Nonappropriated-Fund Claims Regulations, 53424-53426 [E7-18205]

Download as PDF 53424 Federal Register / Vol. 72, No. 181 / Wednesday, September 19, 2007 / Rules and Regulations of drawers and doors should be examined to determine whether the material is solid hardwood, fine quality veneer over hardwood, veneer over pressed wood, or other types of material. If the inspection is conducted at the claimant’s quarters, the general quality of property should be determined. Observations by repairmen and transportation inspectors are very valuable, but on occasion, claims examiners may request an inspection. Such inspections are necessary to reduce the number of reconsiderations and fraudulent claims and are invaluable in enabling claims personnel to understand the facts in many situations. I 10. Section 751.10 is amended by revising footnote \1\ to read as follows: § 751.10 * * Form of claim. * * * 1 Copies of these forms may be obtained by contacting the legal office or personal property office serving the installation where the claimant is stationed, or nearest to the point where the loss or damage occurred or on the Internet at http://www.jag.navy.mil. 11. Section 751.11 is revised to read as follows: I § 751.11 § 751.14 Investigation of claim. Upon receipt of a claim, the claim shall be stamped with the date and receiving office, forwarded to the cognizant PCU and be referred to a claims examiner. The examiner shall consider all information and evidence submitted with the claim and shall conduct such further investigation as may be necessary and appropriate. § 750.12 [Removed] 12. Section 750.12 is removed. I 13. Redesignate 750.13 as § 750.12 and revise newly redesignated § 751.12 to read as follows: I § 751.12 Payments. Payment of approved personnel claims will be made by the Navy or Marine Corps disbursing officer serving the adjudicating authority. Payments will be charged to funds made available to the adjudicating authority for this purpose. I 14. Section 751.14 is redesignated as § 751.13, and newly redesignated § 751.13 is revised to read as follows: yshivers on PROD1PC66 with RULES § 751.13 Partial payments. (a) Partial payments when hardship exists. When claimants suffer a significant, compensable loss of items that are needed for daily living, and can demonstrate a need for immediate funds to replace some of those items (e.g., food, clothes, baby items, etc.) the VerDate Aug<31>2005 15:05 Sep 18, 2007 Jkt 211001 adjudicating authority may authorize a partial payment of an appropriate amount, normally one-half of the estimated total payment. When a partial payment is made a copy of the payment voucher and all other information related to the partial payment shall be placed in the claim file. Action shall be taken to ensure the amount of the partial payment is deducted from the adjudicated value of the claim when final payment is made. (b) Marine hardship payments. The Marine claimant’s Transportation Management Office shall ensure compliance with all requirements of § 751.14(a), and may request authority for payment by message from the Commandant of the Marine Corps (MRP–2). (c) Effect of partial payment. Partial payments are to be subtracted from the adjudicated value of the claim before payment of the balance due. Overpayments are to be properly recouped. I 15. Section 751.15 is redesignated as § 751.14 and newly redesignated § 751.14 is revised to read as follows: Reconsideration and appeal. (a) General. When a claim is denied either in whole or in part, the claimant shall be given written notification of the initial adjudication and of the right to submit a written request for reconsideration to the original adjudicating authority within 6 months from the date the claimant receives notice of the initial adjudication of the claim. If a claimant requests reconsideration and if it is determined that the original action was erroneous or incorrect, it shall be modified and, when appropriate, a supplemental payment shall be approved. If full additional payment is not granted, the file shall be forwarded for reconsideration to the next higher adjudicating authority. For claims originally adjudicated by the Head, Personnel Claims Unit Norfolk, the files will be forwarded to the Judge Advocate General (Claims and Tort Litigation)(Code 15) for final action. The claimant shall be notified of this action either by letter or by copy of the letter forwarding the file to higher adjudicating authority. The forwarding letter shall include a synopsis of action taken on the file and reasons for the action or denial, as well as a recommendation of further action or denial. (b) Files forwarded to JAG. For files forwarded to JAG in accordance with § 751.14(a), the forwarding endorsement shall include the specific reasons why the requested relief was not granted and PO 00000 Frm 00014 Fmt 4700 Sfmt 4700 shall address the specific points or complaints raised by the claimant’s request for reconsideration. (c) Appeals procedure for claims submitted