Threshold for Reporting VA Debts to Consumer Reporting Agencies, 38958-38960 [2021-15490]
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38958
Federal Register / Vol. 86, No. 139 / Friday, July 23, 2021 / Proposed Rules
investigation and/or evaluation. Access
could reveal the identity of the source
of the information and constitute a
breach of the promised confidentiality
on the part of the Department. Such
breaches ultimately would restrict the
free flow of information vital to the
determination of a candidate’s
qualifications and suitability, among
other determinations. The Department
also relies on certain examination
materials to assess and evaluate an
individual’s qualifications for an
applicable position. Access and/or
amendment to such material could
reveal information about the
examination and vetting process and
could compromise its objectivity and/or
fairness. Access and/or amendment to
such material could also inappropriately
advantage future candidates with
knowledge of the examination materials.
Finally, providing the individual access
or amendment rights could result in the
release of properly classified
information which would compromise
the national defense or disrupt foreign
policy.
(3) From subsection (e)(1), because in
the collection of information for
investigative and evaluative purposes, it
is impossible to determine in advance
what exact information may be of
assistance in determining the
qualifications and suitability of the
subject of an investigation and/or
evaluation. Information which may
seem irrelevant, when combined with
other seemingly irrelevant information,
can on occasion provide a composite
picture of a candidate which assists in
determining whether that candidate
should be nominated for appointment.
Relevance and necessity are questions of
judgment and timing, and it is only after
the information is evaluated that the
relevance and necessity of such
information can be established. In
interviewing individuals or obtaining
other forms of information during OLP
processes, information may be supplied
to OLP which relates to matters
incidental to the primary purpose of
OLP’s processes, but also relates to
matters under the investigative
jurisdiction of another agency. Such
information cannot readily be
segregated.
(4) From subsections (e)(4)(G) and (H),
and subsection (f), because this system
is exempt from the access and
amendment provisions of subsection
(d).
(c) The General Files System of the
Office of Legal Policy (JUSTICE/OLP–
003) system of records is exempt from
subsections 552a(c)(3) and (4); (d);
(e)(1), (2) and (3), (e)(4)(G) and (H), and
(e)(5); and (g) of the Privacy Act,
VerDate Sep<11>2014
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Jkt 253001
pursuant to 5 U.S.C. 552a(j)(2), (k)(1),
(k)(2) and (k)(5). These exemptions
apply only to the extent that
information in this system is subject to
exemption pursuant to 5 U.S.C. 552(j),
(k). Where compliance would not
appear to interfere with or adversely
affect OLP’s processes, the applicable
exemption may be waived by OLP.
(d) Exemptions from the particular
subsections are justified for the
following reasons:
(1) From subsection (c)(3) because
making available to a record subject the
accounting of disclosures from records
concerning him/her would reveal
investigative interest on the part of the
Department as well as the recipient
agency. This would permit record
subjects to impede the investigation,
e.g., destroy evidence, intimidate
potential witnesses, or flee the area to
avoid inquiries or apprehension by law
enforcement personnel.
(2) From subsection (c)(4) because this
system is exempt from the access
provisions of subsection (d) pursuant to
subsections (j) and (k) of the Privacy
Act.
(3) From subsection (d) because the
records contained in this system relate
to official Federal investigations.
Individual access to these records might
compromise ongoing investigations,
reveal confidential informants, or
constitute unwarranted invasions of the
personal privacy of third parties who
are involved in a certain investigation.
Amendment of records would interfere
with ongoing criminal law enforcement
proceedings and impose an impossible
administrative burden by requiring
criminal investigations to be
continuously reinvestigated.
(4) From subsections (e)(1) and (5)
because in the course of law
enforcement investigations, information
may occasionally be obtained or
introduced, the accuracy of which is
unclear or which is not strictly relevant
or necessary to a specific investigation.
In the interests of effective law
enforcement, it is appropriate to retain
all information since it may aid in
establishing patterns of criminal
activity. Moreover, it would impede the
specific investigation process if it were
necessary to assure the relevance,
accuracy, timeliness and completeness
of all information obtained.
