[Federal Register Volume 82, Number 3 (Thursday, January 5, 2017)]
[Proposed Rules]
[Pages 1288-1294]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-31949]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 17

RIN 2900-AP83


Ecclesiastical Endorsing Organizations

AGENCY: Department of Veterans Affairs.

ACTION: Proposed rule.

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SUMMARY: The Department of Veterans Affairs (VA) proposes to amend its 
medical regulations by establishing in regulation the eligibility 
requirements that ecclesiastical endorsing organizations must meet in 
order to provide ecclesiastical endorsements of individuals seeking 
employment as VA chaplains or of individuals who are seeking to be 
engaged by VA under contract or appointed as on-facility fee basis VA 
chaplains under 38 U.S.C. 7405. VA considers the veterans' spiritual 
care an integral part of the veterans' overall health care. As such, VA 
is committed to providing qualified VA chaplains to address the 
veterans' spiritual needs by engaging chaplains that are 
ecclesiastically endorsed. Ecclesiastical endorsement would certify 
that the individual is qualified to perform all the religious 
sacraments, rites, rituals, ceremonies and ordinances needed by members 
of a particular faith.

DATES: Comments must be received by VA on or before March 6, 2017.

ADDRESSES: Written comments may be submitted through http://www.Regulations.gov; by mail or hand-delivery to: Director, Regulation 
Policy and Management (00REG), Department of Veterans Affairs, 810 
Vermont Ave. NW., Room 1068, Washington, DC 20420; or by fax to (202) 
273-9026. (This is not a toll-free telephone number.) Comments should 
indicate that they are submitted in response to ``RIN 2900-AP83-
Ecclesiastical Endorsing Organizations.'' Copies of comments received 
will be available for public inspection in the Office of Regulation 
Policy and Management, Room 1068, between the hours of 8:00 a.m. and 
4:30 p.m., Monday through Friday (except holidays). Please call (202) 
461-4902 for an appointment. (This is not a toll-free telephone 
number.) In addition, during the comment period, comments may be viewed 
online through the Federal Docket Management System (FDMS) at http://www.Regulations.gov.

FOR FURTHER INFORMATION CONTACT: John Batten, Program Analyst, National 
Chaplain Center, Veterans Health Administration, Department of Veterans 
Affairs Medical Center, 100

[[Page 1289]]

Emancipation Dr., Hampton VA 23667; (757) 728-7062. (This is not a 
toll-free number.)

