[Federal Register Volume 84, Number 228 (Tuesday, November 26, 2019)]
[Proposed Rules]
[Pages 65040-65044]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-25569]


=======================================================================
-----------------------------------------------------------------------

SOCIAL SECURITY ADMINISTRATION

20 CFR Parts 404, 408, and 416

[Docket No. SSA-2018-0028]
RIN 0960-AI33


Advance Designation of Representative Payees for Social Security 
Beneficiaries

AGENCY: Social Security Administration.

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: The Strengthening Protections for Social Security 
Beneficiaries Act of 2018 (Strengthening Protections Act) requires us 
to promulgate regulations specifying the information Social Security 
beneficiaries and applicants must provide to designate a representative 
payee in advance of our determination that the beneficiary needs a 
representative payee. We propose to revise our rules to satisfy this 
requirement, and to specify that we will allow individuals to designate 
in advance one or more potential representative payees. We also explain 
how we propose to consider an individual's advance designation when we 
select a representative payee.

DATES: To ensure that your comments are considered, we must receive 
them by no later than December 26, 2019.

ADDRESSES: You may submit comments by any one of three methods--
internet, fax, or mail. Do not submit the same comments multiple times 
or by more than one method. Regardless of which method you choose, 
please state that your comments refer to Docket No. SSA-2018-0028 so 
that we may associate your comments with the correct regulation.
    Caution: You should be careful to include in your comments only 
information that you wish to make publicly available. We strongly urge 
you not to include in your comments any personal information, such as 
Social Security numbers or medical information.
    1. Internet: We strongly recommend that you submit your comments 
via the internet. Please visit the Federal eRulemaking portal at http://www.regulations.gov. Use the Search function to find docket number 
SSA-2018-0028. The system will issue a tracking number to confirm your 
submission. You will not be able to view your comment immediately 
because we must post each comment manually. It may take up to a week 
for your comment to be viewable.
    2. Fax: Fax comments to (410) 966-2830.
    3. Mail: Address your comments to the Office of Regulations and 
Reports Clearance, Social Security Administration, 3100 West High Rise, 
6401 Security Boulevard, Baltimore, Maryland 21235-6401.
    Comments are available for public viewing on the Federal 
eRulemaking portal at http://www.regulations.gov or in person, during 
regular business hours, by arranging with the contact person identified 
below.

FOR FURTHER INFORMATION CONTACT: Peter Smith, Office of Income Security 
Programs, Social Security Administration, 6401 Security Boulevard, 
Baltimore, MD 21235-6401, (410) 966-3235. 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:

Background on Representative Payees

    A representative payee is a person or an organization that we 
select to receive and manage Social Security benefits, Special Veterans 
benefits, and Supplemental Security Income (SSI) payments on behalf of 
a beneficiary. Generally, beneficiaries have the right to receive their 
benefits directly and manage them independently. However, we may 
determine that a beneficiary is unable to manage or direct the 
management of benefit payments because of the beneficiary's mental or 
physical condition, or because of the beneficiary's age.\1\ In these 
cases, we appoint a representative payee when we believe it will serve 
the beneficiary's interest to receive benefits through a representative 
payee instead of receiving them directly.\2\
---------------------------------------------------------------------------

    \1\ See 42 U.S.C. 405(j)(1), 807(a), 1383(a)(2)(A)(ii); 20 CFR 
404.2001(b), 408.601(b), 416.601(b).
    \2\ See 20 CFR 404.2001(a), 20 CFR 408.601(a), and 20 CFR 
416.601(a).
---------------------------------------------------------------------------

    When we select a representative payee, we will choose the designee 
of the beneficiary's highest priority, provided that the designee is 
willing and able to serve, is not prohibited from serving,\3\ and 
supports the best interest of the beneficiary.\4\ It is important for 
us to select the best possible representative payee to ensure that the 
benefits are used for purposes in the best interest of the beneficiary 
and in accordance with other responsibilities and requirements 
discussed in our regulations.\5\
---------------------------------------------------------------------------

