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

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 ``[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