Supplemental Security Income for the Aged, Blind, and Disabled; Extension of Time Period for Not Counting as Resources, Funds Received for Repair or Replacement of Damaged or Destroyed Excluded Resources in the Supplemental Security Income Program

SOCIAL SECURITY ADMINISTRATION

20 CFR Part 416

[Regulations No. 16]

RIN 0960-AD87

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

Extension of Time Period for Not Counting as Resources, Funds Received

for Repair or Replacement of Damaged or Destroyed Excluded Resources in

the Supplemental Security Income Program

AGENCY: Social Security Administration.

ACTION: Final rules.

-----------------------------------------------------------------------

SUMMARY: In the past several years, portions of the United States have

experienced natural disasters that have had unprecedented effects on

supplemental security income (SSI) recipients. To provide us with the

flexibility to deal with these and future occurrences, we are modifying

our current regulations regarding the period of time that cash and in-

kind items received for the repair or replacement of certain destroyed

or damaged excluded resources would not count toward the resource

limit.

EFFECTIVE DATE: These rules are effective February 15, 1996.

FOR FURTHER INFORMATION CONTACT: Regarding this Federal Register

document--Henry D. Lerner, Legal Assistant, Division of Regulations and

Rulings, Social Security Administration, 6401 Security Boulevard,

Baltimore, MD 21235, (410) 965-1762; regarding eligibility or filing

for benefits--our national toll-free number, 1-800-772-1213.

SUPPLEMENTARY INFORMATION: 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 the SSI

program 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.

The regulations also provide for 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 from resources. For some

SSI recipients affected by natural disasters, the maximum period of 18

months during which monies received to repair or replace excluded

resources are not treated as resources will not be sufficient and some

of these individuals will consequently lose SSI and Medicaid

eligibility.

In the past several years, portions of the United States have

experienced natural disasters that have had unprecedented effects on

SSI recipients. In August 1992, Hurricane Andrew devastated south

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

the extent of the devastation, SSI recipients in the area were unable

to use insurance payments to repair or replace their damaged property

within the maximum 18-month period provided by regulations during which

those payments would not be treated as resources. With the expiration

of this period, the payments would have counted as resources for SSI

purposes. On March 17, 1994 (59 FR 12544), we published interim final

regulations with a request for comments which provided victims of

Hurricane Andrew with an additional 12-month time period in which to

repair or replace their property.

History has shown that current regulations generally provide a

sufficient time period for individuals to repair or replace their

excluded resources destroyed or damaged by natural disasters. However,

in the event disasters of the magnitude of Hurricane Andrew occur, we

wish to have the flexibility in regulations to extend the period that

payments or in-kind assistance for the repair or replacement of

affected excluded resources will not count as resources.

We are revising our regulations to provide us with the flexibility

to provide individuals with additional time to repair or replace

destroyed or damaged excluded resources when such disasters occur and

certain other criteria are met. These regulations will 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 counted as a resource for up to an additional

12 months. This additional time period only applies in the case of

Presidentially declared major disasters as long as the individual

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

These regulations were published in the Federal Register (60 FR

26387) as a notice of proposed rulemaking (NPRM) on May 17, 1995.

Interested parties were given 60 days to submit comments. Public

comments were received from two legal services organizations who were

concerned about how the regulations would affect individuals who

suffered losses in recent disasters. These comments raised an issue

regarding how we will apply the additional 12-month extension. We

address this issue by clarifying the scope of the regulation in the

response below. With this clarification, we are adopting the

regulations as proposed.

Comment: The additional 12-month extension for not counting certain

funds as a resource under these regulations should apply to individuals

for whom the original 18-month noncounting period (9 months and 9-month

good

[[Page 5944]]

cause extension) has expired prior to the effective date of these

regulations.

Response: Prior to the promulgation of these rules, our regulations

provided that cash or in-kind replacement received for purposes of

repairing or replacing an excluded resource would not be counted as a

resource for a maximum period of 18 continuous months, commencing with

the month following the month of receipt. These rules provide, under

certain circumstances, for an additional 12-month extension to the

former maximum noncounting period, thereby establishing a new 30-month

maximum period during which such cash or in-kind replacement will not

be considered resources. The total noncounting period may not exceed 30

months from the month of receipt because it is reasonable to expect

individuals to begin rebuilding or repairing within that timeframe. We

chose not to provide a full 12-month extension to individuals whose

prior 18-month noncounting period had expired because to do so would

provide a noncounting period in excess of the 30-month maximum

established by this regulation.

