[Federal Register Volume 74, Number 130 (Thursday, July 9, 2009)]
[Rules and Regulations]
[Pages 32788-32798]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-15596]
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DEPARTMENT OF AGRICULTURE
Cooperative State Research, Education, and Extension Service
7 CFR Part 3431
RIN 0524-AA43
Veterinary Medicine Loan Repayment Program (VMLRP)
AGENCY: Cooperative State Research, Education, and Extension Service,
USDA.
ACTION: Interim final rule and request for comments.
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SUMMARY: This interim final rule establishes the process and procedures
for designating veterinarian shortage situations, specifically for the
Veterinary Medicine Loan Repayment Program (VMLRP) authorized by the
National Veterinary Medical Service Act (NVMSA) and administered by the
Cooperative State Research, Education, and Extension Service (CSREES)
of the U.S. Department of Agriculture. CSREES will designate geographic
and practice areas that have a shortage of food supply veterinarians in
order to carry out the VMLRP goals of strengthening the nation's animal
health infrastructure and supplementing the Federal response during
animal health emergencies. CSREES will carry out NVMSA by entering into
educational loan repayment agreements with veterinarians who agree to
provide veterinary services in veterinarian shortage situations for a
determined period of time. CSREES is establishing Subpart A for the
designation of the veterinarian shortage situations and Subpart B for
the administration of the VMLRP.
DATES: This rule is effective July 9, 2009. The Agency must receive
comments by September 8, 2009 for them to be considered in the final
rule.
ADDRESSES: You may submit comments, identified by RIN 0524-AA43, by any
of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov. Follow the
instructions for submitting comments.
E-mail: [email protected]. Include Regulatory Information
Number (RIN) number 0524-AA43 in the subject line of the message.
Fax: 202-401-7752.
Mail: Paper, disk or CD-ROM submissions should be submitted to
Cooperative State Research, Education, and Extension Service; U.S.
Department of Agriculture, STOP 2299, 1400 Independence Avenue, SW.,
Washington, DC 20250-2299.
Hand Delivery/Courier: Cooperative State Research, Education, and
Extension Service, U.S. Department of Agriculture, Room 2258,
Waterfront Centre, 800 9th Street, SW., Washington, DC 20024.
Instructions: All submissions received must include the agency name
and the RIN for this rulemaking. All comments received will be posted
without change to http://www.regulations.gov, including any personal
information provided.
FOR FURTHER INFORMATION CONTACT: Gary Sherman, National Program Leader,
Veterinary Science, Cooperative State Research, Education, and
Extension Service, U.S. Department of Agriculture, STOP 2220, 1400
Independence Avenue, SW., Washington, DC 20250-2220; Voice: 202-401-
4952; Fax: 202-401-6156; e-mail: [email protected].
SUPPLEMENTARY INFORMATION:
Background and Purpose
In January 2003, the National Veterinary Medical Service Act
(NVMSA) was passed into law, adding section 1415A to the National
Agricultural Research, Extension, and Teaching Policy Act of 1997
(NARETPA). This law established a new Veterinary Medicine Loan
Repayment Program (7 U.S.C. 3151a) authorizing the Secretary of
Agriculture to carry out a program of entering into agreements with
veterinarians under which they agree to provide veterinary services in
veterinarian shortage situations. In November 2005, the Agriculture,
Rural Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2006 (Pub. L. 109-97) appropriated $495,000 for
CSREES to implement the Veterinary Medicine Loan Repayment Program and
represented the first time funds had been appropriated for this
program. In February 2007, the Revised Continuing Appropriations
Resolution, 2007 (Pub. L. 110-5) appropriated an additional $495,000 to
CSREES for support of the program, and in December 2007, the
[[Page 32789]]
Consolidated Appropriations Act, 2008 appropriated an additional
$868,875 to CSREES for support of this program. On March 11, 2009, the
Omnibus Appropriations Act, 2009 (Pub. L. 111-8) was enacted, providing
an additional $2,950,000 for the VMLRP. Consequently, there is a
cumulative total of approximately $4.8 million available for CSREES to
administer this program. Funding for future years will be based on
annual appropriations and balances from prior years, and will likely
vary from year to year.
Section 7105 of the Food, Conservation, and Energy Act of 2008,
Public Law 110-246 (FCEA) amended section 1415A to revise the
determination of veterinarian shortage situations to consider (1)
geographical areas that the Secretary determines have a shortage of
veterinarians; and (2) areas of veterinary practice that the Secretary
determines have a shortage of veterinarians, such as food animal
medicine, public health, epidemiology, and food safety. This section
also added that priority should be given to agreements with
veterinarians for the practice of food animal medicine in veterinarian
shortage situations.
NARETPA section 1415A requires the Secretary, when determining the
amount of repayment for a year of service by a veterinarian, to
consider the ability of USDA to maximize the number of agreements from
the amounts appropriated and to provide an incentive to serve in
veterinary service shortage areas with the greatest need. This section
also provides that loan repayments may consist of payments of the
principal and interest on government and commercial loans received by
the individual for the attendance of the individual at an accredited
college of veterinary medicine resulting in a degree of Doctor of
Veterinary Medicine or the equivalent. Please note that this program is
not authorized to provide repayments for any government or commercial
loans incurred during the pursuit of another degree, such as an
associate or bachelor degree and, consequently, any consolidated loans
(e.g., combined loans for bachelor and Doctor of Veterinary Medicine
degrees). Loans eligible for repayment include educational loans made
for one or more of the following: Loans for tuition expenses; other
reasonable educational expenses, including fees, books, and laboratory
expenses, incurred by the individual; and reasonable living expenses as
determined by the Secretary. In addition, the Secretary is directed to
make such additional payments to participants as the Secretary
determines appropriate for the purpose of providing reimbursements to
participants for individual tax liability resulting from participation
in this program. Finally, this section requires USDA to promulgate
regulations within 270 days of the enactment of FCEA (i.e., June 18,
2008). The Secretary delegated the authority to carry out this program
to CSREES.
Solicitation of Stakeholder Input
On August 29, 2008, CSREES published a Federal Register notice [73
FR 50928-50929] announcing a public meeting to be held on Monday,
September 15, 2008, at the Waterfront Centre in Washington, DC, to
solicit stakeholder input as well as the instructions on how to submit
written comments by Tuesday, September 30, 2008, on the implementation
of VMLRP.
CSREES received oral and written comments from the following
veterinary professional associations and organizations: American
Veterinary Medical Association (AVMA), Association of American
Veterinary Medical Colleges (AAVMC), American College of Veterinary
Microbiologists (ACVM), American Association of Veterinary Laboratory
Diagnosticians (AAVLD), American College of Veterinary Pathologists
(ACVP), National Cattlemen's Beef Association (NCBA), Texas Cattle
Feeders Association (TCFA), and Ohio's Cattlemen Association (OCA) as
well as a comprehensive joint statement from AVMA and the AAVMC. In
addition, CSREES received 27 comments from individuals, most of whom
were students at veterinary colleges. CSREES considered all comments
received in the development of this interim rule.
As the trade association of America's cattle farmers and ranchers,
the NCBA commented that the implementation of VMLRP would ``ease the
shortage of veterinarians in rural areas, encourage more veterinarians
to go into food animal practice, retain food animal veterinarians in
rural practices, and help better protect our nation's livestock
herds.'' The NCBA further commented that livestock producers rely on
their local veterinarian for guidance to ensure herd management,
disease control, and food product safety; and that the increased
complexity of pharmaceutical and biological product use requires
additional veterinarian supervision for producers. The NCBA believes
that practicing food animal veterinarians is the veterinarian shortage
situation with the greatest need. In addition, NCBA feels strongly that
the program must be simple and uncomplicated and that administrative
costs must be minimized to maximize the number of agreements executed.
