[Federal Register Volume 68, Number 129 (Monday, July 7, 2003)]
[Rules and Regulations]
[Pages 40119-40125]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-16858]


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SOCIAL SECURITY ADMINISTRATION

20 CFR Parts 404 and 416

[Regulations Nos. 4 and 16]
RIN 0960-AF81


Elimination of Sanctions for Refusal of Vocational Rehabilitation 
Services Without Good Cause

AGENCY: Social Security Administration (SSA).

ACTION: Final rule.

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SUMMARY: We are amending our regulations to remove provisions

[[Page 40120]]

relating to the imposition of benefit sanctions on account of a 
beneficiary's refusal of rehabilitation services. We are making these 
changes to reflect the repeal of sections 222(b) and 1615(c) of the 
Social Security Act (the Act). Prior to their repeal, these sections of 
the Act authorized the Commissioner of Social Security to impose 
sanctions against the benefits of a disabled or blind beneficiary who 
refused, without good cause, to accept rehabilitation services made 
available by a State vocational rehabilitation (VR) agency. The Ticket 
to Work and Work Incentives Improvement Act of 1999 repealed these 
sections of the Act, effective January 1, 2001. We are amending our 
regulations by removing rules and related provisions that are obsolete 
as a result of the repeal of these sections of the Act to conform our 
regulations to the changes in the statute.

EFFECTIVE DATE: These rules are effective July 7, 2003.
    Electronic Version: The electronic file of this document is 
available on the date of publication in the Federal Register at http://www.access.gpo.gov/su_docs/aces/aces140.html. It is also available on 
the Internet site for SSA (i.e., Social Security Online): at ssa.gov.

FOR FURTHER INFORMATION CONTACT: Melvin Winer, Social Insurance 
Specialist, Office of Employment Support Programs, 107 Altmeyer 
Building, Social Security Administration, 6401 Security Boulevard, 
Baltimore, MD 21235-6401, e-mail to ssa.gov">regulations@ssa.gov, or telephone 
(410) 965-9175 or TTY (410) 966-5609 for information about these rules. 
For information on eligibility or filing for benefits, call our 
national toll-free numbers, 1-800-772-1213 or TTY 1-800-325-0778, or 
visit our Internet Web site, Social Security Online, at ssa.gov.

SUPPLEMENTARY INFORMATION: These regulations reflect amendments to the 
Act which affect the payment of Social Security benefits under title II 
of the Act and Supplemental Security Income (SSI) benefits based on 
disability or blindness under title XVI of the Act, as well as payments 
to State VR agencies and alternate participants under the VR 
reimbursement programs under titles II and XVI of the Act.

Background

Sections 222 and 1615 of the Social Security Act

    In general, sections 222(a) and 1615(a) of the Act require us to 
refer Social Security disability beneficiaries, as well as disabled or 
blind SSI beneficiaries ages 16-64, to the State VR agency (i.e., a 
State agency operating under a State plan for VR services approved 
under title I of the Rehabilitation Act of 1973, as amended) for 
necessary VR services. Sections 222(d) and 1615(d) and (e) of the Act 
authorize us to reimburse a State VR agency for the reasonable and 
necessary costs of VR services furnished beneficiaries in certain 
categories of cases. Based on authority provided under sections 
222(d)(2), 1615 and 1633 of the Act, our regulations on the VR 
reimbursement programs provide that if a State VR agency is unwilling 
to participate with respect to a beneficiary whom we referred to that 
agency (or if the State does not have an approved State plan for VR 
services), we may refer the beneficiary to an alternate participant for 
appropriate VR services, and may pay the alternate participant for the 
costs of services under the same conditions that would apply to a State 
VR agency.
    Prior to January 1, 2001, sections 222(b) and 1615(c) of the Act 
required that certain sanctions be imposed against benefits (i.e., 
deductions against Social Security benefits or a suspension of SSI 
benefits) if a beneficiary refused VR services without good cause. 
Section 222(b) of the Act required us to make deductions from the 
Social Security benefits of a disability beneficiary (as well as 
deductions from the benefits of family members in certain 
circumstances) for any month in which such beneficiary refuses without 
good cause to accept rehabilitation services available to him or her 
from a State VR agency. In general, section 1615(c) of the Act provided 
that an individual shall not be eligible for SSI benefits if the 
individual refuses without good cause to accept VR services for which 
he or she is referred under section 1615(a) of the Act. Sections 222(b) 
and 1615(c) of the Act were repealed, effective January 1, 2001, by 
amendments to the Act made by the Ticket to Work and Work Incentives 
Improvement Act of 1999.

