Social Security Ruling (SSR), 12-1p; Title II: Determining Whether Work Performed in Self-Employment by Persons Who Are Blind Is Substantial Gainful Activity and Treatment of Income Resulting From the Randolph-Sheppard Act and Similar Programs, 58604-58606 [2012-23321]

Download as PDF 58604 Federal Register / Vol. 77, No. 184 / Friday, September 21, 2012 / Notices including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an email to rulecomments@sec.gov. Please include File Number SR–BOX–2012–012 on the subject line. pmangrum on DSK3VPTVN1PROD with NOTICES • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–BOX–2012–012. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s Internet Web site (https://www.sec.gov/rules/ sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission’s Public Reference Room, on business days between the hours of 10 a.m. and 3 p.m., located at 100 F Street NE., Washington, DC 20549. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–BOX–2012–012 and should be submitted on or before October 12, 2012. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.29 Kevin M. O’Neill, Deputy Secretary . [FR Doc. 2012–23288 Filed 9–20–12; 8:45 am] BILLING CODE 8011–01–P CFR 200.30–3(a)(12). VerDate Mar<15>2010 15:05 Sep 20, 2012 [Release No. 34–67871; File No. SR–BOX– 2012–003] Accordingly, the Commission, pursuant to Section 19(b)(2) of the Act,7 designates November 7, 2012, as the date by which the Commission should either approve or disapprove or institute proceedings to determine whether to disapprove the proposed rule change. Jkt 226001 Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Designation of a Longer Period for Commission Action on Proposed Rule Change To Amend the Price Improvement Period For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.8 Kevin M. O’Neill, Deputy Secretary. September 17, 2012. Paper Comments 29 17 SECURITIES AND EXCHANGE COMMISSION [FR Doc. 2012–23289 Filed 9–20–12; 8:45 am] On July 25, 2012, BOX Options Exchange LLC (‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) 1 of the Securities Exchange Act of 1934 (‘‘Act’’),2 and Rule 19b–4 thereunder,3 a proposed rule change to amend Rule 7150 (the Price Improvement Period (‘‘PIP’’)) with respect to the execution of quotes and orders that are on the BOX Book prior to the start of a PIP. The proposed rule change was published for comment in the Federal Register on August 9, 2012.4 The Commission received one comment letter on the proposal.5 Section 19(b)(2) of the Act 6 provides that within forty-five days of the publication of notice of the filing of a proposed rule change, or within such longer period up to ninety days as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or as to which the self-regulatory organization consents, the Commission shall either approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether the proposed rule change should be disapproved. The 45th day for this filing is September 23, 2012. The Commission is extending this 45day time period. The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the Exchange’s proposal with respect to the execution of quotes and orders that are on the BOX Book prior to the start of a PIP, and to consider the comment letter that has been submitted in connection with the proposed rule change. BILLING CODE 8011–01–P 1 15 U.S.C. 78s(b)(1). U.S.C. 78a. 3 17 CFR 240.19b–4. 4 See Securities Exchange Act Release No. 67592 (August 3, 2012), 77 FR 47681. 5 See Letter to Elizabeth M. Murphy, Secretary, Commission, from Kurt Eckert, Principal, Wolverine Trading, LLC, dated August 30, 2012. 6 15 U.S.C. 78s(b)(2). 2 15 PO 00000 Frm 00095 Fmt 4703 Sfmt 4703 SOCIAL SECURITY ADMINISTRATION [Docket No. SSA–2012–0023] Social Security Ruling (SSR), 12–1p; Title II: Determining Whether Work Performed in Self-Employment by Persons Who Are Blind Is Substantial Gainful Activity and Treatment of Income Resulting From the RandolphSheppard Act and Similar Programs Social Security Administration. Notice of Social Security Ruling. AGENCY: ACTION: We are giving notice of SSR 12–1p. This SSR explains our policy for evaluating whether work performed by self-employed persons who are blind is substantial gainful activity (SGA) under the disability program in title II of the Social Security Act (Act). In addition, this ruling clarifies that we do not count the income resulting from the Randolph-Sheppard Act and similar programs as earnings when we determine whether blind persons are engaging in SGA. DATES: Effective Date: September 21, 2012. SUMMARY: FOR FURTHER INFORMATION CONTACT: Andrea Stoneham, Office of Program Development and Research, Social Security Administration, 6401 Security Boulevard, Baltimore, MD 21235–6401, (410) 965–6286, or, if you are deaf or hard of hearing, you may call our TTY number, 1–800–325–0778. You may also visit our Internet site, Social Security Online, at https:// www.socialsecurity.gov. Although 5 U.S.C. 552(a)(1) and (a)(2) do not require us to publish this SSR, we are doing so in accordance with 20 CFR 402.35(b)(1). SSRs make available to the public precedential decisions relating to the Federal old-age, survivors, disability, SUPPLEMENTARY INFORMATION: 7 15 8 17 E:\FR\FM\21SEN1.SGM U.S.C. 78s(b)(2). CFR 200.30–3(a)(31). 