[Federal Register Volume 59, Number 140 (Friday, July 22, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-17815]


[[Page Unknown]]

[Federal Register: July 22, 1994]


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Part II





Department of Labor





_______________________________________________________________________



Office of the Secretary



_______________________________________________________________________



29 CFR Part 15



Regulations Governing Administrative Claims Under the Federal Tort 
Claims Act and Related Statutes; Revision; Proposed Rule
DEPARTMENT OF LABOR

Office of the Secretary

29 CFR Part 15

RIN 1290-AA13

 

Revision of Regulations Governing Administrative Claims Under the 
Federal Tort Claims Act and Related Statutes

agency: Department of Labor (DOL), Office of the Secretary.

action: Proposed rule.

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summary: This document gives notice of the proposed revision of the 
DOL's regulations governing administrative claims submitted to DOL 
pursuant to the Federal Tort Claims Act (FTCA) and the Military 
Personnel and Civilian Employees' Claims Act (MPCECA), and for payment 
of claims arising out of the operation of the Job Corps. These 
regulations are being revised to reflect previous delegations of 
authority to the Counsel for Claims and to the Regional Solicitors and 
Associate Regional Solicitors to issue determinations on claims under 
the statutes covered by these regulations, to clarify the manner in 
which organizational units of the Department provide administrative 
assistance to the Office of the Solicitor in regard to claims and 
litigation under these statutes and to clarify and provide further 
examples of the manner in which MPCECA claims are submitted and 
determined. The regulations are also being amended to reflect a change 
in statutory authority for payment of claims arising out of operation 
of the Job Corps.

dates: Written comments must be received by September 20, 1994.

addresses: Written comments should be submitted, in triplicate, to 
Claims Unit, Division of Employee Benefits, Office of the Solicitor, 
U.S. Department of Labor, suite S4325, 200 Constitution Avenue NW., 
Washington, DC 20210.

for further information contact: Jeffrey L. Nesvet, Counsel for Claims, 
Division of Employee Benefits, Office of the Solicitor, U.S. Department 
of Labor, suite S4325, 200 Constitution Avenue NW., Washington, DC 
20210, (202) 219-4405.

supplementary information: The Federal Tort Claims Act (FTCA) 
surrenders the sovereign immunity of the United States for the 
negligent or wrongful act or omission of a Government employee acting 
within the scope of his or her employment. The Military Personnel and 
Civilian Employees' Claims Act (MPCECA) authorizes payment of claims of 
employees of the Government for loss of, or damage to, property 
incident to Government service. The Job Training Partnership Act (JTPA) 
authorizes payment of claims arising out of the operation of the Job 
Corps that are not cognizable under the FTCA. Part 15 of title 29 of 
the Code of Federal Regulations currently contains regulations 
implementing these three claims authorities.
    Subpart A of part 15 sets forth regulations for claims under the 
FTCA. It is being revised to reflect previous delegations of authority 
to the Counsel for Claims to issue determinations of claims seeking 
damages in amounts exceeding $25,000 and to the Regional Solicitors and 
Associate Regional Solicitors to issue determinations of claims that 
arose within their jurisdictions seeking damages in amounts up to 
$25,000. Subpart A is also being amended to provide that all FTCA 
claims for amounts up to $25,000 should be filed with the official duty 
station of the employee whose act or omission forms the basis of the 
claim.
    Subpart A is also being amended to clarify and provide specific 
directions concerning the manner in which organizational units of the 
Department provide assistance to the Office of the Solicitor in regard 
to FTCA claims and litigation. A number of non-substantive editorial 
changes are also being made to the language of these provisions.
    Subpart B of part 15 sets forth regulations for claims under the 
MPCECA. It is being revised to reflect previous delegations of 
authority to the Counsel for Claims and to the Regional Solicitors and 
Associate Regional Solicitors. It is also being revised to reflect an 
amendment to the MPCECA increasing the maximum amount payable on a 
claim.
    Subpart B is being amended to clarify the manner in which claims 
are submitted and calculated and to provide further illustrations of 
allowable claims and those not allowable under the MPCECA. Thus, 
provisions are being added clarifying that both filing of a claim and 
determination of a claim must be in writing and that a claim is not 
required to contain a demand for a specific sum of money. Each MPCECA 
claimant will be required to provide a statement from his or her 
immediate supervisor that possession of the property in question was 
reasonable, useful or proper and its loss or damage was incident to 
service. Additional examples of property for which reimbursement is not 
available are being added such as intangible property, real property 
and commercial property. A provision is also being added to recognize 
that claimants may be reimbursed for any sales tax incurred in 
connection with the repair of an item.
    Subpart B is being revised to exclude payment for loss of, or 
damage to, cellular telephones, fax machines, computers and related 
hardware and software, unless the loss is incident to fire, flood, 
hurricane, other natural disaster or by theft from authorized quarters 
(as limited by Sec. 15.13(c)(1)) or unless it is being shipped as part 
of a change in duty station paid for by the Department. Subpart B is 
also being revised to provide that an alternative work location at 
which an employee is performing duties pursuant to an approved 
Flexiplace agreement shall be considered an official duty station for 
purposes of this subtitle. The minimum amount of loss necessary to have 
a claim allowed is being raised from $10 to $25.
    Subpart B is also being amended to provide that at the discretion 
of the official involved, a claimant may be required to turn over to 
the United States an item alleged to have been damaged beyond 
economical repair and to provide that current replacement cost and 
depreciated value are to be determined by use of publicly available 
adjustment rates or through use of other reasonable methods at the 
discretion of the deciding official. A number of non-substantive 
editorial changes are also being made to the language of subpart B.
    Subpart C is being revised to reflect a change in the statutory 
authority for claims arising out of the operation of the Job Corps from 
the Comprehensive Training and Employment Act of 1973 to the JTPA. It 
also is being revised to reflect previous delegations of authority to 
the Regional Solicitors and Associate Regional Solicitors and to 
clarify the manner in which a claim is submitted. Subpart C is also 
being revised to provide that the determination of a claim shall be 
provided to the claimant in writing. A number of non-substantive 
editorial changes are also being made to the language of subpart C.

