[Federal Register Volume 70, Number 24 (Monday, February 7, 2005)]
[Rules and Regulations]
[Pages 6340-6345]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-2248]


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SOCIAL SECURITY ADMINISTRATION

20 CFR Part 416

[Regulation No. 16]
RIN 0960-AF84


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

AGENCY: Social Security Administration.

ACTION: Final rules.

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SUMMARY: We are revising 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 are eliminating 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 are changing our resource-counting rules in 
the SSI program by eliminating the dollar value limit for the exclusion 
of household goods and personal effects.

[[Page 6341]]

As a result, we will not count household goods and personal effects as 
resources when we decide whether a person can receive SSI benefits. 
Third, we are changing our rules for excluding an automobile in 
determining the resources of an SSI applicant or recipient. We will 
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 will have minimal effect on the outcome of SSI 
eligibility determinations.

DATES: These regulations are effective on March 9, 2005.
    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 Government Accountability 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 are making the following changes to our 
rules on determining income and resources under the SSI program.

Explanation of 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, therefore, simplifying 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 rarely 
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 making this change to simplify 
our rules and improve our work efficiency. This change will make our 
rules less intrusive and more protective of the dignity and privacy of 
claimants and beneficiaries, and will not significantly increase SSI 
program costs.
    We are removing 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 will 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 making any changes 
to our current rule in Sec.  416.1110(a). Situations where clothing 
constitutes wages are very uncommon.
    These rules remove references to clothing throughout subpart K, 
which explains how we count income. We also are updating the second 
example in

[[Page 6342]]

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, and 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 personal affairs. We are amending these rules as part of 
our efforts to simplify the SSI program.
    We are amending our regulations for household goods and personal 
effects by eliminating the dollar value limit and by excluding from 
countable resources all:
     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
     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 will interpret the word ``reasonable'' in section 
1613(a)(2)(A) of the Act in terms other than a specific dollar limit. 
The reasonable value will instead be based on the uses and 
characteristics of the item. Our current rules on household goods and 
personal effects 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 is unreasonable.
    Currently, Sec.  416.1216(c) provides for totally excluding a 
wedding ring and an engagement ring, and household goods and personal 
effects required because of a person's physical condition. We are 
expanding 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 rules 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 will 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 are also amending 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 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 will still be considered countable resources and subject 
to the limits in Sec.  416.1205. Thus, the exclusion for household 
goods and personal effects will not apply to such items that have 
investment value.
    Our experience in administering the SSI program suggests that the 
change we are making will affect the eligibility of only a few 
applicants and recipients. However, this change will simplify our rules 
and improve our work efficiency without significantly increasing 
program costs. It will 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 unnecessarily puts a negative face 
on the SSI program without achieving any corresponding gain in program 
integrity or payment accuracy. It also will 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:
     It is necessary for employment;
     It is necessary for the medical treatment of a specific or 
regular medical problem;
     It is modified for a handicapped person; or

[[Page 6343]]

     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 are amending 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 are revising Sec.  416.1210(c) to exclude from resources an 
automobile that is used for transportation as provided in Sec.  
416.1218. We are also changing 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 are also removing 
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 
simplifying 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 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 interpretation of ``reasonable'' will 
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 will 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 change will have a negligible effect on program costs and will 
simplify administration of the exclusion. It will 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.

