Background

This transmittal updates Volume I, Division 1, Chapter 1, Representation of Claimants of the Hearings, Appeals, and Litigation Law (HALLEX) manual. We made these updates to reflect regulatory changes set forth in the final rule entitled “Changes to the Administrative Rules for Claimant Representation and Provisions for Direct Payment to Entities” published on August 21, 2024 (89 FR 67542). The final rule establishes two implementation dates for the numerous policy and systems changes required to comply with the decision of the United States Court of Appeals for the First Circuit in Marasco & Nesselbush, LLP v. Collins. Phase 1 took effect on Septermber 30, 2024. As part of Phase 2, we made the following chages to HALLEX I-1-1 to be pulished an implemented on December 9, 2024.

Explanation of Content and Changes

I-1-1-10 – Appointing a Representative - We updated subsections A., B., and C. to reflect the new regulatory requirement that claimants use a Form SSA-1696 “Claimant's Appointment of a Representative” to appoint a representative and may no longer use other writings. The updates also reflect the new regulatory requirement that all representatives must sign the Form SSA-1696 to become appointed representatives and must register with SSA prior to accepting any appointment. We added a NOTE to subsection A. explaining the difference between representatives, who provide representational services to their clients, and friends and family providing general assistance to a claimant. We also provided updated instructions for signing and filing the Form SSA-1696. We updated the title of subsection D., to “An Entity Cannot Be a Representative,” and clarified that although a representative can assign direct payment of their authorized fee to an entity, that entity cannot be appointed as a representative. We made other editorial changes and removed gendered language throughout the section as appropriate.

I-1-1-11 – Processing the Appointment of a Representative – We made changes throughout the section to reflect the new regulatory requirement that claimants use a Form SSA-1696 “Claimant's Appointment of a Representative” to appoint a representative. The updates also reflect the new regulatory requirement that all representatives must sign the Form SSA-1696 to become appointed representatives and must register with SSA. In subsection B., we updated processing instructions to reflect current systems and business processes. In subsection D., we updated the information about other representation forms to account for regulatory changes, and the contact information for Office of Earnings and International Operations (OEIO) to reflect OEIO's current fax numbers for each form's processing. We made other editorial changes and removed gendered language throughout the section as appropriate.

I-1-1-20 – Authority of an Appointed Representative – We updated subsections A. and B. to clarify the actions a representative may take and added two actions they may not take for consistency with other policy. In subsection E., we clarified that SSA will communicate only with a principal representative for all non-fee maters when the claimant has appointed multiple representatives. We added new subsection F. to explain how SSA will communicate with an entity, through it's POC, in cases where a representative has assigned direct payment of their authorized fee to an entity. We also clarified that such communication must not include claim(s)-related information unless the claimant provides written consent. We made other editorial changes and removed gendered language throughout the section as appropriate.

I-1-1-30 – Termination of a Represntative's Appointment – In subsection A., we clarified that submission of a fee petition does not indicate an appointment has ended when a representative submits the petition prematurely. In NOTE 2 of that subsection, we added a reference and link to the Office of Appellate Operation's (OAO) Registration, Appointment and Services for Representatives (RASR) reference site. In subsection C., we added language to make it clear that SSA staff and adjudicators cannot prevent a representative from withdrawing, even if their withdrawal violates the Rules of Conduct and Standards of Responsibility for Representatives. We added new subsection D. to clarify the effect of a revocation or withdrawal of a representative when there is a valid assignment on file and reordered the remaining subsections. We made former subsections D., E., and F. into new E., F., and G. In new subsection E., we added a NOTE explaining how Office of Hearings Operations (OHO) and OAO staff will identify a new principal representative when the former principal representative's appointment ends and the claim(s) is still pending. We also updated new subsection G. to reflect changes to the fee petition and fee agreement authorization processes necessitated by the regulatory changes. We made additional updates to reflect the new regulatory requirement that all representatives must register with SSA. We made other editorial changes and removed gendered language throughout the section as appropriate.

Date: December 9, 2024