[Federal Register Volume 62, Number 36 (Monday, February 24, 1997)]
[Rules and Regulations]
[Pages 8166-8170]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-4390]


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DEPARTMENT OF DEFENSE

Department of the Navy

32 CFR Part 723


Board for Correction of Naval Records

AGENCY: Department of the Navy, DoD.

ACTION: Final rule.

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SUMMARY: The Department of the Navy is amending the Procedures for the 
Board for Correction of Naval Records. This revision incorporates 
format changes and clarifies various minor provisions of the part.

DATES: Effective date: February 24, 1997.

FOR FURTHER INFORMATION CONTACT: W. Dean Pfeiffer, Executive Director, 
Board for Correction of Naval Records, 2 Navy Annex, Washington, DC 
20370-5100, (703) 614-1402.

SUPPLEMENTARY INFORMATION: The Department of the Navy has determined 
that this rule is not a major rule because it will not have an annual 
effect on the economy of $100 million or more. The Assistant Secretary 
of the Navy (Manpower and Reserve Affairs) certifies that this rule is 
exempt from the requirements of the Regulatory Flexibility Act, 5 
U.S.C. 601-611, and does not have a significant economic impact on 
small entities as defined by the Act. This rule imposes no obligatory 
information requirements beyond internal Navy use. The proposed rule 
was published for comment on October 12, 1995, at 60 FR 53153. No 
comments or objections to the proposed rule were received. The final 
rule contains no substantive changes from the proposed rule.

List of Subjects in 32 CFR Part 723

    Administrative practice and procedure, Claims, Military personnel.

    Accordingly, part 723 of chapter VI of title 32 of the Code of 
Federal Regulations is revised as follows:

PART 723--BOARD FOR CORRECTION OF NAVAL RECORDS

Sec.
723.1  General provisions.
723.2  Establishment, function and jurisdiction of the Board.
723.3  Application for correction.
723.4  Appearance before the board; notice; counsel; witnesses; 
access to records.
723.5  Hearing.
723.6  Action by the Board.
723.7  Action by the Secretary.
723.8  Staff action.
723.9  Reconsideration.
723.10  Settlement of claims.
723.11  Miscellaneous provisions.

    Authority: 10 U.S.C. 1034, 1552.


Sec. 723.1  General Provisions.

    This part sets up procedures for correction of naval and marine 
records by the Secretary of the Navy acting through the Board for 
Correction of Naval Records (BCNR or the Board) to remedy error or 
injustice. It describes how to apply for correction of naval and marine 
records and how the BCNR considers applications. It defines the Board's 
authority to act on applications. It directs collecting and maintaining 
information subject to the Privacy Act of 1974 authorized by 10 U.S.C. 
1034 and 1552.


Sec. 723.2  Establishment, function and jurisdiction of the Board.

    (a) Establishment and composition. Under 10 U.S.C. 1034 and 1552, 
the Board for Correction of Naval Records is established by the 
Secretary of the Navy. The Board consists of civilians of the executive 
part of the Department of the Navy in such number, not less than three, 
as may be appointed by the Secretary and who shall serve at the 
pleasure of the Secretary. Three members present shall constitute a 
quorum of the Board. The Secretary of the Navy will designate one 
member as Chair. In the absence or incapacity of

[[Page 8167]]

the Chair, an Acting Chair chosen by the Executive Director shall act 
as Chair for all purposes.
    (b) Function. The Board is not an investigative body. Its function 
is to consider applications properly before it for the purpose of 
determining the existence of error or injustice in the naval records of 
current and former members of the Navy and Marine Corps, to make 
recommendations to the Secretary or to take corrective action on the 
Secretary's behalf when authorized.
    (c) Jurisdiction. The Board shall have jurisdiction to review and 
determine all matters properly brought before it, consistent with 
existing law.


Sec. 723.3  Application for correction.

