[Federal Register Volume 77, Number 36 (Thursday, February 23, 2012)]
[Rules and Regulations]
[Pages 10663-10665]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-4234]
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DEPARTMENT OF VETERANS AFFAIRS
38 CFR Part 59
RIN 2900-AN77
Due Date of Initial Application Requirements for State Home
Construction Grants
AGENCY: Department of Veterans Affairs.
ACTION: Final rule.
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SUMMARY: This final rule amends the Department of Veterans Affairs (VA)
regulations concerning the calendar date by which VA must receive an
initial application for a State Home Construction Grant in order for
the application to be included on the priority list for the award of
grants during the next fiscal year. We require that initial application
materials must be received by VA no later than April 15, instead of
August 15, of the year before the fiscal year in which the application
would be considered for inclusion on the priority list for the award of
grants. We require certification of State matching funds to be
submitted no later than August 1, instead of August 15, in order for
the project to be placed in priority group 1 of the priority list for
the next fiscal year. The purpose of these changes is to ensure that VA
has sufficient time to process all applications received and timely
prepare the priority list, so that we can accurately notify States that
VA intends to select and fund particular projects. We also make
technical revisions to conform our regulations to these revisions.
DATES: This final rule is effective March 26, 2012.
FOR FURTHER INFORMATION CONTACT: Vernon Wilkes, State Veterans Homes
(10NA5), 1717 H Street NW., Washington, DC 20006, (202) 266-4617. (This
is not a toll-free number.)
SUPPLEMENTARY INFORMATION: Under 38 U.S.C. 8131 through 8138, VA is
authorized to award grants to assist States in constructing,
remodeling, altering, or expanding State home facilities that will
furnish specified types of care to veterans. VA has implemented this
statutory authority at 38 CFR part 59.
Under 38 U.S.C. 8135, States that wish to receive assistance for a
State home construction project (or acquisition of an existing facility
to be used as a State home facility) must submit an application that
includes certain information and documentation described in the
statute. VA has implemented the application requirement in current
Sec. 59.20(a), which requires that applicants seeking inclusion on the
priority list for grants awarded during the next fiscal year submit to
VA an original and one copy of a completed VA Form 10-0388-1 and all
information, documentation, and other forms specified by VA Form 10-
0388-1. Under current Sec. 59.20(c), VA encourages the submission of
the application by April 15 but considers any application submitted
before August 16 for inclusion on the priority list. VA maintains the
``priority list'' pursuant to current 38 CFR 59.50. Additionally, under
current Sec. 59.70(b), VA requires a State to commit funds for a
project before August 16 in order for that project to be eligible for
inclusion in priority group 1 of the priority list for the next fiscal
year.
On March 1, 2011, VA published a proposed rule to improve the
clarity and efficacy of the application process and
[[Page 10664]]
to address certain administrative challenges presented by the current
rules. 76 FR 11187 (Mar. 1, 2011). We proposed adopting April 15 as the
due date for applications, including matching funding. We provided a
60-day comment period during which we received eight comments from
State departments of veterans affairs and State veterans homes and a
comment from the National Association of State Veterans Homes. All of
the commenters raised similar or identical concerns, which we address
below. We are grateful for their submissions and, after careful
deliberation, make one change to the final rule based on these
comments.
First, several commenters assert that they have consistently
treated the April 15 date as a ``preapplication'' date and acknowledge
that they complete as much of the application as possible on or before
that date. However, they argue that it is impossible to meet an April
15 deadline for matching funds because the fiscal year for most States
begins on July 1, which is after that deadline. To address this
concern, the final rule adopts a separate, later, deadline for the
official certification of matching funds. Under the final rule, the
application must be received no later than April 15. If official
certification of the matching funds is received on or before August 1,
the State may be included in priority group 1.
This will allow VA to review the submissions and establish each
application in priority groups 2 through 7 (which mirror the sub-
priorities in priority group 1 with the distinction that projects in
priority group 1 have State matching funds while those in priority
groups 2 through 7 lack these resources). When a State is able to
provide documentation of State matching funds, the application will be
placed in the appropriate position in priority group 1. Should a State
be unable to document matching funds by the new August 1 deadline, the
project will be placed in one of groups 2 through 7 for the following
fiscal year.
