Document ID: FEMA-2005-0001-0038
Agency: fema
Document Type: Rule
Title: Assistance Program Under the 9/11 Heroes Stamp Act of 2001
Posted Date: 2008-05-16T04:00Z

[Federal Register: May 16, 2008 (Volume 73, Number 96)]
[Rules and Regulations]               
[Page 28357-28361]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16my08-6]                         

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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

44 CFR Part 153

[Docket ID FEMA-2005-0001; Legacy ID DHS-2005-0006]
RIN 1660-AA34

 
Assistance Program Under the 9/11 Heroes Stamp Act of 2001

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Final rule.

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SUMMARY: The 9/11 Heroes Stamp Act of 2001 directed the United States 
Postal Service to issue a semipostal stamp and distribute the proceeds 
through the Federal Emergency Management Agency (FEMA) to the families 
of emergency relief personnel killed or permanently disabled while 
serving in the line of duty in connection with the terrorist attacks 
against the United States on September 11, 2001. In response, FEMA 
issued interim regulations that governed the distribution of those 
funds. Now that all funds have been distributed and all appeals 
resolved, FEMA is issuing this Final rule to remove the interim 
regulations from the Code of Federal Regulations.

DATES: This final rule is effective May 16, 2008.

FOR FURTHER INFORMATION CONTACT: Jotham Allen, Office of Chief Counsel, 
Federal Emergency Management Agency, Department of Homeland Security, 
500 C Street, SW., Room 840, Washington, DC 20472, (phone) 202-

[[Page 28358]]

646-1957, (facsimile) 202-646-4536, or (e-mail) Jotham.allen@dhs.gov.

SUPPLEMENTARY INFORMATION:

I. Background

    The 9/11 Heroes Stamp Act of 2001, Public Law 107-67, sec. 652, 115 
Stat. 557 (Nov. 12, 2001) (Heroes Stamp Act), directed the United 
States Postal Service (USPS) to issue a semipostal stamp and distribute 
the proceeds through the Federal Emergency Management Agency (FEMA) to 
the families of emergency relief personnel killed or permanently 
disabled while serving in the line of duty in connection with the 
terrorist attacks against the United States on September 11, 2001.
    A semipostal stamp is a type of postage that is sold for a value 
greater than that of a regular first class stamp. The proceeds from the 
price differential between the sale price of the stamp and the cost of 
the postage fund the distribution, minus the USPS' cost to produce and 
distribute the stamps. No administrative costs were deducted by FEMA. 
The USPS issued the Heroes semipostal stamp in June 2002, and stopped 
selling it on December 31, 2004. The sum of $10,565,073.61 was provided 
to FEMA by USPS from stamp sales during that time period.
    On July 26, 2005, FEMA published an interim rule at 70 FR 43214 
establishing a program to distribute the funds raised from the sale of 
the Heroes semipostal stamp. Under the program, eligible claimants were 
those emergency relief personnel acting in their official capacity who 
were permanently physically disabled, or the families of such personnel 
who were killed in the line of duty while serving at the World Trade 
Center, Pentagon, or Shanksville, PA site in connection with the 
terrorist attacks against the United States on September 11, 2001. In 
determining whether a claimant had a permanent physical disability, 
FEMA relied on determinations made by appropriate Federal, State, and 
local agencies, as well as appropriate private entities.
    The interim rule also created an appeals process. This process 
allowed an applicant to appeal a determination made by FEMA that the 
applicant was not eligible. The applicant was required to submit a 
notice of intent to appeal within 15 calendar days of the issuance of 
FEMA's determination of eligibility. The written appeal could not 
exceed 15 pages, exclusive of supporting documentation, and had to be 
submitted within 60 calendar days of the issuance of FEMA's 
determination of eligibility. New documentation was accepted on appeal. 
Appeals determinations were made by the Appeals Specialist in FEMA's 
Office of Dispute Resolution.
    The amount of assistance granted under the Heroes Stamp Act was 
within FEMA's discretion. The interim final rule established that FEMA 
would, to the extent possible, distribute the funds equally among all 
eligible claimants until the fund was liquidated. Multiple 
distributions were allowed with monies set aside for applicants who 
appealed their initial determination of ineligibility. On December 7, 
2005, FEMA published a notice (70 FR 72845) that announced that the 
application period for the Assistance Program Under the 9/11 Heroes 
Stamp Act of 2001 would run from December 2, 2005 to April 3, 2006.
    Eligibility determinations were made by the Heroes Stamp Panel who 
conducted nine meetings between February and November 2006 to make the 
determinations. Applicants were considered on a rolling basis and were 
informed of their eligibility decisions by United States mail. Of the 
1,945 total applications received during the application period, the 
Panel deemed 1,356 eligible. Each applicant received a letter notifying 
them of their eligibility determination, and for those deemed eligible, 
FEMA provided an Electronic Funds Transfer form to be completed and 
returned to FEMA. Between November 2006 and April 2007, FEMA 
distributed $7,400 to each eligible applicant, who supplied the 
necessary banking information for the Electronic Funds Transfer.
    Of the 589 applicants found ineligible, 64 submitted appeals. 
During the appeals process, 21 of these applicants submitted additional 
information and were found eligible. This brought the total number of 
eligible applicants to 1,377. In July 2007, the remaining amount of the 
fund was distributed. In total, 1,357 of the eligible applicants 
received $7,672.53; the final 20 applicants received $7,672.52. This 
difference was required in order to liquidate the entire amount of the 
funds raised.