    \3\ See 20 CFR 404.2022 and 416.622.
    \4\ See 20 CFR 404.2020 and 416.620.
    \5\ See 20 CFR 404.2035, 408.635, and 416.635 and, generally, 20 
CFR part 404, subpart U, 20 CFR part 408, subpart F, and 20 CFR part 
416, subpart F.
---------------------------------------------------------------------------

Background on Section 201 of the Strengthening Protections Act

    President Trump signed the Strengthening Protections Act into law 
on April 13, 2018.\6\ Section 201 of that Act, ``Advance Designation of 
Representative Payees,'' amends section 205(j)(1) of the Social 
Security Act \7\ to allow for advance designation of representative 
payees. It also requires us to promulgate regulations specifying the 
information that an individual must provide to designate a 
representative payee in advance.
---------------------------------------------------------------------------

    \6\ https://www.congress.gov/bill/115th-congress/house-bill/4547.
    \7\ 42 U.S.C. 405(j)(1).
---------------------------------------------------------------------------

    Before we developed these proposed regulations, we hosted a 
National Disability Forum (NDF) on Advance Designation of 
Representative Payees, at which we received feedback from panelists 
with experience in fields relevant to our representative payee 
program.\8\ We considered this feedback in developing these proposed 
regulations.
---------------------------------------------------------------------------

    \8\ To view additional information and materials related to the 
NDF, including panelist biographies and audio of the morning and 
afternoon sessions, go to https://www.ssa.gov/ndf/ndf_outreach.htm#ht=tab10 and click on the tab for 10/30/2018.
---------------------------------------------------------------------------

Explanation of Advance Designation

    Section 201 of the Strengthening Protections Act establishes that 
individuals who are entitled to or applying for a benefit under title 
II, title VIII, or title XVI, and who have attained 18 years of age or 
are emancipated minors, are permitted to designate in advance one or 
more other individuals as a possible representative payee. We propose 
that these applicants or beneficiaries may designate one or more 
possible representative payees, provided that we have not determined 
the applicant or beneficiary is mentally or physically incapable of 
managing benefit payments, or that the applicant or beneficiary has not 
been found legally incompetent. Based on feedback we received at the 
NDF, these advance designations would not expire. Consistent with the 
Strengthening

[[Page 65041]]

Protections Act, we would only permit advance designations of 
individuals, not organizations.\9\
---------------------------------------------------------------------------

    \9\ See section 205(j)(1)(C)(ii) of the Act, as amended by the 
section 2(a) of the Strengthening Protections Act, 42 U.S.C. 
405(j)(1)(C)(ii).
---------------------------------------------------------------------------

    We propose that these individuals may designate possible 
representative payees in advance by providing us with the required 
information. This required information would include the name and 
telephone number of each advance designee and the priority order in 
which the individual would like us to consider the advance designees, 
if more than one are designated. Our current systems will allow for an 
applicant or beneficiary to designate up to three possible 
representative payees, however the relevant systems prevent us from 
receiving more than three designees at this time. Based on the feedback 
we received at the NDF, we also propose that an individual will have 
the option to identify the relationship of the advance designee to the 
individual. Further, we propose to collect and store the information 
provided and the date of the designation for recordkeeping purposes. We 
will store the information in a new system developed for this purpose. 
We would not collect the advance designee's Social Security number, 
which reflects preferences expressed during the panelist discussion at 
the NDF.
    We also propose to consider advance designees first when selecting 
a representative payee. When we determine that a representative payee 
is necessary,\10\ we would first review the advance designees 
previously identified by the individual (if any), in the order of 
priority established by the individual. However, the Strengthening 
Protections Act allows us to certify payments to another individual or 
organization if the advance designee is unwilling or unable to serve, 
if the payment of the benefits to the advance designee would not 
satisfy the requirements in section 205(j)(2) of the Social Security 
Act, or if other good cause exists to not appoint an advance 
designee.\11\ We would follow the established guidance set forth in our 
existing regulations to determine whether other good cause exists to 
appoint another representative payee who is not one of the advanced 
designees.\12\ If none of the individuals designated in advance by the 
individual are willing, able, or suitable to be a representative payee, 
we would then consider other potential representative payees by 
referring to our current established order of preference for 
representative payee selection.\13\
---------------------------------------------------------------------------