21SEN1 Federal Register / Vol. 77, No. 184 / Friday, September 21, 2012 / Notices supplemental security income, special veterans benefits, and black lung benefits programs. We base SSRs on determinations or decisions made at all levels of administrative adjudication, Federal court decisions, Commissioner’s decisions, opinions of the Office of the General Counsel, or other interpretations of the law and regulations. Although SSRs do not have the same force and effect as statutes or regulations, they are binding on all of our components. 20 CFR 402.35(b)(1). This SSR will be in effect until we publish a notice in the Federal Register that rescinds it, or until we publish a new SSR that replaces or modifies it. (Catalog of Federal Domestic Assistance, Program Nos. 96.001 Social Security— Disability Insurance; 96.002, Social Security—Retirement Insurance; and 96.004, Social Security—Survivors Insurance). Dated: September 7, 2012. Michael J. Astrue, Commissioner of Social Security. Policy Interpretation Ruling Title II: Determining whether work performed in self-employment by persons who are blind is substantial gainful activity and treatment of income resulting from the Randolph-Sheppard Act and similar programs. Purpose: This Social Security Ruling (SSR) explains our policy for evaluating whether work performed by selfemployed persons who are blind is substantial gainful activity (SGA) under the disability program in title II of the Social Security Act (Act).1 In addition, this ruling clarifies that we do not count income resulting from the RandolphSheppard Act and similar programs as earnings when we determine whether blind persons are engaging in SGA. pmangrum on DSK3VPTVN1PROD with NOTICES Citations (Authority): Sections 216(i) and 223(d) of the Act, as amended; (42 U.S.C. 416(i) and 423(d)); 20 CFR 404.1572, 404.1573, 404.1575, and 404.1584; section 7 of the Randolph-Sheppard Act, as amended (20 U.S.C. 107d–3); 34 CFR 395.8 and 395.32. Introduction: Under the disability provisions of the law, a title II disability beneficiary who performs SGA after the trial work period is not eligible for disability payments except during the first month he or she performs SGA, and the two succeeding months, whether or not he or she performs SGA in those months. We define SGA in the regulations as work that involves doing significant physical or mental activities and is the kind of work usually done for pay or profit. Work activity may be 1 A person is blind if his or her visual impairment meets the definition of ‘‘blindness’’ in section 216(i)(1) of the Act. See 20 CFR 404.1581. VerDate Mar<15>2010 15:05 Sep 20, 2012 Jkt 226001 substantial even if the person does it on a part-time basis, or does less, is paid less, or has less responsibility than in previous work. Work activity by a selfemployed person is gainful if it is the kind of work usually done for profit, whether or not the person realizes a profit. We generally do not consider activities such as self-care, household tasks, hobbies, therapy, school attendance, club activities, or social programs to be SGA. See 20 CFR 404.1572. Policy Interpretation: For work activity performed by blind selfemployed persons, we evaluate selfemployment work activity based on whether the blind person has received a substantial income from the business and rendered significant services to the business.2 Substantial Income To determine whether a blind person has received substantial income from the business, we determine the blind person’s countable income in the same manner as we determine the countable income of non-blind persons. We use the Internal Revenue Service rules to determine gross income, deductions, and net income from self-employment. We then deduct the reasonable value of any significant amount of unpaid help furnished by the person’s spouse, children, or others, impairment-related work expenses (if they were not already deducted from gross income as a business expense), unincurred business expenses, and any soil bank payments (if such payments were included as income by a farmer). The income remaining after we make all applicable deductions represents the actual value of work performed and is the amount we use to determine whether the person has engaged in SGA. We refer to this amount as the blind person’s countable income. See 20 CFR 404.1575(c) and 404.1584(d). We then compare his or her countable income from the business with the dollar amounts in our published SGA earnings guidelines for persons who are blind.3 We generally adjust the SGA 2 We apply this test to evaluate work activity performed by blind self-employed persons in 1978 or later. We use a different test to evaluate work activity performed by blind self-employed individuals prior to 1978. See SSR 83–34, ‘‘Titles II and XVI: Determining Whether Work Is Substantial Gainful Activity—Self-Employed Persons.’’ 