II. Discussion of Public Comments

    FEMA received 36 comments from the public regarding the interim 
rule. The comments received, together with FEMA's responses, are set 
forth below. All previously published rulemaking documents, as well as 
all comments received are available in the public docket for this 
rulemaking. The public docket for this rulemaking is available online 
by conducting a search for Docket ID FEMA-2005-0001 or Legacy ID DHS-
2005-0006, at the Federal e-Rulemaking Portal at www.regulations.gov.
    Continuation of semipostal stamp: Two comments suggested that the 
Heroes semipostal stamp should be continued. FEMA could not implement 
this suggestion. The Heroes Stamp Act specified that the stamp be 
issued for such period of time that USPS considered necessary and 
appropriate, but in no event could it continue issuing the stamp after 
December 31, 2004. USPS discontinued selling the Heroes semipostal 
stamp on December 31, 2004.
    Eligibility: Seven comments suggested that iron, steel, and 
construction workers should be included in the definition of emergency 
relief personnel; one comment expressed concern that HAZMAT response 
teams might not be eligible under the program; seven comments suggested 
that the funds should be available to all victims of September 11, 
2001, not just emergency relief personnel; three comments suggested 
that non-uniformed volunteers should be eligible to receive funds; and 
another commenter suggested that the funds should only be distributed 
to rescue workers and emergency volunteers who have been disabled and 
that the funds should not be distributed to the police and firefighter 
families unless there are extenuating circumstances.
    While FEMA recognizes that iron, steel, and construction workers 
performed an invaluable service in response to the terrorist attacks of 
September 11, 2001, FEMA determined that these workers did not fall 
within the statutory definition of emergency relief personnel set out 
in the Heroes Stamp Act. The statutory definition of emergency relief 
personnel included a specific list of occupations, which did not 
include iron, steel, or construction workers. It included firefighters, 
law enforcement officers, paramedics, emergency medial technicians, and 
members of the clergy. The Heroes Stamp Act did provide for inclusion 
in that definition ``other individuals (including employees of legally 
organized and recognized volunteer organizations, whether compensated 
or not) who, in the course of professional duties, respond to fire, 
medical, hazardous material, or other similar emergencies.'' FEMA 
determined that iron, steel, and construction workers do not fall under 
the statutory definition because they do not typically respond, in the 
course of their professional duties, to fire, medical, hazardous 
material, or other similar emergencies.
    The language of the statute also limited FEMA from distributing the

