Sec.

PROVISIONAL REGULATIONS

1.985 Instructions relating to overpayments or illegal payments of insurance made to an insured under the National Service Life Insurance Act and the World War Veterans' Act.

THE FLAG OF THE UNITED STATES FOR BURIAL PURPOSES

§ 1.10 Eligibility for and disposition of the United States Flag for burial purposes—(a) Eligibility for burial flags(1) Persons eligible. (i) A veteran of any war discharged or released from active duty under conditions other than dishonorable.

(ii) A person discharged from, or released from active duty in, the Army, Navy, Air Force, Marine Corps, or Coast Guard, under conditions other than dishonorable, after serving at least one enlistment, or discharged for disability incurred in line of duty.

(iii) Any person who has died while in the military or naval service of the United States after May 27, 1941. This subdivision authorizes and requires the furnishing of a flag only where the military or naval service does not furnish a flag immediately. The only cases wherein a flag is not supplied immediately are those of persons whose remains are interred outside the continental limits of the United States, or whose remains are not recovered or are recovered and not identified.

(iv) Any person who has served in the active service of the Armed Forces of the United States on or after June 27, 1950, and prior to February 1, 1955 (Presidential Proclamation 3080), and who was discharged or released from active duty under conditions other than dishonorable.

(v) Any person who served in the organized military forces of the Commonwealth of the Philippines while such forces were in the service of the Armed Forces of the United States pursuant to the military order of the President of the United States, dated July 26, 1941, including among such military forces organized guerrilla forces under commanders appointed, designated, or subsequently recognized by the Commander in Chief, Southwest Pacific Area, or other competent authority in the Army of the United States, and who dies after separation from such service under conditions other than dishonorable, on or after April 25, 1951. (Pub. Law 21, 82d Cong.)

(b) Disposition of burial flags. (1) When a flag is actually used to drape the casket of a deceased veteran, it must be delivered to the next of kin following interment. Where the flag is not claimed by next of kin it may be given upon request to a close friend or associate of the deceased veteran. Such action will constitute final and conclusive determination of rights under this section.

(2) The phrase "next of kin" for the purpose of disposing of the flag used for burial purposes is defined as follows, with preference to entitlement in the order listed:

(1) Widow or widower.

(ii) Children, according to age, the sons having preference over the daughters (minor child may be issued a flag on application signed by guardian).

(iii) Father, including adopted, stepfather, and foster father.

(iv) Mother, including adopted, stepmother, and foster mother.

(v) Brothers or sisters, including brothers or sisters of the half blood. (vi) Uncles or aunts.

(vii) Nephews or nieces. (viii) Others-cousins, grandparents, etc. (but not in-laws).

(3) The phrase "close friend or associate" for the purpose of disposing of the burial flag means any person who because of his relationship with the deceased veteran arranged for the burial or assisted in the burial arrangements. In the absence of a person falling in either of these categories, any person who establishes by evidence that he was a close friend or associate of the veteran may be furnished the burial flag. Where more than one request for the burial flag is received and each is accompanied by satisfactory evidence of relationship or association, the Manager of the Veterans Administration station having jurisdiction of the burial flag quota will determine which applicant is the one most equitably entitled to the burial flag.

(Vet. Reg. 9 (a), as amended, sec. 2, 57 Stat. 591; 36 U. S. C. 184, 38 U. S. C. ch. 12A. Interprets or applies 65 Stat. 40; 38 U. S. C. 745) [13 F. R. 6999, Nov. 27, 1948, as amended at 17 F. R. 1616, Feb. 21, 1952; 17 F. R. 8808, Oct. 3, 1952; 18 F. R. 2880, May 19, 1953; 20 F. R. 8350, Nov. 8, 1955]

INVESTIGATION

AUTHORITY: §§ 1.450 to 1.455 issued under sec. 5, 43 Stat. 608 as amended, sec. 2, 46 Stat. 1016, sec. 7, 48 Stat. 9; 38 U. S. C. 426, 11a, 707.

SOURCE: $ 1.450 to 1.455 appear at 21 F. R. 10374, Dec. 28, 1956.

§ 1.450 Jurisdiction and responsibility for investigation. The Investigation Service of Central Office will have jurisdiction and be responsible for the making of administrative and other investigations, surveys and special studies at all levels and in all activities of the Veterans Administration, as well as of those organizations, associations, or individuals having official dealings or relationships with the Veterans Administration, as set forth in and authorized by §§ 1.451 and 1.452.