3 Evaluation of a self-employed person’s work activity for SGA purposes is concerned only with income that represents the person’s own productivity. Therefore, before applying the earnings guidelines it is necessary to ascertain what portion of the individual’s income represents the actual value of the work he or she performed. See SSR 83–34. For 1978 and later, the law establishes PO 00000 Frm 00096 Fmt 4703 Sfmt 4703 58605 guidelines annually based on increases in the national average wage index. • If the average monthly countable income of a self-employed blind person exceeds our SGA earnings guidelines for the applicable year, we will consider the person’s work activity to be SGA, unless he or she has not rendered significant services to the business. • If the average monthly countable income of the blind person is equal to or less than the SGA earnings guidelines for the applicable year, we will not consider his or her work activity to be SGA. Significant Services If the countable income of a selfemployed blind person exceeds our SGA guidelines for blind persons, we will consider whether he or she (if not a farm landlord 4) has rendered significant services to determine whether the work activity is SGA. If the blind person operates a business alone, we consider any services rendered to be significant to the business. However, if the business involves the services of more than one person, we evaluate the actual services rendered by the blind person to determine whether they are significant. We will consider services significant if the blind person provides more than half the total time needed to manage the business, or more than 45 hours a month regardless of the total management time the business required. Vending Machine Income Received by Blind Vendors Under the RandolphSheppard Act and Similar Programs The Randolph-Sheppard Act established a program for persons who are blind to operate vending facilities as a business on Federal property.5 The income the blind vendor receives from the operation of the business is selfemployment income. In addition, under the Randolph-Sheppard Act program, a blind vendor who operates a vending facility on Federal property may also receive income from vending machines that are located on the same property, even though the blind vendor does not SGA earnings guidelines for blind persons that are higher than the SGA earnings guidelines for nonblind persons. Section 335 of Public Law 95–216, 91 Stat. 1509, 1547. 4 If a blind person is a farm landlord (i.e., you rent farm land to another) who materially participates in the production or the management of the production of the things raised on the rented farm, we will consider those services as significant. See 20 CFR 404.1082, 404.1575(b)(2). 5 Randolph-Sheppard Act, as amended (20 U.S.C. 107 et seq.); 34 CFR part 395. E:\FR\FM\21SEN1.SGM 21SEN1 58606 Federal Register / Vol. 77, No. 184 / Friday, September 21, 2012 / Notices service, operate, or maintain the vending machines.6 Various states have established similar programs for persons who are blind to operate vending facilities as a business on state and local government property. Like the Randolph-Sheppard Act program, many of these State programs provide the blind vendor with income from vending machines that are located on the same property but are operated independently of the blind vendor’s vending facility business. The income that blind self-employed vendors receive under the RandolphSheppard Act (and similar State programs) from vending machines that are located on the same property, but are not serviced, operated, or maintained by the blind vendor, is not a measure of a blind vendor’s own productivity. It does not represent the actual value of any part of the blind vendor’s work activity. Since the income a blind vendor receives under this provision of the RandolphSheppard Act (or similar State programs) is independent of his or her own vending business, and cannot be attributed to the blind vendor’s own work activity, we will not consider this income when we determine whether the self-employment work activity is SGA. We will deduct this income from the blind vendor’s net income before we apply the SGA earnings guidelines. Cross-References: SSR 83–34 Titles II and XVI: Determining Whether Work Is Substantial Gainful Activity—SelfEmployed Persons; Program Operations Manual System sections DI 10501.015, DI 10515.005, and DI 10515.010. [FR Doc. 2012–23321 Filed 9–20–12; 8:45 am] BILLING CODE 4191–02–P DEPARTMENT OF STATE [Public Notice 8037] pmangrum on DSK3VPTVN1PROD with NOTICES U.S. Department of State Advisory Committee on Private International Law (ACPIL): Notice of Public Meeting of the Study Group on Choice of Law in International Commercial Contracts The Office of the Assistant Legal Adviser for Private International Law, Department of State, hereby gives notice of a public meeting of the Study Group on Choice