[Federal Register Volume 70, Number 70 (Wednesday, April 13, 2005)]
[Proposed Rules]
[Pages 19361-19366]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-7353]


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SOCIAL SECURITY ADMINISTRATION

20 CFR Parts 404 and 416

[Regulation Nos. 4 and 16]
RIN 0960-AG15


Representation of Parties; Recognition, Disqualification, and 
Reinstatement of Representative

AGENCY: Social Security Administration.

ACTION: Proposed rules.

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SUMMARY: We propose to revise our regulations to identify additional 
bases upon which we may bring charges to disqualify an individual from 
acting as a representative before the Social Security Administration 
(SSA), and to set forth the conditions under which we will reinstate an 
individual whom we have disqualified as a representative because the 
individual collected or received, and retains, a fee in excess of the 
amount we authorized. These proposed rules revise our regulations on 
the representation of parties to implement section 205 of the Social 
Security Protection Act of 2004 (SSPA) and to make additional changes 
in these regulations that relate to the changes required by this 
legislation. The rules also propose three technical changes in our 
regulations on the representation of parties.
DATES: To be sure that we consider your comments, we must receive them 
by June 13, 2005.

ADDRESSES: You may give us your comments by: using our Internet site 
facility (i.e., Social Security Online) at http://policy.ssa.gov/pnpublic.nsf/LawsRegs or the Federal eRulemaking Portal at http://www.regulations.gov; e-mail to [email protected]; telefax to (410) 
966-2830; or letter to the Commissioner of Social Security, P.O. Box 
17703, Baltimore, Maryland 21235-7703. You may also deliver them to the 
Office of Regulations, Social Security Administration, 100 Altmeyer 
Building, 6401 Security Boulevard, Baltimore, Maryland 21235-6401, 
between 8 a.m. and 4:30 p.m. on regular business days. Comments are 
posted on our Internet site at http://policy.ssa.gov/pnpublic.nsf/LawsRegs, or you may inspect them on regular business days by making 
arrangements with the contact person shown in this preamble.

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. It is also available on the Internet site for SSA (i.e., 
Social Security Online) at http://policy.ssa.gov/pnpublic.nsf/LawsRegs.

FOR FURTHER INFORMATION CONTACT: Richard Bresnick, Social Insurance 
Specialist, Office of Regulations, Social Security Administration, 100 
Altmeyer Building, 6401 Security Boulevard, Baltimore, MD 21235-6401, 
(410) 965-1758 or TTY (410) 966-5609. 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:

Who Is Permitted to Represent Claimants Before SSA?

    Section 206(a)(1) of the Social Security Act (the Act) provides 
that attorneys and non-attorneys may represent claimants before SSA. 
Prior to enactment of the SSPA, Public Law 108-203, on March 2, 2004, 
section 206(a)(1) specified that ``[a]n attorney in good standing who 
is admitted to practice before the highest court of the State, 
Territory, District, or insular possession of his residence or before 
the Supreme Court of the United States or the inferior Federal courts' 
is entitled to represent claimants before SSA. Section 206(a)(1) also 
authorized SSA to prescribe rules and regulations governing recognition 
of individuals other than attorneys.
    Section 205 of the SSPA amended section 206(a)(1) of the Act with 
respect to the recognition and disqualification of certain attorneys as 
claimants' representatives. As amended, section 206(a)(1) provides that 
the Commissioner of Social Security (the Commissioner), after due 
notice and opportunity for hearing, may refuse to recognize as a 
representative, and may disqualify a representative already recognized, 
any attorney who has been disbarred or suspended from any court or bar 
to which he or she was previously admitted to practice or who has been 
disqualified from participating in or appearing before any Federal 
program or agency. Section 206(a)(1) as amended further provides that 
the Commissioner may also, after due notice and opportunity for 
hearing, refuse to recognize, and may disqualify, as a non-attorney 
representative, any attorney who has been disbarred or suspended

[[Page 19362]]

from any court or bar to which he or she was previously admitted to 
practice.
    Section 205 of the SSPA also amended section 206(a)(1) of the Act 
with respect to reinstatement of certain individuals (whether or not 
they are attorneys) who have been disqualified or suspended from 
appearing before SSA. Under the Act as amended, a representative who 
has been disqualified or suspended from appearing before SSA as a 
result of collecting or receiving a fee in excess of the amount 
authorized shall be barred from appearing before SSA as a 
representative until full restitution is made to the claimant and, 
thereafter, may be considered for reinstatement only under such rules 
as the Commissioner may prescribe.

