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munity Development Block Grant, Urban Development Action Grant, Secretary's Fund, Section 312 Rehabilitation Loan, Rental Rehabilitation, and Urban Homesteading programs. The main purpose of the rule is to update current regulations implementing section 302 of the Lead-Based Paint Poisoning Prevention Act in light of advances in knowledge regarding the causes of elevated blood-lead levels of children, as well as hazard detection and abatement techniques. HUD also has reexamined its regulations in light of the decision in Ashton v. Pierce, 716 F.2d 56 (D.C. Cir. 1983), which held that the regulations are deficient in not treating any intact lead-based paint surfaces accessible to children as an "immediate hazard" under the Act. This final rule amending 24 C.FR. Parts 510, 511, 570, and 590 was to be effective March 19, 1987. 52 Fed. Reg. 4870 (Feb. 17, 1987).

Section 8 Housing Vouchers. HUD announces that FY 1987 housing voucher funding for its Housing Voucher Program authorized by section 8(0) of the United States Housing Act of 1937 will be available for (1) housing vouchers distributed by formula allocation; (2) families living in public housing units that are being demolished or disposed of with HUD approval; (3) families living in Section 8 New Construction or Substantial Rehabilitation projects where the owner has sole discretion to "opt-out" of an additional term of assistance under the Section 8 Housing Assistance Payments Program and does so; (4) families living in Section 8 Loan Management Set-Aside projects where the owner and HUD do not agree to renew the contract of assistance for an additional term; and (5) families affected by the Rental Rehabilitation Program. Additional funding will not be available for the Freestanding (large PHA) Housing Voucher Demonstration Program or the Small PHA/Rural Area Housing Voucher Demonstration Program. The notice, which was effective February 19, 1987, also describes requirements for all of the different components of the program. 52 Fed. Reg. 5250 (Feb. 19, 1987).

Mortgage Insurance. HUD is decreasing the maximum allowable interest rate on Section 232 (mortgage insurance for nursing homes and intermediate care facilities) and on Section 235 (mortgage insurance and assistance payments for home ownership and project rehabilitation) insured loans from 9.00 to 8.50 percent. This final rule is intended to bring the maximum permissible financing charges for these programs into line with competitive market rates. This final rule amending 24 C.FR. Parts 232 and 235 was effective January 19, 1987. 52 Fed. Reg. 5760 (Feb. 26, 1987).

IMMIGRATION

Nonimmigrants Employed in This Country. The Immigration and Naturalization Service

amends its regulations at 8 C.FR. Part 214 relating to alien workers seeking temporary classification under sections 101(a)(15)(H)(i) and 101(a)(15)(L) of the Immigration and Nationality Act. INS intends to clarify and conform its policy to the intent of Congress as it relates to these classes of nonimmigrants and to facilitate the entry into the United States of certain nonimmigrants needed by international businesses and other organizations. This final rule was to be effective March 30, 1987. 52 Fed. Reg. 5738 (Feb. 26, 1987).

MENTAL HEALTH

Rural Mental Health Demonstration Projects. To improve planning, coordination, and community-based service delivery for rural residents experiencing behavioral and emotional dysfunction or mental disorder, the National Institute of Mental Health will award $1.2 million to state governors (or to the state agency designated by the governors) to establish four, eighteen-month rural demonstration projects. 52 Fed. Reg. 6075 (Feb. 27, 1987).

NATIVE AMERICANS

Community Development Block Grants. This final rule, which is substantially similar to the proposed rule published at 50 Fed. Reg. 31194 (Aug. 1, 1985), revises the policies and procedures for rating and ranking applications from Indian tribes and Alaskan native villages for community development block grant assistance under section 107 of the Housing and Community Development Act of 1974. This rule establishes a threshold requiring all applicants to show that, at a minimum, 51 percent of the beneficiaries of each project will be low- and moderate-income persons. Additionally, tribes are given more discretion and flexibility to pursue their objectives in the rehabilitation and economic development categories, and uniformity in measuring "quality" factors is established. This final rule amending 24 C.FR. Part 571 was to be effective March 19, 1987. 52 Fed. Reg. 4897 (Feb. 18, 1987).