Regulatory Evaluation

    This proposal is not considered a significant regulatory action 
under Executive Order 12866. In accordance with the Regulatory 
Flexibility Act (5 U.S.C. 605(b)), the undersigned certify that this 
proposal will not have a significant economic impact on a substantial 
number of small entities.
    This proposal contains no collection of information requirements 
under the Paperwork Reduction Act (44 U.S.C. 3501).

List of Subjects in 29 CFR Part 15

    Tort claims, Indemnity payments, Administrative practice and 
procedure, Government employees.

    For the reasons set out above, DOL proposes to revise 29 CFR part 
15 to read as follows:

PART 15--ADMINISTRATIVE CLAIMS UNDER THE FEDERAL TORT CLAIMS ACT 
AND RELATED STATUTES

Subpart A--Claims Against the Government Under the Federal Tort Claims 
Act
Sec.
15.1  Scope and Purpose
15.2  Definitions
15.3  Administrative claim; who may file
15.4  Administrative claim; where to file
15.5  Administrative claim; evidence or information to substantiate
15.6  Administrative action
15.7  Determination of claims
15.8  Referral to Department of Justice
15.9  Final denial of claim
15.10  Action on approved claim
Subpart B--Claims Under the Military Personnel and Civilian Employees' 
Claims Act of 1964
15.11  General provisions
15.12  Filing of claims
15.13  Allowable claims
15.14  Restrictions on certain claims
15.15  Unallowable claims
15.16  Claims involving carriers or insurers
15.17  Claims procedures
15.18  Computation of award and finality of settlement
15.19  Attorney fees
15.20  Reconsideration
Subpart C--Claims Arising Out of the Operation of the Job Corps
15.30  Scope and purpose
15.31  Allowable claims
15.32  Claim procedure

    Authority: 28 U.S.C. 2672; 28 CFR 14.11; 31 U.S.C. 3721; 29 
U.S.C. 1706(b)

Subpart A--Claims Against the Government Under the Federal Tort 
Claims Act


Sec. 15.1   Scope and purpose.

    (a) The purpose of this subpart is to set forth regulations 
relating to claims asserted under the Federal Tort Claims Act, as 
amended, accruing on or after January 18, 1967, for money damages 
against the United States for injury to or loss of property or personal 
injury or death caused by the negligent or wrongful act or omission of 
an officer or employee of the Department of Labor while acting within 
the scope of his or her office or employment.
    (b) This subpart is issued subject to and consistent with 
applicable regulations on administrative claims under the Federal Tort 
Claims Act issued by the Attorney General (28 CFR part 14).


Sec. 15.2   Definitions.

    (a) Department means the Department of Labor.
    (b) Organizational unit means the jurisdictional area of each 
Assistant Secretary and each office head reporting directly to the 
Secretary.
    (c) Act means the Federal Tort Claims Act, as amended, (28 U.S.C. 
1346(b), 28 U.S.C. 2671, et seq.)


Sec. 15.3  Administrative claim; who may file.

    (a) A claim for injury to or loss of property may be presented by 
the owner of the property, his or her duly authorized agent, or his or 
her legal representative.
    (b) A claim for personal injury may be presented by the injured 
person, his or her duly authorized agent, or his or her legal 
representative.
    (c) A claim for death may be presented by the executor or 
administrator of the decedant's estate, or by any other person legally 
entitled to assert such a claim in accordance with applicable State 
law.
    (d) A claim for loss wholly compensated by an insurer with the 
rights of a subrogee may be presented by the insurer. A claim for loss 
partially compensated by an insurer with the rights of a subrogee may 
be presented by the insurer or the insured individually, as their 
respective interests appear, or jointly. Whenever an insurer presents a 
claim asserting the rights of a subrogee, it shall present with its 
claim appropriate evidence that it has the rights of a subrogee.
    (e) A claim presented by an agent or legal representative shall be 
presented in the name of the claimant, be signed by the agent or 
representative, show the title or legal capacity of the person signing 
and be accompanied by evidence of his or her authority to present a 
claim on behalf of the claimant as agent, executor, administrator, 
parent, guardian, or legal representative.


Sec. 15.4  Administrative claim; where to file.

