[Federal Register Volume 69, Number 3 (Tuesday, January 6, 2004)]
[Proposed Rules]
[Pages 554-558]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-60]


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SOCIAL SECURITY ADMINISTRATION

20 CFR Part 416

RIN 0960-AF84


Determining Income and Resources under the Supplemental Security 
Income (SSI) Program

AGENCY: Social Security Administration.

ACTION: Proposed rules.

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SUMMARY: We propose to revise our regulations that explain how we 
determine an individual's income and resources under the supplemental 
security income (SSI) program in order to achieve three program 
simplifications. First, we propose to eliminate clothing from the 
definition of income and from the definition of in-kind support and 
maintenance. As a result, we generally will not count gifts of clothing 
as income when we decide whether a person can receive SSI benefits or 
when we compute the amount of the benefits. Second, we propose to 
change our resource-counting rules in the SSI program by eliminating 
the dollar value limit for the exclusion of household goods and 
personal effects. As a result, we would not count household goods and 
personal effects as resources when we decide whether a person can 
receive SSI benefits. Third, we propose to change our rules for 
excluding an automobile in determining the resources of an SSI 
applicant or recipient. We propose to exclude one automobile (the 
``first'' automobile) from resources if it is used for transportation 
for the individual or a member of the individual's household, without 
consideration of its value. These changes will simplify our rules, 
making them less cumbersome to administer and easier for the public to 
understand and follow. Our experience of nearly 30 years of processing 
SSI claims indicates that these simplifications would have minimal 
effect on the outcome of SSI eligibility determinations.

DATES: To be sure that we consider your comments, we must receive them 
by March 8, 2004.

ADDRESSES: You may give us your comments by: using our Internet site 
facility (i.e., Social Security Online) at http://policy.ssa.gov/pnpublic.nsf/LawsRegs or the Federal eRulemaking Portal: http://www.regulations.gov; e-mail to [email protected]; telefax to (410) 
966-2830; or letter to the Commissioner of Social Security, P.O. Box 
17703, Baltimore, Maryland 21235-7703. You may also deliver them to the 
Office of Regulations, Social Security Administration, 100 Altmeyer 
Building, 6401 Security Boulevard, Baltimore, Maryland 21235-6401, 
between 8 a.m. and 4:30 p.m. on regular business days. Comments are 
posted on our Internet site, or you may inspect them on regular 
business days by making arrangements with the contact person shown in 
this preamble.

Electronic Version

    The electronic file of this document is available on the date of 
publication in the Federal Register at http://www.gpoaccess.gov/fr/index.html. It is also available on the Internet site for SSA, Social 
Security Online, at http://policy.ssa.gov/pnpublic.nsf/LawsRegs.

FOR FURTHER INFORMATION CONTACT: Robert Augustine, Social Insurance 
Specialist, Office of Regulations, Social Security Administration, 100 
Altmeyer Building, 6401 Security Boulevard, Baltimore, MD 21235-6401, 
(410) 965-0020 or TTY (410) 966-5609. For information on eligibility or 
filing for benefits, call our national toll-free number, 1-800-772-1213 
or TTY 1-800-325-0778, or visit our Internet site, Social Security 
Online, at http://www.socialsecurity.gov.

SUPPLEMENTARY INFORMATION:

Background

    The basic purpose of the SSI program (title XVI of the Social 
Security Act (the Act)) is to ensure a minimum level of income to 
people who are age 65 or older, or blind or disabled, and who have 
limited income and resources. The law provides that payments can be 
made only to people who have income and resources below specified 
amounts. Therefore, the amount of income and resources a person has is 
a major factor in deciding whether the person can receive SSI benefits 
and in computing the amount of the benefits.
    The General Accounting Office (GAO) has reported that annual costs 
to the Federal government for administering means-tested Federal 
programs are significant and that eligibility determination activities 
make up a substantial portion of these costs (Means-Tested Programs: 
Determining Financial Eligibility is Cumbersome and Can Be Simplified, 
GAO-02-58, November 2, 2001 available at http://www.gao.gov). In 
particular, the GAO cited the variations and complexity of Federal 
financial eligibility rules as contributing to processes that are often 
duplicative and cumbersome for staff workers (including state and local 
caseworkers) and for those who apply for assistance. In order to 
streamline our eligibility determination process, as well as make our 
financial eligibility rules more consistent with those of other means-
tested Federal programs, we propose to make the following changes to 
our rules on determining income and resources under the SSI program.