Scholarship Programs for Health Professions. The Indian Health Service (IHS) is publishing a list of health and allied health professions for which support under the various scholarship programs administered by the IHS may be available for the 1987-88 academic year and possibly beyond. This IHS policy was effective February 25, 1987. 52 Fed. Reg. 5586 (Feb. 25, 1987).

PRISONS

Paroling Policy Guidelines. The Parole Commission is making a number of interpretive clarifications, revisions, and additions to its paroling policy guidelines contained in 28 C.FR.

§§ 2.20 and 2.36. The Commission is amending the punishments it imposes for certain sexual offenses against minors, for offenses related to the freebased form of cocaine popularly known as crack, and for criminal conduct in institutions (i.e. escape, attempted escape, and certain administrative rule infractions). This final rule was to be effective April 5, 1987. 52 Fed. Reg. 5761 (Feb. 26, 1987).

Phaseout of Sentences with Parole Eligibility. The Parole Commission is adopting a new regulation at 28 C.FR. § 2.64 to explain the Commission's interpretation of section 235(b)(3) of the Sentencing Reform Act of 1984, which provides for the transition from the present system of sentences with parole eligibility to a determinate sentencing system. Section 235(b)(3) calls for the Commission to set release dates within the applicable parole guidelines ranges for the prisoners remaining in its jurisdiction before ceasing operations. The Commission interprets the release provision of section 235(b)(3) as (1) applying only to persons who will be incarcerated on October 31, 1992; (2) not requiring the release dates to be set any earlier than the last three months before October 31, 1992; and (3) not allowing the Commission to set a release date that would conflict with the parole eligibility or ineligibility provisions of a prisoner's sentence. This final rule was effective February 26, 1987. 52 Fed. Reg. 5763 (Feb. 26, 1987).

PUBLIC UTILITIES/ENERGY

Sale of Deregulated Gas. In order to prepare for price deregulation under section 121 of the Natural Gas Policy Act (NGPA) for certain types of natural gas subject to sections 102, 103, 105, and 106 of the NGPA, the Federal Energy Regulatory Commission issued a final rule (Order No. 406) at 49 Fed. Reg. 46874 (Nov. 29, 1984) amending its regulations at 18 C.FR. Part 271. The FERC is issuing this order to clarify that a freely negotiated contract for the sale of gas deregulated on November 1, 1979, may contain a provision that permits an allowance for production-related costs. This order, issued subject to leave of court, was effective March 12, 1987. 52 Fed. Reg. 4137 (Feb. 10, 1987).

Low-Income Home Energy Assistance Program. HHS is making two changes to its regulations governing administration of the LowIncome Home Energy Assistance Program (LIHEAP). This interim final rule provides procedures to exempt grantees from having to meet the statutorily imposed time limits for responding to requests for energy crisis intervention assistance. In addition, the rule clarifies grantee use of the federal government's official poverty income guidelines in establishing income criteria for LIHEAP. This interim final rule amending

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45 C.FR. Part 96 was effective February 13, 1987. 52 Fed. Reg. 4624 (Feb. 13, 1987).

Personnel Dosimetry Devices. The Nuclear Regulatory Commission is amending its regulations to require all licensees to have personnel dosimetry devices processed by processors that have been accredited by the National Voluntary Laboratory Accreditation Program of the National Bureau of Standards. Personnel dosimeters are devices worn by workers to monitor their exposure to radiation. NRC initiated this action because performance evaluations of personnel dosimetry processors indicated that a significant percentage of such processors were not performing with a reasonable degree of accuracy. This final rule amending 10 C.FR. Part 20 was effective February 12, 1987. 52 Fed. Reg. 4601 (Feb. 13, 1987).

