[Federal Register Volume 89, Number 25 (Tuesday, February 6, 2024)]
[Proposed Rules]
[Pages 8126-8131]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-02183]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Parts 38 and 39

RIN 2900-AR82


Outer Burial Receptacles

AGENCY: Department of Veterans Affairs.

ACTION: Proposed rule.

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SUMMARY: The Department of Veterans Affairs (VA) proposes to revise its 
regulation that governs the outer burial receptacle (OBR) monetary 
allowance for burials in a VA national cemetery when a privately 
purchased OBR is used in lieu of a Government-furnished graveliner. 
First, VA proposes to expand applicability of the monetary allowance to 
burials in VA grant-funded State and Tribal cemeteries when a privately 
purchased OBR was used, or where an OBR is placed at the time of 
interment, at the cost of the State or Tribal Organization. Second, VA 
proposes to reimburse States and Tribal Organizations for OBRs that are 
pre-placed as part of a new construction or expansion grant project. In 
addition, VA proposes minor conforming revisions to its regulations 
governing aid for the establishment, expansion and improvement of 
veterans cemeteries to clarify that VA will reimburse the cost of 
preplaced OBRs separately from the grant award. These changes would 
implement new authorities provided in the Johnny Isakson and David P. 
Roe, M.D Veterans Health Care and Benefits Improvement Act of 2020. VA 
also proposes to amend the regulation governing OBRs by removing 
retroactive provisions no longer needed because the relevant time 
period has passed.

DATES: Comments must be received on or before April 8, 2024.

ADDRESSES: Comments must be submitted through www.regulations.gov. 
Except as provided below, comments received before the close of the 
comment period will be available at www.regulations.gov for public 
viewing, inspection, or copying, including any personally identifiable 
or confidential business information that is included in a comment. We 
post the comments received before the close of the comment period on 
the following website as soon as possible after they have been 
received: http://www.regulations.gov. VA will not post on 
Regulations.gov public comments that make threats to individuals or 
institutions or suggest that the commenter will take actions to harm 
the individual. VA encourages individuals not to submit duplicative 
comments; however, we will post comments from multiple unique 
commenters even if the content is identical or nearly identical to 
other comments. Any public comment received after the comment period's 
closing date is considered late and will not be considered in the final 
rulemaking. In accordance with the Providing Accountability Through 
Transparency Act of 2023, a 100 word Plain-Language Summary of this 
proposed rule is available at Regulations.gov, under RIN 2900-AR82.

FOR FURTHER INFORMATION CONTACT: Michelle Myers, Management and Program 
Analyst, Policy and Regulatory Service, National Cemetery 
Administration, Department of Veterans

[[Page 8127]]

Affairs, 810 Vermont Avenue NW, Washington, DC 20420. Telephone: (720) 
607-0364. (This is not a toll-free number.)

SUPPLEMENTARY INFORMATION:

Background

    Section 2306(e) of title 38, United States Code (U.S.C.), 
authorizes VA to provide an OBR for each new grave used for casketed 
remains in an open VA national cemetery. VA has implemented this 
authority in three ways: providing pre-placed OBRs as part of new 
construction or expansion of national cemeteries; installing a 
Government-furnished graveliner at the time of interment; and providing 
a monetary allowance for burials where the OBR was privately purchased. 
Pre-placed OBRs are installed in the ground during construction of a 
cemetery site, then covered with soil and grass. When needed for a 
burial, the area is unearthed, and the casket is placed. This allows 
for more efficient use of cemetery space, more efficient operations and 
improved appearance through the elimination of sunken graves. For 
gravesites where OBRs were not pre-placed during construction, VA may 
provide a graveliner at the time of interment. Typically, a Government-
furnished graveliner placed at the time of interment is pre-cast 
concrete and maintains the integrity of the soil around the grave, 
eliminating sunken graves and improving cemetery appearance.
    In some cases, families choose to use a privately purchased OBR in 
lieu of a Government-furnished graveliner. Section 2306(e)(4) 
authorizes VA to use a voucher system or other system of reimbursement 
to pay for OBRs for burials in a VA cemetery, and in December 2000, VA 
first implemented regulations to administer this authority as a 
monetary allowance in 38 CFR 38.629 (65 FR 76937).