[[Page 555]]

Explanation of Proposed Changes

A. Elimination of Clothing from the Definitions of Income and In-kind 
Support and Maintenance

    Section 1612 of the Act defines income as both earned income and 
unearned income, including support and maintenance furnished in cash or 
in kind. Under our current rules, income may include anything you 
receive in cash or in kind that you can use to meet your needs for 
food, clothing, and shelter. Both earned income and unearned income can 
include items received in kind. Generally, we value in-kind items at 
their current market value. However, we have special rules for valuing 
food, clothing, or shelter that is received as unearned income.
    In-kind support and maintenance is unearned income in the form of 
food, clothing, or shelter that is given to a person or that the person 
receives because someone else pays for it. Section 1612(a)(2)(A) of the 
Act provides that if an eligible individual receives in-kind support 
and maintenance, his or her SSI payment may be reduced by up to one-
third of the monthly Federal benefit rate. To determine whether the 
one-third reduction applies, we must ask claimants and beneficiaries a 
lengthy series of questions about their living arrangements and 
household expenses. We also must obtain similar information from the 
homeowner or head of the household, who often is not a claimant or 
recipient.
    The complexity of the rules for valuing in-kind support and 
maintenance results in reporting requirements that are difficult for 
the public to understand and follow. We are proposing to simplify the 
SSI program by eliminating clothing from the definition of income and 
from the definition of in-kind support and maintenance. Clothing is one 
of the basic sustenance needs, along with food and shelter. However, 
unlike food and shelter, clothing generally is not received every 
month. Items of clothing are more likely to be received infrequently 
and sporadically, and they generally have no substantial financial 
value. In addition, our attempts to discover and assign a value to 
gifts of clothing are not only administratively burdensome, but have 
been viewed as harsh and demeaning and as providing a disincentive for 
family members to help needy relatives.
    After 30 years of administering the SSI program, our experience 
shows that clothing received as in-kind support and maintenance almost 
never affects an individual's eligibility for SSI or the amount of 
benefits. Thus, questioning individuals about items as personal as 
basic clothing may be seen as intrusive without achieving any 
substantial program goal or enhancing program integrity. We are 
proposing this change to simplify our rules and improve our work 
efficiency. This change would make our rules less intrusive and more 
protective of the dignity and privacy of claimants and beneficiaries, 
and would not significantly increase SSI program costs.
    We propose to remove the specific reference to clothing from our 
broad definition of income in Sec.  416.1102, which covers both earned 
and unearned income. This will permit us to disregard gifts of clothing 
when we apply the special rules for valuing in-kind support and 
maintenance. Counting gifts of clothing puts a negative face on the SSI 
program without advancing any substantial program goal and incurs 
administrative costs.
    There will be one situation where we still would be required to 
consider clothing as income. This situation could occur when an 
individual receives clothing from an employer that we must count as 
wages under section 1612(a)(1)(A) of the Act. Wages are the same for 
SSI purposes as for the earnings test in the Social Security retirement 
program. Under the earnings test, wages may include the value of food, 
clothing, or shelter, or other items provided instead of cash. We refer 
to these items as in-kind earned income. Because we are required by the 
Act to count the value of these items as income, we are not proposing 
any changes to our current rule in Sec.  416.1110(a). Situations where 
clothing constitutes wages are very uncommon.
    These proposed rules would remove references to clothing throughout 
subpart K, which explains how we count income. We also are updating the 
second example in Sec.  416.1103(g) to reflect that SSI eligibility is 
now based on an individual's income, resources, and other relevant 
circumstances in a month rather than in a calendar quarter. The change 
from a quarterly determination to a monthly determination, which is 
explained in Sec.  416.420, was effective April 1, 1982 pursuant to 
section 2341 of Public Law 97-35. This example was inadvertently 
overlooked when conforming changes were previously made.

