`[Federal Register Volume 63, Number 153 (Monday, August 10, 1998)]
[Proposed Rules]
[Pages 42601-42607]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-20964]


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SOCIAL SECURITY ADMINISTRATION

20 CFR Part 416

[Regulations No. 16]
RIN 0960-AE71


Effective Date of Application for Supplemental Security Income 
(SSI) Benefits

AGENCY: Social Security Administration (SSA).

ACTION: Proposed rules.

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SUMMARY: We propose to revise our regulations to reflect and implement 
section 204 of Pub. L. 104-193, the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996. Section 204 changed the date an 
SSI application is effective so that the earliest month for which 
benefits can be paid is the month following the month in which the 
application is filed. Section 204 also made related changes concerning 
emergency advance payments (EAPs), interim assistance reimbursements 
(IARs) and in the definition of ``eligible spouse''.

DATES: To be sure that your comments are considered, we must receive 
them no later than October 9, 1998.

ADDRESSES: Comments should be submitted in writing to the Commissioner 
of Social Security, P.O. Box 1585, Baltimore, MD 21235, sent by telefax 
to (410) 966-2830, sent by e-mail to ``[email protected],'' or 
delivered to the Office of Process and Innovation Management, Social 
Security Administration, L2109 West Low Rise, 6401 Security Boulevard, 
Baltimore, MD 21235, between 8:00 a.m. and 4:30 p.m. on regular 
business days. Comments received may be inspected during these same 
hours by making arrangements with the contact person shown below.

FOR FURTHER INFORMATION CONTACT: Loretta Tabacca, Social Insurance 
Specialist, Office of Program Benefits Policy, Division of Eligibility 
and Enumeration Policy, Social Security Administration, 6401 Security 
Boulevard, Baltimore, MD 21235, (410) 965-9881.

SUPPLEMENTARY INFORMATION:

Background

    These proposed regulations would reflect and implement section 204 
of Pub. L. 104-193, the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996, which applies to applications for SSI 
benefits filed on or after August 22, 1996.
    Section 204(a), which amended section 1611(c)(7)(A) and (B) of the 
Social Security Act (the Act), changed the effective date of an SSI 
application. For applications for SSI benefits filed on or after August 
22, 1996, the effective date of an SSI application is the first day of 
the month following the later of: the date the application is filed; 
or, the date the individual becomes eligible for such benefits with 
respect to such application. The change in law affects the point at 
which SSI benefits can begin. Before the change in law, an individual 
could receive SSI benefits for the month in which an application for 
benefits was filed, and the amount of benefits for that month was 
prorated based on the number of days in that month that the individual 
met all factors of eligibility. Under section 204(a), the first month 
for which benefits can be paid is the month following the month that 
all eligibility requirements, including filing an application, are met. 
In view of this era of heightened fiscal responsibility, Congress 
enacted the change to the SSI application effective date, which has a 
minimal (less than 30 days of benefits) effect on an individual's 
benefit amount.
    Effective August 22, 1996, section 204(b) of Pub. L. 104-193, which 
amended section 1631(a)(4)(A) of the Act, made some changes to the EAP 
process. It added the authority to make EAPs in the month of 
application to individuals who would be at least presumptively eligible 
for benefits the month following the date that the application is 
filed. Section 204(b) also provided that these EAPs are to be repaid 
through proportional deductions in SSI benefit payments over a period 
of not more than 6 months.
    Since January 1974, when it first became effective, title XVI of 
the Act has authorized issuance of EAPs in situations of marked 
financial need among new claimants. These EAPs are expedited payments 
of funds based upon an applicant's status as presumptively meeting all 
of the requirements for eligibility. These EAPs will continue to be 
recovered from any retroactive SSI benefit payments.
    Section 204(c)(1) of Pub. L. 104-193, which amended section 1614(b) 
of the Act, made a conforming change in the definition of an ``eligible 
spouse'' to conform to the change made by section 204(a) with respect 
to the effective date of an application. Under this change, in order 
for couple computation rules to apply in determining the amount of 
benefits to be paid in the first month that both members of a couple 
are eligible for payment of SSI benefits, the couple must be living in 
the same household on the first day of the month following the date the 
application for benefits was filed. Prior to this change, the couple 
had to be living in the same household on the date the application was 
filed in order for the couple computation rules to apply to the first 
month both members of the couple were eligible for payment.
    Section 204(c)(2) also made a conforming amendment to section 
1631(g)(3) of the Act concerning reimbursement of States under IAR 
agreements. Consistent with the change made by section 204(a) in the 
effective date of an application for SSI benefits, States may continue 
to be reimbursed for interim assistance furnished for meeting basic 
needs during the period beginning with the month the individual becomes 
eligible for payment of SSI benefits.