§ 1.451 Functions of Investigation Service. In performing its functions the Investigation Service will be guided by the following: There will be assigned in Central Office an adequate number of special investigators, who will conduct under the direction and supervision of the Director, Investigation Service, properly authorized investigations and perform other related duties arising therefrom or ancillary thereto. Administrative investigations will be accomplished when the occasion demands and where it is necessary to develop the evidence on a given subject through the taking of testimony and procurement of documentary evidence in connection with alleged irregularities, maladministration involving violation of Federal statutes, Veterans Administration regulations, instructions, or policies. Surveys and special studies may be conducted when the occasion arises.

§ 1.452

Authorizations for investigations, surveys and special studies-(a) Central Office. The Administrator or his designee may authorize investigations, surveys and special studies of any nature involving Central Office, district offices, regional offices, VA offices, hospitals, centers, forms and supply depots, or any activity of the Veterans Administration concerning the following:

(1) Matters involving internal administration and functioning of any office or activity.

(2) Matters involving conduct of an officer or employee of the Veterans Administration.

(3) Matters involving cooperating agencies, organizations, associations, or individuals having official dealings or relationships with the Veterans Administration.

(4) Such matters involving alleged irregularities, maladministration, violation of Federal statutes, Veterans Administration regulations, instructions. and policies, and attempts to defraud the Government by any person within or without the Veterans Administration.

(5) Cases of claimants involving administrative irregularities or the conduct of an officer or employee of the Veterans Administration incident thereto.

(6) Cases of claimants which are of a nature sufficiently serious or complex and could not otherwise be satisfactorily investigated.

(7) Such other matters as in the judgment of the Administrator or his designee require investigation, survey special study.

or

(b) Board of Veterans Appeals cases. Investigations of matters before the Board of Veterans Appeals may be approved by the Chairman, Board of Veterans Appeals under authority delegated to him by the Administrator.

(c) Field stations. Managers of district offices, regional offices, hospitals and centers, depots, or other offices shall have authority to order or approve investigations on matters involving complaints and infractions of Veterans Administration regulations or law subject to the following: loss or theft of funds or personal property, etc.; assaults upon, injuries to, and elopement of beneficiaries; and field examinations conducted by representatives from the office of the Chief Attorney, in accordance with the provisions of §§ 13.50 to 13.54 of this chapter. On serious matters and those set forth in paragraph (a) (1) through (7) of this section, a preliminary report will be forwarded for consideration of the Director, Investigation Service, with appropriate comment and recommendation. In any instance where the situation is of such gravity or so far-reaching that Central Office assistance or guidance is needed, or in matters of emergent character involving potential adverse publicity and matters involving public policy or widespread public interest, the Administrator will be immediately informed by the most rapid means of communication with an outline of the full facts and recommendations of the field station official.

§ 1.453 Cooperation of all officials on investigation. Managers, as well as other officials and employees of district offices, regional offices, hospitals and centers, depots, or other offices will at all times render every assistance and cooperation to special investigators of Central Office. This cooperation will include the temporary transfer of any claims, insurance, clinical, correspondence, or other records. Such stenographic and other necessary services as may be requested at such times and points as desired will be furnished by Managers and other comparable officials without regard for territorial limitations. This section will be cited as the authority for such action. Travel orders issued under this authority will be charged against station allotments.

§ 1.454 Unauthorized disclosure of investigative information. All testimony given in an investigation conducted by the Investigation Service and the report of investigation and its contents are for the use of the Administrator and his staff only and will not be disclosed to unauthorized persons within or without the Veterans Administration. Under no circumstances should reports of investigation or their contents be forwarded or disclosed to field stations, Managers, or other officials within or without the Veterans Administration, without clearance through and authorization by either the Administrator, Deputy Administrator, Assistant Administrator for Appraisal and Security, or the Director, Investigation Service, except those reports referred to the office of the General Counsel or the Chief Attorney for purposes of criminal prosecution or litigation, or reports of investigation authorized by the Chairman, Board of Veterans Appeals. In order that investigations may not interrupt the normal functions of a station, all employees are instructed to refrain from discussing matters under investigation either during the investigation or after its completion. Particularly those employees called upon to testify will refrain from discussing their testimony except with the investigator.