SUPPLEMENTARY INFORMATION: Under 38 CFR 17.33, VA shall make available 
to each patient the opportunity for religious worship. The VA National 
Chaplain Service was established on August 1, 1945, to provide veterans 
the opportunity for such worship and other forms of spiritual care. VA 
employs chaplains in accordance with 5 CFR 213.3102(a) to provide for 
the spiritual component of health care in accordance to the spiritual 
needs of veterans. VA may employ chaplains in temporary appointments, 
on an on-facility fee basis appointment under 38 U.S.C. 7405, and may 
engage chaplains under contract. By requiring that chaplains be 
ecclesiastically endorsed, VA ensures that chaplains are qualified to 
perform the rites, rituals, or ceremonies that are unique to each 
faith. Before the year 2000, VA did not have a process in place to 
address endorsement of chaplains and relied on criteria established by 
the Department of Defense's (DoD) Armed Forces Chaplain Board (AFCB) at 
DoD Instruction 1304.28. Under these criteria, an individual cannot 
serve as chaplain unless he or she is endorsed by an ecclesiastical 
endorsing organization. The purpose is to ensure that the chaplain is 
recognized as an individual who is authorized by that organization to 
perform pastoral duties. The ecclesiastical endorsing organization must 
submit a request to VA to designate an ecclesiastical endorser. This 
request provides VA with the information on the ecclesiastical 
endorsing organization and identifies the individual whom the 
organization designates as the official authorized to sign 
ecclesiastical endorsements. VA reviews the information provided and 
approves the request.
    Before the year 2000, VA accepted endorsements from ecclesiastical 
endorsing organizations recognized by DoD to perform this function as a 
means of avoiding duplication of effort on VA's part and because such 
organizations would be better able to address veterans' needs, having 
provided for the veterans' spiritual care while on active duty. In 
1998, VA determined that it needed to establish its own policy on 
accepting ecclesiastical endorsements. The rationale was that there 
might be organizations that would endorse members seeking to work for 
VA, but would not permit their members to work as military chaplains, 
either for theological or other reasons. There might also be 
ecclesiastical endorsing organizations that have members who wish to 
work as VA chaplains and none who wish to become military chaplains. By 
accepting endorsements only from ecclesiastical endorsing organizations 
recognized by DoD, VA was unnecessarily limiting the pool of ministers 
who could serve as VA chaplains. We would, however, use similar 
definitions of terms defined by DoD in order to maintain consistency 
between government agencies. VA has been successfully implementing 
since the year 2000, via internal policy, the eligibility requirements 
that ecclesiastical endorsing organizations must meet to endorse 
individuals who are seeking employment as VA chaplains or of 
individuals who are seeking to be engaged by VA under contract or 
appointed as on-facility fee basis VA chaplains under 38 U.S.C. 
7405.\1\ However, VA subsequently determined a formal rulemaking would 
be prudent in order to make the process transparent. VA considers a 
veteran's spiritual care an integral part of the veteran's health care. 
By requiring that all VA chaplains be endorsed by an ecclesiastical 
endorsing organization that meets certain criteria, VA is ensuring that 
chaplains are providing for the religious needs of veterans. VA does 
not prefer any religion and respects a veteran's right by only 
providing religious and spiritual care to those veterans who request 
it. VA has established in policy a process by which ecclesiastical 
endorsing organizations designate an individual as authorized to sign 
ecclesiastical endorsements of its members seeking employment as VA 
chaplains or be engaged by VA under contract or appointed as on-
facility fee basis VA chaplains under 38 U.S.C. 7405. Through this 
rulemaking, VA would establish this policy in regulation, which would 
promote transparency in the process as well as safeguard VA from the 
appearance of favoritism of an ecclesiastical endorsing organization 
over another. We would establish this process in proposed Sec.  17.655.
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    \1\ Ecclesiastical Endorsing Organizations, VA Handbook 1111.1.
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17.655 Ecclesiastical Endorsing Organizations

    Proposed paragraph (a) would be the purpose paragraph. We would 
state that proposed Sec.  17.655 ``establishes the eligibility 
requirements that an ecclesiastical endorsing organization must meet in 
order to provide ecclesiastical endorsements of individuals who are 
seeking employment as VA chaplains or are seeking to be engaged by VA 
under contract or appointed as on-facility fee basis VA chaplains under 
38 U.S.C. 7405.'' VA protects a veteran's right to exercise his or her 
religion. However, VA does not imply approval of the theology or 
practices of the religious organization to which the chaplain belongs. 
VA is also not obligated to employ or engage under VA contract or to 
appoint under 38 U.S.C. 7405 an individual who is endorsed by an 
ecclesiastical endorsing organization for the reasons stated in our 
discussion of proposed paragraph (c). We would state these caveats in 
proposed paragraph (a).
    Proposed paragraph (b) would provide the definitions of terms used 
within proposed Sec.  17.655. In order to be considered for and 
maintain employment as a VA chaplain or be engaged by VA under contract 
or appointed as on-facility fee basis VA chaplains under 38 U.S.C. 
7405, an individual must have ecclesiastical endorsement from an 
ecclesiastical endorsing organization. This requirement would be needed 
to make certain that individuals providing ministry to veterans are 
authorized by their ecclesiastical endorsing organization to provide 
specific ministries. We would add this requirement to the proposed 
definition of ecclesiastical endorsement, which would be defined to 
mean ``a written statement addressed to VA and signed by the designated 
endorsing official of an ecclesiastical endorsing organization 
certifying that an individual is in good standing with the faith group 
or denomination and, in the opinion of the endorsing official, is 
qualified to perform the full range of ministry, including all 
sacraments, rites, ordinances, rituals, and liturgies required by 
members of the faith group.''
    Each ecclesiastical endorsing organization designates an 
ecclesiastical endorsing official or officials, who would endorse 
individuals as being in good standing within that faith and able to 
perform the full range of ministries. We propose to define 
ecclesiastical endorsing official as ``an individual who is authorized 
to provide or withdraw ecclesiastical endorsements on behalf of an 
ecclesiastical endorsing organization.'' This definition would be 
similar to that of DoD.
    An organization that meets the eligibility requirements of proposed 
paragraph (c) and has also been designated as an endorsing agent in 
accordance with proposed paragraph (e) would be termed an 
ecclesiastical endorsing organization. We would