Explanation of Revisions

    To reflect and implement section 204(a), we propose amending 
Secs. 416.200, 416.203, 416.211, 416.262, 416.305, 416.315, 416.330, 
416.335, 416.420, 416.421, 416.501, 416.502, 416.1160, 416.1163, 
416.1165, 416.1245 and 416.1335 as follows:
    We propose to revise Secs. 416.200 and 416.203 to reflect the 
statutory change made by section 204(a) under which the first month for 
which an individual who meets all the basic eligibility requirements 
listed in Sec. 416.202 may receive SSI benefits is the month after the 
month he or she meets these eligibility requirements (see 
Sec. 416.501). An individual cannot become eligible for payment of SSI 
benefits until the month after the month in which the individual first 
becomes eligible for SSI benefits. We also propose to amend the last 
sentence of Sec. 416.200 to update a cross-reference.
    We also propose conforming amendments to paragraph (a)(1) of 
Sec. 416.211. As a result of the statutory change, an individual who is 
a resident of a public institution at the time he or she first applies 
for and meets all other eligibility factors for SSI benefits, will be 
ineligible for payment of SSI benefits until the first day of the month 
following the day of the individual's release from the institution.
    We propose to revise Sec. 416.262 to clarify, consistent with 
section 1619 of

[[Page 42602]]

the Act, that in order for an individual to be eligible for special SSI 
cash benefits, the individual must have been eligible for payment of a 
regular SSI benefit in a prior month. As noted previously, the earliest 
month in which an individual can become eligible for payment of SSI 
benefits is the month after the month in which the application for 
benefits was filed.
    We propose to revise Sec. 416.305(a) to clarify that filing an 
application assures that the individual receives benefits for any 
months that individual is determined eligible to receive payment. This 
clarification reflects the statutory change which ended payment of 
benefits for the first month in which an individual becomes eligible 
for benefits.
    We also propose to revise the example in paragraph (c) of 
Sec. 416.315 to illustrate that the earliest month for which benefits 
can be paid is the month following the month in which the individual 
first becomes eligible for benefits.
    We also propose an amendment to our regulations at Sec. 416.330(a) 
to reflect the statutory change affecting the first month for which 
benefits can be paid. We propose to revise Sec. 416.330(a) to state 
that when an individual files an application before all the 
requirements for eligibility are met, the earliest month for which the 
application can be effective for payment is the month following the 
month that all requirements are met. We also propose to delete the 
language describing proration of benefits in the first month of 
eligibility to reflect the fact that section 204 ended such proration. 
In addition, we also propose to amend Sec. 416.330(b) to state that if 
an individual meets all the requirements for eligibility after the 
period for which the application was in effect and a new application is 
filed, the earliest month for which benefits can be paid is the first 
month following the month that all the eligibility requirements are met 
based on the filing of the new application.
    We propose to revise Sec. 416.335 to state that when an individual 
files an application in or after the month all the other requirements 
for eligibility are met, the application cannot be the basis for 
payment before the first day of the month following the month that the 
application was filed. We also propose to delete the language that 
pertains to proration of benefits in the first month of eligibility.
    We also propose to amend Secs. 416.420 and 416.421 to clearly state 
the different policies on when SSI benefits can be paid based on the 
filing of an application and a resumption of benefits after at least 
one month of ineligibility. The change in law which is effective for 
applications filed on or after August 22, 1996, effectively ends the 
proration of SSI benefits based on the day of the month that an 
application was filed. Proration of benefits continues to apply to 
resumption of benefits in posteligibility situations.
    Additionally, we propose to revise Secs. 416.501 and 416.502 to 
clarify that when an individual files an application for SSI benefits, 
the earliest month for which payment can be made is the month following 
the month of initial eligibility. When eligibility is reestablished 
after at least one month of ineligibility, benefits can be prorated for 
the first month of reeligibility.
    We propose to revise Secs. 416.1160(b)(2), 416.1163(e), and 
416.1165(f) to clarify that, in initial claims situations, the first 
month in which deeming applies for purposes of determining the amount 
of a benefit is the month an individual is first eligible for payment. 
These revisions conform to the legislative change affecting the date an 
SSI application is effective for payment. We also propose to correct 
the cross-references in Sec. 416.1166(d) to accurately reflect the 
current reference in the regulations.
    We propose to revise Sec. 416.1245(b) to conform to the legislative 
change affecting the date an individual can receive SSI payments, 
specifically conditional benefits, following the application effective 
date. As a result of the legislative change, the months of payment 
eligibility may not coincide with the months of the conditional 
benefits disposal period. Additionally, the payment period, and thus 
the resulting overpayment, may be different for initial claims and 
posteligibility situations. Therefore, we are eliminating references to 
9 months of conditional benefit payments and revising the regulations 
to refer only to benefits received during the conditional benefits 
period.
    Finally, in order to implement section 204(a), we propose to amend 
Sec. 416.1335 to reflect the fact that, as a result of the statutory 
change, a period of benefit suspension can begin when an individual is 
no longer eligible for SSI benefits even though that person had not 
received any SSI benefits because the person's only month of 
eligibility was prior to the effective date of the application.
    To reflect the provisions of section 204(b) which expanded the 
authority of SSA to issue EAPs, we propose to amend Sec. 416.520(a), 
(b), and (c) to clarify that we have the authority to issue an EAP in 
the month that an application is filed even though that month is prior 
to the effective date of the application and prior to when the 
individual can be eligible to receive SSI benefits. We also propose to 
revise Sec. 416.520(d) to reflect the amendment made by section 204(b) 
providing that an EAP shall be repaid through proportional reduction in 
benefits payable over a period of not more than 6 months. Consistent 
with our longstanding policy and this new statutory provision, if past-
due SSI benefits awarded to the individual exceed the amount of the 
EAP, the entire amount of the EAP will be deducted from the past-due 
benefits. Finally, we propose to amend the definition of 
``presumptively eligible'' in Sec. 416.520(b)(4) to clarify that all of 
the requirements for eligibility are involved.
    To reflect the changes made by section 204(c)(1), we propose to 
revise the definition of ``eligible spouse'' in Sec. 416.1801(c). The 
law changed the point at which SSA determines whether an eligible 
individual and eligible spouse are an eligible couple. Eligible couple 
determinations in these situations previously were made when an 
application was filed but now will be made as of the first day of the 
month following the date the application is filed. In addition, we 
propose to amend Sec. 416.1801(c) to correct an erroneous cross-
reference in the definition of ``spouse''.
    To reflect the conforming amendment made by section 204(c)(2), we 
propose to amend the definition of interim assistance in Sec. 416.1902 
to state that interim assistance begins with the first month of 
eligibility for payment of SSI benefits.