B. Exclusion of Household Goods and Personal Effects

    Section 1613(a)(2)(A) of the Act provides that in determining the 
resources of an individual (and eligible spouse, if any) SSA will 
exclude household goods and personal effects to the extent that their 
total value does not exceed an amount that the Commissioner decides is 
reasonable. In interpreting ``reasonable'' value of household goods and 
personal effects, Sec.  416.1216(b) of our regulations provides for an 
exclusion of up to $2,000 of the total equity value. The amount in 
excess of $2,000 is counted against the resource limit, currently 
$2,000 for an individual and $3,000 for an individual and spouse.
    Section 416.1216(a) defines household goods as including household 
furniture, furnishings and equipment that are commonly found in or 
about a house and used in connection with the operation, maintenance 
and occupancy of the home. Also included are furniture, furnishings and 
equipment used in the functions and activities of home and family life 
as well as those items that are for comfort and accommodation. This 
section specifically defines personal effects as including clothing, 
jewelry, items of personal care, individual educational and 
recreational items. In addition, Sec.  416.1216(c) provides specific 
exclusions for a wedding ring, an engagement ring and equipment 
required because of a person's physical condition.
    To determine the equity value of household goods and personal 
effects, we ask the person for a list of household and personal items, 
the value of each, and what the individual owes on each. This process 
can be complex, difficult for the public to understand, and unduly 
intrusive into the person's affairs. We are proposing to amend these 
rules as part of our efforts to simplify the SSI program.
    We propose to amend our regulations for household goods and 
personal effects by eliminating the dollar value limit and by excluding 
from countable resources all:
    [sbull] Household goods if they are items of personal property, 
found in or near a home, that are used on a regular basis, or items 
needed by the householder for maintenance, use and occupancy of the 
premises as a home; and
    [sbull] Personal effects if they are items of personal property 
that ordinarily are worn or carried by the individual, or are articles 
that otherwise have an intimate relation to the individual.
    Thus, we would be interpreting the word ``reasonable'' in section 
1613(a)(2)(A) of the Act in terms other than a specific dollar limit. 
The reasonable value would instead be based on the uses and 
characteristics of the item. Our current rules on household goods and 
personal effects

[[Page 556]]

reflect our view that it is reasonable to totally exclude certain items 
of personal property because they are rarely of significant value or 
are intimately related to the individual and his or her particular 
needs. Accordingly, we have determined that requiring conversion of 
such items for subsistence needs would be unreasonable.
    Currently, Sec.  416.1216(c) provides for totally excluding a 
wedding ring and an engagement ring, and household goods and personal 
effect items required because of a person's physical condition. We 
propose to expand this approach generally to household goods and 
personal effects so that they may be totally excluded from resources 
because our experience in 30 years of administering the SSI program 
shows that these items almost never have any substantial value, 
particularly once they are used.
    These proposed rules would amend Sec.  416.1216 to define and 
identify household goods and personal effects that we will not count as 
resources. Included in the list of excluded personal effects are items 
of cultural or religious significance since these items have an 
intimate relationship to an individual. The list of exclusions also 
includes items required due to an individual's impairment. This would 
allow for exclusion of items required because of any impairment, not 
just physical impairments. For example, our experience has shown that 
children and adults with learning disabilities use personal computers 
to assist them with schoolwork and other daily activities. This change 
will allow us to exclude items such as personal computers from 
countable resources.
    We also propose to amend Sec.  416.1210(b) by referring to Sec.  
416.1216 for the definition of household goods and personal effects 
that we will not count as resources.
    While simplifying the SSI program, our proposed changes continue to 
recognize that individuals applying for SSI may own items for 
investment purposes which may be quite valuable. Such items as gems, 
jewelry that is not worn or held for family significance, and 
collectibles would still be considered countable resources and subject 
to the limits in Sec.  416.1205. Thus, the proposed exclusion for 
household goods and personal effects would not apply to such items that 
have investment value.
    Our experience in administering the SSI program suggests that the 
change we are proposing would affect the eligibility of few applicants 
and recipients. However, this proposed change would simplify our rules 
and improve our work efficiency without significantly increasing 
program costs. It would make our rules less intrusive and more 
protective of the dignity of applicants and recipients. This intrusion 
into the privacy of a person's home puts an unnecessary negative face 
on the SSI program without achieving any corresponding gain in program 
integrity or payment accuracy. It also would more accurately reflect 
the reality that all SSI applicants and recipients need household goods 
and personal effects to perform activities of daily living and maintain 
quality of life. Accordingly, we believe it would be unreasonable to 
require applicants and recipients to convert these items to cash in 
order to meet their subsistence needs. The resale value of typical 
household items is minimal after the item has been used. Although it 
could be expensive to replace certain household items, these items 
would be worth very little if the individual tried to resell them to 
get cash for subsistence needs.

