[Federal Register Volume 75, Number 74 (Monday, April 19, 2010)]
[Rules and Regulations]
[Pages 20239-20248]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-8628]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 75, No. 74 / Monday, April 19, 2010 / Rules
and Regulations
[[Page 20239]]
DEPARTMENT OF AGRICULTURE
National Institute of Food and Agriculture
7 CFR Part 3431
RIN 0524-AA43
Veterinary Medicine Loan Repayment Program (VMLRP)
AGENCY: National Institute of Food and Agriculture, USDA.
ACTION: Final rule.
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SUMMARY: This 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
National Institute of Food and Agriculture (NIFA) of the U.S.
Department of Agriculture. NIFA will designate geographic areas and
other practice situations 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. NIFA 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. NIFA is establishing
Subpart A for the designation of the veterinarian shortage situations
and Subpart B for the administration of the VMLRP.
DATES: This final rule is effective April 19, 2010.
FOR FURTHER INFORMATION CONTACT: Gary Sherman; National Program Leader,
Veterinary Science; National Institute of Food and Agriculture; U.S.
Department of Agriculture; STOP 2220; 1400 Independence Avenue, SW.;
Washington, DC 20250-2220; Voice: 202-401-4952; Fax: 202-401-6156;
E[dash]mail: [email protected].
SUPPLEMENTARY INFORMATION:
Establishment of National Institute of Food and Agriculture
On October 1, 2009, the Secretary of Agriculture (Secretary)
established within USDA the National Institute of Food and Agriculture
(NIFA), as mandated by section 251(f)(2) of the Department of
Agriculture Reorganization Act of 1994 (Reorganization Act) (7 U.S.C.
6971(f)(2)). Section 251(f)(2) was added by section 7511 of the Food,
Conservation, and Energy Act of 2008 (FCEA), Pub. L. 110-246. Pursuant
to the FCEA, the Secretary transferred to NIFA, effective October 1,
2009, the authorities (including all budget authorities, available
appropriations, and personnel), duties, obligations, and related legal
and administrative functions prescribed by law or otherwise granted to
the Secretary, the Department, or any other agency or official of the
Department under the research, education, economic, cooperative State
research programs, cooperative extension and education programs,
international programs, and other functions and authorities delegated
by the Under Secretary for Research, Education, and Economics (``REE'')
to the Administrator of the Cooperative State Research, Education, and
Extension Service (CSREES) pursuant to 7 CFR 2.66, and any and all
other authorities administered by the Administrator of CSREES.
Accordingly, the agency known as CSREES was abolished upon
establishment of NIFA.
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 to
implement the Veterinary Medicine Loan Repayment Program (VMLRP) 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
for support of the program, in December 2007, the Consolidated
Appropriations Act, 2008 appropriated an additional $868,875 for
support of this program, and on March 11, 2009, the Omnibus
Appropriations Act, 2009 (Pub. L. 111-8) was enacted, providing an
additional $2,950,000, for the VMLRP. In October 2009, the President
signed into law, Public Law 111-80, Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies Appropriations Act
of 2010, which appropriated $4,800,000 for the VMLRP.
Consequently, there is a cumulative total of approximately $9.6
million available for NIFA 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
[[Page 20240]]
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. 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. 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 NIFA.
Solicitation of Stakeholder Input and Publication of the Interim Rule
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 the interim rule which was published on
July 9, 2009 [74 FR 32788-32798] with a 60-day comment period.
Response to Comments on Interim Rule and Revisions Included in Final
Rule
In the Interim Rule, CSREES established rules and invited comments
on the process and procedures for (a) designating veterinarian shortage
situations and (b) administration for the VMLRP. CSREES received
thirty-eight sets of comments from individuals, including practicing
veterinarians, farmers, and students, and the following veterinary
professional associations and organizations: American Veterinary
Medical Association (AVMA), Association of American Veterinary Medical
Colleges (AAVMC), American Association of Veterinary Laboratory
Diagnosticians (AAVLD), National Association of Federal Veterinarians
(NAFV), Humane Society Veterinary Medical Association (HSVMA), and
North Dakota Stockmen's Association (NDSA) as well as a joint statement
from Washington Cattlemen's Association (WCA) and Washington State
Dairy Federation (WSDF). NIFA considered all comments received in the
development of the final rule.