(5) From subsections (e)(2) because in
a law enforcement investigation the
requirement that information be
collected to the greatest extent possible
from the subject individual would
present a serious impediment to law
enforcement in that the subject of the
investigation would be informed of the
existence of the investigation and would
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Sfmt 4702
therefore be able to avoid detection,
apprehension, or legal obligations and
duties.
(6) From subsection (e)(3) because to
comply with the requirements of this
subsection during the course of an
investigation could impede the
information gathering process, thus
hampering the investigation.
(7) From subsections (e)(4)(G) and (H)
because this system is exempt from the
access provisions of subsection (d)
pursuant to subsections (j) and (k) of the
Privacy Act.
(8) From subsection (g) because this
system is exempt from the access and
amendment provisions of subsection (d)
pursuant to subsections (j) and (k) of the
Privacy Act.
Dated: July 1, 2021.
Peter A. Winn,
Acting Chief Privacy and Civil Liberties
Officer, United States Department of Justice.
[FR Doc. 2021–14995 Filed 7–22–21; 8:45 am]
BILLING CODE 4410–CW–P
DEPARTMENT OF VETERANS
AFFAIRS
38 CFR Part 1
RIN 2900–AR20
Threshold for Reporting VA Debts to
Consumer Reporting Agencies
Department of Veterans Affairs.
Proposed rule.
AGENCY:
ACTION:
The Department of Veterans
Affairs (VA) proposes to amend its
regulations around the conditions by
which VA benefits debts or medical
debts are reported to consumer
reporting agencies (CRA). The Johnny
Isakson and David P. Roe, M.D. Veterans
Health Care and Benefits Improvement
Act of 2020 provides the Secretary
authority to prescribe regulations that
establish the minimum amount of a
benefits or medical debt that the
Secretary will report to the CRA. This
proposed change will establish the
methodology for determining a
minimum threshold for debts reported
to CRA.
DATES: Comments must be received on
or before September 21, 2021.
ADDRESSES: Comments may be
submitted through www.regulations.gov
or mailed to Debt Management Center,
Office of Management, 189, 1 Federal
Drive, Suite 4500, Fort Snelling, MN
55111. Comments should indicate that
they are submitted in response to ‘‘RIN
2900–AR20—Threshold for Reporting
VA Debts to Consumer Reporting
Agencies. Comments received will be
SUMMARY:
E:\FR\FM\23JYP1.SGM
23JYP1
Federal Register / Vol. 86, No. 139 / Friday, July 23, 2021 / Proposed Rules
available at regulations.gov for public
viewing, inspection, or copies.
FOR FURTHER INFORMATION CONTACT:
Jason Hoge, Director of Operations, Debt
Management Center, Office of
Management, 189, 1 Federal Drive, Suite
4500, Fort Snelling, MN 55111, (612)
725–4337. (This is not a toll-free
telephone number.)
SUPPLEMENTARY INFORMATION:
Summary of Proposed Regulatory
Changes
We propose to amend VA’s regulation
that governs reporting of delinquent
debts to CRA. This rulemaking would
update the regulation to comply with
section 2007 of Public Law 116–315, the
Johnny Isakson and David P. Roe, M.D.
Veterans Health Care and Benefits
Improvement Act of 2020. Section 2007
amends chapter 53 of title 38, United
States Code by adding section 5320 as
follows: ‘‘The Secretary shall prescribe
regulations that establish the minimum
amount of a claim or debt, arising from
a benefit administered by the Under
Secretary for Benefits or Under
Secretary for Health, that the Secretary
will report to a consumer reporting
agency under section 3711 of title 31.’’
This proposed amendment will
establish the methodology for
determining the minimum threshold for
reporting certain VA debts to CRA. It
will also exclude from the minimum
threshold those debts in which there is
an indication of fraud,
misrepresentation, or bad faith on the
part of the debtor.
khammond on DSKJM1Z7X2PROD with PROPOSALS
Background on Governing Statutes
The Debt Collection Improvement Act
of 1996 (DCIA), in part, mandated
agencies to report delinquent debts to
CRA. 31 U.S.C. 3711(e); Sec. 31001(k),
Public Law 104–134, 110 Stat. 1321.
The purpose of the DCIA includes
maximizing collection of delinquent
debts by ensuring quick action to
recover debts, use of appropriate
collection tools, and minimizing the
costs of debt collection. Sec. 31001(b),
Public Law 104–134.