    \10\ See 20 CFR 404.2010 and 416.610 for when payment will be 
made to a representative payee.
    \11\ See section 205(j)(1)(C)(i)(II) of the Act, as amended by 
the section 2(a) of the Strengthening Protections Act, 42 U.S.C. 
405(j)(1)(C)(i)(II).
    \12\ See 20 CFR 404.2020, 404.2021, 416.620, and 416.621.
    \13\ See 20 CFR 404.2021 and 416.621
---------------------------------------------------------------------------

    Our proposed selection process aligns with the input we received at 
the NDF, which underlined the need for a robust evaluation of an 
advance designee during the selection process. Ensuring that we select 
a representative payee who would best serve the beneficiary's interest 
continues to be our primary concern.
    In addition to considering advance designees during the initial 
representative payee selection, we also propose considering advance 
designees when we select a subsequent representative payee. 
Accordingly, if an individual who currently has a representative payee 
requires a new representative payee, we would consider any other 
designees identified by the individual at a time in which that 
individual was eligible to make an advanced designation. If we are 
unable to select from remaining advance designees, we would continue to 
use the regulations in subpart U of part 404 and subpart F of part 416 
to guide representative payee selection.
    Finally, we propose that individuals who are eligible to make 
advance designations may withdraw or revise their advance designations 
at any time, provided that at the time of modification they are still 
eligible to make advanced designations, by informing us of the change 
in writing, in person, by telephone, or by direct electronic submission 
through our website. If the individual wishes to revise advance 
designations, the individual must provide the required information for 
any newly designated individuals.

Proposed Changes

    For our title II regulations, we propose to add a new section, 
Sec.  404.2018 Advance designation of representative payees, to cover: 
(1) General information about advance designation; (2) how to designate 
possible representative payees in advance; (3) how to change an advance 
designation; (4) how we consider an advance designation when we select 
a representative payee; (5) how we consider an advance designation when 
we select a subsequent representative payee; and (6) that organizations 
may not be designated in advance as a possible representative payee. We 
also propose to add paragraph (g) in Sec.  404.2020 to indicate that we 
would consider advance designation when we select representative 
payees. Finally, we propose to make a change to Sec.  404.2021 to state 
that we will consider an advance designee before our current order of 
preference for representative payees.
    For our title XVI regulations, we propose parallel changes. We 
would add a new section, Sec.  416.618 Advance designation of 
representative payees, to cover the same six categories that we propose 
for title II. We would also add paragraph (g) in section Sec.  416.620 
to indicate that we would consider advance designation when we select 
representative payees. Similarly, we propose to make a change to Sec.  
416.621 to state that we will consider an advance designee before our 
current order of preference for representative payees. Finally, we 
propose to correct a grammatical error in the authority citation for 
subpart F of part 416.
    For title VIII, we propose adding a new section, Sec.  408.618 
Advance designation of representative payees, to refer to Sec.  
404.2018, Sec.  404.2020, and Sec.  404.2021 for relevant information 
related to advance designation.

Rulemaking Analyses and Notices

    We will consider all comments we receive on or before the close of 
business on the comment closing date indicated above. The comments will 
be available for examination in the rulemaking docket for these rules 
at the above address. We will file comments received after the comment 
closing date in the docket and will consider those comments to the 
extent practicable. However, we will not respond specifically to 
untimely comments. We may publish a final rule at any time after close 
of the comment period.

