Advance Designation of Representative Payees for Social Security Beneficiaries, 7661-7665 [2020-02409]

Download as PDF Federal Register / Vol. 85, No. 28 / Tuesday, February 11, 2020 / Rules and Regulations (c) Applicability This AD applies to all Airbus SAS airplanes, certificated in any category, identified in paragraphs (c)(1) through (5) of this AD. (1) Model A300 B4–601, B4–603, B4–620, and B4–622 airplanes. (2) Model A300 B4–605R and B4–622R airplanes. (3) Model A300 F4–605R and F4–622R airplanes. (4) Model A300 C4–605R Variant F airplanes. (5) Model A310–304, –322, –324, and –325 airplanes. (d) Subject Air Transport Association (ATA) of America Code 28, Fuel. (e) Unsafe Condition This AD was prompted by the FAA’s analysis of fuel system reviews on the affected airplanes conducted by the manufacturer. The FAA is issuing this AD to prevent ignition sources inside the center fuel tank, which, in combination with flammable fuel vapors, could result in a fuel tank explosion and consequent loss of the airplane. (f) Compliance Comply with this AD within the compliance times specified, unless already done. khammond on DSKJM1Z7X2PROD with RULES (g) Modification Within 72 months after the effective date of this AD, modify the fuel quantity indicating system (FQIS) to prevent development of an ignition source inside the center fuel tank due to electrical fault conditions, using a method approved by the Manager, International Section, Transport Standards Branch, FAA. (h) Alternative Actions for Cargo Airplanes For airplanes used exclusively for cargo operations: As an alternative to the requirements of paragraph (g) of this AD, do the actions specified in paragraphs (h)(1) and (h)(2) of this AD. To exercise this alternative, operators must perform the first inspection required under paragraph (h)(1) of this AD within 6 months after the effective date of this AD. To exercise this alternative for airplanes returned to service after conversion of the airplane from a passenger configuration to an all-cargo configuration more than 6 months after the effective date of this AD, operators must perform the first inspection required under paragraph (h)(1) of this AD prior to further flight after the conversion. (1) Within 6 months after the effective date of this AD, record the existing fault codes stored in the fuel quantity indicating (FQI) computer, and before further flight thereafter, do a BITE check (check of built-in test equipment) of the FQI computer, using a method approved by the Manager, International Section, Transport Standards Branch, FAA. If any fault code is recorded prior to the BITE check or as a result of the BITE check, before further flight, do all applicable repairs and repeat the BITE check VerDate Sep<11>2014 15:44 Feb 10, 2020 Jkt 250001 until a successful test is performed with no fault found, using a method approved by the Manager, International Section, Transport Standards Branch, FAA. Repeat these actions thereafter at intervals not to exceed 750 flight hours. Modification as specified in paragraph (h)(2) of this AD does not terminate the repetitive BITE check requirement of this paragraph. (2) Within 72 months after the effective date of this AD, modify the airplane by separating FQIS wiring that runs between the FQI computer and the center fuel tank wall penetrations, including any circuits that might pass through a main fuel tank, from other airplane wiring that is not intrinsically safe, using methods approved by the Manager, International Section, Transport Standards Branch, FAA. (i) Alternative Methods of Compliance (AMOCs) (1) The Manager, International Section, Transport Standards Branch, FAA, has the authority to approve AMOCs for this AD, if requested using the procedures found in 14 CFR 39.19. In accordance with 14 CFR 39.19, send your request to your principal inspector or local Flight Standards District Office, as appropriate. If sending information directly to the manager of the International Section, send it to the attention of the person identified in paragraph (j) of this AD. (2) Before using any approved AMOC, notify your appropriate principal inspector, or lacking a principal inspector, the manager of the local flight standards district office/ certificate holding district office. (j) Related Information For more information about this AD, contact Dan Rodina, Aerospace Engineer, International Section, Transport Standards Branch, FAA, 2200 South 216th St., Des Moines, WA 98198; telephone and fax 206– 231–3225. (k) Material Incorporated by Reference None. Issued on January 31, 2020. Michael Kaszycki, Acting Director, System Oversight Division, Aircraft Certification Service. [FR Doc. 2020–02512 Filed 2–10–20; 8:45 am] BILLING CODE 4910–13–P 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 Social Security Administration. ACTION: Final rule. AGENCY: We are finalizing our proposed regulations specifying the information Social Security SUMMARY: PO 00000 Frm 00009 Fmt 4700 Sfmt 4700 7661 beneficiaries and applicants must provide to designate individuals as their possible representative payee in advance of our determination that the beneficiary needs a representative payee. These regulations additionally set forth how we will consider an individual’s advance designation when we select a representative payee, and fulfill our obligation under 201 of the Strengthening Protections for Social Security Beneficiaries Act of 2018. DATES: This final rule is effective February 25, 2020. 