[Federal Register Volume 74, Number 242 (Friday, December 18, 2009)]
[Rules and Regulations]
[Pages 67075-67077]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-30093]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 14

RIN 2900-AN44


Federal Tort Claim Delegation

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: This document amends the Department of Veterans Affairs (VA) 
regulations concerning delegation of authority to the Secretary of 
Veterans Affairs to consider, ascertain, adjust, determine, compromise, 
and settle claims under the Federal Tort Claims Act where the amount of 
settlement does not exceed $300,000, and the Secretary's redelegation 
of such authority to certain personnel within the Office of the General 
Counsel. The amendments will facilitate the timely processing of claims 
under the Federal Tort Claims Act by expanding VA's settlement 
authority and clarifying the delegation of such authority within the 
Department.

DATES: Effective Date: December 18, 2009.

FOR FURTHER INFORMATION CONTACT: E. Douglas Bradshaw, Jr., Assistant 
General Counsel (021), Department of Veterans Affairs, 810 Vermont 
Avenue, NW., Washington, DC 20420, (202) 461-4900. (This is not a toll-
free number.)

SUPPLEMENTARY INFORMATION: Section 203 of the Veterans Benefits and 
Services Act of 1988 (Pub. L. 100-322) added former section 223 to 
title 38, United States Code (recodified in 1991 as 38 U.S.C. 515), 
permitting the Secretary of Veterans Affairs to settle tort claims not 
exceeding an amount to be delegated by the Attorney General of the 
United States (with the delegation not to exceed the maximum delegated 
to the United States Attorneys). In 1988, the Attorney General 
delegated $100,000 in settlement authority to the Secretary. 53 FR 
37753, Sept. 28, 1988. In 1999, VA published a final rule reflecting 
that the Attorney General increased the delegation to $200,000. 64 FR 
47111, Aug. 30, 1999. In 2008, the Attorney General increased the 
delegation of settlement authority to $300,000. 73 FR 70278, Nov. 20, 
2008.

[[Page 67076]]

    Current Sec.  14.600 does not reflect the Attorney General's 2008 
delegation or VA's determination regarding the necessary redelegations 
to Office of the General Counsel (OGC) personnel. The purpose of this 
rulemaking is to update VA regulations in light of the Attorney 
General's action increasing the amount of VA's settlement authority for 
tort claims and also to allow for the further delegation of this 
authority within OGC as necessary.
    This amendment to 38 CFR 14.600(c)(2) delegates to the General 
Counsel, Deputy General Counsel, Assistant General Counsel 
(Professional Staff Group I), or those authorized to act for them, 
authority to consider, ascertain, adjust, determine, compromise, and 
settle a claim arising under the Federal Tort Claims Act; provided that 
any award, compromise, or settlement in excess of $300,000 shall be 
effected only with the prior written approval of the Attorney General 
or his or her designee. The amendment also provides for the execution 
of a memorandum explaining the basis for settlement of a claim in 
excess of $100,000 to be sent to the Department of Justice (DOJ), as 
required by the Attorney General's delegation to the Secretary.
    Authority is also delegated to the Regional Counsels, or those 
authorized to act for them, and to the Deputy Assistant General Counsel 
(Professional Staff Group I) to consider, ascertain, adjust, determine, 
compromise, and settle any claim under the Federal Tort Claims Act; 
provided that any award, compromise, or settlement does not exceed 
$150,000; and provided, further, that whenever a settlement is effected 
in an amount in excess of $100,000, a memorandum fully explaining the 
basis for the action taken shall be sent to the DOJ, as required by the 
Attorney General's delegation to the Secretary.
    This rule further amends Sec.  14.600 to incorporate notes (1), 
(2), and (3) into the regulation text. We have determined that the 
notes, which prescribe the requirement for notifying DOJ of the basis 
for any settlement of a tort action under VA's delegated authority, are 
more appropriate for regulation text. Accordingly, we have amended 
Sec.  14.600(c) and (d) to incorporate the DOJ notification requirement 
and delete the notes.

Administrative Procedure Act

    This final rule concerns agency organization, management, 
procedure, or practice, specifically delegation of authority to 
employees of the Department to perform certain acts or render 
decisions. Accordingly, because this amendment merely reflects a 
delegation change and makes other non-substantive changes, this rule is 
exempt from the prior notice-and-comment and delayed-effective-date 
requirements of 5 U.S.C. 553.

Paperwork Reduction Act

    This document contains no provisions constituting a collection of 
information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3521).

Executive Order 12866

    Because this document is limited to agency organization and 
management, it is not within the definition of ``regulation'' in 
section 3(d) of Executive Order 12866 and therefore not subject to that 
Executive Order's requirements for regulatory actions.