SOCIAL SECURITY/SSI

Hearing on OASDI Benefits. The Social Security Administration is issuing final regulations mandating that, if a claimant for OASDI benefits under Title II of the Social Security Act files an application before the first month he or she meets all the requirements for OASDI benefits, the application will be valid only if all the requirements are met on or before the date the administrative law judge makes a hearing decision. If there is no ALJ hearing, the claim will be allowed only if the claimant meets all the requirements on or before the date a final determination is made. In addition, this final rule provides that, in general, the Appeals Council will, in determining whether to review or in reviewing ALJ hearing decisions, only consider additional evidence that relates to the period on or before the date of the ALJ hearing decision. The changes are based on section 306 of the Social Security Disability Amendments of 1980. This final rule amending 20 C.FR. Parts 404 and 416 was effective February 9, 1987. 52 Fed. Reg. 4001 (Feb. 9, 1987).

Liquid Resources. The Social Security Administration is amending its regulations to distinguish between liquid and nonliquid resources and to clarify that changes during a month in the existence, value, or excludability of resources are not taken into account until the first moment of the next month. SSA distinguishes between liquid and nonliquid resources because, under its regulations, liquid resources cannot be excluded as property essential to self-support unless they are part of a trade or business. In addition, a person cannot receive conditional payments if liquid resources exceed a certain limit. This final rule amending 20 C.FR. Part 416 was effective February 11, 1987. 52 Fed. Reg. 4282 (Feb. 11, 1987).

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Computer Match for Selective Service Registration Violators. The Selective Service System is incorporating additional sources of registration-age men into records of federal and non-federal sources to match them with individual records maintained by the agency. Under the Selective Service System Registration Compliance Program, the agency will mail letters and registration forms to registration-age men who are not on record as being registered or on active duty in the armed forces, and as a next step will report to the Justice Department for further investigation and possible prosecution those individuals who still have not registered. 52 Fed. Reg. 5232 (Feb. 19, 1987).

Selective Service System Systems of Records. The Selective Service System proposes to revise the routine uses in its systems of records SSS-4, SSS-5, and SSS-10. The routine uses of records include: (1) exchanging information with employers regarding a registrant who is a conscientious objector for the purpose of placement in alternative service and supervision of performance in such service in lieu of induction into military service; (2) reviewing and processing suspected violations of the Military Selective Service Act, or for perjury, and for defense of a civil action arising from administrative processing under such Act; and (3) assisting veterans in need of information concerning reemployment rights. The revisions of these systems of re

cords was to become effective on March 23, 1987, unless the agency published notice to the contrary. 52 Fed. Reg. 5231 (Feb. 19, 1987).

HUD Mortgage Insurance Preference. In accordance with 1981 and 1982 amendments to 38 U.S.C. § 3103A, HUD is increasing the amount of time necessary for more recent veterans to qualify for HUD mortgage insurance. At present, the regulations at 24 C.FR. Parts 203, 220, and 226 require that, before a veteran may qualify for the lower down payment treatment accorded to veterans, a certificate of eligibility from the VA must be submitted to HUD. This final rule was to be effective March 26, 1987. 52 Fed. Reg. 5533 (Feb. 25, 1987).

Report of Special Medical Advisory Group. The Veterans Administration has issued the annual report of the VA's Special Medical Advisory Group for calendar year 1986. The report summarizes activities of the group on matters relating to the care and treatment of disabled veterans, and other matters pertinent to the VA's Department of Medicine and Surgery. 52 Fed. Reg. 5885 (Feb. 26, 1987).

Computer Match to Verify Eligibility for Education Benefits. The Defense Manpower Data Center (DMDC) of the Department of Defense and the Department of Veterans Benefits of the VA plan to conduct a series of computer data exchanges to verify eligibility for VA education benefits and to prevent fraud and

abuse. The data exchanges will compare DMDC data concerning individuals on active duty and drilling reservists with VA education benefit records to determine whether there are instances of underpayment or overpayment of education benefits under Title 38 of the United States Code. The proposed action was to be effective, without further notice, on March 30, 1987, unless comments were received that would result in a contrary determination. 52 Fed. Reg. 6063 (Feb. 27, 1987).