The Ticket To Work and Work Incentives Improvement Act of 1999 (Public 
Law 106-170)

    On December 17, 1999, Public Law 106-170, the Ticket to Work and 
Work Incentives Improvement Act of 1999, became law. Section 101(a) of 
Public Law 106-170 added section 1148 of the Act to establish the 
Ticket to Work and Self-Sufficiency Program (Ticket to Work program). 
The purpose of the Ticket to Work program is to expand the universe of 
service providers available to beneficiaries with disabilities who are 
seeking employment services, VR services, and other support services to 
assist them in obtaining, regaining, and maintaining self-supporting 
employment.
    Under the Ticket to Work program, the Commissioner of Social 
Security may issue a ticket to Social Security disability beneficiaries 
and disabled or blind SSI beneficiaries for participation in the 
program. A beneficiary's participation in the program is voluntary. 
Each beneficiary has the option of using his or her ticket to obtain 
services from a provider known as an employment network or from a State 
VR agency. The beneficiary will choose the employment network or State 
VR agency, and the employment network or State VR agency will provide 
services. Employment networks will also be able to choose whom they 
serve. Our regulations implementing the Ticket to Work program are 
contained in 20 CFR part 411.
    Section 101(b) of Public Law 106-170 made certain conforming 
amendments to the provisions of sections 222 and 1615 of the Act. 
Sections 101(b)(1)(C) and (b)(2)(B) of this law eliminated the 
sanctions for refusal of VR services by repealing sections 222(b) and 
1615(c) of the Act, respectively. The repeal of these sections of the 
Act was effective January 1, 2001.
    Section 101(b)(1)(B) of Public Law 106-170 eliminated the 
requirement for referral of Social Security disability beneficiaries to 
State VR agencies by repealing section 222(a) of the Act. Section 
101(b)(2)(A) of this law amended section 1615(a) of the Act to 
eliminate the similar requirement that disabled or blind SSI 
beneficiaries ages 16-64 be referred to State VR agencies. These 
amendments to the Act take effect in a State when the Ticket to Work 
program is implemented in that State.
    We will publish at a later date in the Federal Register rules to 
reflect the amendments eliminating the requirements for the referral of 
beneficiaries to State VR agencies in those States in which the Ticket 
to Work program is implemented, as provided in sections 101(b), (c) and 
(d) of Public Law 106-170. Additionally, the use of alternate 
participants under the title II and title XVI VR reimbursement programs 
will be phased out in the States as the Ticket to Work program is 
implemented, as authorized under section 101(d)(5) of Public Law 106-
170. Under section 1148(d)(4)(B) of the Act and our regulations at 20 
CFR part 411, subpart J, alternate participants in the VR reimbursement 
programs may qualify to serve as employment networks under the Ticket 
to Work program when that program is implemented in their State.

[[Page 40121]]

Purpose and Scope of Changes to the Regulations

    In these final rules, we are amending our regulations to remove 
those rules and related provisions which are obsolete as a result of 
the repeal of sections 222(b) and 1615(c) of the Act. We are removing 
the provisions of our regulations which provide for the imposition of 
benefit sanctions for a beneficiary's refusal of VR services without 
good cause.
    In addition, we are amending our regulations on the VR 
reimbursement programs to remove the provisions which provide for 
payment to a State VR agency or alternate participant for services 
provided a beneficiary in a case where benefit sanctions are imposed 
because the beneficiary, without good cause, refused to continue to 
accept VR services or failed to cooperate in such a manner as to 
preclude his or her successful rehabilitation. As a result of the 
repeal of sections 222(b) and 1615(c) of the Act, the benefit sanctions 
no longer apply, and we have ceased making determinations as to whether 
a beneficiary had good cause for refusing to continue or cooperate in a 
VR program, effective January 1, 2001. Consequently, we are removing 
the rules providing for payments to State VR agencies or alternate 
participants under the VR reimbursement programs in cases where a 
beneficiary refuses to continue or cooperate in a VR program without 
good cause and benefit sanctions are imposed, since such cases can no 
longer occur after December 2000.
    These final rules only remove those provisions of our regulations 
which are obsolete as a result of the repeal of sections 222(b) and 
1615(c) of the Act. Some of the sections of our regulations affected by 
these final rules contain other provisions which require revision 
because of other amendments to the Act. For example, Sec. Sec.  
404.402(a), 416.1701 and 416.2040(b) contain provisions relating to 
benefit sanctions for refusal of VR services as well as provisions 
relating to the suspension of benefit payments for noncompliance with 
treatment for drug addiction or alcoholism. These latter provisions no 
longer apply as a result of amendments to the Act made by section 105 
of Public Law 104-121, the Contract with America Advancement Act of 
1996. While we are removing provisions relating to benefit sanctions 
for refusal of VR services, we are not, at this time, making other 
changes to conform our regulations to other amendments to the Act. We 
plan to publish in the Federal Register at a later date proposed rules 
to take account of the amendments to the Act made by section 105 of 
Public Law 104-121, relating to drug addiction and alcoholism, and will 
address the need for changes to Sec. Sec.  404.402(a), 416.1701 and 
416.2040(b) resulting from those amendments as a part of that 
regulatory initiative.
    Several provisions of the regulations which we are revising in 
order to remove references to a deduction from Social Security benefits 
on account of a beneficiary's refusal of VR services, also contain 
certain outdated, gender-specific references to a woman's failure to 
have a child in her care as another event causing a deduction to be 
made from Social Security benefits. In these final rules, we are making 
changes to update the latter provisions to eliminate the gender-
specific wording that refers only to a beneficiary who is a woman. We 
are making these changes to conform to Sec.  404.421 of our regulations 
which explains the conditions under which a deduction will be made from 
a person's wife's, husband's, mother's or father's benefits because he 
or she does not have a child in his or her care.