Proposed Changes

    As amended, section 206(a)(1) of the Act identifies certain 
specific bases upon which, after notice and opportunity for hearing, we 
may refuse to recognize an attorney as a representative or disqualify 
an attorney whom we have already recognized as a representative. We 
propose to implement these statutory provisions by revising our 
regulations at 20 CFR 404.1745 and 416.1545, which describe the 
circumstances in which we may file charges seeking to suspend or 
disqualify an individual from acting in a representational capacity 
before us. Specifically, we propose to revise these sections to expand 
the stated bases upon which we may file such charges to include those 
in which we have evidence that a representative has been, by reason of 
misconduct--
     Disbarred or suspended from any court or bar to which he 
or she was previously admitted to practice, or
     Disqualified from participating in or appearing before any 
Federal program or agency.
    Sections 404.1745 and 416.1545 as a whole pertain to our bringing 
of charges that may seek either to suspend or to disqualify a 
representative. As we explain below in connection with changes we are 
proposing in our regulations dealing with the decisions hearing 
officers make on charges brought against representatives (20 CFR 
404.1770 and 416.1570), disqualification will be the sole sanction 
available if the charges against a representative are sustained because 
the representative has been, by reasons of misconduct, disbarred or 
suspended from any court or bar to which he or she was previously 
admitted to practice or disqualified from participating in or appearing 
before any Federal program or agency.
    Sections 404.1745 and 416.1545, as they currently exist and as they 
are proposed for revision, apply with respect to both attorney and non-
attorney representatives. Under the proposed regulations, we will have 
authority to bring charges to disqualify a non-attorney representative 
if we have evidence that the representative has been, by reason of 
misconduct--
     Disbarred or suspended from any court or bar to which he 
or she was previously admitted to practice, or
     Disqualified from participating in or appearing before any 
Federal program or agency.
    As amended by the SSPA, section 206(a)(1) of the Act specifically 
provides that, after providing due notice and an opportunity for 
hearing, SSA ``may refuse to recognize, and may disqualify, as a non-
attorney representative any attorney who has been disbarred or 
suspended from any court or bar to which he or she was previously 
admitted to practice.'' Thus, the Act provides that disbarment or 
suspension by a court or bar may be a basis for disqualifying an 
individual from representational functions before SSA irrespective of 
whether the individual seeks to represent individuals as an attorney or 
non-attorney. Although it provides that we may refuse to recognize or 
disqualify an attorney who has been disqualified from participating in 
or appearing before a Federal program or agency, the Act as amended 
does not also state that we may refuse to recognize a non-attorney (or 
former attorney) who has been disqualified from participating in or 
appearing before any Federal program or agency. We are proposing to 
make disqualification from participating in or appearing before any 
Federal program or agency a basis for bringing charges to disqualify a 
non-attorney in order to make our rules, with respect to recognition of 
non-attorneys, consistent with our rules for attorneys. By making this 
a basis for bringing charges against non-attorneys as well as 
attorneys, we can ensure that the additional protections provided by 
the SSPA are available for all claimants, regardless of whether their 
representatives are attorneys or non-attorneys.
    We are proposing this rule regarding non-attorney representatives 
under the general authority of the Commissioner, as set forth in 
section 206(a)(1) of the Act, to prescribe rules and regulations 
``governing the recognition'' of non-attorney representatives and to 
require such representatives to ``show that they are of good character 
and in good repute'' and capable of providing claimants valuable 
services. Under the proposed rule, if we determine, after providing due 
notice and opportunity for a hearing, that a non-attorney individual 
has been disqualified from participating in or appearing before a 
Federal program or agency for reasons of misconduct, we will disqualify 
the individual as having failed to show that he or she is of good 
character and in good repute and will thereafter, absent reinstatement 
in accordance with the provisions of 20 CFR 404.1799 and 416.1599, 
refuse to recognize the individual as a representative. The effect of 
this rule is to require a non-attorney whom we charge with having been 
disqualified from participating in or appearing before a Federal 
program or agency for reasons of misconduct to show, in accordance with 
our rules at 20 CFR 404.1750ff. and 416.1550ff. on hearing and deciding 
charges against representatives, that he or she has not been 
disqualified from participating in or appearing before a Federal 
program or agency for reasons of misconduct and is thus, in that 
respect, of good character and in good repute.
    This rule codifies a practice we currently apply under Program 
Operations Manual System section GN 03970.011, which sets forth a non-
exclusive list of circumstances in which we may bring charges (under 
Sec. Sec.  404.1745 and 416.1545) to suspend or disqualify a non-
attorney from practice before us for lack of good character and 
reputation. We believe we should codify that disqualification by a 
Federal program or agency may be a basis for bringing charges against a 
non-attorney representative because the Act as amended by the SSPA is 
silent on that issue, even though it provides that we may bring charges 
against a non-attorney for disbarment or suspension by a court or bar. 
Our codification of this particular basis for bringing charges based on 
a lack of good character and reputation does not limit our discretion 
to bring charges against a non-attorney representative, as we do at 
present, whenever we believe that we have evidence that a non-attorney 
fails to meet the qualification requirement concerning good character 
and reputation included in the provisions of Sec. Sec.  404.1705 and 
416.1505 on ``Who may be your representative.''
    Under Sec. Sec.  404.1745 and 416.1545 as proposed for revision, we 
have discretion in determining whether to bring charges when we have 
evidence that an individual has been disbarred, suspended or 
disqualified by a court, bar, Federal program or Federal agency. One 
factor we will consider in determining whether to bring charges is 
whether the individual has been