The TCFA submitted a comment stating that they agree with and support
the NCBA comments.
The OCA urged USDA not to stray from the original intent of the
legislation to increase the number of practicing food animal
veterinarians in rural areas. OCA also stated that Ohio has a very
significant shortage of food animal veterinarians and that this program
would provide an incentive for veterinarians to practice in underserved
rural areas. OCA encouraged flexibility in determining the veterinarian
shortage situation as sometimes the lack of food animal veterinarians
actually contributes to a reduced number of livestock in the area.
Finally, OCA commented on the important role that food animal
veterinarians play in the production of a safe and wholesome food
supply.
The ACVM, the AAVLD, and the ACVP commented that there are acute
shortages of trained veterinarians in disciplines such as pathology,
microbiology, toxicology, and parasitology and that often these
specialized disciplines require an additional three years of study
which contributes to the student debt load, thus presenting a potential
barrier to students wishing to pursue further study in these
disciplines. These disciplines contribute to the animal, human, and
environmental health and the economic well-being of society by engaging
in some of the following objectives and activities: Diagnosing disease
in food-producing and companion animals (i.e., pets); ensuring safety
in food, pharmaceuticals and biological products; and maintaining
vigilance against outbreaks of new and emerging diseases. The AAVLD
commented that it has recognized for a number of years a severe
shortage of veterinarians to staff its diagnostic laboratories. AAVLD
laboratories work with USDA in surveillance for, response to, and
recovery from foreign animal diseases, and recognition of emerging
diseases, primarily through the National Animal Health Laboratory
Network (NAHLN). According to AAVLD, many of its laboratories work
closely with the Center for Disease Control (CDC) in the Laboratory
Response Network (LRN), or with the Food and Drug Administration (FDA)
in the Food Emergency Response Network (FERN). All three organizations
commented that they wished the VMLRP would be made available to
veterinarians willing to pursue residencies or advanced degrees in the
above-mentioned disciplines.
In their joint comprehensive set of comments, the AVMA and the
AAVMC
[[Page 32790]]
stated that it is essential for the nation to address the well
documented critical workforce shortages in veterinarians pursuing
careers in food animal science, food safety, and public health. They
continued their veterinary shortage discussion by commenting that the
VMLRP will help address the growing disparities in the numbers and
types of veterinarians practicing in rural and other underserved
locations across the country as well as in areas of veterinary practice
with a shortage of veterinarians. According to the statistics provided
by the AVMA and the AAVMC, only about 10 percent of the veterinarians
practicing in the United States today work in the food animal practice
versus 100 percent at the beginning of the last century. In addition,
there will continue to be a shortage of veterinarians in food safety
and public health. They also cited the significant number of new
veterinarians electing to enter companion animal medicine for several
reasons, one of which is that the salary level is often higher than in
food animal medicine. AVMA and AAVMC also stated that ``one of the most
daunting obstacles standing in the way of students pursuing a career in
food animal medicine is educational debt.'' They noted that the average
student debt for a veterinary school graduate exceeded $106,000 in 2007
and to repay that sum over a 10-year period would average about $1,200
a month. The AVMA and AAVMC concluded their discussion of the need for
the VMLRP by stating that the highest paying jobs in each of the
practice categories are typically determined by geography and that jobs
in rural areas, where most of the food animal practitioners are in the
highest demand, often pay less due to demographics and other economic
conditions.
The AVMA and the AAVMC recommended that the loan repayment
agreements be for four years with the average annual loan repayment
(exclusive of payments for tax liability) ranging from $25,000 to
$40,000 per year over the agreement period. They recommended that 90
percent of the agreements be targeted to veterinarians practicing food
animal medicine in any underserved area and to food animal medicine
veterinarians practicing in rural areas (i.e., with a mixed practice in
which at least 30 percent of the practice is devoted to food animals).
They further recommended that 10 percent be used to attract and retain
veterinarians to critical veterinarian shortage situations in food
safety and public health.
The AVMA and the AAVMC recommended that the Secretary, under the
guidance of the Federal and state veterinarians, designate the
veterinary shortage situations. They felt that these shortage
situations are best determined at the state level. With regard to
designation of a veterinary shortage situation, the AVMA and the AAVMC
recommended that the nominations for these situations address risk,
activity, and objective. They recommended CSREES assemble an official
review panel of qualified individuals to review the nominations for
designation of various shortage situations submitted by the states. In
2007, the AVMA compiled the Food Supply Veterinary Medicine Data Maps
which can be found at http://www.avma.org/fsvm/maps/default.asp. As
part of their joint comments, AVMA suggested that the data compiled in
these maps may be useful in designating veterinarian shortage areas,
particularly those related to food animal practices, and they stated
that they were committed to keeping this information up-to-date. AVMA
and AAVMC also made specific comments on the solicitation, selection
criteria, and the administration of these loan repayment agreements,
particularly the terms and conditions of these awards. For example,
they recommended that eligibility not be limited to recent graduates
and that CSREES explore the possibility of entering into an agreement
with a service provider to administer the program.
Twenty-three of the 27 comments received were from veterinary
medical students who discussed at great length their significant future
debt loads after graduation, averaging from $100,000 to more than
$300,000 in some cases when combined with the debt incurred during
their undergraduate education. Most student respondents would be
willing to locate to an underserved rural area or other critical
veterinarian shortage situation (e.g., food safety or public health) to
practice food animal medicine. They also would be willing on average to
agree to serve in that area from three to six years if a significant
amount of their student loan debt was repaid through this program, at
the rate of $20,000 per year. Many felt that the combined financial
commitment by USDA and a time commitment by the veterinarian to
practicing in the veterinarian shortage situation would result in the
practicing veterinarian making a long-term commitment to the community.
Most student respondents either had a desire or a potential interest in
practicing food animal medicine full-time or in a mixed animal
practice. Most indicated that they would probably continue serving in
the community after the expiration of their service agreement. Most
indicated that the looming debt and the monthly payments as well as
their start-up costs (personal and professional) were driving them to
consider other practices and other geographic areas to attain a certain
level of income sufficient to make their monthly student loan payments.
One student recommended that the loan repayments be tax free.
However, the authorizing act, National Veterinary Medicine Service Act,
while not making these payments non-taxable, does include a provision
for USDA to pay the tax liability incurred by VMLRP participants as a
result of receiving these loan repayments. There was also a suggestion
to allow participants to transfer from one shortage situation to
another within the period of the service agreement.
In response to stakeholder input, CSREES will be awarding VMLRP
loan repayment agreements in amounts ranging up to $25,000 for the
first three or four years (with a minimum of three years). In addition,
CSREES will be paying an amount up to 39 percent of the total amount of
loan repayments made in a calendar year to reimburse program
participants for the tax liability incurred as a result of their
participation in VMLRP. Consequently, for each VMLRP participant, the
loan repayment amounts plus the tax liability payments would be
reported as income on the form 1099-G, Certain Government Payments,
each calendar year.
In addition, CSREES is considering a small pilot program to
implement the service in an emergency component of the VMLRP for a
limited number of agreements. Potential agreements will be identified
during the designation of the veterinary shortage situations. The
emergency situations referred to in this Part are emergencies related
to pandemics, zoonotic outbreaks, or other food supply emergencies, as
determined by the Secretary, and do not include emergencies related to
armed conflict. Successful applicants for these annual agreements may
receive an additional loan repayment amount of up to $5,000 per year,
plus an amount up to 39 percent of the amount of annual loan repayment
made under the program, and will be required to serve no more than 60
days per year. Emergency responders will receive a salary for the
period of emergency service, as determined by the Secretary, and will
be reimbursed for travel and per diem expenses as appropriate for the
duration of service. These agreements will be in addition to the
primary VMLRP agreement. CSREES will identify which veterinarian
shortage situations are
[[Page 32791]]
eligible for this type of agreement in the Request for Applications
(RFA) for the VMLRP loan repayment applications from individual
veterinarians.
