Personnel

SOCIAL SECURITY ADMINISTRATION

20 CFR Part 430

RIN 0960-AE52

Personnel

AGENCY: Social Security Administration (SSA).

ACTION: Final rule.

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SUMMARY: These final rules adopt regulations for SSA which contain the

same policy as provided by current regulations of the U.S. Department

of Health and Human Services (HHS) on indemnification of employees for

judgments, verdicts or monetary awards. The Social Security

Independence and Program Improvements Act (SSIPIA) of 1994 established

the Social Security Administration as an independent agency in the

executive branch of the United States Government effective March 31,

1995 and vested general regulatory authority in the

[[Page 39934]]

Commissioner of Social Security. These regulations establish a new part

430 in Title 20 of the Code of Federal Regulations.

EFFECTIVE DATE: These rules are effective July 25, 1997.

FOR FURTHER INFORMATION CONTACT: Suzanne DiMarino, Division of

Regulations and Rulings, Social Security Administration, 6401 Security

Boulevard, Baltimore, MD 21235, (410) 965-1769 for information about

this rule. For information on eligibility or claiming benefits, call

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

SUPPLEMENTARY INFORMATION: Prior to March 31, 1995, SSA was an

operating component of HHS and the general regulatory authority for SSA

programs and administration was vested in the Secretary of Health and

Human Services (the Secretary) based on section 1102 of the Social

Security Act (the Act)(42 U.S.C. 1302). The SSIPIA established SSA as

an independent agency in the Executive Branch of the Federal government

effective March 31, 1995 and vested general regulatory authority in the

Commissioner of Social Security (the Commissioner). Under Section

106(b) of SSIPIA, HHS regulations in effect immediately prior to March

31, 1995 which relate to functions now vested in the Commissioner by

reason of SSA's independence, continue to apply to SSA until such time

as they are modified, suspended, terminated or repealed by the

Commissioner. SSA continues to administer the old-age, survivors, and

disability insurance program under title II and the supplemental

security income program under title XVI.

These final rules adopt the same policy set out in 45 CFR part 36

that was applicable to SSA when it was a component of HHS, and that has

continued to remain applicable to SSA since its independence pursuant

to section 106(b) of SSIPIA. The rules at 45 CFR part 36, entitled,

Indemnification of HHS Employees, permit the indemnification of an

employee for a verdict, judgment or other monetary award when the

conduct giving rise to the verdict, judgment or award was taken within

the scope of his or her employment.

All changes from the HHS regulation are technical in nature and

pertain to names, addresses, legal citations and paragraph

designations. References contained in the HHS regulation to ``HHS'',

``the Department'' or ``the Secretary'' have been changed to ``the

Social Security Administration'' or ``the Commissioner'', as

appropriate. The HHS regulation at 45 CFR part 36 will cease to have

effect on SSA at the moment these rules become effective.

Electronic Version

The electronic file of this document is available on the Federal

Bulletin Board (FBB) at 9:00 A.M. on the date of publication in the

Federal Register. To download the file, modem dial (202) 512-1387. The

FBB instructions will explain how to download the file and the fee.

This file is in WordPerfect.

Regulatory Procedures

Justification for Final Rules

This rule is being published as a final rule instead of as a

proposed rule. Section 702(a)(5) of the Social Security Act (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. These procedures generally require publication of

notice of the proposed rulemaking and the solicitation of comments from

interested persons. However, the APA provides exceptions to 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 because such procedure would be unnecessary. This final

regulation adopts as an SSA regulation the provisions of 45 CFR part 36

without substantive change. Those provisions have remained applicable

to the indemnification of SSA employees after the date SSA gained the

status of an independent agency, pursuant to section 106(b) of Public

Law 103-296. The differences in this regulation over that of 45 CFR

part 36 are of form only and are necessary to adapt the former

regulation to the operating structures of this agency. Accordingly,

promulgation of this regulation pursuant to notice and comment

rulemaking is unnecessary and may be dispensed with pursuant to 5

U.S.C. 553(b)(B).

Waiver of 30-Day Delay in Effective Date

This regulation is effective on publication, rather than effective

30 days after publication. As indicated above, section 702(a)(5) of the

Act makes the regulations we prescribe subject to the rulemaking

procedures established under section 553 of the APA.