by Marine Corps personnel. Where any of the Marine Corps adjudication authorities listed in § 751.8(b) fail to grant the relief requested, or otherwise resolve the claim to the satisfaction of the claimant, the request for reconsideration shall be forwarded together with the entire original file and the adjudicating authority’s recommendation, to the Judge Advocate General. Subpart B—Demand on Carrier, Contractor, or Insurer [Removed and Reserved] 16. Remove and reserve subpart B consisting of §§ 751.21 through 751.35. I Dated: September 10, 2007. T.M. Cruz, Lieutenant, Judge Advocate General’s Corps, U.S. Navy, Federal Register Liaison Officer. [FR Doc. E7–18204 Filed 9–18–07; 8:45 am] BILLING CODE 3810–FF–P DEPARTMENT OF DEFENSE Department of the Navy 32 CFR Part 756 [USN–2006–0040] RIN 0703–AA80 Nonappropriated-Fund Claims Regulations Department of the Navy, DoD. Interim final rule. AGENCY: ACTION: SUMMARY: This rule reflects administrative changes to the regulations concerning the administrative processing of nonappropriated funds. The revisions will ensure the proper administrative processing and consideration of claims on behalf of and against the United States. This rule is being published by the Department of the Navy (DoN) for guidance and interest of the public in accordance with 5 U.S.C. 552(a)(1). DATES: This rule is effective September 19, 2007. Comments must be received by November 19, 2007. ADDRESSES: You may submit comments, identified by docket number and/or Regulatory Information Number (RIN) and title, by any of the following methods: Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments. E:\FR\FM\19SER1.SGM 19SER1 yshivers on PROD1PC66 with RULES Federal Register / Vol. 72, No. 181 / Wednesday, September 19, 2007 / Rules and Regulations Mail: Federal Docket Management System Office, 1160 Defense Pentagon, Washington, DC 20301–1160. Instructions: All submissions received must include the agency name and docket number or RIN for this Federal Register document. The general policy for comments and other submissions from members of the public is to make these submissions available for public viewing on the Internet at http:// regulations.gov as they are received without change, including any personal identifiers or contact information. FOR FURTHER INFORMATION CONTACT: Mr. Dan Fields, Head, Tort Claims Branch, Claims and Tort Litigation Division (Code 15), Office of the Judge Advocate General, 1322 Patterson Avenue, SE., Washington Navy Yard, DC 20374, telephone 202–685–4600. SUPPLEMENTARY INFORMATION: Executive Order 12866, ‘‘Regulatory Planning and Review.’’ It has been determined that the changes to 32 CFR part 756 are not considered a ‘‘significant regulatory action.’’ The rule does not: (1) Have an annual affect on the economy of $100 million or more or adversely affect in a material way the economy, a sector in 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 the 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. Unfunded Mandates Reform Act (Sec. 202, Pub. L. 104–4). It has been certified that 32 CFR part 756 does not contain Federal Mandates that result in expenditures by State, local and tribal governments, in aggregate, or by the private sector, of $100 million or more in any one year. Public Law 96–354, ‘‘Regulatory Flexibility Act’’ (5 U.S.C. 601). It has been determined that this rule is not subject to the Regulatory Flexibility Act (5 U.S.C. 601) because it would not, if promulgated, have a significant economic impact on a substantial number of small entities. This rule implements the processing of the proper administrative processing and consideration of claims on behalf of and against the United States, and does not economically impact the Federal government’s relations with the private sector. VerDate Aug<31>2005 15:05 Sep 18, 2007 Jkt 211001 Public Law 96–511, ‘‘Paperwork Reduction Act’’ (44 U.S.C. Chapter 35). This rule does not impose collection of information requirements for purposes of the Paperwork Reduction Act (44 U.S.C. Chapter 35, 5 CFR part 1320). Executive Order 13132, ‘‘Federalism’’. It has been certified that 32 CFR part 756 does not have federalism implications as set forth in Executive Order 13132. This rule does not have substantial direct effects on: (1) The States; (2) The relationship between the National Government and the States; or (3) The distribution of power and responsibilities among the various levels of Government. List of Subjects in 32 CFR Part 756 Claims. Accordingly, 32 CFR part 756 is amended to read as follows: I PART 756—PROCEDURES FOR PROCESSING CLAIMS INVOLVING NON-APPROPRIATED FUND ACTIVITIES AND THEIR EMPLOYEES 1. The authority citation for part 756 is revised to read as follows: I Authority: 5 U.S.C. 301, 10 U.S.C. 5013 and 5148. 