[[Page 19363]]

reinstated by the court, bar, Federal program or Federal agency that 
disbarred, suspended or disqualified the individual. Reinstatement will 
not necessarily preclude the bringing of charges. Further, we may also 
bring charges if the disbarment, suspension or disqualification by a 
court, bar, Federal program or agency became final prior to the 
enactment of section 205 of the SSPA.
    Under the Act as amended by the SSPA, we have discretionary 
authority to refuse to permit an individual to function as a 
representative before us because that individual has been disbarred, 
suspended or disqualified by a court, bar or Federal agency. To 
implement that authority, we propose to revise Sec. Sec.  404.1770 and 
416.1570 to explain that in deciding whether to impose that sanction we 
will consider the reasons for the disbarment, suspension, or 
disqualification action of the court, bar or Federal agency and will 
not disqualify the individual from acting as a representative before 
SSA if the court, bar, or Federal agency action was taken for reasons 
unrelated to misconduct (e.g., solely for administrative reasons such 
as failure to pay dues or failure to complete continuing legal 
education requirements). Sections 404.1770 and 416.1570 as proposed for 
revision also explain that this exception to disqualification will not 
apply if the administrative action was taken by the court, bar or 
Federal program or agency in lieu of disciplinary proceedings (e.g., 
the acceptance of a voluntary resignation pending disciplinary action), 
and that although we will consider the reasons for the disbarment, 
suspension, or disqualification action in determining whether to 
disqualify an individual from appearing before us as a representative, 
we will not re-examine or revise the factual or legal conclusions that 
led to the disbarment, suspension or disqualification action.
    As proposed for revision, Sec. Sec.  404.1770 and 416.1570 will 
also explain what we mean by the terms ``disqualified,'' ``Federal 
program,'' and ``Federal agency'' for the purposes of deciding whether 
an individual has been disqualified from participating in or appearing 
before any Federal program or agency. For that purpose, 
``disqualified'' will refer to any action that prohibits an individual 
from participating in or appearing before the program or agency, 
regardless of how long the prohibition lasts or the specific 
terminology used. The program or agency need not use the term 
``disqualified'' to describe the action. For example, an agency may use 
analogous terms such as ``suspend,'' ``decertify,'' ``exclude,'' 
``expel,'' or ``debar'' to describe the individual's disqualification 
from participating in the program or the agency. For the purposes of 
deciding whether an individual has been disqualified from participating 
in or appearing before any Federal program or agency, ``Federal 
program'' will refer to any program established by an Act of Congress 
or administered by a Federal agency and ``Federal agency'' will refer 
to any authority of the executive branch of the Government of the 
United States.
    As previously noted, we also propose to revise Sec. Sec.  404.1770 
and 416.1570 to provide that disqualification will be the only sanction 
that may be applied if charges against a representative (attorney or 
non-attorney) are sustained because the representative has been, by 
reason of misconduct, disbarred or suspended from any court or bar to 
which he or she was previously admitted to practice or disqualified 
from participating in or appearing before any Federal program or 
agency. The Act, as amended by the SSPA, states only that we may 
``refuse to recognize'' and, where recognition has already occurred, 
``disqualify'' an individual who has been disbarred, suspended or 
disqualified by a court, bar or Federal program or agency. Under our 
rules on reinstatement, a suspended representative is automatically 
reinstated at the end of the period of suspension (20 CFR 404.1797 and 
416.1597). By contrast, under Sec. Sec.  404.1799 and 416.1599 of our 
rules, if an individual has been disqualified, reinstatement can occur 
only if the individual asks the Appeals Council of our Office of 
Hearings and Appeals for permission to serve as a representative again 
and the Appeals Council decides that it is reasonable to expect that 
the individual will, in the future, act in accordance with the 
provisions of section 206(a) of the Act and our rules and regulations. 