Electronic Versions

    The electronic file of this document is available on the Federal 
Bulletin Board (FBB) at 9 a.m. on the date of publication in the 
Federal Register. To download the file, modem dial (202) 512-1387. The 
FBB instructions will explain how to download the file and the fee. 
This file is in WordPerfect and will remain on the FBB during the 
comment period.

Regulatory Procedures

Regulatory Flexibility Act

    We certify that these proposed regulations 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.

[[Page 42603]]

Executive Order 12866

    These proposed rules reflect and implement the provisions of 
sections 204(a), (b) and (c) of Pub. L. 104-193. The Office of 
Management and Budget (OMB) has reviewed these proposed rules and 
determined that they meet the criteria for an economically significant 
regulatory action under Executive Order 12866. These proposed 
regulations also meet the definition of a ``major rule'' under 5 U.S.C. 
801 ff., and the following cost and benefit assessment fulfills the 
requirements of those provisions as well. In addition, SSA has 
determined, as required under the aforementioned statute, that these 
proposed regulations do not create any unfunded mandates for State or 
local entities pursuant to sections 202-205 of the Unfunded Mandates 
Act of 1995.

Projected Costs

    Under the statutory change, individuals who file an SSI application 
on or after August 22, 1996 cannot receive SSI benefits for the first 
month of eligibility; therefore, benefits will begin later. The cost to 
individuals is illustrated in the following example: Assuming section 
204(a) had not been enacted, an individual who filed an SSI application 
on August 22, 1996, having met all the requirements for eligibility in 
that month, would have received an August 1996 SSI benefit amount of 
$121.80. (The SSI benefit amount was computed using the national 
average SSI monthly payment amount for the total SSI population for 
August 1996 of $377.58 and prorating that amount for 10 days (August 22 
through August 31).) Since section 204(a) was enacted, the same 
individual would have received no payment for August 1996, the first 
month of eligibility. The cost to this individual would be $121.80.

Potential Benefits

    Since these proposed rules reflect statutory changes which delay 
the effective date of payment of SSI benefits, we project that there 
will be reduced outlays from general revenues.

Program Costs

    There are no program costs associated with these proposed rules.

Program Savings

    It is estimated that due to the legislation there will be reduced 
program outlays resulting in the following savings (in millions of 
dollars) to the SSI program ($780 million in a 6 year period):

----------------------------------------------------------------------------------------------------------------
     FY1998           FY1999          FY2000          FY2001          FY2002          FY2003           Total    
----------------------------------------------------------------------------------------------------------------
$120...........           $125            $130            $130            $135            $140            $780  
----------------------------------------------------------------------------------------------------------------

    There are no costs or savings to the Medicaid program as a result 
of the change to the application effective date. Though the Health Care 
Financing Administration (HCFA) had initially projected Medicaid 
savings from this provision due to the loss of coverage resulting from 
the elimination of payment of SSI benefits for the month in which the 
SSI application is filed, subsequent manual guidance from HCFA allowed 
States to provide Medicaid coverage during this month (as well as the 
usual 3-month retroactive period). Consequently, the initial estimated 
savings have been eliminated and, overall, there is no Medicaid cost 
effect.

