[Federal Register Volume 73, Number 218 (Monday, November 10, 2008)]
[Rules and Regulations]
[Pages 66520-66522]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-26680]


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SOCIAL SECURITY ADMINISTRATION

20 CFR Parts 404 and 416

[Docket No. SSA 2008-0007]
RIN 0960-AG70


Representative Payment Under Titles II, VIII and XVI of the 
Social Security Act

AGENCY: Social Security Administration.

ACTION: Final rule.

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SUMMARY: We are amending our rules governing how we investigate 
representative payee applicants. Under these rules, any payee who 
previously satisfied the payee investigation criteria, including a 
face-to-face interview, and currently serves as a payee generally need 
not appear for another face-to-face interview when subsequently 
applying to become a payee unless we determine within our discretion, 
that a new face-to-face interview is necessary. The payee applicant 
would still be required to satisfy the rest of the investigation 
process as set forth in the regulations. Reducing the number of 
subsequent face-to-face interviews of payee applicants will streamline 
our representative payee application process, allowing payee applicants 
to become qualified more quickly when they already serve as a payee. 
This rule also will expedite payment of benefits in certain 
representative payee situations and reduce the burden on our field 
office employees by eliminating the necessity of interviewing such 
payee applicants.

DATES: This rule will be effective on December 10, 2008.

FOR FURTHER INFORMATION CONTACT: Jerome Albanese, Office of 
Regulations, Social Security Administration, 6401 Security Boulevard, 
Baltimore, MD 21235-6401, (404) 562-1024, for information about this 
notice. 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.

Background

    We select a representative payee for certain persons eligible for 
Social Security benefits under title II of the Social Security Act (the 
Act), special veterans benefits (SVB) under title VIII of the Act, or 
supplemental security income under title XVI of the Act. See sections 
205(j), 807, and 1631(a)(2) of the Act. We select a representative 
payee if we believe that payment through a payee rather than direct 
payment of benefits is in the interest of that beneficiary. Subpart U 
of part 404, subpart F of part 408, and subpart F of part 416 of our 
regulations explain the procedures we follow when determining whether 
to make representative payment and in selecting a representative payee 
under the title II, VIII and XVI programs.
    Our current rules at 20 CFR 404.2024 and 416.624 require that, 
before selecting an individual or organization to act as a person's 
representative payee, we will investigate the payee applicant to 
determine the applicant's suitability. Our rule at Sec.  408.624 adopts 
these investigatory requirements for SVBs by cross-reference to Sec.  
404.2024. See sections 205(j)(2), 807(b), and 1631(a)(2)(B) of the Act.
    The Act states that to the extent practicable, an investigation 
shall include a face-to-face interview with a payee applicant. See 
sections 205(j)(2)(A)(i), 807(b)(1)(A), and 1631(a)(2)(B)(i)(I). Based 
on this authority, our current rules at Sec. Sec.  404.2024 and 416.624 
indicate that we generally conduct a face-to-face interview with a 
payee applicant each time they file to become a payee, regardless of 
whether the payee has previously satisfied the investigation criteria 
and participated in a face-to-face interview.
    The requirement for holding a face-to-face interview may be waived 
only if conducting the interview is impracticable and would cause undue 
hardship for the payee applicant such as when a payee applicant would 
have to travel a great distance to the field office. Our current rules 
also indicate that we may decide it is impracticable to require 
subsequent face-to-face interviews for organizational payees that are 
known by our field office as suitable payees. We base this decision on 
the organization's past performance, recent contacts, and the 
organization's knowledge of and compliance with our reporting 
requirements.

Explanation of Changes

    With these final rules, we are eliminating the requirement that we 
conduct a face-to-face interview before selecting an individual or 
organization to be a representative payee if we have already conducted 
a face-to-face interview with that payee and the payee is qualified and 
currently acting as a payee. However, we retain discretionary authority 
to require a subsequent face-to-face interview of any payee applicant. 
We are revising our rules in Sec. Sec.  404.2024(b) and 416.624(b) to 
accomplish these changes.
    We also have added a new paragraph (c), ``Impracticable,'' to 
Sec. Sec.  404.2024 and 416.624. This new paragraph contains the first 
three sentences of current Sec. Sec.  404.2024(b) and 416.624(b), with 
editorial changes. We are not making substantive changes to this text.