We cannot ensure that reinstatement is warranted on that basis in cases 
in which the sanction imposed by us is a suspension. Based on the 
above, we believe that disqualification is the only appropriate 
sanction where charges are sustained because we find that a 
representative has been, by reason of misconduct, disbarred, suspended 
or disqualified by a court, bar or Federal program or agency.
    We also propose to revise Sec. Sec.  404.1770 and 416.1570 to state 
that, if the charges against the representative are sustained because 
the representative has collected or received, and retains, a fee for 
representational services in excess of the amount authorized, 
disqualification will be the only sanction available. This change is 
intended to ensure that such a representative is barred from appearing 
before SSA until full restitution has been made, as required by the Act 
as amended by the SSPA. The proposed rule recognizes that restitution 
is required only where the representative has not already made full 
restitution at the time at which we sustain charges of collecting or 
receiving an unauthorized fee. The representative ``retains'' an 
unauthorized fee that has been collected or received if full 
restitution has not been made for any reason. If a representative makes 
full restitution before the charges against the representative have 
been sustained, we are not precluded from finding that the 
representative has charged, collected, or retained a fee in violation 
of Sec. Sec.  404.1740(c)(2) and/or 416.1540(c)(2), and suspending or 
disqualifying that representative from practice.
    We propose to revise 20 CFR 404.1790 and 416.1590, which deal with 
decisions made by the Appeals Council where a party to the hearing 
requests review of a hearing officer's decision in a sanction case, to 
conform these sections to the changes proposed in Sec. Sec.  404.1770 
and 416.1570 to limit the sanction available to disqualification where 
charges are sustained either because the representative has been, by 
reason of misconduct, disbarred or suspended from any court or bar to 
which he or she 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 in excess of the amount authorized. As proposed for 
revision, Sec. Sec.  404.1790 and 416.1590 will provide that the 
Appeals Council may not modify a hearing officer's decision to impose a 
suspension, instead of a disqualification, when disqualification is the 
only sanction available under Sec. Sec.  404.1770 and 416.1570.
    We also propose to revise our rules on reinstatement in Sec. Sec.  
404.1799 and 416.1599 to provide that, if the representative has been 
disqualified because he or she was disbarred or suspended from a court 
or bar, the Appeals Council will grant reinstatement to the individual 
as a representative only if the individual not only satisfies the 
Council with respect to the required expectation of future behavior, 
but also shows that he or she has been admitted (or readmitted) to and 
is in good standing with the court or bar from which he or she had been 
disbarred or suspended. This provision ensures that an individual will 
not be reinstated as a representative unless the individual can satisfy 
the court or bar

[[Page 19364]]

that disbarred or suspended the individual that he or she is fit to act 
in a representational capacity again.
    We also propose to include in Sec. Sec.  404.1799 and 416.1599 a 
similar rule for reinstatement of a representative who has been 
disqualified because he or she was disqualified from participating in 
or appearing before any Federal program or agency. This rule will 
provide that such an individual must not only satisfy the Appeals 
Council with respect to the required expectation of future behavior, 
but also show that he or she is once again qualified to participate in 
or appear before that Federal program or agency.
    We propose further to revise Sec. Sec.  404.1799 and 416.1599 to 
state that, if a representative has been disqualified as a result of 
collecting or receiving, and retaining, a fee for representational 
services in excess of the amount authorized, full restitution of the 
excess fee must be made before the person may be considered for 
reinstatement. This proposed change will implement the provision of the 
SSPA requiring us to bar from appearing before us, until full 
restitution is made, a representative who has been disqualified or 
suspended from appearing before us as a result of collecting or 
receiving a fee in excess of the amount authorized.

