[Federal Register Volume 87, Number 202 (Thursday, October 20, 2022)]
[Rules and Regulations]
[Pages 63695-63696]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-22559]


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DEPARTMENT OF VETERANS AFFAIRS

 38 CFR Part 14

[2900-AR72]


Delegated Authority to Settle Federal Tort Claims Act 
Administrative Tort Claims

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: The Department of Veterans Affairs (VA) is amending its 
regulation governing delegated authority to settle administrative tort 
claims pursuant to the Federal Tort Claims Act (FTCA) to $500,000. This 
regulation also amends the delegated authority to the Veterans Health 
Administration (VHA) to $5,000 to settle non-medical malpractice claims 
pursuant to the FTCA.

DATES: Effective date: This rule is effective October 20, 2022.
    Applicability date: The provisions of this final rule shall apply 
to all VA FTCA settlements on or after the date of publication of this 
final rule in the Federal Register.

FOR FURTHER INFORMATION CONTACT: Michael Newman, Chief Counsel, Office 
of the General Counsel (021), Department of Veterans Affairs, 810 
Vermont Avenue NW, Washington, DC 20420, (202) 461-4900. (This is not a 
toll-free telephone number.)

SUPPLEMENTARY INFORMATION: Title 28 of the Code of Federal Regulations, 
chapter 1, governs the Department of Justice (DOJ) and part 14 covers 
administration of claims under the Federal Tort Claims Act. The 
regulations in 28 CFR part 14, appendix A, Delegations of Settlement 
Authority, were amended by DOJ effective March 23, 2020 (85 FR 10267). 
The amendment increases the authority delegated to the Secretary of 
Veterans Affairs to settle administrative tort claims where the amount 
of settlement does not exceed $500,000. Previously delegated authority 
was limited to claims not exceeding $300,000. Presently, 38 CFR 14.600 
reflects the delegated authority prior to March 23, 2020, which no 
longer applies to the Secretary's delegated authority. As a result of 
the DOJ delegation increasing the Secretary's settlement authority 
under the FTCA, 38 CFR 14.600 no longer accurately reflects the 
settlement authority of the General Counsel, Deputy General Counsel, 
and Chief Counsel, Torts Law Group or those authorized to act for them. 
Therefore 38 CFR 14.600 is amended to reflect this increase in 
delegated settlement authority.
    In addition, effective May 21, 2020, VHA Directive 1093, Delegation 
of Authority to Process Tort Claims, was revised to increase delegated 
settlement authority for VISN and VA medical facility Directors. The 
Directive allows resolution of non-medical malpractice (personal injury 
or property damage) claims (``small claims'') asserting damages of 
$5,000 or less to be settled within the Directors' authority. 
Presently, 38 CFR 14.600 reflects the maximum delegated authority to 
the Directors as $2,500. Therefore 38 CFR 14.600 is amended to reflect 
this increase in VHA's delegated settlement authority.

Administrative Procedure Act

    This final rule is a procedural rule that does not impose new 
rights, duties, or obligations on affected individuals but, rather, 
eliminates duplicate filings under the statutory requirement that 
agents and attorneys file a copy of a fee agreement ``with the 
Secretary.'' See 38 U.S.C. 5904(c)(2). Therefore, it is exempt from the 
prior notice-and-comment and delayed-effective-date requirements of 5 
U.S.C. 553. See 5 U.S.C. 553(b)(A) and (d)(3). This rule merely 
acknowledges settlement authority increases of: (1) VA to settle FTCA 
administrative claims without DOJ approval; and (2) VHA to settle small 
claims.

Paperwork Reduction Act

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

Regulatory Flexibility Act

    The initial and final regulatory flexibility analyses 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 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. At a minimum, this rule will affect 
only: (1) Office of General Counsel (OGC) attorneys and paralegals 
settling FTCA administrative claims; and (2) VHA employees settling 
small claims. However, it will not have a significant economic impact 
on these individuals, as it will result in decreased involvement of DOJ 
and OGC. Therefore, pursuant to 5 U.S.C. 605(b), this rulemaking is 
exempt from the initial and final regulatory flexibility

[[Page 63696]]

analysis requirements of sections 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. 
The Office of Information and Regulatory Affairs has determined that 
this rule is not a significant regulatory action under Executive Order 
12866. The Regulatory Impact Analysis associated with this rulemaking 
can be found as a supporting document at www.regulations.gov.

Assistance Listing

    There are no Assistance Listing numbers and titles for the programs 
affected by this document.

Congressional Review Act

    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
the Office of Information and Regulatory Affairs designated this rule 
as not a major rule, as defined by 5 U.S.C. 804(2).

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 final rule will have no such effect on 
State, local, and tribal governments, or on the private sector.

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.

    Signing Authority:
    Denis McDonough, Secretary of Veterans Affairs, approved this 
document on October 11, 2022, 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.

Jeffrey M. Martin,
Assistant Director, Office of Regulation Policy & Management, Office of 
General Counsel, Department of Veterans Affairs.

    For the reasons set out 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. The authority citation for part 14 continues 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 revising paragraphs (c)(1), (2), and (3) and 
(d)(1) and (2) and the parenthetical authority citation at the end of 
the section to read as follows:


Sec.  14.600  Federal Tort Claims Act--general.

* * * * *
    (c) * * *
    (1) To the Under Secretary for Health, the Deputy Under Secretary 
for Health, Veterans Integrated Service Network (VISN) Directors, and 
VA Medical Facility Directors; with respect to any non-medical 
malpractice claim for $5,000 or less that arises out of the operations 
of the Veterans Health Administration.
    (2) To the General Counsel, Deputy General Counsel, and Chief 
Counsel, Torts Law Group or those authorized to act for them with 
respect to any claim; provided that any award, compromise, or 
settlement in excess of $500,000 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 $200,000 a memorandum fully explaining the basis for the 
action taken shall be sent to the Department of Justice.
    (3) To the General Counsel, Deputy General Counsel, and Chief 
Counsel, Torts Law Group or those authorized to act for them with 
respect to any claim, provided that:
    (i) Any award, compromise, or settlement in excess of $300,000 but 
not more than $500,000 shall be effected only with the prior written 
approval of the General Counsel, Deputy General Counsel, or Chief 
Counsel, Torts Law Group; provided further that whenever a settlement 
is effected in an amount in excess of $200,000, 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 $300,000 shall be effected only with the prior written approval 
of the General Counsel, Deputy General Counsel, or Chief Counsel, Torts 
Law Group; and
    (iii) Any award, compromise, or settlement in excess of $500,000 
shall be effected only with the prior written approval of the General 
Counsel, Deputy General Counsel, or Chief Counsel, Torts Law Group; and 
with the prior written approval of the Attorney General or his or her 
designee.
    (d) * * *
    (1) To the Torts Law Group, with respect to any claim for $5,000 or 
less that arises out of the operations of the Veterans Health 
Administration.
    (2) To the General Counsel, Deputy General Counsel, and Chief 
Counsel, Torts Law Group with respect to any claim; provided that any 
award, compromise, or settlement in excess of $500,000 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 $200,000, 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. 2022-22559 Filed 10-19-22; 8:45 am]
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