    (a) For the purposes of this subpart, a claim shall be deemed to 
have been presented when the Department receives, at a place designated 
in paragraph (b) of this section, a properly executed ``Claim for 
Damage, Injury, or Death'' on Standard Form 95, or other written 
notification of an incident accompanied by a claim for money damages in 
a sum certain for injury to or loss of property or personal injury or 
death by reason of the incident.
    (b) In any case where the claim seeks damages in excess of $25,000 
or which involves an alleged act or omission of an employee of the 
Department whose official duty station is in Washington, DC, a claimant 
shall mail or deliver his or her claim for money damages for injury to 
or loss of property or personal injury or death caused by the negligent 
or wrongful act or omission of any employee of the Department while 
acting within the scope of his or her office or employment hereunder to 
the Counsel for Claims, Office of the Solicitor of Labor, U.S. 
Department of Labor, 200 Constitution Avenue, NW., suite S4325, 
Washington, DC 20210.
    (c) In all other cases, the claimant shall address his or her claim 
to the official duty station of the employee whose act or omission 
forms the basis of the complaint.


Sec. 15.5  Administrative claim; evidence or information to 
substantiate.

    (a) Personal injury. In support of a claim for personal injury, 
including pain and suffering, the claimant is required to submit the 
following evidence or information:
    (1) A written report by the attending physician or dentist setting 
forth the nature and extent of the injury, nature and extent of 
treatment, any degree of temporary or permanent impairment, the 
prognosis, period of hospitalization, if any, and any diminished 
earning capacity. In addition, the claimant may be required to submit 
to a physical or mental examination by a physician employed or 
designated by the Department or another Federal agency. A copy of the 
report of the examining physician shall be made available to the 
claimant upon the claimant's written request: Provided, That he or she 
has, upon request, furnished the report referred to in the first 
sentence of this subparagraph and has made, or agrees to make available 
to the Department, any other physician's report previously or 
thereafter made of the physical or mental condition which is the 
subject matter of the claim.
    (2) Itemized bills for medical, dental and hospital, or any other, 
expenses incurred or itemized receipts of payment for such expenses.
    (3) If the prognosis reveals the necessity for future treatment, a 
statement of expected expenses for such treatment.
    (4) If a claim is made for loss of time from employment, a written 
statement from his or her employer showing actual time lost from 
employment, whether he or she is a full-or part-time employee, and 
wages or salary actually lost.
    (5) If a claim is made for loss of income and the claimant is self-
employed, documentary evidence showing the amount of earnings lost. For 
example, income tax returns for several years prior to the injury in 
question and the year in which the injury occurred may be used to 
indicate or measure lost income; a statement of how much it did or 
would cost the claimant to hire someone else to do the same work he or 
she was doing at the time of injury might also be used in measuring 
lost income.
    (6) Any other evidence or information which may have a bearing on 
either the responsibility of the United States for the personal injury 
or the damages claimed.
    (b) Death. In support of a claim based on death, the claimant may 
be required to submit the following evidence or information:
    (1) An authenticated death certificate or other competent evidence 
showing cause of death, date of death, and age of the decedent.
    (2) Decedent's employment or occupation at the time of death, 
including his or her monthly or yearly salary or earnings (if any), and 
the duration of his or her last employment or occupation.
    (3) Full name, address, birth date, kinship and marital status of 
the decedent's survivors, including identification of those survivors 
who were dependent for support upon the decedent at the time of his or 
her death.
    (4) Degree of support afforded by the decedent to each survivor 
dependent upon him or her for support at the time of his or her death.
    (5) Decedent's general physical and mental condition before his or 
her death.
    (6) Itemized bills for medical and burial expenses incurred by 
reason of the incident causing death, or itemized receipts of payment 
for such expenses.
    (7) If damages for pain and suffering prior to death are claimed, a 
physician's detailed statement specifying the injuries suffered, 
duration of pain and suffering, any drugs administered for pain, and 
the decedent's physical condition in the interval between injury and 
death.
    (8) Any other evidence or information which may have a bearing on 
either the responsibility of the United States for the death or damages 
claimed.
    (c) Property damages. In support of a claim for injury to or loss 
of property, real or personal, the claimant may be required to submit 
the following evidence or information with respect to each item of 
property:
    (1) Proof of ownership.
    (2) A detailed statement of the amount claimed.
    (3) An itemized receipt of payment for necessary repairs or 
itemized written estimates of the cost of such repairs.
    (4) A statement listing date of purchase, purchase price, and 
salvage value where repair is not economical.
    (5) Any other evidence or information which may have a bearing on 
either the responsibility of the United States for the injury to or 
loss of property or the damages claimed.


Sec. 15.6  Administrative action.

