Determining Income and Resources Under the Supplemental Security Income (SSI) Program, 6340-6345 [05-2248]
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6340
Federal Register / Vol. 70, No. 24 / Monday, February 7, 2005 / Rules and Regulations
Cheyenne, WY, Cheyenne Regional/Jerry
Olson Field, NDB RWY 27, Amdt 14
Cheyenne, WY, Cheyenne Regional/Jerry
Olson Field, VOR OR TACAN–A, Amdt 10
Cheyenne, WY, Cheyenne Regional/Jerry
Olson Field, GPS RWY 12, Amdt 1B,
CANCELLED
Cheyenne, WY, Cheyenne Regional/Jerry
Olson Field, GPS RWY 26, Orig-A,
CANCELLED
Commerce for the previous calendar
year.’’
Pursuant to ′375.308(x)(1) of the
Commission’s Regulations, the authority
for the publication of such cost limits,
as adjusted for inflation, is delegated to
the Director of the Office of Energy
Projects. The cost limits for calendar
year 2005, as published in Table I of
′157.208(d) and Table II of ′157.215(a),
are hereby issued.
BILLING CODE 4910–13–P
Year
Limit
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*
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*
BILLING CODE 6717–01–P
List of Subjects in 18 CFR Part 157
Administrative practice and
procedure, Natural Gas, Reporting and
recordkeeping requirements.
Accordingly, 18 CFR part 157 is
amended as follows:
I
Federal Energy Regulatory
Commission
PART 157—[AMENDED]
18 CFR Part 157
1. The authority citation for part 157
continues to read as follows:
I
[Docket No. RM81–19–000]
Natural Gas Pipelines; Project Cost
and Annual Limits
Authority: 15 U.S.C. 717–717w, 3301–
3432; 42 U.S.C. 7101–7352.
February 1, 2005.
I
2. Table I in § 157.208(d) is revised to
read as follows:
Federal Energy Regulatory
Commission.
ACTION: Final rule.
AGENCY:
SUMMARY: Pursuant to the authority
delegated by 18 CFR 375.308(x)(1), the
Director of the Office of Energy Projects
(OEP) computes and publishes the
project cost and annual limits for
natural gas pipelines blanket
construction certificates for each
calendar year.
EFFECTIVE DATE: January 1, 2005.
FOR FURTHER INFORMATION, CONTACT:
Michael J. McGehee, Chief, Certificates
Branch 1, Division of Pipeline
Certificates, (202) 502–8962.
Publication of Project Cost Limits
Under Blanket Certificates; Order of the
Director, OEP
Section 157.208(d) of the
Commission’s Regulations provides for
project cost limits applicable to
construction, acquisition, operation and
miscellaneous rearrangement of
facilities (Table I) authorized under the
blanket certificate procedure (Order No.
234, 19 FERC &61,216). Section
157.215(a) specifies the calendar year
dollar limit which may be expended on
underground storage testing and
development (Table II) authorized under
the blanket certificate. Section
157.208(d) requires that the ‘‘limits
specified in Tables I and II shall be
adjusted each calendar year to reflect
the ‘GDP implicit price deflator’
published by the Department of
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TABLE II
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
J. Mark Robinson,
Director, Office of Energy Projects.
DEPARTMENT OF ENERGY
16:57 Feb 04, 2005
(a) * * *
(5) * * *
§ 157.208 Construction, acquisition,
operation, replacement, and miscellaneous
rearrangement of facilities.
* * * Effective May 12, 2005
Minot, ND, Minot Intl, LOC/DME BC RWY
13, Amdt 7
[FR Doc. 05–2222 Filed 2–4–05; 8:45 am]
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§ 157.215 Underground storage testing
and development.
*
*
(d) * * *
*
*
TABLE I
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
..........
..........
..........
..........
..........
..........
..........
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..........
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..........
..........
..........
..........
..........
