MORATORIUM ON REDUCTIONS IN ATTORNEYS’ FEES; STUDIES OF ATTORNEYS’ FEE PAYMENT SYSTEM.

SEC. 9021. MORATORIUM ON REDUCTIONS IN ATTORNEYS’ FEES; STUDIES OF ATTORNEYS’ FEE PAYMENT SYSTEM. (a) Moratorium.— (1) The provisions of the memorandum of the Associate Commissioner of Social Security dated March 31, 1987 (relating to revised delegations of authority for administrative law judges to determine fees of representatives) which amend sections 1–220 through 1–226 of the Office of Hearings and Appeals Staff Guides and Programs Digest (commonly referred to as the OHA Handbook), and Interim Circular No. 122 (relating to the determination authority regarding fees for representation of claimants), are hereby declared to be null and void. The preceding sentence shall apply with respect to all attorneys’ fees finally authorized in connection with claims for benefits under title II of the Social Security Act on and after the date of the enactment of this Act, regardless of when the legal services involved were performed; and no reconsideration of any such fee finally authorized prior to that date shall be required. (2) Until July 1, 1989, neither the Secretary nor the Social Security Administration may modify any of the rules and regulations relating to attorneys’ fees in connection with claims for benefits under title II of the Social Security Act. 101 STAT. 1330–295 (b) Studies.— (1) The Secretary of Health and Human Services shall conduct a study of the attorneys’ fee payment process under title II of the Social Security Act. Such study shall— (A) assess the levels of reimbursement to attorneys, giving consideration to the contingent nature of most arrangements between claimants and their legal representatives, and propose alternative methods for establishing fees which take the nature of these arrangements into account, and (B) suggest changes aimed at eliminating unnecessary delays in the approval and payment of attorneys’ fees and thereby streamlining the payment process. In conducting this study, the Secretary shall consult with individuals who represent the views of attorneys and with others who represent the views of claimants. (2) At the same time, the Comptroller General shall conduct a study of the fee approval system, including at a minimum— (A) a study of the impact of the current system on claimants and attorneys, (B) an identification of obstacles to the timely payment of attorneys’ fees under present law, and (C) an assessment of the effect, if any, which the reduced limit on attorneys’ fees in effect immediately prior to the enactment of this Act has had on access to legal representation by applicants for disability insurance benefits. (3) The studies required by paragraphs (1) and (2), along with any recommendations resulting therefrom, shall be submitted to the Congress no later than July 1, 1988.