[Federal Register Volume 71, Number 152 (Tuesday, August 8, 2006)]
[Rules and Regulations]
[Pages 44915-44920]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-12787]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 3

RIN 2900-AM27


Veterans Benefits Act of 2003 and Veterans Benefits Improvement 
Act of 2004

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 incorporate certain provisions from the 
Veterans Benefits Act of 2003 and the Veterans Benefits Improvement Act 
of 2004. Specifically, this document amends VA's adjudication 
regulations regarding plot or interment allowance eligibility, 
forfeiture of benefits, dependency and indemnity compensation payments, 
the Radiation Exposure Compensation Act of 1990, as amended, exclusions 
from income for pension purposes, benefits for persons disabled by 
treatment or vocational rehabilitation provided by VA, effective date 
of death pension, and diseases subject to presumptive service 
connection. This document also amends VA's adjudication regulations to 
reflect the establishment of the Social Security Administration as an 
independent agency and that the Coast Guard is now under the 
jurisdiction of the Secretary of Homeland Security. These amendments 
are necessary to conform the regulations to the statutory amendments.

DATES: Effective Date: August 8, 2006.
    Applicability Dates: In accordance with statutory provisions, the 
following amendments in this final rule will be applied as follows. The 
amendment to 38 CFR 3.309 is applicable to payments for periods 
beginning on or after March 26, 2002. The amendment to 38 CFR 3.715 is 
applicable to compensation and dependency and indemnity compensation 
payments for months beginning April 1, 2002. The amendment to 38 CFR 
3.1(g)(4) is applicable March 1, 2003. The amendments to 38 CFR 3.152, 
3.153, and 3.714 are applicable December 16, 2003. The amendments to 38 
CFR 3.1600 and 3.1604 are applicable to claims filed on or after 
December 16, 2003. The amendment to 38 CFR 3.903 is applicable to 
claims filed on or after December 17, 2003. The amendment to 38 CFR 
3.272 is applicable for periods on or after December 10, 2004. The 
amendments to 38 CFR 3.362 and 3.800 are applicable in the case of a 
judgment, settlement, or compromise covered by 38 U.S.C. 1151(b)(1) 
that becomes final on or after December 10, 2004. The amendment to 38 
CFR 3.400 is applicable to claims filed on or after December 10, 2004. 
The amendment to 38 CFR 3.808 is applicable to benefits awarded 
pursuant to these regulations by VA on or after December 10, 2004. The 
amendment to 38 CFR 3.10 is applicable to payments beginning January 1, 
2005.

FOR FURTHER INFORMATION CONTACT: Maya Ferrandino, Consultant, 
Compensation and Pension Service, Policy and Regulations Staff, 
Veterans Benefits Administration, Department of Veterans Affairs, 810 
Vermont Avenue, NW., Washington, DC 20420, (202) 273-7210.

SUPPLEMENTARY INFORMATION: The Veterans Benefits Act of 2003 and the 
Veterans Benefits Improvement Act of 2004, Public Law 108-183 and 
Public Law 108-454 respectively, added and

[[Page 44916]]