Auto. proj.
cost limit
(Col.1)
$4,200,000
4,500,000
4,700,000
4,900,000
5,100,000
5,200,000
5,400,000
5,600,000
5,800,000
6,000,000
6,200,000
6,400,000
6,600,000
6,700,000
6,900,000
7,000,000
7,100,000
7,200,000
7,300,000
7,400,000
7,500,000
7,600,000
7,800,000
8,000,000
*
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*
20 CFR Part 416
Prior notice
proj. cost limit
(Col.2)
$12,000,000
12,800,000
13,300,000
13,800,000
14,300,000
14,700,000
15,100,000
15,600,000
16,000,000
16,700,000
17,300,000
17,700,000
18,100,000
18,400,000
18,800,000
19,200,000
19,600,000
19,800,000
20,200,000
20,600,000
21,000,000
21,200,000
21,600,000
22,000,000
*
*
*
*
3. Table II in § 157.215(a)(5) is revised
to read as follows:
I
*
[FR Doc. 05–2255 Filed 2–4–05; 8:45 am]
SOCIAL SECURITY ADMINISTRATION
Limit
Year
*
$2,700,000
2,900,000
3,000,000
3,100,000
3,200,000
3,300,000
3,400,000
3,500,000
3,600,000
3,800,000
3,900,000
4,000,000
4,100,000
4,200,000
4,300,000
4,400,000
4,500,000
4,550,000
4,650,000
4,750,000
4,850,000
4,900,000
5,000,000
5,100,000
[Regulation No. 16]
RIN 0960–AF84
Determining Income and Resources
Under the Supplemental Security
Income (SSI) Program
Social Security Administration.
Final rules.
AGENCY:
ACTION:
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.
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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
https://www.gpoaccess.gov/fr/
index.html. It is also available on the
Internet site for SSA, Social Security
Online, at https://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 https://
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
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(Means-Tested Programs: Determining
Financial Eligibility Is Cumbersome and
Can Be Simplified, GAO–02–58,
November 2, 2001 available at https://
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
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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 § 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 inkind 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 § 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
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§ 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 § 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,
§ 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, § 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:
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• 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, § 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 § 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 § 416.1210(b)
by referring to § 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
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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
§ 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 § 416.1218 define an
‘‘automobile’’ as a passenger car or other
vehicle used to provide necessary
transportation.
In interpreting ‘‘reasonable’’ value,
§ 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
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• 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
§ 416.1218(b)(2). Additional
automobiles are counted as nonliquid
resources to the extent of their equity
value. See § 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
§ 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 § 416.1210(c) to
exclude from resources an automobile
that is used for transportation as
provided in § 416.1218. We are also
changing § 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
§ 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,
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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
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6343
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
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Federal Register / Vol. 70, No. 24 / Monday, February 7, 2005 / Rules and Regulations
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.
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We have also determined that these
final rules meet the plain language
requirement of Executive Order 12866,
as amended by Executive Order 13258.
(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:
Regulatory Flexibility Act
§ 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) * * *
Paperwork Reduction Act
(3) Assistance provided in cash or in
kind (including food or shelter) under a
These final rules will impose no
Federal, State, or local government
additional reporting or recordkeeping
program whose purpose is to provide
requirements requiring OMB clearance.
medical care or medical services
(Catalog of Federal Domestic Assistance
(including vocational rehabilitation);
Program No. 96.006 Supplemental Security
(4) In-kind assistance (except food or
Income)
shelter) provided under a
nongovernmental program whose
List of Subjects in 20 CFR Part 416
purpose is to provide medical care or
Administrative practice and
medical services;
procedure, Aged, Blind, Disability
(5) Cash provided by any
benefits, Public assistance programs,
nongovernmental medical care or
Reporting and recordkeeping
medical services program or under a
requirements, Supplemental Security
health insurance policy (except cash to
Income (SSI).
cover food or shelter) if the cash is
Dated: December 2, 2004.
either:
Jo Anne B. Barnhart,
*
*
*
*
*
Commissioner of Social Security.
(b) * * *
(2) In-kind assistance (except food or
I For the reasons set out in the preamble,
shelter) provided under a
we are amending subparts K and L of part
nongovernmental program whose
416 of chapter III of title 20 of the Code
purpose is to provide social services; or
of Federal Regulations as follows:
(3) Cash provided by a
nongovernmental social services
PART 416—SUPPLEMENTAL
program (except cash to cover food or
SECURITY INCOME FOR THE AGED,
shelter) if the cash is either:
BLIND, AND DISABLED
*
*
*
*
*
(g) * * *
Subpart K—[Amended]
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.
