Federal Register / Vol. 79, No. 220 / Friday, November 14, 2014 / Rules and Regulations 68127 

required under Executive Order 13211 

(May 18, 2001). 

H. Executive Order 12988 (Civil 

Justice Reform): This rulemaking meets 

applicable standards to minimize 

litigation, eliminate ambiguity, and 

reduce burden as set forth in sections 

3(a) and 3(b)(2) of Executive Order 

12988 (Feb. 5, 1996). 

I. Executive Order 13045 (Protection 

of Children): This rulemaking does not 

concern an environmental risk to health 

or safety that may disproportionately 

affect children under Executive Order 

13045 (Apr. 21, 1997). 

J. Executive Order 12630 (Taking of 

Private Property): This rulemaking will 

not affect a taking of private property or 

otherwise have taking implications 

under Executive Order 12630 (Mar. 15, 

1988). 

K. Congressional Review Act: Under 

the Congressional Review Act 

provisions of the Small Business 

Regulatory Enforcement Fairness Act of 

1996 (5 U.S.C. 801 et seq.), prior to 

issuing any final rule, the United States 

Patent and Trademark Office will 

submit a report containing the rule and 

other required information to the United 

States Senate, the United States House 

of Representatives, and the Comptroller 

General of the Government 

Accountability Office. The changes in 

this rulemaking are not expected to 

result in an annual effect on the 

economy of 100 million dollars or more, 

a major increase in costs or prices, or 

significant adverse effects on 

competition, employment, investment, 

productivity, innovation, or the ability 

of United States-based enterprises to 

compete with foreign-based enterprises 

in domestic and export markets. 

Therefore, this final rule is not a ‘‘major 

rule’’ as defined in 5 U.S.C. 804(2). 

L. Unfunded Mandates Reform Act of 

1995: The changes set forth in this 

rulemaking do not involve a Federal 

intergovernmental mandate that will 

result in the expenditure by State, local, 

and tribal governments, in the aggregate, 

of 100 million dollars (as adjusted) or 

more in any one year, or a Federal 

private sector mandate that will result 

in the expenditure by the private sector 

of 100 million dollars (as adjusted) or 

more in any one year, and will not 

significantly or uniquely affect small 

governments. Therefore, no actions are 

necessary under the provisions of the 

Unfunded Mandates Reform Act of 

1995. See 2 U.S.C. 1501 et seq. 

M. National Environmental Policy 

Act: This rulemaking will not have any 

effect on the quality of the environment 

and is thus categorically excluded from 

review under the National 

Environmental Policy Act of 1969. See 

42 U.S.C. 4321 et seq. 

N. National Technology Transfer and 

Advancement Act: The requirements of 

section 12(d) of the National 

Technology Transfer and Advancement 

Act of 1995 (15 U.S.C. 272 note) are not 

applicable because this rulemaking does 

not contain provisions which involve 

the use of technical standards. 

O. Paperwork Reduction Act: The 

Paperwork Reduction Act of 1995 (44 

U.S.C. 3501 et seq.) requires that the 

Office consider the impact of paperwork 

and other information collection 

burdens imposed on the public. This 

rulemaking involves information 

collection requirements which are 

subject to review by the Office of 

Management and Budget (OMB) under 

the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501–3549). An applicant 

who wishes to participate in the 

prioritized examination program must 

submit a certification and request to 

participate in the prioritized 

examination program, preferably by 

using Form PTO/AIA/424. OMB has 

determined that, under 5 CFR 1320.3(h), 

Form PTO/AIA/424 does not collect 

‘‘information’’ within the meaning of 

the Paperwork Reduction Act of 1995. 

This rule making does not impose any 

additional collection requirements 

under the Paperwork Reduction Act 

which are subject to further review by 

OMB. 

Notwithstanding any other provision 

of law, no person is required to respond 

to, nor shall a person be subject to a 

penalty for failure to comply with, a 

collection of information subject to the 

requirements of the Paperwork 

Reduction Act unless that collection of 

information displays a currently valid 

OMB control number. 