[[Page 28359]]

funds to all victims of the September 11, 2001 attacks, or to all 
individuals who provided assistance. The Heroes Stamp Act directed that 
the funds were for emergency workers who had been permanently disabled 
and the families of emergency workers killed. The Heroes Stamp Act 
contained no provisions regarding other civilian victims. Furthermore, 
the Act did not give FEMA discretion relating to need or extenuating 
circumstances. It was left to FEMA's discretion to determine the 
distribution of the funds, and it decided to distribute funds equally 
among all eligible applicants, including the families of police and 
firefighters.
    With respect to HAZMAT responders, FEMA did consider them to be in 
an eligible class of responders. The interim rule used the same 
definition for emergency relief personnel as the Heroes Stamp Act, 
which includes response to hazardous material: ``firefighters, law 
enforcement officers, paramedics, emergency medical technicians, 
members of the clergy, or other individuals * * * who, in the course of 
professional duties, respond to fire, medical, hazardous material, or 
other similar emergencies'' (emphasis added). Although FEMA did not 
keep a tally sheet of each class of worker who received funds from sale 
of the stamp, FEMA would have considered a HAZMAT worker to be well 
within the statutory definition of emergency relief personnel set out 
in the Heroes Stamp Act.
    Amount of funds distributed to each applicant: Three comments 
suggested that the funds raised through the sale of the Heroes 
semipostal stamp should be divided equally among all eligible 
applicants, while one comment suggested that those applying on behalf 
of deceased individuals should receive larger distribution than 
permanently disabled applicants. It was also suggested that geographic 
cost of living differences should be taken into account.
    The Heroes Stamp Act left the manner of distribution within FEMA's 
discretion. The funds were, to the extent possible, distributed equally 
among the eligible applicants. Factors considered by FEMA in its 
decision included the limited funds available to distribute, FEMA's 
limited ability to assess degrees of disability, and an inherent sense 
of fairness in providing everyone the same amount.
    Interest: One comment questioned whether interest was earned on the 
funds, and suggested that any earned interest should be distributed to 
the applicants. Interest was not earned on the funds. Funds generated 
as the result of a statute, such as the Heroes Stamp Act, that 
authorizes the imposition and collection of specific charges and the 
use of the funds generated, are appropriated funds. In the absence of 
an express provision in the statute to the contrary, the funds are 
subject to the various restrictions and limitations on the uses of 
appropriated moneys (35 Comp. Gen. 615 (1956), 57 Comp. Gen. 311 
(1978)). Given that these funds are appropriations, and lacking any 
specific statutory authority to invest and retain interest in the 
established fund or account, the accretions would have been required to 
be deposited to the Miscellaneous Receipts of the Treasury. (31 U.S.C. 
3302) FEMA was prohibited from distributing any earned interest to the 
applicants, and therefore opted not to deposit the funds in an interest 
bearing account.
    Distribution by FEMA: One comment asked why FEMA was distributing 
the funds. In the Heroes Stamp Act, Congress directed USPS to transfer 
the funds to FEMA to carry out distribution.
    Date of distribution unclear: Three comments noted that the interim 
final rule did not include a date of distribution. A number of factors 
precluded FEMA from providing a date of distribution in the interim 
rule. First, the interim final rule did not include an application 
period. At that point, before the application period had been 
determined, it would not have been feasible to set a date of 
distribution. Additionally, when the interim rule was published FEMA 
had no way to determine the number of applications it would receive. 
Finally, because funds were distributed through Electronic Funds 
Transfer, the timing of distribution to each applicant depended on how 
quickly the applicant provided banking information.
    Complicated application process: One comment stated that the 
application process was too complicated. FEMA made every effort to make 
the application process as simple as possible. The application 
contained detailed instructions, FEMA set up a dedicated phone number 
and e-mail address for questions or concerns, and questions were 
answered clearly and promptly. Additional information, including a copy 
of the interim rule was made available on the United States Fire 
Administration's Web site.
    Unclear appeal process: Two commenters stated that the interim 
final rule was unclear regarding timelines and deadlines for the 
appeals process. FEMA disagrees. To appeal an ineligibility 
determination, applicants were required to submit to FEMA's Appeals 
Specialist a notice of intent to appeal within 15 calendar days of the 
issuance of FEMA's determination of eligibility. The notice was 
required to contain a brief statement explaining why the applicant 
believed the determination was incorrect. Within 60 calendar days after 
the issuance of FEMA's determination, the applicant was required to 
submit their full written appeal, not to exceed 15 pages exclusive of 
supporting documentation. The address to submit the notice of intent to 
appeal and the appeal were also provided. This information was detailed 
in Sec.  153.8 of the rule. It was also restated, along with the reason 
for their denial, in the letters that were sent to applicants who were 
denied.
    Contact family of victims: One comment suggested that applications 
from affected personnel or their survivors should be compared to known 
names of victims to make sure no families are missed. FEMA made every 
effort to publicize the Heroes Stamp Program to ensure that all 
potentially eligible people would be aware of the program and its 
requirements. In addition to the interim rule and postings on the 
United States Fire Administration Web page, several outreach efforts 
were conducted prior to and early in the application process. These 
included face to face briefings with impacted New York City agencies 
and their labor unions, and discussions with agencies in Shanksville, 
PA, and emergency relief agencies in areas surrounding the Pentagon. 
Broadcast e-mails also were forwarded to all of the urban search and 
rescue (USAR) teams that assisted at the three locations. The media 
also carried stories regarding the availability of the program and how 
to apply. Finally, the New York City Police Department, Fire 
Department, and Port Authority all cooperated and coordinated with the 
Heroes Stamp Project office by providing special assistance and 
individual notification directly to survivors of the deceased about how 
to avail themselves of the program.
    Permanent disability should not be required: One comment suggested 
that eligible injuries should not be required to be permanent 
disabilities, and two comments suggested that those with permanent 
mental disabilities should be eligible as well as those with permanent 
physical disabilities. The Heroes Stamp Act specifically limited the 
assistance to emergency relief personnel killed or permanently 
disabled. Congress left FEMA no discretion in this area. The Heroes 
Stamp Act did not, however, define the term ``permanently disabled''. 
Within its discretion, FEMA decided that the intent of the Heroes Stamp 
Act

