81_FR_44924 81 FR 44792 - Authority To Solicit Gifts and Donations

81 FR 44792 - Authority To Solicit Gifts and Donations

DEPARTMENT OF VETERANS AFFAIRS

Federal Register Volume 81, Issue 132 (July 11, 2016)

Page Range44792-44795
FR Document2016-16234

The Department of Veterans Affairs (VA) amends its National Cemeteries regulation on the prohibition of officials and employees of VA from soliciting contributions from the public or authorizing the use of their names, name of the Secretary, or the name of VA for the purpose of making a gift or donation to VA. The amended regulation gives the Under Secretary of Memorial Affairs (USMA), or his designee, authority to solicit gifts and donations, which include monetary donations, in-kind goods and services, and personal property, or authorize the use of their names, the name of the Secretary, or the name of VA by an individual or organization in any campaign or drive for donation of money or articles to VA for the purpose of beautifying, or for the benefit of, one or more national cemeteries.

Federal Register, Volume 81 Issue 132 (Monday, July 11, 2016)
[Federal Register Volume 81, Number 132 (Monday, July 11, 2016)]
[Rules and Regulations]
[Pages 44792-44795]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-16234]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 38

RIN 2900-AP75


Authority To Solicit Gifts and Donations

AGENCY: Department of Veterans Affairs.

ACTION: Direct final rule.

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SUMMARY: The Department of Veterans Affairs (VA) amends its National 
Cemeteries regulation on the prohibition of officials and employees of 
VA from soliciting contributions from the public or authorizing the use 
of their names, name of the Secretary, or the name of VA for the 
purpose of making a gift or donation to VA. The amended regulation 
gives the Under Secretary of Memorial Affairs (USMA), or his designee, 
authority to solicit gifts and donations, which include monetary 
donations, in-kind goods and services, and personal property, or 
authorize the use of their names, the name of the Secretary, or the 
name of VA by an individual or organization in any campaign or drive 
for donation of money or articles to VA for the purpose of beautifying, 
or for the benefit of, one or more national cemeteries.

DATES: This direct final rule is effective on September 9, 2016, 
without further notice, unless VA receives a significant adverse 
comment by August 10, 2016. If we receive a significant adverse comment 
by August 10, 2016, we will publish a document in the Federal Register 
withdrawing this rule before the effective date. See section on 
Administrative Procedure Act below.

ADDRESSES: Written comments may be submitted by email through http://www.regulations.gov; by mail or hand-delivery to Director, Regulation 
Policy and Management (02REG), Department of Veterans Affairs, 810 
Vermont Avenue NW., Room 1068, Washington, DC 20420; or by fax to (202) 
273-9026. (This is not a toll-free number.) Comments should indicate 
that they are submitted in response to ``RIN 2900-AP75--Authority to 
Solicit Gifts and Donations.'' 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 number.) In addition, during 
the comment period, comments may be viewed online through the Federal 
Docket Management System (FDMS) at http://www.regulations.gov.

[[Page 44793]]


FOR FURTHER INFORMATION CONTACT: Thomas Howard, Chief of Staff, 
National Cemetery Administration (NCA), Department of Veterans Affairs, 
(40A), 810 Vermont Avenue NW., Washington, DC 20420, (202) 461-6215. 
(This is not a toll-free number.)