List of Subjects in 37 CFR Part 1 

Administrative practice and 

procedure, Courts, Freedom of 

information, Inventions and patents, 

Reporting and recordkeeping 

requirements, Small businesses. 

■ For the reasons set forth in the 

preamble, the interim rule amending 37 

CFR part 1 which was published at 79 

FR 12386–12390 on March 5, 2014, is 

adopted as a final rule without change. 

Dated: November 6, 2014. 

Michelle K. Lee, 

Deputy Under Secretary of Commerce for 

Intellectual Property and Deputy Director of 

the United States Patent and Trademark 

Office. 

[FR Doc. 2014–27037 Filed 11–13–14; 8:45 am] 

BILLING CODE 3510–16–P 

DEPARTMENT OF VETERANS 

AFFAIRS 

38 CFR Part 12 

RIN 2900–AO41 

Designee for Patient Personal Property 

AGENCY: Department of Veterans Affairs. 

ACTION: Final rule. 

SUMMARY: The Department of Veterans 

Affairs (VA) is amending its regulation 

that governs a competent veteran’s 

designation of a person to receive the 

veteran’s funds and personal effects in 

the event that such veteran was to die 

while in a VA field facility. We are 

eliminating reference to an obsolete VA 

form, clarifying the role of a VA 

fiduciary for an incompetent veteranpatient, as well as restructuring the 

current regulation for ease of 

readability. 

DATES: This final rule is effective 

December 15, 2014. 

FOR FURTHER INFORMATION CONTACT: 

Kristin J. Cunningham, Director, 

Business Policy, Chief Business Office 

(10NB6), Veterans Health 

Administration, Department of Veterans 

Affairs, 810 Vermont Ave. NW., 

Washington, DC 20420; (202) 382–2508. 

(This is not a toll-free number.) 

SUPPLEMENTARY INFORMATION: In a 

document published in the Federal 

Register at 78 FR 63139 (October 23, 

2013), VA proposed to amend its 

regulation concerning the disposition of 

a veteran’s funds and effects. We 

proposed several changes to 38 U.S.C. 

part 12. We proposed that, if a 

competent veteran who is receiving VA 

medical care dies in a VA field facility, 

any funds and personal effects 

belonging to the veteran must be turned 

over to the person who had been 

designated by the veteran upon 

admission to such VA field facility. VA 

requests and encourages a competent 

veteran to designate an individual and 

provide the facility with the 

individual’s information in order to 

facilitate the process of disposition of 

the veteran’s funds and personal effects 

in the event of his or her death, and to 

help alleviate some of the burden on the 

deceased veteran’s survivors. VA 

currently requests a veteran to name a 

designee during the registration process 

when VA admits a veteran for care at a 

VA field facility and the designee 

information is recorded by VA 

personnel directly into the veteran’s 

medical record. However, having a VA 

employee enter the designee into the 

veteran’s medical record without having 

a signed written designation by the 

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68128 Federal Register / Vol. 79, No. 220 / Friday, November 14, 2014 / Rules and Regulations 

veteran increases the risk for litigation 

against VA by the veteran’s survivors. In 

order to reduce the risk of litigation, we 

proposed to create a new VA form. On 

said form, the veteran will designate an 

individual to receive the veteran’s funds 

and effects in the event that such 

veteran was to die while receiving VA 

medical care. We also proposed to allow 

designation of certain family members 

who could not be designees under the 

regulation before this amendment, but 

continued to disallow as a possible 

designee a VA employee who is not a 

member of the veteran’s family to avoid 

any potential for impropriety or the 

appearance thereof. Finally, we 

proposed certain revisions to improve 

readability and otherwise updated the 

regulatory text. 

We provided a 60-day comment 

period, which ended on December 23, 

2013. We did not receive any comments 

on the proposed rule. Based on the 

rationale set forth in the Supplementary 

Information to the proposed rule and in 

this final rule, VA is adopting the 

proposed rule as a final rule with no 

changes. 

