[Congressional Record Volume 159, Number 36 (Wednesday, March 13, 2013)]
[Senate]
[Pages S1789-S1791]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. JOHNSON of South Dakota (for himself, Mr. Crapo, Ms. 
        Collins, Mrs. Gillibrand, Ms. Hirono, Mr. Isakson, Ms. 
        Klobuchar, Ms. Landrieu, Mr. Merkley, Mr. Moran, Mr. Roberts, 
        Ms. Stabenow, Mr. Tester, Mr. Bennet, Mr. Cochran, and Mr. 
        Risch):
  S. 553. A bill to amend the Internal Revenue Code of 1986 to provide 
for an exclusion for assistance provided to participants in certain 
veterinary student loan repayment or forgiveness programs; to the 
Committee on Finance.
  Mr. JOHNSON of South Dakota. Mr. President, I rise today to 
reintroduce the Veterinary Medicine Loan Repayment Program Enhancement 
Act with my friend, Senator Mike Crapo of Idaho. This bipartisan bill 
would exempt Veterinary Medicine Loan Repayment Program, VMLRP, awards 
from federal income taxation in order to increase veterinary services 
in areas around the country that lack adequate veterinary expertise.
  Authorized in 2003 by the National Veterinary Medical Services Act, 
NVMSA, the United States Department of Agriculture's, USDA, Veterinary 
Medicine Loan Repayment Program serves a dual purpose in assisting 
qualified veterinarians in reducing their student debt while also 
alleviating veterinarian shortages in rural areas. Specifically, the 
program authorizes the National Institute of Food and Agriculture, 
NIFA, to repay up to $25,000 of a veterinarian's debt per year if they 
agree to serve in high-priority veterinary shortage areas for at least 
3 years. However, awards under the program continue to be taxed at a 
rate of 39 percent, effectively limiting the number of awards that can 
be provided and delaying veterinary services to areas in desperate 
need. The awards are taxed with the tax payments paid under the program 
by the federal government, and the tax payments themselves are also 
taxed.
  The Department of Agriculture determines whether an area is eligible 
for assistance under the VMLRP through a ``shortage situation'' 
declaration process. Currently, two circumstances lead to such a 
designation. A geographic designation is made when a given geographic 
area suffers from a shortage of veterinarians overall and an area can 
also be designated as a shortage area when it suffers from a shortage 
of veterinarians who practice in a particular field of veterinary 
specialty. Currently, my home state of South Dakota has 6 designated 
shortage situations; three of them are statewide designations noting a 
shortage of practitioners in veterinary specialties. Moreover, the 
Bureau of Labor Statistics estimates that employment of veterinarians 
will grow by 36 percent by 2020, creating a need for 22,000 additional 
veterinarians. The future growth and increased demand for veterinarians 
becomes even more pressing when considered in combination with national 
statistics that show