Other Proposed Changes

    We propose to make a technical change to 20 CFR 404.1750(e)(2) and 
416.1550(e)(2), which explain how a representative must answer a notice 
containing a statement of charges. Our current rules direct that the 
answer be filed with Special Counsel Staff in SSA's Office of Hearings 
and Appeals. This component no longer exists. (See 68 FR 59231 and 68 
FR 61240.) The notice containing a statement of charges provides 
specific instructions on how and where to file an answer. Therefore, we 
propose to revise this rule to reflect that the representative must 
file the answer with SSA, at the address specified in the notice, 
within the 30-day time period.
    We also propose to make a technical change to 20 CFR 404.1755 and 
416.1555 to specify that the Deputy Commissioner for Disability and 
Income Security Programs, or his or her designee is, as the official 
who decides to initiate a representative sanction proceeding, also the 
official who may withdraw charges against a representative. This change 
is needed because questions have arisen about who in the agency has 
authority to withdraw charges.
    Finally, we also propose to make a technical change to 20 CFR 
404.1765 and 416.1565 to state that the Office of the General Counsel 
will represent the Deputy Commissioner for Disability and Income 
Security Programs in all representative sanction proceedings, including 
those involving a request for reinstatement by a suspended or 
disqualified individual. This amendment is necessary because the former 
Special Counsel Staff previously represented the Deputy Commissioner. 
(See 56 FR 24129.)

Clarity of These Proposed Rules

    Executive Order 12866, as amended by Executive Order 13258, 
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 these rules 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?
     What else could we do to make the rules easier to 
understand?

Regulatory Procedures

Executive Order 12866

    We have consulted with the Office of Management and Budget (OMB) 
and determined that these rules meet the requirements for a significant 
regulatory action under Executive Order 12866, as amended by Executive 
Order 13258. Thus, they were subject to OMB review.

Regulatory Flexibility Act

    We certify that these proposed 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

    The proposed rules contain information collection activities at 20 
CFR 404.1750(e)(2) and 416.1550(e)(2). However, the activities are 
exempt under 44 U.S.C. 3518(c) from the clearance requirements of 44 
U.S.C. 3507 as amended by section 2 of Public Law 104-13 (May 22, 
1995), the Paperwork Reduction Act of 1995.

(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.)

List of Subjects

20 CFR Part 404

    Administrative practice and procedure, Blind, 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, Reporting and recordkeeping 
requirements, Supplemental Security Income.

    Dated: March 8, 2005.
Jo Anne B. Barnhart,
Commissioner of Social Security.

    For the reasons set out in the preamble, we propose to amend 
subpart R of part 404 and subpart O of part 416 of chapter III of title 
20 of the Code of Federal Regulations as set forth below:

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

Subpart R--[Amended]

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

    Authority: Secs. 205(a), 206, and 702(a)(5) of the Social 
Security Act (42 U.S.C. 405(a), 406, and 902(a)(5)).

    2. Amend Sec.  404.1745 by removing the word ``or'' at the end of 
paragraph (b), changing the period to a semicolon at the end of 
paragraph (c), and adding new paragraphs (d) and (e) to read as 
follows:


Sec.  404.1745  Violation of our requirements, rules, or standards.

* * * * *
    (d) Has been, by reason of misconduct, disbarred or suspended from 
any bar or court to which he or she was previously admitted to practice 
(see Sec.  404.1770(a)); or
    (e) Has been, by reason of misconduct, disqualified from 
participating in or appearing before any Federal program or agency (see 
Sec.  404.1770(a)).
    3. Amend Sec.  404.1750 by revising paragraph (e)(2) to read as 
follows:


Sec.  404.1750  Notice of charges against a representative.

