Supplemental Security Income for the Aged, Blind, and Disabled; Technical Changes to Title XVI

SOCIAL SECURITY ADMINISTRATION

20 CFR Part 416

RIN 0960-AD89

Supplemental Security Income for the Aged, Blind, and Disabled;

Technical Changes to Title XVI

AGENCY: Social Security Administration.

ACTION: Final rules.

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SUMMARY: We are amending the supplemental security income (SSI)

regulations by making technical changes to our rules on income and

resources. These technical changes update lists of exclusions from

income and resources under the SSI program that are in statutes other

than the Social Security Act (the Act) and make an additional technical

correction. We are also reflecting a statutory provision from the

Social Security Independence and Program Improvements Act (SSIPIA) of

1994 concerning optional State supplementary payments.

EFFECTIVE DATE: July 7, 1997.

FOR FURTHER INFORMATION CONTACT: Suzanne DiMarino, 3-A-3 Operations

Building, 6401 Security Boulevard, Baltimore, MD 21235, (410) 965-1769.

SUPPLEMENTARY INFORMATION: In these final regulations we are making

technical changes to the SSI regulations as follows: Updating the

appendix at the end of subpart K which lists exclusions from income in

statutes other than the Act; updating the lists of statutory exclusions

from resources contained in subpart L; and making a technical

correction in subpart L for conformity with prior regulatory changes.

In addition, we are reflecting, in subpart T, a statutory provision

which explains that some States which have Federal administration of

their optional supplementary payments may elect to exclude for pass-

along compliance purposes certain payments made as a result of the

Sullivan v. Zebley, 493 U.S. 521 (1990) class action. The changes and

added provision are described below.

Subpart K, Appendix, Changes

At the end of part 416, subpart K, we maintain an appendix which

lists types of income excluded under the SSI program as provided by

Federal laws other than the Act. We update this list periodically.

However, we apply the law in effect due to changes to Federal statutes

whether or not the list in the appendix has been amended to reflect the

statutory changes. We are revising the appendix to subpart K as

follows:

1. Under the heading IV. Native Americans, we are updating the list

to reflect the exclusion from income for SSI purposes of additional

payments, funds, distributions, and other income provided by Federal

laws that affect Alaskan Natives and other Indian entities. As

appropriate, we include a Note-- regarding our treatment of the income

under the deeming of income from sponsors to aliens provisions.

We are adding 22 types of payments made to Native American entities

to the list of income exclusions provided by Federal statutes. We also

are making

[[Page 30981]]

some minor clarifications, such as correcting statutory citations or

renumbering, for some of the exclusions already listed in section IV.

We are dividing the list of Native American exclusions into three

subsections for ease of reference. The first group, in paragraph (a),

lists types of payments that are excluded from income without regard to

specific tribes or Indian groups. These include payments of certain

Indian judgment funds; per capita distributions of all funds held in

trust by the Secretary of the Interior; payments excluded pursuant to

the Alaska Native Claims Settlement Act; and payments up to $2,000 each

year received by certain Native Americans that are derived from

individual interests in trust or restricted lands. Only the latter

exclusion, which was provided by the Omnibus Budget Reconciliation Act

of 1993, Public Law (Pub. L.) 103-66, is being added to the appendix.

The other three were in the appendix, but will be renumbered and

grouped together.

The second group, in paragraph (b), of Native American exclusions

lists certain payments to members of specific Native American tribes or

groups. We are adding 21 payments to this group, and renumbering the

exclusions already in the appendix, so that the list will be in

chronological order by public law.

The third group of exclusions, in paragraph (c), lists receipts

from land held in trust for specific tribes or groups. We are not

adding any exclusions to that list, but are renumbering them.

2. Under the heading V. Other we are adding new paragraph (f) which

excludes from income child care or reimbursement for child care as

provided under the Child Care and Development Block Grant Act, as

amended by section 8(b) of Public Law 102-586. We are also adding a new

paragraph (g) to reflect the exclusion from income of payments made to

individuals because of their status as victims of Nazi persecution

pursuant to section 1(a) of the Victims of Nazi Persecution Act of

1994, Public Law 103-286.

Subpart L Changes

We are updating Sec. 416.1236(a), Exclusions from resources;

provided by other statutes which lists exclusions from resources under

the SSI program. We update the list to show that resources derived from

the conversion of most payments to Native Americans that are types of

income listed in the appendix to subpart K of part 416--IV. Native

Americans, are excluded from resources under the SSI program.

