Veterans' Group Life Insurance (VGLI) No-Health Period Extension, 37839-37841 [2012-15420]
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Federal Register / Vol. 77, No. 122 / Monday, June 25, 2012 / Proposed Rules
37839
of the Associate Chief Counsel
(Passthroughs and Special Industries).
However, other personnel from the IRS
and the Treasury Department
participated in their development.
List of Subjects
[FR Doc. 2012–15421 Filed 6–22–12; 8:45 am]
Background
This document contains proposed
amendments to the Income Tax
Regulations (26 CFR part 1) under
section 1361 of the Internal Revenue
Code (Code) and the Procedure and
Administration Regulations (26 CFR
part 301) under section 7701 of the
Code. The text of temporary regulations
published in this issue of the Federal
Register also serves as the text of these
proposed regulations. The preamble to
the temporary regulations explains the
temporary regulations and these
proposed regulations.
26 CFR Part 1
BILLING CODE 4830–01–P
Special Analyses
It has been determined that this notice
of proposed rulemaking is not a
significant regulatory action as defined
in Executive Order 12866, as
supplemented by Executive Order
13563. Therefore, a regulatory
assessment is not required. It has also
been determined that section 553(b) of
the Administrative Procedure Act (5
U.S.C. chapter 5) does not apply to these
regulations, and because these
regulations do not impose a collection
of information on small entities, the
Regulatory Flexibility Act (5 U.S.C.
chapter 6) does not apply. Pursuant to
section 7805(f) of the Internal Revenue
Code, this regulation has been
submitted to the Chief Counsel for
Advocacy of the Small Business
Administration for comment on its
impact on small business.
erowe on DSK2VPTVN1PROD with PROPOSALS-1
Michael H. Beker, (202) 622–3130;
concerning submissions of comments
and requests for a public hearing,
Oluwafunmilayo Taylor, (202) 622–7180
(not toll-free numbers).
SUPPLEMENTARY INFORMATION:
PART 1—INCOME TAX
Comments and Requests for a Public
Hearing
Before these proposed regulations are
adopted as final regulations,
consideration will be given to any
comments that are submitted timely to
the IRS as prescribed in this preamble
under the ADDRESSES heading. The IRS
and the Treasury Department request
comments on all aspects of the proposed
rules. All comments will be available at
www.regulations.gov or upon request. A
public hearing will be scheduled if
requested in writing by any person that
timely submits written comments. If a
public hearing is scheduled, notice of
the date, time, and place for the public
hearing will be published in the Federal
Register.
Drafting Information
The principal author of these
regulations is Michael H. Beker, Office
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14:54 Jun 22, 2012
Jkt 226001
Income taxes, Reporting and
recordkeeping requirements.
26 CFR Part 301
Employment taxes, Estate taxes,
Excise taxes, Gift taxes, Income taxes,
Penalties, Reporting and recordkeeping
requirements.
Proposed Amendments to the
Regulations
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.1361–4 is amended
by adding paragraph (a)(8)(iii) to read as
follows:
Effect of QSub election.
(a) * * *
(8) * * *
(iii) [The text of proposed § 1.1361–
4(a)(8)(iii) is the same as the text of
§ 1.1361–4T(a)(8)(iii)(A) and (B)
published elsewhere in this issue of the
Federal Register].
*
*
*
*
*
PART 301—PROCEDURE AND
ADMINISTRATION
Par. 3. The authority citation for part
301 continues to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 4. Section 301.7701–2 is
amended by adding new paragraphs
(c)(2)(vi) and (e)(9) to read as follows:
Business entities;
*
*
*
*
*
(c) * * *
(2) * * *
(vi) [The text of proposed § 301.7701–
2(c)(2)(vi) is the same as the text of
§ 301.7701–2T(c)(2)(vi) published
elsewhere in this issue of the Federal
Register].
