[Federal Register Volume 77, Number 247 (Wednesday, December 26, 2012)]
[Proposed Rules]
[Pages 75918-75933]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-30811]
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DEPARTMENT OF VETERANS AFFAIRS
38 CFR Part 17
RIN 2900-AO34
VA Health Professional Scholarship and Visual Impairment and
Orientation and Mobility Professional Scholarship Programs
AGENCY: Department of Veterans Affairs.
ACTION: Proposed rule.
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SUMMARY: The Department of Veterans Affairs (VA) proposes to amend its
VA Health Professional Scholarship Program (HPSP) regulations. VA also
proposes to establish regulations for a new program, the Visual
Impairment and Orientation and Mobility Professional Scholarship
Program (VIOMPSP). These proposed regulations would comply with and
implement sections 302 and 603 of the Caregivers and Veterans Omnibus
Health Services Act of 2010 (the 2010 Act). Section 302 of the 2010 Act
established the VIOMPSP, which authorizes VA to provide financial
assistance to certain students seeking a degree in visual impairment or
orientation or mobility, in order to increase the supply of qualified
blind rehabilitation specialists for VA and the United States. Section
603 of the 2010 Act reauthorized and modified HPSP, a program that
provides scholarships for education or training in certain healthcare
occupations.
DATES: Comments must be received by VA on or before February 25, 2013.
ADDRESSES: Written comments may be submitted: By mail or hand-delivery
to Director, Regulations Management (02REG), Department of Veterans
Affairs, 810 Vermont Avenue NW, Room 1068, Washington, DC 20420; by fax
to (202) 273-9026; or through http://www.Regulations.gov. Comments
should indicate that they are submitted in response to ``RIN 2900-AO34-
VA Health Professional Scholarship and Visual Impairment and
Orientation and Mobility Professional Scholarship Programs.'' All
comments received will be available for public inspection in the Office
of Regulation Policy and Management, Room 1063B, between the hours of 8
a.m. and 4:30 p.m., Monday through Friday (except holidays). Call (202)
461-4902 for an appointment. (This is not a toll-free number.) In
addition during the comment period, comments may be viewed online
through the Federal Docket Management System at http://www.Regulations.gov.
FOR FURTHER INFORMATION CONTACT: Nicole Nedd, Healthcare Talent
Management Office, Department of Veterans Affairs, 1250 Poydras Street,
Suite 1000, New Orleans, LA 70113; (504) 565-4900. (This is not a toll-
free number.)
SUPPLEMENTARY INFORMATION: Pursuant to 38 U.S.C. 7601 through 7619,
7633, 7634, and 7636, VA has promulgated regulations implementing the
HPSP, codified at 38 CFR 17.600 through 17.612. As explained in current
Sec. 17.600, the purpose of this program is to award scholarships ``to
students receiving education or training in a direct or indirect
health-care services discipline to assist in providing an adequate
supply of such personnel for VA and for the Nation.'' This rulemaking
proposes to amend the HPSP regulations in response to section 603 of
the 2010 Act, Public Law 111-163, which amended the statutory authority
for this program.
Section 603(a) and (c) renumbered and amended 38 U.S.C. 7618 as
section 7619 and added a new section 7618. Section 7619, as amended,
establishes a new delimiting date of December 31, 2014, for the HPSP.
The previous delimiting date for HPSP had been December 31, 1998, and,
therefore, the program is no longer active. Although this new
delimiting date does not by itself require revision to any of the
regulations that were in place when the program was previously active,
section 603(b) of the 2010 Act amended the eligibility requirements for
the HPSP, codified in 38 U.S.C. 7612(b)(2), to allow a broader spectrum
of candidates to qualify for the HPSP. Section 7618(a) of title 38,
United States Code, as added by section 603(c) of the 2010 Act,
requires VA to modify the HPSP so that it will be ``designed to fully
employ Scholarship Program graduates as soon as possible, if not
immediately, upon graduation and completion of necessary
certifications, and to actively assist and monitor graduates to ensure
certifications are obtained in a minimal amount of time.'' Paragraph
(b) of 38 U.S.C. 7618 requires participants of the HPSP to ``perform
clinical tours in assignments or locations determined by [VA] while the
participants are enrolled in the course of education or training for
[[Page 75919]]
which the scholarship is provided.'' Finally, section 7618(c) requires
VA to ensure that the graduates of the HPSP are assigned a mentor who
is employed at the facility where the graduates will perform their
obligated service. This rulemaking proposes regulatory revisions to
implement these changes in statutory authority, and to make other
programmatic changes that will clarify VA policy and how VA implements
HPSP.
This rulemaking also proposes new regulations to implement section
302 of the 2010 Act. Section 302 of the 2010 Act established chapter 75
of 38 U.S.C., which requires VA to create a scholarship program similar
to the HPSP called the Visual Impairment and Orientation and Mobility
Professional Scholarship Program (VIOMPSP). The purpose of the new
program ``is to increase the supply of qualified blind rehabilitation
specialists for [VA] and the Nation.'' 38 U.S.C. 7501(b). The statutory
authority is substantively similar (and in many ways identical) to the
existing authority governing the HPSP. The statutory similarities
between the programs include certain defined terms, as well as certain
provisions concerning failure to meet the obligations of the HPSP or
the VIOMPSP.
We propose that VA policies and regulations related to the two
programs will be as similar as possible. To the maximum extent
possible, we propose to utilize, amending as necessary, the existing
regulations to govern the commonalities between both programs, and then
to add additional regulations necessary to implement the new VIOMPSP.
This will eliminate redundancies between the two programs, facilitate
the administration of the program by VA, and make it easier for the
public to understand the details of both programs. For example, VA and
non-VA education professionals who seek or promote the use of
government scholarships will be required to understand a smaller set of
regulations than they would if we administered the two programs through
entirely separate regulatory frameworks. In addition, promoting
consistency will further the clear legislative intent that the programs
be administered in a similar manner, as evidenced by the similarities
between the authorizing statutes. We will discuss each proposed rule,
seriatim, beginning with the amendments to the existing regulations
governing the HPSP.
As noted above, the HPSP is governed by current Sec. Sec. 17.600
through 17.612. All sections not specifically discussed below would not
be amended by this proposed rule. We also propose to establish new
Sec. Sec. 17.625 through 17.636 to implement the new VIOMPSP.
Proposed VA Health Professional Scholarship Program Regulations
17.600 Purpose
Current Sec. 17.600 sets forth the purpose of the regulations
governing the HPSP, and states that it is designed to provide
scholarships for education or training in ``[d]isciplines [that]
include nursing, physical therapy, occupational therapy, and other
specified direct or indirect health-care disciplines if needed by VA.''
38 CFR 17.600. We propose to remove this list of disciplines from Sec.
17.600 and refer in proposed Sec. 17.603(b) to a list of disciplines
in 38 U.S.C. 7401(1) and (3), where the list will be expanded to
include additional disciplines required by changes in law. We believe
that Sec. 17.600 should be a general regulation, and the specific
disciplines eligible for consideration for the HPSP should be listed in
the regulation governing eligibility. We would, therefore, state in
proposed Sec. 17.600 that the individual must pursue ``a course of
study leading to a degree in certain healthcare occupations [ ] listed
in 38 U.S.C. 7401(1) and (3).''
We also propose to add a new second sentence to Sec. 17.600 that
would clarify the intent of the HPSP. Section 7601(b) of title 38,
United States Code, states that ``[t]he purpose of [HPSP] is to assist
in providing an adequate supply of trained health-care personnel for
the Department [of Veterans Affairs] and the Nation.'' The proposed
second sentence of 38 CFR 17.600 would state that ``[t]he HPSP allows
VA to provide scholarship awards to facilitate recruitment and
retention of employees in several hard-to-fill healthcare
occupations.''
17.601 Definitions
Current Sec. 17.601 contains definitions applicable ``[f]or the
purpose of these regulations,'' and organizes the definitions in
numbered paragraphs. Consistent with more modern organizational
frameworks, we propose to list the definitions alphabetically. Except
as described in this supplementary information, we do not propose any
substantive changes to the existing definitions; this is simply a
reorganization. Any term not specifically discussed in the
Supplementary Information section of this rulemaking would contain the
definition found in current Sec. 17.601.
We propose to change the introductory paragraph to Sec. 17.601 to
indicate that the definitions would apply to Sec. Sec. 17.600 through
17.636, because, as noted above, the HPSP and the VIOMPSP will be
administered in a similar manner. Rather than repeat all the common
definitions in the VIOMPSP regulations, which would be governed by
Sec. Sec. 17.625 through 17.636, proposed later in this rulemaking, we
have chosen to make the definitions in Sec. 17.601 applicable to both
programs, except where noted.
Section 17.601(a) currently defines ``acceptable level of academic
standing.'' We would define ``acceptable level of academic standing''
to mean ``the level at which a participant may continue to attend
school under the standards and practices of the school at which a
participant is enrolled in a course of study for which an HPSP or
VIOMPSP scholarship was awarded.'' The revised definition would be
consistent with the current definition and would be applicable for both
the HPSP and the VIOMPSP.
We propose to delete current paragraph (b), which defines ``Act,''
because this term is not used in the current or proposed HPSP
regulations and would not be used in the proposed VIOMPSP regulations.
We propose to define the term ``acceptance agreement'' as a signed
legal document between VA and a participant of the HPSP or VIOMPSP.
Such agreement would specify the obligations of VA and the participant,
which must be consistent with Sec. Sec. 17.600 through 17.612 for the
HPSP or Sec. Sec. 17.626 through 17.636 for the VIOMPSP. We would also
state that the acceptance agreement must include a mobility agreement,
an agreement to accept the payment of the scholarship, an agreement to
perform the obligated service, and an agreement to maintain enrollment
and attendance in the approved HPSP or VIOMPSP course, to include
maintaining an acceptable level of academic standing. The terms of the
``acceptance agreement'' are stated in 38 U.S.C. 7504 and 7604, and are
specified throughout these proposed regulations as the requirements of
the particular programs. This proposed definition would be consistent
with the statutory requirements, current regulatory requirements, and
these proposed regulations. Without a mobility agreement and an
agreement to perform obligated service, we cannot ensure future VA
employment. Without an agreement to accept payment of the scholarship
and maintain appropriate academic standings, we cannot ensure
completion of the course of education.
We propose to delete current paragraph (d), which defines
``advanced clinical training,'' because this term is
[[Page 75920]]
not used in the current or proposed HPSP regulations. The term is used
only once in the VIOMPSP regulations. Therefore, we would defer to the
common dictionary meaning of the term.
Current Sec. 17.601(c) defines the term ``affiliation agreement''
to mean ``a Memorandum of Affiliation between a Department of Veterans
Affairs health care facility and a school of medicine or osteopathy.''
We propose to amend this definition to eliminate the reference to
``Memorandum of Affiliation'' and, in its place, explain what the
agreement entails. The new definition provides that an affiliation
agreement is ``a legal document that enables the clinical education of
trainees at a VA or non-VA medical facility. An affiliation agreement
is required for all education or training that involves direct patient
contact, or contact with patient information, by trainees from a non-VA
institution.'' We would eliminate the requirement that the school be a
school of medicine or osteopathy because scholarships may be offered to
applicants pursuing degrees offered in schools other than traditional
schools of medicine or osteopathy.
We propose to add a definition of ``credential'' to mean ``the
licensure, registration, certification, required education, relevant
training and experience, and current competence necessary to meet VA's
qualification standards for employment in certain healthcare
occupations.'' VA's qualification standards for employment in certain
healthcare occupations are found in VA Handbook 5005. We would not
include these employment standards in this rulemaking because such
employment standards are not regulated by statute, and are beyond the
scope of this rulemaking.