Accordingly, we are revising the resource exclusions specific to Indian

tribes or groups to reflect the changes made in appendix K.

We are also adding a new paragraph (a)(18) to Sec. 416.1236 to

reflect the exclusion from resources of payments made to individuals

because of their status as victims of Nazi persecution pursuant to

section 1(a) of the Victims of Nazi Persecution Act of 1994, Public Law

103-286 (108 Stat. 1450).

Additionally, we are amending Sec. 416.1245(b)(3)(ii) to conform

with a change to Sec. 416.1242(a) promulgated on November 15, 1993 at

58 FR 60103. Under that regulatory change, the Social Security

Administration's acceptance of the written agreement for conditional

payments is effective when the applicant/recipient receives our written

notice. Our change to Sec. 416.1245(b)(3)(ii) states that within 30

days of receiving our notice accepting the conditional payments

agreement (instead of within 30 days of signing the agreement), the

applicant/recipient must take certain steps to sell his or her

property.

Subpart T Addition

We are amending Sec. 416.2096(c), Meeting the passalong

requirement--total expenditures. Exception--, by adding a new paragraph

(6) to place in regulations the statutory provision of section 209 of

the SSIPIA of 1994 (Pub. L. 103-296). Section 209 amends section

1618(b) of the Act. The amendment provides that for purposes of

determining whether a State's expenditures for supplementary payments

in the 12-month period beginning on the effective date of any increase

in the level of SSI benefits are not less than the State's expenditures

for the payments in the preceding 12-month period, the Commissioner of

Social Security, in computing the State's expenditures, shall

disregard, pursuant to a one-time election of the State, all

expenditures by the State for retroactive supplementary payments that

are required to be made in connection with the retroactive SSI benefits

referred to in section 5041 of the Omnibus Budget Reconciliation Act of

1990 (OBRA '90), Public Law 101-508. This section of OBRA '90 addresses

only those retroactive SSI benefits paid as a result of Sullivan v.

Zebley, 493 U.S. 521 (1990). To make clear that these regulations apply

only to the retroactive SSI benefits as a result of Sullivan v. Zebley,

we are including this court case reference in the regulations.

Regulatory Procedures

When developing our regulations, we follow the rulemaking

procedures specified in the Administrative Procedure Act (APA), 5

U.S.C. 553. The APA provides exceptions to its notice of proposed

rulemaking and public comment procedures when an agency finds there is

good cause for dispensing with such procedures on the basis that they

are impracticable, unnecessary, or contrary to the public interest. We

have determined that, under 5 U.S.C. 553(b)(B), good cause exists for

dispensing with the notice of proposed rulemaking and public comment

procedures in this case. Good cause exists because these rules contain

only changes which reflect statutory exclusions of income and resources

in statutes other than the Act and a technical change, and reflect a

statutory provision from the SSIPIA of 1994, none of which involve the

setting of policy. Therefore, opportunity for prior comment is

unnecessary, and we are issuing these changes to our regulations as

final rules.

Executive Order No. 12866

We have consulted with the Office of Management and Budget (OMB)

and determined that these rules do not meet the criteria for a

significant regulatory action under Executive Order 12866. Thus, they

were not subject to OMB review.

Regulatory Flexibility Act

We certify that these final rules will not have a significant

economic impact on a substantial number of small entities since these

rules affect only individuals and States. Therefore, a regulatory

flexibility analysis as provided in Public Law 96-354, the Regulatory

Flexibility Act, is not required.

Paperwork Reduction Act

These final regulations impose no additional reporting and

recordkeeping requirements subject to OMB clearance.

(Catalog of Federal Domestic Assistance: Program No. 96.006--

Supplemental Security Income.)

List of Subjects in 20 CFR Part 416

Administrative practice and procedure, Aged, Blind, Disability

benefits, Public assistance programs, Reporting and recordkeeping

requirements, Supplemental Security Income (SSI).

Dated: May 27, 1997.

John J. Callahan,

Acting Commissioner of Social Security.

For the reasons set out in the preamble, part 416 of chapter III of

title

[[Page 30982]]

20 of the Code of Federal Regulations is amended as follows:

PART 416--[AMENDED]

1. 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, 1382, 1382a, 1382b, 1382c(f), 1382j, and 1383); sec. 211,

Pub. L. 93-66, 87 Stat. 154 (42 U.S.C. 1382 note).

