Federal Register / Vol. 73, No. 174 / Monday, September 8, 2008 / Proposed Rules 51963 

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 

AGENCY: Social Security Administration. 

ACTION: Notice of proposed rulemaking. 

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 

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: 

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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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 

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 

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. 

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 pastdue 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 

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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51966 Federal Register / Vol. 73, No. 174 / Monday, September 8, 2008 / Proposed Rules 

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. 

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 

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 

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. 

Regulation sections and description Number of 

respondents 

Frequency of 

response 

Average 

burden 

per response 

(minutes) 

Estimated 

annual burden 

(hours) 

404.612; 404.1710; 416.315; 416.1510—Principal representatives may sign 

and file applications with SSA on beneficiaries’ behalf.

— — — 1 (placeholder). 

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.

— — — 1 (placeholder). 

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.

— — — 1 (placeholder). 

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.

— — — 1 (placeholder). 

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.

— — — 1 (placeholder). 

404.1705; 404.1713; 404.1730; 416.1505; 416.1530; 416.1513—Representative must register with SSA to receive payment.— — — 1 (placeholder). 

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.

— — — 1 (placeholder). 

404.1715; 416.1515—Principal representatives are responsible for informing other representatives of the beneficiary about any information SSA 

sent to the principal representative.

56,000 5 2 9,333. 

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.

— — — 1 (placeholder). 

404.1732; 415,1532—Representatives may waive the right to charge and 

collect a fee, direct payment, or both.

— — — 1 (placeholder). 

404.1740; 416.1540—Procedures requiring representatives to maintain 

hard copy of certain forms with signatures and dates of signing.

— — — 1 (placeholder). 

404.1755; 416.1555—If SSA files charges against a representative, the 

representative may contest these charges.

(1) — — —

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.

(1) — — —

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.

(1) — — —


sroberts on PROD1PC70 with PROPOSALS
51968 Federal Register / Vol. 73, No. 174 / Monday, September 8, 2008 / Proposed Rules 

Regulation sections and description Number of 

respondents 

Frequency of 

response 

Average 

burden 

per response 

(minutes) 

Estimated 

annual burden 

(hours) 

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 (placeholder). 

1 Less 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: 

OIRA_Submission@omb.eop.gov 

Social Security Administration, Attn: 

Reports Clearance Officer, 1333 Annex 

Building, 6401 Security Blvd., 

Baltimore, MD 21235, Fax: 410–965–

6400, E-mail address: 

OPLM.RCO@ssa.gov. 

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 

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 

Security, Supplemental Security Income 

(SSI), Veterans. 

20 CFR Part 416 

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] 

1. The authority citation for subpart G 

of part 404 continues to read as follows: 

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: 

§ 404.612 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 

U.S.C. 421 note); sec. 202, Pub. L. 108–203, 

118 Stat. 509 (42 U.S.C. 902 note). 

4. Amend § 404.901 by adding a 

definition in alphabetical order to read 

as follows: 

§ 404.901 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. 

* * * * * 

(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: 

§ 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: 

§ 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 

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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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 

§ 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. 

(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: 

§ 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 

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 

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 Fee for a representative’s 

services. 

(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 Request for approval of a fee 

petition. 

(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 

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 

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. 

(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) 

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: 

§ 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 

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 

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: 

§ 404.1780 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. 

30. Amend § 404.1799 by revising 

paragraphs (b), (c), (d)(2), (d)(3), and (e), 

to read as follows: 

§ 404.1799 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 

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. 

* * * * * 

PART 408—SPECIAL BENEFITS FOR 

CERTAIN WORLD WAR II VETERANS 

Subpart K—[Amended] 

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)). 

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). 

36. Amend § 416.1401 by adding a 

definition in alphabetical order to read 

as follows: 

§ 416.1401 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 


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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: 

§ 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 

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 

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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according to the procedures in 

paragraphs (b) or (c) of this section. 

Subpart O—[Amended] 

42. The authority citation for subpart 

O of part 416 continues to read as 

follows: 

Authority: Secs. 702(a)(5), 1127 and 

1631(d) of the Social Security Act (42 U.S.C. 

902(a)(5), 1320a–6 and 1383(d)); sec. 303, 

Pub. L. 108–203, 118 Stat. 493. 

43. Amend § 416.1500 by revising the 

introductory text and paragraph (a) to 

read as follows: 

§ 416.1500 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; 

* * * * * 

44. Revise § 416.1503 to read as 

follows: 

§ 416.1503 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 

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 payments under title XVI of 

the Act, the Supplemental Security 

Income (SSI) program, including any 

Federally administered State payments, 

that has accumulated to you and your 

spouse 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 first determine 

the SSI past-due benefits before any 

applicable reduction for reimbursement 

to a State (or political subdivision) for 

interim assistance reimbursement, and 

before any applicable reduction under 

section 1127 of the Act (for receipt of 

benefits for the same period under title 

II). We then reduce that figure by the 

amount of any reduction of title II or 

title XVI benefits that was required by 

section 1127. We do this whether the 

actual offset, as provided under section 

1127, reduced the title II or title XVI 

benefits. Past-due benefits do not 

include: 

(1) Continued benefits paid pursuant 

to § 416.996; 

(2) Continued benefits paid pursuant 

to § 416.1336(b); or 

(3) Interim benefits paid pursuant to 

section 1631(a)(8) of the Act. 

Person means an individual or an 

entity. 

Principal representative means an 

attorney who meets all of the 

requirements of § 416.1505(a), an 

individual other than an attorney who 

meets all of the requirements of 

§ 416.1505(b), or an entity that meets all 

of the requirements under § 416.1505(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 

§ 416.1535) 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 

§ 416.1505(a), an individual other than 

an attorney who meets all of the 

requirements of § 416.1505(b), or an 

entity that meets all of the requirements 

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: 

§ 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 

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 

(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: 

§ 416.1520 Fee for a representative’s 

services. 

(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 

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 Request for approval of a fee 

petition. 

(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 

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. 

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. 

(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: 

§ 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 

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 

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: 

§ 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. 

(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. 

* * * * * 

PART 422—ORGANIZATION AND 

PROCEDURES 

Subpart C—[Amended] 

63. The authority for subpart C of part 

422 continues to read as follows: 

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). 

64. Amend § 422.203 by revising 

paragraph (b)(1) to read as follows: 

§ 422.203 Hearings. 

* * * * * 

(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. 

* * * * * 

Subpart F—[Amended] 

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: 

§ 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 

POSTAL REGULATORY COMMISSION 

39 CFR Part 3001 

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

102] 

Periodic Reporting Rules 

AGENCY: Postal Regulatory Commission. 

ACTION: Proposed rule; availability of 

rulemaking petition. 

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. 

ADDRESSES: Submit comments 

electronically via the Commission’s 

Filing Online system at http:// 

www.prc.gov. 

FOR FURTHER INFORMATION CONTACT: 

Stephen L. Sharfman, General Counsel, 

202–789–6820 and 

stephen.sharfman@prc.gov. 

SUPPLEMENTARY INFORMATION: 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 

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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