Non-Doctor of Veterinary Medicine (D.V.M.) Loans
Comment: Three commentors expressed concern about the exclusion of
education loans other than those obtained for the Doctorate of
Veterinary Medicine (or equivalent) from the VMLRP. AVMA, as one of the
commentors, ``contends that a veterinary student's undergraduate
education is an integral component of their academic veterinary career.
Veterinary students must take required prerequisites for the doctoral
program while enrolled in undergraduate studies. Without these required
prerequisite courses a prospective veterinary student would be
ineligible for admission to veterinary medical school.''
NIFA Response: The NVMSA legislation specifically states in Section
1415A(c)(3) of NARETPA the following: Qualifying Educational Loans--
Loan repayments provided under this section may consist of payments on
behalf of participating individuals of the principal, interest, and
related expenses on government and commercial 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 * * *''. Consequently, there is no change to
the regulations regarding eligibility of non-DVM loans for the VMLRP.
Comment: Seven commentors observed that disqualifying individuals
who consolidated their undergraduate student loans with veterinary
school loans would unfairly cause a large group of highly qualified
veterinarians, many of whom have high levels of debt, ineligible for
the VMLRP. Additionally, AAVMC reported that ``the issue of
consolidated debt was the highest rated and most oft mentioned concern
for AAVMC members.''
NIFA Response: NIFA agrees. NIFA will allow individuals who
consolidated their veterinary school loans with other educational loans
(e.g. undergraduate) to apply for the VMLRP; however, only the eligible
portion of the consolidation will be repaid by the VMLRP, thus Parts
3431.9(b)(3) and 3431.15(b)(4) have been removed from the final
regulations. Furthermore, applicants with consolidated loans will be
asked to provide a complete history of their student loans from the
National Student Loan Database System (NSLDS), a central database for
student aid operated by the U.S. Department of Education. The NSLDS Web
site can be found at http://www.nslds.ed.gov. Individuals who
consolidated their DVM loans with non-educational loans or loans
belonging to an individual other than the applicant, such as a spouse
or child, will continue to be ineligible for the VMLRP.
Definitions
Comment: Three commentors requested clarification on the definition
for ``accredited college of veterinary medicine'' as there are multiple
accreditation bodies that could be included in the definition. Two of
the three commentors recommended that the definition be modified to
specify accreditation by the AVMA Council on Education, a specialized
accrediting agency recognized and authorized by the U.S. Department of
Education.
NIFA Response: NIFA agrees. To eliminate any confusion, the
definitions have been modified in the definitions (Sec. 3431.3) and
eligibility (Sec. 3431.9) sections in the final regulations to specify
that a veterinarian must have attended a college of veterinary medicine
accredited by the AVMA Council on Education to be eligible to apply to
the VMLRP.
Comment: One commentor asked NIFA to give serious consideration to
including U.S. citizens who are studying to become veterinarians in
veterinary schools in the Caribbean basin.
NIFA Response: NIFA welcomes veterinarians that studied abroad to
obtain their Doctorate in Veterinary
[[Page 20241]]
Medicine degree (or equivalent) to apply for the VMLRP as long as the
professional veterinary medicine degree was obtained from a college of
veterinary medicine accredited by the AVMA Council on Education, a list
that includes fourteen schools outside the United States as of October
21, 2009.
Comment: Two commentors, AVMA and NAFV, recommended adding ``animal
health'' to the definition of ``practice of food supply veterinary
medicine'' and the areas that have food supply veterinarian shortages.
NIFA Response: NIFA agrees. ``Animal health'' has been added to
both definitions in the definitions section (Sec. 3431.3) in the final
regulations.
Comment: One commentor recommended that ``caprine'' be added to the
definition of ``Food animal''.
NIFA Response: ``Caprine'' has been added to the definition of
``food animal'' in the definitions section (Sec. 3431.3).
State Animal Health Official
Comment: Three commentors suggested that the State Animal Health
Official be required to consult with the State Veterinary Association
and other interested parties within the State when identifying
underserved areas within a State.
