[Congressional Record Volume 147, Number 159 (Friday, November 16, 2001)]
[Extensions of Remarks]
[Page E2122]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page E2122]]
INTRODUCTION OF THE ATTORNEY FEE PAYMENT SYSTEM IMPROVEMENT ACT OF 2001

                                 ______
                                 

                         HON. E. CLAY SHAW, JR.

                               of florida

                    in the house of representatives

                       Friday, November 16, 2001

  Mr. SHAW. Mr. Speaker, today I am introducing legislation that, if 
enacted, would update and improve the fee payment system to attorneys 
who represent Social Security Disability Insurance claimants as well as 
Supplemental Security Income claimants.
  As many of you know, filing for Social Security benefits--especially 
disability benefits--is so complicated that many claimants must hire 
attorneys to guide them through the process.
  Attorneys who represent Social Security claimants may choose to 
receive their fees directly from the Social Security Administration. 
Under this option, the agency deducts the fee from the claimant's past-
due benefits and forwards it to the attorney. Prior to last year, 
taxpayers picked up the tab for the agency's costs of processing, 
withholding, and forwarding this fee to the attorney.
  The Ticket to Work and Work Incentives Improvement Act changed that. 
Many people on both sides of the aisle agreed that having lawyers--not 
taxpayers--pay for Social Security's processing of their paychecks was 
the right thing to do. The law also required the General Accounting 
Office to examine a number of issues relating to the agency's 
processing of attorney fees.
  In a hearing held in May of this year, the Ways and Means 
Subcommittee on Social Security examined the current state of service 
delivery to claimants and their representatives, the findings of the 
GAO study about the costs of administering the attorney fee, the 
feasibility and advisability of two types of fee assessments, the 
potential for assessments to reduce applicants' access to 
representation, the feasibility of linking fee assessments to the 
timeliness of payment to attorneys, and the advisability of extending 
attorney fee disbursement to the Supplemental Security Income program.
  During the hearing, the Subcommittee learned that despite improvement 
in the timeliness of the Social Security Administration's processing of 
attorney fees, there are a number of viable process improvements that 
can be implemented to ensure the best possible service delivery to 
claimants and their attorneys. That is why, I, along with Ranking 
Member Matsui, are introducing the Attorney Fee Payment System 
Improvement Act of 2001.
  This legislation improves the attorney fee payment process in a 
number of ways. First, it would increase the current fee cap (which 
limits fees under fee agreements to 25 percent of past-due benefits or 
$4,000) from $4,000 to $5,200. The new cap increase represents the 
first time the cap has been raised in ten years.
  Second, the 6.3 percent assessment on an attorney's approved fee will 
be subject to a cap of $100 to help ensure enough attorneys remain 
available to represent claimants before the Social Security 
Administration.
  Third, the bill would improve Supplemental Security Income 
applicants' access to representation. Because there is no direct 
payment of attorneys' fees in SSI cases, many attorneys cannot collect 
a fee from a successful client, and as a result choose not to represent 
those applying for SSI. The disability application process is just as 
complex and just as difficult to navigate, whether an individual is 
applying for Social Security disability benefits or SSI benefits. This 
provision will help ensure that all claimants have equal access to 
representation.
  Individuals with disabilities rely on Social Security disability and/
or SSI benefits for life-sustaining income. We must do all we can to 
ensure their efforts to obtain benefits are supported, not hampered. 
Enactment of this bill will help. I urge all Members to co-sponsor this 
important legislation.

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