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 A representative payee is a person or 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 youth.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 On April 13, 2018, President Trump signed into law the Strengthening Protections for Social Security Beneficiaries Act of 2018 (Strengthening Protections Act).3 Section 201 of the Strengthening Protections Act, entitled ‘‘Advance Designation of Representative Payees,’’ amended section 205(j)(1) of the Social Security Act 4 to allow for advance designation of representative payees. It also required us to promulgate regulations specifying the information 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). 3 Public Law 115–165, 132 Stat. 1257. Available at: https://www.congress.gov/115/plaws/publ165/ PLAW–115publ165.pdf. 4 42 U.S.C. 405(j)(1). E:\FR\FM\11FER1.SGM 11FER1 7662 Federal Register / Vol. 85, No. 28 / Tuesday, February 11, 2020 / Rules and Regulations khammond on DSKJM1Z7X2PROD with RULES that an individual must provide to designate a representative payee in advance. To help us develop the information that we need, we hosted a National Disability Forum (NDF) on Advance Designation of Representative Payees on October 30, 2018 5, at which we received feedback from panelists with experience in fields relevant to our representative payee program. Following the NDF and taking the feedback we received into consideration, we published a Notice of Proposed Rulemaking (NPRM) in the Federal Register on November 26, 2019.6 In the NPRM, we proposed that applicants or beneficiaries may designate one or more potential representative payees, provided that we have not determined the applicant or beneficiary to be mentally or physically incapable of managing benefit payments, or that the applicant or beneficiary has not been found legally incompetent. Consistent with the Strengthening Protections Act, we proposed to permit advance designations of individuals only, not organizations.7 We proposed that eligible individuals may designate potential representative payees in advance by providing us with the information we require. This required information includes 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 is designated. We noted that current systems limitations allow us to receive up to three advance designations. We also proposed to consider advance designees first when selecting a representative payee. When we determine that a representative payee is necessary,8 we would first review the advance designees previously identified by the individual (if any), in the order of priority established by the individual. Finally, we proposed 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. Individuals could withdraw or revise their advance designations by informing us of the change in writing, in person, 5 Information related to this NDF is available on our internet site at https://www.ssa.gov/ndf/ndf_ outreach.htm, under the October 30, 2018 tab. 6 84 FR 65040. 7 See section 205(j)(1)(C)(ii) of the Act, as amended by the section 201(a) of the Strengthening Protections Act, 42 U.S.C. 405(j)(1)(C)(ii). 8 See 20 CFR 404.2010 and 416.610 for when we will make payment to a representative payee. VerDate Sep<11>2014 15:44 Feb 10, 2020 Jkt 250001 by telephone, or by direct electronic submission through our website. We also proposed that individuals who wish to revise their advance designations must provide the required information for any newly designated individuals. In response to the NPRM, we received four timely proffered comment submissions. Below, we did not summarize or respond to one comment that was outside the scope of the proposed rule, and one comment that agreed with the proposal and did not suggest any changes. All comments are viewable through the eRulemaking docket, available online at www.regulations.gov, docket number SSA–2018–0028. Public Comments and Discussion Comment: One commenter suggested that to assess the suitability of a person whom a beneficiary wishes to advance designate, including any risk of coercion, undue influence, or exploitation, we should interview proposed advance designees in person and in the company of the beneficiary. If an in-person interview is not possible, the commenter suggested that