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Statement of Need: This proposed regulation is required to implement section 213 of Public Law 106-169, the Foster Care Independence Act of 1999.

Summary of the Legal Basis: Required by section 213 of Public Law 106-169.

Alternatives: None.

Anticipated Costs and Benefits: SSI payments would not be payable in many cases if financial resources currently not known to SSA were disclosed. It is estimated that approximately $310 million in overpayments occur annually due to unreported financial resources held by current SII recipients. Many of these overpayments would not exist if beneficiaries' financial resources were revealed in a timely manner. Implementation of these regulations will allow SSA to develop processes necessary to identify a substantial portion of undisclosed excess resources in a routine manner. However, many individuals whose excess resources will be identified through this new system will be able to exhaust those resources fairly quickly and subsequently establish, or reestablish, SSI eligibility. Therefore, on an ongoing basis, identification of these financial resources would result in a reduction in annual outlays that would be considerable smaller than the $310 million. Except for additional contract costs related to obtaining vendor services for the role of liaison with financial institutions, we expect the impact of this regulation on SSA administrative resources to be negligible. An estimated $6 million may be needed to contract for development of the necessary methodology to establish electronic exchange of information with financial institutions. Although ongoing annual contract costs are expected to be less than the initial cost of developing the system, it is not known at this time what they will be.

Risks: Undetermined at this time.