[Federal Register Volume 62, Number 143 (Friday, July 25, 1997)]
[Rules and Regulations]
[Pages 39933-39935]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-19478]


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SOCIAL SECURITY ADMINISTRATION

20 CFR Part 430

RIN 0960-AE52


Personnel

AGENCY: Social Security Administration (SSA).

ACTION: Final rule.

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SUMMARY: These final rules adopt regulations for SSA which contain the 
same policy as provided by current regulations of the U.S. Department 
of Health and Human Services (HHS) on indemnification of employees for 
judgments, verdicts or monetary awards. The Social Security 
Independence and Program Improvements Act (SSIPIA) of 1994 established 
the Social Security Administration as an independent agency in the 
executive branch of the United States Government effective March 31, 
1995 and vested general regulatory authority in the

[[Page 39934]]

Commissioner of Social Security. These regulations establish a new part 
430 in Title 20 of the Code of Federal Regulations.

EFFECTIVE DATE: These rules are effective July 25, 1997.

FOR FURTHER INFORMATION CONTACT: Suzanne DiMarino, Division of 
Regulations and Rulings, Social Security Administration, 6401 Security 
Boulevard, Baltimore, MD 21235, (410) 965-1769 for information about 
this rule. For information on eligibility or claiming benefits, call 
our national toll-free number, 1-800-772-1213.

SUPPLEMENTARY INFORMATION: Prior to March 31, 1995, SSA was an 
operating component of HHS and the general regulatory authority for SSA 
programs and administration was vested in the Secretary of Health and 
Human Services (the Secretary) based on section 1102 of the Social 
Security Act (the Act)(42 U.S.C. 1302). The SSIPIA established SSA as 
an independent agency in the Executive Branch of the Federal government 
effective March 31, 1995 and vested general regulatory authority in the 
Commissioner of Social Security (the Commissioner). Under Section 
106(b) of SSIPIA, HHS regulations in effect immediately prior to March 
31, 1995 which relate to functions now vested in the Commissioner by 
reason of SSA's independence, continue to apply to SSA until such time 
as they are modified, suspended, terminated or repealed by the 
Commissioner. SSA continues to administer the old-age, survivors, and 
disability insurance program under title II and the supplemental 
security income program under title XVI.
    These final rules adopt the same policy set out in 45 CFR part 36 
that was applicable to SSA when it was a component of HHS, and that has 
continued to remain applicable to SSA since its independence pursuant 
to section 106(b) of SSIPIA. The rules at 45 CFR part 36, entitled, 
Indemnification of HHS Employees, permit the indemnification of an 
employee for a verdict, judgment or other monetary award when the 
conduct giving rise to the verdict, judgment or award was taken within 
the scope of his or her employment.
    All changes from the HHS regulation are technical in nature and 
pertain to names, addresses, legal citations and paragraph 
designations. References contained in the HHS regulation to ``HHS'', 
``the Department'' or ``the Secretary'' have been changed to ``the 
Social Security Administration'' or ``the Commissioner'', as 
appropriate. The HHS regulation at 45 CFR part 36 will cease to have 
effect on SSA at the moment these rules become effective.

Electronic Version

    The electronic file of this document is available on the Federal 
Bulletin Board (FBB) at 9:00 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.

Regulatory Procedures

Justification for Final Rules

    This rule is being published as a final rule instead of as a 
proposed rule. Section 702(a)(5) of the Social Security Act (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. These procedures generally require publication of 
notice of the proposed rulemaking and the solicitation of comments from 
interested persons. However, the APA provides exceptions to 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 because such procedure would be unnecessary. This final 
regulation adopts as an SSA regulation the provisions of 45 CFR part 36 
without substantive change. Those provisions have remained applicable 
to the indemnification of SSA employees after the date SSA gained the 
status of an independent agency, pursuant to section 106(b) of Public 
Law 103-296. The differences in this regulation over that of 45 CFR 
part 36 are of form only and are necessary to adapt the former 
regulation to the operating structures of this agency. Accordingly, 
promulgation of this regulation pursuant to notice and comment 
rulemaking is unnecessary and may be dispensed with pursuant to 5 
U.S.C. 553(b)(B).

