45596 Federal Register / Vol. 62, No. 167 / Thursday, August 28, 1997 / Proposed Rules

statements and the significance of the

appearance of warning statements on

certain juice products but not on others.

The agency intends to involve State

and local officials in its education

initiative because it is often the State or

local official who is in direct contact

with the farmer or juice processor. Thus,

State and local officials can play a

significant role in educating and

assisting juice manufacturers and

consumers in understanding the public

health concerns associated with

consumption of untreated juice

products and in developing measures to

reduce the risk.

To meet its educational objectives,

FDA intends to: (1) Enlist the aid of

State and local officials, industry

representatives, trade associations, and

consumer groups in coordinating

consumer and industry educational

outreach programs; (2) use FDA field

public affairs specialists to educate

consumers and health professionals

through lectures, meetings, and local

media spots; (3) use FDA’s home page

on the World Wide Web to alert

consumers to the potential hazard; (4)

hold public meetings to discuss the

issues raised in the impending

proposals as well as the educational

programs discussed in this document;

(5) distribute ‘‘Dear Consumer’’ letters to

targeted consumer groups; (6) use the

FDA CFSAN information line to relay

information to consumers and health

professionals about the public health

concern associated with untreated juice;

(7) distribute camera-ready English and

Spanish articles and English radio

scripts and video news releases to the

news media nationwide in September

1997 to coincide with the National Food

Safety Education Program and ‘‘Back to

School’’ program; and (8) distribute

letters and articles to State and local

officials.

V. Conclusion

As outlined in this document, FDA

has developed a proposed

comprehensive strategy to address the

public health concerns associated with

consumption of fresh juice and juice

products not specifically treated to

prevent or eliminate the presence of

pathogens. The agency invites comment

on the appropriateness of its strategy on

the guidance contained in this

document and on whether additional or

alternative regulatory or nonregulatory

measures are necessary to adequately

protect consumers. Comments

suggesting additional or alternative

measures should explain why such

measures are needed and suggestions on

how to implement the measure.

In addition, the agency solicits

comments on the specific wording of

the warning statement to ensure that the

final warning statement adequately

conveys to consumers the risk of illness

associated with consumption of the

juice product. Furthermore, the agency

solicits comments on whether to

include all or some fruit and vegetable

juice products that have not been

pasteurized or otherwise specifically

processed to prevent or eliminate the

presence of harmful bacteria in any

future proposal on HACCP or label

warning statements.

Because the details of this strategy

will be discussed more fully in any

future proposals, commenters may

choose to wait until that time to

respond. However, the agency will

consider comments received within 15

days of publication of this notice prior

to publication of any proposed rule.

Because of time constraints, the agency

may not be able to consider comments

received after this date, but these

comments will be considered as part of

the public rulemaking record associated

with any proposal.

VI. References

The following references have been

placed on display in the Dockets

Management Branch (address above)

and may be seen by interested persons

between 9 a.m. and 4 p.m., Monday

through Friday.

1. Besser, R. E., S. M. Lett, J. T. Weber, M.

P. Doyle, T. J. Barrett, J. G. Wells, and P. M.

Griffin, ‘‘An Outbreak of Diarrhea and

Hemolytic Uremic Syndrome from

Escherichia coli 0157:H7 in Fresh-pressed

Apple Cider,’’ Journal of the American

Medical Association, 269(17):2217:2220,

1993.

2. Centers for Disease Control and

Prevention, ‘‘Outbreak of Escherichia coli

0157:H7 Infections Associated with Drinking

Unpasteurized Commercial Apple Juice—

British Columbia, California, Colorado, and

Washington, October 1996,’’ Morbidity and

Mortality Weekly Report, 45(44):975, 1996.

3. Centers for Disease Control and

Prevention, ‘‘Outbreaks of Escherichia coli

0157:H7 Infection and Crytosporidiosis

Associated with Drinking Unpasteurized

Apple Cider—Connecticut and New York,

October 1996,’’ Morbidity and Mortality

Weekly Report, 46(1):4–8, 1997.

4. National Advisory Committee on

Microbiological Criteria for Foods—Fresh

Produce Subcommittee Proceedings,

December 16, 1996.

5. Centers for Disease Control, ‘‘Salmonella

typhimurium Outbreak Traced to a

Commercial Apple Cider—New Jersey,’’

Morbidity and Mortality Weekly Report,

24:87–88, 1975.

6. Millard, P. S., K. F. Gensheimer, D. G.

Addiss, D. M. Sosin, G. A. Beckett, A. HouckJankoski, and A. Hudson, ‘‘An Outbreak of

Crytosporidiosis from Fresh-pressed Apple

Cider,’’ Journal of the American Medical

Association, 272(20):1592–1596, 1994.

7. Centers for Disease Control and

Prevention, ‘‘Cholera Associated with

Imported Frozen Coconut Milk—Maryland,

1991,’’ Morbidity and Mortality Weekly

Report, 40(49):844–845, 1991.

8. Centers for Disease Control and

Prevention Memorandum from Kim A. Cook,

M.D. to Steve Thacker, M.D., October 1, 1995.

9. FDA Recall Data Memorandum, Dirk J.

Mouw to Raymond P. Mars, June 2, 1992.

10. FDA Recall Data Memorandum, M.

Anthony Abel to Ronald E. Joyce, March 21,

1994.

11. Memorandum of Telephone

Conversation between Debra Street, Ph.D.,

FDA, and P. Walker, Washington State

Department of Health, January 15, 1997.

12. Memorandum of Telephone

Conversation between Debra Street, Ph.D.,

FDA, and Dr. K. Hendricks, Texas State

Department of Health, January 16, 1997.

13. FDA Memorandum to File, B. Timbo,

Ph.D., July 14, 1997.

14. FDA Memorandum, Alan S. Levy,

Ph.D. to Kenneth Falci, Ph.D., June 26, 1997.

VII. Comments

Interested persons may submit to the

Dockets Management Branch (address

above) written comments regarding this

document at any time. As noted above,

the agency will consider comments

received by September 12, 1997, prior to

publication of any proposed rule. Two

copies of any comments are to be

submitted, except that individuals may

submit one copy. Comments are to be

identified with the docket number

found in brackets in the heading of this

document. Received comments may be

seen in the office above between 9 a.m.

and 4 p.m., Monday through Friday.

Dated: August 22, 1997.

William B. Schultz,

Deputy Commissioner for Policy.

[FR Doc. 97–22977 Filed 8–25–97; 4:44 am]

BILLING CODE 4160–01–F

DEPARTMENT OF DEFENSE

DEPARTMENT OF TRANSPORTATION

Coast Guard

DEPARTMENT OF VETERANS

AFFAIRS

38 CFR Part 21

RIN 2900–AF85

Veterans Education: Suspension and

Discontinuance of Payments

AGENCIES: Department of Defense,

Department of Transportation (Coast

Guard), and Department of Veterans

Affairs.