Education Loans in Default. The Veterans Administration is adding to 38 C.FR. Part 21 a

policy concerning the default of a VA education loan that previously has appeared only in internal agency documents. Under this policy, once such a veteran's loan has been placed in default, that default is not set aside even though the veteran subsequently re-enrolls in training at the half-time or greater rate. A loan is placed in default if it becomes payable because the veteran has ceased to train at the half-time or greater rate for nine months and if a payment is not forthcoming as scheduled under the agreed repayment plan. These final regulations were effective December 11, 1986. 52 Fed. Reg. 5963 (Feb. 27, 1987).

WELFARE

Poverty Income Guidelines. HHS provides the 1987 update of the poverty income guidelines that reflect last year's change in the Consumer Price Index. The poverty income guidelines are used for administrative purposes, for instance, for determining whether a person or family is financially eligible for assistance or services under a particular federal program. The guidelines are a simplified version of the poverty thresholds used by the Bureau of the Census to prepare its statistical estimates of the number of persons and families in poverty. This notice was effective February 20, 1987. 52 Fed. Reg. 5340 (Feb. 20, 1987).

GAO Reports

The following reports of interest to legal services advocates were recently issued by the General Accounting Office. Requests for copies of GAO reports should be directed to the U.S. General Accounting Office, P.O. Box 6015, Gaithersburg, MD 20877, (202) 275-6241.

Consumer

Consumer Product Safety Commission: Concerns About Staff Memorandum Relating to AllTerrain Vehicles (Nov. 1986) (13pp.) (free) (GAO/HRD-87-7).

Domestic Relations

Child Support: States' Progress in Implementing the 1984 Amendments (Oct. 1986) (64pp.) (free) (GAO/HRD-87-11).

Education

University Finances: Research Revenues and Expenditures (July 1986) (59pp.) (free) (GAO/ RCED-86-162BR).

Food Programs

Food Stamp Program: Restoration of Improperly Denied or Terminated Benefits (Oct. 1986) (11pp.) (free) (GAO/RCED-87-51).

Food Stamp Program: Statistical Validity of Agriculture's Payment Error-Rate Estimates (Oct. 1986) (30pp.) (free) (GAO/RCED-87-4).

Health

Medicaid: Results of Certified Fraud Control Units (Oct. 1986) (43pp.) (free) (GAO/HRD-87-12FS). Medigap Insurance: Law Has Increased Protection Against Substandard and Overpriced Policies (Oct. 1986) (45pp.) (free) (GAO/HRD-87-8).

Housing

Housing for the Elderly: HUD's Cost Containment Program Could Be More Effective (Sept. 1986) (79pp.) (free) (GAO/RCED-86-106).

Rental Housing: Potential Reduction in the Section 8 Existing and Voucher Inventory (Oct. 1986) (17pp.) (free) (GAO/RCED-87-20FS).

Social Security/SSI

Social Security: Adjusting Continuing Disability Review Priorities (Oct. 1986) (4pp.) (free) (GAO/HRD-87-4).

Welfare

Needs-Based Programs: Eligibility and Benefit Factors (July 1986) (53pp.) (free) (GAO/HRD-86107FS).

Welfare Simplification: Thirty-Two States' Views on Coordinating Services for Low-Income Families (Oct. 1986) (20pp.) (free) (GAO/HRD-87-6FS).

Copies of documents abstracted are available from the National Clearinghouse for Legal Services, 407 S. Dearborn, Suite 400, Chicago, IL 60605. Please cite the Clearinghouse Library number appearing at the beginning of each abstract. Requests from attorneys practicing in Legal Services Corporation projects will be filled free of charge, one copy per project. All other requests must be accompanied by a check payable to the "National Clearinghouse for Legal Services, Inc." of 10 cents per page plus a postage and handling charge of $1.50 for orders of 50 pages or less and $3.00 for more than 50 pages.

