Sections 404.1715; 416.1515

Federal Register / Vol. 73, No. 174 / Monday, September 8, 2008 / Proposed Rules
rule were requested on or before
September 23, 2008.
Extension of Comment Period
In response to the proposed rule
published in the Federal Register, CBP
has received correspondence from
several parties requesting an extension
of the comment period. A decision has
been made to grant an extension of 30
days. Comments are now due on or
before October 23, 2008.
Dated: September 2, 2008.
Harold M. Singer,
Director, Regulations and Disclosure Law
Division, Regulations and Rulings, Office of
International Trade.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade and
Tariff Policy), Office of Tax Policy, United
States Treasury Department.
[FR Doc. E8–20662 Filed 9–5–08; 8:45 am]
BILLING CODE 9111–14–P

SOCIAL SECURITY ADMINISTRATION
20 CFR Parts 404, 408, 416, and 422
[Docket No. SSA–2007–0068]
RIN 0960–AG56

Revisions to Rules on Representation
of Parties
Social Security Administration.
ACTION: Notice of proposed rulemaking.

sroberts on PROD1PC70 with PROPOSALS

AGENCY:

SUMMARY: We are proposing several
revisions to our rules on representation
of parties. These proposed rules would
recognize entities as representatives,
define the concept of a principal
representative, and authorize principal
representatives to sign and file a claim
for benefits on behalf of a claimant.
These proposed rules would also
mandate the use of Form SSA–1696 to
appoint, revoke, or withdraw an
appointment of a representative, and to
waive a fee or direct payment of the fee.
We propose to define the concept of a
professional representative and require
professional representatives to use our
electronic services as they become
available, including requiring
professional representatives to submit
certain requests for reconsideration or a
hearing before an administrative law
judge (ALJ) electronically. Finally, we
propose to require representatives to
keep paper copies of certain documents
that we may require. We are proposing
these revisions to reflect changes in
representatives’ business practices and
to improve our efficiency by enhancing
use of the Internet.
DATES: To make sure that your
comments are considered, we must

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receive them no later than November 7,
2008.
ADDRESSES: You may submit comments
by any one of four methods—Internet,
facsimile, regular mail, or handdelivery. Commenters should not
submit the same comments multiple
times or by more than one method.
Regardless of which of the following
methods you choose, please state that
your comments refer to Docket No.
SSA–2007–0068 to ensure that we can
associate your comments with the
correct regulation:
1. Federal eRulemaking portal at
http://www.regulations.gov. (This is the
most expedient method for submitting
your comments, and we strongly urge
you to use it.) In the Search Documents
section of the Web page, type ‘‘SSA–
2007–0068’’, select ‘‘Go’’, and then click
‘‘Send a Comment or Submission.’’ The
Federal eRulemaking portal issues you a
tracking number when you submit a
comment.
2. Telefax to (410) 966–2830.
3. Letter to the Commissioner of
Social Security, P.O. Box 17703,
Baltimore, MD 21235–7703.
4. Deliver your comments to the
Office of Regulations, Social Security
Administration, 922 Altmeyer Building,
6401 Security Boulevard, Baltimore,
Maryland 21235–6401, between 8 a.m.
and 4:30 p.m. on regular business days.
All comments are posted on the
Federal eRulemaking portal, although
they may not appear for several days
after receipt of the comment. You may
also inspect the comments on regular
business days by making arrangements
with the contact person shown in this
preamble.
Caution: All comments we receive
from members of the public are
available for public viewing on the
Federal eRulemaking portal at http://
www.regulations.gov. Therefore, you
should be careful to include in your
comments only information that you
wish to make publicly available on the
Internet. We strongly urge you not to
include any personal information, such
as your Social Security number or
medical information, in your comments.
FOR FURTHER INFORMATION CONTACT:
Marg Handel, Supervisory Social
Insurance Specialist, Office of Income
Security Programs, Social Security
Administration, 6401 Security
Boulevard, Baltimore, MD 21235–6401,
(410) 965–4639. 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 http://www.socialsecurity.gov.
SUPPLEMENTARY INFORMATION:

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Electronic Version
The electronic file of this document is
available on the date of publication in
the Federal Register at http://
www.gpoaccess.gov/fr/index.html.
Explanation of Changes
Background
We may issue rules and regulations to
administer the provisions of the Act. 42
U.S.C. 405(a), 902(a)(5), 810(a), and
1383(d)(1). Specifically, we may issue
regulations to recognize agents or other
persons, other than attorneys, as
representatives of individuals claiming
benefits under the programs we
administer. 42 U.S.C. 406(a)(1) and
1383(d)(2). We may also issue
regulations to administer the Special
Benefits for Certain World War II
Veterans program, 42 U.S.C. 1010, and
we have extended the rules by which
we appoint and discipline
representatives for claims under that
program except where to do so would be
impractical or contrary to the Act. 20
CFR 408.1101. Pursuant to the cited
authority, we propose to revise our
current regulations on Representation of
Parties found in part 404 subparts G, J,
and R, part 408 subpart K, part 416
subparts C, N, and O, and part 422
subparts C and F.
Recognizing Entities as Representatives
Individuals who want to obtain
benefits from us may want someone to
help them through the application
process. Frequently, such claimants
formally appoint a representative to act
on their behalf and help guide their
claim. A representative may, on behalf
of a claimant, obtain and submit
information and evidence about the
claim, make statements about facts and
law, and make requests or give notices
about the claim to us. In return, the
representative may receive a fee for their
services from a portion of the claimant’s
past-due benefits.
Currently, we recognize attorneys or
other ‘‘persons’’ as representatives of
individuals who claim benefits under
title II or title XVI of the Act. 42 U.S.C.
406(a)(1) and 1383(d)(1). Although the
term ‘‘person’’ is defined broadly in the
Act to include partnerships,
corporations, and associations, we have
previously chosen to recognize only
individuals as representatives of
claimants. In the decades since we
adopted that policy, the business
practices of those who represent
claimants have changed significantly.
Many representatives now practice in
group settings and provide their services
collectively to claimants. In addition,
many claimants may prefer to hire a

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sroberts on PROD1PC70 with PROPOSALS

firm rather than a single individual
within the firm. Recognizing entities as
representatives will make it easier for
individuals to obtain the representation
they want. We believe it is appropriate
for us to propose to amend our rules to
more accurately reflect the changes in
the way representatives conduct their
businesses.
Under our current process, we require
the filing of a new Form SSA–1696,
Appointment of Representative, to
appoint each individual associated with
an entity who represents a claimant
before us. By recognizing entities as
representatives, we will give claimants
better flexibility to pursue their claims
by not requiring the filing of a new
Form SSA–1696 for each entity
employee who represents a claimant
during the claims process. This proposal
will allow entities who represent
claimants to alternate employees to
represent a claimant based on
availability and workload. However, an
entity will be bound by the signatures
and actions of its employees during
their association with the entity,
regardless of whether that association
ends at a later date. If the claimant
appoints an entity as his or her
representative, the entity employee who
signs the Form SSA–1696 on behalf of
the entity will be considered the contact
person for the entity for the purpose of
receiving notices and information from
us until or unless the entity updates its
contact person information.
The proposed change also will allow
us to properly pay entities for the
representational services they provide to
claimants, if certain conditions are met.
It also makes our reporting to the
Internal Revenue Service (IRS) and the
issuance of Form IRS 1099-MISC to
entities more efficient. We propose to
permit ‘‘direct payment’’ of fees to
entities if the employees who perform
representational services on their behalf
meet our requirements for direct
payment. 42 U.S.C. 406 and the Social
Security Protection Act of 2004 (SSPA),
Public Law 108–203, section 301.
We propose to include these rules in
§§ 404.1703, 404.1710, 404.1712,
404.1715, 404.1720, 404.1730, 404.1732,
416.1503, 416.1510, 416.1512, 416.1515,
416.1520, 416.1530, and 416.1732. We
also propose to make conforming
changes to other sections.
Multiple Representatives and the Role of
a Principal Representative
We propose new rules explaining our
current policy that a claimant may
appoint multiple representatives to
represent him or her at the same time.
A claimant may appoint one or more
individuals or entities to work on his or

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her claim at the same time. A principal
representative is responsible for
disseminating information and requests
from us to a claimant and the claimant’s
other representatives, if any. It is our
current practice to require a claimant to
appoint a principal representative only
if the claimant appoints more than one
representative. We now propose to
require that a claimant choose and
appoint a principal representative. If a
claimant appoints only one
representative, that individual or entity
is the principal representative.
If a principal representative’s
authority ends for any reason, and the
claimant continues to be represented by
only one appointed representative, we
will consider that appointed
representative to be the claimant’s
principal representative until the
claimant files a new Form SSA–1696
with us designating another principal
representative. If a principal
representative’s authority ends for any
reason, and the claimant continues to be
represented by multiple representatives,
we will name one of the appointed
representatives as the principal
representative. The claimant may
change the principal representative by
filing a new Form SSA–1696.
We also propose to allow principal
representatives to sign and file
applications on behalf of claimants,
provided the claimant has opportunity
to review and verify the accuracy of the
completed application. We expect this
change to expedite the claims filing
process, simplify the application
process for some claimants, and afford
the principal representative the
opportunity to better serve the client.
However, a claimant will have to
expressly acknowledge on the Form
SSA–1696 that he or she is responsible
for the information provided to the
principal representative for the
application. We believe that this type of
acknowledgement is necessary to ensure
that the claimant remains responsible
for the content of the application.
We will send to a claimant and his or
her representatives notices relating to
the appointment of a principal
representative and other representatives,
the revocation of the appointment of
any representative, and the withdrawal
of any representative. We will also send
notices regarding the release of a
claimant’s past-due benefits to any
representative who fails to file a request
for approval of a fee.
Through these changes, we believe
that we will better accommodate the
needs of claimants and their
representatives, that claimants’
representatives will be better able to

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serve their clients, and that we will
process fee payments more efficiently.
We propose to include these rules in
§§ 404.612, 404.1700, 404.1703,
404.1705, 404.1707, 404.1710, 404.1715,
408.1101, 416.315, 416.1500, 416.1503,
416.1505, 416.1507, 416.1510, and
416.1515.
The Role of a Professional
Representative
We propose to introduce the concept
of a professional representative and to
distinguish it from a principal
representative. A professional
representative includes any attorney,
any individual other than an attorney,
or any entity that holds itself out to the
public as providing representational
services before us (see §§ 404.1735 and
416.1535), regardless of whether the
representative charges or collects a fee
for providing the representational
services.
We also propose to require that
professional representatives conduct
business with us electronically at the
times and in the manner that we
prescribe. For example, we intend to
require a professional representative to
use electronic media that we prescribe,
such as the Internet, to register with us
and to file certain requests for
reconsideration and hearings before an
ALJ. We are continuing to improve
access for claimants, representatives,
and the general public to forms and
information about our programs by
automating more of our business
processes. When we have completed the
automation of a specific business
process that we intend to require, such
as the use of Form SSA–1696,
Appointment of Representative, we will
announce in the Federal Register that
the process has been automated and will
be required.
If a professional representative cannot
access our system because the
representative’s system is not
functioning, our system is not
functioning, the electronic media is not
available, or because the
representative’s system cannot
communicate with our system, we will
waive the requirement that the
professional representative use the
electronic media that we prescribe. If
the error is related to the
representative’s system rather than our
system, we will require some type of
documentation explaining why the
representative is requesting the waiver.
We are particularly interested in
receiving public comment on our
definition of ‘‘professional
representative.’’ While we believe that
the proposed definition covers the vast
majority of representatives who do

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business with us, we are interested in
receiving public comment on whether
our proposed definition adequately
includes all relevant organizations.
We propose to include these rules in
§§ 404.910, 404.934, 404.1703,
404.1707, 404.1713, 416.1410, 416.1434,
416.1503, 416.1507, and 416.1513.

sroberts on PROD1PC70 with PROPOSALS

Access Registration
We propose to require professional
representatives and their employees to
complete an initial access registration
with us through the use of electronic
media that we prescribe.
Representatives who are not classified
as professional representatives and their
employees will also be required to
complete an initial access registration
with us, but will be permitted to do so
either electronically or by other means.
Access registration requires
representatives and their employees to
supply us with certain personal,
professional, and business affiliation
information that we will use to
authenticate and authorize
representatives and their employees to
do business with us. This initial
registration will also require
professional representatives and their
employees to provide us with specific
attestations to ensure that they know,
understand, and will comply with our
rules and regulations. Access
registration is a one-time process, and it
will allow us to process each claim
more efficiently. However,
representatives and their employees
must update the access registration if
their personal, professional, or business
affiliation information changes. The
authorization and authentication
process will also assist us in
safeguarding the personally identifiable
information provided to us.
We propose to include these rules in
§§ 404.1703, 404.1705, 404.1713,
416.1503, 416.1505, and 416.1513.
Direct Payment Registration
We pay representatives’ fees out of a
portion of the past-due benefits for
claims under title II of the Act. Under
provisions of the SSPA, we also are
authorized to withhold and pay fees
approved for attorneys in title XVI
cases, and to withhold and pay fees
approved for certain non-attorney
representatives in cases under title II
and title XVI of the Act.
On October 2, 2006, we published a
notice in the Federal Register that
advised both attorneys and eligible nonattorney representatives of additional
requirements that a representative must
meet in order for us to pay some or all
of an approved fee directly to the
representative from a claimant’s past-

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due benefits. 71 FR 58043. That notice
explained the registration process that a
representative must complete in order to
receive direct fee payment in a specific
claim. We now propose to pay all
representative fees via electronic funds
transfer. This proposal will allow us to
make direct payment of the
representative’s fee more efficiently, to
more accurately report payments to the
IRS, and to issue IRS Form 1099–MISC
more quickly.
To ensure that we only make direct
payments for work done by attorneys
and eligible non-attorneys, there are
certain actions that must be taken before
an entity may receive direct payment of
fees. Any entity seeking direct payment
of fees must maintain, and provide to us
upon our request, a signed statement
from each of the entity’s attorneys and
eligible non-attorneys who represent
claimants before us. The statement must
state that the attorney or eligible nonattorney is performing representational
services on behalf of the entity. The
statement must also assert that any fees
should be paid directly to the entity and
that the representatives receive any
compensation directly from the entity.
Any request for direct payment of fees
made by an entity must include an
attestation that the entity is in
possession of this signed statement from
each attorney or eligible non-attorney
who has performed any representational
services for the claim in question.
Additionally, the entity must attest that
all individuals who have performed
representational services on the claim in
question are individuals who qualify for
direct payment under the Act or the
SSPA. Such services include, but are
not limited to, representing the claimant
at any hearing or proceeding before the
Agency or before a Federal court.
We also propose to modify our
current rules to clarify that we may
issue IRS Form 1099–MISC to both
individuals and entities for payments
over the annual aggregate of $600. We
will gather additional information
during the registration process to
simplify our compliance with the
applicable Internal Revenue Service’s
regulation, 26 CFR 1.6045–5.
We propose to include these changes
in §§ 404.1703, 404.1713, 404.1730,
416.1503, 416.1513, and 416.1530.
New Requirements to Use Form SSA–
1696 to Appoint or Revoke the
Appointment of a Representative and to
Waive a Fee, Direct Payment of a Fee,
or Both
We propose to require that a claimant
use Form SSA–1696 to appoint or
revoke the appointment of a
representative. Similarly, we propose to