Clarity of These Proposed Rules

    Executive Order 12866, as supplemented by Executive Order 13563, 
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:
     Would more, but shorter, sections be better?
     Are the requirements in the rules clearly stated?
     Have we organized the material to suit your needs?
     Could we improve clarity by adding tables, lists, or 
diagrams?
     What else could we do to make the rules easier to 
understand?
     Do the rules contain technical language or jargon that is 
not clear?

[[Page 65042]]

     Would a different format make the rules easier to 
understand, e.g., grouping and order of sections, use of headings, 
paragraphing?

Regulatory Procedures

Executive Order 12866, as Supplemented by Executive Order 13563

    We consulted with the Office of Management and Budget (OMB) and 
determined that these proposed rules do not meet the criteria for a 
significant regulatory action under Executive Order 12866, as 
supplemented by Executive Order 13563.
    We also determined that this final rule meets the plain language 
requirement of Executive Order 12866.

Executive Order 13132 (Federalism)

    We analyzed this proposed rule in accordance with the principles 
and criteria established by Executive Order 13132, and determined that 
the proposed rule will not have sufficient Federalism implications to 
warrant the preparation of a Federalism assessment. We also determined 
that this proposed rule would not preempt any State law or State 
regulation or affect the States' abilities to discharge traditional 
State governmental functions.

Regulatory Flexibility Act

    We certify that this proposed rule will not have a significant 
economic impact on a substantial number of small entities because it 
affects only individuals. Therefore, the Regulatory Flexibility Act, as 
amended, does not require us to prepare a regulatory flexibility 
analysis.

E.O. 13771

    This proposed rule is not subject to the requirements of Executive 
Order 13771 because it is administrative in nature, and because it does 
not impose costs that reach the E.O. 12866 threshold for significance.
Anticipated Costs to Our Programs
    SSA's Office of the Chief Actuary estimates that implementation of 
this rule will result in a very small increase in program cost for the 
Social Security and Supplemental Security Income programs over the 10-
year period 2020 through 2029. This small increase would be considered 
de minimis under E.O. 13771.
Anticipated Administrative Costs to SSA
    Our Office of Budget, Finance, and Management estimates that this 
change will result in administrative costs to the agency of 
approximately $275 million over 10 years, with none of the annual costs 
meeting or exceeding the E.O. 12866 threshold of $100 million. The 
administrative estimates comprise the costs for creating and running 
the online application; field office interviews; employee processing 
time; and sending annual mailers.

Paperwork Reduction Act

    Section 404.2018 of these proposed rules imposes a new public 
reporting burden: The requirement for affected members of the public to 
use SSA's prescribed paper form or online application to submit the 
names of advance designees. SSA previously solicited comment on these 
proposed information collection instruments via a notice published in 
the Federal Register.\14\ In response to that notice, several members 
of the public submitted comments. We provide a document detailing these 
comments, as well as our responses, as a supplemental document to this 
proposed rulemaking.
---------------------------------------------------------------------------

    \14\ August 13, 2019 at 84 FR 40121
---------------------------------------------------------------------------