[[Page 28360]]

was best met by interpreting that term to mean physically disabled. 
Validating ``permanent mental disabilities'' was found to be too 
difficult. Further, considering the relatively small amount of funds 
FEMA had to distribute, it was determined that further widening 
eligibility would further reduce the amount of funds available for 
distribution to those with clear cut permanent physical disabilities.
    Focus on Pentagon and Shanksville, PA: One comment suggested that 
the program should focus on those who responded to the events in 
Shanksville, PA and at the Pentagon. The Heroes Stamp Act directed that 
the funds be made available to the families of emergency workers killed 
or permanently disabled while serving in the line of duty while 
responding to the terrorist attacks against the United States on 
September 11, 2001. FEMA believed that the Congressional intent was for 
the funds to be available to personnel injured or killed in response to 
all of the terrorist attacks against the United States on September 11, 
2001. Since the terrorist attacks on September 11, 2001 took place at 
the World Trade Center, the Pentagon, and Shanksville, Pennsylvania, 
the interim rule made clear that all three locations were included in 
the program.
    Portion for support agencies: One comment suggested that a portion 
of the funds should be directed to nonprofit World Trade Center 
agencies. The Heroes Stamp Act was clear that the funds were to be 
distributed to the emergency relief workers themselves or their 
families. The interim rule followed this statutory language. Congress 
left FEMA no discretion in this area.
    Original intent of legislation: Two comments asked that FEMA follow 
the original intent of the Heroes Stamp Act. FEMA agreed. The Heroes 
Stamp Act states that the semipostal stamp was to be issued ``in order 
to afford the public a direct and tangible way to provide assistance to 
the families of emergency relief personnel killed or permanently 
disabled in the line of duty in connection with the terrorist attacks 
against the United States on September 11, 2001.'' The Heroes Stamp Act 
directed FEMA to carry out this purpose. FEMA, within its discretion, 
promulgated the interim rule and distributed the funds in order to best 
carry out this intent.
    Determinations: One comment suggested that the interim rule was 
unclear as to who would review applications and make final 
determinations on eligibility. The Heroes Stamp Act contained no 
provisions relating to the review process. Within its discretion, FEMA 
formed a Heroes Stamp Panel which conducted 9 meetings between February 
and November 2006 to make the final eligibility determinations on all 
1,945 applications. The panel's five members represented FEMA's Office 
of Chief Counsel (formerly the Office of General Counsel), the Office 
of Legislative Affairs, and the United States Fire Administration. In 
making their final eligibility determinations, these individuals 
largely relied upon determinations of permanent physical disability 
made by appropriate Federal, State, and local agencies, as well as 
appropriate private entities.