*
*
*
*
*
(e) * * *
(9) [The text of proposed § 301.7701–
2(e)(9) is the same as the text of
§ 301.7701–2T(e)(9)(i) published
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DEPARTMENT OF VETERANS
AFFAIRS
38 CFR Part 9
RIN 2900–AO24
Veterans’ Group Life Insurance (VGLI)
No-Health Period Extension
ACTION:
Department of Veterans Affairs.
Proposed rule.
The Department of Veterans
Affairs (VA) proposes to amend its
regulations governing eligibility for
Veterans’ Group Life Insurance (VGLI)
to extend to 240 days the current 120day ‘‘no-health’’ period during which
veterans can apply for VGLI without
proving that they are in good health for
insurance purposes. The purpose of this
proposed rule is to increase the
opportunities for disabled veterans to
enroll in VGLI, some of who would not
qualify for VGLI coverage under existing
provisions.
DATES: Comments must be received by
VA on or before July 25, 2012.
ADDRESSES: Written comments may be
submitted through https://
www.Regulations.gov; by mail or hand
delivery to Director, Regulations
Management (02REG), Department of
Veterans Affairs, 810 Vermont Ave.
NW., Room 1068, Washington, DC
20420; or by fax to (202) 273–9026.
Comments should indicate that they are
submitted in response to ‘‘RIN 2900–
AO24—Veterans’ Group Life Insurance
(VGLI) No-Health Period Extension.’’
Copies of comments received will be
available for public inspection in the
Office of Regulation Policy and
Management, Room 1063B, between the
hours of 8 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 https://
www.Regulations.gov.
SUMMARY:
Paragraph 1. The authority citation
for part 1 continues to read in part as
follows:
§ 301.7701–2
definitions.
Steven T. Miller,
Deputy Commissioner for Services and
Enforcement.
AGENCY:
Accordingly, 26 CFR parts 1 and 301
are proposed to be amended as follows:
§ 1.1361–4
elsewhere in this issue of the Federal
Register].
FOR FURTHER INFORMATION CONTACT:
Monica Keitt, Attorney/Advisor,
Department of Veterans Affairs Regional
Office and Insurance Center (310/290B),
5000 Wissahickon Avenue, P.O. Box
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37840
Federal Register / Vol. 77, No. 122 / Monday, June 25, 2012 / Proposed Rules
8079, Philadelphia, PA 19101, (215)
842–2000, ext. 2905. (This is not a tollfree number.)
SUPPLEMENTARY INFORMATION: The
Secretary of Veterans Affairs has
authority to prescribe regulations that
are necessary or appropriate to carry out
the laws administered by VA and that
are consistent with those laws. 38 U.S.C.
501(a). Section 1977 of title 38, United
States Code, authorizes the Veterans’
Group Life Insurance (VGLI) program,
which provides servicemembers
separating from service with the option
of converting existing Servicemembers’
Group Life Insurance (SGLI) coverage
into renewable, 5-year term group life
insurance coverage. 38 U.S.C.
1968(b)(1)(A); see 38 U.S.C. 1977(b).
Furthermore, section 1977(b)(5)
authorizes VA to impose reasonable and
practicable terms and conditions on the
provision of VGLI. VA has exercised
that authority by providing, in 38 CFR
9.2(b), effective dates of VGLI coverage,
provided that the administrative office
has received an application and the
initial premium within certain specified
periods, usually within 120 days
following termination of duty.
Section 9.2(c) provides an exception
to the imposition of those limitation
periods. If either an application or the
initial premium has not been received
by the administrative office within the
applicable period specified in § 9.2(b),
VGLI coverage may still be granted if the
administrative office receives an
application, the initial premium, and
‘‘evidence of insurability’’ within 1 year
and 120 days following termination of
duty. Thus, evidence of insurability is
not required if a veteran submits to the
administrative office an application and
the initial premium within the period
required by § 9.2(b), but evidence of
insurability is required if a veteran
utilizes the 1-year grace period provided
by § 9.2(c). This proposed rule would
extend the period during which no
evidence of insurability is needed from
120 days to 240 days.