ACTION: Proposed rule.
Federal Register / Vol. 62, No. 167 / Thursday, August 28, 1997 / Proposed Rules 45597

SUMMARY: This document proposes to

make changes to the education

regulations. With respect to

determinations concerning suspension

or discontinuance of payments of

educational assistance when

educational institutions (including

training establishments) fail to meet

requirements, it is proposed to require

that recommendations first be obtained

from Committees on Educational

Allowances, to establish procedural and

composition requirements for the

Committees, and to establish hearing

rules for the Committees. In addition, it

is proposed that appeals of a decision

concerning such suspension or

discontinuance of payments of

educational assistance be determined by

the Director of the Education Service

upon request by the affected educational

institution based on the evidence of

record. The proposed changes would

apply to the following educational

assistance programs: Montgomery GI

Bill—Active Duty, Montgomery GI

Bill—Selected Reserve, Survivors’ and

Dependents’ Educational Assistance, the

Post-Vietnam Era Veterans’ Educational

Assistance Program, and the

Educational Assistance Pilot Program.

The proposed changes appear to be

appropriate to ensure proper

decisionmaking. In addition,

nonsubstantive changes would be made

for the purpose of clarification.

DATES: Comments must be received on

or before October 27, 1997.

ADDRESSES: Mail or hand deliver written

comments to: Director, Office of

Regulations Management (02D),

Department of Veterans Affairs, 810

Vermont Ave., NW, Room 1154,

Washington, DC 20420. Comments

should indicate that they are submitted

in response to ‘‘RIN 2900-AF85.’’ All

written comments will be available for

public inspection at the above address

in the Office of Regulations

Management, Room 1158, between the

hours of 8:00 a.m. and 4:30 p.m.,

Monday through Friday (except

holidays).

FOR FURTHER INFORMATION CONTACT: June

C. Schaeffer, Assistant Director for

Policy and Program Administration,

Education Service, Veterans Benefits

Administration, Department of Veterans

Affairs, (202) 273–7187.

SUPPLEMENTARY INFORMATION: This

document proposes to make changes to

the education regulations in 38 CFR part

21. More specifically, it is proposed to

make changes to the regulations

concerning suspension or

discontinuance of payments of

educational assistance when

educational institutions (including

training establishments) fail to meet

requirements. The proposed changes

would apply to the following

educational assistance programs:

Montgomery GI Bill—Active Duty,

Montgomery GI Bill—Selected Reserve,

Survivors’ and Dependents’ Educational

Assistance, the Post-Vietnam Era

Veterans’ Educational Assistance

Program (VEAP), and the Educational

Assistance Pilot Program. The authority

for this proposal is contained in 10

U.S.C. 2147 note and 16136(b); and 38

U.S.C. 501, 3034(a), 3241(a), and 3690.

Under these programs, veterans,

reservists, servicemembers, and eligible

persons (as statutorily identified for

each program) receive educational

assistance from the Department of

Veterans Affairs (VA) while attending

programs of education. To be eligible for

assistance, individuals must pursue

courses approved by a State approving

agency. Educational institutions are

required to inform VA of certain

occurrences relating to these programs

(e.g., when VA-supported students

discontinue or reduce training, change

programs, or fail to progress

satisfactorily), and to meet a number of

other legal requirements. When an

educational institution has failed to

meet such requirements and the State

approving agency has not withdrawn

course approval, the Director of the VA

facility of jurisdiction may suspend or

discontinue payment of educational

assistance.

It is not proposed to change the

requirement in the regulations that

failure by an educational institution to

meet requirements pertaining to the

percentage of students receiving VA

educational benefits could result in

discontinuance of educational

assistance to new students based on

undisputed information submitted by

the educational institution. (See 38 CFR

21.4201.) However, when an

educational institution otherwise fails to

meet requirements, it is proposed that,

prior to making determinations

concerning suspension or

discontinuance of educational

assistance, the Director of the VA

facility of jurisdiction will refer the

matter to the VA facility’s Committee on

Educational Allowances and receive

recommendations therefrom. This

document also proposes to require that

such a referral be in writing, contain the

reasons for the referral, and be posted in

the VA facility of jurisdiction. We

believe that this would help ensure

appropriate decisionmaking.

Currently, a Committee on

Educational Allowances must be

composed of three individuals. It is

proposed to require that at least one of

the individuals be a VA employee

familiar with the adjudication of claims

for benefits administered by the

Veterans Benefits Administration. VA

believes that this is warranted to ensure

that the committee has sufficient

expertise for appropriate

recommendations.

This document also proposes to

establish a comprehensive set of hearing

rules for use by the respective

Committees on Educational Allowances.

This would help ensure uniformity and

fairness with respect to

recommendations made by the

committees.

The current regulations provide for an

automatic de novo review in VA Central

Office by the Central Office Education

Training and Review Panel of any

decision of the Director of the VA

facility of jurisdiction if the committee’s

recommendation to the Director is not

unanimous or if the Director disagrees

with the recommendation of the

committee. It is proposed that the

review be based on the evidence of

record rather than constituting a de

novo review. It is also proposed that the

review be conducted by the Director of

the Education Service rather than by the

Central Office Education Training and

Review Panel. Further, instead of

providing for an automatic review, it is

proposed that such a review be

provided only upon request by the

affected educational institution. This

appears to provide adequate fairness for

these circumstances and will help to

ensure efficiency and uniformity in

decisionmaking.

Also, nonsubstantive changes would

be made for the purpose of clarification.

The Department of Defense (DOD) and

VA are jointly issuing this proposal

insofar as it relates to VEAP. This

program is funded by DOD and

administered by VA. DOD, the

Department of Transportation (Coast

Guard), and VA are jointly issuing this

proposal insofar as it relates to the

Montgomery GI Bill—Selected Reserve

program. This program is funded by

DOD and the Coast Guard, and is

administered by VA. The remainder of

this proposal is issued solely by VA.

The Secretary of Defense, the

Commandant of the Coast Guard, and

the Secretary of Veterans Affairs, within

their respective jurisdictions, hereby

certify that the adoption of the proposed

provisions 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. Although it is

possible that a small-entity school could

be affected by this rulemaking, the

number of individuals affected at the
45598 Federal Register / Vol. 62, No. 167 / Thursday, August 28, 1997 / Proposed Rules

school would in all likelihood be an

insignificant portion of the student

body. Also, experience has shown that

only one or two schools per year would

be affected by the provisions of this

rulemaking concerning suspensions and

discontinuance of payments. Therefore,

pursuant to 5 U.S.C. 605(b), the

proposed provisions are exempt from

the initial and final regulatory flexibility

analyses requirements of sections 603

and 604.

The Catalog of Federal Domestic

Assistance numbers for programs

affected by this proposal are 64.117,

64.120, and 64.124. There is no Catalog

of Federal Domestic Assistance number

for the Montgomery GI Bill—Selected

Reserve program.

List of Subjects in 38 CFR Part 21

Administrative practice and

procedure, Armed forces, Civil rights,

Claims, Colleges and universities,

Conflict of interests, Defense

Department, Education, Employment,

Grant programs—education, Grant

programs—veterans, Health care, Loan

programs—education, Loan programs—

veterans, Manpower training programs,

Reporting and recordkeeping

requirements, Schools, Travel and

transportation expenses, Veterans,

Vocational education, Vocational

rehabilitation.