of Law in International Commercial Contracts. A working group of experts from various countries was established by the Hague Conference on Private International Law to develop non-binding principles relevant to the 6 Section 7 of the Randolph-Sheppard Act, as amended (20 U.S.C. 107d–3); 34 CFR 395.8 and 395.32. VerDate Mar<15>2010 15:05 Sep 20, 2012 Jkt 226001 choice of law in international commercial contracts. The draft principles prepared by that group will be considered at a Special Commission of the Hague Conference to be held November 12–16. If the draft principles are approved by the Special Commission, it is expected that the working group will be requested to prepare a detailed commentary to accompany the principles. The purpose of the public meeting is to obtain the views of concerned stakeholders in advance of the Special Commission. This is not a meeting of the full Advisory Committee. The relevant documents can be found at the following links: https://www.hcch.net/upload/wop/ gap12pd04e.pdf (Report of the Working Group and draft principles); https://www.hcch.net/upload/wop/ contracts_agenda2012e.pdf (Agenda for Special Commission Meeting): and https://www.hcch.net/upload/wop/ gap2012concl_en.pdf (Conclusions and Recommendations of the Council). Time and Place: The meeting will take place on October 19, 2012 from 10 a.m. to 2 p.m. EDT in Room 240, South Building, State Department Annex 4. Participants should arrive at the Navy Hill gate at the corner of 23rd Street NW., and D Street NW., before 9:30 a.m. for visitor screening. Persons arriving later will need to make arrangements for entry using the contact information provided below. If you are unable to attend the public meeting and would like to participate from a remote location, teleconferencing will be available. Public Participation: This meeting is open to the public, subject to the capacity of the meeting room. Access to Navy Hill is strictly controlled. For preclearance purposes, those planning to attend in person are requested to email or phone Tricia Smeltzer (smeltzertk@state.gov, 202–776–8423) or Niesha Toms (tomsnn@state.gov, 202– 776–8420) and provide your full name, address, date of birth, citizenship, driver’s license or passport number, affiliation, and email address. This will greatly facilitate entry. Participants will be met at the Navy Hill gate at 23rd and D Streets NW., and will be escorted to the South Building. A member of the public needing reasonable accommodation should advise Ms. Smeltzer or Ms. Toms not later than October 12, 2012. Requests made after that date will be considered, but might not be able to be fulfilled. If you would like to participate by telephone, please contact Ms. Smeltzer PO 00000 Frm 00097 Fmt 4703 Sfmt 4703 or Ms. Toms to obtain the call-in number and other information. Data from the public is requested pursuant to Public Law 99–399 (Omnibus Diplomatic Security and Antiterrorism Act of 1986), as amended; Public Law 107–56 (USA PATRIOT Act); and Executive Order 13356. The purpose of the collection is to validate the identity of individuals who enter Department facilities. The data will be entered into the Visitor Access Control System (VACS–D) database. Please see the Security Records System of Records Notice (State-36) at https:// www.state.gov/documents/organization/ 103419.pdf for additional information. Dated: September 11, 2012. Michael Dennis, Office of Private International Law, Office of the Legal Adviser, Department of State. [FR Doc. 2012–23337 Filed 9–20–12; 8:45 am] BILLING CODE 4710–08–P DEPARTMENT OF STATE [Public Notice 8039] Notice of Closed Meeting of the Cultural Property Advisory Committee There will be a closed meeting of the Cultural Property Advisory Committee on Thursday, October 25, 2012, and on Friday, October 26, 2012, at the Department of State, Annex 5, 2201 C Street NW., Washington, DC. The Committee will conduct interim reviews of the Memorandum of Understanding Between the Government of the United States of America and the Government of the Kingdom of Cambodia Concerning the Imposition of Import Restrictions of Archaeological Material from the Kingdom of Cambodia from the Bronze Age through the Khmer Era, and the Memorandum of Understanding Between the Government of the United States of America and the Government of the People’s Republic of China Concerning the Imposition of Import Restrictions on Categories of Archaeological Material from the Paleolithic Period through the Tang Dynasty and Monumental Sculpture and Wall Art at Least 250 Years Old. Public comment, oral and written, will be invited at a time in the future should these MOUs be proposed for extension. The Committee’s responsibilities are carried out in accordance with provisions of the Convention on Cultural Property Implementation Act (19 U.S.C. 2601 et seq.). The Act and subject Memoranda of Understanding, as well as related information, may be found at https://exchanges.state.gov/ heritage/culprop. This meeting will be E:\FR\FM\21SEN1.SGM 21SEN1