Current Sec. 17.601(h) defines ``degree'' with language specific
to the administration of the HPSP. We propose to amend this definition,
which would be substantially similar to the current definition, would
meet the needs of both programs, and would, therefore, be applicable to
both HPSP and VIOMP. We would define the term ``degree'' to mean the
successful completion of the course of study for which the HPSP or the
VIOMPSP was awarded. We would state that VA recognizes the following
degrees for purposes of the HPSP: ``A doctor of medicine; doctor of
osteopathy; doctor of dentistry; doctor of optometry; doctor of
podiatry; or an associate, baccalaureate, master's, or doctorate degree
in another healthcare discipline needed by VA.'' We would also state
that VA recognizes a bachelor's, master's, education specialist or
doctorate that meets the core curriculum and supervised practice
requirements in visual impairment and blindness for purposes of the
VIOMPSP.
Current Sec. 17.601(t) defines ``degree completion date'' to mean
``the date on which a participant completes all requirements of the
degree program.'' We propose to not include this term because it is not
used throughout the proposed HPSP or VIOMPSP regulations.
Current Sec. 17.601(i) defines the term ``full-time student.''
However, because each school defines a full-time student differently,
we propose to simplify the definition of ``full-time student'' to now
mean ``an individual who meets the requirements for full time
attendance as defined by the school in which they are enrolled.''
We propose to add a definition for ``HPSP'' to mean ``the VA Health
Professional Scholarship Program authorized by 38 U.S.C. 7601 through
7619.'' This proposed definition would establish a distinct acronym for
the VA Health Professional Scholarship Program for ease of use
throughout these regulations.
We propose to add a definition for ``mobility agreement'' to mean
``a signed legal document between VA and a participant of the HPSP or
VIOMPSP, in which the participant agrees to accept assignment at a VA
facility selected by VA where he or she will fulfill the obligated
service requirement.'' A mobility agreement is a required component of
all participants' acceptance agreements and may require relocation to
another geographic location. This proposed definition would be
consistent with 38 U.S.C. 7502 and 7603, and with the manner in which
the term was used in previously administering the HPSP when that
program was active.
We propose to define ``obligated service'' to mean ``the period of
time during which the HPSP or VIOMPSP participant must be employed by
VA in a full-time clinical occupation for which the degree prepared the
participant as a requirement of the acceptance agreement.'' We would
define ``obligated service'' because it is an essential element of the
acceptance agreement.
Current Sec. 17.601(j) defines ``other educational expenses'' to
mean ``a reasonable amount of funds determined by the Secretary to
cover expenses such as books, and laboratory equipment.'' This defined
term is only used in Sec. 17.606(a)(1)(ii), which states that a
scholarship award will consist of ``other educational expenses,
including books and laboratory equipment.'' Thus, the meaning of the
term when used in the substantive regulation is clear, and a separate
definition is unnecessary. We, therefore, propose to delete this term
from Sec. 17.601.
Current Sec. 17.601(r) defines ``part-time student'' to mean ``an
individual who is a Department of Veterans Affairs employee permanently
assigned to a Department of Veterans Affairs health care facility who
has been accepted for enrollment or enrolled for study leading to a
degree on a less than full-time but not less than half-time basis.''
This definition continues to be applicable and correct for the HPSP.
However, participants of the VIOMPSP are not required to be VA
employees. We propose to define ``part-time student'' using the current
definition in Sec. 17.601 with minor stylistic changes. We would
define part-time student for purposes of the HPSP and for purposes of
the VIOMPSP. The only distinction between the two definitions would be
that the HPSP part-time student would be a VA employee.
Current Sec. 17.601(n) defines ``participant or scholarship
program participant'' to mean ``an individual whose application to the
Scholarship Program has been approved and whose contract has been
accepted by the Secretary and who has yet to complete the period of
obligated service or otherwise satisfy the obligation or financial
liabilities of the Scholarship Contract.'' We propose to amend the
definition to read as follows: ``[A]n individual whose application to
the HPSP or VIOMPSP has been approved, whose acceptance agreement has
been consummated by VA, and who has yet to complete the period of
obligated service or otherwise satisfy the obligation or financial
liabilities of such agreement.'' We would make this change so that the
definition could apply to both the HPSP and the VIOMPSP. We also would
not continue to use the term ``Scholarship Contract'' in the
definition, because this is not a term used throughout the proposed
HPSP or VIOMPSP regulations. We would instead use the term ``acceptance
agreement,'' which we are proposing to define in this rulemaking.
Current Sec. 17.601(k) defines the term ``required educational
equipment'' to mean ``educational equipment which must be rented or
purchased by all students pursuing a similar curriculum in the same
school.'' We propose to delete this term because it is not used
throughout the proposed HPSP or VIOMPSP regulations.
Current paragraph (m) of Sec. 17.601 defines ``Scholarship Program
or Scholarship'' to mean ``the Department
[[Page 75921]]
of Veterans Affairs Health Professional Scholarship Program authorized
by section 216 of the Act.'' The current definition uses the section of
the public law as the authority citation for the HPSP. We propose to
define ``Scholarship Program'' as ``the VA Health Professional
Scholarship Program (HPSP) authorized by 38 U.S.C. 7601 through 7619.''
This change is made to cite the corresponding statutes that authorize
the HPSP. Citing the statutes instead of the public law is a more
accurate way of stating the authority for the HPSP. We are retaining
this definition because it still applies to existing HPSP regulations
that are not amended by this rulemaking. However, we would not use the
term ``Scholarship Program'' in the new VIOMPSP regulations.
Current paragraph (o) of Sec. 17.601 defines the term ``school.''
We propose to amend the current definition to apply to the HPSP and the
VIOMPSP. We would state that ``school means an academic institution
that is accredited by a body or bodies recognized for accreditation by
the U.S. Department of Education or by the Council for Higher Education
Accreditation (CHEA).'' We would state that for purposes of the HPSP a
school would ``offer[ ] a course of study leading to a degree in a
healthcare service discipline needed by VA.'' We would also state that
for purposes of the VIOMPSP a school would ``offer[ ] a course of study
leading to a degree in visual impairment or orientation and mobility.''
We would move the authority citation after paragraph (o) to the end of
this section to accord with current VA conventions for citing
authorities.
Current Sec. 17.601(p) defines ``school year'' to mean ``for
purposes of the stipend payment, all or part of the 12-month period
from September 1 through August 31 during which a participant is
enrolled in the school as a full-time student.'' We propose to not
include the time period ``from September 1 through August 31.'' The
commencement of a school year varies from institution to institution
and limiting a school year from September 1 through August 31 may
disqualify otherwise eligible participants whose school year commences
on other dates. We would, therefore, define the term ``school year'' to
mean ``for purposes of the HPSP and its stipend payment, and the
VIOMPSP, all or part of the 12-month period that starts on the date the
participant begins school as a full-time student.''
We propose to add a definition for ``VA.'' We would define VA as
``the Department of Veterans Affairs.'' The current regulations were
written a long time ago, and they often refer to the ``Secretary.''
However, the modern trend in our regulations is to refer to ``VA'' and
not the ``Secretary.'' We would use the term ``VA'' instead of the term
``Secretary'' throughout this rulemaking for ease of use and
readability, consistent with 38 U.S.C. 301. We acknowledge that
regulations not affected by this rulemaking still contain the term
``Secretary.''
Current paragraph (s) of Sec. 17.601 defines a ``Department of
Veterans Affairs employee'' as ``an individual employed and permanently
assigned to a VA health care facility.'' In order to include potential
applicants who are VA employees, but who are not employed in a VA
medical center, we propose to eliminate the reference to VA healthcare
facilities. We also propose to refine our definition of VA employee to
now mean ``an individual permanently employed by VA.'' A ``permanently
employed'' individual does not include an individual who is employed
temporarily or on a contractual basis.
Current paragraph (u) of Sec. 17.601 defines ``VA health care
facility'' to mean ``Department of Veterans Affairs medical centers,
medical and regional office centers, domiciliaries, independent
outpatient clinics, and outpatient clinics in regional offices.'' We
propose to amend this definition to remove outdated references to VA
clinics, such as outpatient clinics in regional offices that no longer
exist. The updated definition would incorporate current VA medical
facilities, and would define VA healthcare facility to mean ``a VA
medical center, independent outpatient clinic, domiciliary, nursing
home (community living center), residential treatment program and any
of a variety of community based clinics (including community based
outpatient clinics, outreach clinics, rural health resource centers,
primary care telehealth clinics, and Vet Centers), consolidated mail
outpatient pharmacies, and research centers.''
We propose to add a definition for ``VIOMPSP'' to mean ``the Visual
Impairment and Orientation and Mobility Professional Scholarship
Program authorized by 38 U.S.C. 7501 through 7505.'' This proposed
definition would establish a distinct acronym for the Visual Impairment
and Orientation and Mobility Professional Scholarship Program that
would allow for ease of use throughout these regulations.
The current authority for this section is 38 U.S.C. 7633. We
propose to amend this authority citation to include the authority for
the newly added definitions. The authority citation would be 38 U.S.C.
301, 7501(a)(1), 7504, 7602(a), 7604(1)(B), and 7633.
There is a collection number at the end of current Sec. 17.601.
Proposed Sec. 17.601 would list the definitions that apply to the HPSP
and the VIOMPSP. A collection number is not required at the end of a
definitions section. We, therefore, propose to delete such collection
number and relocate it where it is appropriate, namely following
Sec. Sec. 17.604, 17.612, 17.629, and 17.636.
17.602 Eligibility for the HPSP
We propose to amend Sec. 17.602 by changing the title of the
section from ``[e]ligibility'' to ``[e]ligibility for the HPSP.''
Current paragraph (a)(1) states that a participant must ``[b]e accepted
for enrollment or be enrolled as a full-time student in an accredited
school located in a State''. We would state that the participant must
be ``unconditionally accepted for enrollment'' to specify that the
participant's enrollment is not contingent upon meeting a condition or
requirement that may or may not be met by the participant at the start
of the school year. This condition or requirement may prevent a
participant from enrolling in a school, and as such cause the
participant to be in breach of the acceptance agreement.
We would also add a new paragraph (a)(6). Proposed paragraph (a)(6)
would require participants in the HPSP to perform clinical tours while
they are enrolled in the course of education or training as part of
their acceptance agreement. Under 38 U.S.C. 7618(b), VA must ``require
participants in [the HPSP] to perform clinical tours in assignments or
locations determined by the Secretary while the participants are
enrolled in the course of education or training for which the
scholarship is provided.'' We note that the statute authorizes VA to
determine ``assignments and locations'' of the clinical tour. In
practice, VA attempts to make such determinations while participants
are still pursuing their degrees, to facilitate their transition to VA
employment, and VA attempts to assign participants in facilities
located as close as possible to the participant's educational
institution, unless the participant requests a different location and
VA is able to accommodate that request.
17.603 Availability of HPSP Scholarships
We propose to amend Sec. 17.603 by changing the title of the
section from ``[a]vailability of scholarships'' to ``[a]vailability of
HPSP scholarships.'' We would also add a new paragraph (b) and the
current paragraph, reworded for
[[Page 75922]]
clarity, would be redesignated as paragraph (a).
Proposed paragraph (b) would authorize VA to grant a scholarship in
a discipline or program for participation in HPSP if VA determines that
such discipline or program ``is necessary for the improvement of
healthcare of veterans.'' The authority citation for this change would
be 38 U.S.C. 7612(b)(2), which authorizes HPSP scholarship awards in a
field of education or training leading to employment as an appointee
under 38 U.S.C. 7401(1) and (3). In turn, section 7401(1) and (3)
contains a long list of disciplines, as well as authority to add
additional classes that meet certain strict statutory criteria and in
accordance with the procedural restrictions specified by statute.