[[Page 1290]]

define this term in proposed paragraph (b).
    Proposed paragraph (c) would state that ecclesiastical endorsing 
organization must ``meet the following requirements before the 
organization can endorse an applicant for VA chaplaincy.'' The first 
requirement is that the ecclesiastical endorsing organization must ``Be 
organized and function exclusively or substantially to provide 
religious ministries to a lay constituency and possess authority to 
both grant and withdraw initial and subsequent ecclesiastical 
endorsement.'' Organizations whose only function is to provide social 
services to the community, health care or education cannot become 
ecclesiastical endorsing organizations. The organization must designate 
an individual(s) who can sign an ecclesiastical endorsement of a member 
of the organization. Maintaining an ecclesiastical endorsement is a 
requirement to maintain employment as a VA chaplain or be engaged by VA 
under contract or appointed as on-facility fee basis VA chaplains under 
38 U.S.C. 7405. The second requirement is that the organization has 
``tax-exempt status as a religious organization or church under the 
Internal Revenue Code, section 501(c)(3).'' Generally, section 501(c) 
of the Internal Revenue Code provides exemption from some federal 
income taxes for various types of nonprofit organizations. Section 
501(c)(3) of the Internal Revenue code addresses religious 
organizations. In order for a religious organization to be tax-exempt 
under rules established by the Internal Revenue Service (IRS), the 
organization must meet the following requirements: be organized and 
operated exclusively for religious, educational, scientific or other 
charitable purposes; net earnings may not inure to the benefit of any 
private individual or shareholder; no substantial part of its activity 
may be attempting to influence legislation; the organization may not 
intervene in political campaigns; and the organization's purposes and 
activities may not be illegal or violate fundamental public policy. The 
IRS makes a distinction between tax-exempt status of a religious 
organization and that of a church. Religious organizations that meet 
the requirements of section 501(c)(3) of the IRC must apply to the IRS 
for tax-exempt status, unless their gross receipts do not normally 
exceed $5,000.00 annually.
    Churches are automatically considered tax-exempt and are not 
required to apply for and obtain recognition of tax-exempt status from 
the IRS. However, although there is no requirement to file for tax-
exempt status, many churches seek recognition of tax-exempt status from 
the IRS because this recognition assures the religious leaders, 
members, and contributors that the church is recognized as exempt and 
qualifies for related tax benefits. VA would require that an 
ecclesiastical endorsing organization, that is seeking to endorse an 
individual for employment as a VA chaplain or an individual seeking to 
be engaged by VA under contract or appointed as on-facility fee basis 
VA chaplains under 38 U.S.C. 7405, obtain the recognition of its status 
as a tax-exempt religious organization or church under section 
501(c)(3) of the Internal Revenue Code.
    The third requirement is that ecclesiastical endorsing 
organizations would need to agree to abide by ``all Federal and VA 
laws, regulations, policies, and issuances on the qualification and 
endorsement of persons for service as VA chaplains.'' We would add this 
requirement as a form of commitment by the ecclesiastical endorsing 
organization to only endorse individuals for service as VA chaplains 
who are willing to abide by these rules.
    We propose to state that the ecclesiastical endorsing organization 
must notify VA in writing of any withdrawal of the ecclesiastical 
endorsement of an endorsed VA chaplain. Such notification must be 
received by VA within ten days of the withdrawal. VA is committed to 
provide veterans with spiritual care from the most qualified 
individuals. If an individual is no longer endorsed by an 
ecclesiastical endorsing organization, such individual will cease to 
meet the requirements of a VA chaplain and may lose his or her VA 
employment, VA contract, or appointment as on-facility fee basis VA 
chaplains under 38 U.S.C. 7405. We would also state that the 
ecclesiastical endorsing organization must provide the documents stated 
in proposed paragraph (d). If an ecclesiastical endorsing organization 
changes the individual authorized as its endorsing official, the 
organization must notify VA of the name and address of the new 
official. VA would need to maintain contact with the ecclesiastical 
endorsing organization through the ecclesiastical endorsing official to 
verify the endorsement status of VA chaplains. The ecclesiastical 
endorsing official of an ecclesiastical endorsing organization is the 
key point of contact between VA and the organization and also between 
an individual who seeks employment as a VA chaplain or an individual 
who is seeking to be engaged under VA contract or appointed as on-
facility fee basis VA chaplains under 38 U.S.C. 7405. The name and 
address of the current official would be maintained by VA for current 
and future VA chaplains. VA publishes the names and contact information 
of the endorsing officials in its Web site so that individuals of a 
particular faith who wish to become VA chaplains know whom they must 
contact within their religious community to seek endorsement. Lastly, 
all ecclesiastical endorsing officials of an ecclesiastical endorsing 
organization must be designated by the same official within such an 
organization. If an ecclesiastical endorsing organization already has a 
recognized ecclesiastical endorsing official and is, therefore, 
accepted as an ecclesiastical endorsing organization, a component of 
that organization cannot designate its own endorsing official and 
become a separate endorsing organization. VA would add this requirement 
to maintain a central point of contact within an organization and to 
avoid any confusion if, for example, one portion of an ecclesiastical 
endorsing organization endorses an individual while another portion 
denies endorsement to that same individual.
    Proposed paragraph (d) would state the documentation that an 
ecclesiastical endorsing organization would need to submit in order to 
be recognized by VA as an ecclesiastical endorsing agent. The 
Department of Defense requires that endorsing organizations submit 
certain materials, and VA also proposes to require those same 
materials.\2\ Further,