Effect of Rulemaking 

Title 38 of the Code of Federal 

Regulations, as revised by this final 

rulemaking, represents VA’s 

implementation of its legal authority on 

this subject. Other than future 

amendments to this regulation or 

governing statutes, no contrary guidance 

or procedures are authorized. All 

existing or subsequent VA guidance 

must be read to conform with this 

rulemaking if possible or, if not 

possible, such guidance is superseded 

by this rulemaking. 

Paperwork Reduction Act 

The Paperwork Reduction Act of 1995 

(44 U.S.C. 3507) requires that VA 

consider the impact of paperwork and 

other information collection burdens 

imposed on the public. Under 44 U.S.C. 

3507(a), an agency may not collect or 

sponsor the collection of information, 

nor may it impose an information 

collection requirement unless it 

displays a currently valid Office of 

Management and Budget (OMB) control 

number. See also 5 CFR 1320.8(b)(3)(vi). 

This final rule imposes the following 

new information collection 

requirements. The information required 

in § 12.1 allows the veteran, upon 

admission to a VA field facility, to 

designate a person to receive the 

veteran’s funds or effects in the event 

that the veteran dies while admitted to 

such VA field facility. The information 

required in § 12.1 would also allow the 

veteran to change or revoke such 

designee. If the veteran dies in a VA 

field facility, any funds or personal 

effects belonging to the veteran must be 

turned over to a person designated by 

the veteran. VA requests and encourages 

a veteran to name a person as a designee 

in order to facilitate the process of 

disposition of the veteran’s funds and 

effects. VA also allows the veteran the 

opportunity to change or revoke such 

designee at any time. The information 

obtained through this collection 

eliminates some of the burden on the 

deceased veteran’s survivors in the 

event of the veteran’s death in a VA 

field facility. As required by 44 U.S.C. 

3507(d), VA submitted this information 

collection to OMB for its review, and 

the information collection is pending 

OMB approval. Notice of OMB approval 

for this information collection will be 

published in a future Federal Register 

document. Until VA receives approval 

from OMB for the information 

collection, VA will not collect 

information associated with this 

rulemaking. The public is not required 

to respond to the information collection 

associated with this rulemaking until 

OMB approves the information 

collection. 

Regulatory Flexibility Act 

The Secretary hereby certifies that 

this final rule will not have a significant 

economic impact on a substantial 

number of small entities as they are 

defined in the Regulatory Flexibility 

Act, 5 U.S.C. 601–612. This final rule 

will directly affect only individuals and 

will not directly affect small entities. 

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

this rulemaking is exempt from the 

initial and final regulatory flexibility 

analysis requirements of sections 603 

and 604. 

Executive Orders 12866 and 13563 

Executive Orders 12866 and 13563 

direct agencies to assess the costs and 

benefits of available regulatory 

alternatives and, when regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, and other advantages; 

distributive impacts; and equity). 

Executive Order 13563 (Improving 

Regulation and Regulatory Review) 

emphasizes the importance of 

quantifying both costs and benefits, 

reducing costs, harmonizing rules, and 

promoting flexibility. Executive Order 

12866 (Regulatory Planning and 

Review) defines a ‘‘significant 

regulatory action,’’ which requires 

review by OMB unless OMB waives 

such review, as ‘‘any regulatory action 

that is likely to result in a rule that may: 

(1) Have an annual effect on the 

economy of $100 million or more or 

adversely affect in a material way the 

economy, a sector of the economy, 

productivity, competition, jobs, the 

environment, public health or safety, or 

State, local, or tribal governments or 

communities; (2) Create a serious 

inconsistency or otherwise interfere 

with an action taken or planned by 

another agency; (3) Materially alter the 

budgetary impact of entitlements, 

grants, user fees, or loan programs or the 

rights and obligations of recipients 

thereof; or (4) Raise novel legal or policy 

issues arising out of legal mandates, the 

President’s priorities, or the principles 

set forth in this Executive Order.’’ 

The economic, interagency, 

budgetary, legal, and policy 

implications of this regulatory action 

have been examined, and it has been 

determined not to be a significant 

regulatory action under Executive Order 

12866. VA’s impact analysis can be 

found as a supporting document at 

http://www.regulations.gov, usually 

within 48 hours after the rulemaking 

document is published. Additionally, a 

copy of the rulemaking and its impact 

analysis are available on VA’s Web site 

at http://www.va.gov/orpm/. by 

following the link for VA Regulations 

Published From FY 2004 Through Fiscal 

Year to Date. 