2. The heading for part 756 is revised to read as set forth above. I 3. Section 756.1 is revised to read as follows: I § 756.1 Scope. This part explains how to settle claims for and against the United States for property damage, personal injury, or death arising out of the operation of non-appropriated fund activities (NAFI).1 I 4. Section 756.2 is amended by revising paragraph (c) to read as follows: 53425 Unit Norfolk, 9620 Maryland Avenue, Suite 100, Norfolk, VA 23511–2989. (b) The TCU Norfolk has cognizance over all DoN claims. Normally, the TCU Norfolk has primary responsibility for the negotiation and settlement of NAFI claims. This is because NAFIs are Federal agencies within the meaning of the Federal Tort Claims Act (FTCA) if the NAFI is charged with an essential function of the DoN and if the degree of control and supervision by the Navy is more than casual or perfunctory. Compare United States v. Holcombe, 277 F.2d 143 (4th Cir. 1960) and Scott v. United States, 226 F. Supp. 846, (D. Ga. 1963). Consequently, to the extent sovereign immunity is waived by the FTCA, 28 U.S.C. 1346(b), 2671–2672, 2674–2680, the United States remains ultimately liable for payment of NAFI claims. I 6. Section 756.5 is revised to read as follows: § 756.5 Investigation. Claims arising out of the operation of NAFIs, in and outside the United States, shall be investigated in accordance with the procedures for investigating similar claims against appropriated fund activities. The Manual of the Judge Advocate General (JAGMAN), Chapter II 2 provides guidance in conducting an investigation of an incident or event likely to result in claims or civil litigation against or for DoN or the United States. I 7. Section 756.6 is revised to read as follows: § 756.6 Negotiation. (a) All claims resulting from NAFIs should be submitted to the command having cognizance over the NAFI involved. The claim will then be forwarded to the Tort Claims Unit (TCU) Norfolk located at the following address: Department of the Navy, Office of the Judge Advocate General, Tort Claims (a) General. Claims from NAFIs should be processed primarily through procedures, regulations, and statutes applicable to similar appropriated fund activity claims. (b) When the NAFI is insured. When a NAFI is insured, the insurer or the contracted third-party claims administrator (TPA) will normally conduct negotiations with claimants. The TCU Norfolk shall monitor the negotiations conducted by the insurer or TPA. Monitoring is normally limited to ascertaining that someone has been assigned to negotiate, to obtain periodic status reports, and to close files on settled claims. Any dissatisfaction with the insurer’s or TPA’s handling of the negotiations should be referred directly to the Judge Advocate General (Claims and Tort Litigation) for appropriate action. If requested by the insurer or 1 DoD Directive 5515.6 establishes policy governing the administrative processing of claims arising out of the operation of non-appropriated fund activities. 2 JAGMAN Chapter II (JAG Instruction 5800.7E) is available at the Web site of the Navy Judge Advocate General’s Corps at http:// www.jag.navy.mil. § 756.2 Definitions. * * * * * (c) Employees of NAFIs. Personnel employed by NAFIs whose salaries are paid from non-appropriated funds. I 5. Revise § 756.4 to read as follows: § 756.4 PO 00000 Responsibility. Frm 00015 Fmt 4700 Sfmt 4700 E:\FR\FM\19SER1.SGM 19SER1 53426 Federal Register / Vol. 72, No. 181 / Wednesday, September 19, 2007 / Rules and Regulations TPA, the TCU Norfolk may conduct negotiations. If TCU Norfolk negotiates a final settlement, however, request for payment will be forwarded to the insurer or TPA for payment. Concurrence by the insurer or TPA in the amount of the settlement is not necessary. (c) When the NAFI is not insured. When there is no private commercial insurer and the NAFI has made no independent arrangements for negotiations, the TCU Norfolk is responsible for conducting negotiations. When an appropriate settlement is negotiated by the Navy, the recommended award will be forwarded to the NAFI for payment from nonappropriated funds. I 8. Section 756.7 is revised to read as follows: yshivers on PROD1PC66 with RULES § 756.7 Payment. (a) Claims that can be settled for less than 1,500.00. A claim not covered by insurance (or not paid by the insurer), that can be settled for $1,500.00 or less, may be adjudicated by the TCU Norfolk or single-service authority and forwarded to the commanding officer of the activity concerned or designee for payment out of funds available to the commanding officer. The TCU Norfolk or single-service authority will obtain the required release from the claimant. (b) Claims that cannot be settled for less than $1,500.00. A claim negotiated by the Navy, not covered by insurance, that is for more than $1,500.00 will be forwarded to the appropriate nonappropriated fund headquarters command for payment from its nonappropriated funds. (c) When payment is possible under another statute. In some cases, neither the NAFI nor its insurer may be legally responsible. In those instances when there is no negligence, and payment is authorized under some other statute, such as the Foreign Claims Act, 