[Federal Register Volume 72, Number 94 (Wednesday, May 16, 2007)]
[Rules and Regulations]
[Pages 27424-27425]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-9226]


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SOCIAL SECURITY ADMINISTRATION

20 CFR Parts 404 and 416

[Docket No. SSA-2006-0090]


Applicability of Amendments--Additional Instances Where 
Administrative Sanctions Can Be Imposed--Title II and Title XVI

AGENCY: Social Security Administration (SSA).

ACTION: Announcement of applicability date.

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SUMMARY: On October 18, 2006, we published final rules in the Federal 
Register at 71 FR 61403 that made some revisions to 20 CFR 404.459 and 
416.1340 to reflect section 201(a) of the Social Security Protection 
Act of 2004 (SSPA) providing for the imposition of administrative 
sanctions based on the failure to disclose information to us. 
Consistent with the effective date provisions enacted by Congress for 
section 201 of the SSPA, we stated in the preamble to those final rules 
that those sections of the regulations reflecting section 201 of the 
SSPA would not be applicable until implementation of the centralized 
computer file described in section 202 of the SSPA. That centralized 
computer file has now been fully implemented. Therefore, we are 
publishing this notice to announce the applicability date of the 
revisions to 20 CFR 404.459 and 416.1340.

DATES: The amendments to 20 CFR 404.459 and 416.1450 published October 
16, 2006 (71 FR 61403) became applicable November 27, 2006.

FOR FURTHER INFORMATION CONTACT: Margaret Smilow, Social Insurance 
Specialist, Office of Income Security Programs, 252 Altmeyer Building, 
Social Security Administration, 6401 Security Boulevard, Baltimore, MD. 
21235-6401, (410) 965-7976.

SUPPLEMENTARY INFORMATION: Section 207 of the Foster Care Independence 
Act of 1999 amended title XI of the Social Security Act by adding 
section 1129A to provide for the imposition of administrative sanctions 
by SSA against persons who knowingly make a statement that is false or 
misleading or omits a material fact for use in determining any right to 
or amount of monthly benefits under titles II or XVI of the Social 
Security Act.
    Section 201 of the SSPA of 2004 amended section 1129A to also allow 
for the imposition of the administrative sanction against persons who 
fail to disclose information that is material to eligibility or benefit 
amount if the person knows or should know that the withholding of such 
information is misleading. These sanctions are in addition to any other 
penalties prescribed by law that may result from false/misleading 
statements or failure to report material facts.
    The SSPA provided that this change would only apply with respect to 
violations committed after the date on which there was a title II and 
title XVI computerized system in place which would document reporting 
of monthly wages. The title XVI system became functional on November 
27, 2006. The title II system became operational in 2005.

[[Page 27425]]

    As a result of the implementation of this computerized system on 
November 27, 2006, the revisions to 20 CFR 404.459 and 419.1340 
expanding the situations where administrative sanctions may be imposed 
became applicable. A person is subject to a sanction for failing to 
disclose information that is material to determining title II/title XVI 
benefit eligibility or amounts if:
     The person knows or should know the information is 
material to benefit eligibility or amount; and
     The person knows or should know the withholding of the 
information is misleading; and
     The failure to disclose occurred after November 27, 2006.
    We have revised our instructional manuals and other documents to 
reflect this additional instance where administrative sanctions may be 
imposed.

    Dated: May 8, 2007.
Michael J. Astrue,
Commissioner of Social Security.
 [FR Doc. E7-9226 Filed 5-15-07; 8:45 am]
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