[Federal Register Volume 62, Number 125 (Monday, June 30, 1997)]
[Rules and Regulations]
[Pages 35073-35075]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-16962]


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SOCIAL SECURITY ADMINISTRATION

20 CFR Parts 404 and 416

RIN 0960-AE72


Administrative Review Process; Prehearing Proceedings and 
Decisions by Attorney Advisors; Extension of Effective Date

AGENCY: Social Security Administration.

ACTION: Final rules.

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SUMMARY: These final rules extend the effective date of the regulations 
that authorize attorney advisors in our Office of Hearings and Appeals 
(OHA) to conduct certain prehearing proceedings and, where the 
documentary record developed as a result of these proceedings warrants, 
to issue decisions that are wholly favorable to the parties to the 
hearing in claims for Social Security or Supplemental Security Income 
(SSI) benefits based on disability. We are extending the effective date 
of these regulations for a twelve month period that begins June 30, 
1997, when the provisions would otherwise cease to be effective, and 
continues through June 30, 1998.

EFFECTIVE DATE: These rules are effective June 30, 1997.

FOR FURTHER INFORMATION CONTACT: Harry J. Short, Legal Assistant, 
Division of Regulations and Rulings, Social Security Administration, 
6401 Security Boulevard, Baltimore, MD 21235, (410) 965-6243 for 
information about these rules. For information on eligibility or 
claiming benefits, call our national toll-free number, 1-800-772-1213.

SUPPLEMENTARY INFORMATION: On June 30, 1995, in an action undertaken to 
reduce the record numbers of requests for an administrative law judge 
(ALJ) hearing pending in our OHA hearing offices, we published final 
rules in the Federal Register (60 FR 34126) that authorize OHA's 
attorney advisors to conduct certain prehearing proceedings and, if a 
decision that is wholly favorable to the parties to the hearing may be 
issued at the completion of these proceedings, to issue such a 
decision. These regulations, which are codified at 20 CFR Secs. 404.942 
and 416.1442, included a provision stating that the rules would no 
longer be effective on June 30, 1997, unless they were extended by the 
Commissioner of Social Security by publication of a final rule in the 
Federal Register.
    In Fiscal Year (FY) 1996, SSA achieved the largest reduction ever 
recorded in the number of cases pending at the ALJ hearing level, 
reducing the number pending at the end

[[Page 35074]]

of FY 1995, 547,690, to 503,481 by the end of FY 1996. Use of OHA 
attorney advisors to conduct certain prehearing proceedings and issue 
wholly favorable decisions where warranted helped us to achieve those 
results. Use of the attorney advisors in these capacities also enabled 
SSA to manage greatly increased numbers of hearing requests in a more 
timely manner than would have been possible had the attorney advisors 
not been so used. These results were achieved notwithstanding a 
decrease in the overall rate at which we allow claims for benefits when 
an individual requests a hearing before an ALJ (from 64.7% in FY 1995, 
the year in which we initiated the use of attorney advisors in these 
capacities, to 58.9% in FY 1996).
    We initiated the attorney advisor program as a short term measure 
to reduce the number of cases pending in our hearing offices prior to 
implementation of the improvements in the disability claims process, 
including the use of an adjudication officer in cases in which a 
request for a hearing is filed, as set forth in the Plan for a New 
Disability Claim Process approved by former Commissioner of Social 
Security Shirley S. Chater in 1994. We began testing use of 
adjudication officers in 1995 under final rules published in the 
Federal Register on September 30, 1995 (60 FR 47469).
    To preserve our existing capacity to manage the large numbers of 
new requests for ALJ hearings we continue to receive and the large 
number of cases still pending in our hearing offices, we have decided 
that we should extend the effective date of these rules through June 
30, 1998. Therefore, we are publishing these final rules to revise the 
sunset provision in Secs. 404.942(g) and 416.1442(g) to provide that 
the provisions authorizing prehearing proceedings and decisions by the 
attorney advisors will no longer be effective on July 1, 1998, unless 
the provisions are extended by the Commissioner of Social Security by 
publication of a final rule in the Federal Register.