revised sections of title 38 of the United States Code, which addresses 
veterans benefits law. To ensure consistency with statutory changes, VA 
regulations will be amended as further described below.
    Section 501 of the Veterans Benefits Act of 2003 amended 38 U.S.C. 
2303(b)(1) and (2), Death in Department facility; plot allowance, and 
38 U.S.C. 2307, Death from service-connected disability, to allow 
States to receive a plot or interment allowance for the interment, in a 
state cemetery or portion thereof used solely for the burial of 
veterans, of any veteran eligible for burial in a national cemetery. 
Under prior law, the allowance was payable only for veterans of a war, 
veterans discharged for disability incurred or aggravated in the line 
of duty, veterans entitled to VA compensation or pension, and certain 
other veterans. VA's regulation regarding payment of burial expenses 
for deceased veterans is 38 CFR 3.1600 and VA's regulation regarding 
payment of a plot or interment allowance to a State is 38 CFR 3.1604(c) 
and (d). This document amends Sec. Sec.  3.1600(a) and (f) and 
3.1604(c) and (d)(1)(i) and (5) to provide, in accordance with the 
statutory amendments, that States may be paid a plot or interment 
allowance on behalf of veterans buried in a state veterans' cemetery 
who were eligible for burial in a national cemetery and that the 
allowance is payable to States in addition to burial or funeral 
expenses to which they are eligible. The amendments to 38 CFR 3.1600 
and 3.1604 are applicable to claims for an allowance filed on or after 
December 16, 2003.
    Section 705(a) of the Veterans Benefits Act of 2003 amended 38 
U.S.C. 6105(b)(2), Forfeiture for subversive activities, by adding 
certain offenses under title 18, United States Code, for which an 
individual forfeits his or her right to gratuitous benefits under the 
laws administered by the Secretary of Veterans Affairs. Section 
6105(b)(2) as amended by the Veterans Benefits Act of 2003 applies to 
claims filed on or after December 17, 2003. Public Law 108-183, Sec.  
705(b), 117 Stat. 2672. VA's regulation regarding forfeiture of VA 
benefits for subversive activities is 38 CFR 3.903. This document 
amends Sec.  3.903(a) to reflect the statutory change by adding 18 
U.S.C. 175, 229, 831, 1091, 2332a, and 2332b to the current list of 18 
U.S.C. sections cited in the regulation.
    Section 708(c) of the Veterans Benefits Act of 2003 amended various 
sections of title 38 of the United States Code to reflect the 
establishment of the Social Security Administration as an independent 
agency by replacing references to the Secretary of Health and Human 
Services with references to the Commissioner of Social Security, and 
striking ``Department of Health and Human Services'' and inserting 
``Social Security Administration'' each time it appears in the 
provisions. This document amends 38 CFR 3.152(a), 3.153, and 3.714(f) 
to reflect the statutory changes.
    In a similar manner, this document amends 38 CFR 3.1(g)(4), to 
reflect that the Coast Guard is now under the jurisdiction of the 
Secretary of Homeland Security, not the Secretary of Transportation. 
See Homeland Security Act of 2002, Public Law 107-296, Sec.  1704(d), 
116 Stat. 2135, 2314. The authorizing statute for Sec.  3.1(g)(4) is 38 
U.S.C. 101(25)(D), which was amended by section 1704(d) of Public Law 
107-296 to reflect that the Coast Guard is under the jurisdiction of 
the Secretary of Homeland Security. To ensure consistency with section 
101(25)(D), we are amending the corresponding regulation, Sec.  
3.1(g)(4).
    Section 301 of the Veterans Benefits Improvement Act of 2004 
amended 38 U.S.C. 1311, Dependency and indemnity compensation to a 