Rather than restate that list in the proposed rule, we would simply
refer to section 7401(1) and (3) in the regulation text.
17.604 Application for the HPSP
We propose to amend the title of Sec. 17.604 from ``[a]pplication
for the scholarship program'' to ``[a]pplication for the HPSP.'' We
also propose to amend Sec. 17.604 for clarity.
The current regulation states that an applicant for an HPSP
scholarship ``must submit an accurate and complete application'' that
includes ``a signed written contract to accept payment of a scholarship
and to serve a period of obligated service.'' It does not state that a
mobility agreement is required. A mobility agreement is part of the
acceptance agreement in which the participant agrees to accept
assignment wherever VA will assign him or her to fulfill the obligated
service with VA. We would state that ``[a]n applicant for the HPSP must
submit an accurate and complete application including a signed written
acceptance agreement.'' This statement would be consistent with prior
practice and 38 U.S.C. 7603. The period of obligated service is further
explained in Sec. 17.607.
17.605 Selection of HPSP participants
We propose to amend Sec. 17.605 by changing the title of the
section from ``[s]election of participants'' to ``[s]election of HPSP
participants.'' On August 18, 1983, VA amended Sec. 17.605 by adding a
new paragraph (d) and redesignating the existing paragraph (d) as
paragraph (e). 48 FR 37,398. However, paragraph (a) referenced the
original paragraph (d) and such reference was not amended to correctly
reflect the redesignated paragraph (e). However, we redesignated
paragraph (e) in this rulemaking, as explained below, to proposed
paragraph (f). We propose to correct paragraph (a) by amending the
references to ``paragraph (d) of this section'' to correctly refer to
``paragraph (f) of this section.''
We would also amend paragraph (a) to state that if there are more
applicants to the HPSP than there are available funds, VA will select
the participants based on a random method of selection, considering
veterans first among all equally qualified candidates. This method of
selection supports VA's hiring mission to attract, recruit and hire
veterans into the VA workforce while also being consistent with the
training and hiring goals of the HPSP. We would make other minor
stylistic changes for ease of readability.
We propose to add a new paragraph (d) that would require VA to
notify in writing those individuals whose applications are approved,
and would state that an individual becomes a participant of the HPSP
upon receipt of VA's written approval. Although current Sec. 17.605
does not contain a similar provision, in practice VA has always
provided such notification to HPSP applicants and has considered
applicants to be participants upon their receipt of such notice. We
believe that including this requirement in regulation will make it
easier to understand the application and approval process. We would
also redesignate current paragraphs (d) and (e) as proposed paragraphs
(e) and (f), respectively.
17.607 Obligated service
Current Sec. 17.607(b)(1) governs the beginning date of a
participant's obligated service. The second sentence of current
paragraph (b)(1) states that ``[t]he Secretary shall appoint the
participant to such position within 60 days after the participant's
degree completion date, or the date the participant becomes licensed in
a State to practice in the discipline for which the degree program
prepared the participant, whichever is later.'' We propose to amend
this provision to incorporate the language of 38 U.S.C. 7618(a), as
amended by the 2010 Act. Section 7618(a) states that the HPSP shall be
modified to require that program graduates be fully employed ``as soon
as possible, if not immediately, upon graduation and completion of
necessary certifications,'' and that VA shall ``actively assist and
monitor graduates to ensure certifications are obtained in a minimal
amount of time following graduation.'' The addition of this language is
essential in maintaining VA's part of the acceptance agreement by
employing HPSP participants in a timely manner. Although VA will be
actively working to ensure positions are available for these
participants, we believe the current allowance of 60 days does not
allow a sufficient window for VA or for the participants. We propose to
extend the time limit from 60 to 90 days. We will strive to make the
appointment as soon as possible within those 90 days. In order to
incorporate the proposed extension of the time limit, and to ensure
that VA complies with the acceptance agreement, we would state in
proposed paragraph (b)(1) that ``VA will appoint the participant to
such position as soon as possible, but no later than 90 days after the
date that the participant receives his or her degree, or the date the
participant becomes licensed in a State or becomes certified, whichever
is later.'' VA will actively assist and monitor graduates to ensure
credentials are obtained in a minimal amount of time following
graduation. We would also state: ``If a participant fails to obtain his
or her degree, or fails to become licensed in a State or become
certified no later than 180 days after receiving the degree, the
participant is considered to be in breach of the acceptance
agreement.'' This statement would alert participants of the
consequences of not upholding the acceptance agreement. We would also
reformat current Sec. 17.607(b)(1) into three paragraphs for ease of
readability and amend the current language for clarity.
We propose to amend the authority citation after paragraph (b) of
Sec. 17.607 to include 38 U.S.C. 7618(a), which was amended by the
2010 Act.
As required by 38 U.S.C. 7618(c), we would state in paragraph
(b)(1)(iii) that ``VA will ensure that the participant is assigned a
mentor who is employed at the same facility where the participant
performs his or her obligated service at the commencement of such
service.'' The appointment of a mentor will allow the participant an
easier transition into the VA healthcare system.
We propose to amend and reorganize current paragraph (c) for ease
of readability. We would organize the current rules addressing the
service obligation of full-time students in a new paragraph (c)(1),
which would also include the new requirement of 38 U.S.C. 7612(c)(1)(B)
that HPSP participants must agree to serve as full-time clinical VA
employees ``for no less than 2 years.'' The current regulation, in
accordance with 38 U.S.C. 7612(c)(1)(B) (1991) prior to the 2010 Act,
requires a minimum of only 1 year of obligated service.
We would address the service obligation of part-time students in
proposed paragraph (c)(2). We would make no revisions to the
substantive
[[Page 75923]]
content of current paragraph (c) governing part-time students. We would
add, however, that the obligated service for a part-time student must
be satisfied by full-time clinical employment with VA. We would add
this statement to alert potential participants that they may not
fulfill the service obligation on a part-time basis.
We propose to amend the authority citation after paragraph (c) of
Sec. 17.607 to include 38 U.S.C. 7618(c), which was amended by the
2010 Act.
Current Sec. 17.607(d) states that the participant ``must be
willing to move to another geographic location for service
obligation.'' We would amend paragraph (d) to state that the
participant's willingness to move is in accordance with his or her
mobility agreement. As explained previously, the mobility agreement is
part of the acceptance agreement between the participant and VA. By
adding this statement we would make clear that the participant will
have agreed to such movement as part of the application process for the
program.
Current Sec. 17.607(d) states in part that ``[a] participant who
received a scholarship as a part-time student may be allowed to serve
the period of obligated service at the health care facility where the
individual was assigned when the scholarship was authorized.'' Because
the participant may receive a degree that is not associated with the VA
position in which he or she was employed at the commencement of the
HPSP, VA may not be able to guarantee the obligated service in that
same healthcare facility. We would, therefore, now state that the
participant may ``serve the period of obligated service at the
healthcare facility where the individual was assigned when the
scholarship was authorized, if there is a vacant position which will
satisfy the individual's mobility agreement at that facility.''
17.611 Bankruptcy
Current Sec. 17.611 states that ``[a]ny payment obligation
incurred may not be discharged in bankruptcy under title 11 U.S.C.
until 5 years after the date on which the payment obligation is due.''
This regulatory language is derived from 38 U.S.C. 7634(c), which
states: ``An obligation of a participant under the Educational
Assistance Program (or an agreement thereunder) for payment of damages
may not be released by a discharge in bankruptcy under title 11 before
the expiration of the five-year period beginning on the first date the
payment of such damages is due.'' Section 7634(c) applies to the HPSP
program because that program is part of the Educational Assistance
Program under chapter 76 of title 38, United States Code. We propose to
add an additional sentence to clarify that the rule applies to both
HPSP and VIOMPSP, pursuant to 38 U.S.C. 7505(d), which is substantively
identical to 38 U.S.C. 7634(c).
Because Sec. 17.611 would now apply to both the HPSP and VIOMPSP,
we would add 38 U.S.C. 7505(d) to the authority citation in Sec.
17.611.
17.612 Cancellation, waiver, or suspension of obligation
Current Sec. 17.612 concerns cancellation, waiver, or suspension
of obligations under the HPSP.
Our authority for current Sec. 17.612(a) is 38 U.S.C. 7634(a),
which states that a participant's obligations under HPSP are cancelled
upon the participant's death. Our authority for the rest of current
Sec. 17.612, paragraphs (b) through (d), is 38 U.S.C. 7634(b), which
allows VA to ``prescribe regulations providing for the waiver or
suspension of any obligation of a participant for service or payment
under [HPSP] (or an agreement under [HPSP]) whenever noncompliance by
the participant is due to circumstances beyond the control of the
participant or whenever [VA] determines that the waiver or suspension
of compliance is in the best interest of the United States.''
Proposed Sec. 17.612(a)(1) would make this section applicable to
both HPSP and VIOMPSP. The current rules and the changes proposed by
this rulemaking notice are fully consistent with our authority under
chapter 75. Section 7505(c) requires VA to prescribe regulations
``providing for the waiver or suspension of any obligation of an
individual for service or payment * * * whenever (1) noncompliance by
the individual is due to circumstances beyond the control of the
individual; or (2) the Secretary determines that the waiver or
suspension of compliance is in the best interest of the United
States.''
Proposed paragraph (a)(2) restates current paragraph (a), without
change.
Under the current rule, we authorize a one-year waiver or
suspension of service or payment obligations that may be ``renew[ed]''
based on an application ``setting forth the basis, circumstances, and
causes which support the requested action.'' 38 CFR 17.612(b)(1).
Waivers or suspensions may be granted whenever compliance is impossible
or whenever granting the application would be in the best interests of
VA. 38 CFR 17.612(b)(2). Under current paragraphs (c) and (d), we
discuss the basis for a finding of such impossibility. We do not
propose to revise these paragraphs, and believe that it is consistent
with the authorizing statutes to make these bases applicable to both
the HPSP and VIOMPSP.
We propose to amend current paragraph (b)(1) to add two new
requirements for the granting of a waiver or suspension. The first
requirement would be that a participant must submit a written request
for a waiver or suspension of his or her service or payment obligation
no later than 1 year after the date the participant is notified he or
she is in breach of his or her contract. The second requirement would
obligate a participant to comply with a request by VA for additional
information no later than 30 days after the request was made. The
addition of these two requirements would eliminate ambiguity regarding
dates of submission of waiver or suspension requests, and further
submission of additional evidence. This change is consistent with our
authority under 38 U.S.C. 7634 to prescribe regulations on this issue.
We propose to define the terms ``waiver'' and ``suspension'' for
consistency of use. We would state that ``[a] waiver is a permanent
release by VA of the obligation either to repay any scholarship funds
that have already been paid to or on behalf of the participant, or to
fulfill any other acceptance agreement requirement. If a waiver is
granted, then the waived amount of scholarship funds may be considered
taxable income.'' Federal tax regulations, at 26 CFR 1.61-12(a), state:
``The discharge of indebtedness, in whole or in part, may result in the
realization of income.'' IRS Publication 525 (2010), further states
that ``if a debt you owe is canceled or forgiven, other than as a gift
or bequest, you must include the canceled amount in your income.'' We
would state that the waived amount of scholarship funds may be taxable
income to alert the participant of this potential tax liability.
In regard to suspensions, we would state that VA may approve an
initial request for suspension for a period of up to one year. However,
while waivers are permanent releases from obligations, suspensions are
only temporary and will be granted initially for one year. Participants
may request extension of a suspension for one additional year. The
participant will be in breach of his or her acceptance agreement once
the suspension period has ended. We would also state that if VA
approves a suspension, ``VA will temporarily discontinue providing any
scholarship funds to or on behalf of the participant while the
participant's scholarship is in a suspended status'' or ``temporarily
delay the enforcement of acceptance agreement requirements.''