Based on the stakeholder input received, the available funding for
the program at this time, experiences of other Federal loan repayment
programs, such as the NIH Division of Loan Repayment extramural
programs, and the goals of the VMLRP program, CSREES believes that
$25,000, per year in loan repayments for a minimum of three or four
years, plus an amount sufficient to cover the additional tax liability,
is an adequate incentive for VMLRP participants to relocate to
veterinarian shortage situations critical to the security of our
Nation's food supply and the health and safety of people, food animals,
and the environment. CSREES anticipates that about 40 VMLRP agreements
with be executed the first year. This approach will allow individual
participants to reduce their qualifying educational debt within a 3- or
4-year time period and meet their additional tax liability while
serving in shortage areas with the greatest need.
As recommended by AVMA and AAVMC, CSREES is negotiating with the
National Institutes of Health (NIH) Division of Loan Repayment (DLR) to
provide certain administrative services and support. These services may
include the receipt of individual applications, initial administrative
review of applications, verification and certification of selected
applicants as being eligible to participate, payments to actual loan
providers, tax liability payments, and monitoring and reporting
functions. CSREES has entered into an interagency agreement with the
NIH DLR to determine the feasibility of NIH DLR performing some of
these functions for CSREES. The NIH DLR currently manages a portfolio
of eight NIH loan repayment programs, five of which are extramural
programs, with an annual budget of approximately $75 million. For the
NIH extramural programs, the NIH DLR received over 3,000 applications
and made over 1,600 awards in fiscal year (FY) 2007. The NIH DLR
maintains a state-of-the-art system that manages the entire process
from application through close-out. CSREES feels that it is in the best
interest of potential applicants and VMLRP participants, as well as the
Federal government, for CSREES to work with the NIH DLR on this
initiative. Please note that CSREES will still be responsible for the
determination of the veterinarian shortage situations, peer review of
the individual VMLRP applications, and overall oversight and
coordination of the VMLRP. The CSREES Web site for the VMLRP is
available at http://wwww.csrees.usda.gov/nea/education/in_focus/vmlrp/html and will be updated, as appropriate. Please note that any VMLRP
applicant and participant interfaces will be conducted via the CSREES
Web site. Additional information about the NIH DLR is available at
http://www.lrp.nih.gov.
Consideration of Stakeholder Input and the Interim Process and
Procedures for the Designation of Veterinarian Shortage Situations
CSREES was very appreciative of the stakeholder input that was
received during the recent comment period. Based on these comments and
other research and analysis conducted, CSREES has determined to issue
two subparts for this Part: Subpart A, Designation of Veterinarian
Shortage Situations, and Subpart B, Administration of the VMLRP. As
recommended by the AVMA and the AAVMC, CSREES will solicit, via a
notice (published in the Federal Register and on the CSREES Web site),
the veterinarian shortage situations from the State animal health
official in each state. Nominators will be requested to submit to a
designated e-mail box a Form--CSREES XXXX, VMLRP Veterinarian Shortage
Situation Nomination, which will be available on the CSREES Web site at
http://www.csrees.usda.gov/nea/education/in_focus/vmlrp.html.
Respondents will be required to identify the geographic location of
the veterinarian shortage situation, as well as the area of practice.
The area of practice includes private food animal science medicine (at
least 80 percent of the practice), private mixed animal medicine (at
least 30 percent of the practice dedicated to food animal medicine),
food safety (identify employer and position), epidemiology (identify
employer and position), public health (identify employer and position),
and other (identify practice, employer, and position). The practice of
private mixed animal medicine will only be considered for a
veterinarian shortage situation in a rural area as defined in 7 CFR
3431.3. For the purposes of the VMLRP, CSREES is adopting the
definition of rural area found in section 343(a) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1991(a)(13)(A)). Respondents
will then be requested to address four additional questions about the
objectives, activities, and risk associated with the situation/position
not being secured or retained as well as past efforts to recruit for
and/or retain this position. Finally, respondents will be asked to
identify if, how, and why this position may be considered for a
secondary loan repayment agreement for service in an emergency.
CSREES intends to solicit these nominations for a 60-day period.
Shortly thereafter, CSREES will convene a panel of food supply
veterinary medicine experts from Federal and state agencies, as well as
institutions receiving Animal Health and Disease Research Program funds
under section 1433 of NARETPA, who will review the nominations and make
recommendations to the CSREES Program Manager. CSREES explored the
possibly of including experts from professional organizations for this
process, but under the National Agricultural Research, Extension, and
Teaching Policy Act (NARETPA) section 1409A(e), panelists for the
purposes of this process are limited to Federal and State agencies and
cooperating state institutions (i.e., NARETPA section 1433 recipients).
The VMLRP Program Manager will then review the recommendations and
designate the VMLRP shortage situations. The list of shortage
situations will be published in the Federal Register and will be made
available on the CSREES Web site at http://csrees.usda.gov/nea/education/in_focus/vmlrp.html.
Upon designation of the veterinarian shortage situations, CSREES
will publish in the Federal Register and on the Agency's Web site a
Request for Applications (RFA) for the VMLRP with applications due
within 90 days. This is the same length of time that the NIH provides
applicants under its loan repayment programs. Applicants would then
submit an application through the CSREES VMLRP Web site. A loan
repayment service provider will work with the CSREES Office of
Extramural Programs (OEP), the office responsible for administration
and payment of all CSREES Federal assistance awards, throughout the
application and administration of the VMLRP. Ineligible applicants will
be notified. Applications from eligible applicants will be forwarded to
CSREES. CSREES will submit the applications to a peer review panel
comprised of food supply veterinary medicine experts from the Federal
and state agencies, colleges and universities, professional
organizations, and other interested stakeholders. This peer review
panel will review and evaluate applications from individual
veterinarians and make recommendations to the VMLRP Program Manager.
After the VMLRP
[[Page 32792]]
Program Manager prepares the final list of potential awardees for each
shortage situation, a second level review is conducted to ensure
fairness and integrity of the process. This final list of potential
awardees is forwarded to OEP for a final administrative review and
execution of the VMLRP loan repayment agreements. As noted previously,
Subpart B of this Part will provide the policies and procedures from
the RFA through the closeout of the agreement, such as tax liability
payments, reporting, payment schedule, and terms and conditions for the
agreements.
For the purposes of this regulation, CSREES is adopting the
definition of ``food supply veterinary medicine'' from the Food Supply
Veterinary Medicine (FSVM) Coalition Report entitled ``Estimating FSVM
Demand and Maintaining the Availability of Veterinarians for Careers in
Food Supply Related Disciplines in the United States and Canada,'' and
the ``practice of veterinary medicine'' from the Model Veterinary
Practice Act (Approved by the AVMA Executive Board, November 2003,
revised April 2007, November 2007). CSREES developed a definition of
``practice of food supply veterinary medicine'' to include the
practices contributing to the production of a safe and wholesome food
supply and to animal, human, and environmental health. This definition
incorporates the legislative intent of VMLRP and the adopted definition
of ``food supply veterinary medicine.'' CSREES also adopted a
definition of ``food animal'' for the purposes of this regulation so
that it was clear to the public what is a ``food animal,'' while
providing flexibility to the Secretary to consider other ``food
animals,'' if appropriate.