Administrative Costs

    We anticipate negligible administrative costs (i.e., less than $1 
million and 30 workyears). The administrative costs are the net of 
additional workyears related to systems changes to reflect the point at 
which benefits can now begin.

Administrative Savings

    We do not anticipate any administrative savings to result from 
these proposed regulations since eligibility must be determined from 
the filing date as was the case before the effective date of these 
proposed rules.

Policy Alternatives

    There are no discretionary policies involved in implementing 
section 204 (a), (b) and (c). Therefore, we find no need to consider 
alternative policies.

Paperwork Reduction Act

    These proposed regulations impose no reporting/recordkeeping 
requirements necessitating clearance by OMB.

(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 (SSI).

    Dated: May 15, 1998.
Kenneth S. Apfel,
Commissioner of Social Security.
    For the reasons set forth in the preamble, we are proposing to 
amend subparts B, C, D, E, K, L, M, R, and S of part 416 of chapter III 
of title 20 of the Code of Federal Regulations as set forth below.

PART 416--SUPPLEMENTAL SECURITY INCOME FOR THE AGED, BLIND, AND 
DISABLED

Subpart B--[Amended]

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

    Authority: Secs. 702(a)(5), 1110(b), 1602, 1611, 1614, 1615(c), 
1619(a), 1631, and 1634 of the Social Security Act (42 U.S.C. 
902(a)(5), 1310(b), 1381a, 1382, 1382c, 1382d(c), 1382h(a), 1383, 
and 1383c); secs. 211 and 212, Pub. L. 93-66, 87 Stat. 154 and 155 
(42 U.S.C. 1382 note); sec. 502(a), Pub. L. 94-241, 90 Stat. 268 (48 
U.S.C. 1681 note); sec. 2, Pub. L. 99-643, 100 Stat. 3574 (42 U.S.C. 
1382h note).

    2. Section 416.200 is revised to read as follows:


Sec. 416.200  Introduction.

    You are eligible for SSI benefits if you meet all the basic 
requirements listed in Sec. 416.202. However, the first month for which 
you may receive SSI benefits is the month after the month in which you 
meet these eligibility requirements. (See Sec. 416.501.) You must give 
us any information we request and show us necessary documents or other 
evidence to prove that you meet these requirements. We determine your 
eligibility for each month on the basis of your countable income in 
that month. You continue to be eligible unless you lose your 
eligibility because you no longer meet the basic requirements or 
because of one of the reasons given in Secs. 416.210 through 416.216.
    3. Section 416.203 is amended by revising paragraph (b) to read as 
follows:


Sec. 416.203  Initial determinations of SSI eligibility.

* * * * *
    (b) How we determine your eligibility for SSI benefits. We 
determine that you are eligible for SSI benefits for a given month if 
you meet the requirements in Sec. 416.202 in that month. However, you 
cannot become eligible for payment of SSI benefits until the month 
after the month in which you first become eligible for SSI benefits 
(see Sec. 416.501).

[[Page 42604]]

In addition, we usually determine the amount of your SSI benefits for a 
month based on your income in an earlier month (see Sec. 416.420). 
Thus, it is possible for you to meet the eligibility requirements in a 
given month but receive no benefit payment for that month.
    4. Section 416.211 is amended by revising paragraph (a)(1) to read 
as follows:


Sec. 416.211  You are a resident of a public institution.

    (a) General rule. (1) Subject to the exceptions described in 
paragraphs (b), (c), and (d) of this section and Sec. 416.212, you are 
not eligible for SSI benefits for any month throughout which you are a 
resident of a public institution as defined in Sec. 416.201. In 
addition, if you are a resident of a public institution when you apply 
for SSI benefits and meet all other eligibility requirements, you 
cannot be eligible for payment of benefits until the first day of the 
month following the day of your release from the institution.
* * * * *
    5. Section 416.262 is amended by revising paragraph (a) to read as 
follows:


Sec. 416.262  Eligibility requirements for special SSI cash benefits.

* * * * *
    (a) You were eligible to receive a regular SSI benefit or a 
federally administered State supplementary payment (see Sec. 416.2001) 
in a month before the month for which we are determining your 
eligibility for special cash benefits as long as the month was not in a 
prior period of eligibility which has terminated according to 
Secs. 416.1331 through 416.1335;
* * * * *

Subpart C--[Amended]

    6. The authority citation for subpart C of part 416 continues to 
read as follows:

    Authority: Secs. 702(a)(5), 1611, and 1631(a), (d), and (e) of 
the Social Security Act (42 U.S.C. 902(a)(5), 1382, and 1383(a), 
(d), and (e)).