Regulatory Procedures

    Pursuant to section 702(a)(5) of the Social Security Act, 42 U.S.C. 
902(a)(5), as amended by section 102 of Public Law 103-296, SSA follows 
the Administrative Procedure Act (APA) rulemaking procedures specified 
in 5 U.S.C. 553 in the development of its regulations. The APA provides 
exceptions to its notice and public comment procedures when an agency 
finds there is good cause for dispensing with such procedures on the 
basis that they are impracticable, unnecessary, or contrary to the 
public interest. We have determined that, under 5 U.S.C. 553(b)(B), 
good cause exists for dispensing with the notice and public comment 
procedures in this case. Good cause exists because these rules only 
extend the date on which the regulatory provisions concerning 
prehearing proceedings and decisions by attorney advisors will no 
longer be effective. These rules make no substantive change to those 
provisions. The current regulations expressly provide that the 
provisions may be extended. Therefore, opportunity for prior public 
comment is unnecessary, and we are issuing these regulations as final 
rules.
    In addition, we find good cause for dispensing with the 30-day 
delay in the effective date of a substantive rule, provided for by 5 
U.S.C. 553(d). As explained above, we are not making any substantive 
changes in the provisions on prehearing proceedings and decisions by 
attorney advisors. However, without a timely extension of the 
expiration date for these provisions, we will lack regulatory authority 
beginning June 30, 1997, to have OHA attorney advisors conduct certain 
prehearing proceedings and issue fully favorable decisions, when 
appropriate under the rules. In order to provide for an uninterrupted 
continuance of that authority for the additional period we believe 
appropriate, and to ensure that we retain the ability to appropriately 
manage the hearing process, we find that it is in the public interest 
to make these rules effective upon publication.

Executive Order 12866

    We have consulted with the Office of Management and Budget (OMB) 
and determined that these rules do not meet the criteria for a 
significant regulatory action under Executive Order 128666. Thus, the 
rules are not subject to OMB review.

Regulatory Flexibility Act

    We certify that these regulations will not have a significant 
economic impact on a substantial number of small entities because they 
affect only individuals. Therefore, a regulatory flexibility analysis 
as provided in the Regulatory Flexibility Act, as amended, is not 
required.

Paperwork Reduction Act

    These regulations impose no reporting/recordkeeping requirements 
necessitating clearance by OMB.

Catalog of Federal Domestic Assistance

(Catalog of Federal Domestic Assistance Program Nos. 93.802, Social 
Security-Disability Insurance; 93.807, Supplemental Security 
Income.)

List of Subjects

20 CFR Part 404

    Administrative practice and procedure, Death benefits, Disability 
benefits, Old-Age, Survivors and Disability Insurance, Reporting and 
recordkeeping requirements, Social Security.

20 CFR Part 416

    Administrative practice and procedure, Aged, Blind, Disability 
benefits, Public assistance programs, Supplemental Security Income 
(SSI), Reporting and recordkeeping requirements.

    Dated: June 23, 1997.
John J. Callahan,
Acting Commissioner of Social Security.

    For the reasons set out in the preamble, subpart J of part 404 and 
subpart N of part 416 of chapter III of title 20 of the Code of Federal 
Regulations are amended as set forth below.

PART 404--FEDERAL OLD-AGE, SURVIVORS AND DISABILITY INSURANCE 
(1950-)

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

    Authority: Secs. 201(j), 205(a), (b), (d)-(h), and (j), 221, 
225, and 702(a)(5) of the Social Security Act (42 U.S.C. 401(j), 
405(a), (b), (d)-(h), and (j), 421, 425, and 902(a)(5)); 31 U.S.C. 
3720A; 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).

    2. Section 404.942 is amended by revising paragraph (g), to read as 
follows:


Sec. 404.942  Prehearing proceedings and decisions by attorney 
advisors.

* * * * *
    (g) Sunset provision. The provisions of this section will no longer 
be effective on July 1, 1998, unless they are extended by the 
Commissioner of Social Security by publication of a final rule in the 
Federal Register.

PART 416--SUPPLEMENTAL SECURITY INCOME FOR THE AGED, BLIND, AND 
DISABLED

    1. The authority citation for subpart N continues to read as 
follows:

    Authority: Sec. 702(a)(5), 1631, and 1633 of the Social Security 
Act (42 U.S.C. 902(a)(5), 1383, and 1383b).

    2. Section 416.1442 is amended by revising paragraph (g), to read 
as follows:

[[Page 35075]]

Sec. 416.1442  Prehearing proceedings and decisions by attorney 
advisors.

* * * * *
    (g) Sunset provision. The provisions of this section will no longer 
be effective on July 1, 1998, unless they are extended by the 
Commissioner of Social Security by publication of a final rule in the 
Federal Register.

[FR Doc. 97-16962 Filed 6-27-97; 8:45 am]
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