    (a) General requirements. (1) The application for correction must 
be submitted on DD 149 (Application for Correction of Military Record) 
or exact facsimile thereof, and should be addressed to: Board for 
Correction of Naval Records, Department of the Navy, 2 Navy Annex, 
Washington, DC 20370-5100. Forms and other explanatory matter may be 
obtained from the Board upon request.
    (2) Except as provided in paragraph (a)(3) of this section, the 
application shall be signed by the person requesting corrective action 
with respect to his/her record and will either be sworn to or will 
contain a provision to the effect that the statements submitted in the 
application are made with full knowledge of the penalty provided by law 
for making a false statement or claim. (18 U.S.C. 287 and 1001)
    (3) When the record in question is that of a person who is 
incapable of making application, or whose whereabouts is unknown, or 
when such person is deceased, the application may be made by a spouse, 
parent, heir, or legal representative. Proof of proper interest shall 
be submitted with the application.
    (b) Time limit for filing application. Applications for correction 
of a record must be filed within 3 years after discovery of the alleged 
error or injustice. Failure to file within the time prescribed may be 
excused by the Board if it finds it would be in the interest of justice 
to do so. If the application is filed more than 3 years after discovery 
of the error or injustice, the application must set forth the reason 
why the Board should find it in the interest of justice to excuse the 
failure to file the application within the time prescribed.
    (c) Acceptance of applications. An application will be accepted for 
consideration unless:
    (1) The Board lacks jurisdiction.
    (2) The Board lacks authority to grant effective relief.
    (3) The applicant has failed to comply with the filing requirements 
of paragraphs (a)(l), (a)(2), or (a)(3) of this section.
    (4) The applicant has failed to exhaust all available 
administrative remedies.
    (5) The applicant has failed to file an application within 3 years 
after discovery of the alleged error or injustice and has not provided 
a reason or reasons why the Board should find it in the interest of 
justice to excuse the failure to file the application within the 
prescribed 3-year period.
    (d) Other proceedings not stayed. Filing an application with the 
Board shall not operate as a stay of any other proceedings being taken 
with respect to the person involved.
    (e) Consideration of application. (1) Each application accepted for 
consideration and all pertinent evidence of record will be reviewed by 
a three member panel sitting in executive session, to determine whether 
to authorize a hearing, recommend that the records be corrected without 
a hearing, or to deny the application without a hearing. This 
determination will be made by majority vote.
    (2) The Board may deny an application in executive session if it 
determines that the evidence of record fails to demonstrate the 
existence of probable material error or injustice. The Board relies on 
a presumption of regularity to support the official actions of public 
officers and, in the absence of substantial evidence to the contrary, 
will presume that they have properly discharged their official duties. 
Applicants have the burden of overcoming this presumption but the Board 
will not deny an application solely because the record was made by or 
at the direction of the President or the Secretary in connection with 
proceedings other than proceedings of a board for the correction of 
military or naval records. Denial of an application on the grounds of 
insufficient evidence to demonstrate the existence of probable material 
error or injustice is final subject to the provisions for 
reconsideration contained in Sec. 723.9.
    (3) When an original application or a request for further 
consideration of a previously denied application is denied without a 
hearing, the Board's determination shall be made in writing and include 
a brief statement of the grounds for denial.
    (4) The brief statement of the grounds for denial shall include the 
reasons for the determination that relief should not be granted, 
including the applicant's claims of constitutional, statutory and/or 
regulatory violations that were rejected, together with all the 
essential facts upon which the denial is based, including, if 
applicable, factors required by regulation to be considered for 
determination of the character of and reason for discharge. Further the 
Board shall make a determination as to the applicability of the 
provisions of the Military Whistleblower Protection Act (10 U.S.C. 
1034) if it is invoked by the applicant or reasonably raised by the 
evidence. Attached to the statement shall be any advisory opinion 
considered by the Board which is not fully set out in the statement. 
The applicant will also be advised of reconsideration procedures.
    (5) The statement of the grounds for denial, together with all 
attachments, shall be furnished promptly to the applicant and counsel, 
who shall also be informed that the name and final vote of each Board 
member will be furnished or made available upon request. Classified or 
privileged material will not be incorporated or attached to the Board 
statement; rather, unclassified or nonprivileged summaries of such 
material will be so used and written explanations for the substitution 
will be provided to the applicant and counsel.


