Rulemaking Procedures

This document amends the ``General Provisions'' in 38 CFR Part 1 by removing Secs. 1.12 and 1.551. The regulatory history of Sec. 1.12 indicates that, despite a statutory exemption, VA intended to self- impose the notice-and-comment provisions of 5 U.S.C. 553 on VA rulemaking concerning public property, loans, grants, benefits, or contracts (see 37 FR 3552, Feb. 17, 1972). Subsequent to the promulgation of Sec. 1.12, statutory provisions were established that specifically applied the public notice-and-comment provisions of 5 U.S.C. 553 to VA rulemaking concerning ``loans, grants, or benefits'' (see 38 U.S.C. 501(d)). These statutory provisions did not impose the same notice-and-comment provisions for rulemaking concerning public property or contracts. In our view, notice-and-comment requirements for rulemaking concerning public property and contracts should only be those imposed by statute. Also, there is no need to retain the provisions of Sec. 1.551. In large part Sec. 1.551 merely contained restatements of 5 U.S.C. 552. In addition, Sec. 1.551 contained internal instructions to agency components which were not required to be promulgated as rules.