[Federal Register: September 11, 2003 (Volume 68, Number 176)]
[Rules and Regulations]
[Page 53506-53509]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr11se03-9]
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SOCIAL SECURITY ADMINISTRATION
20 CFR Part 416
RIN 0960-AF43
Access to Information Held by Financial Institutions
AGENCY: Social Security Administration.
ACTION: Final rule.
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SUMMARY: We are revising our regulations to implement a law that will
enhance our access to financial account information of Supplemental
Security Income (SSI) applicants and recipients and other individuals
whose income and resources we consider as being available to the
applicant or recipient.
EFFECTIVE DATE: These regulations are effective October 14, 2003.
FOR FURTHER INFORMATION CONTACT: Martin Sussman, Regulations Officer,
Office of Regulations, 100 Altmeyer Building, Social Security
Administration, 6401 Security Boulevard, Baltimore, MD 21235-6401,
regulations@ssa.gov, (410) 965-1767 or TTY (410) 966-5609 for
information about these rules. For information on eligibility or
claiming benefits, call our national toll-free numbers, 1-800-772-1213
or TTY 1-800-325-0778 or visit our Internet Web site, Social Security
Online, at http://www.socialsecurity.gov/.
Electronic Version: The electronic file of this document is
available on the date of publication in the Federal Register on the
Internet site for the Government Printing Office: http://www.access.gpo.gov/su_docs/aces/aces140.html.
It is also available on
our Internet site, Social Security Online: http://www.socialsecurity.gov/regulations
.
SUPPLEMENTARY INFORMATION:
[[Page 53507]]
Background
Section 1631(e)(1)(B) of the Social Security Act (the Act) requires
the Commissioner of Social Security to verify all relevant information
provided regarding the eligibility of SSI applicants and recipients.
Section 213 of the Foster Care Independence Act of 1999, Public Law
106-169, amended section 1631(e)(1)(B) of the Act to grant the
Commissioner new authority with respect to verifying financial
accounts. Under section 213, the Commissioner may require each SSI
applicant or recipient to provide us with permission to obtain any
financial record (as defined in section 1101(2) of the Right to
Financial Privacy Act) held by any financial institution (as defined in
section 1101(1) of the Right to Financial Privacy Act) with respect to
the applicant or recipient. This law also allows the Commissioner to
require such permission from deemors (i.e. individuals whose income and
resources we consider as being available to the applicant or
recipient).
This law requires us to tell you, or any other person whose income
and resources we consider as being available to you, how we will use
the permission and how long the permission lasts. It also allows us to
request the information from financial institutions without furnishing
a copy of the permission to the financial institution. We may request
the information from financial institutions at any time we think it is
needed to determine your eligibility or payment amount. Requests under
this provision are considered to meet the requirements of the Right to
Financial Privacy Act regarding identification and description of the
financial record to be disclosed.
This law also allows us to deny your SSI eligibility or suspend
your SSI eligibility if you, or any person whose income and resources
we consider as being available to you, refuses to provide or cancels
the permission.
Explanation of Changes
The Commissioner is exercising her authority under section 213 of
the Foster Care Independence Act of 1999 by promulgating new rules to
make giving permission to contact financial institutions a condition of
SSI eligibility. Therefore, we are amending our regulations by adding a
new section Sec. 416.207 to explain that in order to receive SSI
benefits, you must give us permission to contact any financial
institution, and request any financial records that financial
institution may have for you. The section further explains that the
permission to contact financial institutions is required from anyone
whose income and resources we consider as being available to you,
unless there is good cause why the permission cannot be obtained. This
section also explains that the permission to contact financial
institutions lasts until one of the following terminating events occur:
(1) You cancel the permission in writing and provide the writing to
us.
(2) The deemor cancels their permission in writing and provides the
writing to us.
(3) The basis on which we consider a deemor's income and resources
available to you ends, e.g. when spouses separate or divorce or a child
attains age 18.
(4) Your application for SSI is denied, and the denial is final. A
denial is final when made, unless you appeal the denial timely as
described in Sec. Sec. 416.1400 through 416.1499.
(5) You are no longer eligible for SSI as described in Sec. Sec.
416.1331 through 416.1335.
This section explains that we will ask financial institutions for
this information when we think that it is necessary to determine SSI
eligibility and payment amount. This section defines a financial
institution as any bank, savings bank, credit card issuer, industrial
loan company, trust company, savings association, building and loan,
homestead association, credit union, consumer finance institution, or
any other financial institution as defined in section 1101(1) of the
Right to Financial Privacy Act. The section also defines a financial
record as an original of, a copy of, or information known to have been
derived from any record held by the financial institution pertaining to
your relationship with the financial institution.