NIFA Response: We strongly recommend that State Animal Health
Officials involve other leading animal health experts in the nomination
process as they identify underserved areas within their respective
States.
Shortage Nominations
Comment: One commentor expressed concern that low density
agricultural areas will be regarded as less important than areas of
heavily concentrated agriculture.
Comment: One commentor recommended that representatives of Federal
agencies be included on an official review panel.
NIFA Response: NIFA will take these comments into consideration as
it develops the solicitation for nominations for veterinarian shortage
situations and implements the review panel.
Comment: One commentor urged USDA to examine the feasibility of
establishing an indexing system whereby each shortage situation that is
designated is awarded a weighted score for severity of shortage.
NIFA Response: As with other review processes conducted by NIFA,
the review panel will evaluate the composite qualitative and
quantitative arguments presented in the submitted nomination packages
against criteria described elsewhere in this notice. The panel will
classify each shortage situation as either ``Recommended for
designation'' or ``Not recommended for designation''.
Comment: One commentor suggested that solicitation notices be
published on an annual basis instead of a biennial basis. Another
commentor requested clarification on the frequency of the need to apply
for the designation of shortage areas and the need to reassess a
designation once it is filled by a veterinarian enrolled in the VMLRP.
NIFA Response: NIFA presumes that, over time, the shortage
situation priorities of a State will change due to veterinarians
relocating to fill critical areas designated by the VMLRP. NIFA will
also be mindful of spontaneous shifts in perceived threats to animal
health in time and space. To address changing conditions, NIFA program
staff will assess the relative demand for reprioritization of shortage
situation distribution within the States on an annual basis. However,
NIFA reserves the right to conduct this solicitation on a biennial
basis to save administrative costs and to adhere to the aggressive
annual program schedule and/or to respond to funding fluctuations.
Selection Process
Comment: One commentor stated that the Interim Rule did not address
how applicants would be chosen for specific shortage areas.
NIFA Response: NIFA will establish the evaluation criteria and
process and determine the makeup of the application review panel before
the application period opens. Applicants will be ranked based on their
qualifications relative to the attributes of the shortage situation
applied for.
Licensure
Comment: One commentor recommended that licensure not be a blanket
requirement for eligibility to apply for the VMLRP, but that
veterinarians should be in compliance with State and local regulations,
including having the appropriate certifications and licenses, in the
jurisdiction of the shortage situation.
NIFA Response: NIFA agrees and has updated Parts 3431.8 and 3431.10
of the regulations to reflect that licensure is required only if it is
mandated by the State and local regulations in which the shortage
situation is sited.
Federal Veterinarians
Comment: Three commentors stated that it was not clear to what
degree the VMLRP would apply to veterinarians working for the Federal
government.
NIFA Response: NIFA recognizes that NVMSA is intended to address a
national problem. NIFA has also acknowledged in the interim rule that
approximately 10 percent of the loan repayment awards will be made
available to address public practice shortages and at least 90 percent
of funds will be awarded to private practice food animal veterinarians
to assure appropriate emphasis as requested by the legislation set
forth by Congress. Hence, some designated veterinarian shortage
situations may be Federal positions. However, these positions must be
nominated by the State Animal Health Official (SAHO), designated by the
review panel as ``recommended for designation,'' and approved by the
Secretary for designation.
Retention
Comment: Fourteen commentors stated the importance of making VMLRP
awards to include veterinarians with established practices in shortage
areas as a form of retention in addition to the recruitment of
veterinarians to shortage areas.
NIFA Response: NIFA agrees. The SAHO may identify and submit a
shortage situation based on the assessment that there is a great risk
of losing an established veterinarian in a given shortage situation and
that the need to retain a veterinarian in this area is of utmost
importance.
Appropriation
Comment: Three commentors mentioned the importance of having
adequate, stable, and reliable funding. AVMA and NAFV also stated that
NIFA should move towards optimal funding of $6 million each year
through fiscal year 2016.
NIFA Response: NIFA and USDA both support the President's proposed
budget each year. Congress is ultimately responsible for the
development and passage of the annual Federal appropriations bill. As
NIFA is prohibited from lobbying Congress, the stability and magnitude
of future Federal funding for the VMLRP will depend on Congressional
consideration of Presidential recommendations and public interests
balanced against other fiscal priorities.