Approved: August 21, 1997.

Hershel W. Gober,

Acting Secretary of Veterans Affairs.

Approved: May 8, 1997.

Normand G. Lezy,

Lieutenant General, USAF Deputy Assistant

Secretary (Military Personnel Policy).

Approved: April 24, 1997.

W.C. Donnell,

RADM, USCG Assistant Commandant for

Human Resources.

For the reasons set out in the

preamble, 38 CFR part 21, subparts D,

G, K, and L, is proposed to be amended

as set forth below.

PART 21—VOCATIONAL

REHABILITATION AND EDUCATION

Subpart D—Administration of

Educational Assistance Programs

1. The authority citation for part 21,

subpart D is revised to read as follows:

Authority: 10 U.S.C. 2147 note, ch. 1606;

38 U.S.C. 501(a), chs. 30, 32, 34, 35, 36,

unless otherwise noted.

§ 21.4133 [Removed]

2. Section 21.4133 is removed.

§ 21.4134 [Removed]

3. Section 21.4134 is removed.

4. In § 21.4135, paragraph (f) is

revised; introductory text is added to

paragraph (j); paragraph (j)(1) is revised;

the heading for paragraph (k) is revised;

introductory text is added to paragraph

(k); and paragraph (k)(1) is revised, to

read as follows:

§ 21.4135 Discontinuance dates.

* * * * *

(f) Discontinued by VA (§§ 21.4215,

21.4216). If VA discontinues payments

of educational assistance as provided by

§§ 21.4215(d) and 21.4216, the effective

date of discontinuance will be as

follows:

(1) The date on which payments first

were suspended by the Director of a VA

facility as provided in § 21.4210, if the

discontinuance were preceded by such

a suspension.

(2) End of the month in which the

decision to discontinue is effective

pursuant to § 21.4215(d), if the Director

of a VA facility did not suspend

payments prior to the discontinuance.

(Authority: 38 U.S.C. 3690)

* * * * *

(j) Disapproval by State approving

agency (§ 21.4259(a)). If a State

approving agency disapproves a course,

the date of discontinuance of payments

to those receiving educational assistance

while enrolled in the course will be as

follows:

(1) The date on which payments first

were suspended by the Director of a VA

facility as provided in § 21.4210, if

disapproval were preceded by such a

suspension.

* * * * *

(k) Disapproval by Department of

Veterans Affairs (§§ 21.4215,

21.4259(c)). If VA disapproves a course,

the date of discontinuance of payments

to those receiving educational assistance

while enrolled in the course will be as

follows:

(1) Date on which payments first were

suspended by the Director of a VA

facility as provided in § 21.4210, if

disapproval were preceded by such a

suspension.

* * * * *

§ 21.4146 [Amended]

5. Section 21.4146(e) is amended by

removing ‘‘§§ 21.4207 and

21.4202(b)(4)’’ and adding, in its place,

‘‘§§ 21.4210(g) and 21.4212’’.

§ 21.4152 [Amended]

6. Section 21.4152(b)(2) is amended

by removing ‘‘§ 21.4202’’ and adding, in

its place, ‘‘§ 21.4210(d)’’.

§ 21.4202 [Amended]

7. In § 21.4202, paragraphs (a) and (b)

are removed and reserved.

§ 21.4207 [Removed]

8. Section 21.4207 is removed.

§ 21.4208 [Removed]

9. Section 21.4208 is removed.

10. Section 21.4210 is added to read

as follows:

§ 21.4210 Suspension and discontinuance

of educational assistance payments and of

enrollments or reenrollments for pursuit of

approved courses.

(a) Overview. (1) VA may pay

educational assistance to an individual

eligible for such assistance under 10

U.S.C. chapter 1606, or 38 U.S.C.

chapter 30, 32, 35, or 36, only if the

individual is pursuing a course

approved in accordance with the

provisions of 38 U.S.C. chapter 36. In

general, courses are approved for this

purpose by a State approving agency

designated to do so (or by VA in some

instances). Notwithstanding such

approval, however, VA, as provided in

paragraphs (b), (c), and (d) of this

section, may suspend, discontinue, or

deny payment of benefits to any or all

otherwise eligible individuals for

pursuit of courses or training approved

under 38 U.S.C. chapter 36.

(2) For the purposes of this section

and the purposes of §§ 21.4211 through

21.4216, except as otherwise expressly

stated to the contrary—

(i) The term course includes an

apprenticeship or other on-job training

program;

(ii) The term educational institution

includes a training establishment; and

(iii) Reference to action suspending,

discontinuing, or otherwise denying

enrollment or reenrollment means such

action with respect to providing

educational assistance under the

chapters listed in paragraph (a)(1) of this

section. (Authority: 10 U.S.C. 16136(b);

38 U.S.C. 3034(a), 3241(a), 3452, 3671,

3690)

(b) Denial of payment in individual

cases. VA may deny payment of

educational assistance to a specific

individual for pursuit of a course or

courses if, following an examination of

the individual’s case, VA has credible

evidence affecting that individual that—

(1) The course fails to meet any of the

requirements of 10 U.S.C. chapter 1606,

or 38 U.S.C. chapter 30, 32, 34, 35, or

36; or

(2) The educational institution

offering the individual’s course has

violated any of those requirements of

law.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C.

3034(a), 3241(a), 3690(b)(1), 3690(b)(2))

(c) Notice in individual cases. Except

as provided in paragraph (e) of this

section, when VA denies payment of
Federal Register / Vol. 62, No. 167 / Thursday, August 28, 1997 / Proposed Rules 45599

educational assistance to an individual

under paragraph (b) of this section, VA

will provide concurrent written notice

to the individual. The notice shall

state—

(1) The adverse action;

(2) The reasons for the action; and

(3) The individual’s right to an

opportunity to be heard thereon in

accordance with part 19 of this title.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C.

3034(a), 3241(a), 3690)

(d) Actions affecting groups. (1) The

Director of the VA facility of jurisdiction

may suspend payments of educational

assistance to all veterans,

servicemembers, reservists, or eligible

persons already enrolled in a course,

and may disapprove all further

enrollments or reenrollments of

individuals seeking VA educational

assistance for pursuit of the course. The

decision to take such action, except as

provided in paragraph (d)(2) of this

section, must be based on evidence of a

substantial pattern of veterans,

servicemembers, reservists, or eligible

persons enrolled in the course receiving

educational assistance to which they are

not entitled because:

(i) One or more of the course approval

requirements of 38 U.S.C. chapter 36 are

not met, including the course approval

requirements specified in §§ 21.4253,

21.4254, 21.4261, 21.4262, 21.4263, and

21.4264; or

(ii) The educational institution

offering the course has violated one or

more of the recordkeeping or reporting

requirements of 10 U.S.C. chapter 1606,

or of 38 U.S.C. chapters 30, 32, 34, 35,

and 36. These violations may include,

but are not limited to, the following:

(A) Willful and knowing submission

of false reports or certifications

concerning students or courses of

education;

(B) Failure to report to VA a veteran’s,

servicemember’s, reservist’s, or eligible

person’s reduction, discontinuance, or

termination of education or training; or

(C) Submission of improper or

incorrect reports in such number,

manner, or period of time as to indicate

negligence on its part, including failure

to maintain an adequate reporting or

recordkeeping system.

