold a

different amount, we will not begin

cross-program recovery until we

determine the amount we will withhold.

Paragraph (e) of proposed § 416.572

would explain that we will generally

collect the overpayment at the rate of 10

percent of the title II benefits payable in

any month. However, we would collect

at a different rate if the person requests,

and we approve, a different rate of

withholding or if the overpaid person

(or his or her spouse) willfully

misrepresented or concealed material

information in connection with the

overpayment. If there has been willful

misrepresentation or concealment of

material information in connection with

the overpayment, we would recover the

overpayment by withholding at the rate

of 100 percent of the title II benefits

payable. We would not collect at a

lesser rate.

Other Revisions

We propose to revise § 404.401(c) to

explain that we may adjust a person’s

title II benefits to recover an SSI

overpayment using cross-program

recovery.

We propose to revise § 416.570 to

eliminate the reference to voluntary

withholding of an SSI overpayment

from title II benefits. Under section 1147

of the Act, we now have authority to use

cross-program recovery to recover title

XVI overpayments without the consent

of the overpaid person.

Clarity of This Regulation

Executive Order (E.O.) 12866 and the

President’s memorandum of June 1,

1998, require each agency to write all

rules in plain language. In addition to

your substantive comments on these

proposed rules, we invite your

comments on how to make these

proposed rules easier to understand.

For example:

• Have we organized the material to

suit your needs?

• Are the requirements in the rules

clearly stated?

• Do the rules contain technical

language or jargon that is unclear?

• Would a different format (grouping

and order of sections, use of headings,

paragraphing) make the rules easier to

understand?

• Would more (but shorter) sections

be better?

• Could we improve clarity by adding

tables, lists, or diagrams?

• What else could we do to make the

rules easier to understand?

Electronic Version

The electronic file of this document is

available on the date of publication in

the Federal Register on the Internet site

for the Government Printing Office:

http://www.access.gpo.gov/suldocs/

aces/aces140.html. It is also available on

the Internet site for SSA (i.e., SSA

Online): http://www.ssa.gov/.

Regulatory Procedures

Executive Order 12866

We have consulted with the Office of

Management and Budget (OMB) and

determined that these proposed

regulations meet the criteria for a

significant regulatory action under

Executive Order 12866. Thus, they are

subject to OMB review. However, the

amounts of the savings or costs involved

do not cross the threshold for an

economically significant regulation as

defined in E.O. 12866. The program

savings from increased collections as a

result of implementation of section 8 of

Pub. L. 105–306 are $15 million in each

of fiscal years (FY) 2001 through 2003;

$40 million in FY 2004; and $30 million

in FY 2005 for a total increase of $115

million over 5 years. The administrative

savings estimate for FYs 2001 through

2005 is less than $5 million.

Regulatory Flexibility Act

We certify that these proposed rules

will not have a significant economic

impact on a substantial number of small

entities because they affect only

individuals. Thus, a regulatory

flexibility analysis as provided in the

Regulatory Flexibility Act, as amended,

is not required.

Paperwork Reduction Act

These proposed regulations would

impose no new reporting or

recordkeeping requirements requiring

OMB clearance. In fact, these proposed

rules would decrease the paperwork

burden on the public by 833 burden

hours per year. This is because, under

the proposed rules, the public would no

longer complete Form SSA–730–U2

(Request To Have Supplemental

Security Income Overpayment Withheld

From My Social Security Benefits)

which provides SSA with the overpaid

person’s request that SSA collect a title

XVI overpayment from the person’s title

II benefits.

(Catalog of Federal Domestic Assistance

Program Nos. 96.001, Social SecurityDisability Insurance; 96.006, Supplemental

Security Income)

List of Subjects

20 CFR Part 404

Administrative practice and

procedure, Blind, Disability benefits,

Old-Age, Survivors and Disability

Insurance, Reporting and recordkeeping

requirements, Social Security.

20 CFR Part 416

Administrative practice and

procedure, Aged, Blind, Disability

benefits, Public assistance programs,

Reporting and recordkeeping

requirements, Supplemental Security

Income (SSI).

Dated: June 9, 2000.

Kenneth S. Apfel,

Commissioner of Social Security.

For the reasons set forth in the

preamble, we propose to amend subpart

E of part 404 and subpart E of part 416

of Chapter III of Title 20, Code of

Federal Regulations as follows:

PART 404—FEDERAL OLD-AGE,

SURVIVORS AND DISABILITY

INSURANCE (1950– )

1. The authority citation for subpart E

of part 404 is revised to read as follows:

Authority: Secs. 202, 203, 204(a) and (e),

205(a) and (c), 222(b), 223(e), 224, 225,

702(a)(5) and 1147 of the Social Security Act

(42 U.S.C. 402, 403, 404(a) and (e), 405(a) and

(c), 422(b), 423(e), 424a, 425, 902(a)(5) and

1320b–17).

2. Section 404.401 is amended by

revising paragraph (c) to read as follows:

§ 404.401 Deduction, reduction, and

nonpayment of monthly benefits or lumpsum death payments.

* * * * *

(c) Adjustments. We may adjust your

benefits if you receive more or less than

the correct amount due under title II of

the Act. We may also adjust your

benefits if you received more than the

correct amount due under title XVI of

the Act. For the title II rules on

adjustments to your benefits, see

subpart F of this part. For the rules on

adjusting your benefits to recover title

XVI overpayments, see § 416.572 of this

chapter.

* * * * *

PART 416—SUPPLEMENTAL

SECURITY INCOME FOR THE AGED,

BLIND, AND DISABLED

3. The authority citation for subpart E

of part 416 is revised to read as follows:

Authority: Secs. 702(a)(5), 1147, 1601,

1602, 1611(c) and (e), and 1631(a)–(d) and (g)

of the Social Security Act (42 U.S.C.