[[Page 75924]]
We propose to add a new paragraph (e) to Sec. 17.612 that would
state that ``[a]ny previous participant of any federally sponsored
scholarship program who breached his or her acceptance agreement or
similar agreement in such scholarship program is not eligible to apply
for another scholarship. This includes participants who previously
applied for, and received, a waiver under this section.'' If a
participant has breached the acceptance agreement under any other
federally sponsored scholarship program such participant would be at a
greater risk of breaching another acceptance agreement. VA has limited
funds to award scholarships and VA would benefit if such funds were
expended on participants who have not breached an acceptance agreement.
Section 7634 of 38 U.S.C. allows VA to prescribe regulations for the
``waiver or suspension of any obligation of a participant for service
or payment under the Educational Assistance Program.'' In view of the
similarities between the HPSP and VIOMPSP, we also propose to allow
waivers and suspensions for the VIOMPSP, even though that program is
authorized by chapter 75. We believe that our authority to regulate
waivers and suspensions under 38 U.S.C. 7505(c) and 7634 includes the
authority to regulate the effect that granting a waiver or suspension
should have on the participant's eligibility for future scholarships.
We propose to bar a participant who previously breached an HPSP or
VIOMPSP acceptance agreement, including those who were granted a waiver
after they had breached the agreement. A participant who is granted a
suspension of benefits would not be considered to be in breach of his
or her acceptance agreement because such participant is expected to
resume his or her course of study or obligated service after the period
of suspension has concluded. Due to the limited availability of these
scholarship funds, we believe it is inappropriate to award scholarships
to individuals who are at risk for noncompliance, and believe that it
is rational to assume that an individual who previously breached a
contract has a higher risk of doing so again over one who has not
previously breached a contract. It is also more equitable to distribute
funds to persons who have not previously been offered the opportunity
to participate in one of these programs, rather than to persons who
have been given the opportunity but who failed to complete their
obligations.
We propose to add a new paragraph (f). Paragraph (f) would state
that ``[d]ecisions to approve or disapprove waiver requests are final
and binding determinations'' and not subject to reconsideration or
appeal. This paragraph is based on current practice and would clarify
the finality of decisions made under 38 U.S.C. 7505(c) and 7634(b),
which allow VA to prescribe regulations that provide for the waiver or
suspension of any obligation of an individual for service or payment.
Finally, as a technical matter, we will revise Sec. 17.612 so that
the authority citations for the section appear at the end of the
section.
Proposed Visual Impairment and Orientation Mobility Professional
Scholarship Program Regulations
17.625 Purpose
Proposed Sec. 17.625 would parallel Sec. 17.600, however, it
would be specifically applicable to the VIOMPSP. Proposed section
17.600 would recognize that both VA and non-VA employees may be
eligible for the HPSP. However, proposed Sec. 17.625 would state that
the VIOMPSP would be used primarily as a recruitment tool, and ``will
be publicized throughout educational institutions in the United States,
with an emphasis on disseminating information to such institutions with
high numbers of Hispanic students and to historically black colleges
and universities.'' The prospective participants in the VIOMPSP are not
the same as the prospective participants in the HPSP. We would make
this distinction clear in proposed Sec. 17.625. These requirements
would be consistent with 38 U.S.C. 7501.
17.626 Definitions
As stated in the preamble for proposed Sec. 17.601, in order to
eliminate redundancies in the HPSP and the VIOMPSP, the definitions in
Sec. 17.601 would apply to both of these programs. In order to alert
the reader that the defined terms for the VIOMPSP are contained in
Sec. 17.601, we propose to state in Sec. 17.626 that ``[f]or the
definitions that apply to Sec. Sec. 17.625 through 17.636, see Sec.
17.601.''
17.627 Eligibility for the VIOMPSP
Although proposed Sec. 17.627 would parallel the structure of
current Sec. 17.602, there would be several substantive eligibility
distinctions between HPSP and the VIOMPSP.
Paragraph (a) would set forth the basic eligibility requirements
for VIOMPSP. Pursuant to 38 U.S.C. 7501(a), VIOMPSP would be available
to U.S. citizens who are ``accepted for enrollment or currently
enrolled in a program of study leading to a degree in orientation and
mobility, low vision therapy, or vision rehabilitation therapy, or a
dual degree'' and who submit a VIOMPSP signed agreement. We would also
include the requirement to submit an application in order to be
considered for the VIOMPSP, as set forth in 38 U.S.C. 7502. We would
state that the participant must be ``unconditionally accepted for
enrollment'' to specify that the participant's enrollment is not
contingent upon meeting a condition or requirement that may or may not
be met by the participant at the start of the school year. This
condition or requirement may prevent a participant from enrolling in a
school, and as such cause the participant to be in breach of the
acceptance agreement. A ``dual degree'' refers to a course of study
that enables an individual to become dually certified in two of the
three professional certifications offered by the Academy for
Certification of Visual Rehabilitation and Education Professionals
(ACVREP). ACVREP offers certification in orientation and mobility, low
vision therapy, and vision rehabilitation therapy (formerly known as
blind rehabilitation teaching). A dual degree would include the core
curriculum and supervised practice in two of these three certification
areas during the participant's course of study. The requirement of
citizenship is consistent with the overall structure and purpose of
chapter 75. Under section 7501(b), the stated purpose of the program
is, in part, to increase the supply of qualified blind rehabilitation
specialists for the United States, and under section 7501(c), VA is
required to publicize the program throughout the U.S. After completion
of their education, participants must serve as full-time clinical VA
employees for a minimum of three years. These requirements could be
harder to meet in the case of non-U.S. citizens whose ability to remain
in this country is contingent on factors beyond VA control.
Unlike HPSP scholarship recipients who, under current Sec.
17.602(b), may receive HPSP benefits as part-time students provided
that they are current, full-time VA employees at the time that the
scholarship is awarded and for the duration of the scholarship, VIOMPSP
scholarship recipients are not required to maintain VA employment, so
we would not include a parallel provision requiring part-time students
to be and remain employed by VA in the eligibility regulation for
VIOMPSP.
Proposed paragraph (b) would parallel current Sec. 17.602(c),
which would not be
[[Page 75925]]
revised by this rulemaking. Current Sec. 17.602(c) bars HPSP
eligibility for any applicant ``who, at the time of application, owes a
service obligation to any other entity to perform service after
completion of the course of study.'' This bar is consistent with 38
U.S.C. 7602(b), which states that an individual is ineligible for the
HPSP or VIOMPSP ``if the individual is obligated under any other
Federal program to perform service after completion of the course of
education or training of such individual.'' The current rule,
applicable to HPSP, bars eligibility for any individual who owes a
service obligation--irrespective of whether that obligation is the
result of a Federal program, because such an obligation would
complicate (or render impossible) the individual's obligation to
provide service to VA.
17.628 Availability of VIOMPSP scholarships
Proposed Sec. 17.628 would parallel proposed Sec. 17.603(a),
clarifying that ``VA will make awards under the VIOMPSP only when VA
determines it is necessary to assist in alleviating shortages or
anticipated shortages of personnel in visual impairment or orientation
and mobility programs.'' Also consistent with Sec. 17.603(a), we would
state that VA's determination as to the number of VIOMPSP scholarships
that will be awarded in a given fiscal year, as well as the number of
full- and/or part-time students who will receive such awards, is
subject to the availability of appropriations. This would be consistent
with 38 U.S.C. 7501(a)(1) and with the way that VA had previously
administered, and proposes to continue to administer, the HPSP program.
17.629 Application for the VIOMPSP
Proposed Sec. 17.629 would state the application procedure for the
VIOMPSP. Proposed paragraph (a) would state the procedure for applying
for the VIOMPSP. Under proposed paragraph (a), the potential
participant ``must submit an accurate and complete application,'' and
the application would include a signed acceptance agreement. This
proposed paragraph would be in accordance with 38 U.S.C. 7502(a), and
would be consistent with the administration of the HPSP.
Proposed paragraph (b) would state VA's duty to inform a potential
participant prior to acceptance in the VIOMPSP of his or her rights and
liabilities if accepted into the program. We would also provide to
anyone applying to the program the terms and conditions of
participation in the VIOMPSP and service in VA. These VA duties are
substantively identical to 38 U.S.C. 7502(a)(2).
17.630 Selection of VIOMPSP participants
Proposed Sec. 17.630 would parallel current Sec. 17.605, as
revised by this rulemaking. However, several paragraphs in Sec. 17.605
do not apply to the VIOMPSP. We would not include the selection
criteria for part-time students from Sec. 17.605(c) that pertain to VA
employment at the time of application because, as stated above in the
discussion of Sec. 17.627, part-time students in the VIOMPSP are not
required to be full-time VA employees. We would also not include a
paragraph to parallel current Sec. 17.605(e) because VIOMPSP will not
offer continuation awards.
Our authority for the selection criteria in proposed Sec. 17.630
would be 38 U.S.C. 7504(3). The criteria, as noted, mirror the current
criteria for HPSP, which, while that program was active, were easy for
participants to understand and for VA to apply. The fact that Congress
decided to renew the HPSP, and established a substantively similar
program, the VIOMPSP, supports continuing to interpret these statutory
authorities and to continue to apply the existing regulatory criteria
in the same manner as we have done in the past.
Proposed paragraph (a) would state the general provisions for
selecting a participant for the VIOMPSP. VA will give priority
consideration to applicants entering their final year of education or
training, in order to achieve our goal of recruiting new healthcare
practitioners on an expedited basis through the VIOMPSP. We would state
that if there are more applicants to the VIOMPSP than there are
available funds, VA will select the participants based on a random
method of selection, considering veterans first among all equally
qualified candidates. This is consistent with the procedures for the
HPSP outlined in Sec. 17.605(a), as amended by this rulemaking. This
method of selection supports VA's hiring mission to attract, recruit
and hire veterans into the VA workforce.
We would state the selection criteria for participants in the
VIOMPSP in proposed paragraph (b). These criteria would include
academic performance, work experience, faculty and employer
recommendations, or career goals. These criteria are identical to the
criteria used to select HPSP participants, and VA has found through the
administration of that program that they accurately identify qualified
individuals and that they indicate a likelihood of successful
completion of a course of study.
Proposed paragraph (c) would require VA to notify in writing those
individuals whose applications are approved, and would state that an
individual becomes a participant of the VIOMPSP upon receipt of VA's
written approval. As previously stated in this rulemaking, current
Sec. 17.605 does not contain a similar provision. In practice,
however, VA has always provided such notification to HPSP applicants
and has considered applicants to be participants upon their receipt of
such notice. We believe that including this requirement in regulation
will make it easier to understand the application and approval process.
Proposed paragraph (d) would indicate the period of time for which
VA may award a scholarship under the VIOMPSP for full-time and part-
time participants. We would state that VIOMPSP scholarships are awarded
for the number of years that are required to complete program of study
leading to a degree in orientation and mobility, low vision therapy, or
vision rehabilitation therapy, or a dual degree. We would also state
that the number of years covered by an individual scholarship will be
equal to the number of years that the participant has yet to complete
to obtain a degree. Awards of scholarships under the VIOMPSP are
subject to the availability of funds, and VA may award a full-time
student a scholarship for a minimum of 1 year to a maximum of 4 years.
VA may also award a part-time student a scholarship for a minimum of 1
year to a maximum of 6 years.
17.631 Award procedures
Proposed paragraph (a) of Sec. 17.631 would state the maximum
amount that a participant may receive while enrolled in the VIOMPSP.