ATTORNEYS/LEGAL SERVICES

Cost-of-Living Increase Allowed in Attorney Fees for SSI Claimant

42,249. Inyard v. Bowen, No. 85 C 5114 (N.D. Ill. Jan. 28, 1987). Plaintiff represented by Ellen Katz, Legal Assistance Foundation of Chicago, 343 S. Dearborn St., Chicago, IL 60604, (312) 341-1070. [Here reported: (Accession No. 1009850) 42,249A Opinion & Order (3pp.).]

The court has awarded attorney fees, adjusted because of an increase in the cost of living, to plaintiff, whose application for SSI disability benefits was denied on grounds the court has concluded were not substantially justified. The Secretary originally denied plaintiff's claim for SSI based on a finding that he did not have a mental impairment, but benefits were awarded following remand by the court. On plaintiff's request for attorney fees, the court has found that the Secretary ignored considerable evidence of plaintiff's disability. Further, the court found that the Secretary improperly relied solely on the medical advisor's opinion and did not independently assess plaintiff's ability to work. Finally, the court found that the medical advisor's opinion rested on factors not listed in the relevant disability criteria and on a conclusion that is contrary to some of the evidence. Consequently, the court concluded that the Secretary's denial of plaintiff's application was not substantially justified and that an award of attorney fees is appropriate. Counsel notes that the court adjusted the fees upward from $75 per hour to $88 per hour to take into account the increase in the cost of living.

Attorney Fees Sought Following Success in Enjoining Deeming of Grandparent Income to 18-Year-Old Nonstudent Parents

40,185. Jimenez v. Cohen, No. 85-5285 (E.D. Pa. filed Jan. 6, 1987). Plaintiffs represented by Amy Hirsch, Community Legal Services, 5219 Chestnut St., Philadelphia, PA 19139, (215) 471-2200; Deborah Harris. [Here reported: (Accession No. 1009855) 40,185L Plfs' Motion for Award of Attorney Fees & Costs & Memo in Support (49pp.). Previously reported at 20 CLEARINGHOUSE REV. 754 (Oct. 1986).]

Plaintiff class in this action successfully challenged state and federal deeming regulations that violate the AFDC provisions of the Social Security Act, 42 U.S.C. § 601. The district court found defendants' regulations to be illegal, and plaintiffs obtained injunctive, declaratory, and notice relief for a statewide class of 18-year-old, nonstudent parents and their needy children who were being denied subsistence AFDC benefits as a result of defendants' grandparent income deeming rules. Federal and state defendants appealed, but counsel notes that they have now voluntarily dismissed their appeals based upon the Tax Reform Act Amendment clarifying that 18-year-old parents are not subject to grandparent deeming. Notice of the availability of administrative remedies for payment of retroactive benefits is being prepared and will be sent to class members. Plaintiffs have moved for the award of attorney fees and costs at market rates against all defendants pursuant to the Civil Rights Attorney's Fees Awards Act of 1976 and the EAJA. Plaintiffs contend that they are entitled to fees at market rates because of such factors as the limited willingness of attorneys to accept this type of case, the expertise of counsel, and customary fees and awards in other cases. Plaintiffs have requested $29,916 in fees.

CIVIL PROCEDURE/ADMINISTRATIVE LAW

U.S. Supreme Court to Consider Whether Prisoner Exhausted State Court Remedies in Challenge to Ex Post Facto Parole Criteria

42,199. Granberry v. Greer, No. 85-6790 (U.S. filed Feb. 5, 1987). Petitioner represented by Howard Eisenberg, 104 Lesar Law Bldg., Southern Illinois University, School of Law, Carbondale, IL 62901, (618) 536-4423. [Here reported: (Accession No. 1009831) 42,199A Petitioner-Appellant's Brief (31pp.); 42,199B Respondent-Appellee's Brief (25pp.); 42,199C PetitionerAppellant's Reply Brief (7pp.); 42,199D Petition for Reh'g & Suggestion for Reh'g in Banc (19pp.); 42,199E Response in Opp'n to Petition for Reh'g & Suggestion for Reh'g in Banc (19pp.); 42,199F Petition for Writ of Cert to the Seventh Circuit (26pp.); 42,199G Respondent's Brief in Opp'n (17pp.); 42,199H Petitioner's Brief (21pp.); 42,199-1 Joint Appendix (17pp.); 42,199J Respondent's Brief (47pp.); 42,199K Petitioner's Reply Brief (8pp.).]