(2) The Director also may make a

decision to take the action described in

paragraph (d)(1) of this section when the

Director has evidence that one or more

prohibited assignments of benefits have

occurred at an educational institution as

a result of that educational institution’s

policy. This decision may be made

regardless of whether there is a

substantial pattern of erroneous

payments at the educational institution.

See § 21.4146.

(3) The Director may disapprove the

enrollment of all individuals not already

enrolled in an educational institution

(which for the purposes of this

paragraph does not include a training

establishment) when the Director finds

that the educational institution:

(i) Has charged or received from

veterans, servicemembers, reservists, or

eligible persons an amount for tuition

and fees in excess of the amount

similarly circumstanced nonveterans are

required to pay for the same course; or

(ii) Has instituted a policy or practice

with respect to the payment of tuition,

fees, or other charges that substantially

denies to veterans, servicemembers,

reservists, or eligible persons the

benefits of advance payment of

educational assistance authorized to

such individuals under §§ 21.4138(d),

21.7140(a), and 21.7640(d); or

(iii) Has used erroneous, deceptive, or

misleading practices as set forth in

§ 21.4252(h).

(Authority: 10 U.S.C. 16136(b); 38 U.S.C.

3034(a), 3241(a), 3680A(d), 3684, 3685, 3690,

3696, 5301)

(e) Actions that must accompany a

mass suspension of educational

assistance payments or suspension of

approval of enrollments and

reenrollments in a course or educational

institution. (1) The Director of the VA

facility of jurisdiction may suspend

payment of educational assistance and

may suspend approval of new

enrollments and reenrollments as

provided in paragraph (d) of this

section, only after:

(i) The Director notifies in writing the

State approving agency concerned and

the educational institution of any failure

to meet the approval requirements and

any violation of recordkeeping or

reporting requirements; and

(ii) The educational institution—

(A) Refuses to take corrective action;

or

(B) Does not take corrective action

within 60 days (or 90 days if permitted

by the Director).

(2) Not less than 30 days before the

Director acts to make a mass suspension

of payments of educational assistance

and/or suspend approval of new

enrollments and reenrollments, the

Director will, to the maximum extent

feasible, provide written notice to each

veteran, servicemember, reservist, and

eligible person enrolled in the affected

courses. The notice will:

(i) State the Director’s intent to

suspend payments and/or suspend

approval of new enrollments and

reenrollments unless the educational

institution takes corrective action;

(ii) Give the reasons why the Director

intends to suspend payments and/or

suspend approval of new enrollments

and reenrollments; and

(iii) State the date on which the

Director intends to suspend payments

and/or suspend approval of new

enrollments and reenrollments.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C.

3034(a), 3241(a), 3690(b))

(f) Actions in cases indicating

submission of false, misleading, or

fraudulent claims or statements. The

Director of the VA facility of jurisdiction

will take the following action, as

indicated, that may be in addition to

suspending payments or further

approval of enrollments or

reenrollments in a course or educational

institution.

(1) If the Director has evidence

indicating that an educational

institution has willfully submitted a

false or misleading claim, or that a

veteran, servicemember, reservist,

eligible person, or other person, with

the complicity of an educational

institution, has submitted such a claim,

the Director will make a complete report

of the facts of the case to the appropriate

State approving agency and to the Office

of Inspector General for appropriate

action.

(2) If the Director believes that an

educational institution has submitted a

false, fictitious, or fraudulent claim or

written statement within the meaning of

the Program Fraud Civil Remedies Act

(31 U.S.C. 3801–3812) or that a veteran,

servicemember, reservist, eligible

person, or other person, with the

complicity of an educational institution,

has submitted such a claim or made

such a written statement, the Director

will follow the procedures in part 42 of

this title.

(Authority: 10 U.S.C. 16136(b); 31 U.S.C.

3801–3812; 38 U.S.C. 3034(a), 3241(a),

3690(d))

(g) Referral to the Committee on

Educational Allowances. If the Director

of the VA facility of jurisdiction

suspends payment of educational

assistance to, or suspends approval of

the enrollment or reenrollment of,

individuals in any course or courses as

provided in paragraph (d) of this

section, the Director will refer the

matter to the Committee on Educational

Allowances as provided in § 21.4212.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C.

3034(a), 3241(a), 3690)

(h) Withdrawal of referral to

Committee on Educational Allowances.

(1) If, following a suspension of

payments and/or of approval of

enrollments or reenrollments, the

Director of the VA facility of jurisdiction

determines that the conditions which
45600 Federal Register / Vol. 62, No. 167 / Thursday, August 28, 1997 / Proposed Rules

justified the suspension have been

corrected, and the State approving

agency has not withdrawn or suspended

approval of the course or courses, the

Director may resume payments to and/

or approval of enrollments or

reenrollments of the affected veterans,

servicemembers, reservists, or eligible

persons. If the case has already been

referred to the Committee on

Educational Allowances under

paragraph (g) of this section at the time

such action is taken, the Director will

advise the Committee that the original

referral is withdrawn.

(2) If, following a referral to the

Committee on Educational Allowances,

the Director finds that the State

approving agency will suspend or

withdraw approval, the Director may, if

otherwise appropriate, advise the

Committee that the original referral is

withdrawn.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C.

3034(a), 3241(a), 3690)

11. Section 21.4211 is added to read

as follows:

§ 21.4211 Composition, jurisdiction, and

duties of Committee on Educational

Allowances.

(a) Authority. VA is authorized by 38

U.S.C. 3690 to discontinue educational

benefits to veterans, servicemembers,

reservists, or eligible persons when VA

finds that the program of education or

course in which such individuals are

enrolled fails to meet any of the

requirements of 38 U.S.C. chapter 30,

32, 34, 35, or 36, or 10 U.S.C. chapter

1606, or the regulations in this part, or

when VA finds an educational

institution or training establishment has

violated any such statute or regulation,

or fails to meet any such statutory or

regulatory requirement. Sections

21.4210 and 21.4216 implement that

authority. This section provides for

establishment of a Committee on

Educational Allowances within each VA

facility of jurisdiction whose findings of

fact and recommendations will be

provided to the Director of that VA

facility, to whom such authority to

discontinue educational benefits or

disapprove enrollments or

reenrollments has been delegated.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C.

3034(a), 3241(a), 3690)

(b) Purpose. (1) The Committee on

Educational Allowances is established

to assist the Director of the VA facility

of jurisdiction in reaching a conclusion

as to whether, in a specific case,

educational assistance to all individuals

enrolled in any course or courses

offered by the educational institution

should be discontinued and, if

appropriate, whether approval of all

further enrollments or reenrollments in

those courses should be denied to

veterans, servicemembers, reservists, or

other eligible persons pursuing those

courses under programs administered

by VA because a requirement of 38

U.S.C. chapter 30, 32, 34, 35, or 36, or

10 U.S.C. chapter 1606, or the

regulations in this part is not being met

or a provision of such statute or

regulation has been violated.