VA proposes to amend § 9.2(c) to
extend the ‘‘no-health’’ period during
which veterans can apply for VGLI
without the need to provide ‘‘evidence
of insurability’’ demonstrating good
health that is normally necessary to
obtain life insurance. Under § 9.2(c), a
veteran has an eligibility period of ‘‘1
year and 120 days following termination
of duty’’ to apply for VGLI. Currently,
during the initial 120 days following
termination of duty, veterans can
qualify for VGLI without the need to
prove that they are ‘‘insurable.’’ This
proposed rule would extend the VGLI
‘‘no-health’’ period from 120 days to 240
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Jkt 226001
days; it would make no change to the 1
year and 120-day VGLI eligibility period
following termination of duty except to
extend the period during which no
evidence of insurability is needed.
VA is proposing to extend the 120-day
‘‘no-health’’ period to 240 days to
increase the opportunity for disabled
veterans to apply for VGLI. VA has
found that during the initial 120-day
adjustment period following
termination of duty, many veterans have
not had time to assess their life
insurance needs. An expanded ‘‘nohealth’’ period would also provide VA
Insurance outreach services with an
increased opportunity to discuss
insurance coverage with these veterans
while they are still in the ‘‘no-health’’
period. By amending § 9.2(c), VA would
ensure that veterans with serviceconnected disabilities have ample
opportunity to provide life insurance
protection for their families and loved
ones.
In addition to changes made to the
length of the ‘‘no-health’’ period, this
amendment of § 9.2(c) would also
include removal of the words
‘‘Servicemembers’ Group Life Insurance
or,’’ which refers to Retired Reservist
SGLI, which was discontinued by
Public Law 104–275 as an independent
program on October 9, 1996, because the
program was merged into the VGLI
program and extended VGLI to members
of the Ready Reserves. As a result,
reference to SGLI in § 9.2(c) is no longer
applicable.
Finally, VA is proposing to amend
§ 9.2 by revising the authority citation
that follows § 9.2(b)(4) to read
‘‘(Authority: 38 U.S.C. 1977)’’ instead of
‘‘(Authority: 38 U.S.C. 1977(e)).’’ This
amendment will reflect the proper legal
authority under which VGLI provisions
apply, as it relates to this regulation,
instead of just paragraph (e), which is
not broad enough to provide the proper
authority for VGLI provisions provided
under § 9.2.
VA estimates that there would be no
additional costs to the Government as a
result of this proposed rule. We
anticipate that the final rule will be
effective in early fall 2012, and apply to
veterans released from service on or
after the effective date.
Comment Period
Although under the rulemaking
guidelines in Executive Order 12866,
VA ordinarily provides a 60-day
comment period, the Secretary has
determined that there is good cause to
limit the public comment period on this
proposed rule to 30 days. VA does not
expect to receive a large number of
comments on this proposed rule,
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particularly comments that are negative
or that oppose this rule, because this
rule would increase the opportunity for
veterans to obtain valuable insurance
coverage that is needed to help ensure
financial security for their families,
while placing no additional burdens on
veterans or their families. Lastly, VA
believes that implementation of this
regulation is particularly urgent because
by extending the VGLI ‘‘no-health’’
eligibility period, it will enable some of
the most disabled veterans to obtain
insurance coverage when eligibility for
commercial insurance is not possible
due to their disabilities. The 30-day
review and comment period will not
result in any additional cost or cause
any negative impacts on the program,
but will make the extended ‘‘no-health’’
period available to disabled veterans
sooner. Accordingly, the Secretary has
determined that it is unnecessary,
impracticable, and contrary to the
public interest to provide for a longer
comment period, and VA has provided
that comments must be received within
30 days of publication in the Federal
Register.
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 an
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
year. This proposed rule would have no
such effect on State, local, and tribal
governments or on the private sector.