10 U.S.C. 2734–2736, the claim may be considered for payment from appropriated funds or may be referred to the TCU Norfolk for appropriate action. (d) Other claims. A NAFI’s private insurance policy is usually not available to cover losses that result from some act or omission of a mere participant in a non-appropriated fund activity. In the event the NAFI declines to pay the claim, the file shall be forwarded to the TCU Norfolk for determination. I 9. Section 756.8 is revised to read as follows: § 756.8 Denial. Claims resulting from nonappropriated fund activities may be denied only by the TCU Norfolk. The VerDate Aug<31>2005 15:05 Sep 18, 2007 Jkt 211001 denial will begin the six-month limitation on filing suit against the United States for claims filed under the FTCA. Denial of a claim shall be in writing and in accordance with subparts A and B of part 750 of this chapter, as appropriate. The TCU Norfolk should not deny claims that have initially been processed and negotiated by a nonappropriated fund activity, its insurer, or TPA, until the activity or its insurer has clearly stated in writing that it does not intend to pay the claim and has elected to defend the claim in court. Dated: September 10, 2007. T.M. Cruz, Lieutenant, Judge Advocate General’s Corps, U.S. Navy, Federal Register Liaison Officer. [FR Doc. E7–18205 Filed 9–18–07; 8:45 am] 10. Section 756.9 is revised to read as follows: RIN 0703–AA81 Affirmative Claims Regulations § 756.9 AGENCY: I Claims by employees. (a) Property. Claims by employees of NAFIs for loss, damage, or destruction of personal property incident to their employment shall be processed and adjudicated in accordance with subparts A or B of part 751 of this chapter, as appropriate. The claims will then be forwarded to the appropriate NAFI for payment from non-appropriated funds. (b) Personal injury or death. (1) Personal injury or death of citizens or permanent residents of the United States employed anywhere, or foreign nationals employed within the United States. Compensation is provided by the Longshore and Harbor Workers’ Compensation Act (33 U.S.C. 901–950) for employees of NAFIs who have suffered injury or death arising out of, and in the course of, their employment (5 U.S.C. 8171). That Act is the exclusive basis for Government liability for such injuries or deaths that are covered (5 U.S.C. 8173). A claim should first be made under that Act if there is a substantial possibility the injury or death is covered under the Act’s provisions. (2) Personal injury or death of foreign nationals employed outside of the continental United States. Employees who are not citizens or permanent residents, and who are employed outside the continental United States, may be protected by private insurance of the NAFI or by other arrangements. When a non-appropriated fund activity has elected not to obtain insurance coverage or to make other arrangements, compensation is separately provided by Federal statute, military regulations, and agreements with foreign countries. See 5 U.S.C. 8172, DoD 1401.1–M, Personnel Policy Manual for Non-appropriated Fund Instrumentalities and BUPERINST 5300.10A, NAF Personnel Manual. PO 00000 Frm 00016 Fmt 4700 Sfmt 4700 BILLING CODE 3810–FF–P DEPARTMENT OF DEFENSE Department of the Navy 32 CFR Part 757 [USN–2006–0041] ACTION: Department of the Navy, DoD. Interim final rule. SUMMARY: This rule reflects administrative changes to the regulations concerning the administrative processing and consideration of claims on behalf of and against the United States. The revisions will ensure the proper administrative processing and consideration of claims on behalf of and against the United States. This rule is being published by the Department of the Navy for guidance and interest of the public in accordance with 5 U.S.C. 552(a)(1). DATES: This rule is effective September 19, 2007. Comments must be received by November 19, 2007. ADDRESSES: You may submit comments, identified by docket number and/or Regulatory Information Number (RIN) and title, by any of the following methods: Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments. Mail: Federal Docket Management System Office, 1160 Defense Pentagon, Washington, DC 20301–1160. Instructions: All submissions received must include the agency name and docket number or RIN for this Federal Register document. The general policy for comments and other submissions from members of the public is to make these submissions available for public viewing on the Internet at http:// regulations.gov as they are received without change, including any personal identifiers or contact information. FOR FURTHER INFORMATION CONTACT: Mr. Enrique Mendez, Head, Affirmative and Personnel Claims Branch, Claims and Tort Litigation Division (Code 15), Office of the Judge Advocate General, 1322 Patterson, Avenue SE., Washington Navy Yard, DC 20374, telephone 202–685–4621. SUPPLEMENTARY INFORMATION: Executive Order 12866, ‘‘Regulatory Planning and E:\FR\FM\19SER1.SGM 19SER1