SUPPLEMENTARY INFORMATION: Title 38 U.S.C. 2407 authorizes the 
Secretary of VA to ``accept gifts, devises, or bequests from legitimate 
societies and organizations or reputable individuals, made in any 
manner, which are made for the purpose of beautifying national 
cemeteries, or are determined to be beneficial to such cemetery.'' In 
1978, VA published implementing regulations for this authority at 38 
CFR 1.603 (now redesignated as 38 CFR 38.603). 43 FR 26572 (June 21, 
1978). Included in this regulation, at Sec.  38.603(b), is a 
prohibition on the solicitation of contributions from the public by any 
VA official or employee. Unfortunately, as was common at the time, the 
proposed and final rulemaking documents provide less information 
regarding the rationale for the regulations than is commonly provided 
today, so the full rationale for this regulation, including the reason 
for the prohibition on solicitations, is no longer available. The 
prohibition is not contained in the statutory authority at section 
2407, nor does the plain language of the statute indicate a rationale 
for the prohibition. VA is easing this restriction because it 
negatively impacts VA's ability to fully realize the potential of its 
authority to accept gifts and donations for the benefit of the national 
cemeteries.
    The gift and donation acceptance authority at section 2407 is just 
one of several authorities under which VA may accept gifts or donations 
that advance the mission or enhance the services that VA provides. 
These authorities include, among others, 38 U.S.C. 521 (acceptance of 
funds to support recreational activities furthering the rehabilitation 
of disabled veterans); 2406 (gifts of land for national cemeteries); 
8103 and 8104 (acceptance of land, interests in land, or facilities for 
use as medical facilities); and 8301 (acceptance of gifts for use in 
carrying out all laws administered by VA). None of these statutory 
authorities nor any implementing regulations for any of the 
authorities, includes a provision like that contained in Sec.  
38.603(b), prohibiting the solicitation of contributions.
    Legal guidance indicates that such a prohibition is not required by 
law. In 2015, VA's Office of General Counsel (OGC) issued a precedent 
opinion concluding that VA's express statutory authority to accept 
gifts under section 8301 included the implied statutory authority to 
solicit those gifts. VAOPGCPREC 2-2015, Mar. 20, 2015. Outside VA, a 
2001 opinion from the Office of Legal Counsel (OLC) of the Department 
of Justice found that the broad statutory authority granted by Congress 
in section 403(b)(1) of the Office of Government Ethics Authorization 
Act of 1996 to accept gifts implies the authority to solicit gifts. 25 
Op. OLC 55, Jan. 19, 2001. VA believes that section 2407 similarly 
contains an implied statutory authority to solicit gifts and donations 
for the benefit of the national cemeteries and that, by prohibiting use 
of that implied statutory authority, the provision in Sec.  38.603(b), 
in addition to not being legally necessary, may impede VA's ability to 
fully realize the authority provided to VA in section 2407. The ability 
of VA to operate other gift and donation programs under the authorities 
mentioned above, effectively and within legal parameters, in the 
absence of a prohibition on the ability of principals to solicit gifts 
and donations, indicates that a prohibition like that contained in 
Sec.  38.603(b) is unnecessary.
    Gifts and donations received by the national cemeteries under the 
authority of section 2407 have taken many forms, including monetary 
donations, donations of services and property (such as landscaping 
services or trees), and memorials and other commemorative works. 
Consistent with the plain language of the terms ``gifts'' and 
``donations,'' we clarify in the regulation that gifts and donations 
would include monetary donations, in-kind goods and services, and 
personal property. These gifts and donations from generous persons and 
organizations enhance the experience of visitors to the national 
cemeteries. The prohibition contained in Sec.  38.603(b) impedes VA's 
ability to proactively advise donors or potential donors of gift and 
donation opportunities that could be beneficial to the national 
cemeteries. Although Sec.  38.603(b) includes a provision that allows 
VA employees to discuss the ``appropriateness'' of a proposed gift, 
that discussion can only happen if a donor first approaches VA about a 
potential gift or donation. VA cannot proactively advise a donor that a 
particular gift or donation would be beneficial to the national 
cemeteries in general or any one national cemetery in particular. 
Easing the prohibition benefits not only the national cemeteries by 
ensuring that gifts and donations are more likely to be beneficial, but 
also is beneficial to donors who may not know of opportunities to 
provide beneficial gifts and donations to the national cemeteries. 
Therefore, we are amending Sec.  38.603(b) to provide that the USMA, or 
his designee, may solicit gifts and donations, which include monetary 
donations, in-kind goods and services, and personal property, or 
authorize the use of their names, the name of the Secretary, or the 
name of VA by an individual or organization in any campaign or drive 
for money or articles to VA for the purpose of beautifying, or for the 
benefit of, one or more national cemeteries.
    While VA is easing the prohibition on solicitation of gifts and 
donations, the intent is not to remove the restriction in its entirety. 
VA maintains 133 national cemeteries, one national Veterans' burial 
ground, and 33 soldiers' lots and monument sites in 40 states and 
Puerto Rico, as national shrines, that is, places of honor and memory 
where visitors can sense the serenity, historic sacrifice, and nobility 
of purpose of those who have served in the military. The USMA is 
responsible for the operation of the national cemeteries and is in the 
best position to determine the appropriateness of any campaign to 
solicit gifts and donations. Although VA is replacing the existing 
provision at Sec.  38.603(b) with revised text that allows the USMA or 
designee to solicit gifts and donations to VA for the purpose of 
beautifying, or for the benefit of, one or more national cemeteries, 
this rulemaking does not amend any other regulation governing 
solicitation or acceptance of gifts and donations under any other 
authority available to VA.
    We are revising the authority citation for part 38 to include the 
statutory authority 38 U.S.C. 2407. We also add this statutory 
authority at the end of Sec.  38.603.

Administrative Procedure Act

    VA believes this rule is non-controversial and anticipates that it 
will not result in any significant adverse comments, and, therefore, is 
issuing this regulatory amendment as a direct final rule. VA is only 
minimizing the restriction to commensurate with statutory authority and 
legal guidance from VA's OGC and an opinion from DOJ's OLC. VA is 
publishing a separate, substantially identical proposed rule in the 
Federal Register, RIN 2900-AP74, that will serve as a proposal for the 
provisions in this direct final rule in the event that any significant 
adverse comment is received by VA.
    For purposes of the direct final rulemaking, a significant adverse 
comment is one that explains why the rule would be inappropriate, 
including challenges to the rule's underlying

[[Page 44794]]

premise or approach, or why it would be ineffective or unacceptable 
without change. If VA receives a significant adverse comment, VA will 
publish a notice of receipt of a significant adverse comment in the 
Federal Register and withdraw the direct final rule. In determining 
whether an adverse comment is significant and warrants withdrawing a 
direct final rule, we will consider whether the comment raises an issue 
serious enough to warrant a substantive response in a notice-and-
comment process in accordance with section 553 of the Administrative 
Procedure Act (5 U.S.C. 553). Comments that are frivolous, 
insubstantial, or outside the scope of the rule will not be considered 
adverse under this procedure. For example, a comment recommending an 
additional change to the rule will not be considered a significant 
adverse comment unless the comment states why the rule would be 
ineffective or unacceptable without the additional change.
    Under direct final rule procedures, if no significant adverse 
comment is received within the comment period, this rule will become 
effective on the date specified above. After the close of the comment 
period, VA will publish a document in the Federal Register indicating 
that VA received no significant adverse comment and restating the date 
on which the final rule will become effective. VA will also publish a 
notice in the Federal Register withdrawing the proposed rule, RIN 2900-
AP74.
    In the event that VA withdraws the direct final rule because of 
receipt of any significant adverse comment, VA will proceed with the 
rulemaking by addressing the comments received and publishing a final 
rule. The comment period for the proposed rule runs concurrently with 
that of the direct final rule. VA will treat any comments received in 
response to the direct final rule as comments regarding the proposed 
rule as well. VA will consider such comments in developing a subsequent 
final rule. Likewise, VA will consider any significant adverse comment 
received in response to the proposed rule as a comment regarding the 
direct final rule as well.
    VA has determined that it is not necessary to provide a 60-day 
comment period for this rulemaking because the rulemaking does not 
establish duties or benefits affecting members of the public, but 
merely makes a minor modification concerning the authority of certain 
officials or employees to solicit gifts and donations for the benefit 
of VA national cemeteries. VA has instead specified that comments must 
be received within 30 days after date of publication in the Federal 
Register.