Changes to the Regulations

    In 20 CFR part 404, subpart E, we are removing Sec.  404.422, which 
contained the basic rules for making deductions from Social Security 
benefits because of a disability beneficiary's refusal to accept VR 
services without good cause. In addition, we are amending other 
sections of our regulations in 20 CFR part 404, subpart E, to remove 
references to section 222(b) of the Act or Sec.  404.422, or to remove 
language or paragraphs relating to deductions from Social Security 
benefits on account of a beneficiary's refusal of VR services without 
good cause. We are making these changes to Sec. Sec.  404.401(b), 
404.402(a), (b)(2) and (d)(4), 404.412(a)(1), 404.421(d), 404.423, 
404.425, 404.435(a)(2), 404.436, 404.437(a), and 404.458. In Sec. Sec.  
404.402(a), 404.436(b) and 404.437(a), we also are making changes to 
certain provisions to remove outdated, gender-specific references to a 
woman's failure to have care of a child as a cause for a deduction from 
benefits, to update and make these provisions consistent with Sec.  
404.421.
    In Sec.  404.902, we are removing and reserving paragraph (g), 
relating to determinations about a deduction from Social Security 
benefits because of a beneficiary's refusal to accept rehabilitation 
services. In addition, we are amending Sec.  404.1596(b)(2) to remove 
the provision providing for a suspension of Social Security benefits if 
a beneficiary refuses to accept VR services without a good reason.
    Sections 416.213, 416.1328, and 416.1715 set out the basic rules on 
ineligibility for, or the suspension of, SSI benefits because of a 
disabled or blind SSI beneficiary's refusal to accept VR services 
without good cause. We are removing these sections from our 
regulations.
    In Sec.  416.708, we are removing and reserving paragraph (i), 
relating to an SSI beneficiary's responsibility to report to us his or 
her refusal to accept VR services. We also are amending Sec.  416.1701 
to remove the references to a refusal of VR services. In addition, we 
are amending Sec.  416.2040(b) to remove the language discussing a 
refusal of VR services under section 1615 of the Act.
    In 20 CFR part 404, subpart V, and part 416, subpart V, we are 
removing Sec. Sec.  404.2113 and 416.2213, respectively, relating to 
payment for VR services provided a beneficiary in a case where benefit 
sanctions are imposed because the beneficiary, without good cause, 
refused to continue or cooperate in a VR program. We also are making 
conforming changes to Sec. Sec.  404.2101, 404.2102, 404.2103, 
404.2109, 404.2116 and 404.2117 to reflect the removal of Sec.  
404.2113, and to Sec. Sec.  416.2201, 416.2202, 416.2203, 416.2209, 
416.2216 and 416.2217 to reflect the removal of Sec.  416.2213.