(2) The function of the Committee on

Educational Allowances is to develop

facts and recommend action to be taken

on the basis of the facts found. A

hearing before the Committee is not in

the nature of a trial in a court of law.

Instead, it is an administrative inquiry

designed to create a full and complete

record upon which a recommendation

can be made as to whether the Director

should discontinue payment of

educational benefits and/or deny

approval of new enrollments or

reenrollments. Both the interested

educational institution and VA Regional

Counsel, or designee, representing VA,

will be afforded the opportunity to

present to the Committee any evidence,

argument, or other material considered

pertinent.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C.

3034(a), 3241(a), 3690)

(c) Jurisdiction. The Committee on

Educational Allowances will consider

only those cases which are referred in

accordance with §§ 21.4210(g) and

21.4212.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C.

3034(a), 3241(a), 3690)

(d) Committee members. The

Committee on Educational Allowances

will consist of three employees of the

VA facility of jurisdiction, at least one

of whom is familiar with the

adjudication of claims for benefits

administered by the Veterans Benefits

Administration. The Director of the VA

facility of jurisdiction will designate a

Chairperson. In the event that any

member becomes unable to serve for any

reason, the Director may appoint a

replacement member. Before the

Committee resumes its proceedings, the

new member will be given an

opportunity to apprise himself or herself

of the actions and testimony already

taken by the Committee.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C.

3034(a), 3241(a), 3690)

(e) Duties and responsibilities of the

Committee. (1) The function of the

Committee on Educational Allowances

is to make recommendations to the

Director of the VA facility of jurisdiction

in connection with specific cases

referred for consideration as provided in

§§ 21.4210(g) and 21.4212.

(2) The performance of this function

will include:

(i) Hearing testimony or argument

from witnesses or representatives of

educational institutions and VA, as

appropriate, when such persons appear

personally before the Committee;

(ii) Receiving and reviewing all the

evidence, testimony, briefs, statements,

and records included in each case; and

(iii) Furnishing the Director of the VA

facility of jurisdiction a written

statement setting forth specifically the

question or questions considered, a

summation of the essential facts of

record, recommendations as to issues

referred for consideration by the

Committee, and the basis therefor. In

any case where there is not unanimity,

both the majority and the minority

views and recommendations will be

furnished.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C.

3034(a), 3241(a), 3690)

12. Section 21.4212 is added to read

as follows:

§ 21.4212 Referral to Committee on

Educational Allowances.

(a) Form and content of referral to

Committee. When the Director of the VA

facility of jurisdiction refers a case to

the Committee on Educational

Allowances, as provided in § 21.4210(g),

the referral will be in writing and will—

(1) State the approval, reporting,

recordkeeping, or other criteria of

statute or regulation which the Director

has cause to believe the educational

institution has violated;

(2) Describe the substantial pattern of

veterans, servicemembers, reservists, or

eligible persons receiving educational

assistance to which they are not entitled

which the Director has cause to believe

exists, if applicable;

(3) Outline the nature of the evidence

relied on by the Director in reaching the

conclusions of paragraphs (a)(1) and

(a)(2) of this section;

(4) Describe the Director’s efforts to

obtain corrective action and the results

of those efforts; and

(5) Ask the Committee on Educational

Allowances to perform the functions

described in §§ 21.4211, 21.4213, and

21.4214 and to recommend to the

Director whether educational assistance

payable to individuals pursuing the

courses in question should be

discontinued and approval of new

enrollments or reenrollments denied.

(b) Notice of the referral. (1) At the

time of referral the Director will—

(i) Send notice of the referral,

including a copy of the referral
Federal Register / Vol. 62, No. 167 / Thursday, August 28, 1997 / Proposed Rules 45601

document, by certified mail to the

educational institution. The notice will

include statements that the Committee

on Educational Allowances will

conduct a hearing; that the educational

institution has the right to appear before

the Committee and be represented at the

hearing to be scheduled; and that, if the

educational institution intends to

appear at the hearing, it must notify the

Committee within 60 days of the date of

mailing of the notice;

(ii) Provide an information copy of the

notice and referral document to the

State approving agency of jurisdiction;

and

(iii) Place a copy of the notice and

referral document on display at the VA

facility of jurisdiction for review by any

interested party or parties.

(2) The Director will provide a copy

of the notice and referral document to

the VA Regional Counsel, or designee,

of jurisdiction, who will represent VA

before the Committee on Educational

Allowances.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C.

3034(a), 3241(a), 3690)

13. Section 21.4213 is added to read

as follows:

§ 21.4213 Notice of hearing by Committee

on Educational Allowances.

(a) Content of hearing notice. In any

case referred to the Committee on

Educational Allowances for

consideration, a hearing will be held. If,

as provided in § 21.4212(b), the

educational institution has timely

notified the Committee of its intent to

participate in the hearing, the

educational institution will be notified

by certified letter from the Chairperson

of the date when the hearing will be

held. This hearing notification will

inform the educational institution of—

(1) The time and place of the hearing;

(2) The matters to be considered;

(3) The right of the educational

institution to appear at the hearing with

representation by counsel, to present

witnesses, to offer testimony, to present

arguments, and/or to submit a written

statement or brief; and

(4) The complete hearing rules and

procedures.

(b) Expenses connected with hearing.

The notice also will inform the

educational institution that VA will not

pay any expenses incurred by the

educational institution resulting from its

participation in the hearing, including

the expenses of counsel or witnesses on

behalf of the educational institution.

(c) Publication of hearing notice.

Notice of the hearing will be published

in the Federal Register, which will

constitute notice to any interested

individuals, and will indicate that,

while such individuals may attend and

observe the hearing, they may not

participate unless called as witnesses by

VA or the educational institution.

(Authority: 10 U.S.C. 16136; 38 U.S.C.

3034(a), 3241(a), 3690)

14. Section 21.4214 is added to read

as follows:

§ 21.4214 Hearing rules and procedures

for Committee on Educational Allowances.

(a) Rule 1. The Chairperson of the

Committee on Educational Allowances

will be in charge of the proceedings,

will administer oaths or affirmations to

witnesses, and will be responsible for

the official conduct of the hearing. A

majority of the members of the

Committee will constitute a quorum. No

party to the proceedings may conduct a

voir dire of the Committee members.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C.

3034(a), 3241(a), 3690)

(b) Rule 2. At the opening of the

hearing, the Chairperson of the

Committee on Educational Allowances

will inform the educational institution

of the purpose of the hearing, the nature

of the evidence of record relating to the

asserted failures or violations, and the

applicable provisions of law and VA

regulations. The Chairperson will advise

the VA Regional Counsel, or designee,

representing VA, that the Committee on

Educational Allowances will entertain

any relevant evidence or witnesses

which VA Counsel presents to the

Committee and which would

substantiate a decision by the

Committee to recommend that the

Director of the VA facility of jurisdiction

take an adverse action on the issues

submitted for its review. The

educational institution will be advised

of its right to present any evidence,

relevant to the issues submitted for the

Committee’s review, by oral or

documentary evidence; to submit

rebuttal evidence; to present and crossexamine witnesses; and to make such

statements as may be appropriate on its

behalf for a true and full disclosure of

the facts. VA Counsel will be allowed to

cross-examine any witnesses offered by

the educational institution and to reply

to any written briefs or arguments

submitted to the Committee.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C.