Effect of Rulemaking

    The Code of Federal Regulations, revised by this rulemaking, 
represents the exclusive legal authority on this subject. No contrary 
rules or procedures are authorized. All VA guidance will conform with 
this rulemaking if possible or, if not possible, such guidance is 
superseded by this rulemaking.

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 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, 5 U.S.C. 601-
612. This final rule will directly affect only individuals and will 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 final rule will 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 program numbers 
and titles affected by this document.

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 June 30, 2016, for publication.

    Dated: June 30, 2016.
Jeffrey Martin,
Office Program Manager, Office of Regulation Policy & Management, 
Office of the Secretary, Department of Veterans Affairs.

List of Subjects in 38 CFR Part 38

    Administrative practice and procedure, Cemeteries, Claims, Crime, 
Veterans.


[[Page 44795]]


    For the reasons set out in the preamble, VA amends 38 CFR part 38 
as follows:

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

0
1. Revise the authority citation for part 38 to read as follows:

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


0
2. In Sec.  38.603, revise paragraph (b) and add an authority citation 
to read as follows:


Sec.  38.603  Gifts and donations.

* * * * *
    (b) The Under Secretary of Memorial Affairs, or his designee, may 
solicit gifts and donations, which include monetary donations, in-kind 
goods and services, and personal property, or authorize the use of 
their names, the name of the Secretary, or the name of the Department 
of Veterans Affairs by an individual or organization in any campaign or 
drive for donation of money or articles to the Department of Veterans 
Affairs for the purpose of beautifying, or for the benefit of, one or 
more national cemeteries.

    Authority:  38 U.S.C. 2407.

[FR Doc. 2016-16234 Filed 7-8-16; 8:45 am]
 BILLING CODE 8320-01-P



                                           44792               Federal Register / Vol. 81, No. 132 / Monday, July 11, 2016 / Rules and Regulations

                                           Principal Transaction, the Financial                        (iii) Discloses the circumstances                  DEPARTMENT OF VETERANS
                                           Institution and the Adviser(s) provide                   under which the Adviser and Financial                 AFFAIRS
                                           investment advice that is, at the time of                Institution may engage in Principal
                                           the recommendation, in the Best Interest                 Transactions and Riskless Principal                   38 CFR Part 38
                                           of the Retirement Investor. As further                   Transactions with the Plan, participant               RIN 2900–AP75
                                           defined in Section VI(c), such advice                    or beneficiary account, or IRA, and
                                           reflects the care, skill, prudence, and                  identifies and discloses the Material                 Authority To Solicit Gifts and
                                           diligence under the circumstances then                   Conflicts of Interest associated with                 Donations
                                           prevailing that a prudent person acting                  Principal Transactions and Riskless
                                           in a like capacity and familiar with such                Principal Transactions.                               AGENCY:   Department of Veterans Affairs.
                                           matters would use in the conduct of an                      (iv) The disclosure may be provided                ACTION:   Direct final rule.
                                           enterprise of a like character and with                  in person, electronically or by mail. It              SUMMARY:    The Department of Veterans
                                           like aims, based on the investment                       does not have to be repeated for any                  Affairs (VA) amends its National
                                           objectives, risk tolerance, financial                    subsequent recommendations during                     Cemeteries regulation on the prohibition
                                           circumstances, and needs of the                          the Transition Period.                                of officials and employees of VA from
                                           Retirement Investor, without regard to                      (v) The Financial Institution will not
                                                                                                                                                          soliciting contributions from the public
                                           the financial or other interests of the                  fail to satisfy this Section VII(d)(2)
                                                                                                                                                          or authorizing the use of their names,
                                           Adviser, Financial Institution or any                    solely because it, acting in good faith
                                                                                                                                                          name of the Secretary, or the name of
                                           Affiliate or other party;                                and with reasonable diligence, makes an               VA for the purpose of making a gift or
                                              (ii) The Adviser and Financial                        error or omission in disclosing the                   donation to VA. The amended
                                           Institution will seek to obtain the best                 required information, provided the                    regulation gives the Under Secretary of
                                           execution reasonably available under                     Financial Institution discloses the                   Memorial Affairs (USMA), or his
                                           the circumstances with respect to the                    correct information as soon as                        designee, authority to solicit gifts and
                                           Principal Transaction or Riskless                        practicable, but not later than 30 days               donations, which include monetary
                                           Principal Transaction. Financial                         after the date on which it discovers or               donations, in-kind goods and services,
                                           Institutions that are FINRA members                      reasonably should have discovered the                 and personal property, or authorize the
                                           shall satisfy this requirement if they                   error or omission. To the extent                      use of their names, the name of the
                                           comply with the terms of FINRA rules                     compliance with this Section VII(d)(2)                Secretary, or the name of VA by an
                                           2121 (Fair Prices and Commissions) and                   requires Advisers and Financial                       individual or organization in any
                                           5310 (Best Execution and                                 Institutions to obtain information from               campaign or drive for donation of
                                           Interpositioning), or any successor rules                entities that are not closely affiliated              money or articles to VA for the purpose
                                           in effect at the time of the transaction,                with them, they may rely in good faith                of beautifying, or for the benefit of, one
                                           as interpreted by FINRA, with respect to                 on information and assurances from the                or more national cemeteries.
                                           the Principal Transaction or Riskless                    other entities, as long as they do not                DATES: This direct final rule is effective
                                           Principal Transaction; and                               know, or unless they should have                      on September 9, 2016, without further
                                              (iii) Statements by the Financial                     known, that the materials are                         notice, unless VA receives a significant
                                           Institution and its Advisers to the                      incomplete or inaccurate. This good                   adverse comment by August 10, 2016. If
                                           Retirement Investor about the Principal                  faith reliance applies unless the entity              we receive a significant adverse
                                           Transaction or Riskless Principal                        providing the information to the                      comment by August 10, 2016, we will
                                           Transaction, fees and compensation                       Adviser and Financial Institution is (1)              publish a document in the Federal
                                           related to the Principal Transaction or                  a person directly or indirectly through               Register withdrawing this rule before
                                           Riskless Principal Transaction, Material                 one or more intermediaries, controlling,              the effective date. See section on
                                           Conflicts of Interest, and any other                     controlled by, or under common control                Administrative Procedure Act below.
                                           matters relevant to a Retirement                         with the Adviser or Financial
                                                                                                                                                          ADDRESSES: Written comments may be
                                           Investor’s decision to engage in the                     Institution; or (2) any officer, director,            submitted by email through http://
                                           Principal Transaction or Riskless                        employee, agent, registered                           www.regulations.gov; by mail or hand-
                                           Principal Transaction, are not materially                representative, relative (as defined in               delivery to Director, Regulation Policy
                                           misleading at the time they are made.                    ERISA section 3(15)), member of family                and Management (02REG), Department
                                              (2) Disclosures. The Financial                        (as defined in Code section 4975(e)(6))               of Veterans Affairs, 810 Vermont
                                           Institution provides to the Retirement                   of, or partner in, the Adviser or                     Avenue NW., Room 1068, Washington,
                                           Investor, prior to or at the same time as                Financial Institution.                                DC 20420; or by fax to (202) 273–9026.
                                           the execution of the recommended                            (3) The Financial Institution must                 (This is not a toll-free number.)
                                           Principal Transaction or Riskless                        designate a person or persons, identified             Comments should indicate that they are
                                           Principal Transaction, a single written                  by name, title or function, responsible               submitted in response to ‘‘RIN 2900–
                                           disclosure, which may cover multiple                     for addressing Material Conflicts of                  AP75—Authority to Solicit Gifts and
                                           transactions or all transactions                         Interest and monitoring Advisers’                     Donations.’’ Copies of comments
                                           occurring within the Transition Period,                  adherence to the Impartial Conduct                    received will be available for public
                                           that clearly and prominently:                            Standards.                                            inspection in the Office of Regulation
                                                                                                       (4) The Financial Institution complies
                                              (i) Affirmatively states that the                                                                           Policy and Management, Room 1068,
                                                                                                    with the recordkeeping requirements of
                                           Financial Institution and the Adviser(s)                                                                       between the hours of 8:00 a.m. and 4:30
                                                                                                    Section V(a) and (b).
                                           act as fiduciaries under ERISA or the                                                                          p.m., Monday through Friday (except
                                           Code, or both, with respect to the                         Signed at Washington, DC.                           holidays). Please call (202) 461–4902 for
ehiers on DSK5VPTVN1PROD with RULES