Paperwork Reduction Act
This proposed rule contains no
provisions constituting a collection of
information under the Paperwork
Reduction Act (44 U.S.C. 3501–3521).
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
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Federal Register / Vol. 77, No. 122 / Monday, June 25, 2012 / Proposed Rules
regulatory action,’’ which requires
review by the Office of Management and
Budget (OMB), 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.
Regulatory Flexibility Act
The Secretary of Veterans Affairs
hereby certifies that this proposed rule
would not have a significant economic
impact on a substantial number of small
entities as they are defined in the
Regulatory Flexibility Act, 5 U.S.C. 601–
612. This proposed rule would directly
affect only individuals and will not
directly affect any small entities.
Therefore, pursuant to 5 U.S.C. 605(b),
this proposed rule is exempt from the
initial and final regulatory flexibility
analysis requirements of sections 603
and 604.
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Catalog of Federal Domestic Assistance
Number and Title
The Catalog of Federal Domestic
Assistance number and title for the
program affected by this document is
64.103, Life Insurance for Veterans.
Signing Authority
The Secretary of Veterans Affairs, or
designee, approved this document and
authorized the undersigned to sign and
submit the document to the Office of the
Federal Register for publication
electronically as an official document of
the Department of Veterans Affairs. John
R. Gingrich, Chief of Staff, Department
of Veterans Affairs, approved this
document on June 20, 2012, for
publication.
List of Subjects in 38 CFR Part 9
Life insurance, Military personnel,
Veterans.
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14:54 Jun 22, 2012
Jkt 226001
Dated: June 20, 2012.
Robert C. McFetridge,
Director, Office of Regulation Policy and
Management, Office of the General Counsel,
Department of Veterans Affairs.
For the reasons stated in the
preamble, the Department of Veterans
Affairs proposes to amend 38 CFR part
9 as follows:
PART 9—SERVICEMEMBERS’ GROUP
LIFE INSURANCE AND VETERANS’
GROUP LIFE INSURANCE
1. The authority citation for part 9
continues to read as follows:
Authority: 38 U.S.C. 501, 1965–1980A,
unless otherwise noted.
2. Amend § 9.2 by:
a. Revising the authority citation at
the end of paragraph (b).
b. Revising paragraph (c).
c. Adding an authority citation at the
end of the section.
The revisions and addition read as
follows:
§ 9.2
*
Effective date; applications.
*
*
(b) * * *
*
*
(Authority: 38 U.S.C. 1977)
(c) If either an application or the
initial premium has not been received
by the administrative office within the
time limits set forth above, Veterans’
Group Life Insurance coverage may still
be granted if an application, the initial
premium, and evidence of insurability
are received by the administrative office
within 1 year and 120 days following
termination of duty, except that
evidence of insurability is not required
during the initial 240 days following
termination of duty.
*
*
*
*
*
(Authority: 38 U.S.C. 501, 1967, 1968, 1977)
[FR Doc. 2012–15420 Filed 6–22–12; 8:45 am]
BILLING CODE 8320–01–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 52
[EPA–R04–OAR–2008–0177; FRL–9689–4]
Approval and Promulgation of Air
Quality Implementation Plans; South
Carolina; Emissions Statements
Environmental Protection
Agency (EPA).
ACTION: Proposed rule.
AGENCY:
EPA is proposing to approve
a portion of a State Implementation Plan
(SIP) revision submitted on April 29,
SUMMARY:
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37841
2010, by the State of South Carolina,
through the Department of Health and
Environmental Control (SC DHEC), to
meet the emissions statements
requirement for the York County portion
of the bi-state Charlotte-Gastonia-Rock
Hill, North Carolina-South Carolina
1997 8-hour ozone nonattainment area.