* * * * *
    (e) * * *
    (2) File the answer with the Social Security Administration, at the 
address

[[Page 19365]]

specified on the notice, within the 30-day time period.
* * * * *
    4. Amend Sec.  404.1755 by revising the first sentence to read as 
follows:


Sec.  404.1755  Withdrawing charges against a representative.

    The Deputy Commissioner for Disability and Income Security Programs 
(or other official the Commissioner may designate), or his or her 
designee, may withdraw charges against a representative. * * *
    5. Amend Sec.  404.1765(l) by adding a second sentence, to read as 
follows:


Sec.  404.1765  Hearing on charges.

* * * * *
    (l) Representation. * * * The Deputy Commissioner for Disability 
and Income Security Programs (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.
* * * * *
    6. Amend Sec.  404.1770 by redesignating existing paragraphs (a)(2) 
and (a)(3) as (a)(3) and (a)(4), by adding new paragraph (a)(2), and 
revising redesignated paragraph (a)(3)(ii), to read as follows:


Sec.  404.1770  Decision by hearing officer.

    (a) * * *
    (2) In deciding whether an individual 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 individual from acting as a representative before SSA. 
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 an individual should be disqualified 
from acting as a representative before us, the hearing officer will not 
re-examine or revise the factual or legal conclusions that led to the 
disbarment, suspension or disqualification. For purposes of determining 
whether an individual has been, by reason of misconduct, disqualified 
from participating in or appearing before any Federal program or 
agency--
    (i) Disqualified refers to any action that prohibits an individual 
from participating in or appearing before a Federal program or agency, 
regardless of how long the prohibition lasts or the specific 
terminology used.
    (ii) Federal program refers to any program established by an Act of 
Congress or administered by a Federal agency.
    (iii) Federal agency refers to any authority of the executive 
branch of the Government of the United States.
    (3) * * *
    (ii) Disqualify the representative from acting as a representative 
in dealings with us until he or she may be reinstated under Sec.  
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 he or she 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.
* * * * *
    7. Amend Sec.  404.1790 by revising paragraph (b) to read as 
follows:


Sec.  404.1790  Appeals Council's decision.

* * * * *
    (b) The Appeals Council, in changing a hearing officer's decision 
to suspend a representative for a specified period, shall in no event 
reduce the period of suspension to less than 1 year. In modifying a 
hearing officer's decision to disqualify a representative, the Appeals 
Council shall in no event impose a period of suspension of less than 1 
year. Further, the Appeals Council shall in no event impose a 
suspension when disqualification is the sole sanction available in 
accordance with Sec.  404.1770(a)(3)(ii).
* * * * *
    8. Amend Sec.  404.1799 by revising paragraph (d) to read as 
follows:


Sec.  404.1799  Reinstatement after suspension or disqualification--
period of suspension not expired.

* * * * *
    (d)(1) The Appeals Council shall not grant the request unless it is 
reasonably satisfied that the person will in the future act according 
to the provisions of section 206(a) of the Act, and to our rules and 
regulations.
    (2) If a person was disqualified because he or she 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 he or she has been admitted (or 
readmitted) to and is in good standing with the court or bar from which 
he or she had been disbarred or suspended.
    (3) If a person was disqualified because he or she had been 
disqualified from participating in or appearing before a Federal 
program or 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 he or she is now 
qualified to participate in or appear before that Federal program or 
agency.
    (4) If the person was disqualified as a result of collecting or 
receiving, and retaining, a fee for representational services in excess 
of the amount authorized, the Appeals Council will grant the request 
only if the criterion in paragraph (d)(1) of this section is met and 
the disqualified person shows that full restitution has been made.
* * * * *

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

Subpart O--[Amended]

    9. The authority citation for subpart O of part 416 continues to 
read as follows:

    Authority: Secs. 702(a)(5) and 1631(d) of the Social Security 
Act (42 U.S.C. 902(a)(5) and 1383(d)).

    10. Amend Sec.  416.1545 by removing the word ``or'' at the end of 
paragraph (b), changing the period to a semicolon at the end of 
paragraph (c), and adding new paragraphs (d) and (e) to read as 
follows:


Sec.  416.1545  Violation of our requirements, rules, or standards.