§1.455 Witnesses required to read and sign transcript. In all instances where verbatim testimony is taken and transcribed, the witness will be afforded an opportunity to read and sign the transcription, unless it is not feasible to do so, and in such cases a statement of the reason for the witness failing to sign will be

appended to the transcription, together with certification by the stenographer that it is a true and accurate transcription of the notes; or when, under unusual circumstances, sound recording equipment is used and it is impracticable for the investigator to await the return of transcribed testimony, in which event certification will be made by the special investigator as to the circumstances. RELEASE OF INFORMATION CONCERNING CLAIMANTS AND BENEFICIARIES (FROM RECORDS OF THE VETERANS' ADMINISTRATION) AUTHORITY: §§ 1.500 to 1.526 issued under sec. 5, 43 Stat. 608, as amended, sec. 2, 46 Stat. 1016, as amended; 38 U. S. C. 11a, 426. Statutory provisions interpreted or applied are cited to text in parentheses.

SOURCE: §§ 1.500 to 1.526 appear at 13 F. R. 6999, Nov. 27, 1948, except as otherwise noted.

§ 1.500 General. Files, records, reports, and other papers and documents pertaining to any claim filed with the Veterans' Administration, whether pending or adjudicated, will be deemed confidential and privileged, and no disclosure thereof or information therefrom will be made except in the circumstances and under the conditions set forth in §§ 1.501-1.526.

§ 1.501 Release of information by the Administrator when such release would serve a useful purpose. The Administrator of Veterans' Affairs or his designee may release information, statistics, or reports to individuals or organizations when in his judgment such release would serve a useful purpose.

§ 1.502 Disclosure of the amount of monetary benefits. The monthly monetary rate of pension, compensation, retirement pay, subsistence allowance, or readjustment allowance of any beneficiary shall be made known to any person who applies for such information.

§ 1.503 Disclosure of information to a veteran or his duly authorized representative as to matters concerning the veteran alone. Information may be disclosed to a veteran or his duly authorized representative as to matters concerning himself alone when such disclosure would not be injurious to the physical or mental health of the veteran. If the veteran be deceased, matters concerning him may be disclosed to his widow, children, or next of kin if such disclosure will not be injurious to the physical or mental health of the person in whose

behalf information is sought or cause repugnance or resentment toward the decedent.

$ 1.504 Disclosure of information to a widow, child, or other claimant. Information may be disclosed to a widow, widower, child, or other dependent parent or other claimant, or the duly authorized representative of any of these persons as to matters concerning such person alone when such disclosure will not be injurious to the physical or mental health of the person to whom the inquiry relates. If the person concerning whom the information is sought is deceased, matters concerning such person may be disclosed to the next of kin if the disclosures will not be injurious to the physical or mental health of the person in whose behalf the information is sought or cause repugnance or resentment toward the decedent.

§ 1.505 Genealogy. Information of a genealogical nature when its disclosure will not be detrimental to the memory of the veteran and not prejudicial, so far as may be apparent, to the interests of any living person or to the interests of the Government may be released by the Veterans' Administration or in the case of inactive records may be released by the Archivist of the United States if in his custody.

§ 1.506 Disclosure of records to Federal Government departments and State unemployment compensation agencies. All records or documents required for official purposes by any department or other agency of the United States Government or any State Unemployment Compensation Agency acting in an official capacity for the Veterans' Administration shall be furnished in response to an official request, written or oral, from such department or agency. If the requesting department or agency does not indicate the purpose for which the records or documents are requested and there is doubt as to whether they are to be used for official purposes, the requesting department or agency will be asked to specify the purpose for which they are to be used.

1.507 Disclosures to Members of Congress. Members of Congress shall be furnished in their official capacity in any case such information contained in the Veterans Administration files as may be requested for official use. However, in

any unusual case, the request will be presented to the Administrator, Deputy Administrator, Assistant Administrator, or department head for personal action. When the requested information is of a type which may not be furnished a claimant, the Member of Congress shall be advised that the information is furnished to him confidentially in his official capacity and should be so treated by him. (See Vet. Reg. 11, 38 U. S. C. ch. 12A.) Information concerning the beneficiary designation of a United States Government life insurance or National Service life insurance policy is deemed confidential and privileged and during the insured's lifetime shall not be disclosed to anyone other than the insured or his duly appointed fiduciary unless the insured or the fiduciary authorizes the release of such information. [21 F. R. 10375, Dec. 28, 1956]

§ 1.508 Disclosure in cases where claimants are charged with or convicted of criminal offenses. (a) Where incompetent claimants are charged with, or convicted of, offenses other than those growing out of their relationship with the Veterans Administration and in which it is desired to disclose information from the files and records of the Veterans Administration, the Chief Attorney, Chief Benefits Director, Department of Veterans Benefits, or the General Counsel if he deems it necessary and proper, may disclose to the court having jurisdiction so much of the information from the files and records of the Veterans Administration relating to the mental condition of such beneficiaries, the same to be available as evidence, as may be necessary to show the mental condition of the accused and the time of its onset. This provision, however, does not alter the general procedure for handling offenses growing out of relations with the Veterans Administration.