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require that a representative use Form
SSA–1696 when the representative
withdraws from representing a claimant.
Currently, when a claimant appoints a
representative using Form SSA–1696,
we require only non-attorney
representatives to sign the Form SSA–
1696. However, we are moving toward
an electronic process that will require
the ‘‘electronic signature’’ of
professional representatives, including
attorneys, on the Form SSA–1696. To
make the paper process as consistent as
possible with the electronic process we
envision, we propose to require both the
signature of the claimant and the
signature of any representative,
including an attorney representative, on
the paper Form SSA–1696 for the
appointment of a representative. Making
this change now will permit a seamless
transition to the electronic process in
the future.
We also propose to require a
representative to use the Form SSA–
1696 to waive a fee for representing the
claimant before us, to waive direct
payment of the fee, or both. By
standardizing the transaction for these
situations to one commonly-used form,
we will simplify the process for our
claimants and their representatives, and
we will be able to manage the
appointment, fee authorization, and fee
payment processes more efficiently. We
also propose to clarify our policies
about when a claimant’s appointment of
a representative begins and ends.
We propose to include these rules in
§§ 404.1707, 404.1712, 404.1732,
416.1507, 416.1512, and 416.1532.
Internet Appeals
We propose to require professional
representatives to submit certain
requests for administrative appeal
electronically at the times and in the
manner that we prescribe, e.g., through
the Internet. Claimants who are
unrepresented or who are represented
by individuals who are not classified as
professional representatives may
continue to file certain requests for
reconsideration or an ALJ hearing by
submitting either paper forms at one of
our offices or using the electronic media
we prescribe. We currently are making
our Internet Appeals Web portal
available for this purpose. That Web
portal, which is now being voluntarily
used by representatives to file requests
for reconsideration and ALJ hearings,
can be found at https://secure.ssa.gov/
apps6z/iAppeals/ap001.jsp.
By requiring professional
representatives to file certain requests
for appeal with us electronically, we are
following precedent set in the Federal
court system. According to the Federal

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judiciary’s Case Management and
Electronic Case Files System, as of
February 2008, electronic filing systems
are in use in 99% of Federal courts, over
31 million cases are maintained on
these systems, and more than 320,000
users have filed documents over the
Internet. Requiring professional
representatives to file certain requests
for reconsideration or an ALJ hearing
via the Internet is a cost-effective
measure that we expect will increase
our efficiency and help reduce the
disability determination backlog.
We do not expect this requirement to
impose a burden on professional
representatives. Representatives
currently use several of our online
services extensively, including the
online Disability Report and the
Electronic Records Express (ERE)
system, which allows representatives to
submit evidence to the electronic folder.
We implemented the Internet Appeals
software application in December 2007,
and, to date, representatives have filed
almost 100,000 appeals electronically.
We may expand this electronic process
to include appeals to the Appeals
Council at a later time.
We propose to include these rules in
§§ 404.901, 404.909, 404.910, 404.933,
404.934, 404.1740, 416.1401, 416.1409,
416.1410, 416.1433, 416.1434, and
416.1540.
New Affirmative Duties for
Representatives
We propose to add a new affirmative
duty for professional representatives
and individuals working on their behalf
to provide us with specific attestations
to ensure they know, understand, and
will comply with our rules and
regulations. As indicated above, these
attestations will be provided during the
access registration process. We also
propose to add a new affirmative duty
for professional representatives, and for
non-professional representatives who
choose to file the Appointment of
Representative form electronically.
These representatives must keep, and
provide to us upon request, paper
copies of the Form SSA–1696 with the
original signature of the claimant, the
electronic signature of the
representative, and the respective dates
of the signing. Further, we will require
entities to maintain, and provide to us
on request, a signed statement from each
attorney, eligible non-attorney, and
employee. In the statement, they must
aver that they are performing all
representational services on behalf of
the entity, that any fees should be paid
directly to the entity, and that they will
receive compensation directly from the
entity.

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We also propose to place an
affirmative duty on professional
representatives to file certain requests
for reconsideration or an ALJ hearing
using the electronic media that we
prescribe. However, if a representative
disregards or violates our rules or
regulations, we will not penalize the
claimant. We will not reject or delay a
claimant’s request for appeal or process
it differently than a request for appeal
submitted correctly.
Violation of these affirmative duties
may subject the representative to
sanctions under 20 CFR 404.1745 and
416.1545. We may ask representatives to
provide us with forms, documents,
copies of signed statements, and other
information to confirm that
representatives are complying with our
rules. We expect that these changes will
create safeguards against fraudulent
activity.
Consistent with our proposal to
recognize entities as representatives and
our recognition that the business
practices of those who represent
claimants have changed significantly,
we propose to clarify that an attorney or
a non-attorney whom a claimant has not
appointed as his representative but who
works for or on behalf of the claimant’s
appointed representative and helps
represent the claimant in his claim
before us will also be subject to our
rules of conduct and standards of
responsibility and our sanctions
procedures in 20 CFR 404.1740–
404.1799 and 416.1540–416.1599.
We propose to add these rules in
§§ 404.1703, 404.1740, 416.1503, and
416.1540.
New Prohibited Actions for
Representatives
We propose to revise our list of
prohibited actions to include three
additional items: refusing to comply
with any of our regulations, violating
any section of the Act for which a
criminal or civil monetary penalty is
prescribed, and assisting another
individual whom we have suspended or
disqualified. Violation of these
prohibited actions may subject the
representative, or an attorney or a nonattorney whom a claimant has not
appointed as his representative but who
works for or on behalf of the claimant’s
appointed representative and helps
represent the claimant in his claim
before us, to sanctions under
§§ 404.1745 and 416.1545. We propose
to add these rules in §§ 404.1740 and
416.1540.
Other Changes
We propose several additional
changes. First, we propose to clarify that

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we may reject a claimant’s appointment
of a representative if the representative
does not meet our requirements and that
we will notify the claimant and the
claimant’s representative of our
decision. §§ 404.903, 404.1705,
416.1403, and 416.1505. Our refusal to
accept an appointment of a
representative is not an administrative
action subject to our administrative
review process.
Second, we propose to add several
new definitions, revise existing
definitions, and to move existing
definitions from §§ 404.1770 and
416.1570 to §§ 404.1703 and 416.1503.
These definitions include the terms:
‘‘disqualify,’’ ‘‘electronic media,’’
‘‘Federal agency,’’ ‘‘Federal program,’’
‘‘fee petition,’’ ‘‘person,’’ ‘‘principal
representative,’’ ‘‘professional
representative,’’ and ‘‘representative.’’
We also propose to add a new definition
for ‘‘initial disability claim’’ to
§§ 404.901 and 416.1401.
Third, we propose in several sections
to change references from the Deputy
Commissioner for Disability and Income
Security Programs to the General
Counsel and references from the
Associate Commissioner for Hearings
and Appeals to the Deputy
Commissioner for Disability
Adjudication and Review to reflect a
recent reorganization and a new
delegation of authority. Finally, we
propose to make other minor
conforming changes.
Clarity of These Rules
Executive Order 12866, as amended,
requires each agency to write all rules
in plain language. In addition to your
substantive comments on these
proposed rules, we invite your
comments on how to make them easier
to understand.
For example:
• Have we organized the material to
suit your needs?
• Are the requirements in the rules
clearly stated?
• Do the rules contain technical
language or jargon that isn’t clear?
• Would a different format (grouping
and order of sections, use of headings,
paragraphing) make the rules easier to
understand?
• Would more (but shorter) sections
be better?
• Could we improve clarity by adding
tables, lists, or diagrams?
• What else could we do to make the
rules easier to understand?
When Will We Start To Use These
Rules?
We will not use these rules until we
evaluate the public comments we

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receive on them, determine whether
they should be issued as final rules, and
issue final rules in the Federal Register.
If we publish final rules, we will
explain in the preamble how we will
apply them, and summarize and
respond to the public comments. Until
the effective date of any final rules, we
will continue to use our current rules.
Regulatory Procedures
Executive Order 12866, as Amended
We have consulted with the Office of
Management and Budget (OMB) and
determined that these proposed rules
meet the criteria for a significant
regulatory action under Executive Order
12866, as amended. Therefore, they
were reviewed by OMB.

Regulatory Flexibility Act
We certify that these proposed rules
will not have a significant economic
impact on a substantial number of small
entities. Although these proposed rules
would require small entities to provide
us with certain information and to use
available electronic services in certain
instances, small entities would not be
disadvantaged or limited in their ability
to compete with larger competitors.
Additionally, these proposed rules do
not place significant costs on small
entities. It is anticipated that small
entities that take advantage of our
electronic service delivery may find
slight cost savings as a result of
increased efficiency. Therefore, a
regulatory flexibility analysis as
Number of
respondents

sroberts on PROD1PC70 with PROPOSALS

Regulation sections and description

404.612; 404.1710; 416.315; 416.1510—Principal representatives may sign
and file applications with SSA on beneficiaries’ behalf.
404.909; 404.910; 404.1740; 416.1409; 416.1410; 416.1540—Disability
claimants who wish to request a reconsideration must do so in writing
within 60 days after notice of initial determination is received (unless
SSA grants a time extension). Parties filing on their own behalf or using
non-professional representatives may use SSA’s Internet Web site to
submit the request; professional representatives are required to do so.
404.933; 404.934; 416.1433; 416.1434—Disability claimants who wish to
request a hearing before an administrative law judge must do so in writing within 60 days after notice of the previous determination/decision is
received (unless SSA grants a time extension). Parties filing on their
own behalf or using non-professional representatives may use SSA’s
Internet Web site to submit the request; professional representatives are
required to do so.
404.1740; 416.1540—Professional representatives for disability claimants
must always use an SSA-approved form on SSA’s Internet site to request a reconsideration or a hearing before an administrative law judge.
404.1705; 404.1707; 404.1712; 416.1505; 416.1507; 416.1512;
408.1101—Procedures for beneficiary to appoint, change, revoke, or reappoint a representative and for representatives to accept appointment
as representative or withdraw as representative.
404.1705; 404.1713; 404.1730; 416.1505; 416.1530; 416.1513—Representative must register with SSA to receive payment.
404.1712; 404.1720; 404.1725; 404.1730; 416.1512; 416.1520; 416.1525;
416.1530—Procedures for representative to sign fee petition; and Representative must file a request with us to charge or receive a fee; and to
obtain approval of a fee representative must file a written request with
SSA.
404.1715; 416.1515—Principal representatives are responsible for informing other representatives of the beneficiary about any information SSA
sent to the principal representative.
404.1728; 416.1528—If representatives provide services to beneficiaries in
connection with a hearing/court proceeding before SSA and wants to
charge for those services, they must file a request and provide necessary documentation.
404.1732; 415,1532—Representatives may waive the right to charge and
collect a fee, direct payment, or both.
404.1740; 416.1540—Procedures requiring representatives to maintain
hard copy of certain forms with signatures and dates of signing.
404.1755; 416.1555—If SSA files charges against a representative, the
representative may contest these charges.
404.1780; 416.1580—If a party files a brief or other written statement with
the Appeals Council, the party should send a copy to the opposite party
and certify that they did so.
404.1799; 416.1599—Representatives who were suspended or disqualified
should submit any evidence they want the Appeals Council to consider
along with their request to be reinstated as a representative.

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provided in the Regulatory Flexibility
Act, as amended, is not required.
Paperwork Reduction Act
These regulations, which propose
several revisions to our rules on
Representation of Parties, contain
reporting requirements in the regulation
sections listed below. For some sections,
we previously accounted for the public
reporting burdens in the Information
Collection Requests for the various
forms the public uses to submit the
information to SSA. Consequently, in
those cases we inserted a 1-hour
placeholder burden to these sections.
For those sections whose public
reporting burdens are not covered by an
existing OMB-approved form, we
provided burden estimates.
Frequency of
response

Average
burden
per response
(minutes)

Estimated
annual burden
(hours)

—

—

—

1 (placeholder).

—

—

—

1 (placeholder).

—

—

—

1 (placeholder).

—

—

—

1 (placeholder).

—

—

—

1 (placeholder).

—

—

—

1 (placeholder).

—

—

—

1 (placeholder).

56,000

5

2

—

—

—

1 (placeholder).

—

—

—

1 (placeholder).

—

—

—

1 (placeholder).

(1)

—

—

—

(1)

—

—

—

(1)

—

—

—

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Federal Register / Vol. 73, No. 174 / Monday, September 8, 2008 / Proposed Rules

Number of
respondents

Regulation sections and description

422.515—When SSA references ‘‘forms’’ for withdrawal, reconsideration,
other appeals, and appointment of representatives, this refers to traditional printed forms, computer screens completed by SSA employees, or
electronically submitted forms.
1 Less

—

—

—

Estimated
annual burden
(hours)
1 (placeholder).

than 10 respondents.

SSA submitted an Information
Collection Request to OMB for
clearance. We are soliciting comments
on the burden estimate; the need for the
information; its practical utility; ways to
enhance its quality, utility and clarity;
and on ways to minimize the burden on
respondents, including the use of
automated collection techniques or
other forms of information technology.
If you would like to submit comments,
please send them to the following
locations:
Office of Management and Budget,
Attn: Desk Officer for SSA, Fax Number:
202–395–6974, E-mail address:
[email protected]
Social Security Administration, Attn:
Reports Clearance Officer, 1333 Annex
Building, 6401 Security Blvd.,
Baltimore, MD 21235, Fax: 410–965–
6400, E-mail address:
[email protected].
You can submit comments on the
paperwork burdens associated with this
rule for up to 60 days after publication
of this notice; however, they will be
most useful if you send them to SSA
within 30 days of publication. This does
not affect the deadline for the public to
comment to SSA on the proposed
regulations. To receive a copy of the
OMB clearance package, contact the
SSA Reports Clearance Office using any
of the above contact methods. We prefer
to receive comments by e-mail or fax.
(Catalog of Federal Domestic Assistance
Program Nos. 96.001, Social Security—
Disability Insurance; 96.002, Social
Security—Retirement Insurance; 96.004,
Social Security—Survivors Insurance;
96.006, Supplemental Security Income; and
96.020, Special Benefits for Certain World
War II Veterans)

List of Subjects

sroberts on PROD1PC70 with PROPOSALS

Average
burden
per response
(minutes)

Frequency of
response

20 CFR Part 404
Administrative practice and
procedure, Blind, Disability benefits,
Old-Age, Survivors, and Disability
Insurance, Penalties, Reporting and
recordkeeping requirements, Social
Security.
20 CFR Part 408
Administrative practice and
procedure, Aged, Reporting and
recordkeeping requirements, Social

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Security, Supplemental Security Income
(SSI), Veterans.