Unfunded Mandates 

The Unfunded Mandates Reform Act 

of 1995 requires, at 2 U.S.C. 1532, that 

agencies prepare an assessment of 

anticipated costs and benefits before 

issuing any rule that may result in the 

expenditure by State, local, and tribal 

governments, in the aggregate, or by the 

private sector, of $100 million or more 

(adjusted annually for inflation) in any 

1 year. This final rule will have no such 

effect on State, local, and tribal 

governments, or on the private sector. 

Catalog of Federal Domestic Assistance 

The Catalog of Federal Domestic 

Assistance numbers and titles for the 

programs affected by this document are 

64.007, Blind Rehabilitation Centers; 

64.008, Veterans Domiciliary Care; 

64.009, Veterans Medical Care Benefits; 

64.010, Veterans Nursing Home Care; 

64.019, Veterans Rehabilitation— 

Alcohol and Drug Dependence. 

Signing Authority 

The Secretary of Veterans Affairs, or 

designee, approved this document and 

authorized the undersigned to sign and 

submit the document to the Office of the 

Federal Register for publication 

electronically as an official document of 

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Federal Register / Vol. 79, No. 220 / Friday, November 14, 2014 / Rules and Regulations 68129 

the Department of Veterans Affairs. Jose 

D. Riojas, Chief of Staff, Department of 

Veterans Affairs, approved this 

document on November 4, 2014, for 

publication. 

List of Subjects in 38 CFR Part 12 

Estates, Veterans. 

Dated: November 10, 2014. 

Janet J. Coleman, 

Chief, Regulations Development, Tracking, 

and Control, Office of Regulation Policy & 

Management, Office of the General Counsel, 

U.S. Department of Veterans Affairs. 

For the reasons set out in the 

preamble, the Department of Veterans 

Affairs amends 38 CFR part 12 as 

follows: 

PART 12—DISPOSITION OF 

VETERAN’S PERSONAL FUNDS AND 

EFFECTS 

■ 1. The authority citation for part 12 is 

revised to read as follows: 

Authority: 38 U.S.C. 501, 8501–8528. 

§ 12.0 [Amended] 

■ 2. Amend § 12.0 paragraph (b) by 

removing the phrase ‘‘funds derived 

from gratuitous benefits under laws 

administered by the Department of 

Veterans Affairs’’ and adding, in its 

place, ‘‘funds derived from VA 

benefits’’. 

■ 3. Revise § 12.1 to read as follows: 

§ 12.1 Designee cases; competent 

veterans. 

(a) Designees—general. (1) Upon 

admission to a VA field facility, VA will 

request and encourage a competent 

veteran to designate in writing, on the 

relevant VA form, an individual to 

whom VA will deliver the veteran’s 

funds and effects in the event of the 

veteran’s death in such VA field facility. 

The individual named by the veteran is 

referred to in this part as the designee. 

(2) The veteran may change or revoke 

a designation in writing, on the relevant 

VA form, at any time. 

(3) If the veteran does not name a 

designee or if a designee is unable or 

unwilling to accept delivery of funds or 

effects, § 12.5 Nondesignee cases, 

applies. 

(4) The designee may not be a VA 

employee unless such employee is a 

member of the veteran’s family. For 

purposes of this section, a family 

member includes the spouse, parent, 

child, step family member, extended 

family member or an individual who 

lives with the veteran but is not a 

member of the veteran’s family. 

(5) To be effective, a completed form 

must be received by the facility head or 

facility designee prior to the veteran’s 

death. 

(b) Delivery of funds and effects. The 

delivery of the veteran’s funds or effects 

to the designee is only a delivery of 

possession. Such delivery of possession 

does not affect in any manner: 

(1) The title to such funds or effects; 

or 

(2) The person legally entitled to 

ownership of such funds or effects. 