interviews could take place by video or phone. Response: The commenter is asking that we use different procedures for representative payees who are advanced designated than for any other applicants we are considering for representative payee appointment. This would be unnecessary and would establish a disparate standard. In response to the commenter’s concern that we ensure the potential representative payee is appropriate, we reiterate that we will not appoint someone to be a representative payee solely because the individual designated them in advance. As stated in the NPRM, all advance designees will undergo the same procedures as anyone else under consideration to be a representative payee. For example, we interview payee applicants as part of our normal selection procedures.9 These same selection procedures will apply when we evaluate an advance designee at the time that a representative payee is needed. We conduct interviews in person, except under certain circumstances. In those situations where we do not conduct an in-person interview, we generally require one by phone or videoconference. However, we 9 See 20 CFR 404.2024, 408.624, 416.624 for how we investigate a representative payee applicant, including when we conduct a face-to-face interview with the payee applicant. PO 00000 Frm 00010 Fmt 4700 Sfmt 4700 do not require that the payee applicant interview occur in the company of the beneficiary. Under existing regulations, beneficiaries receive advance notice of payee appointments and are afforded the right to appeal the selection.10 Additionally, the payee applicant’s responses during the interview are given under penalty of perjury. Comment: One commenter recommended that before appointing an advance designee as a representative payee, we should confirm the beneficiary still prefers the advance designee to serve as representative payee. Response: Before appointing any representative payee, we always provide advance notice to the beneficiary notifying him or her of the need for a payee and identifying the payee. The advance notice also provides the beneficiary with the right to appeal the selection. Additionally, once advance designation begins, we will send a notice annually to beneficiaries who have advance designations on record reminding them of their advance designees. The notice will instruct the beneficiary to review the advance designees to confirm the accuracy of the information and to update the information as necessary. So, the information in a beneficiary’s advance designation will be relatively recent regardless of when the beneficiary initially submitted the advance designation. Comment: One commenter suggested that our field office staff should fully document reasons for a determination not to select an advance designee. Response: Under existing procedure, whenever we do not select a payee applicant, we document the nonselection reason in our electronic Representative Payee System (eRPS) (OMB No. 0960–0814). We will include an option in the eRPS system to annotate advance designee status for the payee applicant. We are also building functionality in the system’s new Advance Designation screens to document the contacts made with advance designees and why we did not select an advance designee. Our program instructions will direct staff to include notes explaining the decision any time an advance designee is not selected as payee. Comment: One commenter recommended that we should annually notify the beneficiary to remind them of advance designees and ask for any updates or changes to their contact information. 10 20 E:\FR\FM\11FER1.SGM CFR 404.2030, 408.630, 416.630. 11FER1 khammond on DSKJM1Z7X2PROD with RULES Federal Register / Vol. 85, No. 28 / Tuesday, February 11, 2020 / Rules and Regulations Response: This will be part of our process, as we explained in the NPRM. Section 201(d) of the Strengthening Protections Act requires that annually ‘‘the Commissioner of Social Security shall notify each individual entitled to a benefit under title II, VIII, or XVI of the Social Security Act of the name of any individual designated to serve as the individual’s representative payee. . . .’’ So, we will send a notice annually to beneficiaries reminding them of their advance designees. The notice will instruct the beneficiary to review the accuracy of the advance designee information and to update the information if necessary. Comment: One commenter suggested that when a beneficiary designates an individual, we should provide notice of the designation to the advance designee. Response: We considered whether to notify individuals who are advance designated at the time that the advance designation occurs. We decided against this action because the burden on the public and us outweighed the benefit of notifying individuals that they had been advance designated, because a designee may never be called upon to serve as a payee. At the time that we determine that a beneficiary is incapable and we begin development of a payee, we will contact the advance designee to determine the person’s availability, willingness, and suitability to serve as a payee. Comment: One commenter suggested that the information we are proposing to collect might not be enough to identify the advance designees and that we should consider collecting more information, including date of birth and current address.11 Response: We considered whether to collect additional information about the advance designees, but we determined that their names and telephone numbers are sufficient to contact the advance designee. We also considered whether to collect advance designees’ current addresses; however, our process for contacting advance designees will only include contacting them by telephone. If an advance designee is unreachable by telephone, we will contact the beneficiary to obtain updated contact information for the individual. The commenter noted that a long time may have passed between the time the the beneficiary originally makes the advance designation and when we attempt to contact the advance designee. For this reason, we will send a notice 11 The information we proposed to collect in the NPRM included 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. VerDate Sep<11>2014 15:44 Feb 10, 2020 Jkt 250001 annually to beneficiaries who have made advance designations reminding them of their advance designees. The notice will instruct the beneficiary to review the advance designees to assess the accuracy of the information provided and to update the information if necessary. We will not collect an advance designee’s date of birth at the time of advance designation because this information is unnecessary. Once we determine that a beneficiary is incapable and we need to appoint a payee, we will confirm the identity of the advance designee as part of our normal payee development procedures. Comment: One commenter suggested that we communicate the option of advance designation to current beneficiaries. Response: We agree with this suggestion. The agency is developing marketing tools and external communication plans to create a broad awareness of advance designation procedures. Regulatory Procedures We follow the Administrative Procedure Act (APA) rulemaking procedures specified in 5 U.S.C. 553 in promulgating regulations. Section 702(a)(5) of the Social Security Act, 42 U.S.C. 902(a)(5). Generally, final rules become effective 30 days following their publication in the Federal Register. However, the APA provides exceptions to allow for earlier effective dates including ‘‘as otherwise provided by the agency for good cause found and published with the rule’’ 5 U.S.C. 553(d)(3). We determined that good cause exists for dispensing with the 30-day delay in the effective date of this final rule. This final rule merely codifies a statutory directive which the agency is required by law to begin by April 2020. As well, the public comments did not raise any novel issues or concerns. We therefore find it is in the public interest to make this final rule effective 14 days after its publication in the Federal Register. Executive Order 12866, as Supplemented by Executive Order 13563 We consulted with the Office of Management and Budget (OMB) and OMB determined that this final rule does not meet the criteria for a significant regulatory action under Executive Order 12866, as supplemented by Executive Order 13563. Thus, OMB did not formally review this final rule. We also determined that this final rule meets the plain language requirement of Executive Order 12866. PO 00000 Frm 00011 Fmt 4700 Sfmt 4700 7663 Executive Order 13132 (Federalism) We analyzed this final rule in accordance with the principles and criteria established by Executive Order 13132, and determined that the final rule will not have sufficient Federalism implications to warrant the preparation of a Federalism assessment. We also determined that this final 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 final rule will not have a significant economic impact on a substantial number of small entities because they affect only individuals. Therefore, the Regulatory Flexibility Act, as amended, does not require us to prepare a regulatory flexibility analysis. E.O. 13771 This final rule is not subject to the requirements of Executive Order 13771 because it is not a significant regulatory action under E.O. 12866. Anticipated Costs to Our Programs Our Office of the Chief Actuary estimates that implementing this final rule will result in a very small increase in program costs for the Social Security and Supplemental Security Income programs over the 10-year period 2020 through 2029. 