                                           recommendation;                                          Phyllis C. Borzi,                                     an appointment. (This is not a toll-free
                                              (ii) Sets forth the standards in                      Assistant Secretary, Employee Benefits                number.) In addition, during the
                                           paragraph (d)(1) of this section and                     Security Administration, U.S. Department of           comment period, comments may be
                                           affirmatively states that it and the                     Labor.                                                viewed online through the Federal
                                           Adviser(s) adhered to such standards in                  [FR Doc. 2016–16354 Filed 7–7–16; 4:15 pm]            Docket Management System (FDMS) at
                                           recommending the transaction; and                        BILLING CODE 4510–29–P                                http://www.regulations.gov.


                                      VerDate Sep<11>2014   13:54 Jul 08, 2016   Jkt 238001   PO 00000   Frm 00034   Fmt 4700   Sfmt 4700   E:\FR\FM\11JYR1.SGM   11JYR1


                                                               Federal Register / Vol. 81, No. 132 / Monday, July 11, 2016 / Rules and Regulations                                           44793

                                           FOR FURTHER INFORMATION CONTACT:                         8301 included the implied statutory                   gifts and donations to the national
                                           Thomas Howard, Chief of Staff, National                  authority to solicit those gifts.                     cemeteries. Therefore, we are amending
                                           Cemetery Administration (NCA),                           VAOPGCPREC 2–2015, Mar. 20, 2015.                     § 38.603(b) to provide that the USMA, or
                                           Department of Veterans Affairs, (40A),                   Outside VA, a 2001 opinion from the                   his designee, may solicit gifts and
                                           810 Vermont Avenue NW., Washington,                      Office of Legal Counsel (OLC) of the                  donations, which include monetary
                                           DC 20420, (202) 461–6215. (This is not                   Department of Justice found that the                  donations, in-kind goods and services,
                                           a toll-free number.)                                     broad statutory authority granted by                  and personal property, or authorize the
                                           SUPPLEMENTARY INFORMATION: Title 38                      Congress in section 403(b)(1) of the                  use of their names, the name of the
                                           U.S.C. 2407 authorizes the Secretary of                  Office of Government Ethics                           Secretary, or the name of VA by an
                                           VA to ‘‘accept gifts, devises, or bequests               Authorization Act of 1996 to accept gifts             individual or organization in any
                                           from legitimate societies and                            implies the authority to solicit gifts. 25            campaign or drive for money or articles
                                           organizations or reputable individuals,                  Op. OLC 55, Jan. 19, 2001. VA believes                to VA for the purpose of beautifying, or
                                           made in any manner, which are made                       that section 2407 similarly contains an               for the benefit of, one or more national
                                           for the purpose of beautifying national                  implied statutory authority to solicit                cemeteries.
                                           cemeteries, or are determined to be                      gifts and donations for the benefit of the               While VA is easing the prohibition on
                                           beneficial to such cemetery.’’ In 1978,                  national cemeteries and that, by                      solicitation of gifts and donations, the
                                           VA published implementing regulations                    prohibiting use of that implied statutory             intent is not to remove the restriction in
                                                                                                    authority, the provision in § 38.603(b),              its entirety. VA maintains 133 national
                                           for this authority at 38 CFR 1.603 (now
                                                                                                    in addition to not being legally                      cemeteries, one national Veterans’
                                           redesignated as 38 CFR 38.603). 43 FR
                                                                                                    necessary, may impede VA’s ability to                 burial ground, and 33 soldiers’ lots and
                                           26572 (June 21, 1978). Included in this
                                                                                                    fully realize the authority provided to               monument sites in 40 states and Puerto
                                           regulation, at § 38.603(b), is a
                                                                                                    VA in section 2407. The ability of VA                 Rico, as national shrines, that is, places
                                           prohibition on the solicitation of
                                                                                                    to operate other gift and donation                    of honor and memory where visitors can
                                           contributions from the public by any VA
                                                                                                    programs under the authorities                        sense the serenity, historic sacrifice, and
                                           official or employee. Unfortunately, as
                                                                                                    mentioned above, effectively and within               nobility of purpose of those who have
                                           was common at the time, the proposed
                                                                                                    legal parameters, in the absence of a                 served in the military. The USMA is
                                           and final rulemaking documents
                                                                                                    prohibition on the ability of principals              responsible for the operation of the
                                           provide less information regarding the                                                                         national cemeteries and is in the best
                                           rationale for the regulations than is                    to solicit gifts and donations, indicates
                                                                                                    that a prohibition like that contained in             position to determine the