Some commenters argue that the burden of filing the application
itself, not just the matching-funds requirement, would be impossible to
meet before April 15. Previous experience is that most States already
submit preapplication materials on or before April 15, as acknowledged
by the commenters themselves, and thus, we do not think that there will
be a new significant burden. The items required on the VA Form 10-0388-
1 are generally administrative information (such as identifier numbers)
and the schematics of the project. Schematics generally require an
aerial view of the site of the project, a floor plan, and a rendering
of the exterior of the building. Although these may require some
financial expense, we believe that the cost is usually between $6,000
and $10,000. In any event, it is never a significant expense in
relation to the cost of the project itself, which is usually over $30
million. We do not believe that it should be necessary to wait for a
State legislature to authorize the expense or time for producing these
application materials.
The commenters challenged VA's need for the additional review time,
citing the impact of the American Recovery and Reinvestment Act of 2009
(ARRA) on the previous grant cycle asserting that it resulted in an
anomalously high number of applications. We acknowledge that the ARRA
increased the 2010 workload but maintain that there is a need for
additional review time in general, based on the uniqueness of each
fiscal year, the complexity of the projects, and the need for extensive
detailed and careful review of each application. In fact, we had begun
reassessing the August 15 due date before Fiscal Year 2010. Adoption of
the proposed April 15 application due date, while allowing States to
submit documentation of matching funds by August 1, will allow VA to
provide due diligence in the review and prioritization process, while
maximizing the States' opportunity to obtain and document matching
funds to secure a position in priority group 1.
Several commenters recommended delaying publication of the priority
list rather than altering the due date. We appreciate the flexibility
recommended by these parties but note that release of the priority list
is determined by the time federal budget funds are appropriated.
Regardless of the ultimate date the budget is finalized, VA strives to
publish the priority list in a timely manner and will continue to do so
in an effort to provide quick, efficient distribution of and maximum
access to available funds.
The commenters also argue administrative inconvenience. However,
the initial application materials are not overly burdensome, and
requiring the earlier deadlines will help VA ensure the timely delivery
of funds to worthy State projects. Because most applications are
already received by April 15, this date is reasonable, and allowing for
the August 1 date for the certification of matching funds addresses the
administrative needs of the States.
Finally, commenters objected to VA's rulemaking as being based
solely on the administrative needs of VA staff, at the expense of
America's veterans. VA strives diligently to remain veteran-centric in
all of its programs. Clarification of the due date and the technical
changes proposed in this amendment are designed to mirror current
practice and to facilitate a thorough and complete review of grant
applications prior to funding, in an effort to minimize program delays
and make space in the State homes available to our veterans as quickly
as possible. VA has always initiated review of proposals upon receipt,
which in most cases has been by the April 15 date cited in Sec. 59.20.
However, VA's review of these grants and their construction plans
necessitates numerous internal concurrences; communications with the
States for clarification of the application materials; development and
adoption of memorandums of understanding for each project; and other
significant, time-consuming, relevant processes. Each proposal is
unique and may have special issues, including terrain, access,
potential for natural disaster, facility measures, varying codes and
local requirements, etc. VA staff assesses new construction as well as
renovations to facilities of various ages, under an assortment of State
and national construction and safety standards, to ascertain that each
element of the application is thorough, complete, and current.
Requiring this detailed review prior to prioritization and funding
ensures that the project is ``shovel ready'' when funds become
available. This, in turn, helps ensure that VA funds projects that will
be ready, on time, for waiting veterans.
Acknowledging the effort the States have historically made to
submit applications by the April 15 date to secure their position on
the priority list, we believe formal adoption of an April 15 deadline,
with the August 1 date for documentation of matching funds for
placement in priority group 1, will help VA and the States and, most
importantly, serve the needs of veterans by improving existing space
and making new space available for eligible veterans at the earliest
possible moment.
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 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 given year. This rule would have no such effect on
State, local, and tribal governments, or on the private sector.
[[Page 10665]]
Paperwork Reduction Act
Although this document contains provisions constituting collections
of information, at 38 CFR 59.20, under the provisions of the Paperwork
Reduction Act (44 U.S.C. 3501 et seq.), no new or revised collections
of information are associated with this rule. The information
collection requirements for Sec. 59.20 are currently approved by OMB
and have been assigned OMB control number 2900-0661.