Agencies

[Federal Register Volume 77, Number 184 (Friday, September 21, 2012)]
[Notices]
[Pages 58604-58606]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-23321]


=======================================================================
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SOCIAL SECURITY ADMINISTRATION

[Docket No. SSA-2012-0023]


Social Security Ruling (SSR), 12-1p; Title II: Determining 
Whether Work Performed in Self-Employment by Persons Who Are Blind Is 
Substantial Gainful Activity and Treatment of Income Resulting From the 
Randolph-Sheppard Act and Similar Programs

AGENCY: Social Security Administration.

ACTION: Notice of Social Security Ruling.

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

SUMMARY: We are giving notice of SSR 12-1p. This SSR explains our 
policy for evaluating whether work performed by self-employed persons 
who are blind is substantial gainful activity (SGA) under the 
disability program in title II of the Social Security Act (Act). In 
addition, this ruling clarifies that we do not count the income 
resulting from the Randolph-Sheppard Act and similar programs as 
earnings when we determine whether blind persons are engaging in SGA.

DATES: Effective Date: September 21, 2012.

FOR FURTHER INFORMATION CONTACT: Andrea Stoneham, Office of Program 
Development and Research, Social Security Administration, 6401 Security 
Boulevard, Baltimore, MD 21235-6401, (410) 965-6286, or, if you are 
deaf or hard of hearing, you may call our TTY number, 1-800-325-0778. 
You may also visit our Internet site, Social Security Online, at https://www.socialsecurity.gov.

SUPPLEMENTARY INFORMATION: Although 5 U.S.C. 552(a)(1) and (a)(2) do 
not require us to publish this SSR, we are doing so in accordance with 
20 CFR 402.35(b)(1).
    SSRs make available to the public precedential decisions relating 
to the Federal old-age, survivors, disability,

[[Page 58605]]

supplemental security income, special veterans benefits, and black lung 
benefits programs. We base SSRs on determinations or decisions made at 
all levels of administrative adjudication, Federal court decisions, 
Commissioner's decisions, opinions of the Office of the General 
Counsel, or other interpretations of the law and regulations.
    Although SSRs do not have the same force and effect as statutes or 
regulations, they are binding on all of our components. 20 CFR 
402.35(b)(1).
    This SSR will be in effect until we publish a notice in the Federal 
Register that rescinds it, or until we publish a new SSR that replaces 
or modifies it.