(b) When desired by a United States district court, the Chief Attorney or the General Counsel may supply information as to whether any person charged with crime served in the military or naval service of the United States and whether the Veterans Administration has a file on such person. If the file is desired either by the court or by the prosecution or defense, it may be produced only in accord with these regulations.

[21 F. R. 10375, Dec. 28, 1956. Correction noted at 22 F. R. 1720, Mar. 16, 1957]

$ 1.509 Disclosure to courts in proceedings in the nature of an inquest. The Chief Benefits Director, Department of Veterans Benefits, Chief Attorneys, and Managers are authorized to make disclosures to courts of competent jurisdiction of such files, records, reports, and other documents as are necessary and proper evidence in proceedings in the nature of an inquest into the mental competency of claimants and other proceedings incident to the appointment and discharge of guardians, curators, or conservators to any court having jurisdiction of such fiduciaries in all matters of appointment, discharge, or accounting in such courts.

[21 F. R. 10375, Dec. 28, 1956]

§ 1.510 Disclosure to insurance companies cooperating with the Department of Justice in the defense of insurance suits against the United States. Copies of records from the files of the Veterans Administration will, in the event of litigation involving commercial insurance policies issued by an insurance company cooperating with the Department of Justice in defense of insurance suits against the United States, be furnished to such companies without charge, provided the claimant or his duly authorized representative has authorized the release of the information contained in such records. If the release of information is not authorized in writing by the claimant or his duly authorized representative, information contained in the files may be furnished to such company if to withhold same would tend to permit the accomplishment of a fraud or miscarriage of justice. However, before such information may be released without the consent of the claimant, the request therefor must be accompanied by an affidavit of the representative of the insurance company, setting forth that litigation is pending, the character of the suit, and the purpose for which the information desired is to be used. If such information is to be used adversely to the claimant, the affidavit must set forth facts from which it may be determined by the General Counsel or Chief Attorney whether the furnishing of the information is necessary to prevent the perpetration of a fraud or other injustice. The averments contained in such affidavit should be considered in connection with the facts shown by the claimant's file, and, if such consideration shows the disclosure of the record is necessary and

proper to prevent a fraud or other injustice, information as to the contents thereof may be furnished to the insurance company or copies of the records may be furnished to the court, workmen's compensation, or similar board in which the litigation is pending upon receipt of a subpoena duces tecum addressed to the Administrator of Veterans' Affairs, or the Manager of the office in which the records desired are located. In the event the subpoena requires the production of the file, as distinguished from the copies of the records, no expense to the Veterans Administration may be involved in complying therewith, and arrangements must be made with the representative of the insurance company causing the issuance of the subpoena to insure submission of the file to the court without expense to the Veterans Administration.

[21 F. R. 10375, Dec. 28, 1956]

§ 1.511 Judicial proceedings generally. (a) Where a suit has been threatened or instituted against the Government, or a prosecution against a claimant has been instituted or is being contemplated, the request of the claimant or his duly authorized representative for information, documents, reports, etc., shall be acted upon by the General Counsel in Central Office, or the Chief Attorney in the field station, who shall determine the action to be taken with respect thereto. Where the files have been sent to the Department of Justice in connection with any such suit, the request will be referred to the Department of Justice, Veterans Affairs Section, Washington, D. C., through the office of the General Counsel, for attention. In all other cases where copies of documents or records are desired by or on behalf of parties to a suit, whether in a court of the United States or any other, such copies shall be furnished as provided in paragraph (d) of this section; otherwise to the court only, and on an order of the court or subpoena duces tecum addressed to the Administrator of Veterans' Affairs or the Manager of the field station in which the records desired are located requesting the same. The determination as to the action to be taken upon any order received in this class of cases shall be made by the service having jurisdiction over the subject matter in Central Office or the division having jurisdiction over the subject matter in the field station, except in those cases