C. Exclusion of an Automobile from Resources

    Section 1613(a)(2)(A) of the Act provides that, in determining the 
resources of an individual (and eligible spouse, if any) for SSI 
purposes, SSA will exclude an automobile to the extent that its value 
does not exceed an amount that the Commissioner of Social Security 
decides is reasonable. Current regulations at Sec.  416.1218 define an 
``automobile'' as a passenger car or other vehicle used to provide 
necessary transportation.
    In interpreting ``reasonable'' value, Sec.  416.1218(b)(1) provides 
that an automobile is totally excluded regardless of value if it meets 
any of the four following criteria:
    [sbull] It is necessary for employment;
    [sbull] It is necessary for the medical treatment of a specific or 
regular medical problem;
    [sbull] It is modified for a handicapped person; or
    [sbull] It is necessary because of certain factors to perform 
essential daily activities.
    If no automobile can be excluded based on its use, one automobile 
is excluded to the extent its current market value does not exceed 
$4,500. See Sec.  416.1218(b)(2). Additional automobiles are counted as 
nonliquid resources to the extent of their equity value. See Sec.  
416.1218(b)(3).
    We propose to amend our rules to exclude one automobile from 
resources regardless of its value if it is used for transportation for 
the individual or a member of the individual's household. We are doing 
so because our data establish that the vast majority of ``first'' 
automobiles owned by SSI recipients are currently excluded based on one 
of the four transportation criteria set out in Sec.  416.1218(b)(1). In 
addition, there is no indication that the automobiles which are not 
covered by the special circumstances represent significant resources. 
Based on quality assurance data for 1998, in approximately 98 percent 
of those SSI cases involving automobile ownership, the value of one car 
was completely excluded. Anecdotal data from SSA claims representatives 
support the 1998 quality assurance data.
    We propose to revise Sec.  416.1210(c) to exclude from resources an 
automobile that is used for transportation as provided in Sec.  
416.1218. We also propose to change Sec.  416.1218(b) to exclude 
totally one automobile regardless of value if it is used for 
transportation for the individual or a member of the individual's 
household and to eliminate the existing four specific reasons for 
exclusion. We also propose to delete Sec.  416.1218(c), which contains 
the definition of the current market value of an automobile.
    Under current policy, we virtually always exclude one automobile 
for each individual or couple applying for or receiving SSI. Our aim in 
proposing to simplify the automobile rules is to achieve essentially 
the same outcome by automatically excluding one automobile used for 
transportation for each individual or couple without unnecessary claims 
development.
    The Act states that we will exclude an automobile of ``reasonable'' 
value. We have previously interpreted the word ``reasonable'' in terms 
of the uses and needs of disabled individuals and in terms of dollar 
limits. Specifically, the preamble to the final regulation which 
increased the exclusion of the automobile value to $4,500 on July 24, 
1979 (44 FR 43265) stated that we had ``concluded that that there are 
special circumstances which justify entirely excluding an automobile. 
For example, if the automobile is needed for employment or medical 
treatment or if it has been modified for use by a handicapped person, 
we will exclude it without regard to value.'' Since October 22, 1985 
(50 FR 42687), the regulations also provide for total exclusion of an 
automobile if, due to certain factors, it is necessary for 
transportation to perform essential daily activities. Our experience 
shows that virtually all SSI claimants and recipients who have 
automobiles need them for transportation under the circumstances listed 
above.
    It should be noted that our proposed interpretation of 
``reasonable'' would

[[Page 557]]

not eliminate the requirement to develop the value of second or 
additional automobiles. Nor will the ``first'' automobile be excluded 
if it is not used for transportation. In those cases where a vehicle is 
inoperable, or operable but not used at all, or used only for 
recreation (e.g., a dune buggy), it would still be valued according to 
current rules. We believe it would be unreasonable to exclude from 
resources the value of a vehicle that is not used for transportation.
    The proposed change would have a negligible affect on program costs 
and would simplify administration of the exclusion. It would eliminate 
the need for SSA claims representatives to ask the SSI recipient if 
his/her vehicle meets one of the four specific exclusion criteria or 
otherwise determine the value of the vehicle.