Regulatory Procedures

Proceeding Directly to Final Rules

    Under section 702(a)(5) of the Act, 42 U.S.C. 902(a)(5), SSA 
follows the Administrative Procedure Act (APA) rulemaking procedures 
specified in 5 U.S.C. 553 in the development of its regulations. The 
APA provides exceptions to its notice and public comment procedures 
when an agency finds there is good cause for dispensing with such 
procedures on the basis that they are ``impracticable, unnecessary, or 
contrary to the public interest.'' See 5 U.S.C. 553(b)(B).
    We have determined that, under 5 U.S.C. 553(b)(B), good cause 
exists for dispensing with the notice and public comment procedures for 
the changes to the regulations described above. The changes merely 
conform our regulations to current law by removing rules and related 
provisions which are obsolete as a result of the repeal of sections 
222(b) and 1615(c) of the Act concerning sanctions for refusing 
rehabilitation services without good cause. These sections of the Act 
were repealed by sections 101(b)(1)(C) and (b)(2)(B) of Public Law 106-
170, effective January 1, 2001. Because the removal of obsolete

[[Page 40122]]

provisions from our regulations to reflect the repeal of these sections 
of the Act does not involve the exercise of discretionary rulemaking 
authority, we find that it is unnecessary to publish proposed rules and 
offer the public the opportunity to comment before we publish final 
rules. Moreover, because our existing regulations are inconsistent with 
current law and could mislead the public, we also find that further 
delay in amending these regulations, to allow for public comment, would 
be contrary to the public interest.

Making the Final Rules Effective Upon Publication

    Section 553(d) of 5 U.S.C. provides that, with certain exceptions, 
the effective date of a ``substantive rule'' shall not be less than 30 
days after its publication. We find that good cause exists for an 
exception for these final rules. As noted above, these final rules 
merely reflect the statutory changes made by sections 101(b)(1)(C) and 
(b)(2)(B) of Public Law 106-170. For the reasons discussed in the 
section above entitled ``Proceeding Directly to Final Rules,'' we find 
that delaying the effective date for 30 days after publication would 
also be unnecessary and contrary to the public interest. See 5 U.S.C. 
553(d).

Executive Order 12866

    The Office of Management and Budget (OMB) has reviewed these final 
rules in accordance with Executive Order 12866, as amended by Executive 
Order 13258.

Regulatory Flexibility Act

    We certify that these final rules will not have a significant 
economic impact on a substantial number of small entities because they 
primarily affect only individuals, and those entities that voluntarily 
entered into a contractual agreement with us. Therefore, a regulatory 
flexibility analysis as provided in the Regulatory Flexibility Act, as 
amended, is not required.

Paperwork Reduction Act

    These final regulations impose no reporting or recordkeeping 
requirements that require OMB clearance.

(Catalog of Federal Domestic Assistance Program Nos. 96.001, Social 
Security-Disability Insurance; 96.002, Social Security-Retirement 
Insurance; 96.004, Social Security-Survivors Insurance; and 96.006, 
Supplemental Security Income)

List of Subjects

20 CFR Part 404

    Administrative practice and procedure, Blind, Disability benefits, 
Old-age, Survivors and Disability Insurance, Reporting and 
recordkeeping requirements, Social Security, Vocational rehabilitation.

20 CFR Part 416

    Administrative practice and procedure, Aged, Blind, Disability 
benefits, Public assistance programs, Reporting and recordkeeping 
requirements, Supplemental Security Income (SSI), Vocational 
rehabilitation.

    Dated: April 9, 2003.
Jo Anne B. Barnhart,
Commissioner of Social Security.

0
For the reasons set out in the preamble, we are amending subparts E, J, 
P, and V of part 404 and subparts B, G, M, Q, T, and V of part 416 of 
chapter III of title 20 of the Code of Federal Regulations as set forth 
below:

PART 404--FEDERAL OLD-AGE, SURVIVORS AND DISABILITY INSURANCE 
(1950- )

Subpart E--[Amended]

0
1. The authority citation for subpart E of part 404 is revised to read 
as follows:

    Authority: Secs. 202, 203, 204(a) and (e), 205(a) and (c), 
216(l), 223(e), 224, 225, 702(a)(5), 1129A and 1147 of the Social 
Security Act (42 U.S.C. 402, 403, 404(a) and (e), 405(a) and (c), 
416(l), 423(e), 424a, 425, 902(a)(5), 1320a-8a and 1320b-17).

0
2. Amend Sec.  404.401 by revising paragraph (b)(5), removing paragraph 
(b)(6), and redesignating paragraph (b)(7) as paragraph (b)(6) to read 
as follows:


Sec.  404.401  Deduction, reduction, and nonpayment of monthly benefits 
or lump-sum death payments.