surviving spouse, by adding subsection (e), which provides for a $250 
increase in the monthly rate of dependency and indemnity compensation 
to which a surviving spouse with one or more children below the age of 
18 is otherwise entitled. The increased rate is payable for the two-
year period beginning on the date on which entitlement to dependency 
and indemnity compensation commenced. The increase ceases the first 
month after the month in which all children of the surviving spouse 
have attained the age of 18. The increase in dependency and indemnity 
compensation under section 1311(e) is applicable to payments beginning 
January 1, 2005. Public Law 108-454, Sec.  301, 118 Stat. 3610. This 
document amends Sec.  3.10(e) by adding Sec.  3.10(e)(4) to reflect the 
statutory change.
    We note that the Veterans Benefits Act of 2003 added a different 
subsection (e) to section 1311 than the subsection (e) added by the 
Veterans Benefits Improvement Act of 2004. There is no indication that 
Congress intended to replace section 1311(e) as added by the Veterans 
Benefits Act of 2003 with section 1311(e) as added by the Veterans 
Benefits Improvement Act of 2004, and for the purposes of this 
rulemaking document, VA assumes that Congress intended to include both 
paragraphs designated as subsection (e) in the statute.
    Section 302(a) of the Veterans Benefits Improvement Act of 2004 
amended 38 U.S.C. 1112(c) to provide that a radiation-exposed veteran's 
receipt of a payment under the Radiation Exposure Compensation Act of 
1990 as amended (42 U.S.C. 2210 note) (RECA) does not deprive such a 
veteran of receipt of VA compensation. Section 302(b) of the Veterans 
Benefits Improvement Act of 2004 amended 38 U.S.C. 1310, Deaths 
entitling survivors to dependency and indemnity compensation, to 
provide that a person's receipt of a RECA payment does not deprive the 
person of receipt of dependency and indemnity compensation. However, 
the statutory amendment also provides for an offset of RECA payments 
against VA compensation awarded pursuant to 38 U.S.C. 1112(c)(1) and 
dependency and indemnity compensation. The statutory changes are 
applicable to compensation and dependency and indemnity compensation 
payments for months beginning after March 26, 2002. Public Law 108-454, 
Sec.  302(c), 118 Stat. 3610.
    VA's regulation regarding RECA is 38 CFR 3.715. This document 
amends Sec.  3.715 by adding paragraph (a)(1), which states that a RECA 
payment to a ``radiation-exposed veteran,'' as defined in 38 CFR 
3.309(d)(3), does not bar payment of VA compensation to the veteran for 
months beginning after March 26, 2002. New Sec.  3.715(b) provides that 
a person's receipt of a RECA payment does not bar the person's receipt 
of dependency and indemnity compensation for months beginning after 
March 26, 2002. Also, Sec.  3.715(c) states: ``Notwithstanding 
paragraph (a) or (b), the amount of a RECA payment will be deducted 
from the amount of compensation payable pursuant to Sec.  3.309(d) or 
the amount of dependency and indemnity compensation payable.''
    We have made one further amendment to 38 CFR 3.715 to correct an 
inconsistency with RECA, as amended. Section 6(e) of RECA states that, 
``[e]xcept as otherwise authorized by law, the acceptance of payment by 
an individual under this section shall be in full satisfaction of all 
claims of or on behalf of that individual against the United States * * 
* that arise out of exposure to radiation, from atmospheric nuclear 
testing, in the affected area (as defined in section 4(b)(1)) at any 
time during the period described in subsection (a)(1), (a)(2)(A), or 
(a)(2)(B) of section 4(a), exposure to radiation in a uranium mine, 
mill, or while employed in the transport of uranium ore or