Agencies

[Federal Register Volume 72, Number 181 (Wednesday, September 19, 2007)]
[Rules and Regulations]
[Pages 53424-53426]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-18205]


-----------------------------------------------------------------------

DEPARTMENT OF DEFENSE

Department of the Navy

32 CFR Part 756

[USN-2006-0040]
RIN 0703-AA80


Nonappropriated-Fund Claims Regulations

AGENCY: Department of the Navy, DoD.

ACTION: Interim final rule.

-----------------------------------------------------------------------

SUMMARY: This rule reflects administrative changes to the regulations 
concerning the administrative processing of non-appropriated funds. The 
revisions will ensure the proper administrative processing and 
consideration of claims on behalf of and against the United States. 
This rule is being published by the Department of the Navy (DoN) for 
guidance and interest of the public in accordance with 5 U.S.C. 
552(a)(1).

DATES: This rule is effective September 19, 2007. Comments must be 
received by November 19, 2007.

ADDRESSES: You may submit comments, identified by docket number and/or 
Regulatory Information Number (RIN) and title, by any of the following 
methods: Federal eRulemaking Portal: http://www.regulations.gov. Follow 
the instructions for submitting comments.

[[Page 53425]]

    Mail: Federal Docket Management System Office, 1160 Defense 
Pentagon, Washington, DC 20301-1160.
    Instructions: All submissions received must include the agency name 
and docket number or RIN for this Federal Register document. The 
general policy for comments and other submissions from members of the 
public is to make these submissions available for public viewing on the 
Internet at http://regulations.gov as they are received without change, 
including any personal identifiers or contact information.

FOR FURTHER INFORMATION CONTACT: Mr. Dan Fields, Head, Tort Claims 
Branch, Claims and Tort Litigation Division (Code 15), Office of the 
Judge Advocate General, 1322 Patterson Avenue, SE., Washington Navy 
Yard, DC 20374, telephone 202-685-4600.

SUPPLEMENTARY INFORMATION: Executive Order 12866, ``Regulatory Planning 
and Review.'' It has been determined that the changes to 32 CFR part 
756 are not considered a ``significant regulatory action.'' The rule 
does not:
    (1) Have an annual affect on the economy of $100 million or more or 
adversely affect in a material way the economy, a sector in 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 the 
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.
    Unfunded Mandates Reform Act (Sec. 202, Pub. L. 104-4). It has been 
certified that 32 CFR part 756 does not contain Federal Mandates that 
result in expenditures by State, local and tribal governments, in 
aggregate, or by the private sector, of $100 million or more in any one 
year.
    Public Law 96-354, ``Regulatory Flexibility Act'' (5 U.S.C. 601). 
It has been determined that this rule is not subject to the Regulatory 
Flexibility Act (5 U.S.C. 601) because it would not, if promulgated, 
have a significant economic impact on a substantial number of small 
entities. This rule implements the processing of the proper 
administrative processing and consideration of claims on behalf of and 
against the United States, and does not economically impact the Federal 
government's relations with the private sector.
    Public Law 96-511, ``Paperwork Reduction Act'' (44 U.S.C. Chapter 
35). This rule does not impose collection of information requirements 
for purposes of the Paperwork Reduction Act (44 U.S.C. Chapter 35, 5 
CFR part 1320).
    Executive Order 13132, ``Federalism''. It has been certified that 
32 CFR part 756 does not have federalism implications as set forth in 
Executive Order 13132. This rule does not have substantial direct 
effects on:
    (1) The States;
    (2) The relationship between the National Government and the 
States; or
    (3) The distribution of power and responsibilities among the 
various levels of Government.