* * * * *
    (b) * * *
    (5) Failure to report within the prescribed period earnings from 
work in employment or self-employment (see Sec.  404.453); or
* * * * *

0
3. Amend Sec.  404.402 by revising paragraph (a) introductory text, and 
paragraphs (b)(2) and (d)(4) to read as follows:


Sec.  404.402  Interrelationship of deductions, reductions, 
adjustments, and nonpayment of benefits.

    (a) Deductions, reductions, adjustment. Deductions because of 
earnings or work (see Sec. Sec.  404.415 and 404.417); failure to have 
a child ``in his or her care'' (see Sec.  404.421); as a penalty for 
failure to timely report noncovered work outside the United States, 
failure to report that he or she no longer has a child ``in his or her 
care,'' or failure to timely report earnings (see Sec. Sec.  404.451 
and 404.453); because of unpaid maritime taxes (see Sec.  404.457); or 
nonpayments because of drug addiction and alcoholism to individuals 
other than an insured individual who are entitled to benefits on the 
insured individual's earnings record are made:
* * * * *
    (b) * * *
    (2) Reduction of benefits because of entitlement to certain public 
disability benefits (see Sec.  404.408) is made before deduction under 
section 203 of the Act relating to work (see Sec. Sec.  404.415, 
404.417, 404.451, and 404.453) and failure to have care of a child (see 
Sec. Sec.  404.421 and 404.451).
* * * * *
    (d) * * *
    (4) Current deductions under Sec. Sec.  404.417 and 404.421;
* * * * *

0
4. Amend Sec.  404.412 by revising the title of the section and 
paragraph (a)(1) to read as follows:


Sec.  404.412  After my benefits are reduced for age when and how will 
adjustments to that reduction be made?

    (a) * * *
    (1) Months subject to deduction under Sec.  404.415 or Sec.  
404.417;
* * * * *

0
5. Amend Sec.  404.421 by revising the title of the section and 
paragraph (d) to read as follows:


Sec.  404.421  How are deductions made when a beneficiary fails to have 
a child in his or her care?

* * * * *
    (d) When a child is considered not entitled to benefits. For 
purposes of paragraphs (a) and (b) of this section, a person is 
considered not entitled to child's benefits for any month in which she 
or he is age 18 or over and is entitled to child's benefits because she 
or he is a full-time student at an educational institution. This 
paragraph applies to benefits for months after December 1964.


Sec.  404.222  [Removed]

0
6. Remove Sec.  404.422.

0
7. Amend Sec.  404.423 by revising the first sentence to read as 
follows:


Sec.  404.423  Manner of making deductions.

    Deductions provided for in Sec. Sec.  404.415, 404.417, and 404.421 
(as modified in Sec.  404.458) are made by withholding benefits (in 
whole or in part, depending upon the amount to be withheld) for each 
month in which an event causing a deduction occurred. * * *

0
8. Revise Sec.  404.425 to read as follows:

[[Page 40123]]

Sec.  404.425  Total amount of deductions where deduction events occur 
in more than 1 month.

    If a deduction event described in Sec. Sec.  404.415, 404.417, and 
404.421 occurs in more than 1 month, the total amount deducted from an 
individual's benefits is equal to the sum of the deductions for all 
months in which any such event occurred.

0
9. Amend Sec.  404.435 by revising paragraph (a)(2) to read as follows:


Sec.  404.435  Excess earnings; months to which excess earnings cannot 
be charged.

    (a) * * *
    (2) In which he or she was considered not entitled to benefits (due 
to noncovered work outside the United States or no child in care as 
described in Sec.  404.436);
* * * * *

0
10. In Sec.  404.436, revise paragraph (b) and remove paragraphs (c), 
(d) and (e) to read as follows:


Sec.  404.436  Excess earnings; months to which excess earnings cannot 
be charged because individual is deemed not entitled to benefits.

* * * * *
    (b) Failure to have a child in his or her care (as described in 
Sec.  404.421).

0
11. Amend Sec.  404.437 by revising paragraph (a) to read as follows:


Sec.  404.437  Excess earnings; benefit rate subject to deductions 
because of excess earnings.

* * * * *
    (a) After reduction for the maximum (see Sec. Sec.  404.403 and 
404.404). The rate as reduced for the maximum as referred to in this 
paragraph is the one applicable to remaining entitled beneficiaries 
after exclusion of beneficiaries deemed not entitled under Sec.  
404.436 (due to a deduction for engaging in noncovered remunerative 
activity outside the United States or failure to have a child in his or 
her care);
* * * * *

0
12. Amend Sec.  404.458 by revising the first sentence to read as 
follows:


Sec.  404.458  Limiting deductions where total family benefits payable 
would not be affected or would be only partly affected.