Sec. 723.4  Appearance before the board; notice; counsel; witnesses; 
access to records.

    (a) General. In each case in which the Board determines a hearing 
is warranted, the applicant will be entitled to appear before the Board 
either in person or by counsel of his/her selection or in person with 
counsel. Additional provisions apply to cases processed under the 
Military Whistleblower Protection Act (10 U.S.C. 1034).
    (b) Notice. (1) In each case in which a hearing is authorized, the 
Board's staff will transmit to the applicant a written notice stating 
the time and place of hearing. The notice will be mailed to the 
applicant, at least 30 days prior to the date of hearing, except that 
an earlier date may be set where the applicant waives his/her right to 
such notice in writing.
    (2) Upon receipt of the notice of hearing, the applicant will 
notify the Board in writing at least 15 days prior to the date set for 
hearing as to whether he/she will be present at the hearing and will 
indicate to the Board the name of counsel, if represented by counsel, 
and the names of such witnesses as he/she intends to call. Cases in 
which the applicant notifies the Board that he/she does not desire to 
be present at the hearing will be considered in accordance with 
Sec. 723.5(b)(2).

[[Page 8168]]

    (c) Counsel. As used in this part, the term ``counsel'' will be 
construed to include members in good standing of the federal bar or the 
bar of any state, accredited representatives of veterans' organizations 
recognized by the Secretary of Veterans Affairs under 38 U.S.C. 3402, 
or such other persons who, in the opinion of the Board, are considered 
to be competent to present equitably and comprehensively the request of 
the applicant for correction, unless barred by law. Representation by 
counsel will be at no cost to the government.
    (d) Witnesses. The applicant will be permitted to present witnesses 
in his/her behalf at hearings before the Board. It will be the 
responsibility of the applicant to notify his/her witnesses and to 
arrange for their appearance at the time and place set for hearing. 
Appearance of witnesses will be at no cost to the government.
    (e) Access to records. (1) It is the responsibility of the 
applicant to procure such evidence not contained in the official 
records of the Department of the Navy as he/she desires to present in 
support of his/her case.
    (2) Classified or privileged information may be released to 
applicants only by proper authorities in accordance with applicable 
regulations.
    (3) Nothing in this part authorizes the furnishing of copies of 
official records by the Board. Requests for copies of these records 
should be submitted in accordance with applicable regulations governing 
the release of information. The BCNR can provide a requestor with 
information regarding procedures for requesting copies of these records 
from the appropriate retention agency.


Sec. 723.5  Hearing

    (a) Convening of board. The Board will convene, recess and adjourn 
at the call of the Chair or Acting Chair.
    (b) Conduct of hearing. (1) The hearing shall be conducted by the 
Chair or Acting Chair, and shall be subject to his/her rulings so as to 
ensure a full and fair hearing. The Board shall not be limited by legal 
rules of evidence but shall maintain reasonable bounds of competency, 
relevancy, and materiality.
    (2) If the applicant, after being duly notified, indicates to the 
Board that he/she does not desire to be present or to be represented by 
counsel at the hearing, the Board will consider the case on the basis 
of all the material before it, including, but not limited to, the 
application for correction filed by the applicant, any documentary 
evidence filed in support of such application, any brief submitted by 
or in behalf of the applicant, and all available pertinent records.
    (3) If the applicant, after being duly notified, indicates to the 
Board that he/she will be present or be represented by counsel at the 
hearing, and without good cause and timely notice to the Board, the 
applicant or representative fails to appear at the time and place set 
for the hearing or fails to provide the notice required by 
Sec. 723.4(b)(2), the Board may consider the case in accordance with 
the provisions of paragraph (b)(2) of this section, or make such other 
disposition of the case as is appropriate under the circumstances.
    (4) All testimony before the Board shall be given under oath or 
affirmation. The proceedings of the Board and the testimony given 
before it will be recorded verbatim.
    (c) Continuance. The Board may continue a hearing on its own 
motion. A request for continuance by or in behalf of the applicant may 
be granted by the Board if a continuance appears necessary to insure a 
full and fair hearing.


Sec. 723.6  Action by the Board.