                                           commonly provided today, so the full                                                                           appropriateness of any campaign to
                                           rationale for this regulation, including                 § 38.603(b) is unnecessary.
                                                                                                                                                          solicit gifts and donations. Although VA
                                           the reason for the prohibition on                           Gifts and donations received by the                is replacing the existing provision at
                                           solicitations, is no longer available. The               national cemeteries under the authority               § 38.603(b) with revised text that allows
                                           prohibition is not contained in the                      of section 2407 have taken many forms,                the USMA or designee to solicit gifts
                                           statutory authority at section 2407, nor                 including monetary donations,                         and donations to VA for the purpose of
                                           does the plain language of the statute                   donations of services and property (such              beautifying, or for the benefit of, one or
                                           indicate a rationale for the prohibition.                as landscaping services or trees), and                more national cemeteries, this
                                           VA is easing this restriction because it                 memorials and other commemorative                     rulemaking does not amend any other
                                           negatively impacts VA’s ability to fully                 works. Consistent with the plain                      regulation governing solicitation or
                                           realize the potential of its authority to                language of the terms ‘‘gifts’’ and                   acceptance of gifts and donations under
                                           accept gifts and donations for the                       ‘‘donations,’’ we clarify in the regulation           any other authority available to VA.
                                           benefit of the national cemeteries.                      that gifts and donations would include                   We are revising the authority citation
                                              The gift and donation acceptance                      monetary donations, in-kind goods and                 for part 38 to include the statutory
                                           authority at section 2407 is just one of                 services, and personal property. These                authority 38 U.S.C. 2407. We also add
                                           several authorities under which VA may                   gifts and donations from generous                     this statutory authority at the end of
                                           accept gifts or donations that advance                   persons and organizations enhance the                 § 38.603.
                                           the mission or enhance the services that                 experience of visitors to the national
                                           VA provides. These authorities include,                  cemeteries. The prohibition contained                 Administrative Procedure Act
                                           among others, 38 U.S.C. 521 (acceptance                  in § 38.603(b) impedes VA’s ability to                   VA believes this rule is non-
                                           of funds to support recreational                         proactively advise donors or potential                controversial and anticipates that it will
                                           activities furthering the rehabilitation of              donors of gift and donation                           not result in any significant adverse
                                           disabled veterans); 2406 (gifts of land                  opportunities that could be beneficial to             comments, and, therefore, is issuing this
                                           for national cemeteries); 8103 and 8104                  the national cemeteries. Although                     regulatory amendment as a direct final
                                           (acceptance of land, interests in land, or               § 38.603(b) includes a provision that                 rule. VA is only minimizing the
                                           facilities for use as medical facilities);               allows VA employees to discuss the                    restriction to commensurate with
                                           and 8301 (acceptance of gifts for use in                 ‘‘appropriateness’’ of a proposed gift,               statutory authority and legal guidance
                                           carrying out all laws administered by                    that discussion can only happen if a                  from VA’s OGC and an opinion from
                                           VA). None of these statutory authorities                 donor first approaches VA about a                     DOJ’s OLC. VA is publishing a separate,
                                           nor any implementing regulations for                     potential gift or donation. VA cannot                 substantially identical proposed rule in
                                           any of the authorities, includes a                       proactively advise a donor that a                     the Federal Register, RIN 2900–AP74,
                                           provision like that contained in                         particular gift or donation would be                  that will serve as a proposal for the
                                           § 38.603(b), prohibiting the solicitation                beneficial to the national cemeteries in              provisions in this direct final rule in the
                                           of contributions.                                        general or any one national cemetery in               event that any significant adverse
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                                              Legal guidance indicates that such a                  particular. Easing the prohibition                    comment is received by VA.
                                           prohibition is not required by law. In                   benefits not only the national cemeteries                For purposes of the direct final
                                           2015, VA’s Office of General Counsel                     by ensuring that gifts and donations are              rulemaking, a significant adverse
                                           (OGC) issued a precedent opinion                         more likely to be beneficial, but also is             comment is one that explains why the
                                           concluding that VA’s express statutory                   beneficial to donors who may not know                 rule would be inappropriate, including
                                           authority to accept gifts under section                  of opportunities to provide beneficial                challenges to the rule’s underlying