    Notwithstanding the provisions described in Sec. Sec.  404.415, 
404.417, 404.421, 404.451, and 404.453 about the amount of the 
deduction to be imposed for a month, no such deduction is imposed for a 
month when the benefits payable for that month to all persons entitled 
to benefits on the same earnings record and living in the same 
household remain equal to the maximum benefits payable to them on that 
earnings record. * * *

Subpart J--[Amended]

0
13. The authority citation for subpart J of part 404 continues to read 
as follows:

    Authority: Secs. 201(j), 204(f), 205(a), (b), (d)-(h), and (j), 
221, 225, and 702(a)(5) of the Social Security Act (42 U.S.C. 
401(j), 404(f), 405(a), (b), (d)-(h), and (j), 421, 425, and 
902(a)(5)); 31 U.S.C. 3720A; sec. 5, Pub. L. 97-455, 96 Stat. 2500 
(42 U.S.C. 405 note); secs. 5, 6(c)-(e), and 15, Pub. L. 98-460, 98 
Stat. 1802 (42 U.S.C. 421 note).


Sec.  404.902  [Amended]

0
14. In Sec.  404.902, remove and reserve paragraph (g).

Subpart P--[Amended]

0
15. The authority citation for subpart P of part 404 continues to read 
as follows:

    Authority: Secs. 202, 205(a), (b), and (d)-(h), 216(i), 221(a) 
and (i), 222(c), 223, 225, and 702(a)(5) of the Social Security Act 
(42 U.S.C. 402, 405(a), (b), and (d)-(h), 416(i), 421(a) and (i), 
422(c), 423, 425, and 902(a)(5)); sec. 211(b), Pub. L. 104-193, 110 
Stat. 2105, 2189.

0
16. Amend Sec.  404.1596 by revising paragraphs (b)(2)(i) and 
(b)(2)(ii) and removing paragraph (b)(2)(iii) to read as follows:


Sec.  404.1596  Circumstances under which we may suspend your benefits 
before we make a determination.

* * * * *
    (b) * * *
    (2) * * *
    (i) You have failed to respond to our request for additional 
medical or other evidence and we are satisfied that you received our 
request and our records show that you should be able to respond; or
    (ii) We are unable to locate you and your checks have been returned 
by the Post Office as undeliverable.
* * * * *

Subpart V--[Amended]

0
17. The authority citation for subpart V of part 404 continues to read 
as follows:

    Authority: Secs. 205(a), 222, and 702(a)(5) of the Social 
Security Act (42 U.S.C. 405(a), 422, and 902(a)(5)).

0
18. Revise Sec.  404.2101 to read as follows:


Sec.  404.2101  General.

    Section 222(d) of the Social Security Act authorizes the transfer 
from the Federal Old-Age and Survivors Insurance Trust Fund and the 
Federal Disability Insurance Trust Fund of such sums as may be 
necessary to pay for the reasonable and necessary costs of vocational 
rehabilitation (VR) services provided certain disabled individuals 
entitled under section 223, 225(b), 202(d), 202(e) or 202(f) of the 
Social Security Act. The purpose of this provision is to make VR 
services more readily available to disabled individuals and ensure that 
savings accrue to the Federal Old-Age and Survivors Insurance Trust 
Fund and the Federal Disability Insurance Trust Fund. Payment will be 
made for VR services provided on behalf of such an individual in cases 
where--
    (a) The furnishing of the VR services results in the individual's 
completion of a continuous 9-month period of substantial gainful 
activity (SGA) as specified in Sec. Sec.  404.2110 through 404.2111; or
    (b) The individual continues to receive disability payments from 
us, even though his or her disability has ceased, because of his or her 
continued participation in an approved VR program which we have 
determined will increase the likelihood that he or she will not return 
to the disability rolls (see Sec.  404.2112).

0
19. Amend Sec.  404.2102 by revising the second sentence of the 
introductory text and paragraph (f) to read as follows:


Sec.  404.2102  Purpose and scope.

    * * * Payment will be provided for VR services provided on behalf 
of disabled individuals under one or more of the provisions discussed 
in Sec.  404.2101.
* * * * *
    (f) Section 404.2112 describes when payment will be made to a VR 
agency or alternate participant because an individual's disability 
benefits are continued based on his or her participation in a VR 
program which we have determined will increase the likelihood that he 
or she will not return to the disability rolls.
* * * * *


Sec.  404.2103  [Amended]

0
20. Amend Sec.  404.2103 by removing the definition of Good cause for 
VR refusal.