1. The authority citation for subpart K
of part 416 continues to read as follows:
I
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:
I
§ 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
§ 416.1110 and § 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.
I 3. Section 416.1103 is amended by
revising the section heading, the
introductory text, paragraphs (a)(3),
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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 inkind 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 § 416.1102.
*
*
*
*
*
(j) Receipt of certain noncash items.
Any item you receive (except shelter as
defined in § 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.
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Federal Register / Vol. 70, No. 24 / Monday, February 7, 2005 / Rules and Regulations
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 § 416.1218 in the month
following the month of receipt.
*
*
*
*
*
§§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).
I
Subpart L—[Amended]
5. The authority citation for subpart L
of part 416 continues to read as follows:
I
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:
I
(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 § 416.1205.
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:
I
§ 416.1218
§ 416.1210
general.
Exclusions from resources;
*
*
*
*
*
(b) Household goods and personal
effects as defined in § 416.1216;
(c) An automobile, if used for
transportation, as provided in
§ 416.1218;
*
*
*
*
*
I 7. Section 416.1216 is revised to read
as follows:
§ 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
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16:29 Feb 04, 2005
Jkt 205001
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 § 416.1201(c).)
[FR Doc. 05–2248 Filed 2–4–05; 8:45 am]
BILLING CODE 4191–02–P
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6345
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 117
[CGD05–04–179]
RIN 1625–AA09
Drawbridge Operation Regulations;
Mantua Creek, Paulsboro, NJ
Coast Guard, DHS.
Temporary final rule.
AGENCY:
ACTION:
SUMMARY: The Coast Guard is
temporarily changing the regulations
that govern the operation of the S.R. 44
bridge over Mantua Creek, at mile 1.7,
in Paulsboro, New Jersey. The bridge
will be closed to navigation from 8 a.m.
on September 12, 2005, through 6 p.m.
on December 9, 2005. The extensive
structural, mechanical, and electrical
repairs and improvements necessitate
this closure.
DATES: This rule is effective from 8 a.m.
on September 12, 2005, through 6 p.m.
on December 9, 2005.
ADDRESSES: Comments and material
received from the public, as well as
documents indicated in this preamble as
being available in the docket, are part of
docket CGD05–04–179 and are available
for inspection or copying at Commander
(obr), Fifth Coast Guard District, Federal
Building, 1st Floor, 431 Crawford Street,
Portsmouth, VA 23704–5004 between 8
a.m. and 4 p.m., Monday through
Friday, except Federal holidays. The
Fifth Coast Guard District maintains the
public docket for this rulemaking.
FOR FURTHER INFORMATION CONTACT:
Anton Allen, Bridge Management
Specialist, Fifth Coast Guard District, at
(757) 398–6227.
SUPPLEMENTARY INFORMATION:
Regulatory History
On October 12, 2004, we published a
notice of proposed rulemaking (NPRM)
entitled ‘‘Drawbridge Operation
Regulations; Mantua Creek, Paulsboro,
NJ’’ in the Federal Register (69 FR
60595). We received no letters
commenting on the proposed rule. No
public meeting was requested, and none
was held.
Background and Purpose
The New Jersey Department of
Transportation (NJDOT) owns and
operates the S.R. 44 Bridge over Mantua
Creek in Paulsboro, NJ. The current
regulations set out in 33 CFR 117.729
require the draw to open on signal from
March 1 through November 30 from 7
a.m. to 11 p.m., and shall open on signal
E:\FR\FM\07FER1.SGM
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]]>Agencies
[Federal Register Volume 70, Number 24 (Monday, February 7, 2005)]
[Rules and Regulations]
[Pages 6340-6345]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-2248]
=======================================================================
-----------------------------------------------------------------------
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.
-----------------------------------------------------------------------
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 https://
www.gpoaccess.gov/fr/. It is also available on the Internet
site for SSA, Social Security Online, at https://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 https://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 https://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;
* * * * *
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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.
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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