    We have not changed the proposed Information Collection Request 
(ICR) since the publication of the above-referenced standalone Federal 
Register notice. However, we are again soliciting comment on the 
proposed ICR for section 404.2018 as part of this notice of proposed 
rule. Below is a chart showing current burden estimates for the 
proposed information collection instruments that will implement section 
404.2018.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                              Average
                                                                                              Average        Estimated      theoretical    Total annual
                 Modality of completion                      Number of     Frequency of     burden per     total annual     hourly cost     opportunity
                                                             responses       response        response     burden (hours)      amount           cost
                                                                                             (minutes)                      (dollars) *    (dollars) **
--------------------------------------------------------------------------------------------------------------------------------------------------------
SSA-4547--Paper Version.................................          85,733               1               6           8,573        * $16.36     ** $140,254
SSA-4547--Intranet version (SSI Claims System; MCS;            8,451,966               1               6         845,200         * 16.36   ** 13,827,472
 iMAIN).................................................
i4547--Internet version.................................       3,201,466               1               6         320,147         * 16.36    ** 5,237,605
                                                         -----------------------------------------------------------------------------------------------
    Totals..............................................      11,739,194  ..............  ..............       1,173,919  ..............   ** 19,205,331
--------------------------------------------------------------------------------------------------------------------------------------------------------
* We based these figures on an average of the hourly wages for the various respondents, which includes: DI; retiree; and survivors' payments as reported
  in SSA's disability insurance payment data, and the average hourly salary for U.S. workers, as reported by Bureau of Labor Statistics data.
** This figure does not represent actual costs that SSA is imposing on recipients of Social Security payments to complete this application; rather,
  these are theoretical opportunity costs for the additional time respondents will spend to complete the application. There is no actual charge to
  respondents to complete the application. The total estimated burden hours for this ICR is 1,173,919 hours (reflecting SSA management information
  data), which results in an associated theoretical (not actual) opportunity cost financial burden of $19,205,331. This figure represents the
  theoretical amount a respondent could have earned during the time they completed the form. SSA does not actually charge respondents to complete our
  applications.

    We note that this burden calculation assumes 100 percent of 
beneficiaries and applicants who are eligible to advance designate will 
choose to do so.
    We are requesting public comments on this Information Collection 
Request. 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 ways to minimize the burden on 
respondents, including the use of automated 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, Email address: [email protected].
Social Security Administration, OLCA, Attn: Reports Clearance Director, 
3100 West High Rise, 6401 Security Blvd., Baltimore, MD 21235, Fax: 
410-966-2830, Email address: [email protected].


[[Page 65043]]


    You can submit comments until December 26, 2019, which is 30 days 
after the publication of this proposed rule. To receive a copy of the 
OMB clearance package, contact the SSA Reports Clearance Officer using 
any of the above contact methods. We prefer to receive comments by 
email 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; and 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 408

    Administrative practice and procedure; Reporting and recordkeeping 
requirements; Social security; Supplemental Security Income (SSI), 
Veterans.

20 CFR Part 416

    Administrative practice and procedure; Reporting and recordkeeping 
requirements; Social security; Supplemental Security Income (SSI).

Andrew Saul,
Commissioner of Social Security.

    For the reasons stated in the preamble, we propose to amend subpart 
U of part 404 of title 20 of the Code of Federal Regulations as set 
forth below:

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

0
1. The authority citation for subpart U of part 404 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. Add section Sec.  404.2018 to read as follows:


Sec.  404.2018  Advance designation of representative payees.