New Authority

    On January 5, 2021, sec. 2203 of Public Law 116-315, the Johnny 
Isakson and David P. Roe, M.D Veterans Health Care and Benefits 
Improvement Act of 2020, amended section 2306(e) to expand 
applicability of the OBR program to burials in cemeteries that are the 
subject of a grant to a State or Tribal Organization under 38 U.S.C. 
2408.
    To implement this new authority, VA proposes to revise Sec.  38.629 
to include provision of OBRs for gravesites in State or Tribal 
Organization cemeteries funded through VA grants. Specifically, we 
propose to redesignate paragraph (b) as paragraph (b)(1) and revise 
redesignated paragraph (b)(1) by adding language to the existing 
purpose statement to include payment of a monetary allowance for 
interments in grant-funded cemeteries where a privately purchased OBR 
has been used. As well, we propose adding new paragraphs (b)(2) and (3) 
to explain that the purpose of the section now also provides for 
payment of a monetary allowance for OBRs placed at the time of 
interment in grant-funded cemeteries and for reimbursement of the cost 
for OBRs that are pre-placed as part of construction, expansion, or 
improvement of a grant-funded cemetery. These amendments establish that 
VA will use Sec.  38.629 to regulate both the monetary allowance and 
reimbursements associated with OBRs for burials in VA grantee-
cemeteries.
    VA proposes minor revisions to the heading and text of paragraph 
(c) to clarify that the content of the paragraph refers to subsequent 
interments with privately purchased OBRs. In burials where a casket 
already exists in a grave with or without an OBR, subsequent placement 
of a second casket in an OBR would not be permitted in the same grave 
unless the cemetery director determines that the already interred 
casket would not be damaged. We propose replacing the current reference 
to ``graveliner'' in paragraph (c) with the broader term of ``outer 
burial receptacle'' to be more consistent with terminology used 
throughout the regulatory text. As well, we propose removing the word 
``national'' to make the paragraph applicable to VA grant-funded 
cemetery directors, who now have responsibilities related to potential 
use of privately purchased OBRs. These revisions clarify the meaning 
and applicability of the paragraph.

Monetary Allowance for Privately Purchased OBRs

    VA proposes to revise the heading of paragraph (d) to specify that 
the provision refers to payment of monetary allowance for privately 
purchased OBRs and to redesignate paragraph (d) as paragraph (d)(1). VA 
proposes to add a new paragraph (d)(2) to specify provision of a 
monetary allowance for burials in a grant-funded cemetery where a 
privately purchased OBR was used. VA would require a request for 
payment from the person who paid for the OBR along with evidence of 
such payment. The request must be verified by the cemetery director 
where the burial occurred. Since this authority is effective, by law, 
on and after January 5, 2023, the revision would include the effective 
date.

Monetary Allowance for OBRs Placed at Time of Interment

    VA proposes to redesignate paragraph (e) as (f) and add new 
paragraph (e) to provide for payment of monetary allowance for OBRs 
placed at time of interment. VA would pay an allowance to a State or 
Tribal Organization for OBRs placed at the time of interment for 
burials in a grantee cemetery. Since this authority is effective, by 
law, on and after January 5, 2023, the revision would include the 
effective date. VA proposes to issue payment on a quarterly basis for 
the total number of burials that occurred during the quarter, when 
requested by the State or Tribal Organization on the approved VA 
application form. Since the monetary allowance for a single OBR is a 
relatively small amount, VA proposes a quarterly basis as a reasonable 
approach to minimize the number of applications for payment that need 
to be submitted by the States and Tribal Organizations and to allow for 
efficient management and processing of the requests by VA. Rather than 
requiring a separate application for each relevant interment, States 
and Tribal Organizations would submit one application for all OBRs used 
at time of interment during each quarter. In addition, proposed 
paragraph (e)(3) would establish that payment may not be made for 
burials where a fee for the OBR was charged to the decedent's family or 
other responsible party.

Reimbursement for OBRs Pre-Placed as Part of Construction

    VA proposes to add a new paragraph (g) to provide for reimbursement 
of the cost of OBRs that are pre-placed as part of new construction, 
expansion or improvement of a grant-funded cemetery. VA proposes to 
reimburse States and Tribal Organizations for the cost of pre-placed 
OBRs installed in conjunction with construction and expansion cemetery 
grants. States and Tribal Organizations would be required to submit a 
request for reimbursement using Standard Form 271, Outlay Report and 
Request for Reimbursement for Construction Programs. This approach is 
standard for requesting reimbursement for construction projects and is 
already used by the Veterans Cemetery Grants Program (VCGP) as part of 
the grant award process. The information required for determining the 
cost and the agency entitled to reimbursement is included in 
information already being collected as part of the veterans cemetery 
grant application and award process, so there would be no impact 
regarding the Paperwork Reduction Act. This

[[Page 8128]]

provision for reimbursement aligns administration of the OBR benefit 
for VA grant-funded cemeteries with that of VA national cemeteries.