Section 5320 of title 38, United States
Code, authorizes VA to ‘‘establish the
minimum amount of a claim or debt,
arising from a benefit administered by
the Under Secretary for Benefits or
Under Secretary for Health, that the
Secretary will report to a consumer
reporting agency under section 3711 of
title 31.’’ The intent of section 5320 is
to lessen negative impact of CRA reports
on Veterans.
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16:27 Jul 22, 2021
Jkt 253001
Introduction to Proposed Regulatory
Changes
As explained in more detail below,
we propose to amend 38 CFR 1.916 to
comply with 38 U.S.C. 5320, to establish
a minimum threshold for reporting
debts to CRA.
In accordance with 31 U.S.C. 3711(e),
the VA Debt Management Center (DMC)
is responsible for reporting delinquent
debts to CRA. Prior to January 5, 2021,
DMC reported an average of 5,000
delinquent Veteran accounts monthly.
DMC regularly receives complaints from
Veterans whose accounts have been
reported to CRA. Common complaints
from Veterans include: Loss of security
clearance, inability to obtain approval
for home loans or home refinancing, and
difficulty securing rental housing.
This proposed amendment recognizes
that the debts described in 38 U.S.C.
5320 are fundamentally different from
consumer debt. Debts arising from a
benefit administered by the Under
Secretary for Benefits or the Under
Secretary for Health may result from a
variety of scenarios, including
overpayments that are not the fault of
the Veteran.
Section 5320 authorizes the Secretary
to establish a minimum threshold that
will ultimately reduce the number of
debts that will be reported to CRA. This
will, in turn, decrease the number of
Veterans negatively impacted by these
reports. The VA’s mission is to ‘‘care for
those who shall have borne the battle
and for their families and survivors.’’
Negative credit reports may cause
housing insecurity or job loss, and this
result is inconsistent with VA’s mission.
38 CFR 1.916— Disclosure of Debt
Information to Consumer Reporting
Agencies (CRA)
We propose to amend 38 CFR 1.916,
which sets forth the requirements for
reporting delinquent debts to CRA, by
inserting subparagraphs (c)(1) through
(3) to provide the methodology used by
the Secretary to establish the minimum
threshold. This section would also
clarify that the minimum threshold
applies only to a debt of an individual
that arises from a benefit administered
by the Under Secretary for Benefits or
Under Secretary for Health.
We propose subparagraphs (c)(1)
through (3) state:
1. The Secretary has established a
minimum threshold for a debt, arising
from a benefit administered by the
Under Secretary for Benefits or Under
Secretary for Health, that the Secretary
will report to a consumer reporting
agency under section 3711 of title 31.
(2) VA will only report those debts
that meet the following standards:
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Sfmt 4702
38959
(i) The debt is classified as currently
not collectible. For purposes of this
paragraph, the debt is currently not
collectible if VA has exhausted available
collection efforts, including, as
appropriate, referrals for administrative
offset and enforced collection;
(ii) The debt is not owed by an
individual who is determined by VA to
be catastrophically disabled or has
reported to VA a gross household
income below the applicable
geographically adjusted income limits
that would entitle a VA beneficiary to
cost-free health care, medications and/
or beneficiary travel; and
(iii) The outstanding debt amount is
over $25, or such higher amount VA
may from time to time prescribe, in
accordance with section 1.921 of this
part.
(3) The minimum threshold set forth
in this paragraph will not apply if there
is an indication of fraud,
misrepresentation, or bad faith on the
part of the individual in connection
with the debt.
Executive Orders 12866 and 13563
Executive Orders 12866 and 13563
direct agencies to assess the costs and
benefits of available regulatory
alternatives and, when regulation is
necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety
effects, and other advantages;
distributive impacts; and equity).
Executive Order 13563 (Improving
Regulation and Regulatory Review)
emphasizes the importance of
quantifying both costs and benefits,
reducing costs, harmonizing rules, and
promoting flexibility. The Office of
Information and Regulatory Affairs has
determined that this rule is not a
significant regulatory action under
Executive Order 12866. The Regulatory
Impact Analysis associated with this
rulemaking can be found as a
supporting document at
www.regulations.gov.