USDA appreciates the efforts of the AVMA in compiling the Food
Supply Veterinary Medicine Data Maps which can be found at http://www.avma.org/fsvm/maps/default.asp and will be encouraging States to
use the data contained in these maps to justify their veterinarian
shortage situation.
Consideration of Stakeholder Input and Administration of the VMLRP
CSREES considered and included many of the recommendations of the
AVMA and the AAVMC in the development of the administrative provisions
for the VMLRP. USDA is initially capping annual loan repayment of
principal and interest of qualifying loans to $25,000 and the payments
for the additional tax liability incurred to no more than 39 percent of
the annual loan repayments. This will allow CSREES to maximize the
number of service agreements in accordance with the authorizing program
legislation, while providing sufficient debt relief to attract
potential VMLRP participants committed to serve in veterinarian
shortage situations. However, these interim regulations allow the
Secretary of Agriculture to adjust the cap under Sec. 3431.13(b), if
appropriate. Any changes in the caps will be addressed in the RFA.
Please note that the solicitation for veterinary shortage
situations and the VMLRP RFA will provide more specific details on the
administration of the program. In addition, CSREES will establish a
dedicated set of Web pages to the VMLRP similar to the Web pages
established for the NIH loan repayment programs.
Timeline for Implementing the Program
This regulation is being published as ``final interim'' to allow
CSREES to implement the program immediately. CSREES felt confident that
this was the best approach for all given the delays in program
implementation; the statutory requirement to promulgate regulations
within 270 days of the enactment of the FCEA; the consideration and
adoption of the stakeholder input received during the public meeting
and comment period; the adoption, to the extent practical, of the NIH
DLR best business practices for loan repayment programs; and the
potential partnering of CSREES with the NIH DLR on this effort.
However, CSREES is soliciting comments to consider and incorporate in
the final rule.
CSREES anticipates soliciting for the veterinarian shortage
situations via a Federal Register notice in September 2009 (open for 60
days) after the conclusion of the comment period for the associated
information collection and approval by OMB of this information
collection. At the same time, CSREES will continue to work with the NIH
DLR on adapting the NIH DLR application forms for use by VMLRP as well
as developing the other associated business processes (e.g., reporting,
payments). CSREES anticipates soliciting for VMLRP participants in late
fall 2009 or early winter 2010 (open for 90 days).
Although this interim regulation addresses most of the policies
associated with this program, CSREES plans to create informational Web
pages (providing detailed information and procedures) for the program
similar to the pages created for the NIH DLR programs.
Administrative Requirements for the Interim Rulemaking
Executive Order 12866
The Office of Management and Budget has reviewed this interim rule
because while it is not economically significant, it partially
implements the Veterinary Medicine Loan Repayment Program (VMLRP). This
interim rule will not materially alter the budgetary impact of
entitlements, grants, user fees, or loan programs; nor will it have an
annual effect on the economy of $100 million or more; nor will it
adversely affect the economy, a sector of the economy, productivity,
competition, jobs, the environment, public health or safety, or State,
local, or tribal governments or communities in a material way.
Furthermore, it does not raise a novel legal or policy issue arising
out of legal mandates, the President's priorities or principles set
forth in the Executive Order.
Regulatory Flexibility Act of 1980
This interim rule has been reviewed in accordance with the
Regulatory Flexibility Act of 1980, as amended by the Small Business
Regulatory Enforcement Fairness Act of 1996, 5 U.S.C. 601-612. The
Department concluded that the rule does not involve regulatory and
informational requirements regarding businesses, organizations, and
governmental jurisdictions subject to regulation.
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
3501, et seq.) and Office of Management and Budget (OMB) implementing
regulations (5 CFR part 1320), this notice announces the Cooperative
State Research, Education, and Extension Service's (CSREES) intention
to request approval to establish an information collection for the
purposes of submitting a nomination for the designation of a
veterinarian shortage situation in response to a solicitation
requesting nominations from the animal health official in each state.
Written comments on this notice must be received by September 8,
2009 to be assured of consideration. Comments received after that date
will be considered to the extent practicable.
You may submit comments, identified by Docket ID CSREES-
2009-0004, by any of the following methods: Federal eRulemaking Portal:
http://regulations.gov. Follow the instructions for submitting
comments. E-mail: [email protected]; Mail: Jason Hitchcock,
Information Systems and Technology Management, USDA/
[[Page 32793]]
CSREES, STOP 2216, 1400 Independence Avenue, SW., Washington, DC 20250-
2216; Hand Delivery/Courier: Jason Hitchcock, Information Systems and
Technology Management, USDA/CSREES, 800 9th Street, SW., Room 4217,
Waterfront Centre, Washington, DC 20024; Fax: 202-720-0857.
FOR FURTHER INFORMATION CONTACT: Jason Hitchcock, (202) 720-4343.
Information is also available at http://www.csrees.usda.gov/nea/education/in_focus/vmlrp.html.
Title: VMLRP Veterinarian Shortage Situation Nomination.
OMB Number: 0524-00XX.
Type of Request: Intent to request approval to establish an
information collection.
Abstract: CSREES is establishing the process and procedures for
designating veterinarian shortage situations for the Veterinary
Medicine Loan Repayment Program (VMLRP) as authorized under section
1415A of the National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (NARETPA). This information collection applies to
Subpart A of 7 CFR part 3431.
Need and Use of the Information: CSREES will be requesting the
animal health official in each state to submit the VMLRP Veterinarian
Shortage Situation Nomination Form, for each situation or position for
which there is a critical shortage of practicing veterinarians. CSREES
plans to publish a solicitation for these veterinarian shortage
situations, requesting that State animal health officials provide
nominations by submitting this form. This form will be available at the
CSREES Web site as a PDF-fillable document (to be e-mailed, faxed, or
mailed), and includes questions requiring check boxes or text with a
word limitation to minimize the burden. These nomination forms will be
reviewed and evaluated by a panel according to the criteria identified
in the published solicitation. From these evaluations, the VMLRP
Program Director may designate the most highly recommended shortage
situations according to criteria identified in the solicitation. These
situations will later be identified in the Request for Applications
(RFA) for VMLRP loan repayment applications (from individual
veterinarians).
Estimate of Burden: It is estimated that it will take approximately
two hours to complete this PDF-fillable form with checkboxes and text-
limiting fields to minimize the overall burden.
Respondents: Animal Health Official in each State.
Estimated Number of Respondents: 57 respondents.
Estimated Number of Responses: 114 responses (average of 2 per
State).
Estimated Total Annual Burden on Respondents: 228 hours.
Comments: Comments are invited on: (a) Whether the proposed
collection of information is necessary for the proper performance of
the functions of the agency, including whether the information will
have practical utility; (b) the accuracy of the agency's estimate of
the burden of the proposed collection of information, including the
validity of the methodology and assumptions; (c) ways to enhance the
quality, utility and clarity of the information to be collected; and
(d) ways to minimize the burden of the collection of information on
those who are to respond, including through the use of appropriate
automated, electronic, mechanical, or other technological collection
techniques or other forms of information technology.
Obtaining a Copy of the Information Collection: A copy of the
information collection and related instructions may be obtained free of
charge by contacting Jason Hitchcock by telephone, (202) 720-4343, or
by e-mail, [email protected]. Information also is available at
http://www.csrees.usda.gov/nea/education/in_focus/lvmlrp.html. When
the VMLRP application forms and participant reporting requirements
(i.e., the information collection requirements under Subpart B) are
finalized, CSREES intends to publish another Federal Register notice
announcing its intent to seek OMB approval for the information
collection requirements under Subpart B.