Audit Provisions

    VA proposes to add a new paragraph (h) to establish that a State or 
Tribal Organization that seeks payment in the form of reimbursement or 
monetary allowance for OBRs under Sec.  38.629 would be subject to 
related inspections, audits, and reporting. Grant-funded cemeteries 
already are subject to inspections, audits, and reporting under Sec.  
39.122 to ensure compliance with regulatory provisions governing the 
VCGP; however, VA wants to ensure that grant-funded cemeteries that are 
seeking payment for OBRs under Sec.  38.629 are fully advised in 
regulation that such requests and payments are subject to inspections, 
audits, and reporting.
    Accordingly, VA proposes to also revise Sec.  39.122, which governs 
inspections, audits, and reports related to the VCGP. VA proposes to 
revise paragraph (a) to require a State or Tribal Organization to allow 
VA inspectors and auditors to conduct inspections as necessary to 
ensure compliance with the provisions of part 39 and with the 
provisions of Sec.  38.629 regarding OBRs. This would ensure that grant 
recipients are aware that if they seek payment for OBRs in accordance 
with Sec.  38.629, they would be subject to inspection, audit, and 
reporting requirements related to such payments.

Removing Outdated Provisions

    VA proposes to amend Sec.  38.629 to remove outdated retroactive 
provisions by removing references to dates in paragraphs (d) and (e). 
Current paragraph (d) restricts the monetary allowance to burials where 
a privately purchased OBR was used on and after October 9, 1996, and 
includes a specific provision for making payment for burials during the 
period October 9, 1996, through December 31, 1999. These provisions 
were included because the OBR allowance authority took effect on 
October 9, 1996, before the regulations were finalized on December 8, 
2000. However, those portions of current paragraph (d) are no longer 
necessary since the relevant time periods have passed.
    Similarly, current paragraphs (e)(1) and (2) each refer to the 
timeframe for VA's annual publication in a Federal Register notice of 
the OBR reimbursement amount from ``calendar year 2000 and each 
calendar year thereafter.'' The references to calendar year 2000 are no 
longer necessary, and we propose removing them from the regulation in 
redesignated paragraphs (f)(1) and (f)(2). Finally, current paragraph 
(e)(3) (or redesignated paragraph (f)(3)) establishes that the amount 
of the monetary allowance for calendar year 2000 will be used for 
payment of any allowances for interments that occurred during the 
period from October 9, 1996, through December 31, 1999. That paragraph 
is no longer necessary because the relevant time period has passed. 
Because the OBR payments would be calculated annually, VA would only 
pay the current amount for qualifying interments for that calendar 
year.

Section Title

    VA proposes to revise the title of Sec.  38.629 from ``Outer Burial 
Receptacle Allowance'' to ``Outer Burial Receptacles'' to reflect the 
change in scope of the regulation, which previously only included 
provision of an allowance for privately purchased OBRs, but would now 
include reimbursement to grant-funded cemeteries for procurement costs 
of OBRs.

Clarifying Sec.  39.50

    Finally, VA proposes to revise Sec.  39.50 to clarify that VA would 
reimburse the cost of pre-placed OBRs separately from the grant award. 
Section 39.50 governs the amount of grants awarded under subpart B--
Establishment, Expansion, and Improvement Projects. First, VA proposes 
to delete the phrase ``preplaced liners or crypts,'' from Sec.  
39.50(b)(2) where it is included as one of the examples of costs that 
may be included in the total cost of a project. Since VA is now 
authorized to provide OBRs to grant-funded cemeteries, the cost of 
those items should not be included in the total cost of the project 
when determining the amount of a grant. Second, VA proposes to insert a 
new paragraph (e) to clarify that VA would reimburse the cost of 
preplaced OBRs separately, in accordance with the new provisions of 
Sec.  38.629.

Executive Orders 12866, 13563 and 14094

    Executive Order 12866 (Regulatory Planning and Review) directs 
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 14094 (Modernizing 
Regulatory Review) supplements and reaffirms the principles, 
structures, and definitions governing contemporary regulatory review 
established in Executive Orders 12866 and 13563. The Office of 
Information and Regulatory Affairs has determined that this rulemaking 
is not a significant regulatory action under Executive Order 12866, as 
amended by Executive Order 14094. The Regulatory Impact Analysis 
associated with this rulemaking can be found as a supporting document 
at www.regulations.gov.