    (a) Investigation. When an organizational unit learns of an 
incident that reasonably can be expected to result in an allegation of 
harm caused to an individual or organization by an alleged negligent 
act or omission by an employee of that organizational unit or when it 
learns of an administrative claim or of litigation alleging such harm, 
it has the responsibility to fully investigate the incident and to take 
all actions necessary to preserve all relevant documents and other 
evidence. Each organizational unit should institute appropriate 
procedures to ensure that notification of such incidents are reported 
to the office responsible for ensuring that evidence is preserved and 
investigation undertaken.
    (b) Notification. Upon receipt of an administrative claim under the 
Act or of notice of litigation seeking damages for an alleged negligent 
act or omission of an employee of the Department acting within the 
scope of his or her employment, the Office of the Solicitor shall 
notify the organizational unit responsible for the activity which gave 
rise to the claim or litigation and shall provide a copy of the 
administrative claim or the complaint filed in the litigation.
    (c) Administrative Report. (1) Upon receiving notification of an 
administrative claim or litigation, the organizational unit or units 
involved in the circumstances of the claim or litigation shall be 
responsible for preparing an Administrative Report and forwarding it to 
the Office of the Solicitor in a timely manner. The Administrative 
Report shall be in the form of a single memorandum in narrative form 
with attachments. It should contain all of the following elements, 
unless permission is obtained from the Office of the Solicitor to 
dispense with a particular element:
    (i) A brief explanation of the organization and operation of the 
program involved including statutory authority and applicable 
regulations;
    (ii) A complete description of the events which gave rise to the 
claim or litigation, including a specific response to every allegation 
in the claim or litigation;
    (iii) Any information available regarding the questions of whether 
the claimant or plaintiff actually suffered the harm alleged in the 
claim or litigation and what individual or organization caused any harm 
which appears to have occurred;
    (iv) Any information available regarding the damages claimed;
    (v) Any policy reasons which the organizational unit wishes to 
advance for or against settlement of the claim or litigation; and
    (vi) Details of any claims the Department may have against the 
claimant or plaintiff, whether or not they appear to be related to the 
subject matter of the claim or litigation.
    (2) A copy of all documents relevant to the issues involved in the 
claim or litigation should be attached to each copy of the 
Administrative Report. Original records should not be forwarded to the 
Office of the Solicitor unless specifically requested. They should be 
preserved, however and remain available for litigation if necessary.
    (3) Organizational units should ensure that all Administrative 
Reports are either prepared or reviewed by an official of the 
organizational unit who was not personally involved in the incident in 
question prior to filing of the claim or suit.
    (d) Litigation. During the course of any litigation, organizational 
units are responsible for providing assistance to the Office of the 
Solicitor in responding to discovery requests such as interrogatories 
and requests to produce documents, for providing assistance in 
analyzing factual and program issues, for providing witnesses for 
depositions and trials, and for assistance in producing affidavits and 
exhibits for use in the litigation.


Sec. 15.7  Determination of claims.

    (a) Authority to consider, ascertain, adjust, determine, compromise 
and settle claims. The Counsel for Claims shall have the authority to 
consider, ascertain, adjust, determine, compromise and settle claims 
pursuant to the Federal Tort Claims Act which involve an alleged 
negligent or wrongful act or omission of an employee whose official 
duty station is the Department's national office in Washington, DC, or 
which exceed $25,000 in amount, or which involve a new precedent, a new 
point of law, or a question of policy. Regional Solicitors and the 
Associate Regional Solicitors are authorized to consider, ascertain, 
adjust, determine, compromise and settle, claims arising in their 
respective jurisdictions pursuant to the Federal Tort Claims Act which 
do not exceed $25,000 in amount and which do not involve a new 
precedent, new point of law, or a question of policy.
    (b) Payment. Any award, compromise, or settlement in the amount of 
$2,500 or less made pursuant to this section shall be paid by the 
Secretary of Labor out of appropriations available to the Department. 
Payment of an award, compromise, or settlement in an amount in excess 
of $2,500 made pursuant to this subpart shall be made in accordance 
with 28 CFR 14.10.


Sec. 15.8  Referral to Department of Justice.

    An award, compromise or settlement of a claim under Sec. 2672 title 
28, United States Code, and this subpart, in excess of $25,000 may be 
effected only with the prior written approval of the Attorney General 
or his designee. For the purpose of this subpart, a principal claim and 
any derivative or subrogated claim shall be treated as a single claim.


Sec. 15.9  Final denial of claim.

    Final denial of an administrative claim under this subpart shall be 
in writing, and notification of denial shall be sent to the claimant, 
or his or her attorney or legal representative by certified or 
registered mail. The notification of final denial shall include a 
statement of the reasons for the denial and shall include a statement 
that, if the claimant is dissatisfied with the Department's action, he 
or she may file suit in an appropriate U.S. District Court not later 
than 6 months after the date of mailing of the notification.


Sec. 15.10  Action on approved claim.

    (a) Payment. Payment of a claim approved under this subpart is 
contingent upon claimant's execution of a ``Voucher for Payment Under 
Federal Tort Claims Act,'' Standard Form 1145. When a claimant is 
represented by an attorney, the voucher for payment shall designate 
both the claimant and his or her attorney as payees, and the check 
shall be delivered to the attorney whose address shall appear on the 
voucher.
    (b) Acceptance. Acceptance by the claimant, or his or her agent or 
legal representative, of an award, compromise, or settlement under 
Sec. 2672 or Sec. 2677 of title 28, U.S.C., is final and conclusive on 
the claimant, his or her agent or legal representative, and any other 
person on whose behalf or for whose benefit the claim has been 
presented and constitutes a complete release of any claim against the 
United States and against any office or employee of the Government 
whose act or omission gave rise to the claim by reason of the same 
subject matter.

Subpart B--Claims Under the Military Personnel and Civilian 
Employees' Claims Act of 1964


Sec. 15.11  General provisions.