[[Page 1291]]

the ecclesiastical endorsing organization must complete the VA form 
that requests designation as an ecclesiastical endorsing agent. In 
order to ensure that the expressed religious needs of the veteran 
population would be met, VA also proposes that ecclesiastical endorsing 
organizations submit documentation that states the organization's 
structure, including copies of the by-laws, constitution, articles of 
incorporation; membership requirements of the organization; membership 
requirements for clergy (education, licensure, experience, ordination, 
etc.); and the organization's beliefs and practices. VA cannot 
recognize more than one ecclesiastical endorsing organization from a 
faith, so this information would also help VA to verify whether the 
ecclesiastical endorsing organization is part of a larger organization 
that has already designated an ecclesiastical endorsing official. VA 
would also request the name of the individual who is seeking employment 
as a VA chaplain or seeking to be engaged by VA under contract or 
appointed as on-facility fee basis VA chaplains under 38 U.S.C. 7405. 
VA would not commence the process of considering the request from an 
ecclesiastical endorsing organization unless an individual from that 
organization seeks to be an active member of the VA chaplaincy. VA 
seeks comment on whether any of these requirements would place an undue 
burden on ecclesiastical organizations, and, if so, whether there are 
any alternate, less burdensome ways of ensuring that VA is able to meet 
the expressed religious needs of its veteran population. VA also seeks 
comment on whether it would be better to seek some of these materials 
through sub-regulatory rather than regulatory processes.\3\
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    \2\ The relevant section of Enclosure 3 of the Department of 
Defense Instruction states:
    E3.1.3. The religious organization shall submit documents 
verifying the following information with regard to such 
organization:
    E3.1.3.1. That the religious organization is organized as an 
entity functioning primarily to perform religious ministries to a 
non-military lay constituency and currently holds a section 
501(c)(3) exempt status (Reference (i)) as a church for Federal tax 
purposes from the Internal Revenue Service (IRS) (note ``church'' is 
used by the IRS not to denote a belief system, but to distinguish 
``churches'' from other types of religious organizations; see IRS 
Instructions for Form 1023 Schedule A). Such rules stipulate that 
the particular religious beliefs of the organization are truly and 
sincerely held and that the practices and rituals associated with 
the organization's religious belief or creed are not illegal or 
contrary to clearly defined public policy. In order to determine 
whether a particular religious organization has properly acquired, 
and currently maintains, an IRS tax exempt status and does not 
engage in practices that are illegal or contrary to defined public 
policy, the USD(PR) shall take appropriate steps to verify with the 
DoD Components and other Federal Agencies compliance with these 
requirements.
    E3.1.3.2. That it possesses ecclesiastical authority to grant 
and withdraw initial and subsequent ecclesiastical endorsement for 
ministry in the Armed Forces.
    E3.1.3.3. That it verifies the religious organization shall 
provide chaplains who shall function in a pluralistic environment, 
as defined in this Instruction, and who shall support directly and 
indirectly the free exercise of religion by all members of the 
Military Services, their family members, and other persons 
authorized to be served by the military chaplaincies.
    E3.1.3.4. That it agrees to abide by all DoD Directives, 
Instructions, and other guidance and with Military Department 
regulations and policies on the qualification and endorsement of 
RMPs for service as military chaplains.
    \3\ See Ecclesiastical Endorsing Organizations, VA Handbook 
1111.1.
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    Proposed paragraph (e) would state the notification that VA would 
provide to an ecclesiastical endorsing organization. If an 
ecclesiastical endorsing organization meets the requirements of 
proposed paragraph (c) and has submitted the required documentation 
stated in proposed paragraph (d), VA will notify the ecclesiastical 