* * * * *
    (d) Has been, by reason of misconduct, disbarred or suspended from 
any bar or court to which he or she was previously admitted to practice 
(see Sec.  416.1570(a)); or
    (e) Has been, by reason of misconduct, disqualified from 
participating in or appearing before any Federal program or agency (see 
Sec.  416.1570(a)).
    11. Amend Sec.  416.1550 by revising paragraph (e)(2) to read as 
follows:


Sec.  416.1550  Notice of charges against a representative.

* * * * *
    (e) * * *
    (2) File the answer with the Social Security Administration, at the 
address

[[Page 19366]]

specified on the notice, within the 30-day time period.
* * * * *
    12. Amend Sec.  416.1555 by revising the first sentence to read as 
follows:


Sec.  416.1555  Withdrawing charges against a representative.

    The Deputy Commissioner for Disability and Income Security Programs 
(or other official the Commissioner may designate), or his or her 
designee, may withdraw charges against a representative. * * *
    13. Amend Sec.  416.1565(l) by adding a second sentence, to read as 
follows:


Sec.  416.1565  Hearing on charges.

* * * * *
    (l) Representation. * * * The Deputy Commissioner for Disability 
and Income Security Programs (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.
* * * * *
    14. Amend Sec.  416.1570 by redesignating existing paragraphs 
(a)(2) and (a)(3) as (a)(3) and (a)(4), by adding new paragraph (a)(2), 
and revising redesignated paragraph (a)(3)(ii), to read as follows:


Sec.  416.1570  Decision by hearing officer.

    (a) * * *
    (2) In deciding whether an individual 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 individual from acting as a representative before SSA. 
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 an individual should be disqualified 
from acting as a representative before us, the hearing officer will not 
re-examine or revise the factual or legal conclusions that led to the 
disbarment, suspension or disqualification. For purposes of determining 
whether an individual has been, by reason of misconduct, disqualified 
from participating in or appearing before any Federal program or 
agency--
    (i) Disqualified refers to any action that prohibits an individual 
from participating in or appearing before a Federal program or agency, 
regardless of how long the prohibition lasts or the specific 
terminology used.
    (ii) Federal program refers to any program established by an Act of 
Congress or administered by a Federal agency.
    (iii) Federal agency refers to any authority of the executive 
branch of the Government of the United States.
    (3) * * *
    (ii) Disqualify the representative from acting as a representative 
in dealings with us until he or she may be reinstated under Sec.  
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 he or she 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.
* * * * *
    15. Amend Sec.  416.1590 by revising paragraph (b) to read as 
follows:


Sec.  416.1590  Appeals Council's decision.

* * * * *
    (b) The Appeals Council, in changing a hearing officer's decision 
to suspend a representative for a specified period, shall in no event 
reduce the period of suspension to less than 1 year. In modifying a 
hearing officer's decision to disqualify a representative, the Appeals 
Council shall in no event impose a period of suspension of less than 1 
year. Further, the Appeals Council shall in no event impose a 
suspension when disqualification is the sole sanction available in 
accordance with Sec.  416.1570(a)(3)(ii).
* * * * *
    16. Amend Sec.  416.1599 by revising paragraph (d) to read as 
follows:


Sec.  416.1599  Reinstatement after suspension or disqualification --
period of suspension not expired.

* * * * *
    (d)(1) The Appeals Council shall not grant the request unless it is 
reasonably satisfied that the person will in the future act according 
to the provisions of section 206(a) of the Act, and to our rules and 
regulations.
    (2) If a person was disqualified because he or she 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 he or she has been admitted (or 
readmitted) to and is in good standing with the court or bar from which 
he or she had been disbarred or suspended.
    (3) If a person was disqualified because he or she had been 
disqualified from participating in or appearing before a Federal 
program or 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 he or she is now 
qualified to participate in or appear before that Federal program or 
agency.
    (4) If the person was disqualified as a result of collecting or 
receiving, and retaining, a fee for representational services in excess 
of the amount authorized, the Appeals Council will grant the request 
only if the criterion in paragraph (d)(1) of this section is met and 
the disqualified person shows that full restitution has been made.
* * * * *
[FR Doc. 05-7353 Filed 4-12-05; 8:45 am]
BILLING CODE 4191-02-P