The proposed draft is out:
https://www.ssa.gov/regulations/NPRM--I ... IAA%29.PDF" onclick="window.open(this.href);return false;
As I suggested above, it's tied to the question of appointment of a representative payee (a person or organization that manages someone else's SS benefits). The good news is that not everyone who has been assigned a representative payee will be submitted for NICS exclusion:
Finally, the regulation requires that the individual lack the mental capacity to manage his or her own affairs “as a result of marked subnormal intelligence, or mental illness, incompetency, condition, or disease.” Consequently, the basis for the individual’s inability to manage his or her own affairs must therefore be the “result of” his or her mental impairment. As a result, individuals whom we are required to report to NICS will be a subset of the universe of individuals for whom we have appointed a representative payee.
This sounds good, and their proposal does suggest an effort to tie disqualifications only to those whose need for someone else to handle their finances is directly tied to their mental disability, but it still risks a very broad categorization process which could include large #s of people inappropriately.
Also, the appeals process only allows for the person to submit documents which will be reviewed only by the SSA's own decision maker, not an independent authority, and the petitioner doesn't get a hearing at which they can review information used against them.