endorsing organization in writing that the organization has been 
designated as an ecclesiastical endorsing organization. We would state 
that the designation of an ecclesiastical endorsing organization is for 
a period of 3 years from the date of notification. VA would continue to 
accept ecclesiastical endorsements for 3 years from that organization 
without requiring further documentation unless VA receives evidence 
that the ecclesiastical endorsing organization no longer meets the 
requirements of proposed Sec.  17.655. This would relieve the 
ecclesiastical endorsing organization's burden of supplying VA the 
required documentation every time that the organization endorses an 
individual.
    VA proposes to only consider requests from ecclesiastical endorsing 
organizations to designate an ecclesiastical endorsing official when an 
individual of the requesting ecclesiastical endorsing organization who 
meets the education, training and experience requirements for VA 
chaplains is actively applying for a VA chaplain vacancy, or applying 
for engagement as a VA chaplain under VA contract or applying for an 
appointment as on-facility fee basis VA chaplains under 38 U.S.C. 7405. 
VA has received requests to designate an ecclesiastical endorsing 
official in the past without receiving an application from an 
individual who meets VA chaplain qualification requirements. In such 
cases, VA has instructed the ecclesiastical endorsing organization that 
we would not take any action on such request, but VA would keep the 
request on file for a period of 2 years.
    Proposed paragraph (f) would state the reporting requirements. 
Because ecclesiastical endorsement is a condition of VA employment for 
a VA chaplain, VA must verify the endorsement of each VA chaplain. We 
would state that an ecclesiastical endorsing organization must provide 
an alphabetical listing of individuals endorsed for VA chaplaincy by 
the organization by January 1 of every calendar year. This 
certification would ensure that veterans receive spiritual care from 
endorsed individuals. As previously stated, VA would designate an 
organization as an ecclesiastical endorsing organization for a period 
of 3 years. In order to remain an ecclesiastical endorsing organization 
the organization must provide written documentation that the 
organization continues to meet the requirements of proposed Sec.  
17.655 every 3 years.
    Proposed paragraph (g) would state the steps VA would take to 
rescind an organization's status as an ecclesiastical endorsing 
organization. In most circumstances, a rescission of such status would 
not be considered permanent. VA would first send the ecclesiastical 
endorsing organization written notice stating the reasons for the 
rescission. The ecclesiastical endorsing organization will be given 60 
days to provide a written response addressing VA's concerns. Once the 
ecclesiastical endorsing organization submits the requested evidence or 
after the 60 day time period has expired, whichever comes first, VA 
will review the evidence provided and notify, in writing, the 
organization, and all VA chaplains endorsed by the organization, of its 
decision. An ecclesiastical endorsing organization must submit all 
documentation stated in proposed paragraph (d) to be reconsidered as an 
endorsing organization. As previously stated in this rulemaking, an 
ecclesiastical endorsing organization must meet the eligibility 
requirements of proposed paragraph (c) and submit all of the evidence 
listed in proposed paragraph (d) in order for such organization to 
ecclesiastically endorse individuals for employment as VA chaplains or 
be engaged by VA under contract or appointed as on-facility fee basis 
VA chaplains under 38 U.S.C. 7405. We would, therefore, state ``If an 
ecclesiastical endorsing organization is no longer able to endorse 
individuals for VA chaplaincy in accordance with this section, all 
ecclesiastical endorsements issued by that organization are considered 
to be withdrawn.''

Effect of Rulemaking

    Title 38 of the Code of Federal Regulations, as proposed to be 
revised by this rulemaking, would represent the exclusive legal 
authority on this subject. No contrary rules or procedures would be 
authorized. All VA guidance would be read to conform with this proposed 
rulemaking if possible or, if not possible, such guidance would be 
superseded by this rulemaking.