In addition, we are revising current Sec. 416.200 to add the new
section Sec. 416.207 as a reference, to redesignate current Sec.
416.1321 as Sec. 416.1320, and to add a new section Sec. 416.1321,
``Suspension for not giving us permission to contact financial
institutions,'' to Subpart M as a reason for suspending SSI benefits.
Public Comments
On May 2, 2002, we published proposed rules in the Federal Register
at 67 FR 22021 and provided a 60-day period for interested parties to
comment. We received comments from ten organizations and four
individuals. Because some of the comments received were quite detailed,
we have condensed, summarized or paraphrased them in the discussion
below. We address all of the significant issues raised by the
commenters that are within the scope of the proposed rules. We have
made revisions to the proposed rules to address some of the concerns of
the commenters.
Comment: Ten organizations submitted comments regarding the fact
that deemors (i.e. individuals whose income and resources we consider
as being available to the applicant or recipient) are required to
provide us with permission to obtain any financial record held by any
financial institution with respect to the deemor as a condition of the
applicant's or recipient's eligibility. Specifically, these
organizations stated that we should provide a good cause exception for
applicants and recipients who act in good faith to obtain the
permission from the deemor, but are unable to do so through no fault of
their own. In addition, six organizations stated that we should provide
a good cause exception from this third party requirement for applicants
and recipients who are victims of domestic violence. These
organizations believe that it is improper to deny or suspend benefits
because of the actions of a third party.
Response: After careful consideration, we have decided to include a
limited good cause exception. We believe a good cause exception is
warranted because it is consistent with our current policy. Good cause
might exist in cases where the applicant or recipient cannot obtain
permission from a deemor to access their financial records because the
deemor is harassing, abusing, or endangering the life of the applicant
or recipient. Good cause may also exist in cases where the applicant or
recipient acts in good faith to obtain the permission from certain
deemors, but is unable to do so through no fault of their own. We have
revised Sec. Sec. 416.207 (g) and 416.1321(a), and added Sec.
416.207(h) to include the good cause exception. These provisions are
consistent with our current policy regarding a third party's failure to
cooperate.
In Sec. 416.207(h)(3) we explain that good cause does not apply if
certain deemors (i.e. someone whose income and resources we consider as
available to you) refuse to give us permission to access their
financial records. It is our long-standing policy to deny an applicant
benefits or suspend a recipient's benefits if the applicant or
recipient's prospective or appointed representative payee, who is also
the legal guardian or parent with custody of a minor child, or if an
alien's sponsor or sponsor's living-with spouse, fails to provide
requested information. In these situations, the legal guardian or
[[Page 53508]]
custodial parent stands in the shoes of a legally incompetent
individual. The sponsor of an alien likewise has taken on a special
obligation with respect to the alien by signing an affidavit of
support. It is these special legal statuses that distinguish these
deemors from others.
Refusal on the part of a parent or legal guardian to comply with an
authorization request from us is the same as the applicant or recipient
themselves refusing to comply. In the sponsor's situation, a refusal to
comply would be inconsistent with their obligation under the affidavit
to support the recipient and could undermine the intent of the
affidavit of limiting the expenditure of public funds. Thus, the good
cause exception is not designed to address such situations, but instead
is intended primarily for the situation of a married recipient whose
uncooperative spouse lives in the same household but does not stand in
the shoes of the recipient nor does the spouse have a delineated
obligation of support. However, if a deemor as outlined in Sec.
416.207(h)(3) refuses to provide us access to his or her financial
records, we would not find good cause for such a refusal.
Comment: Two organizations submitted comments recommending that we
revise our language when we refer to ``anyone whose income and
resources we consider as being available to you.'' The organizations
believe that it would be useful to insert language, which states that
deeming situations are the only circumstances when third party
permission will be required.
Response: While we did not adopt this suggestion, we made a
clarification to show that the individuals in question are deemors. We
believe the language used is appropriate and is consistent with the
language in section 213 of the Foster Care Independence Act of 1999. In
the background section we state that ``individuals whose income and
resources we consider as being available to the applicant or
recipient'' are deemors and the words ``i.e. deemors,'' were inserted
in Sec. 416.207(a).
Comment: Two organizations stated that we should include a
provision that states that the permission we obtain to access the
financial records of third parties (i.e. deemors) will terminate when
deeming is no longer required.
Response: We are adopting this suggestion. The regulation states
that ``you must also provide us with permission from anyone whose
income and resources we consider as being available to you, i.e.,
deemors (see Sec. Sec. 416.1160, 416.1202, 416.1203, and 416.1204).''
We have revised Sec. 416.207(f) and added Sec. 416.207(f)(3) to
clarify that the permission we obtain to access the financial records
of deemors will terminate when deeming is no longer required and to
clarify that when a terminating event occurs, the permission to contact
financial institutions is not invalidated for past periods. We have
also made slight editorial changes to the language in Sec. Sec.