Executive Orders 12866 and 13563
Executive Orders 12866 and 13563 direct agencies to assess the
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 effects, and other advantages; distributive impacts;
and equity). Executive Order 13563 (Improving Regulation and Regulatory
Review) emphasizes the importance of quantifying both costs and
benefits, reducing costs, harmonizing rules, and promoting flexibility.
Executive Order 12866 (Regulatory Planning and Review) defines a
``significant regulatory action,'' which requires review by the Office
of Management and Budget (OMB), as ``any regulatory action that is
likely to result in a rule that may: (1) Have an annual effect on the
economy of $100 million or more or adversely affect in a material way
the economy, a sector of the economy, productivity, competition, jobs,
the environment, public health or safety, or State, local, or tribal
governments or communities; (2) Create a serious inconsistency or
otherwise interfere with an action taken or planned by another agency;
(3) Materially alter the budgetary impact of entitlements, grants, user
fees, or loan programs or the rights and obligations of recipients
thereof; or (4) Raise novel legal or policy issues arising out of legal
mandates, the President's priorities, or the principles set forth in
this Executive Order.''
The economic, interagency, budgetary, legal, and policy
implications of this regulatory action have been examined and it has
been determined to be a significant regulatory action under Executive
Order 12866 because it is likely to result in a rule that may raise
novel legal or policy issues arising out of legal mandates, the
President's priorities, or the principles set forth in the Executive
Order.
Regulatory Flexibility Act
The Secretary hereby certifies that this final rule would 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. The rule affects States and has no impact on any small entities.
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.
Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic Assistance program numbers and
titles for this rule are as follows: 64.005, Grants to States for
Construction of State Home Facilities; 64.007, Blind Rehabilitation
Centers; 64.008, Veterans Domiciliary Care; 64.009, Veterans Medical
Care Benefits; 64.010, Veterans Nursing Home Care; 64.014, Veterans
State Domiciliary Care; 64.015, Veterans State Nursing Home Care;
64.018, Sharing Specialized Medical Resources; 64.019, Veterans
Rehabilitation Alcohol and Drug Dependence; 64.022, Veterans Home Based
Primary Care; and 64.024, VA Homeless Providers Grant and Per Diem
Program.
Signing Authority
The Secretary of Veterans Affairs, or designee, approved this
document and authorized the undersigned to sign and submit the document
to the Office of the Federal Register for publication electronically as
an official document of the Department of Veterans Affairs. John R.
Gingrich, Chief of Staff, Department of Veterans Affairs, approved this
document on November 14, 2011, for publication.
List of Subjects in 38 CFR Part 59
Administrative practice and procedure; Alcohol abuse; Alcoholism;
Claims; Day care; Dental health; Drug abuse; Government contracts;
Grant programs--health; Grant programs--veterans; Health care; Health
facilities; Health professions; Health records; Homeless; Mental health
programs; Nursing homes; Philippines, Reporting and recordkeeping
requirements; Veterans.
Dated: February 17, 2012.
Robert C. McFetridge,
Director of Regulation Policy and Management, Office of the General
Counsel, Department of Veterans Affairs.
For the reasons set forth in the preamble, VA amends 38 CFR part 59
as follows:
PART 59--GRANTS TO STATES FOR CONSTRUCTION OR ACQUISITION OF STATE
HOMES
0
1. Revise the authority citation for part 59 to read as follows:
Authority: 38 U.S.C. 101, 501, 1710, 1742, 8105, 8131-8137.
0
2. Amend Sec. 59.20 by:
0
a. Revising paragraph (c).
0
b. Removing ``August'' from paragraph (d) and adding, in its place,
``April''.
0
c. Adding an information collection approval parenthetical after the
authority citation at the end of the section.
The revision and addition read as follows:
Sec. 59.20 Initial application requirements.
* * * * *
(c) The items requested under paragraph (a) of this section must be
received by VA no later than April 15 in order for VA to include the
application on the priority list for the award of grants during the
next fiscal year. See Sec. 59.50, Priority List.
* * * * *
(The Office of Management and Budget has approved the information
collection requirements in this section under control number 2900-0661)
0
3. Amend Sec. 59.50 by removing ``August'' from the introductory text
of paragraph (a) and adding, in its place, ``April''.
0
4. Amend Sec. 59.70 by removing ``August 15'' from paragraph (b) and
adding, in its place, ``August 1''.
[FR Doc. 2012-4234 Filed 2-22-12; 8:45 am]
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