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 ‘‘economically significant’’ 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. Congressional Review Act (CRA) Pursuant to the Congressional Review Act (5 U.S.C. 801, et seq.), the Office of Information and Regulatory Affairs designated this rule as not a ‘‘major rule,’’ as defined by 5 U.S.C. 804(2). Paperwork Reduction Act (PRA) Section 404.2018 of this final rule imposes a new public reporting burden: the requirement for affected members of the public to use our prescribed paper form or online application to submit the names and telephone numbers of advance designees. We previously E:\FR\FM\11FER1.SGM 11FER1 7664 Federal Register / Vol. 85, No. 28 / Tuesday, February 11, 2020 / Rules and Regulations solicited comment on these proposed information collection instruments via a notice published in the Federal Register.12 In response to that notice, several members of the public submitted comments. We previously provided a document detailing these comments, as well as our responses, in the rulemaking docket on Regulations.gov under Supporting and Related Material for this rule’s NPRM. We did not change the proposed Information Collection Request (ICR) originally shared with the publication of the above-referenced standalone Federal Register notice. However, we again solicited comment on the proposed ICR for section 404.2018 as part of the NPRM. We did not receive any further comments or requests for information relating to the PRA in response to that solicitation of comment, and we are not making any further changes to this ICR now. Accordingly, OMB pre-approved the ICR under OMB number No. 0960– 0814. This approval will be considered final when this final rule becomes effective. (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). khammond on DSKJM1Z7X2PROD with RULES Dated: January 31, 2020. Andrew Saul, Commissioner of Social Security. For the reasons stated in the preamble, we are amending subpart U of part 404, subpart F of part 408, and subpart F of part 416 of title 20 of the Code of Federal Regulations as set forth below: 12 84 FR 40121 (August 13, 2019). VerDate Sep<11>2014 15:44 Feb 10, 2020 Jkt 250001 PART 404—FEDERAL OLD–AGE, SURVIVORS AND DISABILITY INSURANCE (1950-) 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)). 2. Add section § 404.2018 to read as follows: ■ § 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 § 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(s) 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 paragraphs (b)(1) through (3) of this section) to us. Individuals who meet the requirements in paragraph (a) of this section may withdraw their advance PO 00000 Frm 00012 Fmt 4700 Sfmt 4700 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 §§ 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 § 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 payee. ■ 3. Amend § 404.2020 by revising paragraphs (e) and (f) and adding paragraph (g) to read as follows: § 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 § 404.2018). ■ 4. Amend § 404.2021 by revising the introductory text to read as follows: § 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 E:\FR\FM\11FER1.SGM 11FER1 Federal Register / Vol. 85, No. 28 / Tuesday, February 11, 2020 / Rules and Regulations advance designee(s) (see § 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 § 404.2022), and supports the best interest of the beneficiary (see § 404.2020). The preferences are: * * * * * PART 408—SPECIAL BENEFITS FOR CERTAIN WORLD WAR II VETERANS 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). 6. Add § 408.618 to subpart F to read as follows: ■ § 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 §§ 404.2018, 404.2020, and 404.2021 of this chapter. PART 416—SUPPLEMENTAL SECURITY INCOME FOR THE AGED, BLIND, AND DISABLED 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)). 8. Add § 416.618 to subpart F to read as follows: ■ khammond on DSKJM1Z7X2PROD with RULES § 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 § 416.610(a)). VerDate Sep<11>2014 15:44 Feb 10, 2020 Jkt 250001 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 paragraphs (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 PO 00000 Frm 00013 Fmt 4700 Sfmt 4700 7665 (iii)There must be no other good cause (see §§ 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 § 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. ■ 9. Amend § 416.620 by revising paragraphs (e) and (f) and adding paragraph (g) to read as follows: § 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 § 416.618). ■ 10. Amend § 416.621 by revising the introductory text to read as follows: § 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 § 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 § 416.622), and supports the best interest of the beneficiary (see § 416.620). The preferences are: * * * * * [FR Doc. 2020–02409 Filed 2–10–20; 8:45 am] BILLING CODE 4191–02–P E:\FR\FM\11FER1.SGM 11FER1