[[Page 44917]]

vanadium-uranium ore from such mine or mill at any time during the 
period described in section 5(a) or exposure to radiation as a result 
of onsite participation in a test involving the atmospheric detonation 
of a nuclear device.'' Currently, 38 CFR 3.715 is broader than RECA. 
The RECA statute provides that RECA payments satisfy all further claims 
against the United States, including claims for VA compensation, 
arising out of exposure to radiation covered by that Act. Section 
3.715, however, currently precludes payment of compensation for 
disability, no matter what the cause of the disease. We are therefore 
amending Sec.  3.715 to make the regulation consistent with statute by 
adding paragraph (a)(2) to provide that payment of VA compensation to a 
veteran who is not a radiation-exposed veteran is barred only if the 
veteran's disability resulted from a disease that is attributable to 
exposure to radiation for which payments have been received under RECA.
    Section 303 of the Veterans Benefits Improvement Act of 2004 
amended 38 U.S.C. 1503, Determinations with respect to annual income, 
by adding subsection 1503(a)(11) to exclude lump-sum proceeds of a life 
insurance policy on a veteran from consideration as income for pension 
purposes. VA's regulation regarding exclusions from income for pension 
purposes is 38 CFR 3.272. This document amends Sec.  3.272 by adding 
Sec.  3.272(x) to reflect the statutory changes. New Sec.  3.272(x) is 
applicable for periods on or after December 10, 2004.
    Section 304 of the Veterans Benefits Improvement Act of 2004 
amended 38 U.S.C. 1151, Benefits for persons disabled by treatment or 
vocational rehabilitation, by adding subsection (c), which states that 
a qualifying additional disability under section 1151 shall be treated 
as if it were a service-connected disability for purposes of 
entitlement to chapter 21 (specially adapted housing) and chapter 39 
benefits (automobiles and adaptive equipment). This is an expansion of 
the benefits to which persons receiving compensation under section 1151 
are entitled. This statutory amendment to 38 U.S.C. 1151 is applicable 
with respect to eligibility for these benefits and services on or after 
December 10, 2004. Public Law 108-454, Sec.  304(b), 118 Stat. 3611.
    VA's regulation regarding automobiles and adaptive equipment is 38 
CFR 3.808, Automobiles or other conveyances; certification. This 
document therefore amends Sec.  3.808 to reflect the statutory change. 
To implement the statutory change, we are amending the introduction and 
paragraphs (a) and (b) in Sec.  3.808. While the format of the current 
regulation is being amended for ease of use, we are making no 
substantive change to the content of the regulation, other than 
implementation of the statutory change.
    In this rulemaking, however, we are not amending 38 CFR 3.809, 
Specially adapted housing under 38 U.S.C. 2101(a), and 3.809a, Special 
home adaptation grants under 38 U.S.C. 2101(b), to reflect new 38 
U.S.C. 1151(c)(1). We have decided to promulgate a separate rulemaking 
that will amend 38 CFR 3.809 and 3.809a to implement section 304 of the 
Veterans Benefits Improvement Act of 2004, as well as section 401 of 
the 2004 Act, which amended 38 U.S.C. 2101, which provides the 
eligibility criteria for chapter 21 benefits. In that rulemaking, we 
will also amend relevant regulations in part 36 of title 38, Code of 
Federal Regulations, to reflect these statutory amendments.
    Section 304(c) of the Veterans Benefits Improvement Act of 2004 
amended 38 U.S.C. 1151(b) by adding section 1151(b)(2) to provide that, 
where a judgment, settlement, or compromise of a claim specifically 
designates a portion of the award for the type of benefits provided 
under chapter 21 or 39 of title 38, United States Code, and VA later 
awards chapter 21 or 39 benefits, VA may reduce the amount of the 
chapter 21 or 39 benefits payable by the amount of benefits 
specifically designated for these purposes in the judgment, settlement, 
or compromise. Section 1151(b)(2) applies to a judgment, settlement, or 
compromise that became final on or after December 10, 2004. Section 
1151(b)(2) also states that, if the amount received as a result of the 
judgment, settlement, or compromise is greater than the amount of the 
chapter 21 or 39 benefits, the excess amount received will be offset 
against benefits otherwise payable under 38 U.S.C. chapter 11. This 
document amends 38 CFR 3.362, Offsets under 38 U.S.C. 1151(b) of 
benefits awarded under 38 U.S.C. 1151 for claims filed on or after 
October 1, 1997, by adding Sec.  3.362(e) and 38 CFR 3.800, Disability 
or death due to hospitalization, etc. for claims filed before October 
1, 1997, by adding Sec.  3.800(a)(4) to reflect the statutory changes 
with regard to chapter 39 benefits only. We will amend 38 CFR 3.362 and 
3.800 to reflect new 38 U.S.C. 1151(b)(2) and (c)(1) regarding chapter 
21 benefits in the separate rulemaking described above.
    Section 305 of the Veterans Benefits Improvement Act of 2004 
amended 38 U.S.C. 5110, Effective date of awards, by removing the 
effective date restriction for death pension in section (d)(2), which 
required an application to be received within 45 days from the date of 
death for an effective date for an award of death pension to be the 
first day of the month in which the death occurred. The amendment 
allows the effective date for an award of death pension to be governed 
by the same rule as the effective date for an award of death 
compensation or dependency and indemnity compensation, which is that, 
if an application for death pension is received within one year from 
the date of death, the effective date of an award shall be the first 
day of the month in which the death occurred. VA's regulation regarding 
effective dates is 38 CFR 3.400. This document amends Sec.  3.400(c)(3) 
by amending paragraphs (c)(3)(i) and (ii) to reflect the statutory 
change. We have determined that amended paragraphs 3.400(c)(3)(i) and 
(ii) are applicable to claims filed on or after December 10, 2004, the 
effective date of the Veterans Benefits Improvement Act of 2004.
    Section 306(b) of the Veterans Benefits Improvement Act of 2004 
amended 38 U.S.C. 1112, Presumptions relating to certain diseases and 
disabilities, by further defining a ``radiation-risk activity'' in 
section 1112(c)(3)(B)(iv) to include service in a capacity which, if 
performed as an employee of the Department of Energy, would qualify the 
individual for inclusion as a member of the Special Exposure Cohort 
under the Energy Employees Occupational Illness Compensation Program 
Act of 2000, codified as amended at 42 U.S.C. 7348l(14). The amendment 
to section 1112(c)(3)(B) is effective as of March 26, 2002. VA's 
regulation regarding diseases subject to presumptive service connection 
for radiation-exposed veterans is 38 CFR 3.309(d). This document amends 
Sec.  3.309(d)(3)(ii) by adding a new paragraph Sec.  
3.309(d)(3)(ii)(E) to reflect the statutory change.