U.S.C. 421 note); sec. 202, Pub. L. 108–203,
118 Stat. 509 (42 U.S.C. 902 note).

20 CFR Part 416

4. Amend § 404.901 by adding a
definition in alphabetical order to read
as follows:

Administrative practice and
procedure, Penalties, Reporting and
recordkeeping requirements,
Supplemental Security Income (SSI).
20 CFR Part 422
Administrative practice and
procedure, Organization and functions
(Government agencies), Social Security.
Dated: August 27, 2008.
Michael J. Astrue,
Commissioner of Social Security.

For the reasons set out in the
preamble, we propose to amend 20 CFR
parts 404, 408, 416, and 422 as set forth
below:
PART 404—FEDERAL OLD-AGE,
SURVIVORS AND DISABILITY
INSURANCE (1950–)
Subpart G—[Amended]

Authority: Secs. 202(i), (j), (o), (p), and (r),
205(a), 216(i)(2), 223(b), 228(a), and 702(a)(5)
of the Social Security Act (42 U.S.C. 402(i),
(j), (o), (p), and (r), 405(a), 416(i)(2), 423(b),
428(a), and 902(a)(5)).

2. Amend § 404.612 by adding
paragraph (h) to read as follows:
Who may sign an application.

*

*
*
*
*
(h) Your principal representative (see
§§ 404.1705 and 404.1707) may sign and
file your application with us. If a
principal representative signs an
application on your behalf, you are
responsible for the accuracy of the
information you provide.
Subpart J—[Amended]
3. The authority citation for subpart J
of Part 404 continues to read as follows:
Authority: Secs. 201(j), 204(f), 205(a), (b),
(d)–(h), and (j), 221, 223(i), 225, and 702(a)(5)
of the Social Security Act (42 U.S.C. 401(j),
404(f), 405(a), (b), (d)–(h), and (j), 421, 423(i),
425, and 902(a)(5)); sec. 5, Pub. L. 97–455, 96
Stat. 2500 (42 U.S.C. 405 note); secs. 5, 6(c)–
(e), and 15, Pub. L. 98–460, 98 Stat. 1802 (42

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Definitions.

*

*
*
*
*
Initial disability claim means:
(1) An application for benefits that is
based on whether you are disabled
under title II of the Act, or
(2) An application for supplemental
security income payments that is based
on whether you are disabled or blind
under title XVI of the Act.
(3) For purposes of this subpart, the
term ‘‘initial disability claim’’ does not
include a continuing disability review
or an age-18 redetermination.
*
*
*
*
*
5. Amend § 404.903 by revising
paragraph (g) to read as follows:
§ 404.903 Administrative actions that are
not initial determinations.

*

1. The authority citation for subpart G
of part 404 continues to read as follows:

§ 404.612

§ 404.901

*
*
*
*
(g) Refusing to recognize,
disqualifying, or suspending a person,
as defined in § 404.1703, from acting as
your representative in a proceeding
before us (see §§ 404.1705 and
404.1745);
*
*
*
*
*
6. Amend § 404.909 by revising the
section heading and paragraphs (a)
introductory text and (a)(2), and by
removing the heading of paragraph (b),
to read as follows:
§ 404.909 How to request reconsideration
in claims other than those that involve a
denial of an initial disability claim based on
medical factors.

(a) We will reconsider an initial
determination, other than one that
involves a denial of your initial
disability claim based on medical
factors (see § 404.910), if you or any
other party to the reconsideration files
a written request—
*
*
*
*
*
(2) At one of our offices, the Veterans
Administration Regional Office in the
Philippines, or an office of the Railroad
Retirement Board if you have 10 or more
years of service in the railroad industry,

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or at least five years of railroad service
accruing after December 31, 1995.
*
*
*
*
*
7. Add a new § 404.910 to read as
follows:

sroberts on PROD1PC70 with PROPOSALS

§ 404.910 How to request reconsideration
in an initial disability claim that is denied
based on medical factors.

(a) If you file an initial disability
claim, we will reconsider an initial
determination that denies your claim
based on medical factors if you or any
other party to the reconsideration files
a written request within 60 days after
the date you receive notice of the initial
determination and you make your
request in accordance with paragraphs
(b) or (c) (or within the extended time
period if we extend the time as provided
in paragraph (d)) of this section.
(b) If you have not appointed a
representative, or if your representative
is not a professional representative, as
defined in § 404.1703, you may file your
written request for reconsideration
either through the electronic media we
prescribe, at one of our offices, at the
Veterans Administration Regional Office
in the Philippines, or at an office of the
Railroad Retirement Board if you have
10 or more years of service in the
railroad industry, or at least five years
of railroad service accruing after
December 31, 1995.
(c) If your representative is a
professional representative, as defined
in § 404.1703, your professional
representative must file your written
request for reconsideration with us
through the electronic media that we
prescribe, unless we waive this
requirement.
(d) If you want a reconsideration of
the initial determination that denies
your initial disability claim based on
medical factors, but do not request one
in time, you may ask us for more time
to request a reconsideration. Your
request for an extension of time must be
in writing and must give the reasons
why the request for reconsideration was
not filed within the stated time period.
If you show us that you had good cause
for missing the deadline, we will extend
the time period. To determine whether
good cause exists, we use the standards
explained in § 404.911. You must file
the request for an extension of time
according to the procedures in
paragraphs (b) or (c) of this section.
8. Amend § 404.933 by revising the
section heading and paragraphs (a)
introductory text and (b)(2) to read as
follows:

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§ 404.933 How to request a hearing before
an administrative law judge in claims other
than those that involve a denial of an initial
disability claim based on medical factors.

(a) Written request. You may request
a hearing on your claim, other than one
that involves a denial of your initial
disability claim based on medical
factors (see § 404.934), by filing a
written request. You should include in
your request—
*
*
*
*
*
(b) * * *
(2) At one of our offices, at the
Veterans Administration Regional Office
in the Philippines, or at an office of the
Railroad Retirement Board if you have
10 or more years of service in the
railroad industry, or at least five years
of railroad service accruing after
December 31, 1995.
*
*
*
*
*
9. Add a new § 404.934 to read as
follows:
§ 404.934 How to request a hearing before
an administrative law judge in an initial
disability claim that is denied based on
medical factors.

(a) If we deny your reconsidered
initial disability claim based on medical
factors, you may request a hearing by
filing a written request. You should
include in your request—
(1) The name and social security
number of the wage earner;
(2) The reasons you disagree with the
previous determination or decision;
(3) A statement of additional evidence
to be submitted and the date you will
submit it; and
(4) The name and address of any
designated representative.
(b) Your request for a hearing must be
filed within 60 days after the date you
receive notice of the previous
determination or decision (or within the
extended time period if we extend the
time as provided in paragraph (e) of this
section).
(c) If you have not appointed a
representative, or if your representative
is not a professional representative, as
defined in § 404.1703, you may file your
written request for a hearing either
through the electronic media we
prescribe, at one of our offices, at the
Veterans Administration Regional Office
in the Philippines, or at an office of the
Railroad Retirement Board if you have
10 or more years of service in the
railroad industry, or at least five years
of railroad service accruing after
December 31, 1995.
(d) If your representative is a
professional representative, as defined
in § 404.1703, your professional
representative must file your written
request for a hearing with us through

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51969

the electronic media that we prescribe,
unless we waive this requirement.
(e) If you have a right to a hearing
with respect to a determination or
decision that denies your initial
disability claim based on medical
factors, but you do not request one in
time, you may ask for more time to
make your request. The request for an
extension of time must be in writing and
it must give the reasons why the request
for a hearing was not filed within the
stated time period. If you show that you
had good cause for missing the
deadline, we will extend the time
period. To determine whether good
cause exists, we use the standards
explained in § 404.911. You must file
the request for an extension of time
according to the procedures in
paragraphs (b) or (c) of this section.
Subpart R—[Amended]
10. The authority citation for subpart
R of part 404 continues to read as
follows:
Authority: Secs. 205(a), 206, 702(a)(5), and
1127 of the Social Security Act (42 U.S.C.
405(a), 406, 902(a)(5), and 1320a–6); sec. 303,
Pub. L. 108–203, 118 Stat. 493.

11. Amend § 404.1700 by revising the
introductory text and paragraph (a) to
read as follows:
§ 404.1700

Introduction.

You may appoint one or more
individuals or entities to represent you
in any of your dealings with us. This
subpart explains, among other things—
(a) Who may be your representative
and what your representative’s
qualifications must be;
*
*
*
*
*
12. Revise § 404.1703 to read as
follows:
§ 404.1703

Definitions.

As used in this subpart—
Access registration means supplying
us with personal information that we
use to identify you, your representative,
or an individual working on behalf of
your representative, to authenticate and
authorize you, your representative, or an
individual working on behalf of your
representative to do business with us.
Direct payment registration means
supplying to us personal, financial
institution, and business affiliation
information that we use to authorize a
representative under certain
circumstances to receive direct payment
of representative fees via electronic
funds transfer.
Disqualify refers to an action that
prohibits a person from participating in
or appearing before a Federal agency or
Federal program, regardless of how long

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Federal Register / Vol. 73, No. 174 / Monday, September 8, 2008 / Proposed Rules

the prohibition lasts or the specific
terminology used.
Electronic media means the electronic
media that we prescribe for providing us
information, registering with us, and
filing with us certain applications,
forms, and other documents.
Entity means any business, firm, or
other association, including but not
limited to partnerships, corporations,
for-profit organizations, and not-forprofit organizations.
Federal agency refers to any authority
of the Executive branch of the
Government of the United States.
Federal program refers to any program
established by an Act of Congress or
administered in whole or in part by a
Federal agency.
Fee petition means a written
statement signed by the claimant’s
representative requesting the fee the
representative wants to charge and
collect for services the representative
provided in pursuing the claimant’s
benefit rights in proceedings before us.
Past-due benefits means the total
amount of benefits under title II of the
Act that has accumulated to all
beneficiaries because of a favorable
administrative or judicial determination
or decision, up to but not including the
month the determination or decision is
made. For purposes of calculating fees
for representation, we determine pastdue benefits before any applicable
reduction under section 1127 of the Act
(for receipt of benefits for the same
period under title XVI). Past-due
benefits do not include:
(1) Continued benefits paid pursuant
to § 404.1597a; or
(2) Interim benefits paid pursuant to
section 223(h) of the Act.
Person means an individual or an
entity.
Principal representative means an
attorney who meets all of the
requirements of § 404.1705(a), an
individual other than an attorney who
meets all of the requirements of
§ 404.1705(b), or an entity that meets all
of the requirements under § 404.1705(b),
who has been appointed to represent
you in dealings with us and who is
responsible for disseminating
information and requests from us to you
and your other representatives, if any.
Professional representative means any
attorney, any individual other than an
attorney, or any entity that holds itself
out to the public as providing
representational services (see
§ 404.1735) before us, regardless of
whether the representative charges or
collects a fee for providing the
representational services.
Representative means an attorney
who meets all of the requirements of

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§ 404.1705(a), an individual other than
an attorney who meets all of the
requirements of § 404.1705(b), or an
entity that meets all of the requirements
of § 404.1705(b), whom you appoint to
represent you in dealings with us. For
purposes of §§ 404.1740 through
404.1799, the term representative also
includes an attorney or a non-attorney
whom you have not appointed as your
representative under the previous
sentence but who works for or on behalf
of an appointed representative and
helps represent you in your claim before
us.
We, our(s), or us refers to the Social
Security Administration.
You or your(s) refers to any individual
claiming a right under the old-age,
disability, dependents’, or survivors’
benefits program.
13. Amend § 404.1705 by removing
the heading for paragraphs (a) and (b),
revising paragraph (b) introductory text,
and adding paragraphs (c) through (g) to
read as follows:
§ 404.1705 Who may be your
representative.

*

*
*
*
*
(b) You may appoint any person who
is not an attorney to be your
representative in dealings with us if the
person—
*
*
*
*
*
(c) We may refuse to recognize your
appointed representative if the
representative does not meet our
requirements. We will notify you and
your appointed representative if we do
not recognize your appointed
representative.
(d) You may appoint more than one
representative to represent you at the
same time.
(e) You must have a principal
representative. When you appoint only
one representative, that representative is
your principal representative. When you
appoint more than one representative
you must select one of your appointed
representatives as your principal
representative. Your principal
representative is responsible for
disseminating information and requests
from us to you and your other
representatives, if any, and for
providing us information from you and
about your claim. You may have only
one principal representative at a time.
(f) If at any point you are represented
by more than one representative and
you have not appointed or do not have
a principal representative, we will name
one of your appointed representatives as
your principal representative. You may
appoint a different principal
representative than the one we name by
filing the appropriate form.

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(g) Each of your representatives, as
well as individuals working on their
behalf, must complete access
registration with us in the manner we
prescribe.
14. Revise § 404.1707 to read as
follows:
§ 404.1707 How you appoint and revoke
the appointment of a representative.

(a) You must use the version of the
form we prescribe, electronic or paper,
to appoint or revoke the appointment of
a representative.
(1) If your representative is not a
professional representative, and your
representative does not want to deal
with us through the electronic media we
prescribe, we will recognize your
appointment of a representative if—
(i) Both you and your representative
sign the paper form we prescribe;
(ii) You choose a principal
representative on the form we prescribe
at the time of the appointment; and
(iii) You or your representative files
the signed form with us at one of our
offices if you have initially filed a claim
or have requested reconsideration; with
the hearing office if you have requested
a hearing; or with the Appeals Council
if you have requested a review of the
administrative law judge’s decision.
(2) If your representative is a
professional representative, or if your
representative is not a professional
representative but wants to do business
with us through the electronic media we
prescribe, we will recognize your
appointment of a representative if—
(i) Your representative electronically
signs the form we prescribe, prints the
electronically signed form, and you sign
the printed copy of the form;
(ii) You choose a principal
representative on the form we prescribe
at the time of the appointment; and
(iii) Your representative files the
electronic form in the manner we
prescribe.
(3) If we do not make the electronic
form available or we prescribe that the
electronic form is not required, then we
will recognize your appointment of a
professional representative according to
the procedures in paragraph (a)(1) of
this section.
(b) Each time you change your
principal representative, you must file a
new version of the form we prescribe.
(c) If at any point you are represented
by more than one representative and
you have not appointed or do not have
a principal representative, we will name
one of your appointed representatives as
your principal representative. You may
appoint a different principal
representative than the one we name by
filing the appropriate form.