Sec.  404.2109  [Amended]

0
21. Amend Sec.  404.2109 by removing paragraph (c) and redesignating 
paragraphs (d) through (h) as paragraphs (c) through (g).


Sec.  404.2113  [Removed]

0
22. Remove Sec.  404.2113.

[[Page 40124]]

Sec.  404.2116  [Amended]

0
23. In Sec.  404.2116, remove paragraph (c).

0
24. Amend Sec.  404.2117 by revising the introductory text and 
paragraph (f) to read as follows:


Sec.  404.2117  What costs will be paid.

    In accordance with section 222(d) of the Social Security Act, the 
Commissioner will pay the State VR agency or alternate participant for 
the VR services described in Sec.  404.2114 which were provided during 
the period described in Sec.  404.2115 and which meet the criteria in 
Sec.  404.2111 or Sec.  404.2112, but subject to the following 
limitations:
* * * * *
    (f) Payment for VR services or costs may be made under more than 
one of the VR payment provisions described in Sec. Sec.  404.2111 and 
404.2112 of this subpart and similar provisions in Sec. Sec.  416.2211 
and 416.2212 of subpart V of part 416. However, payment will not be 
made more than once for the same VR service or cost; and
* * * * *

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

Subpart B--[AMENDED]

0
25. The authority citation for subpart B of part 416 is revised to read 
as follows:

    Authority: Secs. 702(a)(5), 1110(b), 1602, 1611, 1614, 1619(a), 
1631, and 1634 of the Social Security Act (42 U.S.C. 902(a)(5), 
1310(b), 1381a, 1382, 1382c, 1382h(a), 1383, and 1383c); secs. 211 
and 212, Pub. L. 93-66, 87 Stat. 154 and 155 (42 U.S.C. 1382 note); 
sec. 502(a), Pub. L. 94-241, 90 Stat. 268 (48 U.S.C. 1681 note); 
sec. 2, Pub. L. 99-643, 100 Stat. 3574 (42 U.S.C. 1382h note).


Sec.  416.213  [Removed]

0
26. Remove Sec.  416.213.

Subpart G--[Amended]

0
27. The authority citation for subpart G of part 416 continues to read 
as follows:

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


Sec.  416.1328  [Amended]

0
28. In Sec.  416.708, remove and reserve paragraph (i).

Subpart M--[Amended]

0
29. The authority citation for subpart M of part 416 is revised to read 
as follows:

    Authority: Secs. 702(a)(5), 1129A, 1611-1614, 1619, and 1631 of 
the Social Security Act (42 U.S.C. 902(a)(5), 1320a-8a, 1382-1382c, 
1382h, and 1383).


Sec.  416.1328  [Removed]

0
30. Remove Sec.  416.1328.

Subpart Q--[Amended]

0
31. The authority citation for subpart Q of part 416 continues to read 
as follows:

    Authority: Secs. 702(a)(5), 1611(e)(3), 1615, and 1631 of the 
Social Security Act (42 U.S.C. 902(a)(5), 1382(e)(3), 1382d, and 
1383).

0
32. In Sec.  416.1701, revise the third and fourth sentences to read as 
follows:


Sec.  416.1701  Scope of subpart.

    * * * This subpart also describes the conditions under which you 
can refuse treatment after we have referred you. If these conditions 
are not met, this subpart describes how your benefits are affected when 
you refuse treatment.


Sec.  416.1715  [Removed]

0
33. Remove Sec.  416.1715.

Subpart T--[Amended]

0
34. The authority citation for subpart T of part 416 continues to read 
as follows:

    Authority: Secs. 702(a)(5), 1616, 1618, and 1631 of the Social 
Security Act (42 U.S.C. 902(a)(5), 1382e, 1382g, and 1383); sec. 
212, Pub. L. 93-66, 87 Stat. 155 (42 U.S.C. 1382 note); sec. 8(a), 
(b)(1)-(b)(3), Pub. L. 93-233, 87 Stat. 956 (7 U.S.C. 612c note, 
1431 note and 42 U.S.C. 1382e note); secs. 1(a)-(c) and 2(a), 
2(b)(1), 2(b)(2), Pub. L. 93-335, 88 Stat. 291 (42 U.S.C. 1382 note, 
1382e note).

0
35. Amend Sec.  416.2040 by revising paragraph (b) to read as follows:


Sec.  416.2040  Limitations on eligibility.

