[Federal Register Volume 62, Number 126 (Tuesday, July 1, 1997)]
[Rules and Regulations]
[Pages 35421-35423]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-17226]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 3

RIN 2900-AI66


Veterans' Benefits Improvements Act of 1996

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: This document amends Department of Veterans Affairs (VA) 
adjudication regulations concerning: The clothing allowance based on 
certain service-connected disabilities; the dates of the Vietnam era; 
the payment of benefits to a surviving spouse for the month in which 
the veteran dies; the period for which accrued benefits are payable; 
and burial allowance eligibility. The intended effect of this amendment 
is to bring VA regulations into conformance with statutory revisions 
contained in the Veterans' Benefits Improvements Act of 1996.

DATES: Effective Date: October 9, 1996, except for amendments to 
Secs. 3.2(f) and 3.307(a)(6), which are effective January 1, 1997.
    Applicability: The amendments to 38 CFR 3.20 apply to the deaths of 
compensation and pension recipients that occur after December 31, 1996. 
The Amendment to 38 CFR 3.1000 applies to claims for accrued benefits 
based on deaths that occurred before October 9, 1996, and that were not 
finally decided before then, as well as to claims based on deaths that 
occurred after then.

FOR FURTHER INFORMATION CONTACT: John Bisset, Jr., Consultant, 
Regulations Staff, Compensation and Pension Service, Veterans Benefits 
Administration, 810 Vermont Avenue, NW, Washington, DC 20420, telephone 
(202) 273-7230.

SUPPLEMENTARY INFORMATION: Under the provisions of 38 U.S.C. 1162, VA 
pays a clothing allowance to each veteran who, because of a service-
connected disability, either wears or uses a prosthetic or orthopedic 
appliance which tends to wear out or tear the veteran's clothing, or 
uses a medication prescribed for a skin condition due to a service-
connected disability and which causes irreparable damage to the 
veteran's outer clothing. Although 38 U.S.C. 5313 limits the amount of 
compensation or dependency and indemnity compensation that is payable 
to any person who is incarcerated in a Federal, State, or local penal 
institution for a period in excess of 60 days for conviction of a 
felony, there was no such restriction on payment of the clothing 
allowance.
    Section 502 of the Veterans' Benefits Improvements Act of 1996, 
Public Law 104-275, amended 38 U.S.C. Chap. 53 to reduce the amount of 
the clothing allowance payable under 38 U.S.C. 1162 to veterans who are 
incarcerated in a Federal, State, or local penal institution for a 
period in excess of 60 days and who are furnished clothing without 
charge by the institution. Under this amendment, VA is required to 
reduce the amount of the clothing allowance by an amount equal to 1/365 
of the amount of the allowance otherwise payable for each day on which 
the veteran was incarcerated during the 12-month period preceding the 
date on which payment of the clothing allowance would be due. VA is 
amending 38 CFR 3.810 to reflect this statutory change.
    The Vietnam era was defined as the period August 5, 1964, through 
May 7, 1975, inclusive (See 38 CFR 3.2(f)). Section 505 of Public Law 
104-275 amended 38 U.S.C. 101(29) to expand the Vietnam era to the 
period beginning on February 28, 1961, and ending on May 7, 1975, but 
only for veterans who served in the Republic of Vietnam during that 
period. Public Law 104-275 also amended 38 U.S.C. 1116(a) to expand the 
period during which veterans must have served in Vietnam to be entitled 
to the application of certain presumptions relating to exposure to 
certain herbicide agents and the service connection of associated 
diseases to the period beginning January 9, 1962, and ending on May 7, 
1975. VA is amending 38 CFR 3.2(f) and 3.307(a)(6) to reflect these 
statutory changes, which are effective January 1, 1997.
    Under the provisions of 38 U.S.C. 5310, a veteran's surviving 
spouse who