Catalog of Federal Domestic Assistance
This interim regulation applies to the following Federal assistance
program administered by CSREES, Catalog of Federal Domestic Assistance
(CFDA) No. 10.313, Veterinary Medicine Loan Repayment Program (VMLRP).
Unfunded Mandates Reform Act of 1995 and Executive Order 13132
The Department has reviewed this interim rule in accordance with
the requirements of Executive Order No. 13132, 64 FR 43225 (August 10,
1999) and the Unfunded Mandates Act of 1995, 2 U.S.C. 1501 et seq., and
has found no potential or 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. As there is no Federal mandate contained herein that
could result in increased expenditures by State, local tribal
governments or by the private sector, the department has not prepared a
budgetary impact statement.
Executive Order 13175: Consultation and Coordination With Indian Tribal
Governments
The Department has reviewed this interim rule in accordance with
Executive Order 13175, 65 FR 67249 (Nov. 9, 2000), and has determined
that it does not have ``tribal implications.'' The interim rule does
not ``have substantial direct effects 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.''
Clarity of This Regulation
Executive Order 12866, 58 FR 51735 (September 30, 1993), and the
President's memorandum of June 1, 1998, require each agency to write
all rules in plain language. The Department invites comments on how to
make this interim rule easier to understand.
List of Subjects in Part 3431
Administrative practice and procedure; Agricultural research,
education, extension; Veterinarians; Federal assistance.
0
For the reasons discussed in the preamble, the Cooperative State
Research, Education, and Extension Service amends Chapter XXXIV of
Title 7 of the Code of Federal Regulations to add Part 3431 to read as
follows.
PART 3431--VETERINARY MEDICINE LOAN REPAYMENT PROGRAM
Subpart A--Designation of Veterinarian Shortage Situations
Sec.
3431.1 Applicability of regulations.
3431.2 Purpose.
3431.3 Definitions and acronyms.
3431.4 Solicitation of stakeholder input.
3431.5 Solicitation of veterinarian shortage situations.
3431.6 Review of nominations.
3431.7 Notification and use of designated veterinarian shortage
situations.
Subpart B--Administration of the Veterinary Medicine Loan Repayment
Program
3431.8 Purpose and scope.
3431.9 Eligibility to apply.
3431.10 Eligibility to participate.
3431.11 Application.
3431.12 Selection of applicants.
3431.13 Terms of loan repayment and length of service requirements.
3431.14 Priority.
3431.15 Qualifying loans.
3431.16 Certifications and verifications.
3431.17 VMLRP service agreement offer.
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3431.18 Service agreement.
3431.19 Payment and tax liability.
3432.20 Administration.
3432.21 Breach.
3432.22 Waiver.
3432.23 Service to Federal government in emergency situations.
3431.24 Reporting requirements, monitoring, and close-out.
Authority: 7 U.S.C. 3151a; Public Law 106-107 (31 U.S.C. 6101
note).
Sec. 3431.1 Applicability of regulations.
This part establishes the process and procedures for designating
veterinarian shortage situations as well as the administrative
provisions for the Veterinary Medicine Loan Repayment Program (VMLRP)
authorized by the National Veterinary Medical Service Act (NVMSA), 7
U.S.C. 3151a.
Sec. 3431.2 Purpose.
The Secretary will follow the processes and procedures established
in Subpart A to designate veterinarian shortage situations for the
VMLRP. Applications for the VMLRP will be accepted from eligible
veterinarians who agree to serve in one of the designated shortage
situations in exchange for the repayment of an amount of the principal
and interest of the veterinarian's qualifying educational loans. The
administrative provisions for the VMLRP, including the application
process, are established in Subpart B.
Sec. 3431.3 Definitions and acronyms.
(a) General definitions.
Act means the National Veterinary Medical Service Act, as amended.
Agency or CSREES means the Cooperative State Research, Education,
and Extension Service.
Department means the United States Department of Agriculture.
Food animal means the following species: bovine, porcine, ovine/
camelid, cervid, poultry, and any other species as determined by the
Secretary.
Food supply veterinary medicine means all aspects of veterinary
medicine's involvement in food supply systems, from traditional
agricultural production to consumption.
Insular area means the Commonwealth of Puerto Rico, Guam, American
Samoa, the Commonwealth of the Northern Mariana Islands, the Federated
States of Micronesia, the Republic of the Marshall Islands, the
Republic of Palau, and the Virgin Islands of the United States.
NVMSA means the National Veterinary Medicine Service Act.
Practice of food supply veterinary medicine includes corporate/
private practices devoted to food animal medicine, mixed animal
medicine located in a rural area (at least 30 percent of practice
devoted to food animal medicine), food safety, epidemiology, public
health, and other practices that contribute to the production of a safe
and wholesome food supply.
Practice of veterinary medicine means:
(1) To diagnose, treat, correct, change, alleviate, or prevent
animal disease, illness, pain, deformity, defect, injury, or other
physical, dental, or mental conditions by any method or mode;
including:
(i) The prescription, dispensing, administration, or application of
any drug, medicine, biologic, apparatus, anesthetic, or other
therapeutic or diagnostic substance or medical or surgical technique,
or
(ii) The use of complementary, alternative, and integrative
therapies, or
(iii) The use of any manual or mechanical procedure for
reproductive management, or
(iv) The rendering of advice or recommendation by any means
including telephonic and other electronic communications with regard to
any of paragraphs (1)(i),(ii),(iii), or (iv) of this definition.
Rural area means any area other than a city or town that has a
population of 50,000 inhabitants and the urbanized area contiguous and
adjacent to such a city or town.
Secretary means the Secretary of Agriculture and any other officer
or employee of the Department to whom the authority involved has been
delegated.
Service area means geographic area in which the veterinarian will
be providing veterinary medical services.
State means any one of the fifty states, the District of Columbia,
and the insular areas of the United States, including the Commonwealth
of Puerto Rico; Guam; American Samoa; the Commonwealth of the Northern
Mariana Islands; the Federated States of Micronesia; the Republic of
the Marshall Islands; the Republic of Palau; and the Virgin Islands of
the United States.
State animal health official means the State veterinarian, or
equivalent, who will be responsible for nominating and certifying
veterinarian shortage situations within the State.
Veterinarian means a person who has received a professional
veterinary medicine degree from an accredited college of veterinary
medicine.
Veterinary medicine means all branches and specialties included
within the practice of veterinary medicine.
Veterinary Medicine Loan Repayment Program or VMLRP means the
Veterinary Medicine Loan Repayment Program authorized by the National
Veterinary Medical Service Act.
Veterinarian shortage situation means any of the following
situations in which the Secretary, in accordance with the process in
Subpart A, determines has a shortage of veterinarians:
(1) Geographical areas that the Secretary determines have a
shortage of food supply veterinarians; and
(2) Areas of veterinary practice that the Secretary determines have
a shortage of food supply veterinarians, such as food animal medicine,
public health, epidemiology, and food safety.
(b) Definitions applicable to Subpart B.
Applicant means an individual who applies to and meets the
eligibility criteria for the VMLRP.
Breach of agreement results when a participant fails to complete
the service agreement obligation required under the terms and
conditions of the agreement and will be subject to assessment of
monetary damages and penalties as determined in the service agreement,
unless a waiver has been granted or an exception applies.
Current payment status means that a qualified educational loan is
not past due in its payment schedule as determined by the lending
institution.
Debt threshold means the minimum amount of qualified student debt
an individual must have, on their program eligibility date, in order to
be eligible for program benefits, as determined by the Secretary.