List of Subjects in 32 CFR Part 756

    Claims.

0
Accordingly, 32 CFR part 756 is amended to read as follows:

PART 756--PROCEDURES FOR PROCESSING CLAIMS INVOLVING NON-
APPROPRIATED FUND ACTIVITIES AND THEIR EMPLOYEES

0
1. The authority citation for part 756 is revised to read as follows:

    Authority: 5 U.S.C. 301, 10 U.S.C. 5013 and 5148.


0
2. The heading for part 756 is revised to read as set forth above.

0
3. Section 756.1 is revised to read as follows:


Sec.  756.1  Scope.

    This part explains how to settle claims for and against the United 
States for property damage, personal injury, or death arising out of 
the operation of non-appropriated fund activities (NAFI).\1\
---------------------------------------------------------------------------

    \1\ DoD Directive 5515.6 establishes policy governing the 
administrative processing of claims arising out of the operation of 
non-appropriated fund activities.

0
4. Section 756.2 is amended by revising paragraph (c) to read as 
follows:


Sec.  756.2  Definitions.

* * * * *
    (c) Employees of NAFIs. Personnel employed by NAFIs whose salaries 
are paid from non-appropriated funds.

0
5. Revise Sec.  756.4 to read as follows:


Sec.  756.4  Responsibility.

    (a) All claims resulting from NAFIs should be submitted to the 
command having cognizance over the NAFI involved. The claim will then 
be forwarded to the Tort Claims Unit (TCU) Norfolk located at the 
following address: Department of the Navy, Office of the Judge Advocate 
General, Tort Claims Unit Norfolk, 9620 Maryland Avenue, Suite 100, 
Norfolk, VA 23511-2989.
    (b) The TCU Norfolk has cognizance over all DoN claims. Normally, 
the TCU Norfolk has primary responsibility for the negotiation and 
settlement of NAFI claims. This is because NAFIs are Federal agencies 
within the meaning of the Federal Tort Claims Act (FTCA) if the NAFI is 
charged with an essential function of the DoN and if the degree of 
control and supervision by the Navy is more than casual or perfunctory. 
Compare United States v. Holcombe, 277 F.2d 143 (4th Cir. 1960) and 
Scott v. United States, 226 F. Supp. 846, (D. Ga. 1963). Consequently, 
to the extent sovereign immunity is waived by the FTCA, 28 U.S.C. 
1346(b), 2671-2672, 2674-2680, the United States remains ultimately 
liable for payment of NAFI claims.

0
6. Section 756.5 is revised to read as follows:


Sec.  756.5  Investigation.

    Claims arising out of the operation of NAFIs, in and outside the 
United States, shall be investigated in accordance with the procedures 
for investigating similar claims against appropriated fund activities. 
The Manual of the Judge Advocate General (JAGMAN), Chapter II \2\ 
provides guidance in conducting an investigation of an incident or 
event likely to result in claims or civil litigation against or for DoN 
or the United States.
---------------------------------------------------------------------------

    \2\ JAGMAN Chapter II (JAG Instruction 5800.7E) is available at 
the Web site of the Navy Judge Advocate General's Corps at http://
www.jag.navy.mil.

0
7. Section 756.6 is revised to read as follows:


Sec.  756.6  Negotiation.

    (a) General. Claims from NAFIs should be processed primarily 
through procedures, regulations, and statutes applicable to similar 
appropriated fund activity claims.
    (b) When the NAFI is insured. When a NAFI is insured, the insurer 
or the contracted third-party claims administrator (TPA) will normally 
conduct negotiations with claimants. The TCU Norfolk shall monitor the 
negotiations conducted by the insurer or TPA. Monitoring is normally 
limited to ascertaining that someone has been assigned to negotiate, to 
obtain periodic status reports, and to close files on settled claims. 
Any dissatisfaction with the insurer's or TPA's handling of the 
negotiations should be referred directly to the Judge Advocate General 
(Claims and Tort Litigation) for appropriate action. If requested by 
the insurer or

[[Page 53426]]

TPA, the TCU Norfolk may conduct negotiations. If TCU Norfolk 
negotiates a final settlement, however, request for payment will be 
forwarded to the insurer or TPA for payment. Concurrence by the insurer 
or TPA in the amount of the settlement is not necessary.
    (c) When the NAFI is not insured. When there is no private 
commercial insurer and the NAFI has made no independent arrangements 
for negotiations, the TCU Norfolk is responsible for conducting 
negotiations. When an appropriate settlement is negotiated by the Navy, 
the recommended award will be forwarded to the NAFI for payment from 
non-appropriated funds.