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(d) You must file the form we
prescribe with us to revoke the
appointment of a representative. The
date of the revocation is the date on
which you file the form with us. We
will notify you and your representative
that you revoked your representative’s
appointment.
15. Amend § 404.1710 by revising
paragraphs (a) introductory text and (b)
and adding paragraph (c) to read as
follows:
§ 404.1710

Authority of a representative.

(a) Your representative may, on your
behalf—
*
*
*
*
*
(b) Your principal representative may
also sign and file an application on your
behalf for rights or benefits under title
II of the Act, as described in
§ 404.612(h).
(c) If you appoint an entity as your
representative, any document related to
the claim that is signed by a registered
employee of the entity is binding on that
entity, even if the employee’s
association with the entity ends.
16. Add a new § 404.1712 to read as
follows:

sroberts on PROD1PC70 with PROPOSALS

§ 404.1712 When the appointment of your
representative begins and ends.

(a) The appointment of your
representative begins on the date that
you and your representative sign the
form we prescribe appointing your
representative as described in
§ 404.1707. However, we will not
recognize your appointment of a
representative or deal with your
representative until you or your
representative file(s) the signed form
with us.
(b) If your appointed representative is
an individual, the individual’s authority
continues until the earliest of the
following actions occur—
(1) You file the prescribed form with
us revoking the appointment of your
representative;
(2) Your representative files the
prescribed form with us withdrawing as
your representative;
(3) We have made a final
determination or decision on your claim
and the claims of any auxiliary
beneficiary, the period in which you or
your representative could appeal our
determination or decision has ended,
and you or your representative, or the
auxiliary beneficiary, if any, did not file
an appeal before the end of that period;
(4) Your representative files a fee
petition requesting our authorization to
charge and collect a fee (see §§ 404.1720
and 404.1725);
(5) We have closed out any
application that was started by you or

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on your behalf but was not pursued
within the time period we prescribe;
(6) We disqualify or suspend your
representative; or
(7) Your representative dies.
(c) If your appointed representative is
an entity, the entity’s authority
continues until the earliest of the
following actions occur—
(1) You file the prescribed form with
us revoking the appointment of your
representative;
(2) Your representative files the
prescribed form with us withdrawing as
your representative.
(3) We have made a final
determination or decision on your claim
and the claims of any auxiliary
beneficiary, the period in which you or
your representative could appeal our
determination or decision has ended,
and you or your representative, or the
auxiliary beneficiary, if any, did not file
an appeal before the end of that period;
(4) Your representative files a fee
petition requesting our authorization to
charge and collect a fee (see §§ 404.1720
and 404.1725);
(5) We have closed out any
application that was started by you or
on your behalf but was not pursued
within the time period we prescribe;
(6) We disqualify or suspend your
representative;
(7) The entity goes out of business; or
(8) The entity changes ownership or
changes the services it provides, such
that it no longer represents claimants
before us.
(d) You may reappoint a
representative by properly filing a new
prescribed form with us in accordance
with §§ 404.1705 and 404.1707.
17. Add a new § 404.1713 to read as
follows:
§ 404.1713

Professional representatives.

(a) Professional representatives must
conduct business with us electronically
at the times and in the manner that we
prescribe.
(b) Professional representatives, and
individuals working on behalf of
professional representatives on claims
before us, must make certain attestations
we require to ensure that each
individual knows, understands, and
will comply with our rules and
regulations. Each of these individuals
will make these attestations one time
during the access registration process.
18. Revise § 404.1715 to read as
follows:
§ 404.1715 Notice or request to a
representative.

(a) We will send to you, your
principal representative, and your other
representatives, if any, all notices

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relating to the appointment of any of
your representatives and the revocation
or withdrawal of an appointment of any
of your representatives. Notices sent in
accordance with § 404.1730(c)(2)(i) will
be sent to any representative who has
not filed a written request for a fee in
accordance with § 404.1730(c)(1).
(b) We will send only to your
principal representative—
(1) Notices and copies of any
administrative action, determination, or
decision in your claim; and
(2) Requests for information or
evidence in your claim.
(c) If your principal representative is
an entity, we will send all notices,
copies of any administrative action,
determination, or decision in your
claim, and requests for information to
the individual who signed the
appointment of representative form on
behalf of the entity, until or unless the
entity informs us of a different contact
within the entity for this purpose.
(d) Your principal representative is
responsible for informing other
appointed representatives, if any, about
any notices, administrative actions,
determinations, decisions, or requests
for information or evidence that we
send to the principal representative. We
will not send copies of notices, any
administrative actions, determinations,
decisions, or requests for information or
evidence to any representative, except
your principal representative.
(e) Any notice or request we send to
your principal representative will have
the same force and effect as if we sent
it directly to you.
19. Amend § 404.1720 by revising
paragraphs (a), (b)(1), (b)(3), (b)(4), (c)
introductory text, (c)(3), the first two
sentences of paragraph (d)(1), and the
first sentence of paragraph (d)(2)(i) to
read as follows:
§ 404.1720
services.

Fee for a representative’s

(a) General. A representative may
charge and receive a fee for providing
you with services as a representative as
provided in paragraph (b) of this
section, or as provided in section
206(a)(2) of the Act.
(b) Charging and receiving a fee under
the fee petition process. (1) A
representative must file a written fee
petition with us before the
representative may charge or receive a
fee for providing you with services.
*
*
*
*
*
(3) A representative must not charge
or receive any fee unless we have
approved it, and a representative must
not charge or receive any fee that is
more than the amount we approve.

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(4) If the representative is an attorney,
a non-attorney who is eligible to
participate in the direct payment
demonstration project, as defined in
§ 404.1717, or an entity that meets the
requirements in § 404.1730(f) and the
claimant is entitled to past-due benefits,
we will pay the authorized fee, or a part
of the authorized fee, directly to the
attorney, eligible non-attorney, or
eligible entity out of the past-due
benefits, subject to the limitations
described in § 404.1730(b)(1). If the
representative is not an attorney,
eligible non-attorney, or eligible entity,
we assume no responsibility for the
payment of any fee that we have
authorized.
(c) Notice of determination on the fee
petition. We will mail to both you and
your representative at your last known
addresses a written notice of what we
decide about the fee petition. We will
state in the notice—
*
*
*
*
*
(3) That we are not responsible for
paying the fee, except when we may pay
an attorney, a non-attorney who is
eligible to participate in the direct
payment demonstration project, as
defined in § 404.1717, or an entity that
meets the requirements in § 404.1730(f),
from past-due benefits; and
*
*
*
*
*
(d) Review of fee petition
determination—(1) Request filed on
time. We will review the decision we
made about a fee petition if either you
or your representative files a written
request for the review through the
electronic media we prescribe or at one
of our offices within 30 days after the
date of the notice of the fee
determination. Either you or your
representative, whoever requests the
review, must mail a copy of the request
to the other person. * * *
(2) Request not filed on time. (i) If you
or your representative requests a review
of the decision we made about a fee, but
does so more than 30 days after the date
of the notice of the fee determination,
whoever makes the request must state in
writing why it was not filed within the
30-day period. * * *
*
*
*
*
*
20. Amend § 404.1725 by revising the
section heading, paragraphs (a)
introductory text, (a)(2) through (a)(6),
the heading for paragraph (b), and
paragraph (b)(1)(vii) to read as follows:
§ 404.1725
petition.

Request for approval of a fee

(a) Filing a written fee petition. Unless
your representative’s fee is approved
pursuant to section 206(a)(2) of the Act,
in order for your representative to

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obtain approval of a fee for services your
representative performed in dealings
with us, your representative must file a
written fee petition through the
electronic media we prescribe or at one
of our offices. This should be done after
the proceedings in which your
representative represented you are
completed. The request must contain—
* * *
(2) A list of the services your
representative provided and the amount
of time your representative spent on
each type of service;
(3) The amount of the fee your
representative wants to charge for the
services;
(4) The amount of fee your
representative wants to request or
charge for representing you in the same
matter before any State or Federal court;
(5) The amount of and a list of any
expenses your representative incurred
for which your representative has been
paid or expects to be paid;
(6) A description of the special
qualifications which enabled your
representative, if not an attorney, to give
valuable help in connection with your
claim; and * * *
(b) Evaluating a request for approval
of a fee petition.
(1) * * *
(vii) The amount of fee the
representative requests for the
representative’s services, including any
amount authorized or requested before,
but not including the amount of any
expenses the representative incurred.
*
*
*
*
*
21. Amend § 404.1728 by revising
paragraph (a) to read as follows:
§ 404.1728 Proceedings before a State or
Federal court.

(a) Representation of a party in court
proceedings in fee petitions. We will not
consider any service the representative
gave you in any proceeding before a
State or Federal court to be services as
a representative in dealings with us.
However, if the representative also has
given service to you in the same
connection in any dealings with us, the
representative must specify what, if any,
portion of the fee the representative
wants to charge is for services
performed in dealings with us. If the
representative charges any fee for those
services, the representative must file the
request and furnish all of the
information required by § 404.1725.
*
*
*
*
*
22. Revise § 404.1730 to read as
follows:
§ 404.1730

Payment of fees.

(a) Fees allowed by a Federal court in
fee petitions. We will pay a

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representative who is an attorney out of
your past-due benefits the amount of the
fee allowed by a Federal court in a
proceeding under title II of the Act. This
payment is subject to the limitations
described in paragraph (b)(1) of this
section.
(b) Fees we may authorize for
payment in fee petitions—(1) Attorneys,
eligible non-attorneys, and eligible
entities. Except as provided in
paragraphs (c) and (e) of this section, if
we make a determination or decision in
your favor and you were represented by
an attorney, a non-attorney who is
eligible to participate in the direct
payment demonstration project, as
defined in § 404.1717, or an entity that
meets the requirements in paragraph (f)
of this section, and as a result of the
determination or decision you have
past-due benefits, we will pay the
representative out of the past-due
benefits, the smallest of the amounts in
paragraphs (b)(1)(i) or (ii) of this section,
less the amount of the assessment
described in paragraph (d) of this
section.
(i) Twenty-five percent of the total of
the past-due benefits; or
(ii) The amount of the fee that we set.
(2) Persons not eligible for direct
payment. If the representative is a nonattorney who is not eligible to
participate in the direct payment
demonstration project or an entity that
is not eligible for direct payment of the
fee, we assume no responsibility for the
payment of any fee that we have
authorized. We will not deduct the fee
from your past-due benefits.
(c) Time limit for filing request for
approval of fee petition to obtain direct
payment. (1) To receive direct payment
of a fee from your past-due benefits, a
representative who is an attorney, a
non-attorney who is eligible to
participate in the direct payment
demonstration project, as defined in
§ 404.1717, or an entity that meets the
requirements in paragraph (f) of this
section should file a request for
approval of a fee or a written notice of
the intent to file a request within 60
days of the date we mail the notice of
the favorable determination or decision.
The representative should file the
request or written notice through the
electronic media we prescribe or at one
of our offices. Your representative must
send you a copy of any request for
approval of a fee, any written notice of
the intent to file a request for approval
of a fee, or any request for an extension
of time filed with us.
(2)(i) If no request is filed within 60
days of the date we mail the notice of
the favorable determination or decision,
we will mail a written notice to you and

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your representative at your last known
addresses. The notice will inform you
and the representative that unless the
representative files, within 20 days from
the date of the notice, a written request
for approval of a fee under § 404.1725,
or a written request for an extension of
time showing good cause (see
§ 404.911), we will pay all the past-due
benefits to you.
(ii) Your representative must send you
a copy of any request made to us for an
extension of time. If the request is not
filed within 20 days of the date of the
notice we send under paragraph (c)(2)(i)
of this section, or by the last day of any
extension we approved, we will pay all
past-due benefits to you. We must
approve any fee your representative
charges after that time, but the
collection of any approved fee is a
matter between you and your
representative.
(d) Assessment when we pay a fee
directly to a representative. (1)
Whenever we pay a fee directly to a
representative from past-due benefits,
we impose an assessment on the
representative.
(2) The amount of the assessment is
equal to the lesser of:
(i) The product we obtain by
multiplying the amount of the fee we
are paying to the representative by the
percentage rate the Commissioner of
Social Security determines is necessary
to achieve full recovery of the costs of
determining and paying fees directly to
representatives, but not in excess of 6.3
percent; and
(ii) The maximum assessment
amount. The maximum assessment
amount was initially set at $75, but by
law is adjusted annually to reflect the
increase in the cost-of-living. (See
§§ 404.270 through 404.278 for an
explanation of how the cost-of-living
adjustment is computed.) If the adjusted
amount is not a multiple of $1, we
round down the amount to the next
lower $1, but the amount will not be
less than $75. We will announce in the
Federal Register any increase in the
maximum assessment amount and
explain how the increase was
determined.
(3) We collect the assessment by
subtracting it from the amount of the fee
to be paid to the representative. The
representative who is subject to an
assessment may not, directly or
indirectly, request or otherwise obtain
reimbursement of the assessment from
you.
(e) Direct payment registration. (1) To
receive direct payment, the
representative must first complete direct
payment registration with us in the form
and manner that we prescribe.

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(2) We will only make direct payment
of fees via electronic funds transfer.
(f) Direct payment to entities. We will
only make direct payment to an entity
that provides the following attestations
in its request for direct payment of fees:
(1) The entity must attest that it is in
possession of a signed statement from
each attorney or non-attorney who has
performed any representational services
for the claim in question that includes
the following:
(i) The attorney or non-attorney has
performed all representational services
on behalf of the entity,
(ii) Any fees paid pursuant to the
services the attorney or non-attorney
have provided should be paid directly
to the entity, and
(iii) The attorney or non-attorney
representative receives compensation
for the services provided directly from
the entity.
(2) The entity must attest that all
individuals who have provided
representational services on the claim in
question are individuals who qualify for
direct payment under the Act or the
direct payment demonstration project,
as defined in § 404.1717.
23. Add a new § 404.1732 to read as
follows:
§ 404.1732 Waiver of fee or direct
payment, or both.

(a) Your representative may choose to
waive the right to charge and receive a
fee. An otherwise eligible representative
who wishes to charge and receive a fee
may waive the right to direct payment.
A representative who waives the right to
direct payment does not automatically
waive the right to charge and receive a
fee.
(b) Your representative must file a
form we prescribe to waive direct
payment of the fee.
(c) A waiver of the right to charge and
receive a fee or of direct payment, or
both, will apply to fees approved by a
Federal court, unless it is otherwise
specifically noted on the form
completed in accordance with
paragraph (b) of this section.
(d) If you have appointed an entity as
your representative, any registered
employee of the entity may sign the
form completed in accordance with
paragraph (b) of this section to waive
the fee or direct payment, or both, on
behalf of the entity.
24. Amend § 404.1740 by revising the
first sentence of paragraph (a)(1),
paragraph (b) introductory text,
paragraph (b)(3) introductory text, the
third sentence of paragraph (b)(3)(i), and
the second sentence of paragraph
(b)(3)(ii), adding paragraphs (b)(3)(iii)
and (b)(4), revising paragraphs (c)

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introductory text, (c)(4), (c)(6), and
(c)(7)(iii), and adding paragraphs (c)(8)
through (c)(13) to read as follows:
§ 404.1740 Rules of conduct and
standards of responsibility for
representatives.