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dozens of counties across the country that have more than 25,000 food 
animals but zero veterinarians.
  Attaining a professional degree in a specialized and advanced field 
like veterinary medicine takes more than academic fortitude and 
personal dedication. According to the American Veterinary Medicine 
Association, the average VMLRP award recipient in Fiscal Year 2011 had 
an average eligible debt of over $100,000. Given the financial 
resources necessary to pursue a degree in higher education, I have long 
fought for this legislation to make it easier for students to pay off 
their loans. While South Dakota is truly a wonderful place to call 
home, it is a difficult place for a young veterinarian to earn a living 
when saddled with 6 figures of school debt. My legislation will help by 
enhancing the assistance veterinary graduates receive in exchange for 
meaningful public service while also providing important services to 
underserved rural areas.
  With an economic impact of $21.4 billion each year, according to the 
South Dakota Department of Agriculture, the importance of agriculture 
to the South Dakota economy cannot be understated. Our ranchers, many 
of whom operate in very rural areas, rely on the access they have to 
qualified veterinarians to care for their livestock and many of them 
must drive long distances to access the nearest veterinarian that works 
with their specific type of livestock. This lack of adequate access to 
veterinary services could have ramifications for both human and animal 
health, as well as animal welfare, disease surveillance, public safety 
and economic development. Farmers and ranchers make their living in 
agriculture but food security is fundamentally in all of our interests. 
Everyone in America benefits from the veterinary services provided in 
even the most remote areas of the country. As such, I am committed to 
doing all I can to help bring veterinarians to underserved parts of our 
state.
  I am proud to have fought for the establishment of the VMLRP program 
and for securing funding for the program through my seat on the Senate 
Appropriations Committee. Unfortunately, the 39 percent tax that is 
assessed on these benefits continues diminish the full benefits of the 
program. With enactment of this legislation, for every three 
veterinarians selected for the loan repayment awards, an additional 
veterinarian could also be selected to serve in an underserved shortage 
area. Moreover, such an exemption is not without precedent. In 2004, 
Congress exempted from taxation the assistance received by participants 
in the National Health Services Corps, NHSC.
  It should be noted that nearly 140 organizations from across the 
nation have announced their support for a tax exemption for VMLRP, 
including the South Dakota Veterinary Medical Association, South Dakota 
Farmers Union, South Dakota Farm Bureau, South Dakota Cattlemen's 
Association, South Dakota Stockgrowers Association, South Dakota 
Cattlemen's Association, South Dakota Pork Producers Council, the 
American Veterinary Medical Association, the American Farm Bureau 
Federation, the American Sheep Industry Association, the National 
Farmers Union, and many, many others.
  The VMLRP has had proven success in providing our agricultural 
producers with access to the veterinary services that they need to be 
effective. In fiscal year 2011, the program filled at least one 
shortage area in 35 States. Through the Veterinary Medicine Loan 
Repayment Program Enhancement Act, we can ensure that the program, and 
the awards offered through it, is continued and strengthened for the 
benefit of our students, rural communities, and family farms and 
ranches.
  Mr. President, I ask unanimous consent that a letter of support be 
printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

Statement of Support for the Veterinary Medicine Loan Repayment Program 
                        Enhancement Act of 2013

       The undersigned organizations offer our strongest support 
     for the Veterinary Medicine Loan Repayment Program 
     Enhancement Act of 2013 championed by Senator Tim Johnson (D-
     SD), Senator Michael Crapo (R-ID), and Representative Kurt 
     Schrader (D-OR-5).
       Our organizations represent a broad spectrum of animal 
     agriculture from all across our great country. We are 
     concerned about the continued economic viability of America's 
     farmers, ranchers, and the businesses they own. We support 
     public policy that promotes vibrant rural communities. We are 
     livestock producers; processors; animal health and research 
     organizations; veterinary medical associations; and livestock 
     feed, pet food and animal drug companies. We represent 
     businesses that care deeply about animal health and animal 
     agriculture. Together we urge Congress to pass the Veterinary 
     Medicine Loan Repayment Program Enhancement Act without 
     delay.
       The legislation provides a federal income tax exemption for 
     awards received under the Veterinary Medicine Loan Repayment 
     Program (VMLRP) and similar state programs. The awards are 
     presently taxed at 39 percent.
       Veterinary medicine loan repayment awards help qualified 
     veterinarians offset a portion of the educational debt in 
     return for practicing food animal medicine or veterinary 
     public health in federally designated high-priority 
     veterinary shortage situations. Congress set a precedent for 
     tax exemption in 2004 when it passed ``The American Jobs 
     Creation Act of 2004'' (H.R. 4520, P.L. 108-357) making the 
     National Health Service Corps (NHSC) loan repayment program 
     awards tax exempt. Prior to P.L. 108-357 the NHSC awards were 
     taxed at 39 percent.
       VMLRP participants provide a wide array of veterinary 
     services for rancher's livestock (beef, dairy cows, turkeys, 
     chicken, swine, goats, sheep, farmed deer and elk, camelids, 
     and working farm horses) including accredited medical 
     procedures including vaccinations (i.e., Brucellosis official 
     calf-hood vaccination/RB51), castration and dehorning, 
     pregnancy detections, breeding soundness exams, and services 
     for acute illness, trauma, dystocia or obstetrical 
     difficulties. They provide required services for interstate 
     movement of livestock, including commuter agreements, animal 
     health testing requirements needed to ship livestock, 
     tuberculosis checks and blood sample services for 
     Brucellosis, Bluetongue, and Bovine Viral Diarrhea. They 
     perform duties for state and federal disease control and 
     eradication programs and play a role in a state's veterinary 
     emergency response teams. Veterinarians practicing in public 
     health provide regulatory oversight for critical programs and 
     activities protecting livestock and poultry populations from 
     catastrophic diseases of animal and public health importance. 
     They perform domestic and foreign animal disease surveillance 
     activities, epidemiological investigations, institute 
     mitigation measures for disease control and are active first 
     responders in the event of an animal disease outbreak or 
     incident that threatens animal or human health. Also, they 
     perform outreach and education contributing to animal disease 
     awareness for producers, veterinary practitioners and the 
     public.
       By passing the Veterinary Medicine Loan Repayment Program 
     Enhancement Act, Congress will bolster animal health and 
     welfare, protect the nation's food supply and ensure that 
     ranchers and farmers will have access to veterinary services 
     they need for their livestock.
           Sincerely,