Program eligibility date means the date on which an individual's
VMLRP agreement is executed by the Secretary.
Program participant means an individual whose application to the
VMLRP has been approved and whose service agreement has been accepted
and signed by the Secretary.
Qualifying educational expenses means the costs of attendance of
the applicant at an accredited college of veterinary medicine,
exclusive of the tuition and reasonable living expenses. Educational
expenses may include fees, books, laboratory expenses and materials, as
required by an accredited college or school of veterinary medicine as
part of a Doctor of Veterinary Medicine degree program, or the
equivalent. The program participant must submit sufficient
documentation, as required by the Secretary, to substantiate the school
requirement for the educational expenses incurred by the program
participant.
Qualifying educational loans means loans that are issued by any
U.S.
[[Page 32795]]
government (i.e., Federal, state, or local) entity, accredited U.S.
academic institution(s), and/or commercial lender(s) that are subject
to examination and supervision in their capacity as lending
institutions by an agency of the United States or the state in which
the lender has its principal place of business. Loans must have been
made for one or more of the following: School tuition, other qualifying
educational expenses, or reasonable living expenses relating to the
obtainment of a degree of Doctor of Veterinary Medicine from an
accredited college or school of veterinary medicine. Such loans must
have documentation which is contemporaneous with the training received
in a college or school of veterinary medicine. If qualifying
educational loans are refinanced, the original documentation of the
loan(s) will be required to be submitted to the Secretary to establish
the contemporaneous nature of such loans.
Reasonable living expenses means the ordinary living costs incurred
by the program participant while attending the college of veterinary
medicine, exclusive of tuition and educational expenses. Reasonable
living expenses must be incurred during the period of attendance and
may include food and lodging expenses, insurance, commuting and
transportation costs. Reasonable living expenses must be equal to or
less than the sum of the school's estimated standard student budgets
for living expenses for the degree veterinary medicine for the year(s)
during which the program participant was enrolled in the school.
However, if the school attended by the program participant did not have
a standard student budget or if a program participant requests
repayment for living expenses which are in excess of the standard
student budgets described in the preceding sentence, the program
participant must submit documentation, as required by the Secretary, to
substantiate the reasonableness of living expenses incurred. To the
extent that the Secretary determines, upon review of the program
participant's documentation, that all or a portion of the living
expenses are reasonable, these expenses will qualify for repayment.
Service agreement means the agreement, which is signed by an
applicant and the Secretary for the VMLRP wherein the applicant agrees
to accept repayment of qualifying educational loans and to serve in
accordance with the provisions of NVMSA for a prescribed period of
obligated service.
Termination means a waiver of the service obligation granted by the
Secretary when compliance by the participant is impossible, would
involve extreme hardship, or where enforcement with respect to the
individual would be unconscionable (see breach of agreement).
Withdrawal means a request by a participant for withdrawal from
participation in the VMLRP after signing the service agreement, but
prior to VMLRP making the first annual payment on behalf of the
participant. A withdrawal is without penalty to the participant and
without obligation to the Program.
Sec. 3431.4 Solicitation of stakeholder input.
The Secretary will solicit stakeholder input on the process and
procedures used to designate veterinarian shortage situations prior to
the publication of the solicitation for nomination of veterinarian
shortage situations. A notice may be published in the Federal Register,
on the Agency's Web site, or other appropriate format or forum. This
request for stakeholder input may include the solicitation of input on
the administration of VMLRP and its impact on meeting critical
veterinarian shortage situations. All comments will be made available
and accessible to the public.
Sec. 3431.5 Solicitation of veterinarian shortage situations.
(a) General. The Secretary will follow the procedures described in
this part to solicit veterinarian shortage situations as the term is
defined in Sec. 3431.3.
(b) Solicitation. The Secretary will publish a solicitation for
nomination of veterinarian shortage situations in the Federal Register,
on the Agency's Web site, or other appropriate format or forum.
(c) Frequency. Contingent on the availability of funds, the
Secretary will normally publish a solicitation on a biennial basis.
However, the Secretary reserves the right to solicit veterinarian
shortage situations every year or every three years, as appropriate.
(d) Content. The solicitation will describe the nomination process,
the review criteria and process, and include the form used to submit a
nomination. The solicitation may specify the maximum number of
nominations that may be submitted by each State animal health official.
(e) Nominations. Nominations shall identify the veterinarian
shortage situation and address the criteria in the nomination form
which may include the objectives of the position, the activities of the
position, and the risk posed if the position is not secured.
(f) Nominating Official. The State animal health official in each
state may nominate and certify veterinarian shortage situations within
the State. It is anticipated that the State animal health official of
each State will involve the leading health animal experts in the State
in the nomination process.
Sec. 3431.6 Review of nominations.
(a) Peer panel. State nominations will be evaluated by a peer panel
of experts in animal health convened by the Secretary. The panel will
evaluate nominations according to the criteria identified in the
solicitation. The panel will consider the objectives and activities of
the veterinarian position in the veterinary service shortage situation
and the risks associated with not securing or retaining the position
and make a recommendation regarding each nomination.
(b) Agency review. The Secretary will evaluate the recommendations
of the peer panel and designate shortage situations for the VMLRP.
Sec. 3431.7 Notification and use of designated veterinarian shortage
situations.
The Secretary will publish the designated veterinarian shortage
situations on the Agency's Web site and will use the designated
veterinarian shortage situations to solicit VMLRP loan repayment
applications from individual veterinarians in accordance with Subpart
B.
Subpart B--Administration of the Veterinary Medicine Loan Repayment
Program
Sec. 3432.8 Purpose and scope.
(a) Purpose. The regulations of this subpart apply to the award of
veterinary medicine loan repayments under the Veterinary Medicine Loan
Repayment Program (VMLRP) authorized by the National Veterinary
Medicine Service Act, 7 U.S.C. 3151a.
(b) Scope. Under the VMLRP, the Secretary enters into service
agreements with licensed veterinarians to pay principal and interest on
education loans of veterinarians who agree to work in veterinary
shortage situations for a prescribed period of time. In addition,
program participants may enter into an agreement to provide services to
the Federal government in emergency situations in exchange for salary,
travel, per diem expenses, and additional amounts of loan repayment
assistance. The purpose of the program is to ensure an adequate supply
of trained food animal veterinarians in shortage situations and provide
USDA with a pool of veterinary specialists to assist in the control and
eradication of animal disease outbreaks.
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Sec. 3431.9 Eligibility to apply.
(a) General. To be eligible to apply to the VMLRP an applicant
must:
(1) Have a degree of Doctor of Veterinary Medicine (DVM), or the
equivalent, from an accredited college of veterinary medicine;
(2) Have qualifying educational loan debt as defined in Sec.
3431.3 of this title;
(3) Secure an offer of employment or establish and/or maintain a
practice in a veterinary shortage situation, as determined by the
Secretary in accordance with the procedures in Subpart A, within the
time period specified in the VMLRP service agreement offer; and
(4) Provide certifications and verifications in accordance with
Sec. 3431.16 of this Part.
(b) Non-eligibility. The following individuals are ineligible to
apply to the VLMRP:
(1) An individual who owes an obligation for veterinary service to
the Federal government, a State, or other entity under an agreement
with such Federal, State, or other entity is ineligible for the VMLRP
unless such obligation will be completely satisfied prior to the
beginning of service under the VMLRP;
(2) An individual who has a Federal judgment lien against his/her
property arising from Federal debt; and
(3) An individual who has consolidated qualifying loans with loans
not qualifying for repayment under the VMLRP.
Sec. 3431.10 Eligibility to participate.