(a) * * * (1) All persons acting on
behalf of a party seeking a statutory
right or benefit must, in their dealings
with us, faithfully execute their duties
as agents and fiduciaries of a party.
* * *
(b) Affirmative duties. A
representative must, in conformity with
the regulations setting forth our existing
duties and responsibilities and those of
claimants (see § 404.1512 in disability
and blindness claims):
*
*
*
*
*
(3) Conduct the representative’s
dealings in a manner that furthers the
efficient, fair, and orderly conduct of the
administrative decision-making process,
including duties to:
(i) * * *This includes knowing the
significant issue(s) in a claim and
having a working knowledge of the
applicable provisions of the Social
Security Act, as amended, the
regulations and the Rulings;
(ii) * * * This includes providing
prompt and responsive answers to
requests from the Agency for
information pertinent to processing of
the claim; and
(iii) Maintain a paper copy of the form
described in § 404.1707(a) that reflects
the representative’s and the claimant’s
signatures and respective signature
dates appointing the representative, and
maintain copies of the signed
attestations described in § 404.1730(f),
and provide paper copies to us on
request.
(4) If the representative is a
professional representative, conduct
business with us electronically at the
times and in the manner that we
prescribe when submitting any written
request for reconsideration or a hearing
before an administrative law judge on
an initial disability claim that was based
on medical factors.
(c) Prohibited actions. A
representative must not:
*
*
*
*
*
(4) Through the representative’s own
actions or omissions, unreasonably
delay or cause to be delayed, without
good cause (see § 404.911(b)), the
processing of a claim at any stage of the
administrative decision-making process;
*
*
*
*
*
(6) Attempt to influence, directly or
indirectly, the outcome of a decision,
determination or other administrative
action by offering or granting a loan,

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gift, entertainment or anything of value
to a presiding official, Agency employee
or witness who is or may reasonably be
expected to be involved in the
administrative decisionmaking process,
except as reimbursement for
legitimately incurred expenses or lawful
compensation for the services of an
expert witness retained on a noncontingency basis to provide evidence;
(7) * * *
(iii) Threatening or intimidating
language, gestures or actions directed at
a presiding official, witness or Agency
employee which results in a disruption
of the orderly presentation and
reception of evidence;
(8) Violate any section of the Social
Security Act for which a criminal or
civil monetary penalty is prescribed;
(9) Refuse to comply with any of our
rules or regulations;
(10) Suggest, assist, or direct another
person to violate our rules or
regulations;
(11) Advise any claimant or
beneficiary not to comply with any of
our rules and regulations;
(12) Assist another person whom we
have suspended or disqualified; or
(13) Fail to comply with our decision
regarding sanctions.
25. Amend § 404.1750 by revising
paragraphs (a) and (d) to read as follows:
§ 404.1750 Notice of charges against a
representative.

(a) The General Counsel (or other
official the Commissioner may
designate), or his or her designee, will
prepare a notice containing a statement
of charges that constitutes the basis for
the proceeding against the
representative.
*
*
*
*
*
(d) The General Counsel (or other
official the Commissioner may
designate), or his or her designee, may
extend the 30-day period for good cause
in accordance with § 404.911.
*
*
*
*
*
26. Revise § 404.1755 to read as
follows:

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§ 404.1755 Withdrawing charges against a
representative.

The General Counsel (or other official
the Commissioner may designate), or his
or her designee, may withdraw charges
against a representative. We will do this
if the representative files an answer, or
we obtain evidence, that satisfies us that
we should not suspend or disqualify the
representative from acting as a
representative in dealings with us.
When we consider withdrawing charges
brought under § 404.1745(d) or (e) based
on the representative’s assertion that,
before or after our filing of charges, the

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representative has been reinstated to
practice by the court, bar, or Federal
program or Federal agency that
suspended, disbarred, or disqualified
the representative, the General Counsel
(or other official the Commissioner may
designate), or his or her designee, will
determine whether such reinstatement
occurred, whether it remains in effect,
and whether he or she is reasonably
satisfied that the representative will in
the future act in accordance with the
provisions of section 206(a) of the Act
and our rules and regulations. If the
representative proves that reinstatement
occurred and remains in effect and the
General Counsel, or his or her designee,
is so satisfied, the General Counsel, or
his or her designee, will withdraw those
charges. The action of the General
Counsel, or his or her designee,
regarding withdrawal of charges is
solely that of the General Counsel (or
other official the Commissioner may
designate), or his or her designee, and
is not reviewable, or subject to
consideration in decisions made under
§§ 404.1770 and 404.1790. If we
withdraw the charges, we will notify the
representative by mail at the
representative’s last known address.
27. Amend § 404.1765 by revising
paragraphs (a), (b)(1), and (e), the first
sentence of paragraph (g)(2), and
paragraphs (i), (l), and (m) to read as
follows:
§ 404.1765

Hearing on charges.

(a) Holding the hearing. If the General
Counsel (or other official the
Commissioner may designate), or his or
her designee, does not take action to
withdraw the charges within 15 days
after the date on which the
representative filed an answer, we will
hold a hearing and make a decision on
the charges.
(b) Hearing officer. (1) The Deputy
Commissioner for Disability
Adjudication and Review (or other
official the Commissioner may
designate), or his or her designee, will
assign an administrative law judge,
designated to act as a hearing officer, to
hold a hearing on the charges.
*
*
*
*
*
(e) Parties. The representative against
whom charges have been made is a
party to the hearing. The General
Counsel (or other official the
Commissioner may designate), or his or
her designee, will also be a party to the
hearing.
*
*
*
*
*
(g) Conduct of the hearing. * * *
(2) If the representative did not file an
answer to the charges, the representative

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has no right to present evidence at the
hearing. * * *
*
*
*
*
*
(i) Witnesses. Witnesses who testify at
the hearing must do so under oath or
affirmation. Either the representative or
a person representing the representative
may question the witnesses. The other
party and that party’s representative
must also be allowed to question the
witnesses. The hearing officer may also
ask questions as considered necessary,
and will rule upon any objection made
by either party about whether any
question is proper.
*
*
*
*
*
(l) Representation. The representative,
as the person charged, may appear in
person and may be represented by an
attorney or other representative. The
General Counsel (or other official the
Commissioner may designate), or his or
her designee, will be represented by one
or more attorneys from the Office of the
General Counsel.
(m) Failure to Appear. If the
representative or the other party to the
hearing fails to appear after being
notified of the time and place, the
hearing officer may hold the hearing
anyway so that the party present may
offer evidence to sustain or rebut the
charges. The hearing officer will give
the other party who failed to appear an
opportunity to show good cause for
failure to appear. If the party fails to
show good cause, the party is
considered to have waived the right to
be present at the hearing. If the party
shows good cause, the hearing officer
may hold a supplemental hearing.
*
*
*
*
*
28. Amend § 404.1770 by revising
paragraphs (a)(1), (a)(2), (a)(3)
introductory text, (a)(3)(ii), (b)(2), and
(b)(3) to read as follows:
§ 404.1770

Decision by hearing officer.

(a) General. (1) After the close of the
hearing, the hearing officer will issue a
decision or certify the case to the
Appeals Council. The decision must be
in writing, will contain findings of fact
and conclusions of law, and be based
upon the evidence of record.
(2) In deciding whether a person has
been, by reason of misconduct,
disbarred or suspended by a court or
bar, or disqualified from participating in
or appearing before any Federal program
or agency, the hearing officer will
consider the reasons for the disbarment,
suspension, or disqualification action. If
the action was taken for solely
administrative reasons (e.g., failure to
pay dues or to complete continuing
legal education requirements), that will
not disqualify the person from acting as

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a representative before us. However, this
exception to disqualification does not
apply if the administrative action was
taken in lieu of disciplinary proceedings
(e.g., acceptance of a voluntary
resignation pending disciplinary
action). Although the hearing officer
will consider whether the disbarment,
suspension, or disqualification action is
based on misconduct when deciding
whether a person should be disqualified
from acting as a representative before
us, the hearing officer will not reexamine or revise the factual or legal
conclusions that led to the disbarment,
suspension, or disqualification.
(3) If the hearing officer finds that the
charges against the representative have
been sustained, he or she will either—
*
*
*
*
*
(ii) Disqualify the representative from
acting as a representative in dealings
with us until the representative may be
reinstated under § 404.1799.
Disqualification is the sole sanction
available if the charges have been
sustained because the representative has
been disbarred or suspended from any
court or bar to which the representative
was previously admitted to practice or
disqualified from participating in or
appearing before any Federal program or
agency, or because the representative
has collected or received, and retains, a
fee for representational services in
excess of the amount authorized.
*
*
*
*
*
(b) Effect of hearing officer’s decision.
* * *
(2) If the final decision is that a
person is disqualified from being a
representative in dealings with us, the
representative will not be permitted to
represent anyone in dealings with us
until authorized to do so under the
provisions of § 404.1799.
(3) If the final decision is that a
person is suspended for a specified
period of time from being a
representative in dealings with us, the
representative will not be permitted to
represent anyone in dealings with us
during the period of suspension unless
authorized to do so under the provisions
of § 404.1799.
29. Amend § 404.1780 by revising
paragraph (b) to read as follows:

§ 404.1799 Reinstatement after
suspension or disqualification—period of
suspension not expired.

§ 404.1780 Appeals Council’s review of
hearing officer’s decision.

PART 408—SPECIAL BENEFITS FOR
CERTAIN WORLD WAR II VETERANS

36. Amend § 416.1401 by adding a
definition in alphabetical order to read
as follows:

Subpart K—[Amended]

§ 416.1401

*
*
*
*
(b) If a party files a brief or other
written statement with the Appeals
Council, the party must send a copy to
the opposing party and certify that the
copy has been sent.
30. Amend § 404.1799 by revising
paragraphs (b), (c), (d)(2), (d)(3), and (e),
to read as follows:

*

*
*
*
*
(b) The suspended or disqualified
person must submit any evidence the
person wishes to have considered along
with the request to be allowed to serve
as a representative again.
(c) The General Counsel (or other
official the Commissioner may
designate), or his or her designee, upon
notification of receipt of the request,
will have 30 days in which to present
a written report of any experiences with
the suspended or disqualified person
subsequent to that person’s suspension
or disqualification. The Appeals
Council will make available to the
suspended or disqualified person a copy
of the report.
(d) * * *
(2) If a person was disqualified
because the person had been disbarred
or suspended from a court or bar, the
Appeals Council will grant a request for
reinstatement as a representative only if
the criterion in paragraph (d)(1) of this
section is met and the disqualified
person shows that the person has been
admitted (or readmitted) to and is in
good standing with the court or bar from
which the person had been disbarred or
suspended.
(3) If a person was disqualified
because the person had been
disqualified from participating in or
appearing before a Federal program or
Federal agency, the Appeals Council
will grant the request for reinstatement
only if the criterion in paragraph (d)(1)
of this section is met and the
disqualified person shows that the
person is now qualified to participate in
or appear before that Federal program or
Federal agency.
*
*
*
*
*
(e) The Appeals Council will mail a
notice of its decision on the request for
reinstatement to the suspended or
disqualified person. It will also mail a
copy to the General Counsel (or other
official the Commissioner may
designate), or his or her designee.
*
*
*
*
*

*
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32. Amend § 408.1101 by revising
paragraphs (a) and (b)(3) to read as
follows:
§ 408.1101 Can you appoint someone to
represent you?

(a) General rules. You may appoint
one or more individuals or entities to
represent you in any of your dealings
with us. For purposes of this part, the
rules on representation of parties in
§§ 416.1500–416.1505, 416.1507–
416.1515 and 416.1540–416.1599 of this
chapter apply except as noted in
paragraph (b) of this section.
(b) Exceptions. * * *
(3) In § 416.1507(a)(1)(iii), the words
‘‘one of our offices’’ are deemed to read
‘‘any of the offices listed in
§ 408.1009(b).’’
*
*
*
*
*
PART 416—SUPPLEMENTAL
SECURITY INCOME FOR THE AGED,
BLIND, AND DISABLED
Subpart C—[Amended]
33. The authority citation for subpart
C of part 416 continues to read as
follows:
Authority: Secs. 702(a)(5), 1611, and
1631(a), (d), and (e) of the Social Security Act
(42 U.S.C. 902(a)(5), 1382, and 1383(a), (d),
and (e)).

34. Amend § 416.315 by adding
paragraph (d) to read as follows:
§ 416.315

Who may sign an application.

*

*
*
*
*
(d) Your principal representative (see
§§ 416.1505 and 416.1507) may sign and
file your application with us. If a
principal representative signs an
application on your behalf, you are
responsible for the accuracy of the
information you provide.
Subpart N—[Amended]
35. The authority citation for subpart
N of part 416 continues to read as
follows:
Authority: Secs. 702(a)(5), 1631, and 1633
of the Social Security Act (42 U.S.C.
902(a)(5), 1383, and 1383b); sec. 202, Pub. L.
108–203, 118 Stat. 509 (42 U.S.C. 902 note).

Definitions.

*
31. The authority citation for subpart
K of part 408 continues to read as
follows:
Authority: Secs. 702(a)(5) and 810(a) of the
Social Security Act (42 U.S.C. 902(a)(5) and
1010(a)).

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*
*
*
*
Initial disability claim means:
(1) An application for benefits that is
based on whether you are disabled
under title II of the Act, or
(2) An application for supplemental
security income payments that is based

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on whether you are disabled or blind
under title XVI of the Act.
(3) For purposes of this subpart, the
term ‘‘initial disability claim’’ does not
include a continuing disability review
or an age-18 redetermination.
*
*
*
*
*
37. Amend § 416.1403 by revising
paragraph (a)(7) to read as follows:
§ 416.1403 Administrative actions that are
not initial determinations.

(a) * * *
(7) Refusing to recognize,
disqualifying, or suspending a person,
as defined in § 416.1503, from acting as
your representative in a proceeding
before us (see §§ 416.1505 and
416.1545);
*
*
*
*
*
38. Amend § 416.1409 by revising the
section heading and paragraph (a), and
by removing the heading for paragraph
(b), to read as follows:
§ 416.1409 How to request reconsideration
in claims other than those that involve a
denial of an initial disability claim based on
medical factors.

