[Federal Register Volume 63, Number 119 (Monday, June 22, 1998)]
[Rules and Regulations]
[Pages 33849-33850]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-16207]



20 CFR Part 416

[Regulations No. 16]
RIN 0960-AE87

Supplemental Security Income for the Aged, Blind, and Disabled; 
Charging Administration Fees for Making State Supplementary Payments

AGENCY: Social Security Administration (SSA).

ACTION: Final rule.


SUMMARY: We are revising our rules to reflect statutory changes that 
require the Social Security Administration (SSA) to increase the 
administration fees it charges States for making supplementary payments 
on behalf of States.

EFFECTIVE DATE: This rule is effective June 22, 1998.

FOR FURTHER INFORMATION CONTACT: Gareth Dence, Social Insurance 
Specialist, Division of Payment Policy, Office of Program Benefits 
Policy, Social Security Administration, 6401 Security Blvd., Baltimore, 
MD 21235, (410) 965-9872 for information about this rule. For 
information on eligibility or claiming benefits, call our national 
toll-free number, 1-800-772-1213.



    On October 1, 1993, pursuant to amendments made to the Social 
Security Act (the Act) and to Pub. L. No. 93-66 by section 13731 of 
Pub. L. No. 103-66, SSA began charging States that had elected Federal 
administration of optional and/or mandatory State supplementary 
payments a fee for administering those payments. This regulation 
reflects section 5102 of Pub. L. No. 105-33 (the Balanced Budget Act of 
1997), which increase the administration fee SSA charges States for 
making supplementary payments on their behalf.

Present Policy

    The administration fee is charged monthly and is derived by 
multiplying the number of State supplementary payments made by SSA on 
behalf of a State for a month by the applicable dollar rate for the 
fiscal year (FY), as prescribed in section 13731 of Pub. L. No. 103-66. 
The dollar rates are as follows: for FY 1994, $1.67; for FY 1995, 
$3.33; for FY 1996, $5.00. For FY 1997 and each succeeding FY, the 
statutory rate reflected in section 13731 of Pub. L. No. 103-66 is 
$5.00 or such different rate as determined by SSA to be appropriate for 
any particular State. In making this determination, SSA may take into 
account the complexity of administering the State's supplementary 
payment program.

Revised Policy

    We are amending the regulation at Sec. 416.2010(b) to reflect 
section 5102 of Pub. L. No. 105-33, that increases the fees SSA is 
required to charge for administering State supplementary payments.

Regulatory Procedures

Executive Order 12866

    We have consulted with the Office of Management and Budget (OMB) 
and determined that this rule does not meet the criteria for a 
significant regulatory action under Executive Order 12866. Thus, it was 
not subject to OMB review.

Regulatory Flexibility Act

    We certify that this rule will not have a significant economic 
impact on a substantial number of small entities. Therefore, a 
regulatory flexibility analysis as provided in the Regulatory 
Flexibility Act, as amended, 5 U.S.C. 601 et seq. is not required.

Paperwork Reduction Act

    This rule imposes no reporting/recordkeeping requirements subject 
to OMB clearance.

(Catalog of Federal Domestic Assistance Program No. 96.006, 
Supplemental Security Income)

Regulatory Procedures

    Pursuant to section 702(a)(5) of the Act, SSA follows the 
procedures specified in the Administrative Procedure Act (APA), 5 
U.S.C. 553, in the development of its regulations. The APA provides 
exceptions to its Notice of Proposed Rulemaking (NPRM) procedures when 
an agency finds that there is good cause for dispensing with such 
procedures on the basis that they are impracticable, unnecessary, or 
contrary to the public interest. In the case of this final rule we have 
determined that, under 5 U.S.C. 553(b)(B), good cause exists for 
dispensing with the NPRM procedures. This rule contains no 
discretionary policy; the changes made by this final rule merely 
conform our regulation to the statutory changes made by Pub. L. No. 
105-33. The statute requiring the increase in State supplementation 
administration fees was effective on August 5, 1997. Therefore, we find 
that opportunity for prior comment is unnecessary. In addition, we find 
good cause for dispensing with the 30-day delay in the effective date 
of a substantive rule provided for by 5 U.S.C. 553(d). We have 
determined that a delay in the effective date of this rule is 
unnecessary because the rule contains no discretionary policy but 
merely conforms our regulations to a statutory provision that is 
already in effect.

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: June 9, 1998.
Kenneth S. Apfel,
Commissioner of Social Security.
    Subpart T of part 416 of chapter III of title 20 of the Code of 
Federal Regulations is amended as follows:


Subpart T--[Amended]

    1. 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. 902(a)(5), 1382e, 1382g, and 1383); sec. 
212, Pub. L. 93-66, 87 Stat. 155 (42 U.S.C. 1382 note); sec. 8(a), 
(b)(1)-(b)(3), Pub. L. 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), Pub. L. 93-335, 88 Stat. 291 (42 U.S.C. 1382 note, 
1382e note).

    2. Section 416.2010 is amended by removing ``and'' at the end of 
paragraph (b)(1)(iii), by revising (b)(1)(iv), and by adding (b)(1) (v) 
through (x) to read as follows:

Sec. 416.2010  Essentials of the administration agreements.

* * * * *
    (b) Administrative costs.
    (1) * * *
    (iv) For fiscal year 1997, $5.00;
    (v) For fiscal year 1998, $6.20;
    (vi) For fiscal year 1999, $7.60;

[[Page 33850]]

    (vii) For fiscal year 2000, $7.80;
    (viii) For fiscal year 2001, $8.10;
    (ix) For fiscal year 2002, $8.50; and
    (x) For fiscal year 2003 and each succeeding fiscal year--
    (A) The applicable rate in the preceding fiscal year, increased by 
the percentage, if any, by which the Consumer Price Index for the month 
of June of the calendar year of the increase exceeds the Consumer Price 
Index for the month of June of the calendar year preceding the calendar 
year of the increase, and rounded to the nearest whole cent; or
    (B) Such different rate as the Commissioner determines is 
appropriate for the State taking into account the complexity of 
administering the State's supplementary payment program.

[FR Doc. 98-16207 Filed 6-19-98; 8:45 am]