To be eligible to participate in the VMLRP, a participant must meet
the following criteria:
(a) Meet the eligibility criteria of Sec. 3431.9 for applying to
the VMLRP;
(b) Be selected for participation by the Secretary pursuant to
Sec. 3431.12.
(c) Be a licensed veterinarian in the jurisdiction in which he or
she proposes to practice;
(d) Be a citizen, national, or permanent resident of the United
States;
(e) Sign a service agreement to provide veterinary services in one
of the veterinarian shortage situations; and
(f) Comply with the terms and conditions of the Service Agreement.
Sec. 3431.11 Application.
Individuals who meet the eligibility criteria of Sec. 3431.9 may
submit an online program application or any other application process
provided by the Secretary.
Sec. 3431.12 Selection of applicants.
(a) Review of applications. Upon receipt, applications for the
VMLRP will be reviewed for eligibility and completeness by the
appropriate staff as determined by the Secretary. Incomplete or
ineligible applications will not be processed or reviewed.
(b) Peer review. Applications for the VMLRP that are deemed
eligible and complete will be referred to the VMLRP peer panel for peer
review. In evaluating the application, reviewers are directed to
consider the following components, as well as any other criteria
identified in the RFA, and how they relate to the likelihood that the
applicant will meet the terms and conditions of the VMLRP agreement,
continue to serve in a veterinary shortage situation, or pursue a
career in food animal veterinary medicine:
(1) Major or emphasis areas(s) during formal post-secondary
training (e.g., bachelors degree major, minor);
(2) Major or emphasis area(s) during formal training for DVM/VMD
degree;
(3) Specialty training area/discipline (e.g., board certification
or graduate degree);
(4) Non-degree/non-board certification training or certifications
(e.g., animal agrosecurity coursework and certifications);
(5) Applicant's personal statement;
(6) Awards;
(7) Letters or recommendation, if applicable; and
(8) Other documentation or criteria, as specified in the RFA.
Sec. 3431.13 Terms of loan repayment and length of service
requirements.
(a) Loan repayment. For each year of obligated service in a
veterinary shortage situation, as determined by the Secretary, with a
minimum of 3 years (and maximum of 4 years) of obligated service, the
Secretary may pay:
(1) An amount not exceeding $25,000 per year of a program
participant's qualifying loans; and
(2) An additional amount not exceeding $5,000 per year of a program
participant's qualifying loans, if the program participant has already
been selected for participation in the VMLRP and agrees to enter into a
one-year agreement for each year of service to provide up to 60 days of
obligated service to the Federal government in animal health emergency
situations, as determined by the Secretary, provided the shortage
situation in which the participant has agreed to serve has been
designated as suitable for the Federal obligated service.
(b) To maximize the number of agreements and to encourage qualified
veterinarians to participate in the VMLRP, the Secretary may establish
a loan repayment cap that differs from the cap established under
paragraph (a)(1) and (a)(2) of this section when it is in the best
interest of VMLRP. This will be identified in the RFA.
(c) The Secretary will determine the debt threshold in the RFA.
(d) Loan repayments will be made directly to the loan provider on a
quarterly basis, starting with the end of the first quarter after the
program eligibility date of the service agreement.
(e) Once a service agreement has been signed by both parties, the
Secretary will obligate such funds as will be necessary to ensure that
sufficient funds will be available to make loan repayments and tax
payments, as specified in the service agreement, for the duration of
the period of obligated service. Reimbursements for tax liabilities in
excess of the amount provided (not to exceed 39 percent of the amount
of loan repayment) will be subject to the availability of funds. These
additional tax payments, if available to the VMLRP participants, will
be identified in the RFA and in the participant service agreement.
(f) Participants are required to keep payments current on all
qualifying VMLRP loans.
(g) Travel expenditures. The VMLRP will not reimburse a program
participant for expenses associated with traveling from the program
participant's residence to the prospective practice site for the
purpose of evaluating such site or the expenses of relocating from the
program participant's temporary or permanent residence to a practice
site.
Sec. 3431.14 Priority.
Pursuant to NVMSA, the Secretary will give priority to agreements
with veterinarians for the practice of food animal medicine in
veterinarian shortage situations, as determined by the Secretary. The
Secretary may establish additional criteria in the RFA for assigning
priority levels to veterinarian shortage situations nominated for
award.
Sec. 3431.15 Qualifying loans.
(a) General. Loan repayments provided under the VMLRP may consist
of payments on behalf of participating individuals of the principal and
interest on qualifying educational loans received by the individual for
attendance of the individual at an accredited college of veterinary
medicine resulting in a degree of Doctor of Veterinary Medicine, or the
equivalent, which loans were made for one or more of the following:
(1) Tuition expenses;
(2) All other reasonable educational expenses, as defined in this
part and as determined by the Secretary; and
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(3) Reasonable living expenses, as defined in this part and as
determined by the Secretary.
(b) Non-eligible loans. The following loans are ineligible for
repayment under the VMLRP:
(1) Loans not obtained from a bank, credit union, savings and loan
association, not-for-profit organization, insurance company, school,
and other financial or credit institution which is subject to
examination and supervision in its capacity as lending institution by
an agency of the United States or of the State in which the lender has
its principal place of business;
(2) Loans for which supporting documentation is not available;
(3) Loans that have been consolidated with loans of other
individuals, such as spouses or children;
(4) Loans that have been consolidated with loans obtained to attend
an educational institution other than an accredited veterinary medical
school;
(5) Loans or portions of loans obtained for educational or living
expenses which exceed the standard of reasonableness as determined by
the participant's standard school budget for the year in which the loan
was made, and are not determined by the Secretary to be reasonable
based on additional documentation provided by the individual;
(6) Loans, financial debts, or service obligations incurred under
another loan repayment or scholarship program, or similar programs,
which provide loans, scholarships, loan repayments, or other awards in
exchange for a future service obligation;
(7) Non-educational loans, including home equity loans; and
(8) Any loan in default, delinquent, or not in a current payment
status.
Sec. 3431.16 Certifications and verifications.
(a) The application for the loan repayment program shall include a
personal statement describing how the applicant would meet the
requirements of:
(i) The veterinary service shortage situations as defined in the
RFA;
(ii) The eligibility criteria for application of section Sec.
3431.9 of this part; and
(iii) The selection priority of section Sec. 3431.14 of this part.
(b) The applicant shall provide sufficient documentation to
establish that the applicant has qualifying loans as described in
section Sec. 3431.15 of this part.
(c) The applicant shall provide sufficient documentation to
establish that the applicant has the capacity to secure an offer of
employment or establish and/or maintain a veterinary practice in a
veterinary service shortage situation as defined in Subpart A.
(d) The applicant shall provide, if applicable, sufficient
documentation to establish that the applicant is licensed to practice
veterinary medicine in the jurisdiction in which the applicant has an
offer of employment.
(e) The applicant shall provide, if applicable, the required
documentation to establish whether the applicant receives payments
under any other Federal, State, institutional, or private loan
repayment programs.
(f) The applicant shall provide the required documentation to show
that he/she has completed, or is in the process of completing, the
National Veterinary Accreditation Program (NVAP).
(g) The applicant shall provide authorization to the appropriate
staff as designated by the Secretary to obtain a copy of the
participant's credit report.
Sec. 3431.17 VMLRP service agreement offer.
The Secretary will make an offer to successful applicants to enter
into an agreement with the Secretary to provide veterinary services
under the VMLRP. As part of the offer, successful VMLRP applicants will
be provided a specific period of time, as defined in the RFA, to secure
an offer of employment or establish and/or maintain a veterinary
practice in a veterinary shortage situation.
Sec. 3431.18 Service agreement.