    7. Section 416.305 is amended by revising paragraph (a) (2) to read 
as follows:


Sec. 416.305  You must file an application to receive supplemental 
security income benefits.

    (a) * * *
    (2) Assure that you receive benefits for any months you are 
eligible to receive payment; and
* * * * *
    8. Section 416.315 is amended by revising the example in paragraph 
(c) to read as follows:


Sec. 416.315  Who may sign an application.

* * * * *
    (c) * * *

    Example: Mr. Smith comes to a Social Security office to file an 
application for SSI disability benefits for Mr. Jones. Mr. Jones, 
who lives alone, just suffered a heart attack and is in the 
hospital. He asked Mr. Smith, whose only relationship is that of a 
neighbor and friend, to file the application for him. We will accept 
an application signed by Mr. Smith since it would not be possible to 
have Mr. Jones sign and file the application at this time. SSI 
benefits can be paid starting with the first day of the month 
following the month the individual first meets all eligibility 
requirements for such benefits, including having filed an 
application. If Mr. Smith could not sign an application for Mr. 
Jones, a loss of benefits would result if it is later determined 
that Mr. Jones is in fact disabled.

    9. Section 416.330 is revised to read as follows:


Sec. 416.330  Filing before the first month you meet the requirements 
for eligibility.

    If you file an application for SSI benefits before the first month 
you meet all the other requirements for eligibility, the application 
will remain in effect from the date it is filed until we make a final 
determination on your application, unless there is a hearing decision 
on your application. If there is a hearing decision, your application 
will remain in effect until the hearing decision is issued.
    (a) If you meet all the requirements for eligibility while your 
application is in effect, the earliest month for which we can pay you 
benefits is the month following the month that you first meet all the 
requirements.
    (b) If you first meet all the requirements for eligibility after 
the period for which your application was in effect, you must file a 
new application for benefits. In this case, we can pay you benefits 
only from the first day of the month following the month that you meet 
all the requirements based on the new application.
    10. Section 416.335 is revised to read as follows:


Sec. 416.335  Filing in or after the month you meet the requirements 
for eligibility.

    When you file an application in the month that you meet all the 
other requirements for eligibility, the earliest month for which we can 
pay you benefits is the month following the month you filed the 
application. If you file an application after the month you first meet 
all the other requirements for eligibility, we cannot pay you for the 
month in which your application is filed or any months before that 
month. See Secs. 416.340, 416.345 and 416.350 on how a written 
statement or an oral inquiry made before the filing of the application 
form may affect the filing date of the application.

Subpart D--[Amended]

    11. The authority citation for subpart D of part 416 continues to 
read as follows:

    Authority: Secs. 702(a)(5), 1611(a), (b), (c), and (e), 1612, 
1617, and 1631 of the Social Security Act (42 U.S.C. 902(a)(5), 
1382(a), (b), (c), and (e), 1382a, 1382f, and 1383).

    12. Section 416.420 is amended by revising paragraphs (b)(1) 
through (3) to read as follows:


Sec. 416.420  Determination of benefits; general.

* * * * *
    (b) Exceptions to the general rule--(1) First month of initial 
eligibility for payment or the first month of eligibility after a month 
of ineligibility. We use your countable income in the current month to 
determine your benefit amount for the first month you are initially 
eligible for payment of SSI benefits (see Sec. 416.501) or for the 
first month you again become eligible for SSI benefits after at least a 
month of ineligibility. Your payment for a first month of reeligibility 
after at least one month of ineligibility will be prorated according to 
the number of days in the month that you are eligible beginning with 
the date on which you reattain eligibility.

    Example: Mrs. Y applies for SSI benefits in September and meets 
the requirements for eligibility in that month. (We use Mrs. Y's 
countable income in September to determine if she is eligible for 
SSI in September.) The first month for which she can receive payment 
is October (see Sec. 416.501). We use Mrs. Y's countable income in 
October to determine the amount of her benefit for October. If Mrs. 
Y had been receiving SSI benefits through July, became ineligible 
for SSI benefits in August, and again became eligible for such 
benefits in September, we would use Mrs. Y's countable income in 
September to determine the amount of her benefit for September. In 
addition, the proration rules discussed above would also apply to 
determine the amount of benefits in September in this second 
situation.

    (2) Second month of initial eligibility for payment or second month 
of eligibility after a month of ineligibility. We use your countable 
income in the first month prior to the current month to determine how 
much your benefit amount will be for the current month when the current 
month is the second month of initial eligibility for payment or the 
second month of reeligibility following at least a month of 
ineligibility. However, if you have been

[[Page 42605]]

receiving both an SSI benefit and a Social Security insurance benefit 
and the latter is increased on the basis of the cost-of-living 
adjustment or because your benefit is recomputed, we will compute the 
amount of your SSI benefit for January, the month of an SSI benefit 
increase, by including in your income the amount by which your Social 
Security benefit in January exceeds the amount of your Social Security 
benefit in December.