Paperwork Reduction Act

    This proposed rule includes a provision constituting a collection 
of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501-3521) that requires approval by the Office of Management and 
Budget (OMB). Accordingly, under 44 U.S.C. 3507(d), VA has submitted a 
copy of this rulemaking to OMB for review.
    OMB assigns control numbers to collections of information it 
approves. VA may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a 
currently valid OMB control

[[Page 1292]]

number. Proposed Sec.  17.655 contains a collection of information 
under the Paperwork Reduction Act of 1995. VA was previously collecting 
this information under OMB control number 2900-0610, which expired on 
September 2, 2008. If OMB does not approve the collection of 
information as requested, VA will immediately remove the provision 
containing a collection of information or take such other action as is 
directed by OMB.
    Comments on the collection of information contained in this 
proposed rule should be submitted to the Office of Management and 
Budget, Attention: Desk Officer for the Department of Veterans Affairs, 
Office of Information and Regulatory Affairs, Washington, DC 20503, 
with copies sent by mail or hand delivery to the Director, Regulations 
Management (02REG), Department of Veterans Affairs, 810 Vermont Avenue 
NW., Room 1068, Washington, DC 20420; fax to (202) 273-9026; or through 
www.Regulations.gov. Comments should indicate that they are submitted 
in response to ``RIN 2900-[WP2015-35] Ecclesiastical Endorsing 
Organizations.''
    OMB is required to make a decision concerning the collections of 
information contained in this proposed rule between 30 and 60 days 
after publication of this document in the Federal Register. Therefore, 
a comment to OMB is best assured of having its full effect if OMB 
receives it within 30 days of publication. This does not affect the 
deadline for the public to comment on the proposed rule.
    VA considers comments by the public on proposed collections of 
information in--
     Evaluating whether the proposed collections of information 
are necessary for the proper performance of the functions of VA, 
including whether the information will have practical utility;
     Evaluating the accuracy of VA's estimate of the burden of 
the proposed collections of information, including the validity of the 
methodology and assumptions used;
     Enhancing the quality, usefulness, and clarity of the 
information to be collected; and
     Minimizing the burden of the collections of information on 
those who are to respond, including through the use of appropriate 
automated, electronic, mechanical, or other technological collection 
techniques or other forms of information technology, e.g., permitting 
electronic submission of responses.
    The collections of information contained in Sec.  17.655 are 
described immediately following this paragraph, under their respective 
titles.
    Title: Ecclesiastical Endorsing Organizations.
    Summary of collection of information and description of the need 
for information and proposed use of information: Proposed paragraph (d) 
in Sec.  17.655 would read that an ecclesiastical endorsing 
organization would need to submit documentation in order for VA to 
accept ecclesiastical endorsements of individuals of such organization. 
The information is needed to establish the eligibility requirements 
that an ecclesiastical endorsing organization must meet in order to 
provide ecclesiastical endorsements of an individual who is seeking 
employment as a VA chaplain or who is seeking to be engaged by VA under 
contract or appointed as on-facility fee basis VA chaplains under 38 
U.S.C. 7405. VA has collected this information in the past through 
internal policy and guidance.\4\
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    \4\ Ecclesiastical Endorsing Organizations, VA Handbook 1111.1.
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    Description of likely respondents: Ecclesiastical endorsing 
organizations wishing to endorse applicants for VA Chaplaincy.
    Estimated number of respondents per year: 50.
    Estimated frequency of responses per year: 50 times per year.
    Estimated average burden per response: 45 minutes.
    Estimated total annual reporting and recordkeeping burden: 37.5 
hours.

Regulatory Flexibility Act

    The Secretary hereby certifies that this proposed 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. This proposed rule would directly affect only 
individuals and would not directly affect small entities. Therefore, 
pursuant to 5 U.S.C. 605(b), this rulemaking is exempt from the initial 
and final regulatory flexibility analysis requirements of 5 U.S.C. 603 
and 604.

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,'' requiring review by the Office of 
Management and Budget (OMB), unless OMB waives such review, 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 not to be a significant regulatory action under 
Executive Order 12866. VA's impact analysis can be found as a 
supporting document at http://www.regulations.gov, usually within 48 
hours after the rulemaking document is published. Additionally, a copy 
of the rulemaking and its impact analysis are available on VA's Web 
site at http://www.va.gov/orpm/, by following the link for ``VA 
Regulations Published From FY 2004 Through Fiscal Year to Date.''

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 one year. This proposed rule would have no such 
effect on State, local, and tribal governments, or on the private 
sector.

