---
kind: "range"
citation: "20 C.F.R. §§ 416.1090–416.1094"
title: "20"
from: "416.1090"
to: "416.1094"
count: 5
url: "https://uscodex.org/cfr/20/416.1090..416.1094"
---

# §416.1090. Assumption when we make a finding of substantial failure.

- (a) **Notice to State.** When we find that substantial failure exists, we will notify the State in writing that we will assume responsibility for performing the disability determination function from the State agency, whether the assumption will be partial or complete, and the date on which the assumption will be effective.
- (b) **Effective date of assumption.** The date of any partial or complete assumption of the disability determination function from a State agency may not be earlier than 180 days after our finding of substantial failure, and not before compliance with the requirements of [§ 416.1092](/cfr/20/416.1092.md).

# §416.1091. Assumption when State no longer wishes to perform the disability determination function.

- (a) **Notice to the Commissioner.** If a State no longer wishes to perform the disability determination function, it will notify us in writing. The notice must be from an official authorized to act for the State for this purpose. The State will provide an opinion from the State's Attorney General verifying the authority of the official who gave the notice.
- (b) **Effective date of assumption.** The State agency will continue to perform whatever activities of the disability determination function it is performing at the time the notice referred to in [paragraph (a)](#a) of this section is given for not less than 180 days or, if later, until we have complied with the requirements of [§ 416.1092](/cfr/20/416.1092.md). For example, if the State is not making disability determinations (because we previously assumed responsibility for making them) but is performing other activities related to the disability determination function at the time it gives notice, the State will continue to do these activities until the requirements of this paragraph are met. Thereafter, we will assume complete responsibility for performing the disability determination function.

# §416.1092. Protection of State employees.

- (a) **Hiring preference.** We will develop and initiate procedures to implement a plan to partially or completely assume the disability determination function from the State agency under [§ 416.1090](/cfr/20/416.1090.md) or [§ 416.1091](/cfr/20/416.1091.md), as appropriate. Except for the State agency's administrator, deputy administrator, or assistant administrator (or his equivalent), we will give employees of the State agency who are capable of performing duties in the disability determination function preference over any other persons in filling positions with us for which they are qualified. We may also give a preference in hiring to the State agency's administrator, deputy administrator, or assistant administrator (or his equivalent). We will establish a system for determining the hiring priority among the affected State agency employees in those instances where we are not hiring all of them.
- (b) **Determination by Secretary of Labor.** We will not assume responsibility for performing the disability determination function from a State until the Secretary of Labor determines that the State has made fair and equitable arrangements under applicable Federal, State and local law to protect the interests of employees who will be displaced from their employment because of the assumption and who we will not hire.

# §416.1093. Limitation on State expenditures after notice.


The State agency may not, after it receives the notice referred to in [§ 416.1090](/cfr/20/416.1090.md), or gives the notice referred to in [§ 416.1091](/cfr/20/416.1091.md), make any new commitments to spend funds allocated to it for performing the disability determination function without the approval of the appropriate SSA regional commissioner. The State will make every effort to close out as soon as possible all existing commitments that relate to performing the disability determination function.


# §416.1094. Final accounting by the State.


The State will submit its final claims to us as soon as possible, but in no event later than 1 year from the effective date of our assumption of the disability determination function unless we grant an extension of time. When the final claim(s) is submitted, a final accounting will be made by the State of any funds paid to the State under [§ 416.1026](/cfr/20/416.1026.md) which have not been spent or committed prior to the effective date of our assumption of the disability determination function. Disputes concerning final accounting issues which cannot be resolved between the State and us will be resolved in proceedings before the Grant Appeals Board as described in [45 CFR part 416](/cfr/45/part416.md).