The amount a participant may receive per year may not exceed the total
cost of tuition and fees for the academic year for the degree program
in which the participant is enrolled, up to a maximum annual amount for
a full-time student of $15,000.00. We would state that payments to
scholarship participants are exempt from Federal taxation. We would add
this clarifying language in order to eliminate any doubt that the
participant may have regarding any possible Federal tax liability upon
receipt of the scholarship award. We would also state that the total
amount of assistance per year provided to a participant who is a part-
time student shall bear the same ratio to the amount that would be paid
if the participant were a full-time student as the coursework carried
by the participant to
[[Page 75926]]
full-time coursework. The total amount of assistance a participant may
receive under the VIOMPSP is $45,000.00. We would clarify that if an
individual is enrolled in a program of study leading to a dual degree,
the tuition and fees would not exceed the amounts necessary for the
minimum number of credit hours to achieve such dual degree. We would
add this clarification to alert the participants that VA would not
issue payments for additional non-requisite courses that the
participant may have enrolled in to complement the dual degree. VA
would only provide assistance to the extent that VA's financial
assistance, coupled with that obtained through other sources, does not
exceed the tuition and fees for the degree for which the VIOMPSP was
granted. We would also state that VA will directly issue payments on
behalf of the participant to the school in which the participant is
enrolled for the amount of tuition and fees. This proposed paragraph
would apply 38 U.S.C. 7503, without substantive change.
Proposed paragraph (b) would state that if a participant of the
VIOMPSP repeats a course, VA would not pay for the additional costs
relating to the repeated course work. We believe that it is important
to restrict payments in this manner to ensure that our limited VIOMPSP
funds are spent only on the best and brightest students enrolled in the
program. We would also state that if scholarship payments were
suspended under this section, VA will resume such payments upon
notification from the school that the participant has returned from the
leave-of-absence or has satisfactorily completed the repeated course
work and is pursuing the course of study for which the VIOMPSP was
awarded. We would require the notification from the school in order to
avoid erroneous scholarship payment in the event that a participant did
not pass the repeated course or did not return from the leave-of-
absence on the anticipated date.
We are authorized under 38 U.S.C. 7504(3) to add to the acceptance
agreement ``any other terms and conditions that [VA] considers
appropriate for carrying out'' the VIOMPSP. A similar provision is set
forth in 38 U.S.C. 7604(5), for purposes of the HPSP, which we
implemented in 38 CFR 17.606(b). We recognize that Sec. 17.606(b) is
not explicitly addressed by statute and the regulatory language is not
in the acceptance agreement itself. However, the proposed definition of
acceptance agreement would require consistency with regulations, and we
believe that it is important to note this restriction in regulation, as
we did for the HPSP, in order to provide adequate notice of the
restriction.
17.632 Obligated service
We would state the requirements for the participant's obligated
service to VA for the VIOMPSP in proposed Sec. 17.632. Proposed
paragraph (a) would state that, except as provided in paragraph (d) of
this section, a participant would serve as a full-time clinical VA
employee in the rehabilitation practice of the participant's discipline
in an assignment or location determined by VA while participating in
the VIOMPSP.
Proposed paragraph (b) would state when the participant's obligated
service would begin. Such service would begin ``on the date on which
the participant obtains any required applicable credentials and when
appointed as a full-time clinical VA employee in a position for which
the degree prepared the participant.'' Proposed paragraph (b) would be
in accordance with 38 U.S.C. 7504(3). We would state that VA will
appoint the participant in a full-time clinical position as soon as
possible, but no later than 90 days after the date the participant
receives his or her degree, or the date the participant obtains the
required credentials, whichever date is later. Even though VA would
like to employ the participant as soon as possible, we must allow time
for the participant to obtain the required credentials. Such
credentials do not have to be obtained immediately after the completion
of the course. However, VA may not employ the participant in a clinical
position without such credentials. The 90 days would allow the
participant sufficient time to obtain the necessary credentials. We
would also state that ``[i]f a participant fails to obtain his or her
degree, or fails to obtain any required applicable credentials within
180 days after receiving the degree, the participant is considered to
be in breach of the acceptance agreement.'' As previously stated in
this rulemaking under proposed paragraph Sec. 17.607(b), we would add
this statement to alert participants of the consequences of not
upholding the acceptance agreement.
Proposed paragraph (c) would state that the duration of the
obligated service would be for 3 calendar years. Such obligated service
must be completed no later than 6 years after completion of the
educational program for which the scholarship was awarded and a degree
was received. These provisions are stated in 38 U.S.C. 7504(2)(D).
Proposed paragraph (d) would state that, as part of the
participant's mobility agreement, he or she must be willing to accept
assignment where VA assigns the obligated service. The mobility
agreement is not specifically required by 38 U.S.C. 7504; however, it
is part of the other terms and conditions that VA deems appropriate to
carry out this program under paragraph (3) of section 7504.
Proposed paragraph (e) would state that ``[n]o period of advanced
clinical training will be credited towards satisfying the period of
obligated service incurred under the VIOMPSP.'' Such clinical training
may be required for completion of the required degree in blind
rehabilitation or mobility, and, if so, must be completed before the
participant begins the obligated service. This proposed paragraph also
falls under the purview of 38 U.S.C. 7504(3).
17.633 Deferment of Obligated Service
The regulations that govern deferment of obligated service for the
VIOMPSP are the same as those found in current Sec. 17.608, which
apply to the HPSP. Deferments of obligated service may be requested by
participants in certain degree programs to allow them to complete an
approved program of advanced clinical training. In an effort to
simplify the HPSP and VIOMPSP regulations, we propose to provide a
cross-reference to Sec. 17.608 for the rules that govern deferment of
obligated service, in proposed Sec. 17.633.
17.634 Failure To Comply With Terms and Conditions of Participation
Proposed Sec. 17.634 would parallel current Sec. 17.610, which
would not be revised by this rulemaking.
Under 38 U.S.C. 7505(a) and (b), VA is required to establish in
regulation an amount that must be repaid by individuals who fail to
satisfy the terms of their acceptance agreements, and that amount must
be ``equal to the unearned portion'' of their scholarship. For purposes
of the HPSP, such liability is established in 38 U.S.C. 7617 and
codified in regulation at 38 CFR 17.610. As explained throughout this
notice, we believe that Congress expected VA to administer the VIOMPSP
in a similar manner as the HPSP, given the similarity between the
applicable statutes and the intent behind their enactment. We recognize
that, for purposes of a breach of a VIOMPSP agreement, Congress did not
require us to use the same formulas established in 38 U.S.C. 7617 for
the HPSP; however, Congress did allow us to do so by authorizing VA to
establish regulations. Consequently, we believe that it is appropriate
to establish a regulation for the VIOMPSP that parallels current Sec.
17.610.
[[Page 75927]]
Proposed paragraph (a) would parallel current Sec. 17.610(a). This
proposed paragraph would state that if the participant fails to accept
payment, or instructs the school to not accept payment, under the
VIOMPSP award, he or she must pay the United States $1,500 in
liquidated damages. This dollar amount would be in addition to any
service or other obligation incurred under the agreement. We note that
this liquidated damages provision applies only if the participant
refuses to accept payment of the scholarship, or causes a school not to
accept such payment. In these cases, we have not already invested in
the applicant and therefore our costs have not been significant.
Moreover, the damages (monetary and nonmonetary, such as causing VA to
deny another person's application based on approval of the individual's
application) caused by such refusal are similar between both programs.
Therefore, it is appropriate to adopt for the VIOMPSP the same $1,500
liquidated damages amount required for the HPSP. We also recognize that
the statute applicable to the VIOMPSP may not specifically contemplate
liquidated damages, but we believe that it is appropriate to adopt such
a provision, based on our authority to establish regulations.
Liquidated damages are easier to administer, reduce administrative
costs, and provide effective resolution of this matter.
Proposed paragraph (b) would be based on current Sec. 17.610(b);
however, we would provide certain clarifications. First, this paragraph
would apply within one year after an individual meets a description in
paragraphs (b)(1) through (4) of an individual who must pay damages
under proposed paragraph (b). Second, whereas current Sec.
17.610(b)(5) states that the damages are in lieu of ``performing any
service obligation,'' we would state that these damages would otherwise
fulfill the terms of the acceptance agreement. Technically, under the
acceptance agreement, the individual is required to stay enrolled in
school and maintain acceptable academic standing; however, once he or
she has met any of the criteria in paragraphs (b)(1) through (4), three
of which relate to withdrawing from school, those obligations by
definition cannot be fulfilled. Moreover, we want the rule to be clear
that once the damages are paid, the individual's liability is resolved.
Proposed paragraph (b)(4), unlike current Sec. 17.610(b), would state
that if a participant fails to become certified in the discipline for
which the degree prepared the participant, if applicable, within 180
days after such person becomes eligible to apply for certification, the
participant is considered to be in breach of the acceptance agreement.
The requirements for obtaining a certification under the VIOMPSP are
not the same as the requirements for becoming licensed to practice a
discipline for the HPSP. We believe that 180 days would provide ample
time to obtain the necessary certification for the VIOMPSP.
We also note that the amount of damages would be the full amount of
VIOMPSP funds paid on the individual's behalf. This is the same amount
paid by an HPSP participant. The authority for this provision is 38
U.S.C. 7505(a), which authorizes VA to collect the ``unearned portion''
of VIOMPSP funds at the time of breach. All of the criteria in Sec.
17.634(b)(1)-(4) apply prior to the time at which the participant
fulfills his or her obligated service to VA, and it is through such
obligated service that the participant earns his or her scholarship.
The classes of individuals subject to the repayment amount set
forth in proposed paragraph (b) would be established in paragraphs
(b)(1) through (4). These paragraphs would parallel current Sec.
17.610(b)(1) through (4). We would not include a provision similar to
Sec. 17.610(b)(5) because it references part-time VA employees who
fail ``to maintain employment in a permanent assignment in a VA health
care facility while enrolled in the course of training being pursued.''
As we have previously stated in this rulemaking, participants in the
VIOMPSP are not required to be VA employees, so those provisions of
Sec. 17.610(b)(5) would not be relevant.
Section 7505(a) of 38 U.S.C. states: ``An individual who receives
educational assistance under the scholarship program under this chapter
shall repay to the Secretary an amount equal to the unearned portion of
such assistance if the individual fails to satisfy the requirements of
the agreement entered into under section 7504 of this title, except in
circumstances authorized by the Secretary.'' Proposed Sec. 17.634(c)
would include a formula to calculate the amount the United States is
entitled to recover if a participant breaches his or her acceptance
agreement by failing to complete the obligated service. We would state
that to calculate the unearned portion of VIOMPSP funds VA would
``subtract the number of months of obligated service rendered from the
total months of obligated service owed, divide the remaining months by
the total obligated service, then multiply by the total amount of
VIOMPSP funds paid to or on behalf of the participant.'' We would also
provide a formula as a visual aid for ease of readability. The proposed
formula would be ``A = P((t-s)/t),'' in which ``A'' is the amount the
United States is entitled to recover; ``P'' is the amounts paid under
the VIOMPSP to or on behalf of the participant; ``t'' is the total
number of months in the participant's period of obligated service; and
``s'' is the number of months of obligated service rendered. Proposed
paragraph Sec. 17.634(c) would not parallel Sec. 17.610(c) because
the statute that governs the repayment of the VIOMPSP, 38 U.S.C. 7505,
is not the same as the statute that governs the repayment of the HPSP,
38 U.S.C. 7617.
17.635 Bankruptcy
The regulations that govern bankruptcy for the VIOMPSP are the same
as those found in Sec. 17.611, which apply to the HPSP. In an effort
to simplify the HPSP and VIOMPSP regulations, we propose to provide a
cross-reference to Sec. 17.611 for the rules that govern bankruptcy,
in proposed Sec. 17.635.