2. In the appendix following subpart K of part 416, IV. Native

Americans is revised and in V. Other, paragraphs (f) and (g) are added

to read as follows:

Appendix to Subpart K of Part 416--List of Types of Income Excluded

Under the SSI Program as Provided by Federal Laws Other Than the

Social Security Act

* * * * *

IV. Native Americans

(a) Types of Payments Excluded Without Regard to Specific Tribes

or Groups--

(1) Indian judgment funds that are held in trust by the

Secretary of the Interior or distributed per capita pursuant to a

plan prepared by the Secretary of the Interior and not disapproved

by a joint resolution of the Congress under Public Law 93-134 as

amended by section 4 of Public Law 97-458 (96 Stat. 2513, 25 U.S.C.

1408). Indian judgment funds include interest and investment income

accrued while such funds are so held in trust. This exclusion

extends to initial purchases made with Indian judgment funds. This

exclusion does not apply to sales or conversions of initial

purchases or to subsequent purchases.

Note--This exclusion applies to the income of sponsors of aliens

only if the alien lives in the sponsor's household.

(2) All funds held in trust by the Secretary of the Interior for

an Indian tribe and distributed per capita to a member of that tribe

are excluded from income under Public Law 98-64 (97 Stat. 365, 25

U.S.C. 117b). Funds held by Alaska Native Regional and Village

Corporations (ANRVC) are not held in trust by the Secretary of the

Interior and therefore ANRVC dividend distributions are not excluded

from countable income under this exclusion. For ANRVC dividend

distributions, see paragraph IV.(a)(3) of this appendix.

Note--This exclusion applies to the income of sponsors of aliens

only if the alien lives in the sponsor's household.

(3) Distributions received by an individual Alaska Native or

descendant of an Alaska Native from an Alaska Native Regional and

Village Corporation pursuant to the Alaska Native Claims Settlement

Act, as follows: cash, including cash dividends on stock received

from a Native Corporation, to the extent that it does not, in the

aggregate, exceed $2,000 per individual each year; stock, including

stock issued or distributed by a Native Corporation as a dividend or

distribution on stock; a partnership interest; land or an interest

in land, including land or an interest in land received from a

Native Corporation as a dividend or distribution on stock; and an

interest in a settlement trust. This exclusion is pursuant to

section 15 of the Alaska Native Claims Settlement Act Amendments of

1987, Public Law 100-241 (101 Stat. 1812, 43 U.S.C. 1626(c)),

effective February 3, 1988.

Note--This exclusion does not apply in deeming income from

sponsors to aliens.

(4) Up to $2,000 per year received by Indians that is derived

from individual interests in trust or restricted lands under section

13736 of Public Law 103-66 (107 Stat. 663, 25 U.S.C. 1408, as

amended).

(b) Payments to Members of Specific Indian Tribes and Groups--

(1) Per capita payments to members of the Red Lake Band of

Chippewa Indians from the proceeds of the sale of timber and lumber

on the Red Lake Reservation under section 3 of Public Law 85-794 (72

Stat. 958).

(2) Per capita distribution payments by the Blackfeet and Gros

Ventre tribal governments to members which resulted from judgment

funds to the tribes under section 4 of Public Law 92-254 (86 Stat.

65) and under section 6 of Public Law 97-408 (96 Stat. 2036).

(3) Settlement fund payments and the availability of such funds

to members of the Hopi and Navajo Tribes under section 22 of Public

Law 93-531 (88 Stat. 1722) as amended by Public Law 96-305 (94 Stat.

929).

Note--This exclusion applies to the income of sponsors of aliens

only if the alien lives in the sponsor's household.

(4) Judgment funds distributed per capita to, or held in trust

for, members of the Sac and Fox Indian Nation, and the availability

of such funds under section 6 of Public Law 94-189 (89 Stat. 1094).

Note--This exclusion applies to the income of sponsors of aliens

only if the alien lives in the sponsor's household.

(5) Judgment funds distributed per capita to, or held in trust

for, members of the Grand River Band of Ottawa Indians, and the

availability of such funds under section 6 of Public Law 94-540 (90

Stat. 2504).

Note--This exclusion applies to the income of sponsors of aliens

only if the alien lives in the sponsor's household.