902(a)(5), 1320b–17, 1381, 1381a, 1382(c)

and (e), and 1383(a)–(d) and (g)); 31 U.S.C.

3720A.

Federal Register / Vol. 65, No. 192 / Tuesday, October 3, 2000 / Proposed Rules 58973

4. Section 416.570 is amended by

revising the third sentence to read as

follows:

§ 416.570 Adjustment-general rule.

* * * Absent a specific request from

the person from whom recovery is

sought, no overpayment made under

title II or XVIII of the Act will be

recovered by adjusting SSI benefits.

***

5. Section 416.572 is added to read as

follows:

§ 416.572 Are title II benefits subject to

adjustment to recover title XVI

overpayments?

(a) Definitions—(1) Cross-program

recovery. Cross-program recovery is the

process that we will use to collect title

XVI overpayments from benefits payable

to you in a month under title II of the

Social Security Act.

(2) Benefits payable in a month. For

purposes of this section, benefits

payable in a month means the amount

of title II benefits you would actually

receive in that month. It includes your

monthly benefit and any past due

benefits after any reductions or

deductions listed in § 404.401(a) and (b)

of this chapter.

Example: A person is entitled to monthly

title II benefits of $1000. The first benefit

payment the person would receive includes

past-due benefits of $1000. The amount of

benefits payable in that month for purposes

of cross-program recovery is $2000. The

monthly benefit payable for subsequent

months is $1000. If $200 would be deducted

from the person’s title II benefits in a later

month because of excess earnings as

described in §§ 404.415 and 404.416 of this

chapter, the benefit payable in that month for

purposes of cross-program recovery would be

$800.

(3) Not currently eligible for SSI cash

benefits. This means that a person is not

receiving any cash payment, including

State supplementary payments, under

any provision of title XVI of the Act or

under section 212(b) of Pub. L. 93–66

(42 U.S.C. 1382 note).

(b) When we may collect title XVI

overpayments using cross-program

recovery. (1) We may use cross-program

recovery to collect a title XVI

overpayment you owe if:

(i) You are not currently eligible for

SSI cash benefits, and

(ii) You are receiving title II benefits.

(2) We will not start cross-program

recovery if:

(i) You are refunding your title XVI

overpayment by regular monthly

installments, or

(ii) We are recovering a title II

overpayment by adjusting your title II

benefits under § 404.502 of this chapter.

(c) Notice you will receive. Before we

collect an overpayment from you using

cross-program recovery, we will send

you a written notice that tells you the

following information:

(1) We have determined that you owe

a specific overpayment balance that can

be collected by cross-program recovery;

(2) We will withhold a specific

amount from the title II benefits payable

to you in a month (see paragraph (e) of

this section);

(3) You may ask us to review this

determination that you still owe this

overpayment balance; and

(4) You may request that we withhold

a different amount (the notice will not

include this information if paragraph

(e)(2) of this section applies).

(d) When we will begin cross-program

recovery. We will begin collecting the

overpayment balance by cross-program

recovery no sooner than 30 calendar

days after the date of the notice

described in paragraph (c) of this

section.

(1) If within that 30-day period you

pay us the full overpayment balance

stated in the notice, we will not begin

cross-program recovery.

(2) If within that 30-day period you

ask us to review our determination that

you still owe us this overpayment

balance, we will not begin crossprogram recovery before we review the

matter and notify you of our decision in

writing.

(3) If within that 30-day period you

ask us to withhold a different amount

than the amount stated in the notice, we

will not begin cross-program recovery

until we determine the amount we will

withhold. This paragraph does not

apply when paragraph (e)(2) of this

section applies.

(e) Rate of withholding. (1) We will

collect the overpayment at the rate of 10

percent of the title II benefits payable to

you in any month, unless:

(i) You request and we approve a

different rate of withholding, or

(ii) You or your spouse willfully

misrepresented or concealed material

information in connection with the

overpayment.

(2) If you or your spouse willfully

misrepresented or concealed material

information in connection with the

overpayment, we will collect the

overpayment at the rate of 100 percent

of the title II benefits payable in any

month. We will not collect at a lesser

rate. (See § 416.571 for what we mean

by concealment of material

information.)

[FR Doc. 00–25184 Filed 10–2–00; 8:45 am]

BILLING CODE 4191–02–U

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG–108522–00]

RIN 1545–AY25

Recognition of Gain on Certain

Transfers to Certain Foreign Trusts

and Estates; Correction

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Correction to notice of proposed

rulemaking.

SUMMARY: This document contains a

correction to a notice of proposed

rulemaking that was published in the

Federal Register on Monday, August 7,

2000 (65 FR 48198) relating to the

recognition of gain on certain transfers

to certain foreign trusts and estates.

FOR FURTHER INFORMATION CONTACT:

Karen A. Rennie Quarrie at (202) 622–

3880 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The notice of proposed rulemaking

that is the subject of this correction is

under section 684 of the Internal

Revenue Code.

Need for Correction

As published, the notice of proposed

rulemaking contains errors that may

prove to be misleading and are in need

of clarification.

Correction of Publication

Accordingly, the publication of the

notice of proposed rulemaking (REG–

108522–00), that was the subject of FR

Doc. 00–19896, is corrected as follows:

§ 1.684–3 [Corrected]

On page 48202, column 1, § 1.684–

3(f), the first line of Example 1, the

language ‘‘Example 1. Transfer to owner

trust. In’’ is corrected to read ‘‘Example

1. Transfer to grantor trust. In’’.

Cynthia E. Grigsby,

Chief, Regulations Unit, Office of Special

Counsel (Modernization and Strategic

Planning).

[FR Doc. 00–25290 Filed 10–2–00; 8:45 am]

BILLING CODE 4830–01–P