Catalog of Federal Domestic Assistance

    There are no Catalog of Federal Domestic Assistance numbers and 
titles for this rule.

Signing Authority

    The Secretary of Veterans Affairs, or designee, approved this 
document and

[[Page 1293]]

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. Gina S. 
Farrisee, Deputy Chief of Staff, Department of Veterans Affairs, 
approved this document on September 15, 2016, for publication.

List of Subjects in 38 CFR Part 17

    Administrative practice and procedure, Health professions, 
Veterans.

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. Gina S. 
Farrisee, Deputy Chief of Staff, Department of Veterans Affairs, 
approved this document on September 15, 2016, for publication.

Janet Coleman,
Chief, Regulation Policy & Management, Office of the Secretary, 
Department of Veterans Affairs.
    For the reasons set out in the preamble, VA proposes to amend 38 
CFR part 17 as follows:

PART 17--MEDICAL

0
1. The authority citation for part 17 continues to read as follows:

    Authority:  38 U.S.C. 501, and as noted in specific 
sections.Section 17.655 also issued under 38 U.S.C. 501(a), 7304, 
7405.

0
2. Add a center heading immediately after Sec.  17.647 to read as 
follows:
Chaplain Services
0
3. Add Sec.  17.655 to read as follows:


Sec.  17.655  Ecclesiastical endorsing organizations.

    (a) Purpose. This section establishes the eligibility requirements 
that an ecclesiastical endorsing organization must meet in order to 
provide ecclesiastical endorsements of individuals who are seeking 
employment as VA chaplains or seeking to be engaged by VA under 
contract or appointed as on-facility fee basis VA chaplains under 38 
U.S.C. 7405. Acceptance of an ecclesiastical endorsement by VA does not 
imply any approval by VA of the theology or practices of an 
ecclesiastical endorsing organization, nor does it obligate VA to 
employ the endorsed individual or any other member of the organization.
    (b) Definitions: The following definitions apply to this section:
    (1) Ecclesiastical endorsement means a written statement addressed 
to VA and signed by the designated endorsing official of an 
ecclesiastical endorsing organization certifying that an individual is 
in good standing with the faith group or denomination and, in the 
opinion of the endorsing official, is qualified to perform the full 
range of ministry, including all sacraments, rites, ordinances, 
rituals, and liturgies required by members of the faith group. 
Ecclesiastical endorsement is a condition of employment as a VA 
chaplain. An individual must obtain and maintain a full and active 
ecclesiastical endorsement to be employed as a VA chaplain.
    (2) Ecclesiastical endorsing official means an individual who is 
authorized to provide or withdraw ecclesiastical endorsements on behalf 
of an ecclesiastical endorsing organization.
    (3) Ecclesiastical endorsing organization means an organization 
that meets the eligibility requirements of paragraph (c) of this 
section and has been properly designated as an endorsing organization 
in accordance with paragraph (e) of this section.
    (c) Eligibility to Serve as an Ecclesiastical Endorsing 
Organization. An ecclesiastical endorsing organization must meet the 
following requirements before such organization can endorse an 
applicant for VA chaplaincy:
    (1) Be organized and function exclusively or substantially to 
provide religious ministries to a lay constituency and possess 
authority to both grant and withdraw initial and subsequent 
ecclesiastical endorsements;
    (2) Have tax-exempt status as a religious organization or church 
under the Internal Revenue Code, section 501(c)(3);
    (3) Agree to abide by all Federal and VA laws, regulations, 
policies, and issuances on the qualification and endorsement of persons 
for service as VA chaplains;
    (4) Agree to notify VA in writing of any withdrawal of an existing 
ecclesiastical endorsement within ten days after the date of such 
withdrawal;
    (5) Provide VA the documents stated in paragraph (d) of this 
section;
    (6) Notify VA in writing within 30 days of any change of the name, 
address or contact information of the individual that it designates as 
its ecclesiastical endorsing official; and
    (7) An ecclesiastical endorsing organization that is part of an 
endorsing organization by which its members can be endorsed cannot 
become a separate endorsing organization without the written permission 
of the larger endorsing organization.
    (d) Request to Designate Ecclesiastical Endorser. In order for an 
ecclesiastical endorsing organization to be recognized by VA such 
organization must submit the following:
    (1) A complete VA form that requests the designation of an 
ecclesiastical endorsing official;
    (2) A copy of an Internal Revenue Service document verifying that 
the organization currently holds a section 501(c)(3) exempt status 
(Reference (i)) as a church for Federal tax purposes from the Internal 
Revenue Service (IRS) (note ``church'' is used by the IRS not to denote 
a belief system, but to distinguish ``churches'' from other types of 
religious organizations; see IRS Instructions for Form 1023 Schedule 
A). Such rules stipulate that the particular religious beliefs of the 
organization are truly and sincerely held and that the practices and 
rituals associated with the organization's religious belief or creed 
are not illegal or contrary to clearly defined public policy. In order 
to determine whether a particular religious organization has properly 
acquired, and currently maintains, an IRS tax exempt status and does 
not engage in practices that are illegal or contrary to defined public 
policy, VA shall take appropriate steps to verify compliance with these 
requirements.
    (3) A document verifying that the organization shall provide 
chaplains who shall function in a pluralistic environment, and who 
shall support directly and indirectly the free exercise of religion by 
all veterans, their family members, and other persons authorized to be 
served by VA.
    (4) That it agrees to abide by all VA Directives, Instructions, and 
other guidance, regulations and policies on the qualification and 
endorsement of ministers for service as VA chaplains.
    (5) Documentation that states the structure of the organization, 
including copies of the articles of incorporation, by-laws and 
constitution, membership requirements of the organization, if any, the 
religious beliefs and practices of the organization, and the 
organization's requirements to become clergy; and
    (6) The name and address of the individual who is applying to 
become a VA chaplain. (The Office of Management and Budget has approved 
the information collection requirements in this section under control 
number XXXX-XXXX.)
    (e) Approval of Request to Designate an Ecclesiastical Endorsing 
Official. If an ecclesiastical endorsing organization meets the 
requirements of paragraph (c) of this section and has submitted the 
documents stated in paragraph (d) of this section, VA will notify the