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). The Secretary acknowledges that this rule may affect 
some Tribal governments that may be considered small entities; however, 
the economic impact would be entirely beneficial. This proposed rule 
would impose no mandatory requirements or costs on Tribal governments 
as a whole and would only affect those that are recipients of veterans 
cemetery grants. To the extent that small entities are affected, the 
impact of this proposed rule would be entirely beneficial as it would 
provide reimbursement for costs of OBRs associated with casketed 
burials in grant-funded cemeteries. Therefore, pursuant to 5 U.S.C. 
605(b), the initial and final regulatory flexibility analysis 
requirements of 5 U.S.C. 603 and 604 do not apply.

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.

Paperwork Reduction Act

    This proposed rule includes provisions constituting a new 
collection of information under the Paperwork Reduction Act of 1995 (44 
U.S.C. 3501-3521) that require approval by the Office

[[Page 8129]]

of Management and Budget (OMB). Accordingly, under 44 U.S.C. 3507(d), 
VA has submitted a copy of this rulemaking action to OMB for review and 
approval.
    OMB assigns control numbers to collection 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 number. If OMB does not approve the 
collection of information as requested, VA will immediately remove the 
provisions containing the collection of information or take such other 
action as is directed by OMB.
    Comments on the new collection of information contained in this 
rulemaking should be submitted through www.regulations.gov. Comments 
should be sent within 60 days of publication of this rulemaking. The 
collection of information associated with this rulemaking can be viewed 
at: www.reginfo.gov/public/do/PRAMain.
    OMB is required to make a decision concerning the collection of 
information contained in this rulemaking between 30 and 60 days after 
publication of this rulemaking 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 provisions of this 
rulemaking.
    The Department considers comments by the public on new collection 
of information in--
     Evaluating whether the new collections of information are 
necessary for the proper performance of the functions of the 
Department, including whether the information will have practical 
utility;
     Evaluating the accuracy of the Department's estimate of 
the burden of the new collection 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 collection 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 collection of information associated with this rulemaking 
contained in 38 CFR 38.629 is described immediately following this 
paragraph.
    Title: Request for Payment of Monetary Allowance for Outer Burial 
Receptacles.
    OMB Control No.: 2900-XXXX.
    CFR Provision: 38 CFR 38.629.
     Summary of collection of information: The new collection 
of information in proposed 38 CFR 38.629 would require a State or 
Tribal Organization to submit a request for payment of monetary 
allowance for OBRs placed at the time of interment, and it would 
require individuals to submit a request for payment of monetary 
allowance for a privately purchased OBR.
     Description of need for information and proposed use of 
information: The information submitted on the request form would be 
necessary to initiate payment of entitlement. The information would 
identify the claimant and the amount claimed and would be necessary to 
make determinations for payment and for other budget, oversight and 
compliance purposes associated with administering this benefit for 
burials in State and Tribal Organization veterans cemeteries. In 
addition, VCGP would need this data to answer questions that arise 
during the course of the year to respond to Congressional 
correspondence.
     Description of likely respondents: Primarily VCGP grantees 
that are States and Tribal Organizations. A small number of private 
individuals may be respondents.
     Estimated number of respondents: 110 in FY2024.
     Estimated frequency of responses: Quarterly for States and 
Tribal Organizations that need to request payment of monetary allowance 
for burials where OBRs are placed at time of interment. One time 
occurrence for any individual who needs to claim monetary allowance for 
a privately purchased OBR.
     Estimated average burden per response:

                                                                 Estimated Burden Hours
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                             (x) times       (x) times
                                                             Estimated       Estimated        Average       = (Equals)                     Actual number
                                                             number of       number of      minutes per       minutes        / by 60 =       of burden
                                                            respondents      responses       response                                          hours
--------------------------------------------------------------------------------------------------------------------------------------------------------
Monetary Allowance for Privately Purchased OBR..........             100               1              15           1,500                              25
Monetary Allowance for OBRs Placed at Time of Interment.              10               4              15             600                              10
                                                         -----------------------------------------------------------------------------------------------
    Accumulative Total..................................             110  ..............  ..............  ..............                              35
--------------------------------------------------------------------------------------------------------------------------------------------------------