3034(a), 3241(a), 3690)

(c) Rule 3. Any testimony or evidence,

either oral or written, which the

Committee on Educational Allowances

deems to be of probative value in

deciding the question at issue will be

admitted in evidence. While irrelevant,

immaterial, or unduly repetitious

evidence, testimony, or arguments

should be excluded, reasonable latitude

will be permitted with respect to the

relevancy, materiality, and competency

of evidence. In most instances the

evidence will consist of official records

of the educational institution and VA,

and these documents may be attested to

and introduced by affidavit; but the

introduction of oral testimony by the

educational institution or by VA will be

allowed, as appropriate, in any instance

where the educational institution or VA

Counsel desires. VA, however, will

neither subpoena any witness on behalf

of the educational institution for such

purposes nor bear any expenses in

connection with the appearance of such

witness. In instances where the

evidence reasonably available consists

of signed written statements, secondary

or hearsay evidence, etc., such evidence

may be introduced into the record and

will be given the weight and

consideration which the circumstances

warrant.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C.

3034(a), 3241(a), 3690)

(d) Rule 4. A verbatim stenographic or

recorded transcript of the hearing will

be made. This transcript will become a

permanent part of the record, and a

copy will be furnished to the

educational institution and the VA

Counsel at the conclusion of the

proceeding, unless furnishing of the

copy of the transcript is waived by the

educational institution.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C.

3034(a), 3241(a), 3690)

(e) Rule 5. The Chairperson of the

Committee on Educational Allowances

will identify all exhibits in the order of

introduction or receipt (numerically for

VA exhibits and alphabetically for

exhibits introduced by the educational

institution). All such original exhibits or

documents shall be attached to the

original of the transcript. VA shall make

photocopies or certified copies and

attach them to the copy of the transcript

furnished to the educational institution

and the VA Counsel. The original

transcript will accompany the

Committee’s recommendation to the

Director of the VA facility of jurisdiction

along with all exhibits, briefs, or written

statements received by the Committee

during the course of the proceedings.

Such documents should be clearly

marked to indicate which were received

into evidence and relied upon by the

Committee in making its

recommendations.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C.

3034(a), 3241(a), 3690)
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(f) Rule 6. The Committee on

Educational Allowances, at its

discretion, may reasonably limit the

number of persons appearing at the

hearing, including any affected

individuals presented as witnesses by

VA or the educational institution.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C.

3034(a), 3241(a), 3690)

(g) Rule 7. Any person who is

presented to testify will be required to

be duly placed under oath or affirmation

by the Chairperson of the Committee on

Educational Allowances. If an official of

the educational institution desires to

present a statement personally, the

individual will be required to be placed

under oath or affirmation. The

Chairperson will advise each witness

that the Committee understands that he

or she is voluntarily appearing before

the Committee; that any testimony or

statement given will be considered as

being completely voluntary; and that no

one has authority to require the

individual to make any statement or

answer any question against his or her

will before the Committee, except that a

person called as a witness on behalf of

either VA or the educational institution

must be willing to submit to crossexamination with respect to testimony

given. Each witness will also be advised

that his or her testimony or statement,

if false, even though voluntary, may

subject him or her to prosecution under

Federal statutes.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C.

3034(a), 3241(a), 3690)

(h) Rule 8. Any member of the

Committee on Educational Allowances

may question any witness presented to

testify at the hearing or either a

representative of the educational

institution or the VA Counsel

concerning matters that are relevant to

the question at issue. Generally,

questioning by a Committee member

will be limited to the extent of clarifying

information on the facts and issues

involved.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C.

3034(a), 3241(a), 3690)

(i) Rule 9. If the educational

institution fails to timely notify the

Committee of its intent to participate in

a hearing or if a representative of the

educational institution is scheduled to

appear for a hearing but, without good

cause, fails to appear either in person or

by writing, the Committee will proceed

with the hearing and will review the

case on the basis of the evidence of

record which shall be presented by the

VA Counsel.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C.

3034(a), 3241(a), 3690)

(j) Rule 10. Any objection by an

authorized representative of the

educational institution or the VA

Counsel on a ruling by the Chairperson

of the Committee on Educational

Allowances regarding the admissibility

of testimony or other evidence

submitted will be made a matter of

record, together with the substance in

brief of the testimony intended or other

evidence concerned. If the other

evidence concerned is in the form of an

affidavit or other document, it may be

accepted for filing as a future reference

if it is later ruled admissible as part of

the record of the hearing.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C.

3034(a), 3241(a), 3690)

(k) Rule 11. Objections relating to the

jurisdiction or membership of the

Committee on Educational Allowances

or the constitutionality of statutes or the

constitutionality of, or statutory

authority for, VA regulations, are not

before the Committee for decision. The

time of the Committee will not be used

to hear arguments in this regard.

However, any such matters outside the

province of the Committee may be the

subject of a brief or a letter for

consideration by the VA Office of

General Counsel upon completion of the

hearing. The ruling of such authority

upon such issues will be obtained and

included in the record before the

Committee’s recommendations are

submitted to the Director of the VA

facility of jurisdiction. If the VA General

Counsel’s ruling on such legal issues

necessitates reopening the proceeding,

that shall be done before the Committee

makes its recommendations to the

Director of the VA facility of

jurisdiction.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C.

3034(a), 3241(a), 3690)

(l) Rule 12. The hearing will be open

to the public.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C.

3034(a), 3241(a), 3690)

(m) Rule 13. The hearing will be

conducted in an orderly manner with

dignity and decorum. The conduct of

members of the Committee on

Educational Allowances, the VA

Counsel, and any representatives of the

educational institution shall be

characterized by appropriate

impartiality, fairness, and cooperation.

The Chairperson of the Committee shall

take such action as may be necessary,

including suspension of the hearing or

the removal of the offending person

from the hearing room for misbehavior,

disorderly conduct, or the persistent

disregard of the Chairperson’s ruling.

Where this occurs, the Chairperson will

point out that the Committee is entitled

to every possible consideration in order

that the case may be presented clearly

and fully, which may be accomplished

only through observance of orderly

procedures.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C.

3034(a), 3241(a), 3690)

(n) Rule 14. The Chairperson of the

Committee on Educational Allowances

will conduct the hearing proceedings in

such a manner that will protect from

disclosure information which tends to

disclose or compromise investigative

sources or methods or which would

violate the privacy of any individual.

The salient facts, which form the basis

of charges, may be disclosed and

discussed without revealing the source.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C.

