Federal Register / Vol. 63, No. 153 / Monday, August 10, 1998 / Proposed Rules 42601

Issued in Washington, DC on August 4,

1998 by the Commodity Futures Trading

Commission.

Jean A. Webb,

Secretary of the Commission.

[FR Doc. 98–21306 Filed 8–7–98; 8:45 am]

BILLING CODE 6351–01–M

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.

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 ‘‘regulations@ssa.gov,’’ 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

§§ 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 §§ 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 § 416.202 may

receive SSI benefits is the month after

the month he or she meets these

eligibility requirements (see § 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 § 416.200 to update a

cross-reference.

We also propose conforming

amendments to paragraph (a)(1) of

§ 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 § 416.262 to

clarify, consistent with section 1619 of
42602 Federal Register / Vol. 63, No. 153 / Monday, August 10, 1998 / Proposed Rules

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 § 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 § 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 § 416.330(a) to reflect the

statutory change affecting the first

month for which benefits can be paid.

We propose to revise § 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

§ 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 § 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 §§ 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

§§ 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

§§ 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 § 416.1166(d) to

accurately reflect the current reference

in the regulations.

We propose to revise § 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 § 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 § 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

§ 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

§ 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

§ 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

§ 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 § 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.
Federal Register / Vol. 63, No. 153 / Monday, August 10, 1998 / Proposed Rules 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:

§ 416.200 Introduction.

You are eligible for SSI benefits if you

meet all the basic requirements listed in

§ 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

§ 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

§§ 416.210 through 416.216.

3. Section 416.203 is amended by

revising paragraph (b) to read as follows:

§ 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

§ 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 § 416.501).
42604 Federal Register / Vol. 63, No. 153 / Monday, August 10, 1998 / Proposed Rules

In addition, we usually determine the

amount of your SSI benefits for a month

based on your income in an earlier

month (see § 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:

§ 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 § 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 § 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:

§ 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 § 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 §§ 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:

§ 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:

§ 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:

§ 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:

§ 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 §§ 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:

§ 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 § 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 § 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
Federal Register / Vol. 63, No. 153 / Monday, August 10, 1998 / Proposed Rules 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:

§ 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 § 416.202) and payment

(see § 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:

§ 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:

§ 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 §§ 416.410 through 416.414) plus

the federally administered State

supplementary payment, if any (see

§ 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

§ 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:

§ 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 § 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
42606 Federal Register / Vol. 63, No. 153 / Monday, August 10, 1998 / Proposed Rules

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:

§ 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 § 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:

§ 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 § 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:

§ 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 § 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 § 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:

§ 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 § 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 § 416.1321

for reasons unrelated to the property

excluded under the conditional benefits

agreement, but whose eligibility has not

been terminated as defined at

§§ 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

§§ 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:

§ 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

§ 416.1321(a)) or the start of the month

after the month your special SSI

eligibility status described in § 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
Federal Register / Vol. 63, No. 153 / Monday, August 10, 1998 / Proposed Rules 42607

definition of ‘‘Spouse’’ to read as

follows:

§ 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 § 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:

§ 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