    Example: Mrs. Y was initially eligible for payment of SSI 
benefits in October. Her benefit amount for November will be based 
on her countable income in October (first prior month).

    (3) Third month of initial eligibility for payment or third month 
of eligibility after a month of ineligibility. We use your countable 
income according to the rule set out in paragraph (a) of this section 
to determine how much your benefit amount will be for the third month 
of initial eligibility for payment or the third month of reeligibility 
after at least a month of ineligibility.

    Example: Mrs. Y was initially eligible for payment of SSI 
benefits in October. Her benefit amount for December will be based 
on her countable income in October (second prior month).
* * * * *
    13. Section 416.421 is amended by removing the first sentence of 
paragraph (a) and by removing the example at the end of paragraph (b).

Subpart E--[Amended]

    14. The authority citation for subpart E of part 416 continues to 
read as follows:

    Authority: Secs. 702(a)(5), 1601, 1602, 1611(c) and (e), and 
1631(a)-(d) and (g) of the Social Security Act (42 U.S.C. 902(a)(5), 
1381, 1381a, 1382(c) and (e), and 1383(a)-(d) and (g)); 31 U.S.C. 
372OA.

    15. Section 416.501 is revised to read as follows:


Sec. 416.501  Payment of benefits: General.

    Payment of SSI benefits will be made for the month after the month 
of initial eligibility and for each subsequent month provided all 
requirements for eligibility (see Sec. 416.202) and payment (see 
Sec. 416.420) are met. In the month the individual re-establishes 
eligibility after at least a month of ineligibility, benefits are paid 
for such a month beginning with the date in the month on which the 
individual meets all eligibility requirements. In some months, while 
the factors of eligibility based on the current month may be 
established, it is possible to receive no payment for that month if the 
factors of eligibility for payment are not met. Payment of benefits may 
not be made for any period that precedes the first month following the 
date on which an application is filed or, if later, the first month 
following the date all conditions for eligibility are met.
    16. Section 416.502 is amended by revising the first sentence to 
read as follows:


Sec. 416.502  Manner of payment.

    For the month an individual reestablishes eligibility after a month 
of ineligibility, an SSI payment will be made on or after the day of 
the month on which the individual becomes reeligible to receive 
benefits. * * *
    17. Section 416.520 is amended by revising the first two sentences 
in paragraph (a) and by revising paragraphs (b)(1) and (b)(4), (c) 
introductory text, (c)(1) and (d) to read as follows:


Sec. 416.520  Emergency advance payment.

    (a) General. We may pay a one-time emergency advance payment to an 
individual initially applying for benefits who is presumptively 
eligible for SSI benefits and who has a financial emergency. The amount 
of this payment cannot exceed the Federal benefit rate (see 
Secs. 416.410 through 416.414) plus the federally administered State 
supplementary payment, if any (see Sec. 416.2020), which apply for the 
month for which the payment is made. * * *
    (b) * * *
    (1) Emergency advance payment means a direct, expedited payment by 
a Social Security Administration field office to an individual or 
spouse who is initially applying (see paragraph (b)(3) of this 
section), who is at least presumptively eligible (see paragraph (b)(4) 
of this section), and who has a financial emergency (see paragraph 
(b)(2) of this section). * * *
* * * * *
    (4) Presumptively eligible is the status of an individual or spouse 
who presents strong evidence of the likelihood of meeting all of the 
requirements for eligibility including the income and resources tests 
of eligibility (see subparts K and L of this part), categorical 
eligibility (age, disability, or blindness), and technical eligibility 
(United States residency and citizenship or alien status--see subpart P 
of this part).
    (c) Computation of payment amount. To compute the emergency advance 
payment amount, the maximum amount described in paragraph (a) of this 
section is compared to both the expected amount payable for the month 
for which the payment is made (see paragraph (c)(1) of this section) 
and the amount the applicant requested to meet the emergency. The 
actual payment amount is no more than the least of these three amounts.
    (1) In computing the emergency advance payment amount, we apply the 
monthly income counting rules appropriate for the month for which the 
advance is paid, as explained in Sec. 416.420. Generally, the month for 
which the advance is paid is the month in which it is paid. However, if 
the advance is paid in the month the application is filed, the month 
for which the advance is paid is considered to be the first month of 
expected eligibility for payment of benefits.
* * * * *
    (d) Recovery of emergency advance payment where eligibility is 
established. When an individual or spouse is determined to be eligible 
and retroactive payments are due, any emergency advance payment amounts 
are recovered in full from the first payment(s) certified to the United 
States Treasury. However, if no retroactive payments are due and 
benefits are only due in future months, any emergency advance payment 
amounts are recovered through proportionate reductions in those 
benefits over a period of not more than 6 months. (See paragraph (e) of 
this section if the individual or spouse is determined to be 
ineligible.)
* * * * *