The Charlotte-Gastonia-Rock Hill, North
Carolina-South Carolina 1997 8-hour
ozone nonattainment area is comprised
of Cabarrus, Gaston, Lincoln,
Mecklenburg, Rowan, Union and a
portion of Iredell (Davidson and Coddle
Creek Townships) Counties in North
Carolina; and a portion of York County
(i.e., the boundary for the Rock Hill-Fort
Mill Area Transportation Study) in
South Carolina. EPA is addressing the
emissions statements requirement for
the North Carolina portion of this Area
in a separate action. This proposed
action is being taken pursuant to section
110 and section 182 of the Clean Air
Act.
DATES: Written comments must be
received on or before July 25, 2012.
ADDRESSES: Submit your comments,
identified by Docket ID Number, ‘‘EPA–
R04–OAR–2008–0177,’’ by one of the
following methods:
1. www.regulations.gov: Follow the
on-line instructions for submitting
comments.
2. Email: R4-RDS@epa.gov.
3. Fax: 404–562–9019.
4. Mail: ‘‘EPA–R04–OAR–2008–
0177,’’ Regulatory Development Section,
Air Planning Branch, Air, Pesticides and
Toxics Management Division, U.S.
Environmental Protection Agency,
Region 4, 61 Forsyth Street SW.,
Atlanta, Georgia 30303–8960.
5. Hand Delivery or Courier: Ms.
Lynorae Benjamin, Chief, Regulatory
Development Section, Air Planning
Branch, Air, Pesticides and Toxics
Management Division, U.S.
Environmental Protection Agency,
Region 4, 61 Forsyth Street SW.,
Atlanta, Georgia 30303–8960. Such
deliveries are only accepted during the
Regional Office’s normal hours of
operation. The Regional Office’s official
hours of business are Monday through
Friday, 8:30 a.m. to 4:30 p.m., excluding
federal holidays.
Please see the direct final rule which
is located in the Rules section of this
Federal Register for detailed
instructions on how to submit
comments.
FOR FURTHER INFORMATION CONTACT: Ms.
Sara Waterson of the Regulatory
Development Section, in the Air
Planning Branch, Air, Pesticides and
Toxics Management Division, U.S.
Environmental Protection Agency,
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]]>Agencies
[Federal Register Volume 77, Number 122 (Monday, June 25, 2012)]
[Proposed Rules]
[Pages 37839-37841]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-15420]
=======================================================================
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DEPARTMENT OF VETERANS AFFAIRS
38 CFR Part 9
RIN 2900-AO24
Veterans' Group Life Insurance (VGLI) No-Health Period Extension
AGENCY: Department of Veterans Affairs.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Department of Veterans Affairs (VA) proposes to amend its
regulations governing eligibility for Veterans' Group Life Insurance
(VGLI) to extend to 240 days the current 120-day ``no-health'' period
during which veterans can apply for VGLI without proving that they are
in good health for insurance purposes. The purpose of this proposed
rule is to increase the opportunities for disabled veterans to enroll
in VGLI, some of who would not qualify for VGLI coverage under existing
provisions.
DATES: Comments must be received by VA on or before July 25, 2012.
ADDRESSES: Written comments may be submitted through https://www.Regulations.gov; by mail or hand delivery to Director, Regulations
Management (02REG), Department of Veterans Affairs, 810 Vermont Ave.
NW., Room 1068, Washington, DC 20420; or by fax to (202) 273-9026.
Comments should indicate that they are submitted in response to ``RIN
2900-AO24--Veterans' Group Life Insurance (VGLI) No-Health Period
Extension.'' Copies of comments received will be available for public
inspection in the Office of Regulation Policy and Management, Room
1063B, between the hours of 8 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 https://www.Regulations.gov.
FOR FURTHER INFORMATION CONTACT: Monica Keitt, Attorney/Advisor,
Department of Veterans Affairs Regional Office and Insurance Center
(310/290B), 5000 Wissahickon Avenue, P.O. Box
[[Page 37840]]
8079, Philadelphia, PA 19101, (215) 842-2000, ext. 2905. (This is not a
toll-free number.)