Agencies

[Federal Register Volume 85, Number 28 (Tuesday, February 11, 2020)]
[Rules and Regulations]
[Pages 7661-7665]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-02409]


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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: Final rule.

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SUMMARY: We are finalizing our proposed regulations specifying the 
information Social Security beneficiaries and applicants must provide 
to designate individuals as their possible representative payee in 
advance of our determination that the beneficiary needs a 
representative payee. These regulations additionally set forth how we 
will consider an individual's advance designation when we select a 
representative payee, and fulfill our obligation under 201 of the 
Strengthening Protections for Social Security Beneficiaries Act of 
2018.

DATES: This final rule is effective February 25, 2020.

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

    A representative payee is a person or 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 youth.\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).
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    On April 13, 2018, President Trump signed into law the 
Strengthening Protections for Social Security Beneficiaries Act of 2018 
(Strengthening Protections Act).\3\ Section 201 of the Strengthening 
Protections Act, entitled ``Advance Designation of Representative 
Payees,'' amended section 205(j)(1) of the Social Security Act \4\ to 
allow for advance designation of representative payees. It also 
required us to promulgate regulations specifying the information

[[Page 7662]]

that an individual must provide to designate a representative payee in 
advance.
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    \3\ Public Law 115-165, 132 Stat. 1257. Available at: https://www.congress.gov/115/plaws/publ165/PLAW-115publ165.pdf.
    \4\ 42 U.S.C. 405(j)(1).
---------------------------------------------------------------------------

    To help us develop the information that we need, we hosted a 
National Disability Forum (NDF) on Advance Designation of 
Representative Payees on October 30, 2018 \5\, at which we received 
feedback from panelists with experience in fields relevant to our 
representative payee program. Following the NDF and taking the feedback 
we received into consideration, we published a Notice of Proposed 
Rulemaking (NPRM) in the Federal Register on November 26, 2019.\6\ In 
the NPRM, we proposed that applicants or beneficiaries may designate 
one or more potential representative payees, provided that we have not 
determined the applicant or beneficiary to be mentally or physically 
incapable of managing benefit payments, or that the applicant or 
beneficiary has not been found legally incompetent. Consistent with the 
Strengthening Protections Act, we proposed to permit advance 
designations of individuals only, not organizations.\7\
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    \5\ Information related to this NDF is available on our internet 
site at https://www.ssa.gov/ndf/ndf_outreach.htm, under the October 
30, 2018 tab.
    \6\ 84 FR 65040.
    \7\ See section 205(j)(1)(C)(ii) of the Act, as amended by the 
section 201(a) of the Strengthening Protections Act, 42 U.S.C. 
405(j)(1)(C)(ii).
---------------------------------------------------------------------------

    We proposed that eligible individuals may designate potential 
representative payees in advance by providing us with the information 
we require. This required information includes 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 is designated. We noted that current systems limitations allow 
us to receive up to three advance designations. We also proposed to 
consider advance designees first when selecting a representative payee. 
When we determine that a representative payee is necessary,\8\ we would 
first review the advance designees previously identified by the 
individual (if any), in the order of priority established by the 
individual. Finally, we proposed 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. Individuals 
could withdraw or revise their advance designations by informing us of 
the change in writing, in person, by telephone, or by direct electronic 
submission through our website. We also proposed that individuals who 
wish to revise their advance designations must provide the required 
information for any newly designated individuals.
---------------------------------------------------------------------------

    \8\ See 20 CFR 404.2010 and 416.610 for when we will make 
payment to a representative payee.
---------------------------------------------------------------------------

    In response to the NPRM, we received four timely proffered comment 
submissions. Below, we did not summarize or respond to one comment that 
was outside the scope of the proposed rule, and one comment that agreed 
with the proposal and did not suggest any changes. All comments are 
viewable through the eRulemaking docket, available online at 
www.regulations.gov, docket number SSA-2018-0028.

Public Comments and Discussion

    Comment: One commenter suggested that to assess the suitability of 
a person whom a beneficiary wishes to advance designate, including any 
risk of coercion, undue influence, or exploitation, we should interview 
proposed advance designees in person and in the company of the 
beneficiary. If an in-person interview is not possible, the commenter 
suggested that interviews could take place by video or phone.
    Response: The commenter is asking that we use different procedures 
for representative payees who are advanced designated than for any 
other applicants we are considering for representative payee 
appointment. This would be unnecessary and would establish a disparate 
standard. In response to the commenter's concern that we ensure the 
potential representative payee is appropriate, we reiterate that we 
will not appoint someone to be a representative payee solely because 
the individual designated them in advance. As stated in the NPRM, all 
advance designees will undergo the same procedures as anyone else under 
consideration to be a representative payee.
    For example, we interview payee applicants as part of our normal 
selection procedures.\9\ These same selection procedures will apply 
when we evaluate an advance designee at the time that a representative 
payee is needed. We conduct interviews in person, except under certain 
circumstances. In those situations where we do not conduct an in-person 
interview, we generally require one by phone or videoconference. 
However, we do not require that the payee applicant interview occur in 
the company of the beneficiary. Under existing regulations, 
beneficiaries receive advance notice of payee appointments and are 
afforded the right to appeal the selection.\10\ Additionally, the payee 
applicant's responses during the interview are given under penalty of 
perjury.
---------------------------------------------------------------------------