[[Page 35422]]

is entitled to death benefits for the month of the veteran's death gets 
an amount not less than the amount which the veteran would have 
received for that month but for his or her death. Section 506 of Pub. 
L. 104-275 revised 38 U.S.C. 5310 to allow a surviving spouse who is 
not entitled to death benefits for the month of the veteran's death to 
receive a benefit in an amount equal to the amount which the veteran 
would have received for that month but for his or her death. It further 
provided that a compensation or pension payment issued to a veteran for 
the month of death shall be treated as being payable to a surviving 
spouse who is entitled to this new benefit and that if the payment is 
negotiated or deposited it will be considered as the benefit due the 
surviving spouse. However, if the payment is less than the amount the 
veteran would have received for the month of death, the statute 
requires that the unpaid amount be treated as an accrued benefit (See 
38 U.S.C. 5121 and 38 CFR 3.1000). The changes made by section 506 of 
Public Law 104-275 apply to deaths occurring after December 31, 1996. 
VA is amending 38 CFR 3.20 to reflect these statutory changes.
    Under the provisions of 38 U.S.C. 5121, when an individual eligible 
for VA periodic monetary benefits dies, the amount of benefits due but 
unpaid at death may be paid either to certain survivors or as a 
reimbursement to the person who bore the expense of the individual's 
last illness and burial. The amount of accrued benefits payable was 
limited to the amount due for a period not to exceed one year prior to 
the date of death. Section 507 of Public Law 104-275 revised this to 
the amount due for a period not to exceed two years prior to the date 
of death. VA is amending 38 CFR 3.1000(a) to reflect this statutory 
change.
    Under the provisions of 38 U.S.C. 2303, VA pays burial benefits on 
behalf of a veteran who dies in a VA facility to which he or she was 
admitted for hospital, nursing home, or domiciliary care, or who dies 
in an institution at which he or she was receiving hospital or nursing 
home care at the expense of the United States at the time of death. 
Section 212 of Public Law 104-275 amended 38 U.S.C. 2303 to provide 
burial benefits for certain veterans who die in State nursing homes. VA 
is amending 38 CFR 3.1600(c) to reflect this statutory change, to 
correct an obsolete reference to 38 U.S.C. 1701(4), and to include 
within the scope of the term ``hospitalized by VA'' contract hospital 
care under 38 U.S.C. 1703. These amendments merely conform the 
regulations to the governing statutory provisions.
    VA is issuing a final rule to make the above described amendments. 
Because these amendments merely reflect statutory changes, publication 
as a proposal for public comment is unnecessary.
    Because no notice of proposed rulemaking was required in connection 
with the adoption of this final rule, no regulatory flexibility 
analysis is required under the Regulatory Flexibility Act (5 U.S.C. 
601-612). Even so, the Secretary hereby certifies that this final rule 
will not have a significant economic impact on a substantial number of 
small entities as they are defined in the Regulatory Flexibility Act.

    The Catalog of Federal Domestic Assistance program numbers are 
64.104, 64.105, 64.109, and 64.110.

List of Subjects in 38 CFR Part 3

    Administrative practice and procedure, Claims, Disability benefits, 
Health care, Pensions, Veterans, Vietnam.

    Approved: April 28, 1997.
Jesse Brown,
Secretary of Veterans Affairs.

    For the reasons set forth in the preamble, 38 CFR part 3 is amended 
as follows:

PART 3--ADJUDICATION

Subpart A--Pension, Compensation, and Dependency and Indemnity 
Compensation

    1. The authority citation for part 3, subpart A, continues to read 
as follows:

    Authority: 38 U.S.C. 501(a), unless otherwise noted.

    2. In Sec. 3.2, paragraph (f) is revised to read as follows:


Sec. 3.2  Periods of war.

* * * * *
    (f) Vietnam era. The period beginning on February 28, 1961, and 
ending on May 7, 1975, inclusive, in the case of a veteran who served 
in the Republic of Vietnam during that period. The period beginning on 
August 5, 1964, and ending on May 7, 1975, inclusive, in all other 
cases.

(Authority: 38 U.S.C. 101(29))
* * * * *
    3. In Sec. 3.20, paragraph (c) is added to read as follows:


Sec. 3.20  Surviving spouse's benefit for month of veteran's death.