Regulatory Flexibility Act
The Secretary hereby certifies that
this proposed 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). The
regulations established by this
rulemaking do not impose burdens or
otherwise regulate the activities of any
small entities outside of VA. Therefore,
pursuant to 5 U.S.C. 605(b), the initial
and final regulatory flexibility analysis
requirements of 5 U.S.C. 603 and 604 do
not apply.
E:\FR\FM\23JYP1.SGM
23JYP1
38960
Federal Register / Vol. 86, No. 139 / Friday, July 23, 2021 / Proposed Rules
Unfunded Mandates
§ 1.916
The Unfunded Mandates Reform Act
of 1995 requires, at 2 U.S.C. 1532, that
agencies prepare an assessment of
anticipated costs and benefits before
issuing any rule that may result in the
expenditure by State, local, and tribal
governments, in the aggregate, or by the
private sector, of $100 million or more
(adjusted annually for inflation) in any
one year. This proposed rule will 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 of 1995 (44 U.S.C. 3501–
3521).
Catalog of Federal Domestic Assistance
There are no Catalog of Federal
Domestic Assistance numbers and titles
for this rule.
List of Subjects in 38 CFR Part 1
Administrative practice and
procedure, Archives and records,
Cemeteries, Claims, Courts, Crime,
Flags, Freedom of information,
Government contracts, Government
employees, Government property,
Infants and children, Inventions and
patents, Parking, Penalties, Postal
Service, Privacy, Reporting and
recordkeeping requirements, Seals and
insignia, Security measures, Wages.
Signing Authority
Denis McDonough, Secretary of
Veterans Affairs approved this
document on June 23, 2021 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.
khammond on DSKJM1Z7X2PROD with PROPOSALS
Luvenia Potts,
Regulations Development Coordinator, Office
of Regulation Policy & Management, Office
of the Secretary, Department of Veterans
Affairs.
For the reasons stated in the
preamble, the Department of Veterans
Affairs proposes to amend 38 CFR part
1 as set forth below:
PART 1—GENERAL PROVISIONS
1. The authority citation for part 1 is
revised to read as follows:
■
Authority: 31 U.S.C. 3711(e); 38 U.S.C.
501, 5701(g) and (i); 38 U.S.C. 5320.
VerDate Sep<11>2014
16:27 Jul 22, 2021
Jkt 253001
[Amended]
2. Amend § 1.916 by revising
paragraph (c) to read as follows:
*
*
*
*
*
(c) Subject to the conditions set forth
in this paragraph and paragraph (d) of
this section, information concerning
individuals may be disclosed to
consumer reporting agencies for
inclusion in consumer reports
pertaining to the individual, or for the
purpose of locating the individual.
Disclosure of the fact of indebtedness
will be made if the individual fails to
respond in accordance with written
demands for repayment, or refuses to
repay a debt to the United States. In
making any disclosure under this
section, VA will provide consumer
reporting agencies with sufficient
information to identify the individual,
including the individual’s name,
address, if known, date of birth, VA file
number, and Social Security number.
(1) The Secretary has established a
minimum threshold for a debt, arising
from a benefit administered by the
Under Secretary for Benefits or Under
Secretary for Health, that the Secretary
will report to a consumer reporting
agency under section 3711 of title 31.
(2) VA will only report those debts
that meet the following standards:
(i) The debt is classified as currently
not collectible. For purposes of this
paragraph, the debt is currently not
collectible if VA has exhausted available
collection efforts, including, as
appropriate, referrals for administrative
offset and enforced collection;
(ii) The debt is not owed by an
individual who is determined by VA to
be catastrophically disabled or has
reported to VA a gross household
income below the applicable
geographically adjusted income limits
that would entitle a VA beneficiary to
cost-free health care, medications and/
or beneficiary travel; and
(iii) The outstanding debt amount is
over $25, or such higher amount VA
may from time to time prescribe, in
accordance with section 1.921 of this
part.
(3) The minimum threshold set forth
in this paragraph will not apply if there
is an indication of fraud,
misrepresentation, or bad faith on the
part of the individual in connection
with the debt.