Authorization Agreements for Legal Services Clients

The Legal Assistance Foundation of Chicago (LAFC) has recently revised its Authorizations to Represent and Agreements Regarding Costs and Attorney Fees, retainer forms used in all cases accepted by LAFC, and has agreed to make these forms available to other legal services offices. The forms were revised in light of the United States Supreme Court's decision in Evans v. Jeff D., 106 S. Ct. 1531 (1986) (Clearinghouse No. 37,341), that there is no absolute bar to a defendant conditioning a settlement offer on plaintiffs' counsel waiving any statutorily authorized fees. In addition, although the forms are simply worded, they incorporate numerous difficult decisions about what is permitted or required by LSC regulations, by ethical rules, and by laws governing recovery of fees and tax-exempt status. Indeed, the forms were reviewed by a linguist who "translated" them into plain English.

LAFC uses three basic authorization forms-a short form and two long forms, one each for individual cases and class cases. The short form, which is less than one page long, is used in the vast majority of cases, those in which substantial representation is not anticipated. It is used for cases in which only advice is given and for administrative cases not implicating substantial adjudicative proceedings, such as fair hearings before the state Department of Public Aid. The long form is used whenever there is court litigation or any potential for the recovery of costs and/or attorney fees. The long form includes information about negotiating a settlement and about terminating LAFC representation.

The long form also contains a separate Agreement Regarding Costs and Attorney Fees. This form describes how LAFC may be paid for court costs and lawyers' costs if plaintiff wins the case in court or if the case is settled. Further, the agreement addresses considerations for deciding whether to settle and explains lump sum settlements and common fund settlements. It provides that, ordinarily, a client will only give permission to settle a case if the defendant agrees to pay reasonable attorney fees or to leave this question for the court to decide. In rare cases in which the client refuses to sign the agreement described above, LAFC uses an Agreement Regarding Costs and Attorneys' Fees in Cases in Which the Client Does Not Agree to Assure That LAFC is Reasonably Compensated for Its Work. LAFC also has a special authorization for group representation and for legislative or administrative advocacy.

A set of these materials is available as LAFC Revised Authorization Agreements, Clearinghouse No. 42,246.

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Petitioner, a prisoner in the Illinois prison system, has appealed to the U.S. Supreme Court the Seventh Circuit's ruling that he failed to exhaust state court remedies prior to filing in federal court this action, which alleges that state parole authorities have applied parole criteria to his case that were adopted by the state legislature subsequent to his conviction. As a result of defendants' application of the new parole criteria, petitioner alleges that he has been repeatedly denied parole. He brought two separate actions for mandamus in the Illinois Supreme Court arguing that the application of these parole release criteria to his case operated as an ex post facto law and that their application violated his due process rights. Both actions for mandamus were denied, and petitioner commenced this action in the federal court seeking a writ of habeas corpus.

The Attorney General filed a motion to dismiss, which the court granted on the merits. Neither the district court nor the Attorney General made any mention of exhaustion of state court remedies as a basis for the motion or decision. Petitioner appealed to the Seventh Circuit. On appeal, the Attorney General argued for the first time that petitioner failed to exhaust state court remedies, and petitioner responded that the most recent precedent held that the failure to raise exhaustion in the district court constituted waiver. The Seventh Circuit held that, in light of the Court's decision in Rose v. Lundy, 455 U.S. 509 (1982), it was required to consider the issue and determined that petitioner had not exhausted his state remedies. On appeal to the U.S. Supreme Court, petitioner argues that the Court's decision in Rose does not address the question of state waiver of the exhaustion

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