0
8. Section 756.7 is revised to read as follows:


Sec.  756.7  Payment.

    (a) Claims that can be settled for less than 1,500.00. A claim not 
covered by insurance (or not paid by the insurer), that can be settled 
for $1,500.00 or less, may be adjudicated by the TCU Norfolk or single-
service authority and forwarded to the commanding officer of the 
activity concerned or designee for payment out of funds available to 
the commanding officer. The TCU Norfolk or single-service authority 
will obtain the required release from the claimant.
    (b) Claims that cannot be settled for less than $1,500.00. A claim 
negotiated by the Navy, not covered by insurance, that is for more than 
$1,500.00 will be forwarded to the appropriate non-appropriated fund 
headquarters command for payment from its non-appropriated funds.
    (c) When payment is possible under another statute. In some cases, 
neither the NAFI nor its insurer may be legally responsible. In those 
instances when there is no negligence, and payment is authorized under 
some other statute, such as the Foreign Claims Act, 10 U.S.C. 2734-
2736, the claim may be considered for payment from appropriated funds 
or may be referred to the TCU Norfolk for appropriate action.
    (d) Other claims. A NAFI's private insurance policy is usually not 
available to cover losses that result from some act or omission of a 
mere participant in a non-appropriated fund activity. In the event the 
NAFI declines to pay the claim, the file shall be forwarded to the TCU 
Norfolk for determination.

0
9. Section 756.8 is revised to read as follows:


Sec.  756.8  Denial.

    Claims resulting from non-appropriated fund activities may be 
denied only by the TCU Norfolk. The denial will begin the six-month 
limitation on filing suit against the United States for claims filed 
under the FTCA. Denial of a claim shall be in writing and in accordance 
with subparts A and B of part 750 of this chapter, as appropriate. The 
TCU Norfolk should not deny claims that have initially been processed 
and negotiated by a non-appropriated fund activity, its insurer, or 
TPA, until the activity or its insurer has clearly stated in writing 
that it does not intend to pay the claim and has elected to defend the 
claim in court.

0
10. Section 756.9 is revised to read as follows:


Sec.  756.9  Claims by employees.

    (a) Property. Claims by employees of NAFIs for loss, damage, or 
destruction of personal property incident to their employment shall be 
processed and adjudicated in accordance with subparts A or B of part 
751 of this chapter, as appropriate. The claims will then be forwarded 
to the appropriate NAFI for payment from non-appropriated funds.
    (b) Personal injury or death. (1) Personal injury or death of 
citizens or permanent residents of the United States employed anywhere, 
or foreign nationals employed within the United States. Compensation is 
provided by the Longshore and Harbor Workers' Compensation Act (33 
U.S.C. 901-950) for employees of NAFIs who have suffered injury or 
death arising out of, and in the course of, their employment (5 U.S.C. 
8171). That Act is the exclusive basis for Government liability for 
such injuries or deaths that are covered (5 U.S.C. 8173). A claim 
should first be made under that Act if there is a substantial 
possibility the injury or death is covered under the Act's provisions.
    (2) Personal injury or death of foreign nationals employed outside 
of the continental United States. Employees who are not citizens or 
permanent residents, and who are employed outside the continental 
United States, may be protected by private insurance of the NAFI or by 
other arrangements. When a non-appropriated fund activity has elected 
not to obtain insurance coverage or to make other arrangements, 
compensation is separately provided by Federal statute, military 
regulations, and agreements with foreign countries. See 5 U.S.C. 8172, 
DoD 1401.1-M, Personnel Policy Manual for Non-appropriated Fund 
Instrumentalities and BUPERINST 5300.10A, NAF Personnel Manual.

    Dated: September 10, 2007.
T.M. Cruz,
Lieutenant, Judge Advocate General's Corps, U.S. Navy, Federal Register 
Liaison Officer.
 [FR Doc. E7-18205 Filed 9-18-07; 8:45 am]
BILLING CODE 3810-FF-P