Allocation of Awards
Comment: One commentor suggested that 90 percent of awards be
devoted to veterinarians involved with food animal medicine and rural
practice (mixed large animal and small animal) who have at least 30
percent or more involvement with food animal species.
[[Page 20242]]
Another commentor recommended that the 10 percent of the awards offered
to mixed animal practitioners be devoted to the food animal discipline
for at least half of their practice.
NIFA Response: NIFA agrees with the notion that there is practical
value in identifying service commitment requirements for practitioners
of food supply veterinary medicine of less than 100 percent.
Accordingly, all three shortage situation types identified in the
nomination form allow for different percentages of full-time equivalent
commitment, commensurate with a variety of different public and private
practice scenarios.
Scholarships
Comment: One commentor recommended that USDA allocate four
scholarships to the Washington State University College of Veterinary
Medicine to allow students to pay down principal and interest on
qualifying loans accrued while a veterinary student.
NIFA Response: NIFA appreciates and accepts all comments. However,
this comment is beyond the scope of the VMLRP as the VMLRP is a
competitive program and its benefits apply to educational loans taken
out by graduates of a school of veterinary medicine. Furthermore,
participants are required to hold a Doctor of Veterinary Medicine
degree or the equivalent and serve in a shortage area immediately in
order to receive VMLRP benefits.
Mentoring
Comment: Two commentors urged NIFA to establish a mentoring program
for participants in the program.
NIFA Response: NIFA agrees. NIFA will investigate options for
including a mentoring component as part of the VMLRP.
Debt Threshold
Comment: Two commentors questioned the need to have a debt
threshold for individuals to be eligible to apply to the VMLRP.
NIFA Response: NIFA disagrees. If there are veterinarians with
minimal amounts of educational debt that are willing to commit for a
number of years of service to a shortage situation, they should be able
to do so without the VMLRP benefit. The goal of the VMLRP is to fill
shortage situations with veterinarians that would have otherwise gone
elsewhere. NIFA also aims to maximize the number of agreements, and
entering agreements with those with negligible debt would create an
additional administrative burden (both cost and personnel time) as an
individual's debt level has no effect on the administrative cost to
process an application and execute a service agreement. Establishing a
debt threshold eliminates the administrative burden of processing
applications from those who will scarcely benefit from the VMLRP.
Diagnostic Lab
Comment: Two commentors requested NIFA to recognize the shortage of
veterinarians in AAVLD laboratories and to allow veterinarians entering
the diagnostic laboratory workforce to be considered under the category
of ``public practice''.
NIFA Response: Veterinarians entering the diagnostic laboratory
workforce will be eligible for the VMLRP under the public practice
nomination provisions and limitations. The number of agreements
available to this area depends on (a) the nominations by the SAHOs, and
(b) recommendations of designation by the review panel.
Emergency Situations
Comment: Two commentors stated their support for the concept of the
proposed pilot program for VMLRP participants to be called away to work
in emergency situations. However, both commentors also shared concerns
about the proper implementation of this component of the program.
NIFA Response: Due to limited funding and the intricacies involving
the emergency component, this component will not be implemented during
the first year of the VMLRP.
Long-Term Program Impact
Comment: Two commentors expressed concern about the focus of the
VMLRP. One commentor stated that ``It seems that many of these types of
programs end up helping those who have a background and obvious desire
to already go into such a career.'' The other commentor cited a program
where ``most of the nurses, and other health care workers, only remain
there as long as is necessary to receive the payback and leave as
quickly as possible thereafter leaving the reservation's health care no
better off than it was before.''
NIFA response: NIFA appreciates all comments both positive and
negative. NIFA plans to conduct an impact evaluation on the VMLRP to
assess whether the desired outcomes are achieved.
Program Benefits
Comment: One commentor recommended that the amount of funding
provided to cover a VMLRP recipient's tax obligation be reviewed every
three years to assure tax coverage is adequate.
NIFA Response: NIFA will reassess the tax percentage every three
years to ensure VMLRP participants are provided proper tax coverage.