*
*
*
*
*
[FR Doc. 2021–15490 Filed 7–22–21; 8:45 am]
BILLING CODE 8320–01–P
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Frm 00020
Fmt 4702
Sfmt 4702
COMMITTEE FOR PURCHASE FROM
PEOPLE WHO ARE BLIND OR
SEVERELY DISABLED
41 CFR Parts 51–1, 51–2, 51–3, 51–4,
51–5, 51–6, 51–7, 51–8, 51–9, and 51–
10
RIN 3037–AA13
Provisions Relating to Public
Contracts
Committee for Purchase From
People Who Are Blind or Severely
Disabled.
ACTION: Proposed rule with request for
comments.
AGENCY:
This proposed rule would
amend the Committee for Purchase
From People Who Are Blind or Severely
Disabled’s (Committee) regulations to
address outdated information and
proposes correction and clarifications
within the chapter or with the JavitsWagner-O’Day Act or the AbilityOne
Program. This regulation was originally
published in 1991 and changes in
Committee practices and concepts have
occurred which requires updates to the
CFR. These updates merely are
administrative in nature.
DATES: Comments should be submitted
on or before August 23, 2021.
ADDRESSES: You may submit your
comments, identified by ‘‘RIN 3037–
AA13’’ by any of the following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
Comments received will be posted
without change to www.regulations.gov
including any personal information
provided. To confirm receipt of your
comment(s) please check
www.regulations.gov approximately two
to three days after submission to verify
posting (except allow for 30 days for
posting of comments submitted by
mail).
SUMMARY:
FOR FURTHER INFORMATION CONTACT:
Shelly Hammond, shammond@
abilityone.gov, (571) 457–9468.
SUPPLEMENTARY INFORMATION:
I. Background
The Committee’s last rule making
administrative changes was published
in the Federal Register at June 2, 2000,
at 65 FR 35286.
The Committee seeks to provide the
following administrative changes based
on changes to the Office of the Federal
Register’s language and processes. The
Commission seeks to remove mailing
address and add email address for the
Committee and Central Nonprofit
Agencies.
E:\FR\FM\23JYP1.SGM
23JYP1
]]>Agencies
[Federal Register Volume 86, Number 139 (Friday, July 23, 2021)]
[Proposed Rules]
[Pages 38958-38960]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-15490]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF VETERANS AFFAIRS
38 CFR Part 1
RIN 2900-AR20
Threshold for Reporting VA Debts to Consumer Reporting Agencies
AGENCY: Department of Veterans Affairs.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Department of Veterans Affairs (VA) proposes to amend its
regulations around the conditions by which VA benefits debts or medical
debts are reported to consumer reporting agencies (CRA). The Johnny
Isakson and David P. Roe, M.D. Veterans Health Care and Benefits
Improvement Act of 2020 provides the Secretary authority to prescribe
regulations that establish the minimum amount of a benefits or medical
debt that the Secretary will report to the CRA. This proposed change
will establish the methodology for determining a minimum threshold for
debts reported to CRA.
DATES: Comments must be received on or before September 21, 2021.
ADDRESSES: Comments may be submitted through www.regulations.gov or
mailed to Debt Management Center, Office of Management, 189, 1 Federal
Drive, Suite 4500, Fort Snelling, MN 55111. Comments should indicate
that they are submitted in response to ``RIN 2900-AR20--Threshold for
Reporting VA Debts to Consumer Reporting Agencies. Comments received
will be
[[Page 38959]]
available at regulations.gov for public viewing, inspection, or copies.
FOR FURTHER INFORMATION CONTACT: Jason Hoge, Director of Operations,
Debt Management Center, Office of Management, 189, 1 Federal Drive,
Suite 4500, Fort Snelling, MN 55111, (612) 725-4337. (This is not a
toll-free telephone number.)
SUPPLEMENTARY INFORMATION:
Summary of Proposed Regulatory Changes
We propose to amend VA's regulation that governs reporting of
delinquent debts to CRA. This rulemaking would update the regulation to
comply with section 2007 of Public Law 116-315, the Johnny Isakson and
David P. Roe, M.D. Veterans Health Care and Benefits Improvement Act of
2020. Section 2007 amends chapter 53 of title 38, United States Code by
adding section 5320 as follows: ``The Secretary shall prescribe
regulations that establish the minimum amount of a claim or debt,
arising from a benefit administered by the Under Secretary for Benefits
or Under Secretary for Health, that the Secretary will report to a
consumer reporting agency under section 3711 of title 31.''