Therefore, if the original 18-month noncounting period (9 months

plus 9-month good cause extension under Sec. 416.1232(b)) has expired

prior to the effective date of these regulations, we will extend the

period for not counting the funds as a resource if the requirements in

Sec. 416.1232(c) are met, but only within the limits of the new 30-

month maximum (9-months plus 9-month good cause extension plus 12-month

good cause extension provided under Sec. 416.1232(c)). The extension

would be applicable with the first day of the month which immediately

follows the month these regulations become effective, and will remain

applicable for a period not to exceed the number of months remaining in

the 30-month period that commences with the month following the month

of receipt of the funds.

For example, if the individual's 18-month noncounting period

expired 6 months prior to the effective date of these regulations, we

would extend the period for not counting the funds as resources

prospectively for up to an additional 6 months. There will be no

retroactive effect. The last month of the noncounting period cannot

exceed the 30th (thirtieth) month following the month of receipt of any

payment.

Regulatory Procedures

Executive Order 12866

We have consulted with the Office of Management and Budget (OMB)

and determined that these rules do not meet the criteria for a

significant regulatory action under Executive Order 12866. Thus, they

are not subject to OMB review.

Paperwork Reduction Act of 1980

These regulations impose no new reporting or recordkeeping

requirements requiring OMB clearance.

Regulatory Flexibility Act

We certify that these regulations will not have a significant

economic impact on a substantial number of small entities because they

affect eligibility for SSI payments of individuals. Therefore, a

regulatory flexibility analysis as provided in Public Law 96-354, the

Regulatory Flexibility Act, is not required.

Waiver of 30-Day Delay in Effective Date

These new SSI resource regulations are effective on publication,

rather than 30 days after publication. Section 702(a)(5) of the Social

Security Act makes the regulations we prescribe subject to the

rulemaking procedures established under section 553 of the

Administrative Procedure Act (APA), 5 U.S.C. 553. Section 553(d) of the

APA requires that the effective date of a substantive rule be no less

than 30 days after its publication, except in cases of: Rules which

grant or recognize an exemption or relieve a restriction;

interpretative rules and statements of policy; or as otherwise provided

by the Agency for good cause found and published with the rule.

In accordance with 5 U.S.C. 553(d)(1), these rules grant or

recognize an exemption or relieve a restriction because under certain

circumstances, they remove from consideration as resources for a

period, cash or in-kind replacement received for the repair or

replacement of certain lost or damaged property. Furthermore, we have

determined that under 5 U.S.C. 553(d)(3), good cause exists for

dispensing with the minimum 30-day period between the publication date

and the effective date. A delay in the application of these rules may

result in the loss of SSI benefits for certain individuals who have

been unable to repair or replace certain property lost or damaged as a

result of a presidentially-declared disaster. We believe that making

available to these individuals the relief provided by these rules as

quickly as possible is good cause sufficient to dispense with the

minimum 30-day period prescribed by 5 U.S.C. 553(d). Accordingly, these

rules are effective on publication.

(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.

Dated: February 2, 1996.

Shirley S. Chater,

Commissioner of Social Security.

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

Regulations is amended as follows:

PART 416--[AMENDED]

Subpart L--[Amended]

1. The authority citation for subpart L of part 416 is revised 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 416.1232 is amended by revising paragraph (b), by

redesignating paragraph (c) as paragraph (d) and by adding a new

paragraph (c), 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. The 9-month

extension can only be granted if the individual intends to use the cash

or in-kind replacement items to repair or replace the lost, stolen, or

damaged excluded resource in addition to having good cause for not

having done so. 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.

[[Page 5945]]

(c) The time period described in paragraph (b) of this section

(except the time period for individuals granted an additional extension

under the Hurricane Andrew provision) may be extended for a reasonable

period up to an additional 12 months in the case of a catastrophe which

is declared to be a major disaster by the President of the United

States if the excluded resource is geographically located within the

disaster area as defined by the Presidential order; the individual

intends to repair or replace the excluded resource; and, the individual

demonstrates good cause why he or she has not been able to repair or

replace the excluded resource within the 18-month period.

* * * * *

[FR Doc. 96-3406 Filed 2-14-96; 8:45 am]

BILLING CODE 4190-29-P