Clarity of These Regulations

    Executive Order (E.O.) 12866, as amended by E.O. 13258, requires 
each agency to write all rules in plain language. In addition to your 
substantive comments on these rules, we invite your comments on how to 
make these rules easier to understand. For example:
    [sbull] Have we organized the material to suit your needs?
    [sbull] Are the requirements in the rules clearly stated?
    [sbull] Do the rules contain technical language or jargon that is 
unclear?
    [sbull] Would a different format (grouping and order of sections, 
use of headings, paragraphing) make the rules easier to understand?
    [sbull] Would more (but shorter) sections be better?
    [sbull] Could we improve clarity by adding tables, lists, or 
diagrams?
    [sbull] What else could we do to make the rules easier to 
understand?

Regulatory Procedures

Executive Order 12866, as Amended by Executive Order 13258

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

Regulatory Flexibility Act

    We certify that these proposed regulations would not have a 
significant economic impact on a substantial number of small entities, 
because they would affect only individuals. Thus, a regulatory 
flexibility analysis as provided in the Regulatory Flexibility Act, as 
amended, is not required.

Paperwork Reduction Act

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

(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 (SSI).

    Dated: October 1, 2003.
Jo Anne B. Barnhart,
Commissioner of Social Security.
    For the reasons set out in the preamble, we propose to amend 
subparts K and L of part 416 of chapter III of title 20 of the Code of 
Federal Regulations as follows:

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

Subpart K--[Amended]

    1. The authority citation for subpart K of part 416 continues 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 416.1102 is revised to read as follows:


Sec.  416.1102  What is income?

    Income is anything you receive in cash or in kind that you can use 
to meet your needs for food and shelter. Sometimes income also includes 
more or less than you actually receive (see Sec.  416.1110 and Sec.  
416.1123(b)). In-kind income is not cash, but is actually food or 
shelter, or something you can use to get one of these.
    3. Section 416.1103 is amended by revising the heading, the 
introductory text, paragraphs (a)(3), (a)(4), (a)(5) introductory text, 
(b)(2), (b)(3) introductory text, the examples in paragraph (g), and 
the introductory text and example 1 of paragraph (j) to read as 
follows:


Sec.  416.1103  What is not income?

    Some things you receive are not income because you cannot use them 
as food or shelter, or use them to obtain food or shelter. In addition, 
what you receive from the sale or exchange of your own property is not 
income; it remains a resource. The following are some items that are 
not income:
    (a) * * *
    (3) Assistance provided in cash or in kind (including food or 
shelter) under a Federal, State, or local government program whose 
purpose is to provide medical care or medical services (including 
vocational rehabilitation);
    (4) In-kind assistance (except food or shelter) provided under a 
nongovernmental program whose purpose is to provide medical care or 
medical services;
    (5) Cash provided by any nongovernmental medical care or medical 
services program or under a health insurance policy (except cash to 
cover food or shelter) if the cash is either:
* * * * *
    (b) * * *
    (2) In-kind assistance (except food or shelter) provided under a 
nongovernmental program whose purpose is to provide social services; or
    (3) Cash provided by a nongovernmental social services program 
(except cash to cover food or shelter) if the cash is either:
* * * * *
    (g) * * *
    Examples: If your daughter uses her own money to pay the grocer to 
provide you with food, the payment itself is not your income because 
you do not receive it. However, because of your daughter's payment, the 
grocer provides you with food; the food is in-kind income to you. 
Similarly, if you buy food on credit and your son later pays the bill, 
the payment to the store is not income to you, but the food is in-kind 
income to you. In this example, if your son pays for the food in a 
month after the month of purchase, we will count the in-kind income to 
you in the month in which he pays the bill. On the other hand, if your 
brother pays a lawn service to mow your grass, the payment is not 
income to you because the mowing cannot be used to meet your needs for 
food or shelter. Therefore, it is not in-kind income as defined in 
Sec.  416.1102.
* * * * *
    (j) Receipt of certain noncash items. Any item you receive (except 
shelter as defined in Sec.  416.1130 or food) which would be an 
excluded nonliquid resource (as described in subpart L of this part) if 
you kept it, is not income.