This proposed amendment will establish the methodology for
determining the minimum threshold for reporting certain VA debts to
CRA. It will also exclude from the minimum threshold those debts in
which there is an indication of fraud, misrepresentation, or bad faith
on the part of the debtor.
Background on Governing Statutes
The Debt Collection Improvement Act of 1996 (DCIA), in part,
mandated agencies to report delinquent debts to CRA. 31 U.S.C. 3711(e);
Sec. 31001(k), Public Law 104-134, 110 Stat. 1321. The purpose of the
DCIA includes maximizing collection of delinquent debts by ensuring
quick action to recover debts, use of appropriate collection tools, and
minimizing the costs of debt collection. Sec. 31001(b), Public Law 104-
134.
Section 5320 of title 38, United States Code, authorizes VA to
``establish the minimum amount of a claim or debt, arising from a
benefit administered by the Under Secretary for Benefits or Under
Secretary for Health, that the Secretary will report to a consumer
reporting agency under section 3711 of title 31.'' The intent of
section 5320 is to lessen negative impact of CRA reports on Veterans.
Introduction to Proposed Regulatory Changes
As explained in more detail below, we propose to amend 38 CFR 1.916
to comply with 38 U.S.C. 5320, to establish a minimum threshold for
reporting debts to CRA.
In accordance with 31 U.S.C. 3711(e), the VA Debt Management Center
(DMC) is responsible for reporting delinquent debts to CRA. Prior to
January 5, 2021, DMC reported an average of 5,000 delinquent Veteran
accounts monthly. DMC regularly receives complaints from Veterans whose
accounts have been reported to CRA. Common complaints from Veterans
include: Loss of security clearance, inability to obtain approval for
home loans or home refinancing, and difficulty securing rental housing.
This proposed amendment recognizes that the debts described in 38
U.S.C. 5320 are fundamentally different from consumer debt. Debts
arising from a benefit administered by the Under Secretary for Benefits
or the Under Secretary for Health may result from a variety of
scenarios, including overpayments that are not the fault of the
Veteran.
Section 5320 authorizes the Secretary to establish a minimum
threshold that will ultimately reduce the number of debts that will be
reported to CRA. This will, in turn, decrease the number of Veterans
negatively impacted by these reports. The VA's mission is to ``care for
those who shall have borne the battle and for their families and
survivors.'' Negative credit reports may cause housing insecurity or
job loss, and this result is inconsistent with VA's mission.
38 CFR 1.916-- Disclosure of Debt Information to Consumer Reporting
Agencies (CRA)
We propose to amend 38 CFR 1.916, which sets forth the requirements
for reporting delinquent debts to CRA, by inserting subparagraphs
(c)(1) through (3) to provide the methodology used by the Secretary to
establish the minimum threshold. This section would also clarify that
the minimum threshold applies only to a debt of an individual that
arises from a benefit administered by the Under Secretary for Benefits
or Under Secretary for Health.
We propose subparagraphs (c)(1) through (3) state:
1. The Secretary has established a minimum threshold for a debt,
arising from a benefit administered by the Under Secretary for Benefits
or Under Secretary for Health, that the Secretary will report to a
consumer reporting agency under section 3711 of title 31.
(2) VA will only report those debts that meet the following
standards:
(i) The debt is classified as currently not collectible. For
purposes of this paragraph, the debt is currently not collectible if VA
has exhausted available collection efforts, including, as appropriate,
referrals for administrative offset and enforced collection;
(ii) The debt is not owed by an individual who is determined by VA
to be catastrophically disabled or has reported to VA a gross household
income below the applicable geographically adjusted income limits that
would entitle a VA beneficiary to cost-free health care, medications
and/or beneficiary travel; and
(iii) The outstanding debt amount is over $25, or such higher
amount VA may from time to time prescribe, in accordance with section
1.921 of this part.
(3) The minimum threshold set forth in this paragraph will not
apply if there is an indication of fraud, misrepresentation, or bad
faith on the part of the individual in connection with the debt.
Executive Orders 12866 and 13563
Executive Orders 12866 and 13563 direct agencies to assess the
costs and benefits of available regulatory alternatives and, when
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, and other advantages; distributive impacts;
and equity). Executive Order 13563 (Improving Regulation and Regulatory
Review) emphasizes the importance of quantifying both costs and
benefits, reducing costs, harmonizing rules, and promoting flexibility.