17.636 Cancellation, Waiver, or Suspension of Obligation
The regulations that govern cancellation, waiver, or suspension of
obligation for the VIOMPSP are the same as those found in Sec. 17.612,
which apply to the HPSP. In an effort to simplify the HPSP and VIOMPSP
regulations, we propose to provide a cross-reference to Sec. 17.612
for the rules that govern cancellation, waiver, or suspension of
obligation, in proposed Sec. 17.636.
Effect of Rulemaking
The Code of Federal Regulations, as proposed to be revised by this
proposed rulemaking, would represent the exclusive legal authority on
this subject. No contrary rules or procedures would be authorized. All
VA guidance would be read to conform with this proposed rule if
possible or, if not possible, such guidance would be superseded by this
rulemaking.
Paperwork Reduction Act
This proposed rule includes collections of information under the
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521) that require
approval by the Office of Management and Budget (OMB). Accordingly,
under 44 U.S.C. 3507(d), VA has submitted a copy of this rulemaking to
OMB for review. OMB assigns a control number for each collection of
information it approves. VA may not conduct or
[[Page 75928]]
sponsor, and a person is not required to respond to, a collection of
information unless it displays a currently valid OMB control number.
The VA Health Professional Scholarship Program contained a collection
control number 2900-0352, which expired on April 30, 1997. We propose
to establish a new collection control number for the revised VA Health
Professional Scholarship Program and for the new Visual Impairment and
Orientation and Mobility Professional Scholarship Program. Proposed
Sec. Sec. 17.604 and 17.629 contain a collection of information. If
OMB does not approve the collections of information as requested, VA
will immediately remove the provisions containing a collection of
information or take such other action as directed by OMB.
Comments on the collections of information contained in this
proposed rule should be submitted to the Office of Management and
Budget, Attention: Desk Officer for the Department of Veterans Affairs,
Office of Information and Regulatory Affairs, Washington, DC 20503,
with copies sent: By mail or hand delivery to the Director, Office of
Regulation Policy and Management (02REG), Department of Veterans
Affairs, 810 Vermont Ave., NW., Room 1068, Washington, DC 20420; by fax
to (202) 273-9026; or through www.Regulations.gov. Comments should
indicate that they are submitted in response to ``2900-AO34-VA Health
Professional Scholarship and Visual Impairment and Orientation and
Mobility Professional Scholarship Programs.''
OMB is required to make a decision concerning the collections of
information contained in this proposed rule between 30 and 60 days
after publication of this document in the Federal Register. Therefore,
a comment to OMB is best assured of having its full effect if OMB
receives it within 30 days of publication. This does not affect the
deadline for the public to comment on the proposed rule.
VA considers comments by the public on proposed collections of
information in--
Evaluating whether the proposed collections of information
are necessary for the proper performance of the functions of VA,
including whether the information will have practical utility;
Evaluating the accuracy of VA's estimate of the burden of
the proposed collections of information, including the validity of the
methodology and assumptions used;
Enhancing the quality, usefulness, and clarity of the
information to be collected; and
Minimizing the burden of the collections 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, e.g., permitting
electronic submission of responses.
Proposed Sec. Sec. 17.604 and 17.629 contain collections of
information under the Paperwork Reduction Act of 1995 for which we are
requesting approval by OMB. Under proposed Sec. Sec. 17.612 and
17.636, a participant of the VA Health Professional Scholarship Program
or Visual Impairment and Orientation and Mobility Professional
Scholarship Program may seek a waiver or suspension of obligated
service or payment under either program by submitting a written request
to VA. The requirement for such a written request, however, does not
constitute a collection of information under the Paperwork Reduction
Act of 1995 requiring OMB approval because the anticipated number of
respondents within a 12-month period is less than ten. See 5 CFR
1320.3(c).
Title: Application for VA Health Professional Scholarship and
Visual Impairment and Orientation and Mobility Professional Scholarship
Programs.
Summary of collection of information: The information required
determines the eligibility or suitability of an applicant desiring to
receive an award under the provisions of 38 U.S.C. 7601 through 7619,
and 38 U.S.C. 7501 through 7505. The VA Health Professional Scholarship
Program awards scholarships to students receiving education or training
in a direct or indirect healthcare services discipline to assist in
providing an adequate supply of such personnel for VA and for the
United States. The Visual Impairment and Orientation and Mobility
Professional Scholarship Program awards scholarships to students
pursuing a program of study leading to a degree in visual impairment or
orientation and mobility in order to increase the supply of qualified
blind rehabilitation specialists for VA and the Nation.
Description of the need for information and proposed use of
information: The information is needed to apply for the VA Health
Professional Scholarship Program or Visual Impairment and Orientation
and Mobility Professional Scholarship Program.
Description of likely respondents: Potential participants of the VA
Health Professional Scholarship Program or Visual Impairment and
Orientation and Mobility Professional Scholarship Program.
Estimated number of HPSP respondents per year: 5,000.
Estimated number of VIOMPSP respondents per year: 1,500.
Estimated frequency of HPSP responses per year: once.
Estimated frequency of VIOMPSP responses per year: once.
Estimated average burden per response for HPSP: 5 hours per year.
Estimated average burden per response for VIOMPSP: 5 hours per
year.
Estimated total HPSP annual reporting and recordkeeping burden:
25,000 hours per year.
Estimated total VIOMPSP annual reporting and recordkeeping burden:
7,500 hours per year.
Regulatory Flexibility Act
The Secretary hereby certifies that this proposed rule would not
have a significant economic impact on a substantial number of small
entities as they are defined in the Regulatory Flexibility Act, 5
U.S.C. 601- 612. This proposed rule would not directly affect any small
entities. Only applicants for scholarships could be directly affected.
Therefore, pursuant to 5 U.S.C. 605(b), this rulemaking is exempt from
the initial and final regulatory flexibility analysis requirements of
sections 603 and 604.
Executive Orders 12866 and 13563
Executive Orders 12866 and 13563 direct agencies to assess the
costs and benefits of available regulatory alternatives and, when
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, and other advantages; distributive impacts;
and equity). Executive Order 13563 (Improving Regulation and Regulatory
Review) emphasizes the importance of quantifying both costs and
benefits, reducing costs, harmonizing rules, and promoting flexibility.
Executive Order 12866 (Regulatory Planning and Review) defines a
``significant regulatory action,'' which requires review by OMB, as
``any regulatory action that is likely to result in a rule that may:
(1) Have an annual effect on the economy of $100 million or more or
adversely affect in a material way the economy, a sector of the
economy, productivity, competition, jobs, the environment, public
health or safety, or State, local, or tribal governments or
communities; (2) Create a serious
[[Page 75929]]
inconsistency or otherwise interfere with an action taken or planned by
another agency; (3) Materially alter the budgetary impact of
entitlements, grants, user fees, or loan programs or the rights and
obligations of recipients thereof; or (4) Raise novel legal or policy
issues arising out of legal mandates, the President's priorities, or
the principles set forth in this Executive Order.''
The economic, interagency, budgetary, legal, and policy
implications of this regulatory action have been examined and it has
been determined not to be a significant regulatory action under
Executive Order 12866.
Unfunded Mandates
The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C.
1532, that agencies prepare an assessment of anticipated costs and
benefits before issuing any rule that may result in expenditure by
State, local, and tribal governments, in the aggregate, or by the
private sector, of $100 million or more (adjusted annually for
inflation) in any given year. This proposed rule would have no such
effect on State, local, and tribal governments, or on the private
sector.
Catalog of Federal Domestic Assistance
There are no Catalog of Federal Domestic Assistance numbers and
titles for this rule.
Signing Authority
The Secretary of Veterans Affairs, or designee, approved this
document and authorized the undersigned to sign and submit the document
to the Office of the Federal Register for publication electronically as
an official document of the Department of Veterans Affairs. John R.
Gingrich, Chief of Staff, Department of Veterans Affairs, approved this
document on December 18, 2012, for publication.
List of Subjects in 38 CFR Part 17
Administrative practice and procedure, Alcohol abuse, Alcoholism,
Claims, Day care, Dental health, Drug abuse, Foreign relations,
Government contracts, Grant programs-health, Grant programs-veterans,
Health care, Health facilities, Health professions, Health records,
Homeless, Medical and dental schools, Medical devices, Medical
research, Mental health programs, Nursing homes, Philippines, Reporting
and recordkeeping requirements, Scholarships and fellowships, Travel
and transportation expenses, Veterans.
Dated: December 18, 2012.
Robert C. McFetridge,
Director, Office of Regulation Policy and Management, Office of the
General Counsel, Department of Veterans Affairs.
For the reasons set forth in the preamble, we propose to amend 38
CFR part 17 as follows:
PART 17--MEDICAL
1. The authority citation for part 17 continues to read as follows:
Authority: 38 U.S.C. 501, and as noted in specific sections.
2. Revise the authority citation preceding Sec. 17.600 to read as
follows:
Authority: 38 U.S.C. 7601-7619, 7633, 7634, and 7636.
3. Revise Sec. 17.600 to read as follows:
Sec. 17.600 Purpose.
The purpose of Sec. Sec. 17.600 through 17.612 is to establish the
requirements for the award of scholarships under the VA Health
Professional Scholarship Program (HPSP) to students pursuing a course
of study leading to a degree in certain healthcare occupations, listed
in 38 U.S.C. 7401(1) and (3), to assist in providing an adequate supply
of such personnel for VA. The HPSP allows VA to provide scholarship
awards to facilitate recruitment and retention of employees in several
hard-to-fill healthcare occupations.
(Authority: 38 U.S.C. 7601(b))
4. Revise Sec. 17.601 to read as follows:
Sec. 17.601 Definitions.
The following definitions apply to Sec. Sec. 17.600 through
17.636:
Acceptable level of academic standing means the level at which a
participant may continue to attend school under the standards and
practices of the school at which a participant is enrolled in a course
of study for which an HPSP or VIOMPSP scholarship was awarded.
Acceptance agreement means a signed legal document between VA and a
participant of the HPSP or VIOMPSP that specifies the obligations of VA
and the participant upon acceptance to the HPSP or VIOMPSP. An
acceptance agreement must incorporate by reference, and cannot be
inconsistent with, Sec. Sec. 17.600 through 17.612 (for HPSP
agreements) or Sec. Sec. 17.626 through 17.636 (for VIOMPSP
agreements), and must include:
(1) A mobility agreement.
(2) Agreement to accept payment of the scholarship.
(3) Agreement to perform obligated service.
(4) Agreement to maintain enrollment and attendance in the course
of study for which the scholarship was awarded, and to maintain an
acceptable level of academic standing.
Affiliation agreement means a legal document that enables the
clinical education of trainees at a VA or non-VA medical facility. An
affiliation agreement is required for all education or training that
involves direct patient contact, or contact with patient information,
by trainees from a non-VA institution.
Credential. Credential means the licensure, registration,
certification, required education, relevant training and experience,
and current competence necessary to meet VA's qualification standards
for employment in certain healthcare occupations.
Citizen of the United States means any person born, or lawfully
naturalized, in the United States, subject to its jurisdiction and
protection, and owing allegiance thereto.
Degree represents the successful completion of the course of study
for which a scholarship was awarded.
(1) HPSP. For the purposes of the HPSP, VA recognizes the following
degrees: a doctor of medicine; doctor of osteopathy; doctor of
dentistry; doctor of optometry; doctor of podiatry; or an associate,
baccalaureate, master's, or doctorate degree in another healthcare
discipline needed by VA.
(2) VIOMPSP. For the purposes of the VIOMPSP, VA recognizes a
bachelor's, master's, education specialist or doctorate that meets the
core curriculum and supervised practice requirements in visual
impairment and blindness.