    (a) Deliberations, findings, conclusions, and recommendations. (1) 
Only members of the Board and its staff shall be present during the 
deliberations of the Board.
    (2) Whenever, during the course of its review of an application, it 
appears to the Board's satisfaction that the facts have not been fully 
and fairly disclosed by the records or by the testimony and other 
evidence before it, the Board may require the applicant or military 
authorities to provide such further information as it may consider 
essential to a complete and impartial determination of the facts and 
issues.
    (3) Following a hearing, or where the Board determines to recommend 
that the record be corrected without a hearing, the Board will make 
written findings, conclusions and recommendations. If denial of relief 
is recommended following a hearing, such written findings and 
conclusions will include a statement of the grounds for denial as 
described in Sec. 723.3(e)(4). The name and final vote of each Board 
member will be recorded. A majority vote of the members present on any 
matter before the Board will constitute the action of the Board and 
shall be so recorded.
    (4) Where the Board deems it necessary to submit comments or 
recommendations to the Secretary as to matters arising from but not 
directly related to the issues of any case, such comments and 
recommendations shall be the subject of separate communication. 
Additionally, in Military Whistleblower Protection Act cases, any 
recommendation by the Board to the Secretary that disciplinary or 
administrative action be taken against any Navy official based on the 
Board's determination that the official took reprisal action against 
the applicant will not be made part of the Board's record of 
proceedings or furnished the applicant but will be transmitted to the 
Secretary as a separate communication.
    (b) Minority report. In case of a disagreement between members of 
the Board a minority report will be submitted, either as to the 
findings, conclusions or recommendation, including the reasons 
therefor.
    (c) Record of proceedings. Following a hearing, or where the Board 
determines to recommend that the record be corrected without a hearing, 
a record of proceedings will be prepared. Such record shall indicate 
whether or not a quorum was present, and the name and vote of each 
member present. The record shall include the application for relief, a 
verbatim transcript of any testimony, affidavits, papers and documents 
considered by the Board, briefs and written arguments, advisory 
opinions, if any, minority reports, if any, the findings, conclusions 
and recommendations of the Board, where appropriate, and all other 
papers, documents, and reports necessary to reflect a true and complete 
history of the proceedings.
    (d) Withdrawal. The Board may permit an applicant to withdraw his/
her application without prejudice at any time before its record of 
proceedings is forwarded to the Secretary.
    (e) Delegation of authority to correct certain naval records. (1) 
With respect to all petitions for relief properly before it, the Board 
is authorized to take final corrective action on behalf of the 
Secretary, unless:
    (i) Comments by proper naval authority are inconsistent with the 
Board's recommendation;
    (ii) The Board's recommendation is not unanimous; or
    (iii) It is in the category of petitions reserved for decision by 
the Secretary of the Navy.
    (2) The following categories of petitions for relief are reserved 
for decision by the Secretary of the Navy:
    (i) Petitions involving records previously reviewed or acted upon 
by the Secretary wherein the operative facts remained substantially the 
same;
    (ii) Petitions by former commissioned officers or midshipmen to 
change the character of, and/or the reason for, their discharge; or,

[[Page 8169]]

    (iii) Such other petitions as, in the determination of Office of 
the Secretary or the Executive Director, warrant Secretarial review.
    (3) The Executive Director after ensuring compliance with this 
section, will announce final decisions on applications decided under 
this section.


Sec. 723.7  Action by the Secretary.