Administrative Procedure Act

    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. 553.

Paperwork Reduction Act

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

[[Page 44918]]

Regulatory Flexibility Act

    The Secretary hereby certifies that this regulatory amendment will 
not have a significant economic impact on a substantial number of small 
entities as they are defined in the Regulatory Flexibility Act, 5 
U.S.C. 601-612. Only VA beneficiaries could be directly affected. 
Therefore, pursuant to 5 U.S.C. 605(b), this amendment is exempt from 
the initial and final regulatory flexibility analysis requirements of 
sections 603 and 604.

Executive Order 12866

    Executive Order 12866 directs agencies to assess all costs and 
benefits of available regulatory alternatives and, when regulation is 
necessary, to select regulatory approaches that maximize net benefits 
(including potential economic, environmental, public health and safety, 
and other advantages; distributive impacts; and equity). The Order 
classifies a rule as a significant regulatory action requiring review 
by the Office of Management and Budget if it meets any one of a number 
of specified conditions, including: Having an annual effect on the 
economy of $100 million or more, creating a serious inconsistency or 
interfering with an action of another agency, materially altering the 
budgetary impact of entitlements or the rights of entitlement 
recipients, or raising novel legal or policy issues. VA has examined 
the economic, legal, and policy implications of this final rule and has 
concluded that it is a significant regulatory action because it may 
raise novel legal or policy issues.

Unfunded Mandates

    The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C. 
1532, that agencies prepare an assessment of anticipated costs and 
benefits before issuing any rule that may result in the expenditure by 
State, local, and tribal governments, in the aggregate, or by the 
private sector, of $100 million or more (adjusted annually for 
inflation) in any year. This final rule would have no such effect on 
State, local, and tribal governments, or on the private sector.

Catalog of Federal Domestic Assistance Numbers

    The Catalog of Federal Domestic Assistance program numbers and 
titles for this proposal are 64.100, Automobiles and Adaptive Equipment 
for Certain Disabled Veterans and Members of the Armed Forces; 64.101, 
Burial Expenses Allowance for Veterans; 64.102, Compensation for 
Service-Connected Deaths for Veterans' Dependents; 64.104, Pension for 
Non-Service-Connected Disability for Veterans; 64.105, Pension to 
Veterans Surviving Spouses, and Children; 64.109, Veterans Compensation 
for Service-Connected Disability; and 64.110, Veterans Dependency and 
Indemnity Compensation for Service-Connected Death.