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                                           44794               Federal Register / Vol. 81, No. 132 / Monday, July 11, 2016 / Rules and Regulations

                                           premise or approach, or why it would                     30 days after date of publication in the              Materially alter the budgetary impact of
                                           be ineffective or unacceptable without                   Federal Register.                                     entitlements, grants, user fees, or loan
                                           change. If VA receives a significant                                                                           programs or the rights and obligations of
                                                                                                    Effect of Rulemaking
                                           adverse comment, VA will publish a                                                                             recipients thereof; or (4) Raise novel
                                           notice of receipt of a significant adverse                 The Code of Federal Regulations,                    legal or policy issues arising out of legal
                                           comment in the Federal Register and                      revised by this rulemaking, represents                mandates, the President’s priorities, or
                                           withdraw the direct final rule. In                       the exclusive legal authority on this                 the principles set forth in this Executive
                                           determining whether an adverse                           subject. No contrary rules or procedures              Order.’’
                                           comment is significant and warrants                      are authorized. All VA guidance will
                                                                                                                                                             The economic, interagency,
                                           withdrawing a direct final rule, we will                 conform with this rulemaking if
                                                                                                                                                          budgetary, legal, and policy
                                           consider whether the comment raises an                   possible or, if not possible, such
                                                                                                                                                          implications of this regulatory action
                                           issue serious enough to warrant a                        guidance is superseded by this
                                                                                                                                                          have been examined, and it has been
                                           substantive response in a notice-and-                    rulemaking.
                                                                                                                                                          determined not to be a significant
                                           comment process in accordance with                       Paperwork Reduction Act                               regulatory action under Executive Order
                                           section 553 of the Administrative                                                                              12866. VA’s impact analysis can be
                                           Procedure Act (5 U.S.C. 553). Comments                     This final rule contains no provisions
                                                                                                    constituting a collection of information              found as a supporting document at
                                           that are frivolous, insubstantial, or                                                                          http://www.regulations.gov, usually
                                           outside the scope of the rule will not be                under the Paperwork Reduction Act of
                                                                                                    1995 (44 U.S.C. 3501–3521).                           within 48 hours after the rulemaking
                                           considered adverse under this                                                                                  document is published. Additionally, a
                                           procedure. For example, a comment                        Regulatory Flexibility Act                            copy of the rulemaking and its impact
                                           recommending an additional change to
                                                                                                      The Secretary hereby certifies that                 analysis are available on VA’s Web site
                                           the rule will not be considered a
                                                                                                    this final rule will not have a significant           at http://www.va.gov/orpm, by
                                           significant adverse comment unless the
                                                                                                    economic impact on a substantial                      following the link for ‘‘VA Regulations
                                           comment states why the rule would be
                                                                                                    number of small entities as they are                  Published From FY 2004 Through Fiscal
                                           ineffective or unacceptable without the
                                                                                                    defined in the Regulatory Flexibility                 Year to Date.’’
                                           additional change.
                                              Under direct final rule procedures, if                Act, 5 U.S.C. 601–612. This final rule                Unfunded Mandates
                                           no significant adverse comment is                        will directly affect only individuals and
                                           received within the comment period,                      will not directly affect small entities.                 The Unfunded Mandates Reform Act
                                           this rule will become effective on the                   Therefore, pursuant to 5 U.S.C. 605(b),               of 1995 requires, at 2 U.S.C. 1532, that
                                           date specified above. After the close of                 this rulemaking is exempt from the                    agencies prepare an assessment of
                                           the comment period, VA will publish a                    initial and final regulatory flexibility              anticipated costs and benefits before
                                           document in the Federal Register                         analysis requirements of 5 U.S.C. 603                 issuing any rule that may result in the
                                           indicating that VA received no                           and 604.                                              expenditure by State, local, and tribal
                                           significant adverse comment and                                                                                governments, in the aggregate, or by the
                                                                                                    Executive Orders 12866 and 13563
                                           restating the date on which the final                                                                          private sector, of $100 million or more
                                           rule will become effective. VA will also                    Executive Orders 12866 and 13563                   (adjusted annually for inflation) in any
                                           publish a notice in the Federal Register                 direct agencies to assess the costs and               one year. This final rule will have no
                                           withdrawing the proposed rule, RIN                       benefits of available regulatory                      such effect on State, local, and tribal
                                           2900–AP74.                                               alternatives and, when regulation is                  governments, or on the private sector.
                                              In the event that VA withdraws the                    necessary, to select regulatory
                                                                                                    approaches that maximize net benefits                 Catalog of Federal Domestic Assistance
                                           direct final rule because of receipt of
                                           any significant adverse comment, VA                      (including potential economic,                          There are no Catalog of Federal
                                           will proceed with the rulemaking by                      environmental, public health and safety               Domestic Assistance program numbers
                                           addressing the comments received and                     effects, and other advantages;                        and titles affected by this document.
                                           publishing a final rule. The comment                     distributive impacts; and equity).
                                           period for the proposed rule runs                        Executive Order 13563 (Improving                      Signing Authority
                                           concurrently with that of the direct final               Regulation and Regulatory Review)
                                                                                                                                                            The Secretary of Veterans Affairs, or
                                           rule. VA will treat any comments                         emphasizes the importance of
                                                                                                                                                          designee, approved this document and
                                           received in response to the direct final                 quantifying both costs and benefits,
                                                                                                                                                          authorized the undersigned to sign and
                                           rule as comments regarding the                           reducing costs, harmonizing rules, and
                                                                                                                                                          submit the document to the Office of the
                                           proposed rule as well. VA will consider                  promoting flexibility. Executive Order
                                                                                                                                                          Federal Register for publication
                                           such comments in developing a                            12866 (Regulatory Planning and
                                                                                                                                                          electronically as an official document of
                                           subsequent final rule. Likewise, VA will                 Review) defines a ‘‘significant
                                                                                                                                                          the Department of Veterans Affairs. Gina
                                           consider any significant adverse                         regulatory action,’’ requiring review by
                                                                                                                                                          S. Farrisee, Deputy Chief of Staff,
                                           comment received in response to the                      the Office of Management and Budget
                                                                                                                                                          Department of Veterans Affairs,
                                           proposed rule as a comment regarding                     (OMB), unless OMB waives such
                                                                                                                                                          approved this document on June 30,
                                           the direct final rule as well.                           review, as ‘‘any regulatory action that is
                                                                                                                                                          2016, for publication.
                                              VA has determined that it is not                      likely to result in a rule that may: (1)
                                           necessary to provide a 60-day comment                    Have an annual effect on the economy                    Dated: June 30, 2016.
                                           period for this rulemaking because the                   of $100 million or more or adversely                  Jeffrey Martin,
                                           rulemaking does not establish duties or                  affect in a material way the economy, a               Office Program Manager, Office of Regulation
                                           benefits affecting members of the public,                sector of the economy, productivity,                  Policy & Management, Office of the Secretary,
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                                           but merely makes a minor modification                    competition, jobs, the environment,                   Department of Veterans Affairs.
                                           concerning the authority of certain                      public health or safety, or State, local,             List of Subjects in 38 CFR Part 38
                                           officials or employees to solicit gifts and              or tribal governments or communities;
                                           donations for the benefit of VA national                 (2) Create a serious inconsistency or                   Administrative practice and
                                           cemeteries. VA has instead specified                     otherwise interfere with an action taken              procedure, Cemeteries, Claims, Crime,
                                           that comments must be received within                    or planned by another agency; (3)                     Veterans.