416.207(a) and (g) for purposes of grammatical consistency.
Regulatory Procedures
Executive Order 12866
The Office of Management and Budget (OMB) has reviewed these final
regulations in accordance with Executive Order 12866, as amended by
Executive Order 13258.
Regulatory Flexibility Act
We certify that these final regulations will not have a significant
economic impact on a substantial number of small entities because they
affect only individuals. Therefore, a regulatory flexibility analysis
as provided in the Regulatory Flexibility Act, as amended, is not
required.
Paperwork Reduction Act
These final rules contain reporting requirements at Sec. 416.207
and Sec. 416.1321. We solicited comments on these requirements on May
2, 2002 in proposed rules published in the Federal Register at 67 FR
22021 and provided a 60-day period for interested parties to comment.
Based on comments received, we have made revisions to the proposed
rules to address some of the concerns of the commenters (see Public
Comments section). However, these revisions did not alter the reporting
requirements imposed on the public in the final rule.
The public reporting burden is accounted for in the Information
Collection Requests for the various forms that the public uses to
submit the information to SSA. Consequently, a 1-hour placeholder
burden is being assigned to the specific reporting requirement(s)
contained in these rules. The forms used to collect this information
will not change as a result of this rule.
An Information Collection Request has been submitted to OMB. We
will publish a notice in the Federal Register upon OMB approval of the
information collection requirement(s).
(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: July 11, 2003.
Jo Anne B. Barnhart,
Commissioner of Social Security.
0
For the reasons set out in the preamble, we are amending part 416,
subparts B and M of chapter III, title 20, Code of Federal Regulations
to read as follows:
PART 416--SUPPLEMENTAL SECURITY INCOME FOR THE AGED, BLIND, AND
DISABLED
Subpart B--[Amended]
0
1. The authority citation for Subpart B of part 416 continues to read
as follows:
Authority: Secs.702(a)(5), 1110(b), 1602, 1611, 1614, 1615(c),
1619(a), 1631, and 1634 of the Social Security Act (42 U.S.C.
902(a)(5), 1310(b), 1381a, 1382, 1382c, 1382d(c), 1382h(a), 1383,
and 1383c); secs. 211 and 212, Pub. L. 93-66, 87 Stat. 154 and 155
(42 U.S.C. 1382 note); sec. 502(a), Pub. L. 94-241, 90 Stat. 268 (48
U.S.C. 1681 note); sec. 2, Pub. L. 99-643, 100 Stat. 3574 (42 U.S.C.
1382h note).
0
2. Revise the last sentence of Sec. 416.200 to read as follows:
Sec. 416.200 Introduction.
* * * You continue to be eligible unless you lose your eligibility
because you no longer meet the basic requirements or because of one of
the reasons given in Sec. Sec. 416.207 through 416.216.
0
3. Add a new Sec. 416.207 under the undesignated center heading
REASONS WHY YOU MAY NOT GET SSI BENEFITS FOR WHICH YOU ARE OTHERWISE
ELIGIBLE, to read as follows:
Sec. 416.207 You do not give us permission to contact financial
institutions.
(a) To be eligible for SSI payments you must give us permission to
contact any financial institution and request any financial records
that financial institution may have about you. You must give us this
permission when you apply for SSI payments or when we ask for it at a
later time. You must also provide us with permission from anyone whose
income and resources we consider as being available to you, i.e.,
deemors (see Sec. Sec. 416.1160, 416.1202, 416.1203, and 416.1204).
(b) Financial institution means any:
(1) Bank,
(2) Savings bank,
(3) Credit card issuer,
(4) Industrial loan company,
(5) Trust company,
(6) Savings association,
[[Page 53509]]
(7) Building and loan,
(8) Homestead association,
(9) Credit union,
(10) Consumer finance institution, or
(11) Any other financial institution as defined in section 1101(1)
of the Right to Financial Privacy Act.
(c) Financial record means an original of, a copy of, or
information known to have been derived from any record held by the
financial institution pertaining to your relationship with the
financial institution.
(d) We may ask any financial institution for information on any
financial account concerning you. We may also ask for information on
any financial accounts for anyone whose income and resources we
consider as being available to you (see Sec. Sec. 416.1160, 416.1202,
416.1203, and 416.1204).
(e) We ask financial institutions for this information when we
think that it is necessary to determine your SSI eligibility or payment
amount.
(f) Your permission to contact financial institutions, and the
permission of anyone whose income and resources we consider as being
available to you, i.e., a deemor (see Sec. Sec. 416.1160, 416.1202,
416.1203, and 416.1204), remains in effect until a terminating event
occurs. The following terminating events only apply prospectively and
do not invalidate the permission for past periods.