List of Subjects in 38 CFR Part 3

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

    Approved: April 25, 2006.
Gordon H. Mansfield,
Deputy 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. Amend Sec.  3.1(g)(4) by removing ``Secretary of Transportation'' 
and adding, in its place, ``Secretary of Homeland Security''.

0
3. Amend Sec.  3.10 by adding paragraph (e)(4) to read as follows:


Sec.  3.10  Dependency and indemnity compensation rate for a surviving 
spouse.

* * * * *
    (e) * * *
    (4) For a two-year period beginning on the date entitlement to 
dependency and indemnity compensation commenced, the dependency and 
indemnity compensation paid monthly to a surviving spouse with one or 
more children below the age of 18 shall be increased by the amount set 
forth in 38 U.S.C. 1311(e), regardless of the number of such children. 
The dependency and indemnity compensation payable under this paragraph 
is in addition to any other dependency and indemnity compensation 
payable. The increase in dependency and indemnity compensation of a 
surviving spouse under this paragraph shall cease beginning with the 
first month commencing after the month in which all children of the 
surviving spouse have attained the age of 18.

(Authority: 38 U.S.C. 1311(e))

* * * * *


Sec.  3.152  [Amended]

0
4. Amend Sec.  3.152(a) by removing ``Secretary of Health and Human 
Services'' and adding, in its place, ``Commissioner of Social 
Security''.


Sec.  3.153  [Amended]

0
5. Amend Sec.  3.153 by removing ``Secretary of Health, Education, and 
Welfare'' and adding, in its place, ``Commissioner of Social 
Security''.

0
6. Amend Sec.  3.272 by adding paragraph (x) immediately following the 
authority citation at the end of paragraph (w) to read as follows:


Sec.  3.272  Exclusions from income.

* * * * *
    (x) Life insurance proceeds. Lump-sum proceeds of any life 
insurance policy on a veteran.

(Authority: 38 U.S.C. 1503(a)(11))


0
7. Amend Sec.  3.309 by adding paragraph (d)(3)(ii)(E) immediately 
following paragraph (d)(3)(ii)(D)(3) to read as follows:


Sec.  3.309  Disease subject to presumptive service connection.

* * * * *
    (d) * * *
    (3) * * *
    (ii) * * *
    (E) Service in a capacity which, if performed as an employee of the 
Department of Energy, would qualify the individual for inclusion as a 
member of the Special Exposure Cohort under section 3621(14) of the 
Energy Employees Occupational Illness Compensation Program Act of 2000 
(42 U.S.C. 7384l(14)).
* * * * *

0
8. Amend Sec.  3.362 by adding paragraph (e) immediately following the 
last sentence at the end of paragraph (d) to read as follows:


Sec.  3.362  Offset under 38 U.S.C. 1151(b) of benefits awarded under 
38 U.S.C. 1151(a).

* * * * *
    (e) Offset of award of benefits under 38 U.S.C. chapter 39. (1) If 
a judgment, settlement, or compromise covered in paragraphs (b) through 
(d) of this section becomes final on or after December 10, 2004, and 
includes an amount that is specifically designated for a purpose for 
which benefits are provided under 38 U.S.C. chapter 39 (38 CFR 3.808), 
and if VA awards chapter 39 benefits after the date on which the 
judgment, settlement, or compromise becomes final, the amount of the 
award will be reduced by the amount received under the judgment, 
settlement, or compromise for the same purpose.