    (a) Scope and purpose. This subpart applies to all claims filed by 
or on behalf of employees of the Department for loss of or damage to 
personal property incident to their service with the Department under 
the Military Personnel and Civilian Employees' Claims Act of 1964, 
(hereinafter referred to as the Act). A claim must be substantiated and 
the possession of the property determined to be reasonable, useful or 
proper.
    (b) Payment. The maximum amount that can be paid for any claim 
under the Act is $40,000 and property may be replaced in kind at the 
option of the Government.
    (c) Policy. The Department is not an insurer and does not 
underwrite all personal property losses that an employee may sustain. 
Employees are encouraged to carry private insurance to the maximum 
extent practicable to avoid losses which may not be recoverable from 
the Department. The procedure set forth in this subpart are designed to 
enable the claimant to obtain the proper amount of compensation for the 
loss or damage. Failure of claimant to comply with thee procedures may 
reduce or preclude payment of the claim under this subpart.


Sec. 15.12  Filing of claims.

    (a) Who may file. (1) A claim may be made pursuant to this subpart 
by an employee or by a spouse or authorized agent, or legal 
representative on behalf of the employee. If the employee is deceased, 
the claim may be filed by a survivor in the following order of 
preference: spouse, children, parent, brother or sister or the 
authorized agent or legal representative of such person or persons.
    (2) A claim may not be made hereunder by or for the benefit of a 
subrogee, assignee, conditional vendor or other third party.
    (b) Where to file. A claim hereunder must be presented in writing. 
If the claimant's official duty station is at the Department's national 
office in Washington, DC, or if the claim is for an amount in excess of 
$25,000, the claim should be filed with the Counsel for Claims, Office 
of the Solicitor of Labor, U.S. Department of Labor, Suite S4325, 200 
Constitution Avenue, NW., Washington, DC 20210. In all other cases the 
claimant shall address the claim to the regional or branch office of 
the Solicitor of Labor servicing the claimant's official duty station.
    (c) Evidence required. The claimant is responsible for 
substantiating ownership or possession, the facts surrounding the loss 
or damage, and the value of the property. Any claim filed hereunder 
must be accompanied by the following:
    (1) A written statement, signed by the claimant or his or her 
authorized agent, setting forth the circumstances under which the 
damage or loss occurred. This statement shall also include:
    (i) A description of the type, design, model number or other 
identification of the property.
    (ii) The date of purchase or acquisition and the original cost of 
the property.
    (iii) The location of the property when the loss or damage 
occurred.
    (iv) The value of the property when lost or damaged.
    (v) The actual or estimated cost of the repair of any damaged item.
    (vi) The purpose of and authority for travel, if the loss or damage 
occurred incident to transportation or to the use of a motor vehicle.
    (vii) Any and all available information as to the party responsible 
for the loss or damage, if such party is someone other than the 
claimant, and all information as to insurance contracts, whether held 
by the claimant or by the party responsible.
    (2) Copies of all available and appropriate documents such as bills 
of sale, estimates of repairs, or travel orders. In the case of an 
automobile, the claimant must file two estimates of repair or a 
certified paid bill showing the damage incurred and the cost of all 
parts, labor and other items necessary to the repair of the vehicle or 
a statement from an authorized dealer or repair garage showing that the 
cost of such repairs exceeds the value of the vehicle.
    (3) A copy of the power of attorney or other authorization if the 
claim is filed by someone other than the employee.
    (4) A statement from the employee's immediate supervisor confirming 
that possession of the property was reasonable, useful or proper under 
the circumstances and that the damage or loss was incident to service.
    (d) Time limitations. A claim under this part may be allowed only 
if it is filed in writing within 2 years after accrual of the claim. 
For the purpose of this part, a claim accrues at the later of:
    (1) the time of the accident or incident causing the loss or 
damage,
    (2) such time as the loss or damage should have been discovered by 
the claimant by the exercise of due diligence or
    (3) such time as cause preventing filing no longer exists or as war 
or armed conflict ends, whichever is earlier, if a claim otherwise 
accrues during war or an armed conflict or has accrued within two years 
before war or an armed conflict begins, and for cause shown.


Sec. 15.13  Allowable claims.