Public Comment

    In the notice of proposed rulemaking we published in the Federal 
Register at 73 FR 12923 (March 11, 2008), we provided the public a 60-
day period within which to comment on the proposed changes. That 
comment period ended on May 12, 2008. We received one comment, from an 
individual who opposed the proposed changes.
    Comment: The commenter noted that because the representative 
payment program removes the beneficiary's right to manage his own 
benefit payments, we must act with extreme care when determining the 
need for a payee and in selecting the person or organization that would 
best serve as a payee. The commenter believed that in order to protect 
beneficiary rights, we should require all payee applicants to undergo a 
face-to-face interview every time they apply to be a payee. 
Accordingly, the commenter asked that we withdraw our proposal to 
eliminate such a

[[Page 66521]]

requirement. In the alternative, the commenter suggested that if we 
adopt these changes, we should consider reviewing the payee's 
activities with regard to other beneficiaries before waiving subsequent 
face-to-face interviews.
    Response: Although we share the commenter's concern that payees 
must manage benefits properly, we do not accept the commenter's 
suggestion to withdraw this rule. Under our current rules, there are 
nine criteria that must be met before selecting an individual or 
organization to act as a representative payee. See Sec. Sec.  
404.2024(a) and 416.624(a). Eight of these criteria remain unchanged. 
We are changing only our requirement regarding subsequent face-to-face 
interviews for payees who previously satisfied all of our criteria, 
including a face-to-face interview, and are qualified and currently 
acting as payees.
    Our rules regarding recovery of misused benefits and potential 
civil monetary penalties remain unchanged and will continue to protect 
beneficiaries from payee misuse of benefits. As an added protection, we 
also retain the discretion to perform a subsequent face-to-face 
interview if we believe one is necessary. Our final rules specifically 
note that we base the decision concerning the necessity of a subsequent 
face-to-face interview on the payee's past performance and the payee's 
knowledge of and compliance with our reporting requirements. Because 
the final rules provide that we look at the payee's past performance, 
they address the commenter's concern that we review the payee's 
activities with regard to other beneficiaries prior to waiving a 
subsequent face-to-face interview. Additionally, our existing rules at 
Sec. Sec.  404.2024(a)(5) and 416.624(a)(5) require that we determine 
whether the payee applicant has previously served as a representative 
payee and whether any previous appointment as a payee was terminated 
for misuse. Thus, we made no changes from the rules we proposed.

Regulatory Procedures

Executive Order 12866, as Amended

    The Office of Management and Budget (OMB) determined that the final 
rules meet the criteria for a significant regulatory action under 
Executive Order 12866, as amended. Thus, OMB reviewed these final 
rules.

Regulatory Flexibility Act

    We certify that these final rules will not have a significant 
economic impact on a substantial number of small entities as 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 final rules impose no reporting or recordkeeping requirements 
subject to OMB clearance.

(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; 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; 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 (SSI).

    Dated: August 18, 2008.
Michael J. Astrue,
Commissioner of Social Security.

0
For the reasons set out in the preamble, we amend subpart U of part 404 
and subpart F 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 U--[Amended]

0
1. The authority citation for subpart U continues to read as follows:

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

0
2. Amend Sec.  404.2024 by revising paragraphs (a)(1) and (b) and by 
adding new paragraph (c) as follows:


Sec.  404.2024  How do we investigate a representative payee applicant?

* * * * *
    (a) * * *
    (1) Conduct a face-to-face interview with the payee applicant 
unless it is impracticable as explained in paragraph (c) of this 
section.
* * * * *
    (b) Subsequent face-to-face interviews. After holding a face-to-
face interview with a payee applicant, subsequent face-to-face 
interviews are not required if that applicant continues to be qualified 
and currently is acting as a payee, unless we determine, within our 
discretion, that a new face-to-face interview is necessary. We base 
this decision on the payee's past performance and knowledge of and 
compliance with our reporting requirements.
    (c) Impracticable. We may consider a face-to-face interview 
impracticable if it would cause the payee applicant undue hardship. For 
example, the payee applicant would have to travel a great distance to 
the field office. In this situation, we may conduct the investigation 
to determine the payee applicant's suitability to serve as a 
representative payee without a face-to-face interview.

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

Subpart F--[Amended]

0
1. The authority citation for subpart F continues to read as follows:

    Authority: Secs. 702(a)(5), 1631 (a)(2) and (d)(1) of the Social 
Security Act (42 U.S.C. 902(a)(5) and 1383 (a)(2) and (d)(1)).


0
2. Amend Sec.  416.624 by revising paragraphs (a)(1) and (b) and by 
adding new paragraph (c) as follows:


Sec.  416.624  How do we investigate a representative payee applicant?

* * * * *
    (a) * * *
    (1) Conduct a face-to-face interview with the payee applicant 
unless it is impracticable as explained in paragraph (c) of this 
section.
* * * * *
    (b) Subsequent face-to-face interviews. After holding a face-to-
face interview with a payee applicant, subsequent face-to-face 
interviews are not required if that applicant continues to be qualified 
and currently is acting as a payee, unless we determine, within our 
discretion, that a new face-to-face interview is necessary. We base 
this decision on the payee's past performance and knowledge of and 
compliance with our reporting requirements.
    (c) Impracticable. We may consider a face-to-face interview 
impracticable if it would cause the payee applicant undue hardship. For 
example, the payee applicant would have to travel a great distance to 
the field office. In this situation, we may conduct the investigation 
to determine the payee applicant's suitability to serve as a

[[Page 66522]]

representative payee without a face-to-face interview.

[FR Doc. E8-26680 Filed 11-7-08; 8:45 am]
BILLING CODE 4191-02-P