(a) We will reconsider an initial
determination, other than one that
involves a denial of your initial
disability claim based on medical
factors (see § 416.1410), if you or any
other party to the reconsideration files
a written request within 60 days after
the date you receive notice of the initial
determination (or within the extended
time period if we extend the time as
provided in paragraph (b) of this section
at one of our offices, the Veterans
Administration Regional Office in the
Philippines, or an office of the Railroad
Retirement Board if you have 10 or more
years of service in the railroad industry,
or at least five years of railroad service
accruing after December 31, 1995.
*
*
*
*
*
39. Add a new § 416.1410 to read as
follows:

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§ 416.1410 How to request reconsideration
in an initial disability claim that is denied
based on medical factors.

(a) If you file an initial disability
claim, we will reconsider an initial
determination that denies your claim
based on medical factors if you or any
other party to the reconsideration files
a written request within 60 days after
the date you receive notice of the initial
determination and you make your
request in accordance with paragraphs
(b) or (c) (or within the extended time
period if we extend the time as provided
in paragraph (d)) of this section.
(b) If you have not appointed a
representative, or if your representative
is not a professional representative, as

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defined in § 416.1503, you may file your
written request for reconsideration
either through the electronic media we
prescribe, at one of our offices, at the
Veterans Administration Regional Office
in the Philippines, or at an office of the
Railroad Retirement Board if you have
10 or more years of service in the
railroad industry, or at least five years
of railroad service accruing after
December 31, 1995.
(c) If your representative is a
professional representative, as defined
in § 416.1503, your professional
representative must file your written
request for reconsideration with us
through the electronic media that we
prescribe, unless we waive this
requirement.
(d) If you want a reconsideration of
the initial determination that denies
your initial disability claim based on
medical factors, but do not request one
in time, you may ask us for more time
to request a reconsideration. Your
request for an extension of time must be
in writing and must give the reasons
why the request for reconsideration was
not filed within the stated time period.
If you show us that you had good cause
for missing the deadline, we will extend
the time period. To determine whether
good cause exists, we use the standards
explained in § 416.1411. You must file
the request for an extension of time
according to the procedures in
paragraphs (b) or (c) of this section.
40. Amend § 416.1433 by revising the
section heading and paragraphs (a)
introductory text and (b) to read as
follows:
§ 416.1433 How to request a hearing
before an administrative law judge in claims
other than those that involve a denial of an
initial disability claim based on medical
factors.

(a) Written request. You may request
a hearing on your claim, other than one
that involves a denial of your initial
disability claim based on medical
factors (see § 416.1434), by filing a
written request. You should include in
your request—
*
*
*
*
*
(b) When and where to file. The
request must be filed within 60 days
after the date you receive notice of the
previous determination or decision (or
within the extended time period if we
extend the time as provided in
paragraph (c) of this section at one of
our offices, at the Veterans
Administration Regional Office in the
Philippines, or at an office of the
Railroad Retirement Board if you have
10 or more years of service in the
railroad industry, or at least five years

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of railroad service accruing after
December 31, 1995.
*
*
*
*
*
41. Add a new § 416.1434 to read as
follows:
§ 416.1434 How to request a hearing
before an administrative law judge in an
initial disability claim that is denied based
on medical factors.

(a) If we deny your reconsidered
initial disability claim based on medical
factors, you may request a hearing by
filing a written request. You should
include in your request—
(1) The name and Social Security
number of the wage earner;
(2) The reasons you disagree with the
previous determination or decision;
(3) A statement of additional evidence
to be submitted and the date you will
submit it; and
(4) The name and address of any
designated representative.
(b) Your request for a hearing must be
filed within 60 days after the date you
receive notice of the previous
determination or decision (or within the
extended time period if we extend the
time as provided in paragraph (e) of this
section).
(c) If you have not appointed a
representative, or if your representative
is not a professional representative, as
defined in § 416.1503, you may file your
written request for a hearing either
through the electronic media we
prescribe, at one of our offices, at the
Veterans Administration Regional Office
in the Philippines, or at an office of the
Railroad Retirement Board if you have
10 or more years of service in the
railroad industry, or at least five years
of railroad service accruing after
December 31, 1995.
(d) If your representative is a
professional representative, as defined
in § 416.1503, your professional
representative must file your written
request for a hearing with us through
the electronic media that we prescribe,
unless we waive this requirement.
(e) If you have a right to a hearing
with respect to a determination or
decision that denies your initial
disability claim based on medical
factors, but you do not request one in
time, you may ask for more time to
make your request. The request for an
extension of time must be in writing and
it must give the reasons why the request
for a hearing was not filed within the
stated time period. If you show that you
had good cause for missing the
deadline, we will extend the time
period. To determine whether good
cause exists, we use the standards
explained in § 416.1411. You must file
the request for an extension of time

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Fee petition means a written
statement signed by the claimant’s
representative requesting the fee the
Subpart O—[Amended]
representative wants to charge and
collect for services the representative
42. The authority citation for subpart
provided in pursuing the claimant’s
O of part 416 continues to read as
benefit rights in proceedings before us.
follows:
Past-due benefits means the total
Authority: Secs. 702(a)(5), 1127 and
amount of payments under title XVI of
1631(d) of the Social Security Act (42 U.S.C.
the Act, the Supplemental Security
902(a)(5), 1320a–6 and 1383(d)); sec. 303,
Income (SSI) program, including any
Pub. L. 108–203, 118 Stat. 493.
Federally administered State payments,
43. Amend § 416.1500 by revising the that has accumulated to you and your
introductory text and paragraph (a) to
spouse because of a favorable
read as follows:
administrative or judicial determination
or decision, up to but not including the
§ 416.1500 Introduction.
month the determination or decision is
You may appoint one or more
made. For purposes of calculating fees
individuals or entities to represent you
for representation, we first determine
in any of your dealings with us. This
the SSI past-due benefits before any
subpart explains, among other things—
applicable reduction for reimbursement
(a) Who may be your representative
to a State (or political subdivision) for
and what your representative’s
interim assistance reimbursement, and
qualifications must be;
before any applicable reduction under
*
*
*
*
*
section 1127 of the Act (for receipt of
44. Revise § 416.1503 to read as
benefits for the same period under title
follows:
II). We then reduce that figure by the
amount of any reduction of title II or
§ 416.1503 Definitions.
title XVI benefits that was required by
As used in this subpart—
section 1127. We do this whether the
Access registration means supplying
actual offset, as provided under section
us with personal information that we
1127, reduced the title II or title XVI
use to identify you, your representative, benefits. Past-due benefits do not
or an individual working on behalf of
include:
your representative, to authenticate and
(1) Continued benefits paid pursuant
authorize you, your representative, or an to § 416.996;
individual working on behalf of your
(2) Continued benefits paid pursuant
representative to do business with us.
to § 416.1336(b); or
Direct payment registration means
(3) Interim benefits paid pursuant to
supplying to us personal, financial
section 1631(a)(8) of the Act.
institution, and business affiliation
Person means an individual or an
information that we use to authorize a
entity.
representative under certain
Principal representative means an
circumstances to receive direct payment attorney who meets all of the
of representative fees via electronic
requirements of § 416.1505(a), an
funds transfer.
individual other than an attorney who
Disqualify refers to an action that
meets all of the requirements of
prohibits a person from participating in
§ 416.1505(b), or an entity that meets all
or appearing before a Federal agency or
of the requirements under § 416.1505(b),
Federal program, regardless of how long who has been appointed to represent
the prohibition lasts or the specific
you in dealings with us and who is
terminology used.
responsible for disseminating
Electronic media means the electronic information and requests from us to you
media that we prescribe for providing us and your other representatives, if any.
Professional representative means any
information, registering with us, and
attorney, any individual other than an
filing with us certain applications,
attorney, or any entity that holds itself
forms, and other documents.
Entity means any business, firm, or
out to the public as providing
other association, including but not
representational services (see
limited to partnerships, corporations,
§ 416.1535) before us, regardless of
for-profit organizations, and not-forwhether the representative charges or
profit organizations.
collects a fee for providing the
Federal agency refers to any authority representational services.
Representative means an attorney
of the Executive branch of the
who meets all of the requirements of
Government of the United States.
Federal program refers to any program § 416.1505(a), an individual other than
an attorney who meets all of the
established by an Act of Congress or
requirements of § 416.1505(b), or an
administered in whole or in part by a
entity that meets all of the requirements
Federal agency.

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according to the procedures in
paragraphs (b) or (c) of this section.

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51977

of § 416.1505(b), whom you appoint to
represent you in dealings with us. For
purposes of §§ 416.1540 through
416.1599, the term representative also
includes an attorney or a non-attorney
whom you have not appointed as your
representative under the previous
sentence but who works for or on behalf
of an appointed representative and
helps represent you in your claim before
us.
We, our(s), or us refers to the Social
Security Administration.
You or your(s) refers to any individual
or the eligible spouse of any individual
claiming or receiving supplemental
security income benefits.
45. Amend § 416.1505 by removing
the heading for paragraphs (a) and (b),
revising paragraph (b) introductory text,
and adding paragraphs (c) through (g) to
read as follows:
§ 416.1505 Who may be your
representative.

*

*
*
*
*
(b) You may appoint any person who
is not an attorney to be your
representative in dealings with us if the
person—
*
*
*
*
*
(c) We may refuse to recognize your
appointed representative if the
representative does not meet our
requirements. We will notify you and
your appointed representative if we do
not recognize your appointed
representative.
(d) You may appoint more than one
representative to represent you at the
same time.
(e) You must have a principal
representative. When you appoint only
one representative, that representative is
your principal representative. When you
appoint more than one representative
you must select one of your appointed
representatives as your principal
representative. Your principal
representative is responsible for
disseminating information and requests
from us to you and your other
representatives, if any, and for
providing us information from you and
about your claim. You may have only
one principal representative at a time.
(f) If at any point you are represented
by more than one representative and
you have not appointed or do not have
a principal representative, we will name
one of your appointed representatives as
your principal representative. You may
appoint a different principal
representative than the one we name by
filing the appropriate form.
(g) Each of your representatives, as
well as individuals working on their
behalf, must complete access

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registration with us in the manner we
prescribe.
46. Revise § 416.1507 to read as
follows:

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§ 416.1507 How you appoint and revoke
the appointment of a representative.

(a) You must use the version of the
form we prescribe, electronic or paper,
to appoint or revoke the appointment of
a representative.
(1) If your representative is not a
professional representative, and your
representative does not want to deal
with us through the electronic media we
prescribe, we will recognize your
appointment of a representative if—
(i) Both you and your representative
sign the paper form we prescribe;
(ii) You choose a principal
representative on the form we prescribe
at the time of the appointment; and
(iii) You or your representative files
the signed form with us at one of our
offices if you have initially filed a claim
or have requested reconsideration; with
the hearing office if you have requested
a hearing; or with the Appeals Council
if you have requested a review of the
administrative law judge’s decision.
(2) If your representative is a
professional representative, or if your
representative is not a professional
representative but wants to do business
with us through the electronic media we
prescribe, we will recognize your
appointment of a representative if—
(i) Your representative electronically
signs the form we prescribe, prints the
electronically signed form, and you sign
the printed copy of the form;
(ii) You choose a principal
representative on the form we prescribe
at the time of the appointment; and
(iii) Your representative files the
electronic form in the manner we
prescribe.
(3) If we do not make the electronic
form available or we prescribe that the
electronic form is not required, then we
will recognize your appointment of a
professional representative according to
the procedures in paragraph (a)(1) of
this section.
(b) Each time you change your
principal representative, you must file a
new version of the form we prescribe.
(c) If at any point you are represented
by more than one representative and
you have not appointed or do not have
a principal representative, we will name
one of your appointed representatives as
your principal representative. You may
appoint a different principal
representative than the one we name by
filing the appropriate form.
(d) You must file the form we
prescribe with us to revoke the
appointment of a representative. The

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date of the revocation is the date on
which you file the form with us. We
will notify you and your representative
that you revoked your representative’s
appointment.
47. Amend § 416.1510 by revising
paragraphs (a) introductory text and (b)
and by adding paragraph (c) to read as
follows:
§ 416.1510

Authority of a representative.

(a) Your representative may, on your
behalf—
*
*
*
*
*
(b) Your principal representative may
also sign and file an application on your
behalf for rights or benefits under title
XVI of the Act, as described in
§ 416.315(d).
(c) If you appoint an entity as your
representative, any document related to
the claim that is signed by a registered
employee of the entity is binding on that
entity, even if the employee’s
association with the entity ends.
48. Add a new § 416.1512 to read as
follows:
§ 416.1512 When the appointment of your
representative begins and ends.

(a) The appointment of your
representative begins on the date that
you and your representative sign the
form we prescribe appointing your
representative as described in
§ 416.1507. However, we will not
recognize your appointment of a
representative or deal with your
representative until you or your
representative file(s) the signed form
with us.
(b) If your appointed representative is
an individual, the individual’s authority
continues until the earliest of the
following actions occur—
(1) You file the prescribed form with
us revoking the appointment of your
representative;
(2) Your representative files the
prescribed form with us withdrawing as
your representative;
(3) We have made a final
determination or decision on your claim
of the period in which you or your
representative could appeal our
determination or decision has ended,
and you or your representative did not
file an appeal before the end of that
period;
(4) Your representative files a fee
petition requesting our authorization to
charge and collect a fee (see §§ 416.1520
and 416.1525);
(5) We have closed out any
application that was started by you or
on your behalf but was not pursued
within the time period we prescribe;
(6) We disqualify or suspend your
representative; or

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(7) Your representative dies.
(c) If your appointed representative is
an entity, the entity’s authority
continues until the earliest of the
following actions occur—
(1) You file the prescribed form with
us revoking the appointment of your
representative;
(2) Your representative files the
prescribed form with us withdrawing as
your representative.
(3) We have made a final
determination or decision on your claim
of the period in which you or your
representative could appeal our
determination or decision has ended,
and you or your representative did not
file an appeal before the end of that
period;
(4) Your representative files a fee
petition requesting our authorization to
charge and collect a fee (see §§ 416.1520
and 416.1525);
(5) We have closed out any
application that was started by you or
on your behalf but was not pursued
within the time period we prescribe;
(6) We disqualify or suspend your
representative;
(7) The entity goes out of business; or
(8) The entity changes ownership or
changes the services it provides, such
that it no longer represents claimants
before us.
(d) You may reappoint a
representative by properly filing a new
prescribed form with us in accordance
with §§ 416.1505 and 416.1507.
49. Add a new § 416.1513 to read as
follows:
§ 416.1513

Professional representatives.

(a) Professional representatives must
conduct business with us electronically
at the times and in the manner that we
prescribe.
(b) Professional representatives, and
individuals working on behalf of
professional representatives on claims
before us, must make certain attestations
we require to ensure that each
individual knows, understands, and
will comply with our rules and
regulations. Each of these individuals
will make these attestations one time
during the access registration process.
50. Revise § 416.1515 to read as
follows:
§ 416.1515 Notice or request to a
representative.