     Estimated total annual reporting and recordkeeping burden: 
VA estimates the total annual reporting and recordkeeping burden to be 
35 burden hours. Based on an estimated number of 100 respondents filing 
one-time claims with an average of 15 minutes for the response, and an 
estimated number of 10 respondents filing claims quarterly with an 
average of 15 minutes for the response, the total annual reporting and 
recordkeeping burden is estimated to be 35 hours.
     Estimated cost to respondents per year: VA estimates the 
total annual cost for all respondents to be $1041.60. To estimate the 
total information collection burden cost, VA used the Bureau of Labor 
Statistics (BLS) mean hourly wage for ``all occupations'' of $29.76 per 
hour. This information is available at https://www.bls.gov/oes/2022/may/oes_nat.htm#00-0000. Based on the estimated total annual burden of 
35 hours, and using a mean hourly wage of $29.76, VA estimates the 
total information collection burden cost to be $1041.60 per year (35 
hours x $29.76 per hour).

Assistance Listing

    The Assistance Listing numbers and titles for the programs affected 
by this document are 64.201, National Cemeteries; 64.203, State 
Cemetery Grants; and 64.206, VA Outer Burial Receptacle Allowance.

[[Page 8130]]

List of Subjects in 38 CFR Parts 38 and 39

38 CFR Part 38

    Administrative practice and procedure, Cemeteries, Veterans.

38 CFR Part 39

    Cemeteries, Grant programs--veterans, Veterans.

Signing Authority

    Denis McDonough, Secretary of Veterans Affairs, signed and approved 
this document on January 30, 2024, 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.

Luvenia Potts,
Regulation Development Coordinator Office of Regulation Policy & 
Management, Office of General Counsel, Department of Veterans Affairs.

    For the reasons stated in the preamble, VA proposes to amend 38 CFR 
parts 38 and 39 as set forth below:

PART 38--NATIONAL CEMETERIES OF THE DEPARTMENT OF VETERANS AFFAIRS

0
1. The authority citation for part 38 continues to read as follows:

    Authority:  38 U.S.C. 107, 501, 512, 531, 2306, 2400, 2402, 
2403, 2404, 2407, 2408, 2411, 7105.

0
2. Amend Sec.  38.629 as follows:
0
a. Revise the section heading and paragraphs (b), (c), and (d);
0
b. Revise the paragraph (d) heading;
0
c. Redesignate paragraph (e) as paragraph (f);
0
d. Add new paragraph (e);
0
e. Revise the heading to newly redesignated paragraph (f) and revise 
newly redesignated paragraphs (f)(1) introductory text and (f)(2);
0
f. Remove newly redesignated (f)(3); and
0
e. Add paragraphs (g) and (h).
    The revisions and additions read as follows:


Sec.  38.629  Outer burial receptacles.