Public Comments

    On January 6, 2004, we published proposed rules in the Federal 
Register at 69 FR 554 and provided a 60-day period for interested 
parties to comment. We received comments from 49 individuals and 20 
organizations. Because some of the comments received were quite 
detailed, we have condensed, summarized or paraphrased them in the 
discussion below. We have tried to present all views adequately and to 
carefully address all of the issues raised by the commenters that are 
within the scope of the proposed rules.
    Fifty-nine of the commenters fully support the proposed rules and 
have not requested any additional changes in the regulations. Most of 
these commenters cited ``simplification of the SSI rules'' and 
``reducing the burden on the public'' as the reasons for their support 
of the proposed rules.
    The remaining commenters raised the following issues that are 
within the scope of the proposed rules.
    Comment: Several commenters supported the proposed regulations but 
recommended a change to the automobile exclusion. We proposed to 
exclude one automobile regardless of value if it is used for 
transportation by the SSI eligible individual or a member of that 
individual's household. The commenters recommended inserting language 
which would also permit exclusion of one automobile if SSA determines 
that the automobile is being used by a person who lives outside the 
household to help the SSI eligible individual. The commenters state 
that this would address the situation in which the automobile is never 
used by the SSI eligible individual or any member of the household but 
it is used by a person outside the household to run errands for the 
eligible individual.
    Response: After careful consideration, we decided not to adopt this 
suggested change. The Social Security Act provides an exclusion for an 
automobile of reasonable value. Since 1985, our interpretation of 
reasonable value has been based on the premise that the excluded 
automobile is used to provide necessary transportation for the 
individual or a member of the individual's household. If an automobile 
is not used to provide transportation for the individual or members of 
the individual's household, it is not excluded from resources. Limiting 
the exclusion to an automobile used to provide transportation for the 
individual or a household member is appropriate because it links the 
exclusion of the automobile with use of the automobile by the person 
who owns the automobile or by a member of his or her household. In 
addition, the revised rules will permit an exclusion of the automobile 
if a person residing outside the individual's household uses the 
automobile to provide transportation for the individual or a household 
member.
    Comment: One individual disagreed with our proposed rule for the 
automobile exclusion because the rule does not limit the dollar value 
of the automobile being excluded. The commenter stated that such a rule 
would not be well-received by the public.
    Response: After careful consideration, we have decided not to make 
any change based on this comment. Under our revised rules, we are 
simplifying the procedures for determining whether an automobile is 
excluded. However, we are not making any change to the exclusion on the 
basis of a dollar limit. We have excluded automobiles used for 
necessary transportation regardless of value since 1985. After nearly 
20 years of experience with excluding automobiles regardless of value, 
we have not found that this approach has caused concern in the general 
public. In

[[Page 6344]]

addition, our effort to simplify the rules for this exclusion would be 
negated by adding a requirement to determine the value of excluded 
automobiles which in many situations would require determining the 
individual's equity in the automobile and the condition of the 
automobile.
    Comment: One individual expressed overall support for the proposed 
rules but recommended that artwork and antiques should not be excluded 
under the exclusion for household goods and personal effects. The 
commenter expressed concern that an applicant for SSI benefits could 
own valuable artwork or antiques and that there should be a limit on 
the value of such items.
    Response: After careful consideration, we have decided not to 
change the language of the exclusion for household goods and personal 
effects to specify that artwork and antiques should not be excluded. We 
do not believe such a change is necessary. Although these rules will 
eliminate the dollar limit for the exclusion of household goods and 
personal effects, they will still permit us to consider the resources 
of an individual who owns valuable items that are not considered as 
household goods or personal effects under our regulatory definition. 
Our experience of 30 years of administering the SSI program shows that 
household goods and personal effects rarely have substantial resale 
value, particularly once they are used. However, our rules will 
continue to recognize that individuals applying for SSI benefits may 
own items for investment purposes which may be quite valuable. Such 
items as gems, jewelry not held for family significance, and 
collectibles will still be considered as countable resources and be 
subject to the SSI resource limit. Artwork and antiques can fall within 
the category of collectibles, and, where they have been acquired or 
held for their investment value, such items will be countable 
resources. Although in our claims development process we will not 
routinely examine all of an individual's furniture and personal 
possessions to determine if any pieces are valuable artwork or 
antiques, we will have the regulatory authority to count such value 
items as resources when we become aware of such items.

Regulatory Procedures

Executive Order 12866, as Amended by Executive Order 13258

    The Office of Management and Budget (OMB) has reviewed these final 
rules in accordance with Executive Order 12866, as amended by Executive 
Order 13258. We have also determined that these final rules meet the 
plain language requirement of 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 
will affect only individuals. Thus, a regulatory flexibility analysis 
as provided in the Regulatory Flexibility Act, as amended, is not 
required.

Paperwork Reduction Act

    These final rules will 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: December 2, 2004.
Jo Anne B. Barnhart,
Commissioner of Social Security.


0
For the reasons set out in the preamble, we are amending 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]

0
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).


0
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.

0
3. Section 416.1103 is amended by revising the section 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 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.


[[Page 6345]]


    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 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]

0
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]

0
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).


0
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;
* * * * *

0
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.

0
8. Section 416.1218 is amended by revising paragraph (b)(1), removing 
paragraph (b)(2), redesignating paragraph (b)(3) as (b)(2) and revising 
it, 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. 05-2248 Filed 2-4-05; 8:45 am]
BILLING CODE 4191-02-P