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                                                               Federal Register / Vol. 81, No. 132 / Monday, July 11, 2016 / Rules and Regulations                                                44795

                                             For the reasons set out in the                         No. EPA–R07–OAR–2016–0045. All                        rulemaking into the SIP). EPA must
                                           preamble, VA amends 38 CFR part 38 as                    documents in the docket are listed on                 provide public notice and seek
                                           follows:                                                 the http://www.regulations.gov Web                    additional public comment regarding
                                                                                                    site. Although listed in the index, some              the proposed Federal action on the
                                           PART 38—NATIONAL CEMETERIES                              information is not publicly available,                state’s submission.
                                           OF THE DEPARTMENT OF VETERANS                            i.e., CBI or other information whose                     EPA received the request from the
                                           AFFAIRS                                                  disclosure is restricted by statute.                  state to adopt revisions to the local air
                                                                                                    Certain other material, such as                       agency rules into the SIP on December
                                           ■ 1. Revise the authority citation for part
                                                                                                    copyrighted material, is not placed on                8, 2015. The revisions were adopted by
                                           38 to read as follows:
                                                                                                    the Internet and will be publicly                     the local agency on October 6, 2015, and
                                             Authority: 38 U.S.C. 107, 501, 512, 2306,              available only in hard copy form.                     became effective on October 12, 2015.
                                           2402, 2403, 2404, 2407, 2408, 2411, 7105.                Publicly available docket materials are               EPA is approving the requested
                                           ■ 2. In § 38.603, revise paragraph (b)                   available electronically at http://                   revisions to the Iowa SIP relating to the
                                           and add an authority citation to read as                 www.regulations.gov and at EPA Region                 following:
                                           follows:                                                 7, 11201 Renner Boulevard, Lenexa,                       • Article I. In General, Section 5–1.
                                                                                                    Kansas 66219. Please schedule an                      Purpose and Ambient Air Quality
                                           § 38.603    Gifts and donations.
                                                                                                    appointment during normal business                    Standards;
                                           *     *     *     *     *                                hours with the contact listed in the FOR                 • Article I. In General, Section 5–2.
                                             (b) The Under Secretary of Memorial                    FURTHER INFORMATION CONTACT section.                  Definitions;
                                           Affairs, or his designee, may solicit gifts              For additional information and general                   • Article X. Permits, Division 1.
                                           and donations, which include monetary                    guidance, please visit http://                        Construction Permits, Section 5–33.
                                           donations, in-kind goods and services,                   www2.epa.gov/dockets/commenting-                      Exemptions from Permit Requirements;
                                           and personal property, or authorize the                  epa-dockets.                                             • Article X. Permits, Division 2.
                                           use of their names, the name of the                                                                            Operating Permits, Section 5–39.
                                           Secretary, or the name of the                            FOR FURTHER INFORMATION CONTACT:
                                                                                                    Heather Hamilton, Environmental                       Exemptions from Permit Requirement.
                                           Department of Veterans Affairs by an                                                                              EPA’s action does not cover revisions
                                           individual or organization in any                        Protection Agency, Air Planning and
                                                                                                    Development Branch, 11201 Renner                      to:
                                           campaign or drive for donation of                                                                                 • Article VI. Emission of Air
                                           money or articles to the Department of                   Boulevard, Lenexa, Kansas 66219 at
                                                                                                    (913) 551–7039, or by email at                        Contaminants from Industrial Processes,
                                           Veterans Affairs for the purpose of                                                                            New Source Performance Standards,
                                           beautifying, or for the benefit of, one or               Hamilton.heather@epa.gov.
                                                                                                                                                          Section 5–16(n),
                                           more national cemeteries.                                SUPPLEMENTARY INFORMATION:
                                                                                                                                                             • Article VIII. National Emission
                                               Authority: 38 U.S.C. 2407.                           Throughout this document ‘‘we,’’ ‘‘us,’’              Standards for Hazardous Air Pollutants
                                           [FR Doc. 2016–16234 Filed 7–8–16; 8:45 am]               or ‘‘our’’ refer to EPA. This section                 for Source Categories, Section 5–16(p),
                                           BILLING CODE 8320–01–P
                                                                                                    provides additional information by                    and,
                                                                                                    addressing the following:                                • Article VIII. National Emission
                                                                                                    I. What is being addressed in this document?          Standards for Hazardous Air Pollutants
                                           ENVIRONMENTAL PROTECTION                                 II. Have the requirements for approval of a           for Source Categories, Section 5–20.
                                           AGENCY                                                         SIP revision been met?                             EPA is also approving the definition
                                                                                                    III. EPA’s Response to Comments                       of Maximum Achievable Control