Waiver of 30-Day Delay in Effective Date

    This regulation is effective on publication, rather than effective 
30 days after publication. As indicated above, section 702(a)(5) of the 
Act makes the regulations we prescribe subject to the rulemaking 
procedures established under section 553 of the APA.
    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.
    Under 5 U.S.C. 553(d)(3), good cause exists for dispensing with the 
minimum 30 day period between publication date and effective date. As 
indicated above, this regulation adopts without change the substantive 
provisions of 45 CFR part 36.
    Pursuant to section 106(b) of Public Law 103-296, the provisions of 
part 36 remain applicable to SSA until such time as this regulation 
becomes effective. A 30-day delay in the effective date of this 
regulation would serve no purpose since during such delay, the 
identical provisions of part 36 would remain applicable. Accordingly, 
this regulation is effective on publication.

Executive Order 12866

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

Regulatory Flexibility Act

    SSA certifies that this final rule will not have a significant 
economic impact on a substantial number of small entities since it 
makes no changes in policy. Therefore, a regulatory flexibility 
analysis as provided in Public Law 96-354, the Regulatory Flexibility 
Act, is not required.

Paperwork Reduction Act

    This final rule imposes no additional reporting or recordkeeping 
requirements subject to OMB clearance.

(Catalog of Federal Domestic Assistance Program Nos. 96.001 Social 
Security-Disability Insurance; 96.002 Social Security--Retirement 
Insurance; 96.003 Social Security--Special Benefits for Persons Aged 
72 and Over; 96.004 Social Security--Survivors Insurance; 96.005 
Special Benefits for Disabled Coal Miners; 96.006 Supplemental 
Security Income; 96.007 Social Security--Research and Demonstration)

List of Subjects in 20 CFR Part 430

    Claims, Government employees.

    Dated: July 14, 1997.
John J. Callahan,
Acting Commissioner of Social Security.

    For reasons set out in the preamble, Chapter III of Title 20 of 
the Code of Federal Regulations is amended by adding the following:

[[Page 39935]]

PART 430--PERSONNEL

    Authority: Section 702(a)(5) of the Social Security Act (42 
U.S.C. 902(a)(5))

Indemnification of SSA Employees


Sec. 430.101  Policy.

    (a) The Social Security Administration (SSA) may indemnify, in 
whole or in part, its employees (which for the purpose of this 
regulation includes former employees) for any verdict, judgment or 
other monetary award which is rendered against any such employee, 
provided that the conduct giving rise to the verdict, judgment or award 
was taken within the scope of his or her employment with SSA and that 
such indemnification is in the interest of the United States, as 
determined by the Commissioner, or his or her designee, in his or her 
discretion.
    (b) SSA may settle or compromise a personal damage claim against 
its employee by the payment of available funds, at any time, provided 
the alleged conduct giving rise to the personal damage claim was taken 
within the scope of employment and that such settlement or compromise 
is in the interest of the United States, as determined by the 
Commissioner, or his or her designee, in his or her discretion.
    (c) Absent exceptional circumstances, as determined by the 
Commissioner or his or her designee, SSA will not entertain a request 
either to agree to indemnify or to settle a personal damage claim 
before entry of an adverse verdict, judgment or monetary award.
    (d) When an employee of SSA becomes aware that an action has been 
filed against the employee in his or her individual capacity as a 
result of conduct taken within the scope of his or her employment, the 
employee should immediately notify SSA that such an action is pending.
    (e) The employee may, thereafter, request either:
    (1) Indemnification to satisfy a verdict, judgment or award entered 
against the employee; or
    (2) Payment to satisfy the requirements of a settlement proposal. 
The employee shall submit a written request, with documentation 
including copies of the verdict, judgment, award or settlement 
proposal, as appropriate, to the Deputy Commissioner or other 
designated official, who shall thereupon submit to the General Counsel, 
in a timely manner, a recommended disposition of the request. The 
General Counsel shall also seek the views of the Department of Justice. 
The General Counsel shall forward the request, the Deputy 
Commissioner's or other designated official's recommended disposition, 
and the General Counsel's recommendation to the Commissioner or his or 
her designee for decision.
    (f) Any payment under this section either to indemnify an SSA 
employee or to settle a personal damage claim shall be contingent upon 
the availability of appropriated funds.

[FR Doc. 97-19478 Filed 7-24-97; 8:45 am]
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