(6) Any judgment funds distributed per capita to members of the

Confederated Tribes and Bands of the Yakima Indian Nation or the

Apache Tribe of the Mescalero Reservation under section 2 of Public

Law 95-433 (92 Stat. 1047, 25 U.S.C. 609c-1).

(7) Any judgment funds distributed per capita or made available

for programs for members of the Delaware Tribe of Indians and the

absentee Delaware Tribe of Western Oklahoma under section 8 of

Public Law 96-318 (94 Stat. 971).

(8) All funds and distributions to members of the Passamaquoddy

Tribe, the Penobscot Nation, and the Houlton Band of Maliseet

Indians under the Maine Indian Claims Settlement Act, and the

availability of such funds under section 9 of Public Law 96-420 (94

Stat. 1795, 25 U.S.C. 1728(c)).

Note--This exclusion applies to the income of sponsors of aliens

only if the alien lives in the sponsor's household.

(9) Any distributions of judgment funds to members of the San

Carlos Apache Indian Tribe of Arizona under section 7 of Public Law

93-134 (87 Stat. 468) and Public Law 97-95 (95 Stat. 1206).

Note--This exclusion applies to the income of sponsors of aliens

only if the alien lives in the sponsor's household.

(10) Any distribution of judgment funds to members of the

Wyandot Tribe of Indians of Oklahoma under section 6 of Public Law

97-371 (96 Stat. 1814).

(11) Distributions of judgment funds to members of the Shawnee

Tribe of Indians (Absentee Shawnee Tribe of Oklahoma, the Eastern

Shawnee Tribe of Oklahoma and the Cherokee Band of Shawnee

descendants) under section 7 of Public Law 97-372 (96 Stat. 1816).

(12) Judgment funds distributed per capita or made available for

programs for members of the Miami Tribe of Oklahoma and the Miami

Indians of Indiana under section 7 of Public Law 97-376 (96 Stat.

1829).

(13) Distributions of judgment funds to members of the Clallam

Tribe of Indians of the State of Washington (Port Gamble Indian

Community, Lower Elwha Tribal Community and the Jamestown Band of

Clallam Indians) under section 6 of Public Law 97-402 (96 Stat.

2021).

(14) Judgment funds distributed per capita or made available for

programs for members of the Pembina Chippewa Indians (Turtle

Mountain Band of Chippewa Indians, Chippewa Cree Tribe of Rocky

Boy's Reservation, Minnesota Chippewa Tribe, Little Shell Band of

the Chippewa Indians of Montana, and the nonmember Pembina

descendants) under section 9 of Public Law 97-403 (96 Stat. 2025).

(15) Per capita distributions of judgment funds to members of

the Assiniboine Tribe of Fort Belknap Indian Community and the

Papago Tribe of Arizona under sections 6 and 8(d) of Public Law 97-

408 (96 Stat. 2036, 2038).

(16) Up to $2,000 of per capita distributions of judgment funds

to members of the Confederated Tribes of the Warm Springs

Reservation under section 4 of Public Law 97-436 (96 Stat. 2284).

Note--This exclusion applies to the income of sponsors of aliens

only if the alien lives in the sponsor's household.

(17) Judgment funds distributed to the Red Lake Band of Chippewa

Indians under section 3 of Public Law 98-123 (97 Stat. 816).

(18) Funds distributed per capita or family interest payments

for members of the Assiniboine Tribe of Fort Belknap Indian

Community of Montana and the Assiniboine Tribe of the Fort Peck

Indian Reservation of Montana under section 5 of Public Law 98-124

(97 Stat. 818).

(19) Distributions of judgment funds and income derived

therefrom to members of the Shoalwater Bay Indian Tribe under

section 5 of Public Law 98-432 (98 Stat. 1672).

(20) All distributions to heirs of certain deceased Indians

under section 8 of the Old Age Assistance Claims Settlement Act,

Public Law 98-500 (98 Stat. 2319).

[[Page 30983]]

Note--This exclusion applies to the income of sponsors of aliens

only if the alien lives in the sponsor's household.

(21) Judgment funds distributed per capita or made available for

any tribal program for members of the Wyandotte Tribe of Oklahoma

and the Absentee Wyandottes under section 106 of Public Law 98-602

(98 Stat. 3151).