SUPPLEMENTARY INFORMATION: The Secretary of Veterans Affairs has
authority to prescribe regulations that are necessary or appropriate to
carry out the laws administered by VA and that are consistent with
those laws. 38 U.S.C. 501(a). Section 1977 of title 38, United States
Code, authorizes the Veterans' Group Life Insurance (VGLI) program,
which provides servicemembers separating from service with the option
of converting existing Servicemembers' Group Life Insurance (SGLI)
coverage into renewable, 5-year term group life insurance coverage. 38
U.S.C. 1968(b)(1)(A); see 38 U.S.C. 1977(b). Furthermore, section
1977(b)(5) authorizes VA to impose reasonable and practicable terms and
conditions on the provision of VGLI. VA has exercised that authority by
providing, in 38 CFR 9.2(b), effective dates of VGLI coverage, provided
that the administrative office has received an application and the
initial premium within certain specified periods, usually within 120
days following termination of duty.
Section 9.2(c) provides an exception to the imposition of those
limitation periods. If either an application or the initial premium has
not been received by the administrative office within the applicable
period specified in Sec. 9.2(b), VGLI coverage may still be granted if
the administrative office receives an application, the initial premium,
and ``evidence of insurability'' within 1 year and 120 days following
termination of duty. Thus, evidence of insurability is not required if
a veteran submits to the administrative office an application and the
initial premium within the period required by Sec. 9.2(b), but
evidence of insurability is required if a veteran utilizes the 1-year
grace period provided by Sec. 9.2(c). This proposed rule would extend
the period during which no evidence of insurability is needed from 120
days to 240 days.
VA proposes to amend Sec. 9.2(c) to extend the ``no-health''
period during which veterans can apply for VGLI without the need to
provide ``evidence of insurability'' demonstrating good health that is
normally necessary to obtain life insurance. Under Sec. 9.2(c), a
veteran has an eligibility period of ``1 year and 120 days following
termination of duty'' to apply for VGLI. Currently, during the initial
120 days following termination of duty, veterans can qualify for VGLI
without the need to prove that they are ``insurable.'' This proposed
rule would extend the VGLI ``no-health'' period from 120 days to 240
days; it would make no change to the 1 year and 120-day VGLI
eligibility period following termination of duty except to extend the
period during which no evidence of insurability is needed.
VA is proposing to extend the 120-day ``no-health'' period to 240
days to increase the opportunity for disabled veterans to apply for
VGLI. VA has found that during the initial 120-day adjustment period
following termination of duty, many veterans have not had time to
assess their life insurance needs. An expanded ``no-health'' period
would also provide VA Insurance outreach services with an increased
opportunity to discuss insurance coverage with these veterans while
they are still in the ``no-health'' period. By amending Sec. 9.2(c),
VA would ensure that veterans with service-connected disabilities have
ample opportunity to provide life insurance protection for their
families and loved ones.
In addition to changes made to the length of the ``no-health''
period, this amendment of Sec. 9.2(c) would also include removal of
the words ``Servicemembers' Group Life Insurance or,'' which refers to
Retired Reservist SGLI, which was discontinued by Public Law 104-275 as
an independent program on October 9, 1996, because the program was
merged into the VGLI program and extended VGLI to members of the Ready
Reserves. As a result, reference to SGLI in Sec. 9.2(c) is no longer
applicable.
Finally, VA is proposing to amend Sec. 9.2 by revising the
authority citation that follows Sec. 9.2(b)(4) to read ``(Authority:
38 U.S.C. 1977)'' instead of ``(Authority: 38 U.S.C. 1977(e)).'' This
amendment will reflect the proper legal authority under which VGLI
provisions apply, as it relates to this regulation, instead of just
paragraph (e), which is not broad enough to provide the proper
authority for VGLI provisions provided under Sec. 9.2.
VA estimates that there would be no additional costs to the
Government as a result of this proposed rule. We anticipate that the
final rule will be effective in early fall 2012, and apply to veterans
released from service on or after the effective date.
