[Federal Register Volume 59, Number 141 (Monday, July 25, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-18004]


[[Page Unknown]]

[Federal Register: July 25, 1994]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 3

RIN 2900-AG83

 

Exclusions From Income (Tribal Trust Land Income)

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: The Department of Veterans Affairs (VA) has amended its 
adjudication regulations concerning income exclusions. The purpose of 
the rule is to implement recent legislation excluding from countable 
income under federal programs up to $2,000 per year of income received 
by an American Indian beneficiary from trust or restricted lands.

EFFECTIVE DATE: This amendment is effective January 1, 1994, the date 
specified in Pub. L. 103-66.

FOR FURTHER INFORMATION CONTACT:
Paul Trowbridge, Consultant, Regulations Staff, Compensation and 
Pension Service, Veterans Benefits Administration, 810 Vermont Avenue, 
NW., Washington, DC 20420, telephone (202) 233-3005.

SUPPLEMENTARY INFORMATION: VA administers several income-based benefit 
programs under which a claimant's countable income determines the rate 
of VA benefits payable. 38 CFR 3.271 states that payments of any kind 
from any source shall be counted as income for purposes of the Improved 
Pension program unless specifically excluded under Sec. 3.272. 38 CFR 
3.261(a)(1) states that total income from business, investment, and 
rents is countable income for purposes of the Parents' Dependency and 
Indemnity Compensation program and prior pension programs.
    In Precedent Opinion 76-90 dated July 18, 1990, the VA General 
Counsel held that although Indian trust lands were an excludable 
resource for purposes of net worth determinations, rental income from 
these lands received by beneficiaries of VA's income-based benefit 
programs is considered income for VA purposes.
    Section 13736 of Public Law 103-66 amended 25 U.S.C. 1408 to 
provide that up to $2,000 per year of income received from trust or 
restricted lands shall be excluded from the income of individual 
Indians when determining eligibility for assistance from any Federal 
program.
    25 CFR 151.2(d) defines ``trust land'' as land the title to which 
is held in trust by the United States for an individual Indian or a 
tribe. 25 CFR 151.2(e) defines ``restricted land'' as land the title to 
which is held by an individual Indian or a tribe and which can only be 
alienated or encumbered by the owner with the approval of the Secretary 
of the Interior.
    We are amending 38 CFR 3.261, 3.262, and 3.272 to show that up to 
$2,000 per year of income from trust or restricted lands is excludable 
from the countable income of an individual Indian. The purpose of this 
rule is to amend the regulations to be consistent with the provisions 
of Section 13736 of Public Law 103-66.
    A notice of proposed rulemaking is unnecessary because this 
amendment simply corresponds to the provisions of section 13736 of 
Public Law 103-66. Since a notice of proposed rulemaking is unnecessary 
and will not be published, this amendment is not a ``rule'' as defined 
in and made subject to the Regulatory Flexibility Act (RFA), 5 U.S.C. 
601(2). In any case, this regulatory amendment will not have a 
significant economic impact on a substantial number of small entities 
as they are defined in the RFA, 5 U.S.C. sections 601-612. This 
amendment will not directly affect any small entity.
    The catalog of Federal Domestic Assistance program numbers are 
64.104 and 64.105.

List of Subjects in 38 CFR Part 3

    Administrative practice and procedure, Claims, Handicapped, Health 
care, Pensions, Veterans.

    Approved: July 12, 1994.
Jesse Brown,
Secretary of Veterans Affairs.
    For the reasons set forth in the preamble, 38 CFR Part 3 is amended 
to read 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. 3.261, a new paragraph (a)(37) is added to read as 
follows:


Sec. 3.261  Character of income; exclusions and estates.

    (a) Income

                                                                                                                
                                                                                                                
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                                                  * * * * * * *                                                 
(37) Income received by American Indian                                                                         
 beneficiaries from Trust or Restricted lands                                                                   
 (Pub. L. 103-66)..............................     Excluded     Excluded     Excluded     Excluded     3.262(v)
                                                                                                                
                                                  * * * * *  **                                                 
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    3. In Sec. 3.262, paragraph (v) and its authority citation are 
added to read as follows:


Sec. 3.262  Evaluation of income.

* * * * *
    (v) Income received by American Indian beneficiaries from trust or 
restricted lands. There shall be excluded from income computation 
payments of up to $2,000 per calendar year to an individual Indian from 
trust lands or restricted lands as defined in 25 CFR 151.2. (January 1, 
1994) (Authority: Sec. 13736, Pub. L. 103-66; 107 Stat. 663)
    4. In Sec. 3.272, paragraph (r) and its authority citation are 
added to read as follows:


Sec. 3.272  Exclusions from income.

* * * * *
    (r) Income received by American Indian beneficiaries from trust or 
restricted lands. Income of up to $2,000 per calendar year to an 
individual Indian from trust lands or restricted lands as defined in 25 
CFR 151.2. (January 1, 1994) (Authority: Sec. 13736, Pub. L. 103-66; 
107 Stat. 633)

[FR Doc. 94-18004 Filed 7-22-94; 8:45 am]
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