[Federal Register Volume 59, Number 52 (Thursday, March 17, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-6158]
[[Page Unknown]]
[Federal Register: March 17, 1994]
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DEPARTMENT OF HEALTH AND HUMAN SERVICES
Social Security Administration
20 CFR Part 416
[Regulations No. 16]
RIN 0960-AD85.
Supplemental Security Income for the Aged, Blind, and Disabled;
Replacement of Lost, Damaged, or Stolen Excluded Resources (Hurricane
Andrew)
AGENCY: Social Security Administration, HHS.
ACTION: Interim final rules with request for comments.
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SUMMARY: Some supplemental security income (SSI) recipients who were
victims of Hurricane Andrew in south Florida have not been able to
replace or repair their damaged homes due to circumstances beyond their
control. This means that some SSI recipients will have resources
(insurance money) in amounts that will disqualify them for SSI benefits
if held for periods exceeding the maximum 18-month period provided in
regulations at Sec. 416.1232. Since Hurricane Andrew occurred in August
1992, some SSI recipients could become ineligible as early as March
1994. We are codifying in regulations, interim final rules which
provide additional time for victims of Hurricane Andrew to make
arrangements to effect repair or replacement of excluded property
without interruption of their SSI benefits.
DATES: Effective Date: This rule is effective March 17, 1994.
Comments
To be sure that your comments are considered, we must receive them
no later than May 16, 1994.
ADDRESSES: Comments should be submitted in writing to the Commissioner
of Social Security, Department of Health and Human Services, P.O. Box
1585, Baltimore, MD 21235, or delivered to 3-B-1 Operations Building,
6401 Security Boulevard, Baltimore, MD 21235, between 8 a.m. and 4:30
p.m. on regular business days. Alternately, you may submit comments by
telefax to (410) 966-0869.
FOR FURTHER INFORMATION CONTACT: Henry D. Lerner, Legal Assistant,
Office of Regulations, Social Security Administration, 6401 Security
Boulevard, Baltimore, MD 21235, (410) 965-1762.
SUPPLEMENTARY INFORMATION: In August 1992, Hurricane Andrew devastated
south Florida causing damage estimated in excess of $18 billion.
According to published reports, of the 47,000 homes destroyed, 32,000
are still uninhabitable. Only 10 percent of 140,000 damaged homes have
been rebuilt or repaired because the number of contractors available to
rebuild homes is steadily decreasing.
We estimate that approximately 450 SSI recipients, who were victims
of Hurricane Andrew, have received payments from private insurance
companies for the repair or replacement of their property, but because
of the extent of the devastation, they have not yet been able to repair
or replace their homes and property.
The regulations at Sec. 416.1205(c) provide that SSI recipients can
have no more than $2,000 in countable resources and SSI couples can
have no more than $3,000. The regulations at Sec. 416.1237 provide that
assistance received under the Disaster Relief and Emergency Assistance
Act or other assistance provided under a Federal statute because of a
catastrophe which is declared to be a major disaster by the President
of the United States or comparable assistance received from a State or
local government, or from a disaster assistance organization, is
excluded permanently under Sec. 416.1210 in determining countable
resources.
The regulations at Sec. 416.1232 complement the disaster assistance
exclusion by providing that cash or in-kind items for the repair or
replacement of lost, stolen, or damaged excluded resources are not
treated as resources for 9 months, plus one extension for a reasonable
period up to an additional 9 months for good cause if circumstances do
not permit repair or replacement within the initial 9-month period and
the individual intends to use the funds for repair or replacement.
Excluded resources generally include the individual's home,
household goods and personal effects, and the automobile, as are
described in Secs. 416.1212, 416.1216 and 416.1218 respectively.
Private insurance payments do not qualify as disaster assistance
and, therefore, cannot be permanently excluded. For some of these SSI
recipients, the maximum period of 18 months during which monies to
repair or replace excluded resources are not treated as resources is
about to expire. Because of the vast devastation caused by Hurricane
Andrew, these individuals have not been able to rebuild or repair their
homes. We estimate that, as early as March 1994, some of these
individuals will begin to lose SSI eligibility.
We propose interim final regulations to amend Sec. 416.1232(b) for
victims of Hurricane Andrew only, to extend the maximum 18-month period
during which cash or in-kind replacement received from any source for
purposes of repairing or replacing an excluded resource is not treated
as a resource:
For an additional 12 months as long as the individual
intends to repair or replace the property and good cause still exists
for not yet having done so.
Existing regulations for the exclusion of monies to repair or
replace an excluded resource have been adequate to cover past
situations, including other disasters. However, the damage caused by
Hurricane Andrew was so extensive and destroyed so much of the existing
infrastructure (e.g., governmental and public services and utilities,
construction and repair industry and equipment, etc.) that the current
maximum 18-month period, in this context, is not adequate. Many SSI
recipients hurt by Hurricane Andrew who have received insurance
settlements have not been able to rebuild or repair their homes or even
contract for those services. Through this regulatory change, we are
providing additional time for victims of this extraordinary disaster to
make arrangements to effect repair or replacement without interruption
in their SSI benefits.