* * * * *
    (c)(1) Where a veteran receiving compensation or pension dies after 
December 31, 1996, the surviving spouse, if not entitled to death 
compensation, dependency and indemnity compensation, or death pension 
for the month of death, shall be entitled to a benefit for that month 
in an amount equal to the amount of compensation or pension the veteran 
would have received for that month but for his or her death.
    (2) A payment issued to a deceased veteran as compensation or 
pension for the month in which death occurred shall be treated as 
payable to that veteran's surviving spouse, if the surviving spouse is 
not entitled to death compensation, dependency and indemnity 
compensation or death pension for that month and, if negotiated or 
deposited, shall be considered to be the benefit to which the surviving 
spouse is entitled under paragraph (c)(1) of this section. However, if 
such payment is in an amount less than the amount of the benefit under 
paragraph (c)(1) of this section, the unpaid difference shall be 
treated in the same manner as an accrued benefit under Sec. 3.1000 of 
this part.

(Authority: 38 U.S.C. 5310(b))


Sec. 3.307  [Amended]

    4. In Sec. 3.307, paragraphs (a)(6)(i) and (a)(6)(iii) are amended 
by removing ``during the Vietnam era'' wherever it appears, and adding, 
in its place, ``during the period beginning on January 9, 1962, and 
ending on May 7, 1975'', and by adding an authority citation at the end 
of paragraph (a)(6)(i) and by revising the authority citation to 
paragraph (a)(6)(iii) to read as follows:


Sec. 3.307  Presumptive service connection for chronic, tropical or 
prisoner-of-war related disease, or disease associated with exposure to 
certain herbicide agents; wartime and service on or after January 1, 
1947.

    (a) * * *
    (6) * * *
    (i) * * *

(Authority: 38 U.S.C. 1116(a)(4))
* * * * *
    (iii) * * *

(Authority: 38 U.S.C. 501(a) and 1116(a)(3))
 * * * * *


Sec. 3.810  [Amended]

    5. In Sec. 3.810, paragraph (a), the first sentence, is amended by 
removing ``A'' and adding, in its place, ``Except as provided in 
paragraph (d) of this section a''; and paragraph (d) is added after the 
authority citation following paragraph (c) to read as follows:

[[Page 35423]]

Sec. 3.810  Clothing allowance.

* * * * *
    (d) If a veteran is incarcerated in a Federal, State, or local 
penal institution for a period of more than 60 days and is furnished 
clothing without charge by the institution, VA shall reduce the amount 
of the annual clothing allowance by 1/365th of the amount otherwise 
payable for each day the veteran was incarcerated during the 12-month 
period preceding the anniversary date for which entitlement is 
established. No reduction shall be made for the first 60 days of 
incarceration.

(Authority: 38 U.S.C. 5313A)


Sec. 3.1000  [Amended]

    6. In Sec. 3.1000, the introductory text of paragraph (a) is 
amended by removing ``1 year'' and adding, in its place, ``2 years'', 
and by adding an authority citation to read as follows:


Sec. 3.1000  Under 38 U.S.C. 5121.

    (a) * * *

(Authority: 38 U.S.C. 5121(a)
* * * * *


Sec. 3.1600  [Amended]

    7. In Sec. 3.1600, paragraph (c), the second sentence is amended by 
removing ``(as defined in 38 U.S.C. 1701(4))'' and adding, in its 
place, ``(as described in 38 U.S.C. 1701(3))''; by removing ``1711(a), 
or'' and adding, in its place, ``1711(a); admission (transfer) to a 
non-VA facility (as described in 38 U.S.C. 1701(4)) for hospital care 
under the authority of 38 U.S.C. 1703;'' and by removing ``United 
States.'' and adding, in its place, ``United States; or admission 
(transfer) to a State nursing home for nursing home care with respect 
to which payment is authorized under the authority of 38 U.S.C. 
1741.''.

[FR Doc. 97-17226 Filed 6-30-97; 8:45 am]
BILLING CODE 8320-01-U