(Catalog of Federal Domestic Assistance, Program Nos. 96.001 Social 
Security--Disability Insurance; 96.002, Social Security--Retirement 
Insurance; and 96.004, Social Security--Survivors Insurance).

    Dated: September 7, 2012.
Michael J. Astrue,
Commissioner of Social Security.

Policy Interpretation Ruling

    Title II: Determining whether work performed in self-employment by 
persons who are blind is substantial gainful activity and treatment of 
income resulting from the Randolph-Sheppard Act and similar programs.
    Purpose: This Social Security Ruling (SSR) explains our policy for 
evaluating whether work performed by self-employed persons who are 
blind is substantial gainful activity (SGA) under the disability 
program in title II of the Social Security Act (Act).\1\ In addition, 
this ruling clarifies that we do not count income resulting from the 
Randolph-Sheppard Act and similar programs as earnings when we 
determine whether blind persons are engaging in SGA.
---------------------------------------------------------------------------

    \1\ A person is blind if his or her visual impairment meets the 
definition of ``blindness'' in section 216(i)(1) of the Act. See 20 
CFR 404.1581.

    Citations (Authority): Sections 216(i) and 223(d) of the Act, as 
amended; (42 U.S.C. 416(i) and 423(d)); 20 CFR 404.1572, 404.1573, 
404.1575, and 404.1584; section 7 of the Randolph-Sheppard Act, as 
---------------------------------------------------------------------------
amended (20 U.S.C. 107d-3); 34 CFR 395.8 and 395.32.

    Introduction: Under the disability provisions of the law, a title 
II disability beneficiary who performs SGA after the trial work period 
is not eligible for disability payments except during the first month 
he or she performs SGA, and the two succeeding months, whether or not 
he or she performs SGA in those months. We define SGA in the 
regulations as work that involves doing significant physical or mental 
activities and is the kind of work usually done for pay or profit. Work 
activity may be substantial even if the person does it on a part-time 
basis, or does less, is paid less, or has less responsibility than in 
previous work. Work activity by a self-employed person is gainful if it 
is the kind of work usually done for profit, whether or not the person 
realizes a profit. We generally do not consider activities such as 
self-care, household tasks, hobbies, therapy, school attendance, club 
activities, or social programs to be SGA. See 20 CFR 404.1572.
    Policy Interpretation: For work activity performed by blind self-
employed persons, we evaluate self-employment work activity based on 
whether the blind person has received a substantial income from the 
business and rendered significant services to the business.\2\
---------------------------------------------------------------------------

    \2\ We apply this test to evaluate work activity performed by 
blind self-employed persons in 1978 or later. We use a different 
test to evaluate work activity performed by blind self-employed 
individuals prior to 1978. See SSR 83-34, ``Titles II and XVI: 
Determining Whether Work Is Substantial Gainful Activity--Self-
Employed Persons.''
---------------------------------------------------------------------------

Substantial Income

    To determine whether a blind person has received substantial income 
from the business, we determine the blind person's countable income in 
the same manner as we determine the countable income of non-blind 
persons. We use the Internal Revenue Service rules to determine gross 
income, deductions, and net income from self-employment. We then deduct 
the reasonable value of any significant amount of unpaid help furnished 
by the person's spouse, children, or others, impairment-related work 
expenses (if they were not already deducted from gross income as a 
business expense), unincurred business expenses, and any soil bank 
payments (if such payments were included as income by a farmer). The 
income remaining after we make all applicable deductions represents the 
actual value of work performed and is the amount we use to determine 
whether the person has engaged in SGA. We refer to this amount as the 
blind person's countable income. See 20 CFR 404.1575(c) and 
404.1584(d).
    We then compare his or her countable income from the business with 
the dollar amounts in our published SGA earnings guidelines for persons 
who are blind.\3\ We generally adjust the SGA guidelines annually based 
on increases in the national average wage index.
---------------------------------------------------------------------------