The Office of Information and Regulatory Affairs has determined that
this rule is not a significant regulatory action under Executive Order
12866. The Regulatory Impact Analysis associated with this rulemaking
can be found as a supporting document at www.regulations.gov.
Regulatory Flexibility Act
The Secretary hereby certifies that this proposed 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). The regulations established by this rulemaking do not
impose burdens or otherwise regulate the activities of any small
entities outside of VA. Therefore, pursuant to 5 U.S.C. 605(b), the
initial and final regulatory flexibility analysis requirements of 5
U.S.C. 603 and 604 do not apply.
[[Page 38960]]
Unfunded Mandates
The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C.
1532, that agencies prepare an assessment of anticipated costs and
benefits before issuing any rule that may result in the expenditure by
State, local, and tribal governments, in the aggregate, or by the
private sector, of $100 million or more (adjusted annually for
inflation) in any one year. This proposed rule will 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 of 1995 (44 U.S.C.
3501-3521).
Catalog of Federal Domestic Assistance
There are no Catalog of Federal Domestic Assistance numbers and
titles for this rule.
List of Subjects in 38 CFR Part 1
Administrative practice and procedure, Archives and records,
Cemeteries, Claims, Courts, Crime, Flags, Freedom of information,
Government contracts, Government employees, Government property,
Infants and children, Inventions and patents, Parking, Penalties,
Postal Service, Privacy, Reporting and recordkeeping requirements,
Seals and insignia, Security measures, Wages.
Signing Authority
Denis McDonough, Secretary of Veterans Affairs approved this
document on June 23, 2021 and authorized the undersigned to sign and
submit the document to the Office of the Federal Register for
publication electronically as an official document of the Department of
Veterans Affairs.
Luvenia Potts,
Regulations Development Coordinator, Office of Regulation Policy &
Management, Office of the Secretary, Department of Veterans Affairs.
For the reasons stated in the preamble, the Department of Veterans
Affairs proposes to amend 38 CFR part 1 as set forth below:
PART 1--GENERAL PROVISIONS
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1. The authority citation for part 1 is revised to read as follows:
Authority: 31 U.S.C. 3711(e); 38 U.S.C. 501, 5701(g) and (i); 38
U.S.C. 5320.
Sec. 1.916 [Amended]
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2. Amend Sec. 1.916 by revising paragraph (c) to read as follows:
* * * * *
(c) Subject to the conditions set forth in this paragraph and
paragraph (d) of this section, information concerning individuals may
be disclosed to consumer reporting agencies for inclusion in consumer
reports pertaining to the individual, or for the purpose of locating
the individual. Disclosure of the fact of indebtedness will be made if
the individual fails to respond in accordance with written demands for
repayment, or refuses to repay a debt to the United States. In making
any disclosure under this section, VA will provide consumer reporting
agencies with sufficient information to identify the individual,
including the individual's name, address, if known, date of birth, VA
file number, and Social Security number.
(1) The Secretary has established a minimum threshold for a debt,
arising from a benefit administered by the Under Secretary for Benefits
or Under Secretary for Health, that the Secretary will report to a
consumer reporting agency under section 3711 of title 31.
(2) VA will only report those debts that meet the following
standards:
(i) The debt is classified as currently not collectible. For
purposes of this paragraph, the debt is currently not collectible if VA
has exhausted available collection efforts, including, as appropriate,
referrals for administrative offset and enforced collection;
(ii) The debt is not owed by an individual who is determined by VA
to be catastrophically disabled or has reported to VA a gross household
income below the applicable geographically adjusted income limits that
would entitle a VA beneficiary to cost-free health care, medications
and/or beneficiary travel; and
(iii) The outstanding debt amount is over $25, or such higher
amount VA may from time to time prescribe, in accordance with section
1.921 of this part.
(3) The minimum threshold set forth in this paragraph will not
apply if there is an indication of fraud, misrepresentation, or bad
faith on the part of the individual in connection with the debt.
* * * * *
[FR Doc. 2021-15490 Filed 7-22-21; 8:45 am]
BILLING CODE 8320-01-P