(a) We will send to you, your
principal representative, and your other
representatives, if any, all notices
relating to the appointment of any of
your representatives and the revocation
or withdrawal of an appointment of any
of your representatives. Notices sent in
accordance with § 416.1530(c)(2)(i) will

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be sent to any representative who has
not filed a written request for a fee in
accordance with § 416.1530(c)(1).
(b) We will send only to your
principal representative—
(1) Notices and copies of any
administrative action, determination, or
decision in your claim; and
(2) Requests for information or
evidence in your claim.
(c) If your principal representative is
an entity, we will send all notices,
copies of any administrative action,
determination, or decision in your
claim, and requests for information to
the individual who signed the
appointment of representative form on
behalf of the entity, until or unless the
entity informs us of a different contact
within the entity for this purpose.
(d) Your principal representative is
responsible for informing other
appointed representatives, if any, about
any notices, administrative actions,
determinations, decisions, or requests
for information or evidence that we
send to the principal representative. We
will not send copies of notices, any
administrative actions, determinations,
decisions, or requests for information or
evidence to any representative, except
your principal representative.
(e) Any notice or request we send to
your principal representative will have
the same force and effect as if we sent
it directly to you.
51. Amend § 416.1520 by revising
paragraphs (a), (b)(1), (b)(3), (b)(4), (c)
introductory text, (c)(3) introductory
text, the first two sentences of paragraph
(d)(1), and the first sentence of
paragraph (d)(2)(i) to read as follows:

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§ 416.1520
services.

Fee for a representative’s

(a) General. A representative may
charge and receive a fee for providing
you with services as a representative as
provided in paragraph (b) of this section
or as provided in sections 206(a)(2) and
1631(d)(2) of the Act.
(b) Charging and receiving a fee under
the fee petition process. (1) The
representative must file a written fee
petition with us before the
representative may charge or receive a
fee for providing you with services.
*
*
*
*
*
(3) A representative must not charge
or receive any fee unless we have
approved it, and a representative must
not charge or receive any fee that is
more than the amount we approve.
(4) If the representative is an attorney,
a non-attorney who is eligible to
participate in the direct payment
demonstration project, as defined in
§ 416.1517, or an entity that meets the
requirements in § 416.1530(f) and the

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claimant is entitled to past-due benefits,
we will pay the authorized fee, or a part
of the authorized fee, directly to the
attorney, eligible non-attorney, or
eligible entity out of the past-due
benefits, subject to the limitations
described in § 416.1530(b)(1). If the
representative is not an attorney,
eligible non-attorney, or eligible entity,
we assume no responsibility for the
payment of any fee that we have
authorized.
(c) Notice of determination on the fee
petition. We will mail to both you and
your representative at your last known
addresses a written notice of what we
decide about the fee petition. We will
state in the notice—
*
*
*
*
*
(3) That we are not responsible for
paying the fee, except when we may pay
an attorney, a non-attorney who is
eligible to participate in the direct
payment demonstration project, as
defined in § 416.1517, or an entity that
meets the requirements in § 416.1530(f),
from past-due benefits; and—
*
*
*
*
*
(d) Review of fee petition
determination-(1) Request filed on time.
We will review the decision we made
about a fee petition if either you or your
representative files a written request for
the review through the electronic media
we prescribe or at one of our offices
within 30 days after the date of the
notice of the fee determination. Either
you or your representative, whoever
requests the review, must mail a copy of
the request to the other person. * * *
(2) Request not filed on time. (i) If you
or your representative requests a review
of the decision we made about a fee, but
does so more than 30 days after the date
of the notice of the fee determination,
whoever makes the request must state in
writing why it was not filed within the
30-day period. * * *
*
*
*
*
*
52. Amend § 416.1525 by revising the
section heading, paragraphs (a)
introductory text, (a)(2) through (a)(6),
the heading for paragraph (b), and
paragraph (b)(1)(vii) to read as follows:
§ 416.1525
petition.

Request for approval of a fee

(a) Filing a written fee petition. Unless
your representative’s fee is approved
pursuant to sections 206(a)(2) and
1631(d)(2) of the Act, in order for your
representative to obtain approval of a
fee for services your representative
performed in dealings with us, your
representative must file a written fee
petition through the electronic media
we prescribe or at one of our offices.
This should be done after the

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proceedings in which your
representative represented you are
completed. The request must contain—
*
*
*
*
*
(2) A list of the services your
representative provided and the amount
of time your representative spent on
each type of service;
(3) The amount of the fee your
representative wants to charge for the
services;
(4) The amount of fee your
representative wants to request or
charge for representing you in the same
matter before any State or Federal court;
(5) The amount of and a list of any
expenses your representative incurred
for which your representative has been
paid or expects to be paid;
(6) A description of the special
qualifications which enabled your
representative, if not an attorney, to give
valuable help in connection with your
claim; and
*
*
*
*
*
(b) Evaluating a request for approval
of a fee petition.
(1) * * *
(vii) The amount of fee the
representative requests for the
representative’s services, including any
amount authorized or requested before,
but not including the amount of any
expenses the representative incurred.
*
*
*
*
*
53. Amend § 416.1528 by revising
paragraph (a) to read as follows:
§ 416.1528 Proceedings before a State or
Federal court.

(a) Representation of a party in court
proceedings in fee petitions. We will not
consider any service the representative
gave you in any proceeding before a
State or Federal court to be services as
a representative in dealings with us.
However, if the representative also has
given service to you in the same
connection in any dealings with us, the
representative must specify what, if any,
portion of the fee the representative
wants to charge is for services
performed in dealings with us. If the
representative charges any fee for those
services, the representative must file the
request and furnish all of the
information required by § 416.1525.
*
*
*
*
*
54. Revise § 416.1530 to read as
follows:
§ 416.1530

Payment of fees.

(a) Fees allowed by a Federal court in
fee petitions. We will pay a
representative who is an attorney out of
your past-due benefits, the amount of
the fee allowed by a Federal court in a
proceeding under title XVI of the Act.

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This payment is subject to the
limitations described in paragraph (b)(1)
of this section.
(b) Fees we may authorize for
payment in fee petitions—(1) Attorneys,
eligible non-attorneys, and eligible
entities. Except as provided in
paragraphs (c) and (f) of this section, if
we make a determination or decision in
your favor and you were represented by
an attorney, a non-attorney who is
eligible to participate in the direct
payment demonstration project, as
defined in § 416.1517, or an entity that
meets the requirements in paragraph (g)
of this section, and as a result of the
determination or decision you have
past-due benefits, we will pay the
representative out of the past-due
benefits, the smallest of the amounts in
paragraphs (b)(1)(i) through (iii) of this
section, less the amount of the
assessment described in paragraph (d) of
this section.
(i) Twenty-five percent of the total of
the past-due benefits, as determined
before any payment to a State (or
political subdivision) to reimburse the
State (or political subdivision) for
interim assistance furnished you, as
described in § 416.525, and reduced by
the amount of any reduction in benefits
under this title or title II pursuant to
section 1127 of the Act;
(ii) The amount of past-due benefits
remaining after we pay to a State (or
political subdivision) an amount
sufficient to reimburse the State (or
political subdivision) for interim
assistance furnished you, as described
in § 416.525, and after any applicable
reductions under section 1127 of the
Act; or
(iii) The amount of the fee that we set.
(2) Persons not eligible for direct
payment. If the representative is a nonattorney who is not eligible to
participate in the direct payment
demonstration project or an entity that
is not eligible for direct payment of the
fee, we assume no responsibility for the
payment of any fee that we have
authorized. We will not deduct the fee
your past-due benefits.
(c) Time limit for filing request for
approval of fee petition to obtain direct
payment. (1) To receive direct payment
of a fee from your past-due benefits, a
representative who is an attorney, a
non-attorney who is eligible to
participate in the direct payment
demonstration project, as defined in
§ 416.1517, or an entity that meets the
requirements in paragraph (g) of this
section should file a request for
approval of a fee or a written notice of
the intent to file a request within 60
days of the date we mail the notice of
the favorable determination or decision.

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The representative should file the
request or written notice through the
electronic media we prescribe or at one
of our offices. Your representative must
send you a copy of any request for
approval of a fee, any written notice of
the intent to file a request for approval
of a fee, or any request for an extension
of time filed with us.
(2)(i) If no request is filed within 60
days of the date we mail the notice of
the favorable determination or decision,
we will mail a written notice to you and
your representative at your last known
addresses. The notice will inform you
and the representative that unless the
representative files, within 20 days from
the date of the notice, a written request
for approval of a fee under § 416.1525,
or a written request for an extension of
time showing good cause (see
§ 416.1411), we will pay all the past-due
benefits to you.
(ii) Your representative must send you
a copy of any request made to us for an
extension of time. If the request is not
filed within 20 days of the date of the
notice we send under paragraph (c)(2)(i)
of this section, or by the last day of any
extension we approved, we will pay all
past-due benefits to you. We must
approve any fee your representative
charges after that time, but the
collection of any approved fee is a
matter between you and your
representative.
(d) Assessment when we pay a fee
directly to a representative. (1)
Whenever we pay a fee directly to a
representative from past-due benefits,
we impose an assessment on the
representative.
(2) The amount of the assessment is
equal to the lesser of:
(i) The product we obtain by
multiplying the amount of the fee we
are paying to the representative by the
percentage rate the Commissioner of
Social Security determines is necessary
to achieve full recovery of the costs of
determining and paying fees directly to
representatives, but not in excess of 6.3
percent; and
(ii) The maximum assessment
amount. The maximum assessment
amount was initially set at $75, but by
law is adjusted annually to reflect the
increase in the cost-of-living. (See
§§ 404.270 through 404.277 for an
explanation of how the cost-of-living
adjustment is computed.) If the adjusted
amount is not a multiple of $1, we
round down the amount to the next
lower $1, but the amount will not be
less than $75. We will announce in the
Federal Register any increase in the
maximum assessment amount and
explain how that increase was
determined.

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(3) We collect the assessment by
subtracting it from the amount of the fee
to be paid to the representative. The
representative who is subject to an
assessment may not, directly or
indirectly, request or otherwise obtain
reimbursement of the assessment from
you.
(e) Effective dates for extension of
direct payment of fee to attorneys. The
provisions of this subpart authorizing
the direct payment of fees to attorneys
and the withholding of title XVI benefits
for that purpose, apply in claims for
benefits with respect to which the
agreement for representation is entered
into before March 1, 2010.
(f) Direct payment registration. (1) To
receive direct payment, the
representative must first complete direct
payment registration with us in the form
and manner that we prescribe.
(2) We will only make direct payment
of fees via electronic funds transfer.
(g) Direct payment to entities. We will
only make direct payment to an entity
that provides the following attestations
in its request for direct payment of fees:
(1) The entity must attest that it is in
possession of a signed statement from
each attorney or non-attorney who has
performed any representational services
for the claim in question that includes
the following:
(i) The attorney or non-attorney has
performed all representational services
on behalf of the entity,
(ii) Any fees paid pursuant to the
services the attorney or non-attorney
have provided should be paid directly
to the entity, and
(iii) The attorney or non-attorney
representative receives compensation
for the services provided directly from
the entity.
(2) The entity must attest that all
individuals who have provided
representational services on the claim in
question are individuals who qualify for
direct payment under the Act or the
direct payment demonstration project,
as defined in § 416.1517.
55. Add a new § 416.1532 to read as
follows:
§ 416.1532 Waiver of fee or direct
payment, or both.

(a) Your representative may choose to
waive the right to charge and receive a
fee. An otherwise eligible representative
who wishes to charge and receive a fee
may waive the right to direct payment.
A representative who waives the right to
direct payment does not automatically
waive the right to charge and receive a
fee.
(b) Your representative must file a
form we prescribe to waive direct
payment of the fee.

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(c) A waiver of the right to charge and
receive a fee or of direct payment, or
both, will apply to fees approved by a
Federal court, unless it is otherwise
specifically noted on the form
completed in accordance with
paragraph (b) of this section.
(d) If you have appointed an entity as
your representative, any registered
employee of the entity may sign the
form completed in accordance with
paragraph (b) of this section to waive
the fee or direct payment, or both, on
behalf of the entity.
56. Amend § 416.1540 by revising the
first sentence of paragraph (a)(1),
paragraph (b) introductory text,
paragraph (b)(3) introductory text, the
third sentence of paragraph (b)(3)(i), and
the second sentence of paragraph
(b)(3)(ii), adding paragraphs (b)(3)(iii)
and (b)(4), revising paragraphs (c)
introductory text , (c)(4), (c)(6), and
(c)(7)(iii), and adding paragraphs (c)(8)
through (c)(13) to read as follows:

sroberts on PROD1PC70 with PROPOSALS

§ 416.1540 Rules of conduct and
standards of responsibility for
representatives.

(a) * * * (1) All persons acting on
behalf of a party seeking a statutory
right or benefit must, in their dealings
with us, faithfully execute their duties
as agents and fiduciaries of a party.
* * *
(b) Affirmative duties. A
representative must, in conformity with
the regulations setting forth our existing
duties and responsibilities and those of
claimants (see § 416.912 in disability
and blindness claims):
*
*
*
*
*
(3) Conduct the representative’s
dealings in a manner that furthers the
efficient, fair, and orderly conduct of the
administrative decision-making process,
including duties to:
(i) * * * This includes knowing the
significant issue(s) in a claim and
having a working knowledge of the
applicable provisions of the Social
Security Act, as amended, the
regulations and the Rulings;
(ii) * * * This includes providing
prompt and responsive answers to
requests from the Agency for
information pertinent to processing of
the claim; and
(iii) Maintain a paper copy of the form
described in § 416.1507(a) that reflects
the representative’s and the claimant’s
signatures and respective signature
dates appointing the representative, and
maintain copies of the signed
attestations described in § 416.1530(g),
and provide paper copies to us on
request.
(4) If the representative is a
professional representative, conduct

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business with us electronically at the
times and in the manner that we
prescribe when submitting any written
request for reconsideration or a hearing
before an administrative law judge on
an initial disability claim that was based
on medical factors.
(c) Prohibited actions. A
representative must not:
*
*
*
*
*
(4) Through the representative’s own
actions or omissions, unreasonably
delay or cause to be delayed, without
good cause (see § 416.1411(b)), the
processing of a claim at any stage of the
administrative decision-making process;
*
*
*
*
*
(6) Attempt to influence, directly or
indirectly, the outcome of a decision,
determination or other administrative
action by offering or granting a loan,
gift, entertainment or anything of value
to a presiding official, Agency employee
or witness who is or may reasonably be
expected to be involved in the
administrative decisionmaking process,
except as reimbursement for
legitimately incurred expenses or lawful
compensation for the services of an
expert witness retained on a noncontingency basis to provide evidence;
(7) * * *
(iii) Threatening or intimidating
language, gestures or actions directed at
a presiding official, witness or Agency
employee which results in a disruption
of the orderly presentation and
reception of evidence;
(8) Violate any section of the Social
Security Act for which a criminal or
civil monetary penalty is prescribed;
(9) Refuse to comply with any of our
rules or regulations;
(10) Suggest, assist, or direct another
person to violate our rules or
regulations;
(11) Advise any claimant or
beneficiary not to comply with any of
our rules and regulations;
(12) Assist another person whom we
have suspended or disqualified; or
(13) Fail to comply with our decision
regarding sanctions.
57. Amend § 416.1550 by revising
paragraphs (a) and (d) to read as follows:
§ 416.1550 Notice of charges against a
representative.