    \3\ Evaluation of a self-employed person's work activity for SGA 
purposes is concerned only with income that represents the person's 
own productivity. Therefore, before applying the earnings guidelines 
it is necessary to ascertain what portion of the individual's income 
represents the actual value of the work he or she performed. See SSR 
83-34. For 1978 and later, the law establishes SGA earnings 
guidelines for blind persons that are higher than the SGA earnings 
guidelines for non-blind persons. Section 335 of Public Law 95-216, 
91 Stat. 1509, 1547.
---------------------------------------------------------------------------

     If the average monthly countable income of a self-employed 
blind person exceeds our SGA earnings guidelines for the applicable 
year, we will consider the person's work activity to be SGA, unless he 
or she has not rendered significant services to the business.
     If the average monthly countable income of the blind 
person is equal to or less than the SGA earnings guidelines for the 
applicable year, we will not consider his or her work activity to be 
SGA.

Significant Services

    If the countable income of a self-employed blind person exceeds our 
SGA guidelines for blind persons, we will consider whether he or she 
(if not a farm landlord \4\) has rendered significant services to 
determine whether the work activity is SGA. If the blind person 
operates a business alone, we consider any services rendered to be 
significant to the business. However, if the business involves the 
services of more than one person, we evaluate the actual services 
rendered by the blind person to determine whether they are significant. 
We will consider services significant if the blind person provides more 
than half the total time needed to manage the business, or more than 45 
hours a month regardless of the total management time the business 
required.
---------------------------------------------------------------------------

    \4\ If a blind person is a farm landlord (i.e., you rent farm 
land to another) who materially participates in the production or 
the management of the production of the things raised on the rented 
farm, we will consider those services as significant. See 20 CFR 
404.1082, 404.1575(b)(2).
---------------------------------------------------------------------------

Vending Machine Income Received by Blind Vendors Under the Randolph-
Sheppard Act and Similar Programs

    The Randolph-Sheppard Act established a program for persons who are 
blind to operate vending facilities as a business on Federal 
property.\5\ The income the blind vendor receives from the operation of 
the business is self-employment income. In addition, under the 
Randolph-Sheppard Act program, a blind vendor who operates a vending 
facility on Federal property may also receive income from vending 
machines that are located on the same property, even though the blind 
vendor does not

[[Page 58606]]

service, operate, or maintain the vending machines.\6\
---------------------------------------------------------------------------

    \5\ Randolph-Sheppard Act, as amended (20 U.S.C. 107 et seq.); 
34 CFR part 395.
    \6\ Section 7 of the Randolph-Sheppard Act, as amended (20 
U.S.C. 107d-3); 34 CFR 395.8 and 395.32.
---------------------------------------------------------------------------

    Various states have established similar programs for persons who 
are blind to operate vending facilities as a business on state and 
local government property. Like the Randolph-Sheppard Act program, many 
of these State programs provide the blind vendor with income from 
vending machines that are located on the same property but are operated 
independently of the blind vendor's vending facility business.
    The income that blind self-employed vendors receive under the 
Randolph-Sheppard Act (and similar State programs) from vending 
machines that are located on the same property, but are not serviced, 
operated, or maintained by the blind vendor, is not a measure of a 
blind vendor's own productivity. It does not represent the actual value 
of any part of the blind vendor's work activity. Since the income a 
blind vendor receives under this provision of the Randolph-Sheppard Act 
(or similar State programs) is independent of his or her own vending 
business, and cannot be attributed to the blind vendor's own work 
activity, we will not consider this income when we determine whether 
the self-employment work activity is SGA. We will deduct this income 
from the blind vendor's net income before we apply the SGA earnings 
guidelines.
    Cross-References: SSR 83-34 Titles II and XVI: Determining Whether 
Work Is Substantial Gainful Activity--Self-Employed Persons; Program 
Operations Manual System sections DI 10501.015, DI 10515.005, and DI 
10515.010.

[FR Doc. 2012-23321 Filed 9-20-12; 8:45 am]
BILLING CODE 4191-02-P
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