Subpart K--[Amended]

    18. The authority citation for subpart K of part 416 continues to 
read as follows:

    Authority: Secs. 702(a)(5), 1602, 1611, 1612, 1613, 1614(f), 
1621, and 1631 of the Social Security Act (42 U.S.C. 902(a)(5), 
1381a, 1382a, 1382b, 1382c(f), 1382j, and 1383); sec. 211, Pub. L. 
93-66, 87 Stat. 154 (42 U.S.C. 1382 note).

    19. Section 416.1160 is amended by revising paragraph (b)(2)(i), 
and redesignating paragraphs (b)(2)(ii) and (b)(2)(iii) as paragraphs 
(b)(2)(iii) and (b)(2)(iv), respectively, and adding a new paragraph 
(b)(2)(ii), to read as follows:


Sec. 416.1160  What is deeming of income.

* * * * *
    (b) * * *
    (2) * * *
    (i) We use the income from the first month you are initially 
eligible for payment of SSI benefits (see Sec. 416.501) to determine 
your benefit amount for that month. In the following month (the second 
month you are eligible for payment), we use the same countable income 
that we used in the preceding

[[Page 42606]]

month to determine your benefit amount.
    (ii) To determine your benefit amount for the first month you again 
become eligible after you have been ineligible for at least a month, we 
use the same countable income that we use to determine your eligibility 
for that month. In the following month (the second month of 
reeligibility), we use the same countable income that we used in the 
preceding month to determine your benefit amount.
* * * * *
    20. Section 416.1163 is amended by revising paragraph (e)(1) to 
read as follows:


Sec. 416.1163  How we deem income to you from your ineligible spouse.

* * * * *
    (e) Determining your SSI benefit. (1) In determining your SSI 
benefit amount, we follow the procedure in paragraphs (a) through (d) 
of this section. However, we use your ineligible spouse's income in the 
second month prior to the current month. We vary this rule if any of 
the exceptions in Sec. 416.1160(b)(2) applies (for example, if this is 
the first month you are eligible for payment of an SSI benefit or if 
you are again eligible after at least a month of being ineligible). In 
the first month of your eligibility for payment (or re-eligibility), we 
deem your ineligible spouse's income in the current month to determine 
both whether you are eligible for a benefit and the amount of your 
benefit. In the second month, we deem your ineligible spouse's income 
in that month to determine whether you are eligible for a benefit but 
we deem your ineligible spouse's income in the first month to determine 
the amount of your benefit.
* * * * *
    21. Section 416.1165 is amended by revising paragraph (f) to read 
as follows:


Sec. 416.1165  How we deem income to you from your ineligible 
parent(s).

* * * * *
    (f) Determining your SSI benefit. In determining your SSI benefit 
amount, we follow the procedure in paragraphs (a) through (d) of this 
section. However, we use your ineligible parents' income in the second 
month prior to the current month. We vary this rule if any of the 
exceptions in Sec. 416.1160(b)(2) applies (for example, if this is the 
first month you are eligible for payment of an SSI benefit or if you 
are again eligible after at least a month of being ineligible). In the 
first month of your eligibility for payment (or re-eligibility) we deem 
your ineligible parents' income in the current month to determine both 
whether you are eligible for a benefit and the amount of your benefit. 
In the second month we deem your ineligible parents' income in that 
month to determine whether you are eligible for a benefit but we again 
use your countable income (including any that was deemed to you) in the 
first month to determine the amount of your benefit.
* * * * *
    22. Section 416.1166 is amended by revising paragraph (d) to read 
as follows:


Sec. 416.1166  How we deem income to you and your eligible child from 
your ineligible spouse.

* * * * *
    (d) Determining your eligibility for SSI benefits and benefit 
amount. We then follow the rules in Sec. 416.1163(c) to find out if any 
of your ineligible spouse's current monthly income is deemed to you 
and, if so, to determine countable income for a couple. Next, we follow 
paragraph (e) of this section to determine your child's eligibility. 
However, if none of your spouse's income is deemed to you, none is 
deemed to your child. Whether or not your spouse's income is deemed to 
you in determining your eligibility, we determine your benefit amount 
as explained in Sec. 416.1163(e).
* * * * *

Subpart L--[Amended]

    23. The authority citation for subpart L of part 416 continues to 
read as follows:

    Authority: Secs. 702(a)(5), 1602, 1611, 1612, 1613, 1614(f), 
1621, and 1631 of the Social Security Act (42 U.S.C. 902(a)(5), 
1381a, 1382, 1382a, 1382b, 1382c(f), 1382j, and 1383); sec. 211, 
Pub. L. 93-66, 87 Stat. 154 (42 U.S.C. 1382 note).