                                           40 CFR Part 52                                           IV. What action is EPA taking?
                                                                                                                                                          Technology (MACT) that was
                                           [EPA–R07–OAR–2016–0045; FRL–9948–84–                     I. What is being addressed in this                    inadvertently omitted from the January
                                           Region 7]                                                document?                                             12, 2015, Federal Register notice that
                                                                                                       The State of Iowa requested EPA                    approved the September 2013 revisions
                                           Approval of Iowa’s Air Quality                           approval of revisions to the local                    to the Polk County Board of Health
                                           Implementation Plans; Polk County
                                                                                                    agency’s rules and regulations, Chapter               Rules and Regulations, Chapter V, Air
                                           Board of Health Rules and                                                                                      Pollution. 80 FR 1471. The definition of
                                                                                                    V, Air Pollution, as a revision to the
                                           Regulations, Chapter V, Revisions                                                                              MACT is not referenced elsewhere in
                                                                                                    State Implementation Plan (SIP). In
                                                                                                    order for the local program’s Air                     Polk County’s Federally approved
                                           AGENCY:  Environmental Protection
                                                                                                    Pollution rules to be incorporated into               rules.1
                                           Agency (EPA).
                                           ACTION: Final rule.                                      the Federally-enforceable SIP, on behalf              II. Have the requirements for approval
                                                                                                    of the local agency, the state must                   of a SIP revision been met?
                                           SUMMARY:   The Environmental Protection                  submit the formally adopted regulations
                                           Agency (EPA) is taking final action to                                                                            The state submission has met the
                                                                                                    and control strategies, which are
                                           approve a revision submitted by the                                                                            public notice requirements for SIP
                                                                                                    consistent with the state and Federal
                                           State of Iowa. The purpose of these                                                                            submissions in accordance with 40 CFR
                                                                                                    requirements, to EPA for inclusion in
                                           revisions is to update the Polk County                                                                         51.102. The submission also satisfied
                                                                                                    the SIP. The regulation adoption process
                                           Board of Health Rules and Regulations,                                                                         the completeness criteria of 40 CFR part
                                                                                                    generally includes public notice, a
                                           Chapter V, Air Pollution. This final                                                                           51, appendix V. In addition, as
                                                                                                    public comment period and a public
                                           action will reflect updates to the Iowa’s                                                                      explained above and in more detail in
                                                                                                    hearing, and formal adoption of the rule
                                           statewide rules previously approved by                                                                         the technical support document which
                                                                                                    by the state authorized rulemaking
                                           EPA and will ensure consistency                                                                                is part of this docket, the revision meets
                                                                                                    body. In this case, that rulemaking body
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                                           between applicable local agency rules                                                                          the substantive SIP requirements of the
                                                                                                    is the local agency. After the local
                                           and Federally-approved rules.                                                                                  CAA, including section 110 and
                                                                                                    agency formally adopts the rule, the
                                           DATES: This final rule is effective on
                                                                                                                                                          implementing regulations.
                                                                                                    local agency submits the rulemaking to
                                           August 10, 2016.                                         the state, and then the state submits the               1 Chapter V, Subchapter 5–20 National Emission
                                           ADDRESSES: EPA has established a                         rulemaking to EPA for consideration for               Standards for Hazardous Air Pollutants (NESHAP)
                                           docket for this action under Docket ID                   formal action (inclusion of the                       for Source Categories is not Federally approved.



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Document Created: 2016-07-09 00:21:27
Document Modified: 2016-07-09 00:21:27
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionDirect final rule.
DatesThis direct final rule is effective on September 9, 2016, without further notice, unless VA receives a significant adverse comment by August 10, 2016. If we receive a significant adverse comment by August 10, 2016, we will publish a document in the Federal Register withdrawing this rule before the effective date. See section on Administrative Procedure Act below.
ContactThomas Howard, Chief of Staff, National Cemetery Administration (NCA), Department of Veterans Affairs, (40A), 810 Vermont Avenue NW., Washington, DC 20420, (202) 461-6215. (This is not a toll-free number.)
FR Citation81 FR 44792 
RIN Number2900-AP75
CFR AssociatedAdministrative Practice and Procedure; Cemeteries; Claims; Crime and Veterans

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