Comment Period
Although under the rulemaking guidelines in Executive Order 12866,
VA ordinarily provides a 60-day comment period, the Secretary has
determined that there is good cause to limit the public comment period
on this proposed rule to 30 days. VA does not expect to receive a large
number of comments on this proposed rule, particularly comments that
are negative or that oppose this rule, because this rule would increase
the opportunity for veterans to obtain valuable insurance coverage that
is needed to help ensure financial security for their families, while
placing no additional burdens on veterans or their families. Lastly, VA
believes that implementation of this regulation is particularly urgent
because by extending the VGLI ``no-health'' eligibility period, it will
enable some of the most disabled veterans to obtain insurance coverage
when eligibility for commercial insurance is not possible due to their
disabilities. The 30-day review and comment period will not result in
any additional cost or cause any negative impacts on the program, but
will make the extended ``no-health'' period available to disabled
veterans sooner. Accordingly, the Secretary has determined that it is
unnecessary, impracticable, and contrary to the public interest to
provide for a longer comment period, and VA has provided that comments
must be received within 30 days of publication in the Federal Register.
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 an 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 year. This proposed rule would have no such effect on
State, local, and tribal governments or on the private sector.
Paperwork Reduction Act
This proposed rule contains no provisions constituting a collection
of information under the Paperwork Reduction Act (44 U.S.C. 3501-3521).
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
[[Page 37841]]
regulatory action,'' which requires review by the Office of Management
and Budget (OMB), 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.
Regulatory Flexibility Act
The Secretary of Veterans Affairs hereby certifies that this
proposed rule would not have a significant economic impact on a
substantial number of small entities as they are defined in the
Regulatory Flexibility Act, 5 U.S.C. 601-612. This proposed rule would
directly affect only individuals and will not directly affect any small
entities. Therefore, pursuant to 5 U.S.C. 605(b), this proposed rule is
exempt from the initial and final regulatory flexibility analysis
requirements of sections 603 and 604.
Catalog of Federal Domestic Assistance Number and Title
The Catalog of Federal Domestic Assistance number and title for the
program affected by this document is 64.103, Life Insurance for
Veterans.
Signing Authority
The Secretary of Veterans Affairs, or designee, approved this
document and authorized the undersigned to sign and submit the document
to the Office of the Federal Register for publication electronically as
an official document of the Department of Veterans Affairs. John R.
Gingrich, Chief of Staff, Department of Veterans Affairs, approved this
document on June 20, 2012, for publication.
List of Subjects in 38 CFR Part 9
Life insurance, Military personnel, Veterans.
Dated: June 20, 2012.
Robert C. McFetridge,
Director, Office of Regulation Policy and Management, Office of the
General Counsel, Department of Veterans Affairs.
For the reasons stated in the preamble, the Department of Veterans
Affairs proposes to amend 38 CFR part 9 as follows:
PART 9--SERVICEMEMBERS' GROUP LIFE INSURANCE AND VETERANS' GROUP
LIFE INSURANCE
1. The authority citation for part 9 continues to read as follows:
Authority: 38 U.S.C. 501, 1965-1980A, unless otherwise noted.
2. Amend Sec. 9.2 by:
a. Revising the authority citation at the end of paragraph (b).
b. Revising paragraph (c).
c. Adding an authority citation at the end of the section.
The revisions and addition read as follows:
Sec. 9.2 Effective date; applications.
* * * * *
(b) * * *
(Authority: 38 U.S.C. 1977)
(c) If either an application or the initial premium has not been
received by the administrative office within the time limits set forth
above, Veterans' Group Life Insurance coverage may still be granted if
an application, the initial premium, and evidence of insurability are
received by the administrative office within 1 year and 120 days
following termination of duty, except that evidence of insurability is
not required during the initial 240 days following termination of duty.
* * * * *
(Authority: 38 U.S.C. 501, 1967, 1968, 1977)
[FR Doc. 2012-15420 Filed 6-22-12; 8:45 am]
BILLING CODE 8320-01-P