[[Page 44919]]

    (2) If the amount described in paragraph (e)(1) of this section is 
greater than the amount of an award under 38 U.S.C. chapter 39, the 
excess amount received under the judgment, settlement, or compromise 
will be offset against benefits otherwise payable under 38 U.S.C. 
chapter 11.
* * * * *


Sec.  3.400  [Amended]

0
9. Amend Sec.  3.400 by:
0
a. In paragraph (c)(3)(i), adding ``or on or after December 10, 2004,'' 
following ``October 1, 1984,''; and
0
b. In paragraph (c)(3)(ii), removing ``on or after October 1, 1984,'' 
and adding, in its place, ``between October 1, 1984, and December 9, 
2004,''.

0
10. Amend Sec.  3.714(f) by:
0
a. Revising the paragraph heading.
0
b. In the introductory text, by removing ``Department of Health and 
Human Services'' and adding, in its place, ``Social Security 
Administration''.
    The revision reads as follows:


Sec.  3.714  Improved pension elections--public assistance 
beneficiaries.

* * * * *
    (f) Notification to the Social Security Administration. * * *
* * * * *

0
11. Revise Sec.  3.715 to read as follows:


Sec.  3.715  Radiation Exposure Compensation Act of 1990, as amended.

    (a) Compensation. (1) A radiation-exposed veteran, as defined in 38 
CFR 3.309(d)(3), who receives a payment under the Radiation Exposure 
Compensation Act of 1990, as amended (42 U.S.C. 2210 note) (RECA), will 
not be denied compensation to which the veteran is entitled under 38 
CFR 3.309(d) for months beginning after March 26, 2002.
    (2) A veteran who is not a ``radiation-exposed veteran,'' as 
defined in 38 CFR 3.309(d)(3), is not entitled to VA compensation for 
disability caused by a disease that is attributable to exposure to 
radiation for which the veteran has received a payment under RECA.
    (b) Dependency and indemnity compensation. A person who receives a 
payment under RECA based upon a veteran's death will not be denied 
dependency and indemnity compensation to which the person is entitled 
under 38 CFR 3.5 and 3.22 for months beginning after March 26, 2002.
    (c) Offset of RECA payment against VA benefits. Notwithstanding 
paragraph (a) or (b) of this section, the amount of a RECA payment will 
be deducted from the amount of compensation payable pursuant to Sec.  
3.309(d) or the amount of dependency and indemnity compensation 
payable.

(Authority: 38 U.S.C. 1112(c)(4), 1310(c); 42 U.S.C. 2210 note)


0
12. Amend Sec.  3.800 by adding paragraph (a)(4) to read as follows:


Sec.  3.800  Disability or death due to hospitalization, etc.

* * * * *
    (a) * * *
    (4) Offset of award of benefits under 38 U.S.C. chapter 39. (i) If 
a judgment, settlement, or compromise covered by paragraph (a)(2) of 
this section becomes final on or after December 10, 2004, and includes 
an amount that is specifically designated for automobile assistance 
benefits under 38 U.S.C. chapter 39 (38 CFR 3.808), and if VA awards 
chapter 39 benefits after the date on which the judgment, settlement, 
or compromise becomes final, the amount of the award will be reduced by 
the amount received under the judgment, settlement, or compromise for 
the same purpose.
    (ii) If the amount described in paragraph (4)(i) of this section is 
greater than the amount of an award under 38 U.S.C. chapter 39, the 
excess amount received under the judgment, settlement, or compromise 
will be offset against benefits otherwise payable under 38 U.S.C. 
chapter 11.

(Authority: 38 U.S.C. 1151(b)(2))

* * * * *

0
13. Amend Sec.  3.808 by:
0
a. Removing the introductory text.
0
b. Revising paragraph (a).
0
c. Redesignating the paragraph (b)(1) introductory text as paragraph 
(b) introductory text and revising it.
0
d. Removing paragraph (b)(2).
0
e. Redesignating former paragraphs (b)(1)(i) through (b)(1)(iv) as 
paragraphs (b)(1) through (b)(4), respectively.
0
f. Removing the authority citations at the end of paragraphs (c) and 
(d).
0
g. Adding an authority citation at the end of paragraph (e)(3).
    The revisions and addition read as follows:


Sec.  3.808  Automobiles or other conveyances; certification.