   Livestock Producers, Processors, Packers and Related Organizations

         American Horse Council; American Meat Institute; American 
           Rabbit Breeders Association, Inc.; American Sheep 
           Industry Association; American Veal Association; Fur 
           Commission USA; International Llama Registry; Michigan 
           Pork Producers Association; National Aquaculture 
           Association; National Cattlemen's Beef Association; 
           National Chicken Council; National Livestock Producers 
           Association; National Milk Producers Federation; 
           National Pork Producers Council; National Renderers 
           Association; National Turkey Federation; Nebraska 
           Poultry Industries; North American Deer Farmers 
           Association; North American Meat Association; North 
           Dakota Stockmen's Association; Ohio Poultry 
           Association; South Dakota Cattlemen's Association; 
           South Dakota Pork Producers Council; South Dakota 
           Stockgrowers Association; Texas Association of 
           Dairymen; United Egg Producers; U.S. Cattlemen's 
           Association.


           Animal Agriculture and Rural-focused Organizations

         American Farm Bureau Federation'; Center for 
           Rural Affairs; Kansas City Animal Health Corridor; 
           Kansas City Area Development Council; Kansas City Area 
           Life Sciences Institute; Livestock Marketing 
           Association; National Farmers Union; National Grange; 
           National Association of State Departments of 
           Agriculture; National Council of Farmer Cooperatives; 
           National Dairy Herd Information Association; National 
           Institute for Animal Agriculture; Northeast States 
           Association for Agriculture Stewardship; Rocky Mountain 
           Farmers Union; South Dakota Farmers Union; State 
           Agriculture and Rural Leaders.


           Animal Health and Research-focused Organizations;

         American Dairy Science Association; American Society of 
           Animal Science;

[[Page S1791]]

           American Society of Laboratory Animal Practitioners; 
           Federation of Animal Science Societies; Kansas 
           Bioscience Authority; Poultry Science Association; 
           Silliker, Inc.; Society for Theriogenology; United 
           States Animal Health Association.


            Livestock Feed, Pet Food, Animal Drug Companies

         American Feed Industry Association; Animal Health 
           Institute; Bayer Animal Health; Boehringer Ingelhelm 
           Vetmedica, Inc.; Ceva Animal Health; Elanco Animal 
           Health (A Division of Eli Lilly & Company); Pet Food 
           Institute; Zoetis.