    (a) A claim may be allowed only if the property involved was being 
used incident to service with the Department and:
    (1) The damage or loss was not caused wholly or partly by the 
negligent or wrongful act or omission of the claimant, his or her 
agent, the members of his or her family, or his or her private employee 
(the standard to be applied is that of reasonable care under the 
circumstances); and
    (2) The possession of the property lost or damaged and the quantity 
and the quality possessed is determined to have been reasonable, useful 
or proper under the circumstances; and
    (3) The claim is substantiated by proper and convincing evidence.
    (b) Claims which are otherwise allowable under this subpart shall 
not be disallowed solely because the claimant was not the legal owner 
of the property for which the claim is made.
    (c) Subject to the conditions in paragraph (a) of this section and 
the other provisions of this subpart, any claim for damage to, or loss, 
of personal property incident to service with the Department may be 
considered and allowed. For the purpose of subpart B of this part, an 
alternative work location at which an employee is performing duties 
pursuant to an approved Flexiplace agreement shall be considered an 
official duty station. The following are examples of the principal 
types of claims which may be allowed, but these examples are not 
exclusive and other types of claims may be allowed, unless hereinafter 
excluded:
    (1) Property or damage in quarters or other authorized places. 
Claims may be allowable for damage to, or loss of, property arising 
from fire, flood, hurricane, other natural disaster, theft, or other 
unusual occurrence, while such property is located at:
    (i) Quarters within the 50 States or the District of Columbia that 
were assigned to the claimant or otherwise provided in kind by the 
United States; or
    (ii) Quarters outside the 50 States and the District of Columbia 
that were occupied by the claimant, whether or not they were assigned 
or otherwise provided in kind by the United States, except when the 
claimant is a civilian employee who is a local inhabitant; or
    (iii) Any warehouse, office, working area or other place (except 
quarters) authorized or apparently authorized for the reception or 
storage of property.
    (2) Transportation or travel losses. Claims may be allowed for 
damage to, or loss of, property incident to transportation or storage 
pursuant to order or in connection with travel under orders, including 
property in the custody of a carrier, an agent or agency of the 
Government, or the claimant.
    (3) Mobile homes. Claims may be allowed for damage to, or loss of, 
mobile homes and their contents under the provisions of paragraph 
(c)(2) of this section. Claims for structural damage to mobile homes, 
other than that caused by collision, and damage to contents of mobile 
homes resulting from such structural damage, must contain conclusive 
evidence that the damage was not caused by structural deficiency of the 
mobile home and that it was not overloaded. Claims for damage to, or 
loss of, tires mounted on mobile homes will not be allowed, except in 
cases of collision, theft or vandalism.
    (4) Enemy action or public service. Claims may be allowed for 
damage to, or loss of, property as a direct consequence of:
    (i) Enemy action or threat thereof, or combat, guerilla, 
brigandage, or other belligerent activity, or unjust confiscation by a 
foreign power or its nationals.
    (ii) Action by the claimant to quiet a civil disturbance or to 
alleviate a public disaster.
    (iii) Efforts by the claimant to save human life or Government 
property.
    (5) Property used for the benefit of the Government. Claims may be 
allowed for damage to, or loss, of property when used for the benefit 
of the Government at the request of, or with the knowledge and consent 
of superior authority.
    (6) Clothing and accessories. Claims may be allowed for damage to, 
or loss, of property when used for damage to or loss of, clothing and 
accessories customarily worn on the person, such as eyeglasses, hearing 
aids, or dentures.
    (7) Expenses incident to repair. Claimants may be reimbursed for 
the payment of any sales tax incurred in connection with repairs to an 
item. The costs of obtaining estimates of repair (subject to the 
limitations set forth in Sec. 15.14(c)) are also allowable.


Sec. 15.14  Restrictions on certain claims.

    Claims of the type described in this section are only allowable 
subject to the restrictions noted:
    (a) Money or currency. Claims may be allowed for loss of money or 
currency (which includes coin collections) only when lost incident to 
fire, flood, hurricane, other natural disaster, or by theft from 
quarters (as limited by Sec. 15.13(c)(1)). In incidents of theft from 
quarters, it must be conclusively shown that the quarters were locked 
at the time of the theft. Reimbursement for loss of money or currency 
is limited to an amount which is determined to have been reasonable for 
the claimant to have had in his or her possession at the time of the 
loss.
    (b) Government property. Claims may only be allowed for property 
owned by the United States for which the claimant is financially 
responsible to an agency of the Government other than the Department.
    (c) Estimate fees. Claims may include fees paid to obtain estimates 
of repairs only when it is clear that an estimate could not have been 
obtained without paying a fee. In that case, the fee may be allowed 
only in an amount determined to be reasonable in relation to the value 
of the property or the cost of the repairs.
    (d) Automobiles and other motor vehicles. Claims may only be 
allowed for damage to, or loss of automobiles and other motor vehicles 
if:
    (1) Such motor vehicles were required to be used for official 
Government business (official Government business, as used here, does 
not include travel, or parking incident thereto, between quarters and 
office, or use of vehicles for the convenience of the owner. However, 
it does include travel, and parking incident thereto, between quarters 
and an assigned place of duty specifically authorized by the employee's 
supervisor as being more advantageous to the Government,); or
    (2) Shipment of such motor vehicles was being furnished or provided 
by the Government, subject to the provisions of Sec. 15.16.
    (e) Computers and electronics. Claims may be allowed for loss of, 
or damage to, cellular phones, fax machines, computers and related 
hardware and software only when lost or damaged incident to fire, 
flood, hurricane, other natural disaster, or by theft from quarters (as 
limited by Sec. 15.13((c)(1)) or unless it is being shipped as a part 
of a change of duty station paid for by the Department. In incidents of 
theft from quarters, it must be conclusively shown that the quarters 
were locked at the time of the theft.


Sec. 15.15  Unallowable claims.