III. Regulatory Requirements

A. Administrative Procedure Act

    As noted in the interim rule, FEMA found good cause under 5 U.S.C. 
553(d)(3) to issue an interim rule which would take effect upon the 
closure of the comment period because delay would be impracticable in 
light of the eligible individuals' need for relief. FEMA also noted 
that prompt disbursement of the benefits from the Heroes Stamp sales 
proceeds was in the public interest. FEMA received no adverse comments 
as to the finding of good cause.
    Now that all funds have been distributed and all appeals resolved, 
FEMA is removing the regulatory text from the Code of Federal 
Regulations. FEMA again finds good cause not to take public comment or 
wait 30 days before making this rule effective under 5 U.S.C. 553(b) 
and (d). Because all of the funds available from the sale of the Heroes 
Stamp have been distributed, and all appeals have been resolved, there 
is no longer any need for these regulations. Allowing public comment 
and/or delaying the effectiveness of this rule for 30 days is 
unnecessary.

B. Executive Order 12866, Regulatory Planning and Review

    FEMA prepared and reviewed this rulemaking under the provisions of 
Executive Order 12866, Regulatory Planning and Review. Although the 
interim rule was determined to be a significant, but not economically 
significant regulatory action, now that all funds have been distributed 
and all appeals resolved these regulations no longer serve a purpose to 
FEMA or the public. OMB has determined that this rule is not a 
significant regulatory action. OMB has not reviewed this rule.

C. Regulatory Flexibility Act

    Under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.), as 
amended by the Small Business Regulatory Enforcement Fairness Act of 
1996 (Pub. L. 104-121, 110 Stat. 857), FEMA is not required to prepare 
a final regulatory flexibility analysis for this final rule because the 
agency has not issued a notice of proposed rulemaking.

D. National Environmental Policy Act (NEPA)

    In the interim rule, FEMA determined that this rule fell within the 
exclusion category of 44 CFR 10.8(d)(2)(ii), which excludes from NEPA 
requirements the preparation, revision, adoption of regulations, 
directives, manuals, and other guidance documents related to actions 
that qualify for categorical exclusions. No commenters disagreed with 
our determination. The rulemaking provided for disbursement of funds 
received from the sale of the Heroes Stamp to emergency relief 
personnel who were permanently disabled while serving in the line of 
duty in connection with the terrorist attacks against the United States 
on September 11, 2001, or to the families of such personnel who were 
killed in such line of duty. The rule had no significant effect on the 
human environment. Because no other extraordinary circumstances have 
been identified, this rule does not require the preparation of either 
an environmental assessment or an environmental impact statement as 
defined by NEPA.

E. Executive Order 12898, Environmental Justice

    Under Executive Order 12898, ``Federal Actions to Address 
Environmental Justice in Minority Populations and Low-Income 
Populations,'' 59 FR 7629, February 16, 1994, each Federal agency is 
required to conduct its programs, policies, and activities that 
substantially affect human health or the environment in a manner that 
ensures that those programs, policies, and activities do not have the 
effect of excluding persons from participation, denying persons 
benefits of our programs, or subjecting persons to discrimination 
because of their race, color, or national origin.
    This final rule removes regulations that implemented the 9/11 
Heroes Stamp Act of 2001. The Heroes Stamp Act provided for the sale of 
the Heroes Stamp and for disbursement of the proceeds to emergency 
relief personnel who were permanently disabled while serving in the 
line of duty in connection with the terrorist attacks against the 
United States on September 11, 2001, or to the families of such 
personnel who were killed in such line of duty. There were no effects 
on human health or the environment as a result of this

[[Page 28361]]

rulemaking, and the Heroes Stamp funds were distributed without regard 
to race, color, or national origin; thus the requirements of Executive 
Order 12898 do not apply to this rule.