* * * * *
    (b) Ineligible persons. No person who is ineligible for a Federal 
benefit for any month under sections 1611(e)(1)(A), (2), (3), or (f) of 
the Act (failure to file; refuses treatment for drug addiction or 
alcoholism; outside the United States) or other reasons (other than the 
amount of income) shall be eligible for such State supplementation for 
such month.
* * * * *

Subpart V--[Amended]

0
36. The authority citation for subpart V of part 416 is revised to read 
as follows:

    Authority: Secs. 702(a)(5), 1615, 1631(d)(1) and (e), and 
1633(a) of the Social Security Act (42 U.S.C. 902(a)(5), 1382d, 
1383(d)(1) and (e), and 1383b(a)).

0
37. Revise Sec.  416.2201 to read as follows:


Sec.  416.2201  General.

    In general, sections 1615(d) and (e) of the Social Security Act 
(the Act) authorize payment from the general fund for the reasonable 
and necessary costs of vocational rehabilitation (VR) services provided 
certain disabled or blind individuals who are eligible for supplemental 
security income (SSI) benefits, special SSI eligibility status, or 
federally administered State supplementary payments. In this subpart, 
such benefits, status, or payments are referred to as disability or 
blindness benefits (see Sec.  416.2203). Subject to the provisions of 
this subpart, payment may be made for VR services provided an 
individual during a month(s) for which the individual is eligible for 
disability or blindness benefits, including the continuation of such 
benefits under section 1631(a)(6) of the Act, or for which the 
individual's disability or blindness benefits are suspended (see Sec.  
416.2215). Paragraphs (a) and (b) of this section describe the cases in 
which the State VR agencies and alternate participants can be paid for 
the VR services provided such an individual under this subpart. The 
purpose of sections 1615(d) and (e) of the Act is to make VR services 
more readily available to disabled or blind individuals and ensure that 
savings accrue to the general fund. Payment will be made for VR 
services provided on behalf of such an individual in cases where--
    (a) The furnishing of the VR services results in the individual's 
completion of a continuous 9-month period of substantial gainful 
activity (SGA) as specified in Sec. Sec.  416.2210 through 416.2211; or
    (b) The individual continues to receive disability or blindness 
benefits, even though his or her disability or blindness has ceased, 
under section 1631(a)(6) of the Act because of his or her continued 
participation in an approved VR program which we have determined will 
increase the likelihood that he or she will not return to the 
disability or blindness rolls (see Sec.  416.2212).

0
38. Amend Sec.  416.2202 by revising the second sentence of the 
introductory text and paragraph (f) to read as follows:


Sec.  416.2202  Purpose and scope.

    * * * Payment will be provided for VR services provided on behalf 
of disabled or blind individuals under one or more of the provisions 
discussed in Sec.  416.2201.
* * * * *
    (f) Section 416.2212 describes when payment will be made to a VR 
agency

[[Page 40125]]

or alternate participant because an individual's disability or 
blindness benefits are continued based on his or her participation in a 
VR program which we have determined will increase the likelihood that 
he or she will not return to the disability rolls.
* * * * *


Sec.  416.2203  [Amended]

0
39. Amend Sec.  416.2203 by removing the definition of Good cause for 
VR refusal.


Sec.  416.2209  [Amended]

0
40. Amend Sec.  416.2209 by removing paragraph (c) and redesignating 
paragraphs (d) through (h) as paragraphs (c) through (g).


Sec.  416.2213  [Removed]

0
41. Remove Sec.  416.2213.


Sec.  416.2216  [Amended]

0
42. In Sec.  416.2216, remove paragraph (c).

0
43. Amend Sec.  416.2217 by revising the introductory text and 
paragraph (f) to read as follows:


Sec.  416.2217  What costs will be paid.

    In accordance with section 1615(d) and (e) of the Social Security 
Act, the Commissioner will pay the State VR agency or alternate 
participant for the VR services described in Sec.  416.2214 which were 
provided during the period described in Sec.  416.2215 and which meet 
the criteria in Sec.  416.2211 or Sec.  416.2212, but subject to the 
following limitations:
* * * * *
    (f) Payment for VR services or costs may be made under more than 
one of the VR payment provisions described in Sec. Sec.  416.2211 and 
416.2212 of this subpart and similar provisions in Sec. Sec.  404.2111 
and 404.2112 of subpart V of part 404. However, payment will not be 
made more than once for the same VR service or cost; and
* * * * *
[FR Doc. 03-16858 Filed 7-3-03; 8:45 am]
BILLING CODE 4191-02-P