    Claims are not allowable for the following:
    (a) Unassigned quarters in United States. Property loss or damage 
in quarters occupied by the claimant within the 50 States or the 
District of Columbia that were not assigned to him or otherwise 
provided in kind by the United States.
    (b) Business property. Property used for business or profit.
    (c) Unserviceable property. Wornout or unserviceable property.
    (d) Illegal possession. Property acquired, possessed or transferred 
in violation of the law or in violation of applicable regulations or 
directives.
    (e) Articles of extraordinary value. Valuable articles, such as 
cameras, watches, jewelry, furs or other articles of extraordinary 
value. This prohibition does not apply to articles in the personal 
custody of the claimant or articles properly checked, if reasonable 
protection or security measures have been taken by claimant.
    (f) Intangible property. Loss of property that has no extrinsic and 
marketable value but is merely representative or evidence of value, 
such as non-negotiable stock certificates, promissory notes, bonds, 
bills of lading, warehouse receipts, insurance policies, baggage 
checks, and bank books, is not compensable. Loss of a thesis, or other 
similar item, is compensable only to the extent of the out-of-pocket 
expenses incurred by the claimant in preparing the item such as the 
cost of the paper or other materials. No compensation is authorized for 
the time spent by the claimant in its preparation or for supposed 
literary value.
    (g) Incidental expenses and consequential damages. The Act and this 
subpart authorize payment for loss of or damage to personal property 
only. Except as provided in Sec. 15.13(c)(7), consequential damages or 
other types of loss or incidental expenses (such as loss of use, 
interest, carrying charges, cost of lodging or food while awaiting 
arrival of shipment, attorney fees, telephone calls, cost of 
transporting claimant or family members, inconvenience, time spent in 
preparation of claim, or cost of insurance premiums) are not 
compensable.
    (h) Real property. Damage to real property is not compensable. In 
determining whether an item is considered to be an item of personal 
property, as opposed to real property, normally, any movable item is 
considered personal property even if physically joined to the land.
    (i) Commercial property. Articles acquired or held for sale or 
disposition by other commercial transactions on more than an occasional 
basis, or for use in a private profession or business enterprise.
    (j) Commercial storage. Property stored at a commercial facility 
for the convenience of the claimant and at his or her expense.
    (k) Minimum amount. Loss or damage amounting to less than $25.


Sec. 15.16  Claims involving carriers or insurers.

    In the event the property which is the subject of the claim was 
lost or damaged while in the possession of a commercial carrier or was 
insured, the following procedures will apply:
    (a) Whenever property is damaged, lost or destroyed while being 
shipped pursuant to authorized travel orders, the owner must file a 
written claim for reimbursement with the last commercial carrier known 
or believed to have handled the goods, or the carrier known to be in 
possession of the property when the damage or loss occurred, according 
to the terms of its bill of lading or contract, before submitting a 
claim against the Government under this subpart.
    (b) Whenever property is damaged, lost or destroyed incident to the 
claimant's service and is insured in whole or in part, the claimant 
must make demand in writing against the insurer for reimbursement under 
the terms and conditions of the insurance coverage, prior to the filing 
of the claim against the Government.
    (c) Failure to make a demand on a carrier or insurer or to make all 
reasonable efforts to protect and prosecute rights available against a 
carrier or insurer and to collect the amount recoverable from the 
carrier or insurer may result in reducing the amount recoverable from 
the Government by the maximum amount which would have been recoverable 
from the carrier or insurer had the claim been timely or diligently 
prosecuted. However, no deduction will be made where the circumstances 
of the claimant's service preclude reasonable filing of such a claim or 
diligent prosecution, or the evidence indicates a demand was 
impracticable or would have been unavailing.
    (d) Following the submission of the claim against the carrier or 
insurer, the claimant may immediately submit his claim against the 
Government in accordance with the provisions of this subpart, without 
waiting until either final approval or denial of the claim is made by 
the carrier or insurer.
    (1) Upon submitting his or her claim, the claimant shall certify in 
his claim that he or she has or has not gained any recovery from a 
carrier or insurer, and enclose all correspondence pertinent thereto.
    (2) If final action has not been taken by the carrier or insurer on 
the claim, the claimant shall immediately notify them to address all 
correspondence in regard to the claim to the appropriate Office of the 
Solicitor of Labor.
    (3) The claimant shall advise the appropriate Office of the 
Solicitor of any action taken by the carrier or insurer on the claim 
and, upon request, shall furnish all correspondence, documents, and 
other evidence pertinent to the matter.
    (e) The claimant shall assign to the United States, to the extent 
of any payment on the claim accepted by him or her, all rights, title 
and interest in any claim he or she may have against any carrier, 
insurer, or other party arising out of the incident on which the claim 
against the United States is based. After payment of the claim by the 
United States, the claimant shall, upon receipt of any payment from a 
carrier or insurer, pay the proceeds to the United States to the extent 
of the payment received by him or her from the United States.
    (f) Where a claimant recovers for the loss from the carrier or 
insurer before his or her claim under this subpart is settled, the 
amount or recovery shall be applied to the claim as follows:
    (1) When the amount recovered from a carrier, insurer, or other 
third party is greater than or equal to the claimant's total loss as 
determined under this part, no compensation is allowable under this 
subpart.
    (2) When the amount recovered is less than such total loss, the 
allowable amount is determined by deducting the recovery from the 
amount of such total loss.
    (3) For this purpose, the claimant's total loss is to be determined 
without regard to the maximum payment limitations set forth in 
Sec. 15.11.However, if the resulting amount, after making this 
deduction, exceeds the maximum payment limitations, the claimant shall 
be allowed only the maximum amount set forth in Sec. 15.11.


Sec. 15.17  Claims procedures.

