Retention Date: February 3, 2025
· Descriptive Summary: This Chief Judge Bulletin (CJB) provides instructions for the manual release of two new notices, the Incomplete 1696 Notice and the Failed Assignment Notice. These new notices are related to the Marasco rule changes and must be used, as appropriate, starting on December 9, 2024. Notice templates for both notices are scheduled to be added to the Hearings and Appeals Case Processing System (HACPS) on January 25, 2025. Until these notices are available in HACPS, staff must manually add the notice language to an HACPS “Letter Template” and send the notice by central print or through local mail.
Background
The agency revised our regulations concerning claimant representation and payment of fees consistent with the decision of the United States Court of Appeals for the First Circuit in Marasco & Nesselbush, LLP v. Collins, 6 F.4th 150 (1st Cir. 2021). The final rule was published in the Federal Register on August 21, 2024.
The agency is implementing the Marasco changes in two phases:
· Phase 1: On September 30, 2024, we began our new registration requirements for representatives and entities and updated the rules of conduct and standards of responsibility for representatives to include an entity point of contact (POC).
· Phase 2: On December 9, 2024, we will implement the remainder of the rule changes, by beginning allowing assignment of direct payment of representatives’ authorized fees to entities and requiring representatives register and use Form SSA-1696 for new or updated appointments.
Form SSA-1696 Requirement and the Incomplete 1696 Notice
As part of the Marasco rule changes, effective December 9, 2024, representatives must use the current version of Form SSA-1696 for new or updated appointments. The agency will require the Form SSA-1696 for appointments established on or after December 9, 2024. We determine the date the appointment was established by the date that the claimant signed the paper or electronic version. If the claimant did not date the appointment, we use the date the agency received the appointment.
Appointments established prior to December 9, 2024, may be on the prior version of the Form SSA-1696 or in the form of another writing. It is not necessary for representatives to submit a new Form SSA-1696 on claims they were appointed to prior to December 9, 2024; however, they must use the current Form SSA-1696 when updating their appointment information or if they want to assign direct payment of their fees to an entity (provided that the regulatory criteria for an assignment are met).
For appointments established on or after December 9, 2024, the representative must submit the current version of the Form SSA-1696 to the agency and include and ensure the accuracy of all the following information:
· The claimant's name, Social Security Number (SSN), and signature (Sections 1 and 8);
· the representative's name, Representative Identification Number (RepID), and signature (Sections 2 and 8); and
· the representative’s status and certifications (Section 5, parts A and D).
See Hearings Appeals and Litigation Law Manual (HALLEX) sections I-1-1-10 and I-1-1-11 and Program Operations Manual System (POMS) GN 03910.040 for information regarding what is required for a representative to be appointed to a claim and for appointment processing instructions. Note that both the claimant and the representative, regardless of whether the representative is an attorney or non-attorney, must now sign the form SSA-1696.
If the individual requesting to be appointed as a representative submits a Form SSA-1696 that does not include the required information or is a prior version, hearings level staff must send the prospective representative the Incomplete 1696 Notice to alert them that their appointment has not been processed because the Form SSA-1696 they submitted is missing required information or because they used the incorrect form. Standard Hearing Operations Procedure (SHOP) section 1.3.5.6 also instructs hearings level staff to contact the individual who submitted the appointment by telephone to inform them that the appointment was not processed.
NOTE: If an unregistered individual submits a Form SSA-1696 that was signed and dated by the claimant on or after September 30, 2024 (or not dated by the claimant and received on or after September 30, 2024) and requests to be appointed to a case, do not process the appointment, and do not send the Incomplete 1696 Notice. Follow SHOP section 1.3.5.6 and contact the individual to provide them with registration information and form SSA-1699.
Assignment of Direct Payment of Fees and the Failed Assignment Notice
Effective December 9, 2024, representatives have the option to assign direct payment of their authorized fees to an entity. We will recognize assignment requests if:
· The representative makes this request on Form SSA-1696;
· The representative is eligible for direct payment and has affiliated with the entity through the registration process using Form SSA-1699 before making the assignment;
· The entity is eligible for direct payment and has registered using the Form SSA-1694 before the representative made the assignment;
· The assignment is made before the date we notify the claimant of our first favorable determination or decision; and,
· The representative did not waive their right to charge a fee or to receive direct payment of the fee.
See HALLEX I-1-2-1 C and POMS GN 03920.021 for additional information regarding what is required for a representative to make a valid assignment of direct payment of fees to an entity.
If a representative submits a request to assign direct payment of their fees to an entity and their assignment request is not valid, hearings level staff must send the representative the Failed Assignment Notice. For example, an assignment would fail if the representative were not already affiliated with the assignment entity when they submit their Form SSA-1696. In that situation, the entity’s employer identification number (EIN) would not appear as an option to associate with the representative in the Registration, Appointment and Services for Representatives (RASR) application.
Sending the Failed Assignment Notice is sufficient, and it is not necessary to further contact the representative about the failed assignment. A failed assignment request does not prevent us from processing a new appointment that meets our requirements.
If an individual submits an incomplete Form SSA-1696 that includes an assignment request that would not be recognized if the appointment was valid, staff need only send the Incomplete 1696 Notice; however, we encourage staff to mention the assignment issue(s) when they contact the individual about the incomplete Form SSA-1696.
Manual Release Instructions
The Incomplete 1696 Notice and the Failed Assignment Notice are scheduled to be added as notice templates in the HACPS Correspondence Manager on January 25, 2025. Until the notices become available in HACPS, hearings level staff must copy and paste the appropriate notice language into the “Letter Template” found in the HACPS Correspondence Manager to release these notices. See the HACPS Developments and Correspondence Guide for directions on how to run and send a “Letter Template” in HACPS. Once the letter is uploaded to eView or the Electronic Non-Medical folder, staff must also update the document description to state “Incomplete 1696 Notice” and “Failed Assignment Notice” as appropriate.
The Incomplete 1696 Notice must be sent to the individual who wants to be appointed on the claim and the Failed Assignment Notice must be sent to the representative attempting to assign direct payment of their fee. See the included links for the notice language. Hearings level staff sending these notices may change the signee to the “Social Security Administration.”
Incomplete 1696 Notice Language
· The linked notice language includes spaces in the text that staff must complete with case and office specific information.
Failed Assignment Notice Language
· The linked notice language includes spaces in the text that staff must complete with case and office specific information.
Questions
Please direct any questions through your office management chain. Hearing office managers should send their questions to their regional office. Regional offices should submit their questions to the Division of Field Procedures at ||| OHO OCALJ DFP.
References
HALLEX I-1-1-10 Appointing a Representative
HALLEX I-1-1-11 Processing the Appointment of a Representative
HALLEX I-1-2-1 Overview of Representative Fees
POMS GN 03910.040 Appointment of a Representative
POMS GN 03920.021 Assignment of Direct Payment of Authorized Fees to an Entity
SHOP 1.3.5.6 Review Case for Representative Related Issues
HACPS Developments and Correspondence Guide