Supplemental Security Income for the Aged, Blind, and Disabled; Replacement of Lost, Damaged, or Stolen Excluded Resources (Hurricane Andrew)

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Social Security Administration

20 CFR Part 416

[Regulations No. 16]

RIN 0960-AD85.

Supplemental Security Income for the Aged, Blind, and Disabled;

Replacement of Lost, Damaged, or Stolen Excluded Resources (Hurricane

Andrew)

AGENCY: Social Security Administration, HHS.

ACTION: Interim final rules with request for comments.

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SUMMARY: Some supplemental security income (SSI) recipients who were

victims of Hurricane Andrew in south Florida have not been able to

replace or repair their damaged homes due to circumstances beyond their

control. This means that some SSI recipients will have resources

(insurance money) in amounts that will disqualify them for SSI benefits

if held for periods exceeding the maximum 18-month period provided in

regulations at Sec. 416.1232. Since Hurricane Andrew occurred in August

1992, some SSI recipients could become ineligible as early as March

1994. We are codifying in regulations, interim final rules which

provide additional time for victims of Hurricane Andrew to make

arrangements to effect repair or replacement of excluded property

without interruption of their SSI benefits.

DATES: Effective Date: This rule is effective March 17, 1994.

Comments

To be sure that your comments are considered, we must receive them

no later than May 16, 1994.

ADDRESSES: Comments should be submitted in writing to the Commissioner

of Social Security, Department of Health and Human Services, P.O. Box

1585, Baltimore, MD 21235, or delivered to 3-B-1 Operations Building,

6401 Security Boulevard, Baltimore, MD 21235, between 8 a.m. and 4:30

p.m. on regular business days. Alternately, you may submit comments by

telefax to (410) 966-0869.

FOR FURTHER INFORMATION CONTACT: Henry D. Lerner, Legal Assistant,

Office of Regulations, Social Security Administration, 6401 Security

Boulevard, Baltimore, MD 21235, (410) 965-1762.

SUPPLEMENTARY INFORMATION: In August 1992, Hurricane Andrew devastated

south Florida causing damage estimated in excess of $18 billion.

According to published reports, of the 47,000 homes destroyed, 32,000

are still uninhabitable. Only 10 percent of 140,000 damaged homes have

been rebuilt or repaired because the number of contractors available to

rebuild homes is steadily decreasing.

We estimate that approximately 450 SSI recipients, who were victims

of Hurricane Andrew, have received payments from private insurance

companies for the repair or replacement of their property, but because

of the extent of the devastation, they have not yet been able to repair

or replace their homes and property.

The regulations at Sec. 416.1205(c) provide that SSI recipients can

have no more than $2,000 in countable resources and SSI couples can

have no more than $3,000. The regulations at Sec. 416.1237 provide that

assistance received under the Disaster Relief and Emergency Assistance

Act or other assistance provided under a Federal statute because of a

catastrophe which is declared to be a major disaster by the President

of the United States or comparable assistance received from a State or

local government, or from a disaster assistance organization, is

excluded permanently under Sec. 416.1210 in determining countable

resources.

The regulations at Sec. 416.1232 complement the disaster assistance

exclusion by providing that cash or in-kind items for the repair or

replacement of lost, stolen, or damaged excluded resources are not

treated as resources for 9 months, plus one extension for a reasonable

period up to an additional 9 months for good cause if circumstances do

not permit repair or replacement within the initial 9-month period and

the individual intends to use the funds for repair or replacement.

Excluded resources generally include the individual's home,

household goods and personal effects, and the automobile, as are

described in Secs. 416.1212, 416.1216 and 416.1218 respectively.

Private insurance payments do not qualify as disaster assistance

and, therefore, cannot be permanently excluded. For some of these SSI

recipients, the maximum period of 18 months during which monies to

repair or replace excluded resources are not treated as resources is

about to expire. Because of the vast devastation caused by Hurricane

Andrew, these individuals have not been able to rebuild or repair their

homes. We estimate that, as early as March 1994, some of these

individuals will begin to lose SSI eligibility.

We propose interim final regulations to amend Sec. 416.1232(b) for

victims of Hurricane Andrew only, to extend the maximum 18-month period

during which cash or in-kind replacement received from any source for

purposes of repairing or replacing an excluded resource is not treated

as a resource:

For an additional 12 months as long as the individual

intends to repair or replace the property and good cause still exists

for not yet having done so.

Existing regulations for the exclusion of monies to repair or

replace an excluded resource have been adequate to cover past

situations, including other disasters. However, the damage caused by

Hurricane Andrew was so extensive and destroyed so much of the existing

infrastructure (e.g., governmental and public services and utilities,

construction and repair industry and equipment, etc.) that the current

maximum 18-month period, in this context, is not adequate. Many SSI

recipients hurt by Hurricane Andrew who have received insurance

settlements have not been able to rebuild or repair their homes or even

contract for those services. Through this regulatory change, we are

providing additional time for victims of this extraordinary disaster to

make arrangements to effect repair or replacement without interruption

in their SSI benefits.