Section 3431.13(e) has been broadened to allow that the amount provided
for reimbursement of tax liabilities will not exceed ``any other cap
established by the Secretary.''
Increasing Educational Debt
Comment: Five commentors stated concerns about rising educational
debt for aspiring veterinarians. One commentor questioned whether the
maximum annual loan repayment of $25,000 was sufficient. Another
commentor stated that adjustments need to be included to allow for
increases in annual loan limits. Yet another commentor stated that the
$25,000 repayment level is a meaningful amount that will help address
the educational debt load.
NIFA Response: After program implementation, NIFA will continue to
monitor trends among participants, applicants, and graduating
veterinarians to ensure the VMLRP remains successful in providing a
financial incentive to fill shortage areas, while maximizing the number
of agreements at the same time.
Other Revisions to the Interim Regulation
A correction was made to the Withdrawal definition in Sec. 3413.3
to signify that a withdrawal occurs prior to the VMLRP making the first
quarterly payment on behalf of the participant rather than the first
annual payment.
Timeline for Implementing the Program
NIFA published a solicitation for the veterinarian shortage
situations via a Federal Register notice on January 22, 2010 [75 FR
3697-3704] with a solicitation period of 45 days. At the same time,
NIFA 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). NIFA
anticipates soliciting for VMLRP participants in April 2010 (open for
60 days).
In addition to this final regulation, which addresses most of the
policies associated with this program, NIFA plans to create
informational Web pages (providing detailed information and procedures)
for the program similar to the pages created for the NIH DLR programs.
[[Page 20243]]
Please note that the solicitation for veterinary shortage
situations and the VMLRP RFA will provide more specific details on the
program.
Administrative Requirements for the Final Rulemaking
Executive Order 12866
The Office of Management and Budget has reviewed this final rule
because while it is not economically significant, it implements the
Veterinary Medicine Loan Repayment Program (VMLRP). This final 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 final 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
The Department certifies that this final rule has been assessed in
accordance with the requirements of the Paperwork Reduction Act, 44
U.S.C. 3501 et seq. (PRA). The VMLRP Veterinarian Shortage Situation
Nomination form has been approved by OMB as No. 0524-0046. The VMLRP
Application Package and Reporting Requirements have been approved by
OMB as No. 0524-0047.
Catalog of Federal Domestic Assistance
This interim regulation applies to the following Federal assistance
program administered by NIFA, 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 final 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 final rule in accordance with
Executive Order 13175, 65 FR 67249 (Nov. 9, 2000), and has determined
that it does not have ``tribal implications.'' The final 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 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 final rule easier to
understand.
List of Subjects in Part 3431
Administrative practice and procedure, Agricultural research,
education, extension, Federal assistance, Veterinarians.
0
For the reasons discussed in the preamble, NIFA amends Chapter XXXIV of
Title 7 of the Code of Federal Regulations as follows:
Chapter XXXIV--National Institute of Food and Agriculture
0
1. The heading of chapter XXXIV is revised to read as set forth above.
0
2. Part 3431 is revised 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.
3431.18 Service agreement.
3431.19 Payment and tax liability.
3431.20 Administration.
3431.21 Breach.
3431.22 Waiver.
3431.23 Service to Federal government in emergency situations.
3431.24 Reporting requirements, monitoring, and close-out.
Authority: 7 U.S.C. 3151a; Pub. L. 106-107 (31 U.S.C. 6101
note).
Subpart A--Designation of Veterinarian Shortage Situations
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 of this part 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 of this part.
Sec. 3431.3 Definitions and acronyms.
(a) General definitions. As used in this part:
Act means the National Veterinary Medical Service Act, as amended.
Agency or NIFA means the National Institute of Food and
Agriculture.
Department means the United States Department of Agriculture.
Food animal means the following species: Bovine, porcine, ovine/
camelid, cervid, poultry, caprine, and any other species as determined
by the Secretary.
Food supply veterinary medicine means all aspects of veterinary
medicine's involvement in food supply
[[Page 20244]]
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, animal health, and other public and private practices that
contribute to the production of a safe and wholesome food supply.