    (a) General. An individual who:
    (1) Is entitled to or an applicant for a benefit and;
    (2) Has attained 18 years of age or is an emancipated minor, may 
designate in advance one or more individuals to possibly serve as a 
representative payee for the individual if we determine that payment 
will be made to a representative payee (see Sec.  404.2010(a)). An 
individual may not designate in advance possible representative payees 
if we have information that the individual is either- legally 
incompetent or mentally incapable of managing his or her benefit 
payments; or physically incapable of managing or directing the 
management of his or her benefit payments.
    (b) How to designate possible representative payees in advance. 
Individuals who meet the requirements in paragraph (a) of this section 
may designate in advance their choice(s) for possible representative 
payees by indicating their decision to designate a representative payee 
in advance and providing us with the required information. In addition 
to the required information, an individual may choose to provide us 
with the relationship of the advance designee to the individual. The 
information we require before we will consider an advance designee as a 
possible representative payee is:
    (1) The name of the advance designee,
    (2) A telephone number of the advance designee, and
    (3) The order of priority in which the individual would like us to 
consider the advance designees, if he or she designates more than one 
advance designee.
    (c) How to make changes to advance designation. Individuals who 
meet the requirements in paragraph (a) of this section may change their 
advance designees by informing us of the change and providing the 
required information (see paragraph (b)(1) through (3) of this section) 
to us. Individuals who meet the requirements in paragraph (a) of this 
section may withdraw their advance designation by informing us of the 
withdrawal.
    (d) How we consider advance designation when we select a 
representative payee.
    (1) If we determine that payment will be made to a representative 
payee, we will review an individual's advance designees in the order 
listed by the individual and select the first advance designee who 
meets the criteria for selection. To meet the criteria for selection--
    (i) The advance designee must be willing and able to serve as a 
representative payee,
    (ii) Appointment of the advance designee must comply with the 
requirements in section 205(j)(2) of the Social Security Act, and
    (iii) There must be no other good cause (see Sec. Sec.  404.2020 
and 404.2021) to prevent us from selecting the advance designee.
    (2) If none of the advance designees meet the criteria for 
selection, we will use our list of categories of preferred payees (see 
Sec.  404.2021), along with our other regulations in subpart U of this 
part, as a guide to select a suitable representative payee.
    (e) How we consider advance designation when we select a subsequent 
representative payee. If an individual who currently has a 
representative payee requires a change of representative payee, we will 
consider any other designees identified by the individual at a time in 
which that individual was eligible to make an advanced designation, 
under paragraph (d) of this section.
    (f) Organizations. An individual may not designate in advance an 
organization to serve as his or her possible representative payees.
0
3. Amend Sec.  404.2020 by
0
a. Revising paragraphs (e), and (f), and;
0
b. Adding paragraph (g).
    The revisions and addition reads as follows:


Sec.  404.2020  Information considered in selecting a representative 
payee.

* * * * *
    (e) Whether the potential payee is in a position to know of and 
look after the needs of the beneficiary;
    (f) The potential payee's criminal history; and
    (g) Whether the beneficiary made an advance designation (see Sec.  
404.2018).
0
4. Amend Sec.  404.2021 by revising the introductory paragraph to read 
as follows:


Sec.  404.2021  What is our order of preference in selecting a 
representative payee for you?

    As a guide in selecting a representative payee, we have established 
categories of preferred payees. These preferences are flexible. We will 
consider an individual's advance designee(s) (see Sec.  404.2018) 
before we consider other potential representative payees in the 
categories of preferred payees listed in this section. When we select a 
representative payee, we will choose the designee of the beneficiary's 
highest priority, provided that the designee is willing and able to 
serve, is not prohibited from serving (see Sec.  404.2022), and 
supports the best interest of the beneficiary (see Sec.  404.2020). The 
preferences are:
* * * * *

PART 408--SPECIAL BENEFITS FOR CERTAIN WORLD WAR II VETERANS

0
5. The authority citation for subpart F of part 408 is revised to read 
as follows:

    Authority: Secs. 205(j)(1)(C), 702(a)(5), 807, and 810 of the 
Social Security Act (42 U.S.C. 405(j)(1)(C), 902(a)(5), 1007, and 
1010).

0
6. Add Sec.  408.618 to subpart F to read as follows:

[[Page 65044]]

Sec.  408.618  Advance designation of representative payees.

    For information about advance designation, how to designate 
representative payees in advance, how to make changes to advance 
designations, how we consider an advance designation when we select a 
representative payee, how we consider an advance designation when we 
select a subsequent representative payee, and other relevant 
information, see Sec. Sec.  404.2018, 404.2020, and 404.2021 of this 
chapter.

PART416--SUPPLEMENTAL SECURITY INCOME FOR THE AGED, BLIND, AND 
DISABLED

0
7. The authority citation for subpart F of part 416 is revised to read 
as follows:

    Authority: Secs. 205(j)(1)(C), 702(a)(5), 1631(a)(2) and (d)(1) 
of the Social Security Act (42 U.S.C. 405(j)(1)(C), 902(a)(5), 
1383(a)(2) and (d)(1)).

0
8. Add Sec.  416.618 to subpart F to read as follows:


Sec.  416.618  Advance designation of representative payees.