During the extension period, we will make periodic contacts with

each individual to determine whether the individual still intends to

repair or replace the property and, if so, whether good cause for not

yet having done so still exists. We will obtain evidence to make these

determinations.

Regulatory Procedures

We are publishing these new SSI resource counting rules as interim

final rules with a request for comments instead of as proposed rules.

The Department, even when not required by statute, as a matter of

policy, generally follows the Administrative Procedure Act (APA) notice

of proposed rulemaking and public comment procedures specified in 5

U.S.C. 553 in the development of its regulations. The APA provides

exceptions to its notice and comment procedures when an agency finds

that there is good cause for dispensing with such procedures on the

basis that they are impracticable, unnecessary, or contrary to the

public interest. After due consideration, we have determined that,

under 5 U.S.C. 553(b)(B), good cause exists for waiver of notice of

proposed rulemaking on these regulations because such procedures would

be contrary to the public interest. The process of notice and comment

rulemaking generally requires many months before culminating in a final

rule. If SSI recipients who are victims of Hurricane Andrew do not

receive the beneficial effect of this rule by March 1994, some will

lose their SSI eligibility. Since it is in the public interest that

these individuals continue to receive SSI benefits while they make

arrangements to repair or replace their excluded resources that have

been damaged or destroyed by Hurricane Andrew, we believe that the

public interest warrants immediate promulgation of these rules.

Accordingly, promulgation of these rules pursuant to notice and comment

rulemaking would be contrary to the public interest and thus may be

dispensed with pursuant to 5 U.S.C. 553(b)(B). However, we are asking

the public to comment on these interim final rules and will determine

if these regulations need revision on consideration of any comments

received.

Executive Order 12866

These interim final regulations do not meet the criteria for a

significant regulatory action under section 3(f) of E.O. 12866 and,

thus, are not subject to Office of Management and Budget (OMB) review

under E.O. 12866.

Paperwork Reduction Act of 1980

These interim final regulations do not contain reporting

requirements. However, they extend the initial regulation that did.

Inadvertently, we did not publish a narrative for that regulation

concerning the need for clearance by the Office of Management and

Budget (OMB). We would normally seek approval of the reporting

requirements contained in the initial regulation (under the Paperwork

Reduction Act) from OMB. We are not doing so in this situation because

we already have their clearance to collect this kind of information

using the SSA-795 (Statement of Claimant or Other Person), OMB Control

Number 0960-0045.

We expect that approximately 450 SSI recipients will be involved,

and that it will take them an estimated five minutes each to provide

this information. The annual burden for this reporting requirement is

estimated at 37.5 hours. The respondents are SSI recipients who have

excess countable resources as a result of the damage caused by

Hurricane Andrew.

Regulatory Flexibility Act

We certify that these interim final regulations will not have a

significant economic impact on a substantial number of small entities

because they affect eligibility for or the amount of SSI payments of

individuals. Therefore, a regulatory flexibility analysis as provided

in Public Law 96-354, the Regulatory Flexibility Act, is not required.

(Catalog of Federal Domestic Assistance Program No. 93.807,

Supplementary 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, Supplementary Security Income.

Dated: February 16, 1994.

Shirley Chater,

Commissioner of Social Security.

Approved: March 10, 1994.

Donna E. Shalala,

Secretary of Health and Human Services.

Part 416 of chapter III of title 20 of the Code of Federal

Regulations is amended to read as follows:

1. The authority citation for subpart L of part 416 continues to

read as follows:

Authority: Secs. 1102, 1602, 1611, 1612, 1613, 1614(f), 1621 and

1631 of the Social Security Act; 42 U.S.C. 1302, 1381a, 1382, 1382a,

1382b, 1382c(f), 1382j, and 1383; sec. 211 of Pub. L. 93-66, 87

Stat. 154.

2. Section 416.1232 is amended by revising paragraph (b) to read as

follows:

Sec. 416.1232 Replacement of lost, damaged, or stolen excluded

resources.

* * * * *

(b) The initial 9-month time period will be extended for a

reasonable period up to an additional 9 months where we find the

individual had good cause for not replacing or repairing the resource.

An individual will be found to have good cause when circumstances

beyond his or her control prevented the repair or replacement or the

contracting for the repair or replacement of the resource. If good

cause is found for an individual, any unused cash (and interest) is

counted as a resource beginning with the month after the good cause

extension period expires. Exception: For victims of Hurricane Andrew

only, the extension period for good cause may be extended for up to an

additional 12 months beyond the 9-month extension when we find that the

individual had good cause for not replacing or repairing an excluded

resource within the 9-month extension.

* * * * *

[FR Doc. 94-6158 Filed 3-16-94; 8:45 am]

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