    \9\ See 20 CFR 404.2024, 408.624, 416.624 for how we investigate 
a representative payee applicant, including when we conduct a face-
to-face interview with the payee applicant.
    \10\ 20 CFR 404.2030, 408.630, 416.630.
---------------------------------------------------------------------------

    Comment: One commenter recommended that before appointing an 
advance designee as a representative payee, we should confirm the 
beneficiary still prefers the advance designee to serve as 
representative payee.
    Response: Before appointing any representative payee, we always 
provide advance notice to the beneficiary notifying him or her of the 
need for a payee and identifying the payee. The advance notice also 
provides the beneficiary with the right to appeal the selection. 
Additionally, once advance designation begins, we will send a notice 
annually to beneficiaries who have advance designations on record 
reminding them of their advance designees. The notice will instruct the 
beneficiary to review the advance designees to confirm the accuracy of 
the information and to update the information as necessary. So, the 
information in a beneficiary's advance designation will be relatively 
recent regardless of when the beneficiary initially submitted the 
advance designation.
    Comment: One commenter suggested that our field office staff should 
fully document reasons for a determination not to select an advance 
designee.
    Response: Under existing procedure, whenever we do not select a 
payee applicant, we document the non-selection reason in our electronic 
Representative Payee System (eRPS) (OMB No. 0960-0814). We will include 
an option in the eRPS system to annotate advance designee status for 
the payee applicant. We are also building functionality in the system's 
new Advance Designation screens to document the contacts made with 
advance designees and why we did not select an advance designee. Our 
program instructions will direct staff to include notes explaining the 
decision any time an advance designee is not selected as payee.
    Comment: One commenter recommended that we should annually notify 
the beneficiary to remind them of advance designees and ask for any 
updates or changes to their contact information.

[[Page 7663]]

    Response: This will be part of our process, as we explained in the 
NPRM. Section 201(d) of the Strengthening Protections Act requires that 
annually ``the Commissioner of Social Security shall notify each 
individual entitled to a benefit under title II, VIII, or XVI of the 
Social Security Act of the name of any individual designated to serve 
as the individual's representative payee. . . .'' So, we will send a 
notice annually to beneficiaries reminding them of their advance 
designees. The notice will instruct the beneficiary to review the 
accuracy of the advance designee information and to update the 
information if necessary.
    Comment: One commenter suggested that when a beneficiary designates 
an individual, we should provide notice of the designation to the 
advance designee.
    Response: We considered whether to notify individuals who are 
advance designated at the time that the advance designation occurs. We 
decided against this action because the burden on the public and us 
outweighed the benefit of notifying individuals that they had been 
advance designated, because a designee may never be called upon to 
serve as a payee. At the time that we determine that a beneficiary is 
incapable and we begin development of a payee, we will contact the 
advance designee to determine the person's availability, willingness, 
and suitability to serve as a payee.
    Comment: One commenter suggested that the information we are 
proposing to collect might not be enough to identify the advance 
designees and that we should consider collecting more information, 
including date of birth and current address.\11\
---------------------------------------------------------------------------

    \11\ The information we proposed to collect in the NPRM included 
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.
---------------------------------------------------------------------------

    Response: We considered whether to collect additional information 
about the advance designees, but we determined that their names and 
telephone numbers are sufficient to contact the advance designee. We 
also considered whether to collect advance designees' current 
addresses; however, our process for contacting advance designees will 
only include contacting them by telephone. If an advance designee is 
unreachable by telephone, we will contact the beneficiary to obtain 
updated contact information for the individual.
    The commenter noted that a long time may have passed between the 
time the the beneficiary originally makes the advance designation and 
when we attempt to contact the advance designee. For this reason, we 
will send a notice annually to beneficiaries who have made advance 
designations reminding them of their advance designees. The notice will 
instruct the beneficiary to review the advance designees to assess the 
accuracy of the information provided and to update the information if 
necessary. We will not collect an advance designee's date of birth at 
the time of advance designation because this information is 
unnecessary. Once we determine that a beneficiary is incapable and we 
need to appoint a payee, we will confirm the identity of the advance 
designee as part of our normal payee development procedures.
    Comment: One commenter suggested that we communicate the option of 
advance designation to current beneficiaries.
    Response: We agree with this suggestion. The agency is developing 
marketing tools and external communication plans to create a broad 
awareness of advance designation procedures.