* * * * *
    (b) Purpose. (1) This section provides for payment of a monetary 
allowance for an outer burial receptacle for any interment with 
casketed remains in a VA national cemetery where a privately purchased 
outer burial receptacle has been used in lieu of a Government-furnished 
graveliner and, for any interment on or after January 5, 2023, in a 
cemetery that is the subject of a grant to a State or Tribal 
Organization under 38 U.S.C. 2408 where a privately purchased outer 
burial receptacle has been used.
    (2) This section also provides for payment of a monetary allowance 
for outer burial receptacles placed at the time of interment, for 
burials on or after January 5, 2023, in a cemetery that is the subject 
of a grant awarded to a State or Tribal Organization under 38 U.S.C. 
2408.
    (3) This section also provides for reimbursement of the cost of 
pre-placed outer burial receptacles that are installed as part of 
construction or expansion of a cemetery that is the subject of a grant 
awarded on or after January 5, 2023, to a State or Tribal Organization 
under 38 U.S.C. 2408.
    (c) Subsequent interments. In burials where a casket already exists 
in a grave with or without an outer burial receptacle, subsequent 
placement of a second casket in an outer burial receptacle will not be 
permitted in the same grave unless the cemetery director determines 
that the already interred casket will not be damaged.
    (d) Payment of monetary allowance for privately purchased outer 
burial receptacles. (1) VA will pay a monetary allowance for each 
casket burial in a VA national cemetery where a privately purchased 
outer burial receptacle was used in lieu of a Government-furnished 
graveliner. Payment will be made to the person identified in records 
contained in the National Cemetery Administration (NCA) electronic 
ordering system as the person who paid for the outer burial receptacle. 
No application is required to receive payment of this monetary 
allowance as the payment is processed automatically based on entry in 
the system.
    (2) VA will pay a monetary allowance for each casket burial in a 
cemetery that is the subject of a grant to a State or Tribal 
Organization under 38 U.S.C. 2408, where a privately purchased outer 
burial receptacle was used on or after January 5, 2023. The person who 
paid for the outer burial receptacle must submit a request for payment 
of the allowance on the appropriate VA form. The request must be 
verified by the cemetery director where the burial occurred.
    (e) Payment of monetary allowance for outer burial receptacles 
placed at time of interment. (1) VA will pay a monetary allowance for 
outer burial receptacles placed at the time of interment for burials on 
or after January 5, 2023, in a cemetery that is the subject of a grant 
to a State or Tribal Organization under 38 U.S.C. 2408. Such payments 
may be issued on a quarterly basis and will be paid to the State Agency 
or Tribal Organization.
    (2) VA will pay the allowance only if a State or Tribal 
Organization submits a request for payment on the appropriate VA form. 
Requests may be submitted on a quarterly basis for the total number of 
burials that required an outer burial receptacle in that quarter and 
for which a fee for the outer burial receptacle was not charged to the 
decedent's family or other responsible party. Requests for payment 
under this section must be submitted within one year of interment.
    (3) No payment may be made for burials where a fee for the outer 
burial receptacle was charged to the decedent's family or other 
responsible party.
    (f) Amount of the monetary allowance. (1) The monetary allowance 
will be the average cost, as determined by VA, of Government-furnished 
graveliners, less the administrative costs incurred by VA in processing 
and paying the allowance.
* * * * *
    (2) The amount of the allowance for each calendar year will be 
published in the ``Notices'' section of the Federal Register. The 
Federal Register notice will also provide, as information, the 
determined average cost of Government-furnished graveliners and the 
determined amount of the administrative costs to be deducted.
    (g) Reimbursement for pre-placed outer burial receptacles. (1) VA 
will reimburse the cost of outer burial receptacles that are pre-placed 
as part of new construction, expansion, or improvement of a cemetery 
that is the subject of a grant to a State or Tribal Organization under 
38 U.S.C. 2408 if the grant was awarded on or after January 5, 2023. 
The reimbursement will be paid to the State or Tribal Organization or, 
if designated by the State or Tribal Organization representative, the 
State or Tribal veterans cemetery for which such project is being 
carried out, or to any other State or Tribal Organization agency or 
instrumentality.
    (2) States and Tribal Organizations must submit a request for 
reimbursement of the cost of pre-placed outer burial receptacles using 
Standard Form 271, Outlay Report and Request for Reimbursement for 
Construction Programs, with supporting documentation. The Director of 
the Veterans Cemetery Grants Program must review and certify the 
request for payment. Funds paid under this section for pre-placed outer 
burial receptacles, as part of an approved establishment, expansion, 
and improvement project, shall be used solely for payment of such outer 
burial receptacles. As a condition

[[Page 8131]]

for payment, the representative of the State or Tribal Organization 
must submit to VA an invoice reporting the cost for purchase and 
delivery of outer burial receptacles.
    (h) Audits. A State or Tribal Organization that seeks reimbursement 
for the cost of outer burial receptacles under this section will be 
subject to inspections, audits and reports in accordance with Sec.  
39.122.

(Authority: 38 U.S.C. 2306(e))

PART 39--AID FOR THE ESTABLISHMENT, EXPANSION, AND IMPROVEMENT, OR 
OPERATION AND MAINTENANCE, OF VETERANS CEMETERIES

0
3. The authority citation for part 39 continues to read as follows:

    Authority:  38 U.S.C. 101, 501, 2408, 2411, 3765.

0
4. Amend Sec.  39.50 as follows:
0
a. Remove ``preplaced liners or crypts,'' from paragraph (b)(2); and
0
b. Add paragraph (e);
    The addition reads as follows:


Sec.  39.50  Amount of grant.

* * * * *
    (e) VA will reimburse the cost of preplaced outer burial 
receptacles separately in accordance with Sec.  38.629.
* * * * *
0
5. Amend Sec.  39.122 by revising paragraph (a) to read as follows:


Sec.  39.122  Inspections, audits, and reports.

    (a) A State or Tribal Organization will allow VA inspectors and 
auditors to conduct inspections as necessary to ensure compliance with 
the provisions of this part and with provisions of Sec.  38.629 
regarding outer burial receptacles. The State or Tribal Organization 
will provide to VA evidence that it has met its responsibilities under 
the Single Audit Act of 1984.
* * * * *
[FR Doc. 2024-02183 Filed 2-5-24; 8:45 am]
BILLING CODE 8320-01-P