    (a) Award. The Counsel for Claims, the Regional Solicitors, and the 
Associate Regional Solicitors are authorized to consider, ascertain, 
adjust, determine, compromise and settle claims filed under this 
subpart that arose within their respective jurisdictions, except that 
any claim for an amount in excess of $25,000 shall fall within the 
exclusive jurisdiction of the Counsel for Claims.
    (b) Form of claim. Any writing received by the Office of the 
Solicitor within the time limits set forth in Sec. 15.12(d) will be 
accepted and considered a claim under the Act if it constitutes a 
demand for compensation from the Department. A demand is not required 
to be for a specific sum of money.
    (c) Notification. The determination upon the claim shall be 
provided to the claimant in writing by the deciding official.


Sec. 15.18  Computation of award and finality of settlement.

    (a) The amount allowable for damage to or loss of any item of 
property may not exceed the lowest of
    (1) The amount requested by the claimant for the item as a result 
of its loss, damage or the cost of its repair,
    (2) The actual or estimated cost of its repair, or
    (3) The actual value at the time of its loss, damage, or 
destruction. The actual value is determined by using the current 
replacement cost or the depreciated value of the item since its 
acquisition, whichever is lower, less any salvage value of the item in 
question.
    (b) Depreciation in value is determined by considering the type of 
article involved, its cost, its condition when damaged or lost, and the 
time elapsed between the date of acquisition and the date of damage or 
loss.
    (c) Current replacement cost and depreciated value are determined 
by use of publicly available adjustment rates or through use of other 
reasonable methods at the discretion of the official authorized to 
issue a determination upon the claim in question.
    (d) Replacement of lost or damaged property may be made in kind 
wherever appropriate.
    (e) At the discretion of the official authorized to issue the 
determination upon the claim in question, a claimant may be required to 
turn over an item alleged to have been damaged beyond economical repair 
to the United States, in which case no deduction for salvage value will 
be made in the calculation of actual value.
    (f) Notwithstanding any other provisions of law, settlement of 
claims under the Act are final and conclusive.


Sec. 15.19  Attorney fees.

    No more than 10 per centum of the amount paid in settlement of each 
individual claim submitted and settled under this subpart shall be paid 
or delivered to or received by any agent or attorney on account of 
services rendered in connection with that claim.


Sec. 15.20  Reconsideration.

    (a) Deciding official. While there is no appeal from the decision 
of the deciding official in regard to claims under the Act, the 
deciding official may always reconsider his or her determination of a 
claim.
    (b) Claimant. A claimant may request reconsideration from the 
deciding official by directing a written request for reconsideration to 
the deciding official within 180 days of the date of the original 
determination. The claimant must clearly state the factual or legal 
basis upon which he or she rests the request for a more favorable 
determination.
    (c) Notification. The determination upon the reconsideration will 
be provided to the claimant in writing by the deciding official.

Subpart C--Claims Arising Out of the Operation of the Job Corps


Sec. 15.30  Scope and purpose.

    (a) The purpose of this subpart is to set forth regulations 
relating to claims for damage to persons or property arising out of the 
operation of Job Corps which the Secretary of Labor finds to be a 
proper charge against the United States but which are not cognizable 
under the Federal Tort Claims Act.
    (b) This subpart further amplifies the regulatory provisions set 
forth in 20 CFR 638.526(b) regarding such claims.


Sec. 15.31  Allowable claims.

    (a)(1) A claim for damage to persons or property arising out of an 
act or omission of a student enrolled in the Job Corps may be 
considered pursuant to Sec. 436(b) of the Job Training Partnership Act 
(29 U.S.C. 1706(b)):
    (i) If the act or omission which gave rise to the claim took place 
at the center to which the student involved was assigned, or
    (ii) If the student involved was not within the geographical limits 
of his hometown and was within 100 miles of the center to which he or 
she was assigned, or while he or she was on authorized travel to or 
from the center.
    (2) The claim may be paid if the deciding official, in his or her 
discretion, finds the claim to be a proper charge against the United 
States resulting from an act or omission of a student enrolled in the 
Job Corps.
    (b) A claim for damage to person or property hereunder may not be 
paid if the claim is cognizable under the Federal Tort Claims Act (28 
U.S.C. 2677).
    (c) A claim for damage to person or property may be adjusted and 
settled hereunder in an amount not exceeding $1500.


Sec. 15.32  Claim procedures.

    (a) Claim. A claim under this subpart must be in writing and signed 
by the claimant or by an authorized representative. It must be received 
by the Office of the Solicitor within two years of the date upon which 
the claim accrued.
    (b) Award. The Regional Solicitors and Associate Regional 
Solicitors are authorized to consider, ascertain, adjust, determine, 
compromise and settle claims filed under this subpart that arose within 
their respective jurisdictions.
    (c) Notification. The determination upon the claim shall be 
provided to the claimant in writing by the deciding official.
    (d) Reconsideration. Reconsideration of a determination under this 
subpart shall be available pursuant to the procedures and limitations 
set forth in Sec. 15.20.

    Signed at Washington, DC, this 14th day of July 1994.
Robert B. Reich,
Secretary of Labor.
[FR Doc. 94-17815 Filed 7-21-94; 8:45 am]
BILLING CODE 4510-23-M