§346-57  Loans to applicants for Federal
Supplemental Security Income.  Notwithstanding any laws to the contrary,
the department of human services may, out of its operating funds, make loans to
any person eligible for public assistance as provided in this chapter who is an
applicant for benefits under the Federal Supplemental Security Income Program
or its successor agency subject to the following conditions:



(1)  The Federal Bureau of Supplemental Security
Income has denied applicant's request for advance payment or finding of
presumptive eligibility for supplemental security income;



(2)  The loan or loans shall be for a period not to
exceed the action of the Federal Bureau of Supplemental Security Income
approving or disapproving assistance under its program;



(3)  The loan or loans shall bear no interest;



(4)  The loan or loans shall not exceed the amount of
assistance otherwise available to the applicant under this chapter;



(5)  The loan or loans shall be repaid by the
applicant out of the retroactive supplemental security income payments,
provided that nothing herein shall restrict the federal government from making
direct payments to the State for such loan or loans, and provided further that
the loan or loans shall be discharged and no repayment shall be required from
an applicant whose application for Federal Supplemental Security Income
Assistance has been disapproved;



(6)  The applicant shall not be eligible for financial
assistance by the department, provided that the applicant shall become eligible
for such assistance upon disapproval of the application for Federal
Supplemental Security Income Assistance. [L 1975, c 145, pt of §1(3); am L
1979, c 52, §5; gen ch 1985; am L 1987, c 339, §4]