(22) Per capita and dividend payment distributions of judgment

funds to members of the Santee Sioux Tribe of Nebraska, the

Flandreau Santee Sioux Tribe, the Prairie Island Sioux, Lower Sioux,

and Shakopee Mdewakanton Sioux Communities of Minnesota under

section 8 of Public Law 99-130 (99 Stat. 552) and section 7 of

Public Law 93-134 (87 Stat. 468), as amended by Public Law 97-458

(96 Stat. 2513; 25 U.S.C. 1407).

(23) Funds distributed per capita or held in trust for members

of the Chippewas of Lake Superior and the Chippewas of the

Mississippi under section 6 of Public Law 99-146 (99 Stat. 782).

(24) Distributions of claims settlement funds to members of the

White Earth Band of Chippewa Indians as allottees, or their heirs,

under section 16 of Public Law 99-264 (100 Stat. 70).

(25) Payments or distributions of judgment funds, and the

availability of any amount for such payments or distributions, to

members of the Saginaw Chippewa Indian Tribe of Michigan under

section 6 of Public Law 99-346 (100 Stat. 677).

Note--This exclusion applies to the income of sponsors of aliens

only if the alien lives in the sponsor's household.

(26) Judgment funds distributed per capita or held in trust for

members of the Chippewas of Lake Superior and the Chippewas of the

Mississippi under section 4 of Public Law 99-377 (100 Stat. 805).

(27) Judgment funds distributed to members of the Cow Creek Band

of Umpqua Tribe of Indians under section 4 of Public Law 100-139

(101 Stat. 822).

(28) Per capita payments of claims settlement funds to members

of the Coushatta Tribe of Louisiana under section 2 of Public Law

100-411 (102 Stat. 1097) and section 7 of Public Law 93-134 (87

Stat. 468), as amended by Public Law 97-458 (96 Stat. 2513; 25

U.S.C. 1407).

Note--This exclusion applies to the income of sponsors of aliens

only if the alien lives in the sponsor's household.

(29) Funds distributed per capita for members of the Hoopa

Valley Indian Tribe and the Yurok Indian Tribe under sections 4, 6

and 7 of Public Law 100-580 (102 Stat. 2929, 2930, 2931) and section

3 of Public Law 98-64 (97 Stat. 365; 25 U.S.C. 117b).

Note--This exclusion applies to the income of sponsors of aliens

only if the alien lives in the sponsor's household.

(30) Judgment funds held in trust by the United States,

including interest and investment income accruing on such funds, and

judgment funds made available for programs or distributed to members

of the Wisconsin Band of Potawatomi (Hannahville Indian Community

and Forest County Potawatomi) under section 503 of Public Law 100-

581 (102 Stat. 2945).

Note--This exclusion applies to the income of sponsors of aliens

only if the alien lives in the sponsor's household.

(31) All funds, assets, and income from the trust fund

transferred to the members of the Puyallup Tribe under section 10 of

the Puyallup Tribe of Indians Settlement Act of 1989, Public Law

101-41 (103 Stat. 88, 25 U.S.C. 1773h(c)).

Note--This exclusion does not apply in deeming income from

sponsors to aliens.

(32) Judgment funds distributed per capita, or held in trust, or

made available for programs, for members of the Seminole Nation of

Oklahoma, the Seminole Tribe of Florida, the Miccosukee Tribe of

Indians of Florida and the independent Seminole Indians of Florida

under section 8 of Public Law 101-277 (104 Stat. 145).

Note--This exclusion applies to the income of sponsors of aliens

only if the alien lives in the sponsor's household.

(33) Payments, funds, distributions, or income derived from them

to members of the Seneca Nation of New York under section 8(b) of

the Seneca Nation Settlement Act of 1990, Public Law 101-503 (104

Stat. 1297, 25 U.S.C. 1774f).

Note--This exclusion does not apply in deeming income from

sponsors to aliens.

(34) Per capita distributions of settlement funds under section

102 of the Fallon Paiute Shoshone Indian Tribes Water Rights

Settlement Act of 1990, Public Law 101-618 (104 Stat. 3289) and

section 7 of Public Law 93-134 (87 Stat. 468), as amended by Public

Law 97-458 (96 Stat. 2513; 25 U.S.C. 1407).

(35) Settlement funds, assets, income, payments, or

distributions from Trust Funds to members of the Catawba Indian

Tribe of South Carolina under section 11(m) of Public Law 103-116

(107 Stat. 1133).

(36) Settlement funds held in trust (including interest and

investment income accruing on such funds) for, and payments made to,

members of the Confederated Tribes of the Colville Reservation under

section 7(b) of Public Law 103-436 (108 Stat. 4579).

