[Federal Register Volume 60, Number 95 (Wednesday, May 17, 1995)]
[Proposed Rules]
[Pages 26387-26388]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-12099]



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SOCIAL SECURITY ADMINISTRATION

20 CFR Part 416

[Regulations No. 16]
RIN 0960-AD87


Supplemental Security Income for the Aged, Blind, and Disabled; 
Extension of Time Period for Not Counting as Resources, Funds Received 
for Repair or Replacement of Damaged or Destroyed Excluded Resources in 
the Supplemental Security Income Program

AGENCY: Social Security Administration.

ACTION: Proposed rule.

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SUMMARY: In the past several years, portions of the United States have 
experienced natural disasters that have had unprecedented effects on 
supplemental security income (SSI) recipients. To provide us with the 
flexibility to deal with these and future occurrences, we propose to 
modify our current regulations regarding the period of time that cash 
and in-kind items received for the repair or replacement of certain 
destroyed or damaged excluded resources would not count toward the 
resource limit.

DATES: To be sure that your comments are considered, we must receive 
them no later than July 17, 1995.

ADDRESSES: Comments should be submitted in writing to the Commissioner 
of Social Security, P.O. Box 1585, Baltimore, MD 21235, sent by telefax 
to (410) 966-2830, sent by E-mail to ``[email protected]'' or 
delivered to 3-B-1 Operations Building, 6401 Security Boulevard, 
Baltimore, MD 21235, between 8:00 a.m. and 4:30 p.m. on regular 
business days.
    The electronic file of this document is available on the Federal 
Bulletin Board (FBB) at 9 a.m. on the date of publication in the 
Federal Register. To download the file, modem dial (202) 512-1387. The 
FBB instructions will explain how to download the file and the fee. 
This file is in WordPerfect and will remain on the FBB during the 
comment period.

FOR FURTHER INFORMATION CONTACT: Henry D. Lerner, Legal Assistant, 
Division of Regulations and Rulings, Social Security Administration, 
6401 Security Boulevard, Baltimore, MD 21235, (410) 965-1762.

SUPPLEMENTARY INFORMATION: 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 the SSI 
program 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. The regulations also provide for 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 from resources. For some 
SSI recipients affected by natural disasters, the maximum period of 18 
months during which monies received to repair or replace excluded 
resources are not treated as resources will not be sufficient and some 
of these individuals will consequently lose SSI and Medicaid 
eligibility.
    In the past several years, portions of the United States have 
experienced natural disasters that have had unprecedented effects on 
SSI recipients. In August 1992, Hurricane Andrew devastated south 
Florida causing damage estimated in excess of $18 billion. Because of 
the extent of the devastation, SSI recipients in the area were unable 
to use insurance payments to repair or replace their damaged property 
within the maximum 18-month period provided by regulations during which 
those payments would not be treated as resources. With the expiration 
of this period, the payments would have counted as resources for SSI 
purposes. On March 17, 1994 (59 FR 12544), we published interim final 
regulations with a request for comments which provided victims of 
Hurricane Andrew with an additional 12-month time period in which to 
repair or replace their property.
    History has shown that current regulations generally provide a 
sufficient time period for individuals to repair or replace their 
excluded resources destroyed or damaged by natural disasters. However, 
in the event disasters of the magnitude of Hurricane Andrew occur, we 
wish to have the flexibility in regulations to extend the period that 
payments or in-kind assistance for the repair or replacement of 
affected excluded resources will not count as resources.
    We are proposing regulations which provide us with the flexibility 
to provide individuals with additional time to repair or replace 
destroyed or damaged excluded resources when such disasters occur and 
certain other criteria are met. These proposed regulations will 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 counted as a resource for up to an additional 
12 months. This additional time period only applies in the case of 
presidentially declared major disasters as long as the individual 
intends to repair or replace the property and good cause still exists.

Regulatory Procedures

Executive Order 12866

    We have consulted with the Office of Management and Budget (OMB) 
and determined that this rule does not meet the criteria for a 
significant regulatory action under Executive Order 12866. Thus, it was 
not subject to OMB review.

Paperwork Reduction Act of 1980

    These proposed regulations impose no new reporting or recordkeeping 
requirements requiring OMB clearance.

Regulatory Flexibility Act

    We certify that these proposed regulations will not have a 
significant economic impact on a substantial number of small entities 
because they [[Page 26388]] 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, 
Supplemental 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, Supplemental Security Income.

    Dated: May 3, 1995.
Shirley S. Chater,
Commissioner of Social Security.

    Part 416 of Chapter III of Title 20 of the Code of Federal 
Regulations is amended as follows:
    1. The authority citation for subpart L of part 416 continues to 
read as follows:

PART 416--SUPPLEMENTAL SECURITY INCOME FOR THE AGED, BLIND, AND 
DISABLED

    Authority: Secs. 1102, 1602, 1611, 1612, 1613, 1614(f), 1621, 
and 1631 of the 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), by 
redesignating paragraph (c) as paragraph (d) and by adding a new 
paragraph (c), to read as follows:


Sec. 416.1232  Replacement of lost, damaged, or stolen excluded 
resources.

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    (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. The 9-month 
extension can only be granted if the individual intends to use the cash 
or in-kind replacement items to repair or replace the lost, stolen, or 
damaged excluded resource in addition to having good cause for not 
having done so. 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.
    (c) The time period described in paragraph (b) of this section 
(except the time period for individuals granted an additional extension 
under the Hurricane Andrew provision) may be extended for a reasonable 
period up to an additional 12 months in the case of a catastrophe which 
is declared to be a major disaster by the President of the United 
States if the excluded resource is geographically located within the 
disaster area as defined by the presidential order; the individual 
intends to repair or replace the excluded resource; and, the individual 
demonstrates good cause why he or she has not been able to repair or 
replace the excluded resource within the 18-month period.
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[FR Doc. 95-12099 Filed 5-16-95; 8:45 am]
BILLING CODE 4190-29-P