               Veterinary Trade and Allied Organizations

         American Veterinary Medical Association; American 
           Association of Veterinary Laboratory Diagnosticians; 
           Association of American Veterinary Medical Colleges; 
           Academy of Rural Veterinarians; Alabama Veterinary 
           Medical Association; Alaska Veterinary Medical 
           Association; American Animal Hospital Association; 
           American Academy of Veterinary Nutrition; American 
           Association for Laboratory Animal Science; American 
           Association of Avian Pathologists; American Association 
           of Bovine Practitioners; American Association of 
           Corporate and Public Practice Veterinarians; American 
           Association of Equine Practitioners; American 
           Association of Feline Practitioners; American 
           Association of Food Hygiene Veterinarians; American 
           Association of Public Health Veterinarians; American 
           Association of Small Ruminant Practitioners; American 
           Association of Swine Veterinarians; American 
           Association of Veterinary Clinicians; American 
           Association of Zoo Veterinarians; American Board of 
           Veterinary Practitioners; American Board of Veterinary 
           Toxicology; American College of Laboratory Animal 
           Medicine; American College of Poultry Veterinarians; 
           American College of Theriogenologists; American College 
           of Veterinary Dermatology; American College of 
           Veterinary Pathologists; American College of Veterinary 
           Radiology; American Veterinary Medical Foundation; 
           Arizona Veterinary Medical Association; Arkansas 
           Veterinary Medical Association; Association for Women 
           Veterinarians Foundation; Association of Avian 
           Veterinarians; Association of Veterinary Biologics 
           Companies; Association of Zoos & Aquariums; California 
           Veterinary Medical Association; Colorado Veterinary 
           Medical Association; Connecticut Veterinary Medical 
           Association; Delaware Veterinary Medical Association; 
           District of Columbia Veterinary Medical Association; 
           Florida Veterinary Medical Association; Georgia 
           Veterinary Medical Association; Hawaii Veterinary 
           Medical Association; Idaho Veterinary Medical 
           Association; Illinois State Veterinary Medical 
           Association; Indiana Veterinary Medical Association; 
           Iowa Veterinary Medical Association; Kansas Veterinary 
           Medical Association; Kentucky Veterinary Medical 
           Association; Lesbian and Gay Veterinary Medical 
           Association; Louisiana Veterinary Medical Association; 
           Maine Veterinary Medical Association; Maryland 
           Veterinary Medical Association; Massachusetts 
           Veterinary Medical Association; Michigan Veterinary 
           Medical Association; Minnesota Veterinary Medical 
           Association; Mississippi Veterinary Medical 
           Association; Missouri Veterinary Medical Association; 
           Montana Veterinary Medical Association; National 
           Association of Federal Veterinarians; National 
           Association of State Public Health Veterinarians; 
           National Association of Veterinary Technicians in 
           America; National Food Animal Veterinary Institute; 
           Nebraska Veterinary Medical Association; Nevada 
           Veterinary Medical Association; New Hampshire 
           Veterinary Medical Association; New Jersey Veterinary 
           Medical Association; New Mexico Veterinary Medical 
           Association; New York State Veterinary Medical Society; 
           North Carolina Veterinary Medical Association; North 
           Dakota Veterinary Medical Association; Ohio Veterinary 
           Medical Association; Oklahoma Veterinary Medical 
           Association; Oregon Veterinary Medical Association; 
           Puerto Rico Veterinary Medical Association (Colegio de 
           Medicos Veterinarios de Puerto Rico); Pennsylvania 
           Veterinary Medical Association; Rhode Island Veterinary 
           Medical Association; South Carolina Association of 
           Veterinarians; South Dakota Veterinary Medical 
           Association; Student American Veterinary Medical 
           Association; Tennessee Veterinary Medical Association; 
           Texas Veterinary Medical Association; Utah Veterinary 
           Medical Association; Vermont Veterinary Medical 
           Association; Virginia Veterinary Medical Association; 
           Washington State Veterinary Medical Association; 
           Wisconsin Veterinary Medical Association; Wyoming 
           Veterinary Medical Association.
                                 ______