    (a) General. An individual who:
    (1) Is eligible for or an applicant for a benefit; and
    (2) Has attained 18 years of age or is an emancipated minor, may 
designate in advance one or more individuals to possibly serve as a 
representative payee for the individual if we determine that payment 
will be made to a representative payee (see Sec.  416.610(a)). An 
individual may not designate in advance possible representative payees 
if we have information that the individual is either legally 
incompetent or mentally incapable of managing his or her benefit 
payments; or physically incapable of managing or directing the 
management of his or her benefit payments.
    (b) How to designate possible representative payees in advance. 
Individuals who meet the requirements in paragraph (a) of this section 
may designate in advance their choice(s) for possible representative 
payees by indicating their decision to designate a representative payee 
in advance and providing us with the required information. In addition 
to the required information, an individual may choose to provide us 
with the relationship of the advance designee to the individual. The 
information we require before we will consider an advance designee as a 
possible representative payee is:
    (1) The name of the advance designee,
    (2) A telephone number of the advance designee, and
    (3) The order of priority in which the individual would like us to 
consider the advance designees if he or she designates more than one 
advance designee.
    (c) How to make changes to advance designation. Individuals who 
meet the requirements in paragraph (a) of this section may change their 
advance designees by informing us of the change and providing the 
required information (see paragraph (b)(1) through (3) of this section) 
to us. Individuals who meet the requirements in paragraph (a) of this 
section may withdraw their advance designation by informing us of the 
withdrawal.
    (d) How we consider advance designation when we select a 
representative payee.
    (1) If we determine that payment will be made to a representative 
payee, we will review advance designees in the order listed by the 
individual and select the first advance designee who meets the criteria 
for selection. To meet the criteria for selection--
    (i) The advance designee must be willing and able to serve as a 
representative payee,
    (ii) Appointment of the advance designee must comply with the 
requirements in section 205(j)(2) of the Social Security Act, and
    (iii) There must be no other good cause (see Sec. Sec.  416.620 and 
416.621) to prevent us from selecting the advance designee.
    (2) If none of the advance designees meet the criteria for 
selection, we will use our list of categories of preferred payees (see 
Sec.  416.621), along with our other regulations in subpart F of this 
part, as a guide to select a suitable representative payee.
    (e) How we consider advance designation when we select a subsequent 
representative payee. If an individual who currently has a 
representative payee requires a change of representative payee, we will 
consider any other designees identified by the individual at a time in 
which that individual was eligible to make an advanced designation, 
under paragraph (d) of this section.
    (f) Organizations. An individual may not designate in advance an 
organization to serve as his or her possible representative payee.
0
9. Amend Sec.  416.620 by
0
a. Revising paragraphs (e) and (f), and
0
b. Adding paragraph (g):
    The revisions and addition reads as follows:


Sec.  416.620  Information considered in selecting a representative 
payee.

* * * * *
    (e) Whether the potential payee is in a position to know of and 
look after the needs of the beneficiary;
    (f) The potential payee's criminal history; and
    (g) Whether the beneficiary made an advance designation (see Sec.  
416.618).
0
10. Amend Sec.  416.621 by revising the introductory paragraph to read 
as follows:


Sec.  416.621  What is our order of preference in selecting a 
representative payee for you?

    As a guide in selecting a representative payee, we have established 
categories of preferred payees. These preferences are flexible. We will 
consider an individual's advance designees (see Sec.  416.618) before 
we consider other potential representative payees in the categories of 
preferred payees listed in this section. When we select a 
representative payee, we will choose the designee of the beneficiary's 
highest priority, provided that the designee is willing and able to 
serve, is not prohibited from serving (see Sec.  416.622), and supports 
the best interest of the beneficiary (see Sec.  416.620). The 
preferences are:
* * * * *
[FR Doc. 2019-25569 Filed 11-25-19; 8:45 am]
BILLING CODE P