(a) The General Counsel (or other
official the Commissioner may
designate), or his or her designee, will
prepare a notice containing a statement
of charges that constitutes the basis for
the proceeding against the
representative.
*
*
*
*
*
(d) The General Counsel (or other
official the Commissioner may

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51981

designate), or his or her designee, may
extend the 30-day period for good cause
in accordance with § 416.1411.
*
*
*
*
*
58. Revise § 416.1555 to read as
follows:
§ 416.1555 Withdrawing charges against a
representative.

The General Counsel (or other official
the Commissioner may designate), or his
or her designee, may withdraw charges
against a representative. We will do this
if the representative files an answer, or
we obtain evidence, that satisfies us that
we should not suspend or disqualify the
representative from acting as a
representative in dealings with us.
When we consider withdrawing charges
brought under § 416.1545(d) or (e) based
on the representative’s assertion that,
before or after our filing of charges, the
representative has been reinstated to
practice by the court, bar, or Federal
program or Federal agency that
suspended, disbarred, or disqualified
the representative, the General Counsel
(or other official the Commissioner may
designate), or his or her designee, will
determine whether such reinstatement
occurred, whether it remains in effect,
and whether he or she is reasonably
satisfied that the representative will in
the future act in accordance with the
provisions of section 206(a) of the Act
and our rules and regulations. If the
representative proves that reinstatement
occurred and remains in effect and the
General Counsel, or his or her designee,
is so satisfied, the General Counsel, or
his or her designee, will withdraw those
charges. The action of the General
Counsel, or his or her designee,
regarding withdrawal of charges is
solely that of the General Counsel (or
other official the Commissioner may
designate), or his or her designee, and
is not reviewable, or subject to
consideration in decisions made under
§§ 416.1570 and 416.1590. If we
withdraw the charges, we will notify the
representative by mail at the
representative’s last known address.
59. Amend § 416.1565 by revising
paragraphs (a), (b)(1), and (e), the first
sentence of paragraph (g)(2), and
paragraphs (i), (l), and (m) to read as
follows:
§ 416.1565

Hearing on charges.

(a) Holding the hearing. If the General
Counsel (or other official the
Commissioner may designate), or his or
her designee, does not take action to
withdraw the charges within 15 days
after the date on which the
representative filed an answer, we will
hold a hearing and make a decision on
the charges.

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(b) Hearing officer. (1) The Deputy
Commissioner for Disability
Adjudication and Review (or other
official the Commissioner may
designate), or his or her designee, will
assign an administrative law judge,
designated to act as a hearing officer, to
hold a hearing on the charges.
*
*
*
*
*
(e) Parties. The representative against
whom charges have been made is a
party to the hearing. The General
Counsel (or other official the
Commissioner may designate), or his or
her designee, will also be a party to the
hearing.
*
*
*
*
*
(g) Conduct of the hearing. * * *
(2) If the representative did not file an
answer to the charges, the representative
has no right to present evidence at the
hearing. * * *
*
*
*
*
*
(i) Witnesses. Witnesses who testify at
the hearing must do so under oath or
affirmation. Either the representative or
a person representing the representative
may question the witnesses. The other
party and that party’s representative
must also be allowed to question the
witnesses. The hearing officer may also
ask questions as considered necessary,
and will rule upon any objection made
by either party about whether any
question is proper.
*
*
*
*
*
(l) Representation. The representative,
as the person charged, may appear in
person and may be represented by an
attorney or other representative. The
General Counsel (or other official the
Commissioner may designate), or his or
her designee, will be represented by one
or more attorneys from the Office of the
General Counsel.
(m) Failure to Appear. If the
representative or the other party to the
hearing fails to appear after being
notified of the time and place, the
hearing officer may hold the hearing
anyway so that the party present may
offer evidence to sustain or rebut the
charges. The hearing officer will give
the other party who failed to appear an
opportunity to show good cause for
failure to appear. If the party fails to
show good cause, the party is
considered to have waived the right to
be present at the hearing. If the party
shows good cause, the hearing officer
may hold a supplemental hearing.
*
*
*
*
*
60. Amend § 416.1570 by revising
paragraphs (a)(1), (a)(2), (a)(3)
introductory text, (a)(3)(ii), (b)(2), and
(b)(3) to read as follows:

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§ 416.1570

Decision by hearing officer.

(a) General. (1) After the close of the
hearing, the hearing officer will issue a
decision or certify the case to the
Appeals Council. The decision must be
in writing, will contain findings of fact
and conclusions of law, and be based
upon the evidence of record.
(2) In deciding whether a person has
been, by reason of misconduct,
disbarred or suspended by a court or
bar, or disqualified from participating in
or appearing before any Federal program
or agency, the hearing officer will
consider the reasons for the disbarment,
suspension, or disqualification action. If
the action was taken for solely
administrative reasons (e.g., failure to
pay dues or to complete continuing
legal education requirements), that will
not disqualify the person from acting as
a representative before us. However, this
exception to disqualification does not
apply if the administrative action was
taken in lieu of disciplinary proceedings
(e.g., acceptance of a voluntary
resignation pending disciplinary
action). Although the hearing officer
will consider whether the disbarment,
suspension, or disqualification action is
based on misconduct when deciding
whether a person should be disqualified
from acting as a representative before
us, the hearing officer will not reexamine or revise the factual or legal
conclusions that led to the disbarment,
suspension, or disqualification.
(3) If the hearing officer finds that the
charges against the representative have
been sustained, he or she will either—
*
*
*
*
*
(ii) Disqualify the representative from
acting as a representative in dealings
with us until the representative may be
reinstated under § 416.1599.
Disqualification is the sole sanction
available if the charges have been
sustained because the representative has
been disbarred or suspended from any
court or bar to which the representative
was previously admitted to practice or
disqualified from participating in or
appearing before any Federal program or
agency, or because the representative
has collected or received, and retains, a
fee for representational services in
excess of the amount authorized.
*
*
*
*
*
(b) Effect of hearing officer’s decision.
* * *
(2) If the final decision is that a
person is disqualified from being a
representative in dealings with us, the
representative will not be permitted to
represent anyone in dealings with us
until authorized to do so under the
provisions of § 416.1599.

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(3) If the final decision is that a
person is suspended for a specified
period of time from being a
representative in dealings with us, the
representative will not be permitted to
represent anyone in dealings with us
during the period of suspension unless
authorized to do so under the provisions
of § 416.1599.
61. Amend § 416.1580 by revising
paragraph (b) to read as follows:
§ 416.1580 Appeals Council’s review of
hearing officer’s decision.

*

*
*
*
*
(b) If a party files a brief or other
written statement with the Appeals
Council, the party must send a copy to
the opposing party and certify that the
copy has been sent.
62. Amend § 416.1599 by revising
paragraphs (b), (c), (d)(2), (d)(3), and (e),
to read as follows:
§ 416.1599 Reinstatement after
suspension or disqualification—period of
suspension not expired.

*

*
*
*
*
(b) The suspended or disqualified
person must submit any evidence the
person wishes to have considered along
with the request to be allowed to serve
as a representative again.
(c) The General Counsel (or other
official the Commissioner may
designate), or his or her designee, upon
notification of receipt of the request,
will have 30 days in which to present
a written report of any experiences with
the suspended or disqualified person
subsequent to that person’s suspension
or disqualification. The Appeals
Council will make available to the
suspended or disqualified person a copy
of the report.
(d) * * *
(2) If a person was disqualified
because the person had been disbarred
or suspended from a court or bar, the
Appeals Council will grant a request for
reinstatement as a representative only if
the criterion in paragraph (d)(1) of this
section is met and the disqualified
person shows that the person has been
admitted (or readmitted) to and is in
good standing with the court or bar from
which the person had been disbarred or
suspended.
(3) If a person was disqualified
because the person had been
disqualified from participating in or
appearing before a Federal program or
Federal agency, the Appeals Council
will grant the request for reinstatement
only if the criterion in paragraph (d)(1)
of this section is met and the
disqualified person shows that the
person is now qualified to participate in

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or appear before that Federal program or
Federal agency.
*
*
*
*
*
(e) The Appeals Council will mail a
notice of its decision on the request for
reinstatement to the suspended or
disqualified person. It will also mail a
copy to the General Counsel (or other
official the Commissioner may
designate), or his or her designee.
*
*
*
*
*

§ 422.515 Forms used for withdrawal,
reconsideration and other appeals, and
appointment of representative.

* * * Prescribed forms include our
traditional pre-printed forms, forms
completed on computer screens based
on information you give us, or SSAapproved forms completed and
submitted using SSA’s Internet Web
site.
*
*
*
*
*
[FR Doc. E8–20500 Filed 9–5–08; 8:45 am]
BILLING CODE 4191–02–P

PART 422—ORGANIZATION AND
PROCEDURES
Subpart C—[Amended]

POSTAL REGULATORY COMMISSION

63. The authority for subpart C of part
422 continues to read as follows:

39 CFR Part 3001

Authority: Secs. 205, 221, and 702(a)(5) of
the Social Security Act (42 U.S.C. 405, 421,
and 902(a)(5)); 30 U.S.C. 923(b).

Periodic Reporting Rules
Postal Regulatory Commission.
Proposed rule; availability of
rulemaking petition.

AGENCY:

64. Amend § 422.203 by revising
paragraph (b)(1) to read as follows:
§ 422.203

[Docket No. RM2008–2; Order Nos. 99 and
102]

ACTION:

Hearings.

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(b) Request for hearing. (1) A request
for a hearing under paragraph (a) of this
section may be made on Form HA–501,
‘‘Request for Hearing,’’ Form HA–501.1,
‘‘Request for Hearing, part A Hospital
Insurance Benefits,’’ electronically at
the times and in the manner that we
prescribe (see §§ 404.933, 404.934,
416.1433, and 416.1434 of this chapter),
or by any other writing requesting a
hearing. The request must be filed at an
office of the Social Security
Administration, usually a district office
or a branch office, or at the Veterans
Administration Regional Office in the
Philippines (except in title XVI cases),
or at a hearing office of the Office of
Disability Adjudication and Review, or
with the Appeals Council. A qualified
railroad retirement beneficiary may, if
(s)he prefers, file a request for a hearing
under part A of title XVIII with the
Railroad Retirement Board. Form HA–
501 may be obtained from any Social
Security district office or branch office.
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Subpart F—[Amended]

SUMMARY: Under a new law, the Postal
Service must file an annual compliance
report with the Postal Regulatory
Commission on costs, revenues, rates,
and quality of service associated with its
products. It has filed documents with
the Commission to change some of the
methods it uses to compile the fiscal
year 2008 report. In the Commission’s
view, these documents constitute a
rulemaking petition. Therefore, it has
established a rulemaking docket to
allow the public to comment on
potential changes in periodic reporting
rules.
DATES: 1. Technical conference: August
27, 2008 at 10 a.m.
2. Initial comments: September 8,
2008.
3. Reply comments: September 15,
2008.

Submit comments
electronically via the Commission’s
Filing Online system at http://
www.prc.gov.

ADDRESSES:

FOR FURTHER INFORMATION CONTACT:

Stephen L. Sharfman, General Counsel,
202–789–6820 and
[email protected].
On August
11, 2008, the Commission received
Request of the United States Postal
Service for Commission Order
Amending the Established Costing
Methodologies for Purposes of Preparing
the FY 2008 Annual Compliance Report
(Request). In the Request, the Postal
Service states that it has eight changes
that it would like to make to the
methods by which it compiles the FY

SUPPLEMENTARY INFORMATION:

sroberts on PROD1PC70 with PROPOSALS

65. The authority citation for subpart
F of part 422 continues to read as
follows:
Authority: Sec. 1140(a)(2)(A) of the Social
Security Act. 42 U.S.C. 1320b–10(a)(2)(A)
(Pub. L. 103–296, Sec. 312(a)).

66. Amend § 422.515 by adding a
second sentence to the introductory text
to read as follows:

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2008 version of the annual report that is
required by 39 U.S.C. 3652 to provide to
the Commission each year. It cites 39
U.S.C. 3652(a)(1), which gives the
Commission the responsibility to
prescribe methods that are used to
produce the information that is
compiled in the annual report. Request
at 2. Among other things, the
information supplied in the annual
report is used by the Commission to
prepare the Annual Compliance
Determination (ACD) that is required by
39 U.S.C. 3653.
The Postal Service references pages 9–
10 of the most recent Commission ACD.
FY 2008 Annual Compliance
Determination, March 27, 2007 (FY
2007 ACD). There, numerous
commenters recommended that the
Postal Service not change methods for
collecting and analyzing cost data
unless interested persons have had an
opportunity to evaluate and comment
on them. The Commission concurred,
stating that it intended to issue
regulations governing periodic reports
generally (including the Postal Service’s
annual report) that would vet proposed
changes in analytical methods through
informal rulemakings in advance of the
filing of the report. FY 2007 ACD at 10.
I. Procedural Expedition
The Postal Service notes that it is
already preparing its annual report for
FY 2008. Given the lead time that is
required, it observes that it is unlikely
that the regulations that the Commission
described in its FY 2007 ACD can be
issued, and public scrutiny of particular
changes in analytical methods could be
completed under those regulations, in
time to be incorporated in its FY 2008
annual report. It therefore asks that an
alternative, expedited procedure be
used to vet its proposed changes in
analytical methods.
In the Postal Service’s view, none of
its proposed methodological changes
‘‘are of sufficient complexity to hinder
relatively straightforward evaluation by
both the parties and the Commission.’’
Request at 2. It therefore proposes that
its filing be treated as a rule 21 motion
for a Commission order approving its
proposed changes to current baseline
methods used to analyze costs. Id., n.2.
The Postal Service notes that its Request
includes the rationale for each of the
eight methodological changes that it
proposes, and estimates the impact of
each change on the costs borne by mail
classes. Equipped with this information,
it suggests, the public could provide
input in the form of answers supporting
or opposing the motion. It recognizes,
however, that the 7-day period that rule
21 allows for answers to motions should

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