[Federal Register Volume 61, Number 32 (Thursday, February 15, 1996)]
[Rules and Regulations]
[Pages 5943-5945]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-3406]



-----------------------------------------------------------------------


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: Final rules.

-----------------------------------------------------------------------

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 are modifying 
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.

EFFECTIVE DATE: These rules are effective February 15, 1996.

FOR FURTHER INFORMATION CONTACT: Regarding this Federal Register 
document--Henry D. Lerner, Legal Assistant, Division of Regulations and 
Rulings, Social Security Administration, 6401 Security Boulevard, 
Baltimore, MD 21235, (410) 965-1762; regarding eligibility or filing 
for benefits--our national toll-free number, 1-800-772-1213.

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 revising our regulations to 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 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.
    These regulations were published in the Federal Register (60 FR 
26387) as a notice of proposed rulemaking (NPRM) on May 17, 1995. 
Interested parties were given 60 days to submit comments. Public 
comments were received from two legal services organizations who were 
concerned about how the regulations would affect individuals who 
suffered losses in recent disasters. These comments raised an issue 
regarding how we will apply the additional 12-month extension. We 
address this issue by clarifying the scope of the regulation in the 
response below. With this clarification, we are adopting the 
regulations as proposed.
    Comment: The additional 12-month extension for not counting certain 
funds as a resource under these regulations should apply to individuals 
for whom the original 18-month noncounting period (9 months and 9-month 
good 

[[Page 5944]]
cause extension) has expired prior to the effective date of these 
regulations.
    Response: Prior to the promulgation of these rules, our regulations 
provided that cash or in-kind replacement received for purposes of 
repairing or replacing an excluded resource would not be counted as a 
resource for a maximum period of 18 continuous months, commencing with 
the month following the month of receipt. These rules provide, under 
certain circumstances, for an additional 12-month extension to the 
former maximum noncounting period, thereby establishing a new 30-month 
maximum period during which such cash or in-kind replacement will not 
be considered resources. The total noncounting period may not exceed 30 
months from the month of receipt because it is reasonable to expect 
individuals to begin rebuilding or repairing within that timeframe. We 
chose not to provide a full 12-month extension to individuals whose 
prior 18-month noncounting period had expired because to do so would 
provide a noncounting period in excess of the 30-month maximum 
established by this regulation.
    Therefore, if the original 18-month noncounting period (9 months 
plus 9-month good cause extension under Sec. 416.1232(b)) has expired 
prior to the effective date of these regulations, we will extend the 
period for not counting the funds as a resource if the requirements in 
Sec. 416.1232(c) are met, but only within the limits of the new 30-
month maximum (9-months plus 9-month good cause extension plus 12-month 
good cause extension provided under Sec. 416.1232(c)). The extension 
would be applicable with the first day of the month which immediately 
follows the month these regulations become effective, and will remain 
applicable for a period not to exceed the number of months remaining in 
the 30-month period that commences with the month following the month 
of receipt of the funds.
    For example, if the individual's 18-month noncounting period 
expired 6 months prior to the effective date of these regulations, we 
would extend the period for not counting the funds as resources 
prospectively for up to an additional 6 months. There will be no 
retroactive effect. The last month of the noncounting period cannot 
exceed the 30th (thirtieth) month following the month of receipt of any 
payment.

Regulatory Procedures

Executive Order 12866

    We have consulted with the Office of Management and Budget (OMB) 
and determined that these rules do not meet the criteria for a 
significant regulatory action under Executive Order 12866. Thus, they 
are not subject to OMB review.

Paperwork Reduction Act of 1980

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

Regulatory Flexibility Act

    We certify that these regulations will not have a significant 
economic impact on a substantial number of small entities because they 
affect eligibility for SSI payments of individuals. Therefore, a 
regulatory flexibility analysis as provided in Public Law 96-354, the 
Regulatory Flexibility Act, is not required.

Waiver of 30-Day Delay in Effective Date

    These new SSI resource regulations are effective on publication, 
rather than 30 days after publication. Section 702(a)(5) of the Social 
Security Act makes the regulations we prescribe subject to the 
rulemaking procedures established under section 553 of the 
Administrative Procedure Act (APA), 5 U.S.C. 553. Section 553(d) of the 
APA requires that the effective date of a substantive rule be no less 
than 30 days after its publication, except in cases of: Rules which 
grant or recognize an exemption or relieve a restriction; 
interpretative rules and statements of policy; or as otherwise provided 
by the Agency for good cause found and published with the rule.
    In accordance with 5 U.S.C. 553(d)(1), these rules grant or 
recognize an exemption or relieve a restriction because under certain 
circumstances, they remove from consideration as resources for a 
period, cash or in-kind replacement received for the repair or 
replacement of certain lost or damaged property. Furthermore, we have 
determined that under 5 U.S.C. 553(d)(3), good cause exists for 
dispensing with the minimum 30-day period between the publication date 
and the effective date. A delay in the application of these rules may 
result in the loss of SSI benefits for certain individuals who have 
been unable to repair or replace certain property lost or damaged as a 
result of a presidentially-declared disaster. We believe that making 
available to these individuals the relief provided by these rules as 
quickly as possible is good cause sufficient to dispense with the 
minimum 30-day period prescribed by 5 U.S.C. 553(d). Accordingly, these 
rules are effective on publication.

(Catalog of Federal Domestic Assistance Program No. 96.006, 
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: February 2, 1996.
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:

PART 416--[AMENDED]

Subpart L--[Amended]

    1. The authority citation for subpart L of part 416 is revised to 
read as follows:

    Authority: Secs. 702(a)(5), 1602, 1611, 1612, 1613, 1614(f), 
1621, and 1631 of the Social Security Act (42 U.S.C. 902(a)(5), 
1381a, 1382, 1382a, 1382b, 1382c(f), 1382j, and 1383); sec. 211, 
Pub. L. 93-66, 87 Stat. 154 (42 U.S.C. 1382 note).

    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.

* * * * *
    (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. 

[[Page 5945]]

    (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.
* * * * *
[FR Doc. 96-3406 Filed 2-14-96; 8:45 am]
BILLING CODE 4190-29-P