[[Page 1294]]

organization in writing that such organization has been designated as 
an ecclesiastical endorsing organization. The designation will be for a 
period of 3 years from the date of notification. Once an organization 
is designated as an ecclesiastical endorsing organization, VA will 
accept ecclesiastical endorsements from that organization without 
requiring any further documentation from the organization during the 3 
year period, unless VA receives evidence that an organization no longer 
meets the requirements of this section. VA will only take action on an 
initial request to designate an ecclesiastical endorsing official when 
VA receives an application from an individual who is seeking employment 
as a VA chaplain or is seeking to be engaged under VA contract or 
appointed as on-facility fee basis VA chaplains under 38 U.S.C. 7405.
    (f) Reporting requirement. (1) To certify that VA chaplains 
continue to be endorsed by an ecclesiastical endorsing organization, 
such organization must provide VA an alphabetical listing of 
individuals who are endorsed by that endorsing organization and are 
employed as VA chaplains or are engaged by VA under contract or 
appointed as on-facility fee basis VA chaplains under 38 U.S.C. 7405 by 
January 1 of every calendar year.
    (2) In order for VA to continue to recognize an ecclesiastical 
endorsing organization, such organization must provide written 
documentation that it continues to meet the requirements of this 
section every 3 years.
    (g) Rescission of ecclesiastical endorsing organization. VA may 
rescind an organization's status as an ecclesiastical endorsing 
organization and refuse to accept ecclesiastical endorsements from such 
organization if it no longer meets the requirements of paragraph (c) of 
this section. VA will take the following steps before it rescinds the 
organization's status:
    (1) VA will give the ecclesiastical endorsing organization written 
notice stating the reasons for the rescission and give the organization 
60 days to provide a written reply addressing VA's concerns.
    (2) VA will notify the ecclesiastical endorsing organization and 
all VA chaplains endorsed by the organization in writing of its 
decision after VA reviews the evidence provided by the organization or 
after the 60 day time period has expired, whichever comes first.
    (3) Ecclesiastical endorsing organizations that are notified that 
they may no longer endorse individuals for VA chaplaincy because they 
do not meet the requirements of paragraph (c) of this section must 
resubmit all of the evidence stated in paragraph (d) of this section in 
order to be reconsidered as an endorsing organization.
    (4) If an ecclesiastical endorsing organization is no longer able 
to endorse individuals for VA chaplaincy in accordance with this 
section, all ecclesiastical endorsements issued by that organization 
are considered to be withdrawn.

[FR Doc. 2016-31949 Filed 1-4-17; 8:45 am]
 BILLING CODE 8320-01-P