Full-time student means an individual who meets the requirements
for full time attendance as defined by the school in which they are
enrolled.
HPSP means the VA Health Professional Scholarship Program
authorized by 38 U.S.C. 7601 through 7619.
Mobility agreement means a signed legal document between VA and a
participant of the HPSP or VIOMPSP, in which the participant agrees to
accept assignment at a VA facility selected by VA where he or she will
fulfill the obligated service requirement. A mobility agreement must be
included in the participant's acceptance agreement. Relocation to
another geographic location may be required.
Obligated service means the period of time during which the HPSP or
VIOMPSP participant must be employed by VA in a full-time clinical
occupation for which the degree prepared the participant as a
requirement of the acceptance agreement.
Part-time student (1) HPSP. For the purposes of the HPSP, part-time
student
[[Page 75930]]
means an individual who is a VA employee, and who has been accepted for
enrollment or enrolled for study leading to a degree on a less than
full-time basis but no less than half-time basis.
(2) VIOMPSP. For the purposes of the VIOMPSP, part-time student
means an individual who has been accepted for enrollment or enrolled
for study leading to a degree on a less than full-time basis but no
less than half-time basis.
Participant or scholarship program participant means an individual
whose application to the HPSP or VIOMPSP has been approved, whose
acceptance agreement has been consummated by VA, and who has yet to
complete the period of obligated service or otherwise satisfy the
obligation or financial liabilities of such agreement.
Required fees means those fees which are charged by the school to
all students pursuing a similar curriculum in the same school.
Scholarship Program means the VA Health Professional Scholarship
Program (HPSP) authorized by 38 U.S.C. 7601 through 7619.
School means an academic institution that is accredited by a body
or bodies recognized for accreditation by the U.S. Department of
Education or by the Council for Higher Education Accreditation (CHEA),
and that meets the following requirements:
(1) For the purposes of the HPSP, offers a course of study leading
to a degree in a healthcare service discipline needed by VA.
(2) For the purposes of the VIOMPSP, offers a course of study
leading to a degree in visual impairment or orientation and mobility.
School year means for purposes of the HPSP and its stipend payment,
and the VIOMPSP, all or part of the 12-month period that starts on the
date the participant begins school as a full-time student.
Secretary means the Secretary of Veterans Affairs or designee.
State means one of the several States, Territories and possessions
of the United States, the District of Columbia and the Commonwealth of
Puerto Rico.
Under Secretary for Health means the Under Secretary for Health of
the Department of Veterans Affairs or designee.
VA means the Department of Veterans Affairs.
VA employee means an individual permanently employed by VA. A VA
employee does not include an individual who is employed temporarily or
on a contractual basis.
VA healthcare facility means a VA medical center, independent
outpatient clinic, domiciliary, nursing home (community living center),
residential treatment program and any of a variety of community based
clinics (including community based outpatient clinics, rural health
resource centers, primary care telehealth clinics, and Vet Centers),
consolidated mail outpatient pharmacies, and research centers.
VIOMPSP means the Visual Impairment and Orientation and Mobility
Professional Scholarship Program authorized by 38 U.S.C. 7501 through
7505.
(Authority: 38 U.S.C. 301, 7501(a)(1), 7504, 7602(a), 7604(1)(B),
7633)
5. Amend Sec. 17.602 by:
a. Revising paragraph (a)(1).
b. Adding paragraph (a)(6).
The revision and addition read as follows:
Sec. 17.602 Eligibility for the HPSP.
(a) * * *
(1) Be unconditionally accepted for enrollment or be enrolled as a
full-time student in an accredited school located in a State;
* * * * *
(6) Clinical tours. An applicant for a scholarship under the HPSP
must agree to perform clinical tours while enrolled in the course of
education or training for which the scholarship is provided. VA will
determine the assignments and locations of the clinical tour.
(Authority: 38 U.S.C. 7618(b))
* * * * *
6. Revise Sec. 17.603 to read as follows:
Sec. 17.603 Availability of HPSP scholarships.
(a) General. A HPSP scholarship will be awarded only when necessary
to assist VA in alleviating shortages or anticipated shortages of
personnel in the health professions stated in paragraph (b) of this
section. VA will determine the existence of shortage of personnel in
accordance with specific criteria for each healthcare profession. VA
has the authority to establish the number of scholarships to be awarded
in a fiscal year, and the number that will be awarded to full-time and
part-time students.
(b) Qualifying fields of education. VA will grant HPSP scholarships
in a course of study in those disciplines or programs where recruitment
is necessary for the improvement of healthcare of veterans. Those
disciplines or programs are listed in 38 U.S.C. 7401(1) and (3).
(Authority: 38 U.S.C. 7401(1), (3), 7612(b)(2), 7612(b)(4), and
7603(b)(1))
7. Revise Sec. 17.604 to read as follows:
Sec. 17.604 Application for the HPSP.
An applicant for the HPSP must submit an accurate and complete
application including a signed written acceptance agreement.
(Authority: 38 U.S.C. 7612(c)(1)(B))
(The Office of Management and Budget has approved the
information collection requirements in this section under control
number XXXX-XXXX)
8. Amend Sec. 17.605 by:
a. Revising paragraph (a) introductory text.
b. Redesignating paragraphs (d) and (e) as paragraphs (e) and (f),
respectively.
c. Add new paragraph (d).
d. The revisions read as follows:
Sec. 17.605 Selection of HPSP participants.
(a) General. In deciding which HPSP application to approve, VA will
first consider applications submitted by applicants entering their
final year of education or training and applicants who previously
received HPSP scholarships and who meet the conditions of paragraph (f)
of this section. Except for paragraph (f) of this section, applicants
will be evaluated and selected using the criteria specified in
paragraph (b) of this section. If there are a larger number of equally
qualified applicants than there are awards to be made, then VA will
first select veterans, and then use a random method as the basis for
further selection. In selecting participants to receive awards as part-
time students, VA may, at VA's discretion--
* * * * *
(d) Notification of approval. VA will notify the individual in
writing that his or her application has been accepted and approved. An
individual becomes a participant in the program upon receipt of such
approval by VA.
* * * * *
9. Amend Sec. 17.607 by:
a. Revising paragraph (b)(1).
b. Revising the authority citation at the end of paragraph (b).
c. Revising paragraphs (c) and (d).
The revisions would read as follows:
Sec. 17.607 Obligated service.
* * * * *
(b) Beginning of service. (1)(i) Date of employment. Except as
provided in paragraph (b)(2) of this section, a participant's obligated
service will begin on the date VA appoints the participant as a full-
time VA employee in a clinical occupation for which the degree prepared
the participant. VA will appoint the participant to such position as
soon as possible, but no later than 90 days after the date that the
participant
[[Page 75931]]
receives his or her degree, or the date the participant becomes
licensed in a State or becomes certified, whichever is later. VA will
actively assist and monitor participants to ensure State licenses or
certificates are obtained in a minimal amount of time following
graduation. If a participant fails to obtain his or her degree, or
fails to become licensed in a State or become certified no later than
180 days after receiving the degree, the participant is considered to
be in breach of the acceptance agreement.
(ii) Notification. VA will notify the participant of the work
assignment and its location no later than 60 days before the date on
which the participant must begin work.
(iii) VA mentor. VA will ensure that the participant is assigned a
mentor who is employed at the same facility where the participant
performs his or her obligated service at the commencement of such
service.
* * * * *
(Authority: 38 U.S.C. 7616(b), 7616(c), 7618(a))
(c) Duration of service. (1) Full-time student. A participant who
attended school as a full-time student will agree to serve as a full-
time clinical employee in the Veterans Health Administration for 1
calendar year for each school year or part thereof for which a
scholarship was awarded, but for no less than 2 years.
(2) Part-time student. Obligated service to VA for a participant
who attended school as a part-time student must be satisfied by full-
time clinical employment. The period of obligated service will be
reduced from that which a full-time student must serve under paragraph
(c)(1) of this section in accordance with the proportion that the
number of credit hours carried by the part-time student in any school
year bears to the number of credit hours required to be carried by a
full-time student who is pursuing the same degree; however, the period
of obligated service will not be for less than 1 year.
(Authority: 38 U.S.C. 7612(c)(1)(B), 7612(c)(3)(A), 7618(c))
(d) Location for service. VA reserves the right to make final
decisions on the location for service obligation. A participant who
receives a scholarship as a full-time student must be willing to
relocate to another geographic location to carry out his or her service
obligation according to the participant's mobility agreement. A
participant who received a scholarship as a part-time student may be
allowed to serve the period of obligated service at the healthcare
facility where the individual was assigned when the scholarship was
authorized, if there is a vacant position which will satisfy the
individual's mobility agreement at that facility.
(Authority: 38 U.S.C. 7616(a))
* * * * *
10. Revise Sec. 17.611 to read as follows:
Sec. 17.611 Bankruptcy.
Any payment obligation incurred may not be discharged in bankruptcy
under title 11 U.S.C. until 5 years after the date on which the payment
obligation is due. This section applies to participants in the HPSP and
the VIOMPSP.
(Authority: 38 U.S.C. 7505(d), 7634(c))
11. Amend Sec. 17.612 by:
a. Redesignating paragraph (a) as new paragraph (a)(2).
b. Adding new paragraphs (a) and (a)(1).
c. Revising paragraph (b)(1).
d. Removing the authority citation at the end of paragraph (c)
e Adding new paragraphs (e) and (f).
f. Revising the authority citation at the end of the section..
The revisions and additions read as follows:
Sec. 17.612 Cancellation, waiver, or suspension of obligation.
(a) General. (1) This section applies to participants in the HPSP
or the VIOMPSP.
(2) Any obligation of a participant for service or payment will be
cancelled upon the death of the participant.
(b) Waivers or suspensions. (1) A participant may seek a waiver or
suspension of the obligated service or payment obligation incurred
under this program by submitting a written request to VA setting forth
the basis, circumstances, and causes which support the requested
action. Requests for waivers or suspensions must be submitted to VA no
later than 1 year after the date VA notifies the participant that he or
she is in breach of his or her acceptance agreement. A participant
seeking a waiver or suspension must comply with requests for additional
information from VA no later than 30 days after the date of any such
request.
(i) Waivers. A waiver is a permanent release by VA of the
obligation either to repay any scholarship funds that have already been
paid to or on behalf of the participant, or to fulfill any other
acceptance agreement requirement. If a waiver is granted, then the
waived amount of scholarship funds may be considered taxable income.
(ii) Suspensions. VA may approve an initial request for a
suspension for a period of up to 1 year. A suspension may be extended
for one additional year, after which time the participant will be in
breach of his or her acceptance agreement. If a suspension is approved:
(A) VA will temporarily discontinue providing any scholarship funds
to or on behalf of the participant while the participant's scholarship
is in a suspended status; or
(B) VA will temporarily delay the enforcement of acceptance
agreement requirements.
* * * * *
(e) Eligibility to reapply for award. Any previous participant of
any federally sponsored scholarship program who breached his or her
acceptance agreement or similar agreement in such scholarship program
is not eligible to apply for a HPSP or VIOMPSP. This includes
participants who previously applied for, and received, a waiver under
this section.
(f) Finality of decisions. Decisions to approve or disapprove
waiver requests are final and binding determinations. Such
determinations are not subject to reconsideration or appeal.
(Authority: 38 U.S.C. 7505(c), 7634(a), 7634(b))
12. Amend part 17 by adding an undesignated center heading and
Sec. Sec. 17.625 through 17.636 to read as follows:
Visual Impairment and Orientation and Mobility Professional Scholarship
Program
Sec.