3034(a), 3241(a), 3690)

(o) Rule 15. At the close of the

hearing, the Chairperson of the

Committee on Educational Allowances

shall inform the appropriate

representative of the educational

institution that the arguments and the

evidence presented will be given careful

consideration; and that notice of the

decision of the Director of the VA

facility of jurisdiction, together with the

Committee’s recommendations, will be

furnished to the educational institution

and the VA Counsel at the earliest

possible time. The Chairperson will also

indicate that notice of the Director’s

decision will be published in the

Federal Register for the information of

all other interested persons.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C.

3034(a), 3241(a), 3690)

(p) Rule 16. In making its findings of

facts and recommendations, the

Committee on Educational Allowances

will consider only questions which are

referred to it by the Director of the VA

facility of jurisdiction as being at issue

and which are within the jurisdiction of

the Committee.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C.

3034(a), 3241(a), 3690)

15. Section 21.4215 is added to read

as follows:

§ 21.4215 Decision of Director of VA

facility of jurisdiction.

(a) Decision. The Director of the VA

facility of jurisdiction will render a

written decision on the issue of

discontinuance of payments of benefits

and/or denial of further enrollments or

reenrollments in the course or courses at

the educational institution which was

the subject of the Committee on

Educational Allowances proceedings.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C.

3034(a), 3241(a), 3690)
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(b) Basis of decision. (1) The decision

of the Director of the VA facility of

jurisdiction will be based upon all

admissible evidence of record,

including—

(i) The recommendations of the

Committee on Educational Allowances;

(ii) The hearing transcript and the

documents admitted in evidence; and

(iii) The ruling on legal issues referred

to appropriate authority.

(2) The decision will clearly describe

the evidence and state the facts on

which the decision is based and, in the

event that the decision differs from the

recommendations of the Committee on

Educational Allowances, will give the

reasons and facts relied upon by the

Director in deciding not to follow the

Committee majority’s recommendations.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C.

3034(a), 3241(a), 3690)

(c) Correction of deficiencies. If the

Director of the VA facility of jurisdiction

believes that the record provided for

review is incomplete or for any reason

should be reopened, before rendering a

decision he or she will order VA staff to

gather any additional necessary

evidence and will notify the educational

institution that it may comment upon

the new evidence added. The Director

will then notify the educational

institution as to whether the matter will

be resubmitted to the Committee on

Educational Allowances for further

proceedings, on the basis of the new

circumstances. If the matter is referred

back to the Committee, the Director will

defer a decision until he or she has

received the Committee’s new

recommendations based upon all of the

evidence of record.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C.

3034(a), 3241(a), 3690)

(d) Effective date. If the decision of

the Director of the VA facility of

jurisdiction is adverse to the

educational institution, the decision

shall indicate specifically the effective

date of each adverse action covered by

the decision.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C.

3034(a), 3241(a), 3690)

(e) Notification of decision. (1) The

Director of the VA facility of jurisdiction

shall send a copy of the decision to the

educational institution by certified mail,

return receipt requested. A copy of the

decision also will be provided by

regular mail to the institution’s legal

representative of record, if any. If the

decision is adverse to the educational

institution, the Director will enclose a

notice of the educational institution’s

right to have the Director, Education

Service review the decision.

(2) The Director of the VA facility of

jurisdiction will also send a copy of the

decision to:

(i) The State approving agency; and

(ii) VA Counsel.

(3) The Director of the VA facility of

jurisdiction shall post a copy of the

decision at the VA facility of

jurisdiction. A copy of the decision

shall be published in the Federal

Register.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C.

3034(a), 3241(a), 3690)

16. Section 21.4216 is added to read

as follows:

§ 21.4216 Review of decision of Director of

VA facility of jurisdiction.

(a) Decision is subject to review by

Director, Education Service. A review by

the Director, Education Service of a

decision of a Director of a VA facility of

jurisdiction to terminate payments or

disapprove new enrollments or

reenrollments, when requested by the

educational institution, will be based on

the evidence of record when the

Director of the VA facility of jurisdiction

made that decision. It will not be de

novo in nature and no hearing on

review will be held.

(b) Authority of Director, Education

Service. The Director, Education Service

has the authority to affirm, reverse, or

remand the original decision. In the case

of such a review, the reviewing official’s

decision, other than a remand, shall

become the final Department decision

on the issue presented.

(c) Notice of decision of Director,

Education Service is required. Notice of

the reviewing official’s decision will be

provided to the interested parties and

published in the Federal Register, in the

same manner as is provided in

§ 21.4215(e) for decisions of the Director

of the VA facility of jurisdiction, for the

information of all concerned.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C.

3034(a), 3241(a), 3690)

Subpart G—Post-Vietnam Era

Veterans’ Educational Assistance

Under 38 U.S.C. Chapter 32

17. The authority citation for part 21,

subpart G, is revised to read as follows:

Authority: 38 U.S.C. 501(a), chs. 32, 36,

unless otherwise noted.

§ 21.5130 [Amended]

18. In § 21.5130, paragraphs (b) and

(c) are removed, and paragraphs (d), (e),

(f), and (g) are redesignated as

paragraphs (b), (c), (d), and (e),

respectively.

19. In § 21.5200, the introductory text

is amended by removing ‘‘in the same

manner as they are applied in the

administration of chapters 34 and 36’’;

paragraph (h) is removed; paragraph (j)

is redesignated as paragraph (h); and

paragraph (i) is revised and paragraphs

(j), (k), (l), (m), (n), and (o) are added,

to read as follows:

§ 21.5200 Schools.

* * * * *

(i) Section 21.4210—Suspension and

discontinuance of educational

assistance payments and of enrollments

or reenrollments for pursuit of approved

courses.

(j) Section 21.4211—Composition,

jurisdiction and duties of Committee on

Educational Allowances.

(k) Section 21.4212—Referral to

Committee on Educational Allowances.

(l) Section 21.4213—Notice of hearing

by Committee on Educational

Allowances.

(m) Section 21.4214—Hearing rules

and procedures for Committee on

Educational Allowances.

(n) Section 21.4215—Decision of

Director of VA facility of jurisdiction.

(o) Section 21.4216—Review of

decision of Director of VA facility of

jurisdiction.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C.

3034(a), 3241(a), 3690)

Subpart K—All Volunteer Force

Educational Assistance Program

(Montgomery GI Bill—Active Duty)

20. The authority citation for part 21,

subpart K, is revised to read as follows:

Authority: 38 U.S.C. 501(a), chs. 30, 36,

unless otherwise noted.

21. Section 21.7133 is revised to read

as follows:

§ 21.7133 Suspension or discontinuance

of payments.

VA may suspend or discontinue

payments of educational assistance. In

doing so, VA will apply §§ 21.4210

through 21.4216.

(Authority: 38 U.S.C. 3034, 3690)

§ 21.7135 [Amended]

22. In § 21.7135, paragraph (i)

introductory text and paragraph (i)(2)

are amended by removing ‘‘§ 21.4207’’

and adding, in its place, ‘‘§ 21.4211 (d)

and (g)’’; and paragraphs (i)(1), (j)(1),

and (k)(1) are amended by removing

‘‘§ 21.4134’’ wherever it appears, and

adding, in its place, ‘‘§ 21.4210’’.