    (a) Entitlement. A certificate of eligibility for financial 
assistance in the purchase of one automobile or other conveyance in an 
amount not exceeding the amount specified in 38 U.S.C. 3902 (including 
all State, local, and other taxes where such are applicable and 
included in the purchase price) and of basic entitlement to necessary 
adaptive equipment will be provided to--
    (1) A veteran who is entitled to compensation under chapter 11 of 
title 38, United States Code, for a disability described in paragraph 
(b) of this section; or
    (2) A member of the Armed Forces serving on active duty who has a 
disability described in paragraph (b) of this section that is the 
result of an injury or disability incurred or disease contracted in or 
aggravated by active military, naval, or air service.
    (b) * * * One of the following must exist:
* * * * *
    (e) * * *

(Authority: 38 U.S.C. 501(a), 1151(c)(2), 3902)).


0
14. Amend Sec.  3.903 by:
0
a. Redesignating paragraphs (a)(2) through (a)(4) as paragraphs (a)(3) 
through (a)(5), respectively.
0
b. Adding a new paragraph (a)(2).
    The addition reads as follows:


Sec.  3.903  Subversive activities.

    (a) * * *
    (2) In title 18 U.S.C., sections 175, 229, 831, 1091, 2332a, and 
2332b, for claims filed on or after December 17, 2003.
* * * * *

0
15. Amend Sec.  3.1600 by:
0
a. In paragraph (a), removing ``Payment'' in the last sentence and 
adding, in its place, ``Except as provided in Sec.  3.1604(d)(5), 
payment''.
0
b. Revising paragraph (f) introductory text.
0
c. Redesignating paragraphs (f)(1) through (f)(5) as paragraphs 
(f)(2)(i) through (f)(2)(v), respectively.
0
d. Adding a new paragraph (f)(1).
0
e. Adding paragraph (f)(2) introductory text.
    The revision and additions read as follows:


Sec.  3.1600  Payment of burial expenses of deceased veterans.

* * * * *
    (f) Plot or interment allowance. A plot or interment allowance is 
payable to the person or entity who incurred the expenses in an amount 
not to exceed the amount specified in 38 U.S.C. 2303(b) (or if the 
entitlement is under Sec.  3.40 (c) or (d), an amount computed in 
accordance with the provisions of Sec.  3.40(c)) if the following 
conditions are met:
    (1) For claims filed on or after December 16, 2003:
    (i) The deceased veteran is eligible for burial in a national 
cemetery;
    (ii) The veteran is not buried in a national cemetery or other 
cemetery under the jurisdiction of the United States;

[[Page 44920]]

    (iii) The applicable further provisions of this section and 
Sec. Sec.  3.1601 through 3.1610.
    (2) For claims filed before December 16, 2003:
* * * * *

0
16. Amend Sec.  3.1604 by:
0
a. Revising the authority citation at the end of paragraph (c).
0
b. Revising paragraph (d)(1)(i).
0
c. Adding paragraph (d)(5) following the authority citation at the end 
of paragraph (d)(4).
    The revisions and addition read as follows:


Sec.  3.1604  Payment from non-Department of Veterans Affairs sources.

* * * * *
    (c) * * *

(Authority: 38 U.S.C. 2303(b)(1)).

    (d) * * *
    (1) * * *
    (i) The plot or interment allowance is payable based on the 
deceased veteran's eligibility for burial in a national cemetery (or, 
in claims filed prior to December 16, 2003, the deceased veteran's 
service). See Sec.  38.620 of this chapter.
* * * * *
    (5) A plot or interment allowance may be paid to a state in 
addition to a burial allowance under Sec.  3.1600(a) for claims filed 
on or after December 16, 2003.

 [FR Doc. E6-12787 Filed 8-7-06; 8:45 am]
BILLING CODE 8320-01-P