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.

Under 5 U.S.C. 553(d)(3), good cause exists for dispensing with the

minimum 30 day period between publication date and effective date. As

indicated above, this regulation adopts without change the substantive

provisions of 45 CFR part 36.

Pursuant to section 106(b) of Public Law 103-296, the provisions of

part 36 remain applicable to SSA until such time as this regulation

becomes effective. A 30-day delay in the effective date of this

regulation would serve no purpose since during such delay, the

identical provisions of part 36 would remain applicable. Accordingly,

this regulation is effective on publication.

Executive Order 12866

SSA has consulted with the Office of Management and Budget (OMB)

and determined that this final rule does not meet the criteria for a

significant regulatory action under Executive Order 12866. Thus, it was

not subject to OMB review.

Regulatory Flexibility Act

SSA certifies that this final rule will not have a significant

economic impact on a substantial number of small entities since it

makes no changes in policy. Therefore, a regulatory flexibility

analysis as provided in Public Law 96-354, the Regulatory Flexibility

Act, is not required.

Paperwork Reduction Act

This final rule imposes no additional reporting or recordkeeping

requirements subject to OMB clearance.

(Catalog of Federal Domestic Assistance Program Nos. 96.001 Social

Security-Disability Insurance; 96.002 Social Security--Retirement

Insurance; 96.003 Social Security--Special Benefits for Persons Aged

72 and Over; 96.004 Social Security--Survivors Insurance; 96.005

Special Benefits for Disabled Coal Miners; 96.006 Supplemental

Security Income; 96.007 Social Security--Research and Demonstration)

List of Subjects in 20 CFR Part 430

Claims, Government employees.

Dated: July 14, 1997.

John J. Callahan,

Acting Commissioner of Social Security.

For reasons set out in the preamble, Chapter III of Title 20 of

the Code of Federal Regulations is amended by adding the following:

[[Page 39935]]

PART 430--PERSONNEL

Authority: Section 702(a)(5) of the Social Security Act (42

U.S.C. 902(a)(5))

Indemnification of SSA Employees

Sec. 430.101 Policy.

(a) The Social Security Administration (SSA) may indemnify, in

whole or in part, its employees (which for the purpose of this

regulation includes former employees) for any verdict, judgment or

other monetary award which is rendered against any such employee,

provided that the conduct giving rise to the verdict, judgment or award

was taken within the scope of his or her employment with SSA and that

such indemnification is in the interest of the United States, as

determined by the Commissioner, or his or her designee, in his or her

discretion.

(b) SSA may settle or compromise a personal damage claim against

its employee by the payment of available funds, at any time, provided

the alleged conduct giving rise to the personal damage claim was taken

within the scope of employment and that such settlement or compromise

is in the interest of the United States, as determined by the

Commissioner, or his or her designee, in his or her discretion.

(c) Absent exceptional circumstances, as determined by the

Commissioner or his or her designee, SSA will not entertain a request

either to agree to indemnify or to settle a personal damage claim

before entry of an adverse verdict, judgment or monetary award.

(d) When an employee of SSA becomes aware that an action has been

filed against the employee in his or her individual capacity as a

result of conduct taken within the scope of his or her employment, the

employee should immediately notify SSA that such an action is pending.

(e) The employee may, thereafter, request either:

(1) Indemnification to satisfy a verdict, judgment or award entered

against the employee; or

(2) Payment to satisfy the requirements of a settlement proposal.

The employee shall submit a written request, with documentation

including copies of the verdict, judgment, award or settlement

proposal, as appropriate, to the Deputy Commissioner or other

designated official, who shall thereupon submit to the General Counsel,

in a timely manner, a recommended disposition of the request. The

General Counsel shall also seek the views of the Department of Justice.

The General Counsel shall forward the request, the Deputy

Commissioner's or other designated official's recommended disposition,

and the General Counsel's recommendation to the Commissioner or his or

her designee for decision.

(f) Any payment under this section either to indemnify an SSA

employee or to settle a personal damage claim shall be contingent upon

the availability of appropriated funds.

[FR Doc. 97-19478 Filed 7-24-97; 8:45 am]

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