23. In § 21.7158, the section heading,

paragraph (b)(2), and the authority

citation for paragraph (b) are revised, to

read as follows:

§ 21.7158 False, late, or missing reports.

* * * * *

(b) * * *
45604 Federal Register / Vol. 62, No. 167 / Thursday, August 28, 1997 / Proposed Rules

1The reader may refer to the Notice of Proposed

Rulemaking, December 5, 1991 (56 FR 63774), and

the preamble to the final rule promulgated

September 4, 1992 (57 FR 40792) for further

background and information on the OCS

regulations.

(2) If an educational institution or

training establishment willfully and

knowingly submits a false report or

certification, VA may disapprove that

institution’s or establishment’s courses

for further enrollments and may

discontinue educational assistance to

veterans and servicemembers already

enrolled. In doing so, VA will apply

§§ 21.4210 through 21.4216.

(Authority: 38 U.S.C. 3034, 3690)

Subpart L—Educational Assistance for

Members of the Selected Reserve

24. The authority citation for part 21,

subpart L, is revised to read as follows:

Authority: 10 U.S.C. ch. 1606; 38 U.S.C.

501(a), ch. 36, unless otherwise noted.

§ 21.7624 [Amended]

25. Section 21.7624(b) is amended by

removing ‘‘21.4202(b)’’ and adding, in

its place, ‘‘21.4210(b)’’.

26. Section 21.7633 is revised to read

as follows:

§ 21.7633 Suspension or discontinuance

of payments.

VA may suspend or discontinue

payments of educational assistance. In

doing so, VA will apply §§ 21.4210

through 21.4216.

(Authority: 10 U.S.C 16136(b); 38 U.S.C.

3690)

§ 21.7635 [Amended]

27. In § 21.7635, the introductory text

of paragraph (e) is amended by

removing ‘‘§ 21.4207 of this part’’, and

adding, in its place, ‘‘§ 21.4211 (d) and

(g)’’; paragraph (e)(2) is amended by

removing ‘‘§ 21.4207 of this part’’, and

adding, in its place, ‘‘§ 21.4211 (d) and

(g)’’; and paragraphs (e)(1), (f)(1), and

(g)(1) are amended by removing

‘‘§ 21.4134 of this part’’ wherever it

appears, and adding, in its place,

‘‘§ 21.4210’’.

28. In § 21.7658, paragraph (b)(1)

introductory text is amended by

removing ‘‘negligent’’ and adding, in its

place, ‘‘negligent:’’; paragraph (b)(1)(i) is

amended by removing ‘‘institution of

higher learning to report,’’ and adding,

in its place, ‘‘educational institution to

report’’ and by removing ‘‘reservist,’’

and adding, in its place, ‘‘reservist;’’;

paragraph (b)(1)(ii) is amended by

removing ‘‘§ 21.7644(b) of this part’’ and

adding, in its place, ‘‘§ 21.7644(c)’’; and

the section heading, the heading of

paragraph (b), and paragraph (b)(2) are

revised to read as follows:

§ 21.7658 False, late, or missing reports.

* * * * *

(b) Educational institution or training

establishment. * * *

(2) If an educational institution or

training establishment willfully and

knowingly submits a false report or

certification, VA may disapprove that

institution’s or establishment’s courses

for further enrollments and may

discontinue educational assistance to

reservists already enrolled. In doing so,

VA will apply §§ 21.4210 through

21.4216.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C.

3690)

[FR Doc. 97–22876 Filed 8–27–97; 8:45 am]

BILLING CODE 8320–01–P

ENVIRONMENTAL PROTECTION

AGENCY

[FRL–5883–9]

40 CFR Part 55

Outer Continental Shelf Air

Regulations Consistency Update for

California

AGENCY: Environmental Protection

Agency (EPA).

ACTION: Proposed rule—consistency

update.

SUMMARY: EPA is proposing to update a

portion of the Outer Continental Shelf

(‘‘OCS’’) Air Regulations. Requirements

applying to OCS sources located within

25 miles of states’ seaward boundaries

must be updated periodically to remain

consistent with the requirements of the

corresponding onshore area (‘‘COA’’), as

mandated by section 328(a)(1) of the

Clean Air Act, as amended in 1990 (‘‘the

Act’’). The portion of the OCS air

regulations that is being updated

pertains to the requirements for OCS

sources for which the Ventura County

Air Pollution Control District (Ventura

County APCD) is the designated COA.

The intended effect of approving the

OCS requirements for the above District,

contained in the Technical Support

Document, is to regulate emissions from

OCS sources in accordance with the

requirements onshore. The change to

the existing requirements discussed

below are proposed to be incorporated

by reference into the Code of Federal

Regulations and are listed in the

appendix to the OCS air regulations.

DATES: Comments on the proposed

update must be received on or before

September 29, 1997.

ADDRESSES: Comments must be mailed

(in duplicate if possible) to: EPA Air

Docket (Air–4), Attn: Docket No. A–93–

16 Section XV, Environmental

Protection Agency, Air Division, Region

9, 75 Hawthorne St., San Francisco, CA

94105.

Docket: Supporting information used

in developing the rules and copies of

the document EPA is proposing to

incorporate by reference are contained

in Docket No. A–93–16 Section XV.

This docket is available for public

inspection and copying Monday-Friday

during regular business hours at the

following locations:

EPA Air Docket (Air–4), Attn: Docket

No. A–93–16 Section XV,

Environmental Protection Agency, Air

Division, Region 9, 75 Hawthorne St.,

San Francisco, CA 94105.

EPA Air Docket (LE–131), Attn: Air

Docket No. A–93–16 Section XV,

Environmental Protection Agency,

401 M Street SW, Room M–1500,

Washington, DC 20460.

A reasonable fee may be charged for

copying.

FOR FURTHER INFORMATION CONTACT:

Christine Vineyard, Air Division (Air–

4), U.S. EPA Region 9, 75 Hawthorne

Street, San Francisco, CA 94105, (415)

744–1197.

SUPPLEMENTARY INFORMATION:

Background

On September 4, 1992, EPA

promulgated 40 CFR part 55,1 which

established requirements to control air

pollution from OCS sources in order to

attain and maintain federal and state

ambient air quality standards and to

comply with the provisions of part C of

title I of the Act. Part 55 applies to all

OCS sources offshore of the States

except those located in the Gulf of

Mexico west of 87.5 degrees longitude.

Section 328 of the Act requires that for

such sources located within 25 miles of

a state’s seaward boundary, the

requirements shall be the same as would

be applicable if the sources were located

in the COA. Because the OCS

requirements are based on onshore

requirements, and onshore requirements

may change, section 328(a)(1) requires

that EPA update the OCS requirements

as necessary to maintain consistency

with onshore requirements.

Pursuant to section 55.12 of the OCS

rule, consistency reviews will occur (1)

at least annually; (2) upon receipt of a

Notice of Intent under section 55.4; or

(3) when a state or local agency submits

a rule to EPA to be considered for

incorporation by reference in part 55.

This proposed action is being taken in

response to the submittal of rules by a

local air pollution control agency.