(c) Veteran becomes incompetent. If a 

veteran is determined to be incompetent 

pursuant to an order of a state court or 

is determined to be unable to manage 

monetary VA benefits by a VA clinician 

after the veteran is admitted to a VA 

field facility, the VA field facility staff 

will contact the Veterans Benefits 

Administration for the application of 38 

CFR 3.353, regarding an incompetency 

rating as to whether the veteran is able 

to manage monetary VA benefits, and, if 

appropriate, 38 CFR 13.55, regarding VA 

fiduciary appointments. If the Veterans 

Benefits Administration determines that 

a veteran is incompetent to manage 

monetary VA benefits, any designation 

by the veteran under paragraph (a) of 

this section will cease with respect to 

VA benefits that are deposited by VA 

into the Personal Funds of Patients. The 

veteran’s designation will not change 

with respect to disposition of funds and 

personal effects derived from non-VA 

sources, unless a court-appointed 

guardian or conservator changes or 

revokes the existing designation. 

(d) Retention of funds and effects by 

a veteran. Upon admission to a VA field 

facility, VA will encourage a competent 

veteran to: 

(1) Place articles of little or no use to 

the veteran during the period of care in 

the custody of a family member or 

friend; and 

(2) Retain only such funds and effects 

that are actually required and necessary 

for the veteran’s immediate 

convenience. 

(The information collection is 

pending Office of Management and 

Budget approval.) 

(Authority: 38 U.S.C. 8502) 

§ 12.2 [Amended] 

■ 4. In § 12.2 amend paragraph (a) by 

removing the phrase ‘‘funds deposited 

by the Department of Veterans Affairs in 

Personal Funds of Patients which were 

derived from gratuitous benefits under 

laws administered by the Department of 

Veterans Affairs’’ and adding, in its 

place, ‘‘funds deposited by VA in 

Personal Funds of Patients that were 

derived from VA benefits’’. 

§ 12.3 [Amended] 

■ 5. In § 12.3 amend paragraph (a)(1) by 

removing the phrase ‘‘funds deposited 

by the Department of Veterans Affairs in 

Personal Funds of Patients which were 

derived from gratuitous benefits under 

laws administered by the Department of 

Veterans Affairs’’ and adding, in its 

place, ‘‘funds deposited by VA in 

Personal Funds of Patients that were 

derived from VA benefits,’’ and by 

removing the word ‘‘gratuitous’’ and 

adding, in its place ‘‘VA’’. 

§ 12.4 [Amended] 

■ 6. Amend § 12.4 by: 

■ a. In paragraph (a) introductory text, 

removing the phrase ‘‘funds on deposit 

in Personal Funds of Patients derived 

from gratuitous benefits under laws 

administered by the Department of 

Veterans Affairs and deposited by the 

Department of Veterans Affairs’’ and 

adding, in its place, ‘‘funds deposited by 

VA in Personal Funds of Patients that 

were derived from VA benefits’’. 

■ b. In paragraph (d), removing the 

phrase ‘‘funds deposited by the 

Department of Veterans Affairs in 

Personal Funds of Patients derived from 

gratuitous benefits under laws 

administered by the Department of 

Veterans Affairs’’ and adding, in its 

place, ‘‘funds deposited by VA in 

Personal Funds of Patients that were 

derived from VA benefits’’. 

§ 12.5 [Amended] 

■ 7. Amend § 12.5 by: 

■ a. In paragraph (c), removing the 

phrase ‘‘gratuitous benefits deposited by 

the Department of Veterans Affairs in 

Personal Funds of Patients under laws 

administered by the Department of 

Veterans Affairs’’ and adding, in its 

place, ‘‘funds deposited by VA in 

Personal Funds of Patients that were 

derived from VA benefits’’. 

■ b. In paragraph (d), removing the 

phrase ‘‘gratuitous benefits under laws 

administered by the Department of 

Veterans Affairs’’ and adding, in its 

place, ‘‘VA benefits’’; and removing 

‘‘funds derived from gratuitous’’ and 

adding, in its place, ‘‘funds derived 

from VA’’. 

[FR Doc. 2014–26953 Filed 11–13–14; 8:45 am] 

BILLING CODE 8320–01–P 

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