    (a) General. The record of proceedings, except in cases finalized 
by the Board under the authority delegated in Sec. 723.6(e), and those 
denied by the Board without a hearing, will be forwarded to the 
Secretary who will direct such action as he or she determines to be 
appropriate, which may include the return of the record to the Board 
for further consideration. Those cases returned for further 
consideration shall be accompanied by a brief statement setting out the 
reasons for such action along with any specific instructions. If the 
Secretary's decision is to deny relief, such decision shall be in 
writing and, unless he or she expressly adopts in whole or in part the 
findings, conclusions and recommendations of the Board, or a minority 
report, shall include a brief statement of the grounds for denial. See 
Sec. 723.3(e)(4).
    (b) Military Whistleblower Protection Act. The Secretary will 
ensure that decisions in cases involving the Military Whistleblower 
Protection Act are issued 180 days after receipt of the case and will, 
unless the full relief requested is granted, inform applicants of their 
right to request review of the decision by the Secretary of Defense. 
Applicants will also be informed:
    (1) Of the name and address of the official to whom the request for 
review must be submitted.
    (2) That the request for review must be submitted within 90 days 
after receipt of the decision by the Secretary of the Navy.
    (3) That the request for review must be in writing and include:
    (i) The applicant's name, address and telephone number;
    (ii) A copy of the application to the Board and the final decision 
of the Secretary of the Navy; and
    (iii) A statement of the specific reasons the applicant is not 
satisfied with the decision of the Secretary of the Navy.
    (4) That the request must be based on the Board record; request for 
review based on factual allegations or evidence not previously 
presented to the Board will not be considered under this paragraph but 
may be the basis for reconsideration by the Board under Sec. 723.9.


Sec. 723.8  Staff action.

    (a) Transmittal of final decisions granting relief. (1) If the 
final decision of the Secretary is to grant the applicant's request for 
relief the record of proceedings shall be returned to the Board for 
disposition. The Board shall transmit the finalized record of 
proceedings to proper naval authority for appropriate action. Similarly 
final decisions of the Board granting the applicant's request for 
relief under the authority delegated in Sec. 723.6(e), shall also be 
forwarded to the proper naval authority for appropriate action.
    (2) The Board shall transmit a copy of the record of proceedings to 
the proper naval authority for filing in the applicant's service record 
except where the effect of such action would be to nullify the relief 
granted. In such cases no reference to the Board's decision shall be 
made in the service record or files of the applicant and all copies of 
the record of proceedings and any related papers shall be forwarded to 
the Board and retained in a file maintained for this purpose.
    (3) The addressees of such decisions shall report compliance 
therewith to the Executive Director.
    (4) Upon receipt of the record of proceedings after final action by 
the Secretary, or by the Board acting under the authority contained in 
Sec. 723.6(e), the Board shall communicate the decision to the 
applicant. The applicant is entitled, upon request, to receive a copy 
of the Board's findings, conclusions and recommendations.
    (b) Transmittal of final decisions denying relief. If the final 
decision of the Secretary or the Board is to deny relief, the following 
materials will be made available to the applicant:
    (1) A statement of the findings, conclusions, and recommendations 
made by the Board and the reasons therefor;
    (2) Any advisory opinions considered by the Board;
    (3) Any minority reports; and
    (4) Any material prepared by the Secretary as required in 
Sec. 723.7. Moreover, applicant shall also be informed that the name 
and final vote of each Board member will be furnished or made available 
upon request and that he/she may submit new and material evidence or 
other matter for further consideration.


Sec. 723.9  Reconsideration.

    After final adjudication, further consideration will be granted 
only upon presentation by the applicant of new and material evidence or 
other matter not previously considered by the Board. New evidence is 
defined as evidence not previously considered by the Board and not 
reasonably available to the applicant at the time of the previous 
application. Evidence is material if it is likely to have a substantial 
effect on the outcome. All requests for further consideration will be 
initially screened by the Executive Director of the Board to determine 
whether new and material evidence or other matter (including, but not 
limited to, any factual allegations or arguments why the relief should 
be granted) has been submitted by the applicant. If such evidence or 
other matter has been submitted, the request shall be forwarded to the 
Board for a decision. If no such evidence or other matter has been 
submitted, the applicant will be informed that his/her request was not 
considered by the Board because it did not contain new and material 
evidence or other matter.


Sec. 723.10  Settlement of claims.