Note--This exclusion applies to the income of sponsors of aliens

only if the alien lives in the sponsor's household.

(c) Receipts from Lands Held in Trust for Certain Tribes or

Groups--

(1) Receipts from land held in trust by the federal government

and distributed to members of certain Indian tribes under section 6

of Public Law 94-114 (89 Stat. 579, 25 U.S.C. 459e).

Note--This exclusion applies to the income of sponsors of aliens

only if the alien lives in the sponsor's household.

(2) Receipts derived from trust lands awarded to the Pueblo of

Santa Ana and distributed to members of that tribe under section 6

of Public Law 95-498 (92 Stat. 1677).

(3) Receipts derived from trust lands awarded to the Pueblo of

Zia of New Mexico and distributed to members of that tribe under

section 6 of Public Law 95-499 (92 Stat. 1680).

V. Other

* * * * *

(f) The value of any child care provided or arranged (or any

payment for such care or reimbursement for costs incurred for such

care) under the Child Care and Development Block Grant Act, as

amended by section 8(b) of Public Law 102-586 (106 Stat. 5035).

(g) Payments made to individuals because of their status as

victims of Nazi persecution excluded pursuant to section 1(a) of the

Victims of Nazi Persecution Act of 1994, Public Law 103-286 (108

Stat. 1450).

3. 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,

Public Law 93-66, 87 Stat. 154 (42 U.S.C. 1382 note).

4. In Sec. 416.1236, paragraph (a)(2) is revised; the last sentence

of paragraph (a)(12) is revised; paragraphs (a)(13), (a)(16), and

(a)(19) are removed; paragraphs (a)(14), (a)(15), (a)(17), (a)(18), and

(a)(20) are redesignated as paragraph (a)(13), (a)(14), (a)(15),

(a)(16), and (a)(17), respectively; and a new paragraph (a)(18) is

added to read as follows:

Sec. 416.1236 Exclusions from resources; provided by other statutes.

(a) * * *

(2) Payments made to Native Americans as listed in paragraphs (b)

and (c) of section IV of the appendix to subpart K of part 416, as

provided by Federal statutes other than the Social Security Act.

* * * * *

(12) * * * For the treatment of ANRVC dividend distributions, see

paragraph (a)(10) of this section.

* * * * *

(18) Payments made to individuals because of their status as

victims of Nazi persecution excluded pursuant to section 1(a) of the

Victims of Nazi Persecution Act of 1994, Public Law 103-286 (108 Stat.

1450).

5. In Sec. 416.1245, the introductory text of paragraph (b)(3)(ii),

is revised to read as follows:

Sec. 416.1245 Exceptions to required disposition of real property.

* * * * *

(b) * * *

(3) * * *

(ii) Within 30 days of receiving notice that we have accepted the

individual's signed written agreement to dispose of the property, and

absent good cause for not doing so, the individual must:

* * * * *

6. The authority citation for subpart T of part 416 continues to

read as follows:

Authority: Secs. 702(a)(5), 1616, 1618, and 1631 of the Social

Security Act (42 U.S.C.

[[Page 30984]]

902(a)(5), 1382e, 1382g, and 1383); sec. 212, Public Law 93-66, 87

Stat. 155 (42 U.S.C. 1382 note); sec. 8(a), (b)(1)-(b)(3), Public

Law 93-233, 87 Stat. 956 (7 U.S.C. 612c note, 1431 note and 42

U.S.C. 1382e note); secs. 1(a)-(c) and 2(a), 2(b)(1), 2(b)(2),

Public Law 93-335, 88 Stat. 291 (42 U.S.C. 1382 note, 1382e note).

7. Section 416.2096 is amended by adding a new paragraph (c)(6) to

read as follows:

Sec. 416.2096 Basic pass-along rules.

* * * * *

(c) * * *

(6) To determine whether a State's expenditures for supplementary

payments in the 12-month period beginning on the effective date of any

increase in the level of SSI benefits are not less than the State's

expenditures for the payments in the preceding 12-month period, in

computing the State's expenditures, we disregard, pursuant to a one-

time election of the State, all expenditures by the State for the

retroactive supplementary payments that are required to be made under

the Sullivan v. Zebley, 493 U.S. 521 (1990) class action.

* * * * *

[FR Doc. 97-14615 Filed 6-5-97; 8:45 am]

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