    Example 1: A community takes up a collection to buy you a 
specially equipped van, which is your only vehicle. The value of 
this gift is not income because the van does not provide you with 
food or shelter and will become an excluded nonliquid

[[Page 558]]

resource under Sec.  416.1218 in the month following the month of 
receipt.
* * * * *


Sec. Sec.  416.1104, 416.1121, 416.1124, 416.1130, 416.1133, 416.1140, 
416.1142, 416.1144, 416.1145, 416.1147, 416.1148, 416.1149, 
416.1157  [Amended]

    4. Remove the words ``food, clothing, or shelter'' and add, in 
their place, the words ``food or shelter'' in the following sections:
    a. Section 416.1104;
    b. Section 416.1121(b) and (h);
    c. Section 416.1124(c)(3);
    d. Section 416.1130(a) and (b);
    e. Section 416.1133(a);
    f. Section 416.1140(a)(1), (a)(2)(i), (a)(2)(ii), (b)(1), and 
(b)(2);
    g. Section 416.1142(b);
    h. Section 416.1144(b)(2);
    i. Section 416.1145;
    j. Section 416.1147(c) and (d)(1);
    k. Section 416.1148(b)(1) and (b)(2);
    l. Section 416.1149(c)(1)(i) and (c)(1)(ii); and
    m. Section 416.1157(b).

Subpart L--[Amended]

    5. The authority citation for subpart L of part 416 continues 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).

    6. Section 416.1210 is amended by revising paragraphs (b) and (c) 
to read as follows:


Sec.  416.1210  Exclusions from resources; general.

* * * * *
    (b) Household goods and personal effects as defined in Sec.  
416.1216;
    (c) An automobile, if used for transportation, as provided in Sec.  
416.1218;
* * * * *
    7. Section 416.1216 is revised to read as follows:


Sec.  416.1216  Exclusion of household goods and personal effects.

    (a) Household goods. (1) We do not count household goods as a 
resource to an individual (and spouse, if any) if they are:
    (i) Items of personal property, found in or near the home, that are 
used on a regular basis; or
    (ii) Items needed by the householder for maintenance, use and 
occupancy of the premises as a home.
    (2) Such items include but are not limited to: Furniture, 
appliances, electronic equipment such as personal computers and 
television sets, carpets, cooking and eating utensils, and dishes.
    (b) Personal effects. (1) We do not count personal effects as 
resources to an individual (and spouse, if any) if they are:
    (i) Items of personal property ordinarily worn or carried by the 
individual; or
    (ii) Articles otherwise having an intimate relation to the 
individual.
    (2) Such items include but are not limited to: Personal jewelry 
including wedding and engagement rings, personal care items, prosthetic 
devices, and educational or recreational items such as books or musical 
instruments. We also do not count as resources items of cultural or 
religious significance to an individual and items required because of 
an individual's impairment. However, we do count items that were 
acquired or are held for their value or as an investment because we do 
not consider these to be personal effects. Such items can include but 
are not limited to: Gems, jewelry that is not worn or held for family 
significance, or collectibles. Such items will be subject to the limits 
in Sec.  416.1205.
    8. Section 416.1218 is amended by revising paragraph (b)(1), 
removing paragraph (b)(2), revising and redesignating paragraph (b)(3) 
as (b)(2), and removing paragraph (c) to read as follows:


Sec.  416.1218  Exclusion of the automobile.

* * * * *
    (b) * * *
    (1) Total exclusion. One automobile is totally excluded regardless 
of value if it is used for transportation for the individual or a 
member of the individual's household.
    (2) Other automobiles. Any other automobiles are considered to be 
nonliquid resources. Your equity in the other automobiles is counted as 
a resource. (See Sec.  416.1201(c).)

[FR Doc. 04-60 Filed 1-5-04; 8:45 am]
BILLING CODE 4191-02-U