    24. Section 416.1245 is amended by revising paragraphs (b)(1), 
(b)(2)(v) and (b)(5) to read as follows:


Sec. 416.1245  Exceptions to required disposition of real property.

* * * * *
    (b) Reasonable efforts to sell. (1) Excess real property is not 
included in countable resources for so long as the individual's 
reasonable efforts to sell it have been unsuccessful. The basis for 
determining whether efforts to sell are reasonable, as well as 
unsuccessful, will be a 9-month disposal period described in 
Sec. 416.1242. If it is determined that reasonable efforts to sell have 
been unsuccessful, further SSI payments will not be conditioned on the 
disposition of the property and only the benefits paid during the 9-
month disposal period will be subject to recovery. In order to be 
eligible for payments after the conditional benefits period, the 
individual must continue to make reasonable efforts to sell.
    (2) * * *
    (v) The 9-month disposal period has expired.
* * * * *
    (5) An individual who has received conditional benefits through the 
expiration of the 9 month disposal period and whose benefits have been 
suspended as described at Sec. 416.1321 for reasons unrelated to the 
property excluded under the conditional benefits agreement, but whose 
eligibility has not been terminated as defined at Secs. 416.1331 
through 416.1335, can continue to have the excess real property not 
included in countable resources upon reinstatement of SSI payments if 
reasonable efforts to sell the property resume within 1 week of 
reinstatement. Such an individual will not have to go through a 
subsequent conditional benefits period. However, the individual whose 
eligibility has been terminated as defined at Secs. 416.1331 through 
416.1335 and who subsequently reapplies would be subject to a new 
conditional benefits period if there is still excess real property.

Subpart M--[Amended]

    25. The authority citation for subpart M of part 416 continues to 
read as follows:

    Authority: Secs. 702(a)(5), 1611-1615, 1619, and 1631 of the 
Social Security Act (42 U.S.C. 902(a)(5), 1382-1382d, 1382h, and 
1383).

    26. Section 416.1335 is amended by revising the second sentence to 
read as follows:


Sec. 416.1335  Termination due to continuous suspension.

    * * * We will count the 12-month suspension period from the start 
of the first month that you are no longer eligible for SSI benefits 
(see Sec. 416.1321(a)) or the start of the month after the month your 
special SSI eligibility status described in Sec. 416.265 ended. * * *

Subpart R--[Amended]

    27. The authority citation for subpart R of part 416 continues to 
read as follows:

    Authority: Secs. 702(a)(5), 1614(b), (c), and (d), and 
1631(d)(1) and (e) of the Social Security Act (42 U.S.C. 902(a)(5), 
1382c(b), (c), and (d), and 1383(d)(1) and (e)).

    28. Section 416.1801(c) is amended by revising paragraph (3)(i) in 
the definition of ``Eligible spouse'' and by correcting a cross-
reference in the

[[Page 42607]]

definition of ``Spouse'' to read as follows:


Sec. 416.1801  Introduction.

* * * * *
    (c) * * *
    Eligible Spouse * * *
    (3) * * *
    (i) The first day of the month following the date the application 
is filed (for the initial month of eligibility for payment based on 
that application);
* * * * *
    Spouse means a person's husband or wife under the rules of 
Sec. 416.1806.
* * * * *

Subpart S--[Amended]

    29. The authority citation for subpart S of part 416 continues to 
read as follows:

    Authority: Secs. 702(a)(5) and 1631 of the Social Security Act 
(42 U.S.C. 902(a)(5) and 1383).

    30. Section 416.1902 is amended by revising the definition of 
``interim assistance'' to read as follows:


Sec. 416.1902  Definitions.

* * * * *
    Interim assistance means assistance the State gives you, including 
payments made on your behalf to providers of goods or services, to meet 
your basic needs, beginning with the first month for which you are 
eligible for payment of SSI benefits and ending with, and including, 
the month your SSI payments begin, or assistance the State gives you 
beginning with the day for which your eligibility for SSI benefits is 
reinstated after a period of suspension or termination and ending with, 
and including, the month the Commissioner makes the first payment of 
benefits following the suspension or termination if it is determined 
subsequently that you were eligible for benefits during that period. It 
does not include assistance the State gives to or for any other person. 
If the State has prepared and cannot stop delivery of its last 
assistance payment to you when it receives your SSI benefit payment 
from us, that assistance payment is included as interim assistance to 
be reimbursed. Interim assistance does not include assistance payments 
financed wholly or partly with Federal funds.
* * * * *
[FR Doc. 98-20964 Filed 8-7-98; 8:45 am]
BILLING CODE 4190-29-P`