(1) You cancel your permission in writing and provide the writing
to us.
(2) The deemor cancels their permission in writing and provides the
writing to us.
(3) The basis on which we consider a deemor's income and resources
available to you ends, e.g. when spouses separate or divorce or a child
attains age 18.
(4) Your application for SSI is denied, and the denial is final. A
denial is final when made, unless you appeal the denial timely as
described in Sec. Sec. 416.1400 through 416.1499.
(5) You are no longer eligible for SSI as described in Sec. Sec.
416.1331 through 416.1335.
(g) If you don't give us permission to contact any financial
institution and request any financial records about you when we think
it is necessary to determine your SSI eligibility or payment amount, or
if you cancel the permission, you cannot be eligible for SSI payments.
Also, except as noted in paragraph (h), if anyone whose income and
resources we consider as being available to you (see Sec. Sec.
416.1160, 416.1202, 416.1203, and 416.1204) doesn't give us permission
to contact any financial institution and request any financial records
about that person when we think it is necessary to determine your
eligibility or payment amount, or if that person cancels the
permission, you cannot be eligible for SSI payments. This means that if
you are applying for SSI payments, you cannot receive them. If you are
receiving SSI payments, we will stop your payments.
(h) You may be eligible for SSI payments if there is good cause for
your being unable to obtain permission for us to contact any financial
institution and request any financial records about someone whose
income and resources we consider as being available to you (see
Sec. Sec. 416.1160, 416.1202, 416.1203, and 416.1204).
(1) Good cause exists if permission cannot be obtained from the
individual and there is evidence that the individual is harassing you,
abusing you, or endangering your life.
(2) Good cause may exist if an individual other than one listed in
paragraph (h)(3) of this section refuses to provide permission and: you
acted in good faith to obtain permission from the individual but were
unable to do so through no fault of your own, or you cooperated with us
in our efforts to obtain permission.
(3) Good cause does not apply if the individual is your
representative payee and your legal guardian, if you are a minor child
and the individual is your representative payee and your custodial
parent, or if you are an alien and the individual is your sponsor or
the sponsor's living-with spouse.
Subpart M--[Amended]
0
4. The authority citation for subpart M of part 416 continues to read
as follows:
Authority: Secs. 702(a)(5), 1129A, 1611-1615, 1619, and 1631 of
the Social Security Act (42 U.S.C. 902(a)(5), 1382-1382d, 1382h,
1383 and 1320a-8a).
0
5. Redesignate Sec. 416.1321 as Sec. 416.1320 and add new Sec.
416.1321 to read as follows:
Sec. 416.1321 Suspension for not giving us permission to contact
financial institutions.
(a) If you don't give us permission to contact any financial
institution and request any financial records about you when we think
it is necessary to determine your SSI eligibility or payment amount, or
if you cancel the permission, you cannot be eligible for SSI payments
(see Sec. 416.207) and we will stop your payments. Also, if anyone
whose income and resources we consider as being available to you (see
Sec. Sec. 416.1160, 416.1202, 416.1203 and 416.1204) doesn't give us
permission to contact any financial institution and request any
financial records about that person when we think it is necessary to
determine your SSI eligibility or payment amount, or that person
cancels the permission, you cannot be eligible for SSI payments and we
will stop your payments. We will not find you ineligible and/or stop
your payments if the person whose income and resources we consider as
being available to you fails to give or continue permission and good
cause, as discussed in Sec. 416.207(h), exists.
(b) We will suspend your payments starting with the month after the
month in which we notify you in writing that:
(1) You failed to give us permission to contact any financial
institution and request any financial records about you, or
(2) The person(s) whose income and resources we consider as being
available to you failed to give us such permission.
(c) If you are otherwise eligible, we will start your benefits in
the month following the month in which:
(1) You give us permission to contact any financial institution and
request any financial records about you, or
(2) The person(s) whose income and resources we consider as being
available to you gives us such permission.
0
6. Revise references from ``Sec. 416.1321'' to read ``Sec. 416.1320''
in the following sections:
a. Sec. 416.421(a);
b. Sec. 416.640(e)(5)(iii);
c. Sec. 416.1231(b)(9);
d. Sec. 416.1242(d);
e. Sec. 416.1245(b)(5);
f. Sec. 416.1247(b);
g. Sec. 416.1335;
h. Sec. 416.1337(b)(3)(ii);
i. Sec. 416.1618(d)(3)(i);
j. Sec. 416.1618(d)(3)(ii); and
k. Sec. 416.1618(d)(3)(iv).
[FR Doc. 03-23134 Filed 9-10-03; 8:45 am]
BILLING CODE 4191-02-P