Regulatory Procedures

    We follow the Administrative Procedure Act (APA) rulemaking 
procedures specified in 5 U.S.C. 553 in promulgating regulations. 
Section 702(a)(5) of the Social Security Act, 42 U.S.C. 902(a)(5). 
Generally, final rules become effective 30 days following their 
publication in the Federal Register. However, the APA provides 
exceptions to allow for earlier effective dates including ``as 
otherwise provided by the agency for good cause found and published 
with the rule'' 5 U.S.C. 553(d)(3).
    We determined that good cause exists for dispensing with the 30-day 
delay in the effective date of this final rule. This final rule merely 
codifies a statutory directive which the agency is required by law to 
begin by April 2020. As well, the public comments did not raise any 
novel issues or concerns. We therefore find it is in the public 
interest to make this final rule effective 14 days after its 
publication in the Federal Register.

Executive Order 12866, as Supplemented by Executive Order 13563

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

Executive Order 13132 (Federalism)

    We analyzed this final rule in accordance with the principles and 
criteria established by Executive Order 13132, and determined that the 
final rule will not have sufficient Federalism implications to warrant 
the preparation of a Federalism assessment. We also determined that 
this final 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 final rule will not have a significant 
economic impact on a substantial number of small entities because they 
affect only individuals. Therefore, the Regulatory Flexibility Act, as 
amended, does not require us to prepare a regulatory flexibility 
analysis.

E.O. 13771

    This final rule is not subject to the requirements of Executive 
Order 13771 because it is not a significant regulatory action under 
E.O. 12866.
Anticipated Costs to Our Programs
    Our Office of the Chief Actuary estimates that implementing this 
final rule will result in a very small increase in program costs for 
the Social Security and Supplemental Security Income programs over the 
10-year period 2020 through 2029.
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 ``economically significant'' 
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.

Congressional Review Act (CRA)

    Pursuant to the Congressional Review Act (5 U.S.C. 801, et seq.), 
the Office of Information and Regulatory Affairs designated this rule 
as not a ``major rule,'' as defined by 5 U.S.C. 804(2).

Paperwork Reduction Act (PRA)

    Section 404.2018 of this final rule imposes a new public reporting 
burden: the requirement for affected members of the public to use our 
prescribed paper form or online application to submit the names and 
telephone numbers of advance designees. We previously

[[Page 7664]]

solicited comment on these proposed information collection instruments 
via a notice published in the Federal Register.\12\ In response to that 
notice, several members of the public submitted comments. We previously 
provided a document detailing these comments, as well as our responses, 
in the rulemaking docket on Regulations.gov under Supporting and 
Related Material for this rule's NPRM.
---------------------------------------------------------------------------

    \12\ 84 FR 40121 (August 13, 2019).
---------------------------------------------------------------------------

    We did not change the proposed Information Collection Request (ICR) 
originally shared with the publication of the above-referenced 
standalone Federal Register notice. However, we again solicited comment 
on the proposed ICR for section 404.2018 as part of the NPRM. We did 
not receive any further comments or requests for information relating 
to the PRA in response to that solicitation of comment, and we are not 
making any further changes to this ICR now. Accordingly, OMB pre-
approved the ICR under OMB number No. 0960-0814. This approval will be 
considered final when this final rule becomes effective.

(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).

    Dated: January 31, 2020.
Andrew Saul,
Commissioner of Social Security.
    For the reasons stated in the preamble, we are amending subpart U 
of part 404, subpart F of part 408, and subpart F of part 416 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(s) 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 paragraphs (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 payee.

0
3. Amend Sec.  404.2020 by revising paragraphs (e) and (f) and adding 
paragraph (g) to read 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 text 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

[[Page 7665]]

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:


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.

PART 416--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 paragraphs (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 revising paragraphs (e) and (f) and adding 
paragraph (g) to read 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 text 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. 2020-02409 Filed 2-10-20; 8:45 am]
 BILLING CODE 4191-02-P