17.625 Purpose.
17.626 Definitions.
17.627 Eligibility for the VIOMPSP.
17.628 Availability of VIOMPSP scholarships.
17.629 Application for the VIOMPSP.
17.630 Selection of VIOMPSP participants.
17.631 Award procedures.
17.632 Obligated service.
17.633 Deferment of obligated service.
17.634 Failure to comply with terms and conditions of participation.
17.635 Bankruptcy.
17.636 Cancellation, waiver, or suspension of obligation.
Visual Impairment and Orientation and Mobility Professional Scholarship
Program
Sec. 17.625 Purpose.
The purpose of Sec. Sec. 17.625 through 17.636 is to establish the
requirements for the award of scholarships under the Visual Impairment
and Orientation and Mobility Professional Scholarship Program (VIOMPSP)
to students pursuing a program of study leading to a degree in visual
impairment or orientation and mobility. The scholarship is designed to
increase the supply of qualified Blind Rehabilitation
[[Page 75932]]
Specialists and Blind Rehabilitation Outpatient Specialists available
to VA. The scholarship will be publicized throughout educational
institutions in the United States, with an emphasis on disseminating
information to such institutions with high numbers of Hispanic students
and to historically black colleges and universities.
(Authority: 38 U.S.C. 7501)
Sec. 17.626 Definitions.
For the definitions that apply to Sec. Sec. 17.625 through 17.636,
see Sec. 17.601.
(Authority: 38 U.S.C. 501)
Sec. 17.627 Eligibility for the VIOMPSP.
(a) General. To be eligible for the VIOMPSP, an applicant must meet
the following requirements:
(1) Be unconditionally accepted for enrollment or currently
enrolled in a program of study leading to a degree in orientation and
mobility, low vision therapy, or vision rehabilitation therapy, or a
dual degree (a program in which an individual becomes certified in two
of the three professional certifications offered by the Academy for
Certification of Visual Rehabilitation and Education Professionals) at
an accredited educational institution that is in a State;
(2) Be a citizen of the United States; and
(3) Submit an application to participate in the VIOMPSP, as
described in Sec. 17.629.
(b) Obligated service to another entity. Any applicant who, at the
time of application, owes a service obligation to any other entity to
perform service after completion of the course of study is ineligible
to receive a VIOMPSP scholarship.
(Authority: 38 U.S.C. 7501(a), 7502(a), 7504(3))
Sec. 17.628 Availability of VIOMPSP scholarships.
VA will make awards under the VIOMPSP only when VA determines it is
necessary to assist in alleviating shortages or anticipated shortages
of personnel in visual impairment or orientation and mobility programs.
VA's determination of the number of VIOMPSP scholarships to be awarded
in a fiscal year, and the number that will be awarded to full-time and/
or part-time students, is subject to the availability of
appropriations.
(Authority: 38 U.S.C. 7501(a), 7503(c)(2))
Sec. 17.629 Application for the VIOMPSP.
(a) Application-general. Each individual desiring a VIOMPSP
scholarship must submit an accurate and complete application, including
a signed written acceptance agreement.
(b) VA's duties. VA will notify applicants prior to acceptance in
the VIOMPSP of the following information:
(1) A fair summary of the rights and liabilities of an individual
whose application is approved by VA and whose acceptance agreement is
consummated by VA; and
(2) Full description of the terms and conditions that apply to
participation in the VIOMPSP and service in VA.
(Authority: 38 U.S.C. 501(a), 7502(a)(2))
(Approved by the Office of Management and Budget under control
number XXXX-XXXX)
Sec. 17.630 Selection of VIOMPSP participants.
(a) General. In deciding which VIOMPSP applications to approve, VA
will first consider applications submitted by applicants entering their
final year of education or training. Applicants will be evaluated and
selected using the criteria specified in paragraph (b) of this section.
If there are a larger number of equally qualified applicants than there
are awards to be made, then VA will first select veterans, and then use
a random method as the basis for further selection.
(b) Selection criteria. In evaluating and selecting participants,
VA will take into consideration those factors determined necessary to
assure effective participation in the VIOMPSP. These factors will
include, but are not limited to, the following:
(1) Academic performance;
(2) Work/volunteer experience, including prior rehabilitation or
healthcare employment and VA employment;
(3) Faculty and employer recommendations; or
(4) Career goals.
(c) Notification of approval. VA will notify the individual in
writing that his or her application has been accepted and approved. An
individual becomes a participant in the program upon receipt of such
approval by VA.
(d) Duration of VIOMPSP award. VA will award a VIOMPSP scholarship
for a period of time equal to the number of years required to complete
a program of study leading to a degree in orientation and mobility, low
vision therapy, or vision rehabilitation therapy, or a dual degree. The
number of years covered by an individual scholarship award will be
based on the number of school years that the participant has yet to
complete his or her degree at the time the VIOMPSP scholarship is
awarded. Subject to the availability of funds, VA will award the
VIOMPSP as follows:
(1) Full-time scholarship. A full-time scholarship is awarded for a
minimum of 1 school year to a maximum of 4 school years;
(2) Part-time scholarships. A part-time scholarship is awarded for
a minimum of 1 school year to a maximum of 6 school years.
(Authority: 38 U.S.C. 7504(3))
Sec. 17.631 Award procedures.
(a) Amount of scholarship. (1) A VIOMPSP scholarship award will not
exceed the total tuition and required fees for the program of study in
which the applicant is enrolled. All such payments to scholarship
participants are exempt from Federal taxation.
(2) The total amount of assistance provided under the VIOMPSP for
an academic year to an individual who is a full-time student may not
exceed $15,000.00.
(3) The total amount of assistance provided under the VIOMPSP for
an academic year to a participant who is a part-time student shall bear
the same ratio to the amount that would be paid under paragraph (a)(2)
of this section if the participant were a full-time student as the
coursework carried by the participant to full-time coursework.
(4) The total amount of assistance provided to an individual may
not exceed $45,000.00.
(5) In the case of an individual enrolled in a program of study
leading to a dual degree described in Sec. 17.627(a)(1), such tuition
and fees will not exceed the amounts necessary for the minimum number
of credit hours to achieve such dual degree.
(6) Financial assistance may be provided to an individual under the
VIOMPSP to supplement other educational assistance to the extent that
the total amount of educational assistance received by the individual
during an academic year does not exceed the total tuition and fees for
such academic year.
(7) VA will make arrangements with the school in which the
participant is enrolled to issue direct payment for the amount of
tuition or fees on behalf of the participant.
(b) Repeated course work. Additional costs relating to the repeated
course work will not be paid under this program. VA will resume any
scholarship payments suspended under this section upon notification by
the school that the participant has returned from the leave-of-absence
or has satisfactorily completed the repeated course work and is
pursuing the course of study for which the VIOMPSP was awarded.
(Authority: 38 U.S.C. 7503, 7504(3))
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Sec. 17.632 Obligated service.
(a) General provision. Except as provided in paragraph (d) of this
section, each participant is obligated to provide service as a full-
time clinical VA employee in the rehabilitation practice of the
participant's discipline in an assignment or location determined by VA.
(b) Beginning of service. A participant's obligated service will
begin on the date on which the participant obtains any required
applicable credentials and when appointed as a full-time clinical VA
employee in a position for which the degree prepared the participant.
VA will appoint the participant to such position as soon as possible,
but no later than 90 days after the date that the participant receives
his or her degree, or the date the participant obtains any required
applicable credentials, whichever is later. If a participant fails to
obtain his or her degree, or fails to obtain any required applicable
credentials within 180 days after receiving the degree, the participant
is considered to be in breach of the acceptance agreement.
(c) Duration of service. The participant will agree to serve as a
full-time clinical VA employee for 3 calendar years which must be
completed no later than 6 years after the participant has completed the
program for which the scholarship was awarded and received a degree
referenced in Sec. 17.627(a)(1).
(d) Location and assignment of obligated service. VA reserves the
right to make final decisions on the location and assignment of the
obligated service. A participant who receives a scholarship must agree
as part of the participant's mobility agreement that he or she is
willing to accept the location and assignment where VA assigns the
obligated service. Geographic relocation may be required.
(e) Creditability of advanced clinical training. No period of
advanced clinical training will be credited towards satisfying the
period of obligated service incurred under the VIOMPSP.
(Authority: 38 U.S.C. 7504(2)(D), 7504(3))
Sec. 17.633 Deferment of obligated service.
Deferment of obligated service under the VIOMPSP is treated in the
same manner as deferment of obligated service under the HPSP under
Sec. 17.608.
(Authority: 38 U.S.C. 7504(3))
Sec. 17.634 Failure to comply with terms and conditions of
participation.
(a) Participant refuses to accept payment of the VIOMPSP. If a
participant, other than one described in paragraph (b) of this section,
refuses to accept payment or instructs the school not to accept payment
of the VIOMPSP scholarship provided by VA, the participant must, in
addition to any obligation incurred under the agreement, pay to the
United States the amount of $1,500 in liquidated damages. Payment of
this amount must be made no later than 90 days from the date that the
participant fails to accept payment of the VIOMPSP or instructs the
school not to accept payment.
(b) Participant fails to complete course of study or does not
obtain certification. A participant described in paragraphs (b)(1)
through (4) of this section must, instead of otherwise fulfilling the
terms of his or her acceptance agreement, pay to the United States an
amount equal to all VIOMPSP funds awarded under the acceptance
agreement. Payment of this amount must be made no later than 1 year
after the date that the participant meets any of the criteria described
in paragraphs (b)(1) through (4) of this section, unless VA determines
that a longer period is necessary to avoid hardship. No interest will
be charged on any part of this indebtedness. A participant will pay
such amount if one of the following criteria is met:
(1) The participant fails to maintain an acceptable level of
academic standing;
(2) The participant is dismissed from the school for disciplinary
reasons;
(3) The participant, for any reason, voluntarily terminates the
course of study or program for which the scholarship was awarded
including a reduction of course load from full-time to part-time before
completing the course of study or program; or
(4) The participant fails to become certified in the discipline for
which the degree prepared the participant, if applicable, no later than
180 days after the date such person becomes eligible to apply for
certification.
(c) Participant fails to perform all or any part of their service
obligation. (1) Participants who breach their agreements by failing to
begin or complete their service obligation, for any reason, including
the loss, revocation, suspension, restriction, or limitation of
required certification, and other than provided for under paragraph (b)
of this section, must repay the portion of all VIOMPSP funds paid to or
on behalf of the participant, adjusted for the service that they
provided. To calculate the unearned portion of VIOMPSP funds, subtract
the number of months of obligated service rendered from the total
months of obligated service owed, divide the remaining months by the
total obligated service, then multiply by the total amount of VIOMPSP
funds paid to or on behalf of the participant. The following formula
may be used in determining the unearned portion:
A = P((t-s)/t) in which
``A'' is the amount the United States is entitled to recover;
``P'' is the amounts paid under the VIOMPSP, to or on behalf of
the participant;
``t'' is the total number of months in the participant's period
of obligated service; and
``s'' is the number of months of obligated service rendered.
(2) The amount that the United States is entitled to recover will
be paid no later than 1 year after the date the applicant failed to
begin or complete the period of obligated service, as determined by VA.
(Authority: 38 U.S.C. 7505(a), 7505(b))
Sec. 17.635 Bankruptcy.
Bankruptcy under the VIOMPSP is treated in the same manner as
bankruptcy for the HPSP under Sec. 17.611.
(Authority: 38 U.S.C. 7505(c), 7505(d))
Sec. 17.636 Cancellation, waiver, or suspension of obligation.
Cancellation, waiver, or suspension procedures under the VIOMPSP
are the same as those procedures for the HPSP under Sec. 17.612.
(Authority: 38 U.S.C. 7505(c))
[FR Doc. 2012-30811 Filed 12-21-12; 4:15 pm]
BILLING CODE 8320-01-P