[Federal Register Volume 68, Number 206 (Friday, October 24, 2003)]
[Rules and Regulations]
[Pages 60851-60853]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-26880]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 3

RIN 2900-AJ52


Exclusions from Income and Net Worth Computations

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: This document amends the Department of Veterans Affairs (VA) 
adjudication regulations to exclude from income and net worth 
computations in the pension and parents' dependency and indemnity 
compensation programs any money received under the Victims of Crime Act 
of 1984. This amendment is necessary to conform the regulations to 
statutory provisions.

DATES: Effective Date: October 24, 2003.

FOR FURTHER INFORMATION CONTACT: Don England, Chief, Regulations Staff, 
Compensation and Pension Service (211A), Veterans Benefits 
Administration, 810 Vermont Avenue, NW., Washington, DC 20420, 
telephone (202) 273-7210. This is not a toll-free number.

SUPPLEMENTARY INFORMATION: All income is countable when VA determines 
entitlement to income-based benefits unless specifically excluded by 
law. Section 234(b) of the Antiterrorism and Effective Death Penalty 
Act of 1996, Public Law 104-132, amended section 1403 of the Victims of 
Crime Act of 1984, Public Law 98-473, (42 U.S.C. 10602) to exclude 
amounts received as compensation under the provisions of Public Law No. 
98-473 from income for purposes of determining eligibility for 
assistance under any federally funded program that provides medical or 
financial assistance that becomes necessary in full or in part because 
of the commission of a crime against the claimant for such assistance 
(42 U.S.C. 10602(c)).
    Sections 1522 and 1543 of title 38, United States Code, and 38 CFR 
3.250(a)(2) provide that the corpus of the estate of a veteran, a 
veteran's spouse, or other claimant, as the case may be, will be taken 
into consideration to determine whether part of the corpus of the 
estate can be used for the

[[Page 60852]]

individual's maintenance for purposes of establishing eligibility for 
certain veterans' benefits. Section 622(c) of the ``USA Patriot Act,'' 
Public Law No. 107-56, amended the Victims of Crime Act of 1984 to also 
exclude amounts received as crime victim compensation from 
consideration when determining an individual's resources or assets 
(i.e., net worth) for purposes of assistance under any federally funded 
program. This document amends 38 CFR 3.261, 3.262, 3.263, 3.272 and 
3.275 to reflect these statutory changes.
    This final rule merely restates statutory provisions. Accordingly, 
there is a basis for dispensing with prior notice and comment and the 
delayed effective date provisions of 5 U.S.C. 552 and 553.

Unfunded Mandates

    The Unfunded Mandates Reform Act requires, at 2 U.S.C. 1532, that 
agencies to assess anticipated costs and benefits before developing any 
rule that may result in an expenditure by State, local, or tribal 
governments, in the aggregate, or by the private sector of $100 million 
or more in any given year. This final rule would have no such effect on 
State, local, or tribal governments, or the private sector.

Executive Order 12866

    This document has been reviewed by the Office of Management and 
Budget under Executive Order 12866.

Paperwork Reduction Act

    This document contains no provisions constituting a collection of 
information under the Paperwork Reduction Act (44 U.S.C. 3501-3521).

Regulatory Flexibility Act

    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.

Catalog of Federal Domestic Assistance Program Numbers

    The Catalog of Federal Domestic Assistance program numbers for this 
final rule are 64.104, 64.105, and 64.110.

List of Subjects in 38 CFR Part 3

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

    Approved: August 4, 2003.
Anthony J. Principi,
Secretary of Veterans Affairs.

0
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

0
1. The authority citation for part 3, subpart A continues to read as 
follows:

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


0
2. In Sec.  3.261, paragraph (a) is amended by adding entry (41) at the 
end of the table to read as follows:


Sec.  3.261  Character of income; exclusions and estates.

* * * * *
    (a) * * *

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                                                          Dependency and     Pension; old-law    Pension; section
                                       Dependency           indemnity           (veterans,        306 (veterans,
             Income                    (parents)           compensation      surviving spouses   surviving spouses          See
                                                            (parents)          and children)       and children)
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                                                                      * * * * * * *
(41) Income received under the    Excluded \1\.......  Excluded \1\.......  Excluded \1\......  Excluded \1\......  Sec.   3.262(z)
 Victims of Crime Act of 1984
 (42 U.S.C. 10601-10605)..
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ The compensation received through a crime victim compensation program will be excluded from income computations unless the total amount of
  assistance received from all federally funded programs is sufficient to fully compensate the claimant for losses suffered as a result of the crime.

* * * * *

0
3. Section 3.262 is amended by adding paragraph (z) immediately 
following the first authority citation at the end of paragraph (y) to 
read as follows:


Sec.  3.262  Evaluation of income.

* * * * *
    (z) Victims of Crime Act. For purposes of old law pension, section 
306 pension, and parents' dependency and indemnity compensation, 
amounts received as compensation under the Victims of Crime Act of 1984 
will not be considered income unless the total amount of assistance 
received from all federally funded programs is sufficient to fully 
compensate the claimant for losses suffered as a result of the crime.

(Authority: 42 U.S.C. 10602(c))
* * * * *

0
4. Section 3.263 is amended by adding paragraph (h) immediately 
following the first authority citation at the end of paragraph (g) to 
read as follows:


Sec.  3.263  Corpus of estate; net worth.

* * * * *
    (h) Victims of Crime Act. There shall be excluded from the corpus 
of estate or net worth of a claimant any amounts received as 
compensation under the Victims of Crime Act of 1984 unless the total 
amount of assistance received from all federally funded programs is 
sufficient to fully compensate the claimant for losses suffered as a 
result of the crime.

(Authority: 42 U.S.C. 10602(c))
* * * * *

0
5. Section 3.272 is amended by adding paragraph (v) immediately 
following the authority citation at the end of paragraph (u) to read as 
follows:


Sec.  3.272  Exclusions from income.

* * * * *
    (v) Victims of Crime Act. Amounts received as compensation under 
the Victims of Crime Act of 1984 unless the total amount of assistance 
received from all federally funded programs is sufficient to fully 
compensate the claimant for losses suffered as a result of the crime.

(Authority: 42 U.S.C. 10602(c))

0
6. Section 3.275 is amended by adding paragraph (j) immediately 
following the

[[Page 60853]]

authority citation at the end of paragraph (i) to read as follows:


Sec.  3.275  Criteria for evaluating net worth.

* * * * *
    (j) Victims of Crime Act. There shall be excluded from the corpus 
of estate or net worth of a claimant any amounts received as 
compensation under the Victims of Crime Act of 1984 unless the total 
amount of assistance received from all federally funded programs is 
sufficient to fully compensate the claimant for losses suffered as a 
result of the crime.

(Authority: 42 U.S.C. 10602(c))

[FR Doc. 03-26880 Filed 10-23-03; 8:45 am]
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