Regulatory Flexibility Act

    The initial and final regulatory flexibility analysis requirements 
of sections 603 and 604 of the Regulatory Flexibility Act, 5 U.S.C. 
601-612, are not applicable to this rule because a notice of proposed 
rulemaking is not required for this rule. Even so, the Secretary of 
Veterans Affairs 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. This final rule 
will not affect any small entities. Only VA employees could be directly 
affected. Therefore, pursuant to 5 U.S.C. 605(b), this final rule is 
exempt from the initial and final regulatory flexibility analysis 
requirements of sections 603 and 604.

Unfunded Mandates

    The Unfunded Mandates Reform Act of 1995, codified at 2 U.S.C. 
1532, requires that agencies prepare an assessment of anticipated costs 
and benefits before issuing any rule that may result in an 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

    There is no Catalog of Federal Domestic Assistance number for this 
final rule.

List of Subjects in 38 CFR Part 14

    Administrative practice and procedure, Claims, Courts, Foreign 
relations, Government employees, Lawyers, Legal services, Organization 
and functions (Government agencies), Reporting and recordkeeping 
requirements, Surety bonds, Trusts and trustees, Veterans, and General 
Counsel.

    Approved: December 10, 2009.
John R. Gingrich,
Chief of Staff, Department of Veterans Affairs.

0
For the reasons stated in the preamble, the Department of Veterans 
Affairs amends 38 CFR part 14 as follows:

PART 14--LEGAL SERVICES, GENERAL COUNSEL, AND MISCELLANEOUS CLAIMS

0
1. Revise the authority citation for part 14 to read as follows:

    Authority:  5 U.S.C. 301; 28 U.S.C. 2671-2680; 38 U.S.C. 501(a), 
512, 515, 5502, 5901-5905; 28 CFR part 14, appendix to part 14, 
unless otherwise noted.


0
2. Amend Sec.  14.600 by:
0
a. Revising paragraphs (c)(2), (c)(3), and (d)(2);
0
b. Removing notes (1), (2), and (3).
    The revision reads as follows:


Sec.  14.600  Federal Tort Claims Act--general.

* * * * *
    (c) * * *
    (2) To the General Counsel, Deputy General Counsel, and Assistant 
General Counsel (Professional Staff Group I) or those authorized to act 
for them with respect to any claim; provided that any award, 
compromise, or settlement in excess of $300,000 shall be effected only 
with the prior written approval of the Attorney General or his or her 
designee; provided further that whenever a settlement is effected in an 
amount in excess of $100,000, a memorandum fully explaining the basis 
for the action taken shall be sent to the Department of Justice.
    (3) To the Regional Counsels and the Deputy Assistant General 
Counsel (Professional Staff Group I) or those authorized to act for 
them with respect to any claim, provided that:
    (i) Any award, compromise, or settlement in excess of $150,000 but 
not more than $300,000 shall be effected only with the prior written 
approval of the General Counsel, Deputy General Counsel, or Assistant 
General Counsel (Professional Staff Group I); provided further that 
whenever a settlement is effected in an amount in excess of $100,000, a 
memorandum fully explaining the basis for the action taken shall be 
sent to the Department of Justice; and
    (ii) Any award where, for any reason, the compromise of a 
particular claim, as a practical matter, will, or may control the 
disposition of a related claim in which the amount to be paid may 
exceed $150,000 shall be effected only with the prior written approval 
of the

[[Page 67077]]

General Counsel, Deputy General Counsel, or Assistant General Counsel 
(Professional Staff Group I); and
    (iii) Any award, compromise, or settlement in excess of $300,000 
shall be effected only with the prior written approval of the General 
Counsel, Deputy General Counsel, or Assistant General Counsel 
(Professional Staff Group I) and with the prior written approval of the 
Attorney General or his or her designee.
    (d) * * *
    (2) To the General Counsel, Deputy General Counsel, and Assistant 
General Counsel (Professional Staff Group I) with respect to any claim; 
provided that any award, compromise, or settlement in excess of 
$300,000 shall be effected only with the prior written approval of the 
Attorney General or his or her designee; provided further that whenever 
a settlement is effected in an amount in excess of $100,000, a 
memorandum fully explaining the basis for the action taken shall be 
sent to the Department of Justice.

(Authority: 28 U.S.C. 1291, 1346, 1402, 2401, 2402, 2411, 2412, 
2671-80; 38 U.S.C. 512, 515; 28 CFR part 14, appendix to part 14)

[FR Doc. E9-30093 Filed 12-17-09; 8:45 am]
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