During the extension period, we will make periodic contacts with
each individual to determine whether the individual still intends to
repair or replace the property and, if so, whether good cause for not
yet having done so still exists. We will obtain evidence to make these
determinations.
Regulatory Procedures
We are publishing these new SSI resource counting rules as interim
final rules with a request for comments instead of as proposed rules.
The Department, even when not required by statute, as a matter of
policy, generally follows the Administrative Procedure Act (APA) notice
of proposed rulemaking and public comment procedures specified in 5
U.S.C. 553 in the development of its regulations. The APA provides
exceptions to its notice and comment 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. After due consideration, we have determined that,
under 5 U.S.C. 553(b)(B), good cause exists for waiver of notice of
proposed rulemaking on these regulations because such procedures would
be contrary to the public interest. The process of notice and comment
rulemaking generally requires many months before culminating in a final
rule. If SSI recipients who are victims of Hurricane Andrew do not
receive the beneficial effect of this rule by March 1994, some will
lose their SSI eligibility. Since it is in the public interest that
these individuals continue to receive SSI benefits while they make
arrangements to repair or replace their excluded resources that have
been damaged or destroyed by Hurricane Andrew, we believe that the
public interest warrants immediate promulgation of these rules.
Accordingly, promulgation of these rules pursuant to notice and comment
rulemaking would be contrary to the public interest and thus may be
dispensed with pursuant to 5 U.S.C. 553(b)(B). However, we are asking
the public to comment on these interim final rules and will determine
if these regulations need revision on consideration of any comments
received.
Executive Order 12866
These interim final regulations do not meet the criteria for a
significant regulatory action under section 3(f) of E.O. 12866 and,
thus, are not subject to Office of Management and Budget (OMB) review
under E.O. 12866.
Paperwork Reduction Act of 1980
These interim final regulations do not contain reporting
requirements. However, they extend the initial regulation that did.
Inadvertently, we did not publish a narrative for that regulation
concerning the need for clearance by the Office of Management and
Budget (OMB). We would normally seek approval of the reporting
requirements contained in the initial regulation (under the Paperwork
Reduction Act) from OMB. We are not doing so in this situation because
we already have their clearance to collect this kind of information
using the SSA-795 (Statement of Claimant or Other Person), OMB Control
Number 0960-0045.
We expect that approximately 450 SSI recipients will be involved,
and that it will take them an estimated five minutes each to provide
this information. The annual burden for this reporting requirement is
estimated at 37.5 hours. The respondents are SSI recipients who have
excess countable resources as a result of the damage caused by
Hurricane Andrew.
Regulatory Flexibility Act
We certify that these interim final regulations will not have a
significant economic impact on a substantial number of small entities
because they affect eligibility for or the amount of SSI payments of
individuals. Therefore, a regulatory flexibility analysis as provided
in Public Law 96-354, the Regulatory Flexibility Act, is not required.
(Catalog of Federal Domestic Assistance Program No. 93.807,
Supplementary Security Income)
List of Subjects in 20 CFR Part 416
Administrative practice and procedure, Aged, Blind, Disability
benefits, Public assistance programs, Reporting and recordkeeping
requirements, Supplementary Security Income.
Dated: February 16, 1994.
Shirley Chater,
Commissioner of Social Security.
Approved: March 10, 1994.
Donna E. Shalala,
Secretary of Health and Human Services.
Part 416 of chapter III of title 20 of the Code of Federal
Regulations is amended to read as follows:
1. The authority citation for subpart L of part 416 continues to
read as follows:
Authority: Secs. 1102, 1602, 1611, 1612, 1613, 1614(f), 1621 and
1631 of the Social Security Act; 42 U.S.C. 1302, 1381a, 1382, 1382a,
1382b, 1382c(f), 1382j, and 1383; sec. 211 of Pub. L. 93-66, 87
Stat. 154.
2. Section 416.1232 is amended by revising paragraph (b) to read as
follows:
Sec. 416.1232 Replacement of lost, damaged, or stolen excluded
resources.
* * * * *
(b) The initial 9-month time period will be extended for a
reasonable period up to an additional 9 months where we find the
individual had good cause for not replacing or repairing the resource.
An individual will be found to have good cause when circumstances
beyond his or her control prevented the repair or replacement or the
contracting for the repair or replacement of the resource. If good
cause is found for an individual, any unused cash (and interest) is
counted as a resource beginning with the month after the good cause
extension period expires. Exception: For victims of Hurricane Andrew
only, the extension period for good cause may be extended for up to an
additional 12 months beyond the 9-month extension when we find that the
individual had good cause for not replacing or repairing an excluded
resource within the 9-month extension.
* * * * *
[FR Doc. 94-6158 Filed 3-16-94; 8:45 am]
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