Practice of veterinary medicine means 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:
(1) 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
(2) The use of complementary, alternative, and integrative
therapies, or
(3) The use of any manual or mechanical procedure for reproductive
management, or
(4) The rendering of advice or recommendation by any means
including telephonic and other electronic communications with regard to
any of paragraphs (1), (2), (3), or (4) 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.
State animal health official or SAHO 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 a college of veterinary medicine
accredited by the AVMA Council on Education.
Veterinarian shortage situation means any of the following
situations in which the Secretary, in accordance with the process in
subpart A of this part, 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, animal health, epidemiology, and food safety.
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.
(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 a college of veterinary medicine accredited by the
AVMA Council on Education, 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
Federal, State, or local government entity, accredited 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 a college or school of
veterinary medicine accredited by the AVMA Council on Education. 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 of 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
[[Page 20245]]
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 quarterly 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 an annual basis.
However, the Secretary reserves the right to solicit veterinarian
shortage situations every two or 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 is the person responsible for submitting and certifying
veterinarian shortage situations within the State to NIFA officials. It
is strongly recommended that the State animal health official of each
State involve the leading health animal experts in the State in the
nomination process.
Sec. 3431.6 Review of nominations.
(a) Peer panel. State shortage situations 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
of this part.
Subpart B--Administration of the Veterinary Medicine Loan Repayment
Program
Sec. 3431.8 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 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 assure 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.
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 a college of veterinary medicine accredited by the
AVMA Council on Education;
(2) Have qualifying educational loan debt as defined in Sec.
3431.3;
(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 of this part,
within the time period specified in the VMLRP service agreement offer;
and
(4) Provide certifications and verifications in accordance with
Sec. 3431.16.
(b) Non-eligibility. The following individuals are ineligible to
apply to the VMLRP:
(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 are 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 total qualified debt that does not meet
the debt threshold.
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) Comply with all State and local regulations (including
appropriate licensure where required) in the jurisdiction in which he
or she proposes to practice;
[[Page 20246]]
(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. (1) 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 supply veterinary medicine:
(i) Major or emphasis area(s) during formal post-secondary training
(e.g., bachelors degree major, minor);
(ii) Major or emphasis area(s) during formal training for DVM/VMD
degree;
(iii) Specialty training area/discipline (e.g., board certification
or graduate degree);
(iv) Non-degree/non-board certification training or certifications
(e.g., animal agrosecurity coursework and certifications);
(v) Applicant's personal statement;
(vi) Awards;
(vii) Letters or recommendation, if applicable; and
(viii) Other documentation or criteria, as specified in the RFA.
(2) Applicants will then be ranked based on their qualifications
relative to the attributes of the shortage situation applied for.
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. Tax payments equal
to 39 percent of the loan repayments will be credited directly to the
participant's IRS (Federal tax) account simultaneously with each loan
repayment.
(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 or any other cap established by the Secretary) 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
(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 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;
(5) 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;
(6) Non-educational loans, including home equity loans; and
[[Page 20247]]
(7) 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:
(1) The veterinary service shortage situations as defined in the
RFA;
(2) The eligibility criteria for application of section Sec.
3431.9 of this part; and
(3) The selection priority of Sec. 3431.14 of this part.
(b) The applicant shall provide sufficient documentation to
establish that the applicant has qualifying loans as described in 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 of this
part.
(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) if national
accreditation is required for the veterinary shortage position for
which the applicant has an offer of employment.
(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. Tax payments equal to 39 percent of the
total loan repayment amount will be credited directly to the
participant's IRS (Federal tax) account simultaneously with each loan
payment. 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
liability resulting from loan repayments received under the VMLRP.
However, the Secretary may increase the cap, if appropriate.
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 or other approved
cap) 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 or other approved cap 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 NIFA, Office of Extramural
Programs (OEP). OEP may carry out this program directly or enter into
agreements with
[[Page 20248]]
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. 3431.21 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 paragraph (b) of this section.
(d) Amount of repayment. The service agreement shall provide the
method for the calculation of the amount owed 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. 3431.22 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.
Done in Washington, DC, this 9th day of April 2010.
Dr. Meryl Broussard,
Interim Deputy Director, National Institute of Food and Agriculture.
[FR Doc. 2010-8628 Filed 4-16-10; 8:45 am]
BILLING CODE 3410-22-P