F. Congressional Review of Agency Rulemaking

    FEMA has sent this final rule to the Congress and to the Government 
Accountability Office under the Congressional Review of Agency 
Rulemaking Act, 5 U.S.C. 801-808. The rule is not a ``major rule'' 
within the meaning of that Act. This rule will not result in a major 
increase in costs or prices for consumers, individual industries, 
Federal, State, or local government agencies, or geographic regions. It 
will not have ``significant adverse effects'' on competition, 
employment, investment, productivity, innovation, or on the ability of 
United States-based enterprises to compete with foreign-based 
enterprises.

G. Unfunded Mandates Reform Act

    This rule is not an unfunded mandate within the meaning of the 
Unfunded Mandates Reform Act of 1995, 5 U.S.C. 1531-1538. This rule 
will not result in the expenditure by State, local, and tribal 
governments, in the aggregate, nor by the private sector, of 
$100,000,000 or more in any one year, and it will not significantly or 
uniquely affect small governments. Therefore, no action is required by 
the provisions of the Unfunded Mandates Reform Act of 1995.

H. Executive Order 13132, Federalism

    Executive Order 13132, ``Federalism,'' (64 FR 43255, August 10, 
1999), sets forth principles and criteria that agencies must adhere to 
in formulating and implementing policies that have federalism 
implications. This rule provided for the distribution of funds 
collected from the sale of the semipostal Heroes Stamp. It had no 
substantial direct effects on the States, on the relationship between 
the National Government and the States, or on the distribution of power 
and responsibilities among the various levels of government. It did not 
preempt any State laws. As noted in the interim rule, FEMA determined 
that this rule did not have sufficient federalism implications 
sufficient to warrant the preparation of a federalism impact statement. 
This final action which removes the interim regulations likewise has no 
federalism implications.

I. Paperwork Reduction Act

    The interim rule contained information collection requirements 
subject to the Paperwork Reduction Act of 1995 (PRA), 44 U.S.C. 3501 et 
seq. Under the PRA, a person may not be penalized for failing to comply 
with an information collection that does not display a currently valid 
OMB control number. The information collection, which includes FEMA 
Form 75-14, the 9/11 Heroes Stamp Act of 2001 Eligibility and 
Application for Benefits form, was approved under OMB number 1660-0091 
with an expiration date of July 2008. The Paperwork Reduction Act 
Collection Discontinuation Form for 1660-0091 was filed on August 15, 
2007.

J. Executive Order 13175, Consultation With and Coordination With 
Indian Tribal Governments

    FEMA has reviewed this rule under Executive Order 13175, 
``Consultation and Coordination with Indian Tribal Governments'' (65 FR 
67249, November 9, 2000). This rule does not have a substantial direct 
effect on one or more Indian tribes, on the relationship between the 
Federal Government and Indian tribes, or on the distribution of power 
and responsibilities between the Federal Government and Indian tribes.

K. Executive Order 12988, Civil Justice Reform

    FEMA has reviewed this rule under Executive Order 12988, ``Civil 
Justice Reform'' (61 FR 4729, February 7, 1996). This rule meets 
applicable standards to minimize litigation, eliminate ambiguity, and 
reduce burden.

List of Subjects in 44 CFR Part 153

    Disaster assistance, Emergency relief personnel, Terrorism.

0
Accordingly, for the reasons stated in the preamble, and under the 
authority of 5 U.S.C. 301 and 6 U.S.C. 101 et seq., FEMA amends 44 CFR 
chapter 1, by removing part 153.

PART 153--[REMOVED AND RESERVED]

R. David Paulison,
Administrator, Federal Emergency Management Agency.
[FR Doc. E8-10936 Filed 5-15-08; 8:45 am]

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