    (a) Authority. (1) The Department of the Navy is authorized under 
10 U.S.C. 1552 to pay claims for amounts due to applicants as a result 
of corrections to their naval records.
    (2) The Department of the Navy is not authorized to pay any claim 
heretofore compensated by Congress through enactment of a private law, 
or to pay any amount as compensation for any benefit to which the 
claimant might subsequently become entitled under the laws and 
regulations administered by the Secretary of Veterans Affairs.
    (b) Application for settlement. (1) Settlement and payment of 
claims shall be made only upon a claim of the person whose record has 
been corrected or legal representative, heirs at law, or beneficiaries. 
Such claim for settlement and payment may be filed as a separate part 
of the application for correction of the record.
    (2) When the person whose record has been corrected is deceased, 
and where no demand is presented by a duly appointed legal 
representative of the estate, payments otherwise due shall be made to 
the surviving spouse, heir or beneficiaries, in the order prescribed by 
the law applicable to that kind of payment, or if there is no such law 
covering order of payment, in the order set forth in 10 U.S.C. 2771; or 
as otherwise prescribed by the law applicable to that kind of payment.
    (3) Upon request, the applicant or applicants shall be required to 
furnish requisite information to determine their status as proper 
parties to the claim for purposes of payment under applicable 
provisions of law.
    (c) Settlement. (1) Settlement of claims shall be upon the basis of 
the decision and recommendation of the

[[Page 8170]]

Board, as approved by the Secretary or his designee. Computation of the 
amounts due shall be made by the appropriate disbursing activity. In no 
case will the amount found due exceed the amount which would otherwise 
have been paid or have become due under applicable laws had no error or 
injustice occurred. Earnings received from civilian employment, self 
employment or any income protection plan for such employment during any 
period for which active duty pay and allowances are payable will be 
deducted from the settlement. To the extent authorized by law and 
regulation, amounts found due may be reduced by the amount of any 
existing indebtedness to the Government arising from military service.
    (2) Prior to or at the time of payment, the person or persons to 
whom payments are to be made shall be advised by the disbursing 
activity of the nature and amount of the various benefits represented 
by the total settlement and shall be advised further that acceptance of 
such settlement shall constitute a complete release by the claimants 
involved of any claim against the United States on account of the 
correction of the record.
    (d) Report of settlement. In every case where payment is made, the 
amount of such payment and the names of the payee or payees shall be 
reported to the Executive Director.


Sec. 723.11  Miscellaneous provisions.

    (a) Expenses. No expenses of any nature whatsoever voluntarily 
incurred by the applicant, counsel, witnesses, or by any other person 
in the applicant's behalf, will be paid by the Government.
    (b) Indexing of decisions. (1) Documents sent to each applicant and 
counsel in accordance with Sec. 723.3(e)(5) and Sec. 723.8(a)(4), 
together with the record of the votes of Board members and all other 
statements of findings, conclusions and recommendations made on final 
determination of an application by the Board or the Secretary will be 
indexed and promptly made available for public inspection and copying 
at the Armed Forces Discharge Review/Correction Boards Reading Room 
located on the Concourse of the Pentagon Building in Room 2E123, 
Washington, DC.
    (2) All documents made available for public inspection and copying 
shall be indexed in a usable and concise form so as to enable the 
public to identify those cases similar in issue together with the 
circumstances under and/or reasons for which the Board and/or Secretary 
have granted or denied relief. The index shall be published quarterly 
and shall be available for public inspection and distribution by sale 
at the Reading Room located on the Concourse of the Pentagon Building 
in Room 2E123, Washington, DC. Inquiries concerning the index or the 
Reading Room may be addressed to the Chief, Micromation Branch/Armed 
Forces Discharge Review/Correction Boards Reading Room, Crystal Mall 4, 
1941 Jefferson Davis Highway, Arlington, Virginia 22202.
    (3) To the extent necessary to prevent a clearly unwarranted 
invasion of personal privacy, identifying details of the applicant and 
other persons will be deleted from the documents made available for 
public inspection and copying. Names, addresses, social security 
numbers and military service numbers must be deleted. Deletions of 
other information which is privileged or classified may be made only if 
a written statement of the basis for such deletion is made available 
for public inspection.

    Dated: January 30, 1997.
D.E. Koenig, Jr.,
LCDR, JAGC, USN, Federal Register Liaison Officer.
[FR Doc. 97-4390 Filed 2-21-97; 8:45 am]
BILLING CODE 3810-FF-P