(a) The service agreement shall be signed by the program
participant and the Secretary after acceptance of the terms and
conditions of the loan repayment program by the program participant.
(b) The service agreement shall specify the period of obligated
service.
(c) The service agreement shall specify the amount of loan
repayment to be paid for each year of obligated service.
(d) The service agreement shall contain a provision defining when a
breach of the agreement by the program participant has occurred.
(e) The service agreement shall provide remedies for the breach of
a service agreement by a program participant, including repayment or
partial repayment of financial assistance received, with interest.
(f) The service agreement shall include provisions addressing the
granting of a waiver by the Secretary in case of hardship.
(g) Payments under the service agreement do not exempt a program
participant from the responsibility and/or liability for any loan(s)
for which he or she is obligated, as the Secretary is not obligated to
the lender/note holder for its commitment to the program participant.
(h) During the term of the service agreement, the program
participant shall agree that the Secretary or the designated VMLRP
service provider is authorized to verify the status of each loan for
which the Secretary will be reimbursing the participant.
(i) The service agreement shall contain certifications, as
determined by the Secretary.
(j) The service agreement shall contain provisions addressing the
income tax liability of the program participant and the availability of
reimbursement of taxes incurred as a result of an individual's
participation in the VMLRP.
(k) Renewal. The service agreement will indicate whether the
existing service agreement may be renewed. However, renewal
applications are subject to peer review and approval, acceptance is not
guaranteed, and the position must still be considered a veterinarian
shortage situation at the time of application for renewal. The
Secretary may request additional documentation in connection with the
review and approval of a renewal application. The Secretary reserves
the right not to offer renewals. Any requests for renewal applications
will be solicited via the RFA.
(l) The service agreement shall contain participant reporting
requirements (e.g., quarterly, annual, and/or close-out) to allow for
program monitoring and evaluation.
Sec. 3431.19 Payment and tax liability.
(a) Loan repayment. Loan repayments pursuant to a service agreement
are made directly to a participant's lender(s) by the Secretary or the
VMLRP service provider. If there is more than one outstanding qualified
educational loan, the Secretary will repay the loans in the following
order, unless the Secretary determines significant savings to the
program would result from paying loans in a different order of
priority:
(1) Loans guaranteed by the U.S. Department of Education;
(2) Loans made or guaranteed by a State;
(3) Loans made by a School; and
(4) Loans made by other entities, including commercial loans.
(b) Tax Liability Payments. The Secretary may make payments of an
amount not to exceed 39 percent of the actual annual loan repayments
made in a calendar year for all or part of the increased Federal,
State, and local tax
[[Page 32798]]
liability resulting from loan repayments received under the VMLRP.
Supplementary payments for increased tax liability may be made for the
actual amount of tax liability associated with the receipt of loan
repayments under the VMLRP. Availability of these additional tax
liability payments (i.e., in excess of 39 percent) will be identified
in the RFA and in the participant service agreement. Program
participants wishing to receive tax liability payments will be required
to submit their requests for such payments in a manner prescribed by
the Secretary and must provide the Secretary with any documentation the
Secretary determines is necessary to establish a program participant's
increased tax liability. Tax liability payments in excess of 39 percent
will be made on a reimbursement basis only.
(c) Under Sec. 3431.19(a) and (b), the Secretary will make loan
and tax liability payments to the extent appropriated funds are
available for these purposes.
Sec. 3431.20 Administration.
The VMLRP will be administered by CSREES, Office of Extramural
Programs (OEP). OEP may carry out this program directly or enter into
agreements with another Federal agency or other service provider to
assist in the administration of the VMLRP. However, the determination
of the veterinarian shortage areas, peer review of individual VMLRP
applications, and the overall VMLRP oversight and coordination will
reside with the Secretary.
Sec. 3432.21 Breach.
(a) General. If a program participant fails to complete the period
of obligated service incurred under the service agreement, including
failing to comply with the applicable terms and conditions of a waiver
granted by the Secretary, the program participant must pay to the
United States an amount as determined in the service agreement. Payment
of this amount shall be made within 90 days of the date that the
program participant failed to complete the period of obligated service,
as determined by the Secretary.
(b) Exceptions.
(1) A termination of service for reasons that are beyond the
control of the program participant will not be considered a breach.
(2) A transfer of service from one shortage situation to another,
if approved by the Secretary, will not be considered a breach.
(3) A call or order to active duty will not be considered a breach.
(c) The Secretary may renegotiate the terms of a participant's
service agreement in the event of a transfer, termination or call to
active duty pursuant to subsection (b).
(d) Amount of repayment. The service agreement shall provide the
method for the calculation of the amount owned by a program participant
who has breached a service agreement.
(e) Debt collection. Individuals in breach of a service agreement
entered into under this part are considered to owe a debt to the United
States for the amount of repayment. Any such debt will be collected
pursuant to the Department's Debt Management regulations at 7 CFR part
3.
Sec. 3432.22 Waiver.
(a) A program participant may seek a waiver or suspension of the
service or payment obligations incurred under this part by written
request to the Secretary setting forth the bases, circumstances, and
causes which support the requested action.
(b) The Secretary may waive any service or payment obligation
incurred by a program participant whenever compliance by the program
participant is impossible or would involve extreme hardship to the
program participant and if enforcement of the service or payment
obligation would be against equity and good conscience.
(1) Compliance by a program participant with a service or repayment
obligation will be considered impossible if the Secretary determines,
on the basis of information and documentation as may be required:
(i) That the program participant suffers from a physical or mental
disability resulting in the permanent inability of the program
participant to perform the service or other activities which would be
necessary to comply with the obligation; or
(ii) That the employment of the program participant has been
terminated involuntarily for reasons unrelated to job performance.
(2) In determining whether compliance by a program participant with
the terms of a service or repayment obligation imposes an extreme
hardship, the Secretary may, on the basis of information and
documentation as may be required, take into consideration the nature of
the participant's personal problems and the extent to which these
affect the participant's ability to perform the obligation.
(c) All requests for waivers must be submitted to the Secretary in
writing.
(d) A program participant who is granted a waiver in accordance
with this section will be notified by the Secretary in writing.
(e) Any obligation of a program participant for service or payment
will be canceled upon the death of the program participant.
Sec. 3431.23 Service to Federal Government in emergency situations.
(a) The Secretary may enter into agreements of 1 year duration with
veterinarians who have service agreements for such veterinarians to
provide services to the Federal Government in emergency situations, as
determined by the Secretary, under terms and conditions specified in
the agreement.
(b) Pursuant to a service agreement under this section, the
Secretary shall pay an amount, in addition to the amount paid, as
determined by the Secretary and specified in the agreement, of the
principal and interest of qualifying educational loans of the
veterinarians. This amount will be provided in the RFA.
(c) Agreements entered into under this paragraph shall include the
following:
(1) A veterinarian shall not be required to serve more than 60
working days per year of the agreement.
(2) A veterinarian who provides service pursuant to the agreement
shall receive a salary commensurate with the duties and shall be
reimbursed for travel and per diem expenses as appropriate for the
duration of the service.
Sec. 3431.24 Reporting requirements, monitoring, and close-out.
VMLRP participants will be required to submit periodic reports per
the terms and conditions of their service agreements. In addition, the
Secretary is responsible for ensuring that a VMLRP participant is
complying with the terms and conditions of their service agreement,
including any additional reporting or close-out requirements.
Signed at Washington, DC, on June 26, 2009.
Colien Hefferan,
Administrator, Cooperative State Research, Education, and Extension
Service.
[FR Doc. E9-15596 Filed 7-8-09; 8:45 am]
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