[Federal Register Volume 84, Number 122 (Tuesday, June 25, 2019)]
[Proposed Rules]
[Pages 29824-29826]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-13382]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 17

RIN 2900-AQ62


Health Professional Scholarship Program

AGENCY: Department of Veterans Affairs.

ACTION: Proposed rule.

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SUMMARY: The Department of Veterans Affairs (VA) proposes to amend its 
regulations that govern the Health Professional Scholarship Program 
(HPSP). This rule would ensure that VA award not less than 50 HPSP 
scholarships each year to students who are accepted for enrollment or 
are enrolled in a program of education or training that leads to 
employment as a physician or dentist until such a date as VA determines 
the current staffing shortage is reduced. This rule would also expand 
the number of years of obligated service that a HPSP participant would 
have to serve in VA in the discipline for which the HPSP was awarded. 
This rulemaking would implement the mandates of the VA MISSION Act of 
2018.

DATES: Comments must be received on or before August 26, 2019.

ADDRESSES: Written comments may be submitted through http://www.Regulations.gov; by mail or hand-delivery to: Director, Office of 
Regulation Policy and Management (00REG), Department of Veterans 
Affairs, 810 Vermont Ave. NW, Room 1064, Washington, DC 20420; or by 
fax to (202) 273-9026. (This is not a toll-free telephone number.) 
Comments should indicate that they are submitted in response to ``RIN 
2900-AQ62-Health Professional Scholarship Program.'' Copies of comments 
received will be available for public inspection in the Office of 
Regulation Policy and Management, Room 1064, between the hours of 8 
a.m. and 4:30 p.m., Monday through Friday (except holidays). Please 
call (202) 461-4902 for an appointment. (This is not a toll-free 
telephone number.) In addition, during the comment period, comments may 
be viewed online through the Federal Docket Management System (FDMS) at 
http://www.Regulations.gov.

FOR FURTHER INFORMATION CONTACT: Nicole Nedd, Director, Scholarships 
and Clinical Education. 1250 Poydras Street. Suite 1000 New Orleans, LA 
70113. [email protected]. (504) 507-4895 (This is not a toll-free 
number.)

SUPPLEMENTARY INFORMATION: On June 6, 2018, section 301 of Public Law 
115-182, the John S. McCain III, Daniel K. Akaka, and Samuel R. Johnson 
VA Maintaining Internal Systems and Strengthening Integrated Outside 
Networks Act of 2018, or the VA MISSION Act of 2018, amended title 38 
of the United States Code (U.S.C.) 7612(b) and 7617, which govern the 
Health Professional Scholarship Program (HPSP). This program is 
regulated under title 38 of the Code of Federal Regulations (CFR) 
17.600 through 17.612. Section 7612(b) of 38 U.S.C. was amended to 
state that VA will ensure that not less than 50 HPSP scholarships are 
awarded each year to students who are accepted for enrollment or are 
enrolled in a program of education or training that leads to employment 
as a physician or dentist until such a date as VA determines that there 
is a staffing shortage of less than 500 individuals in these health 
care professions in VA. The VA MISSION Act of 2018 further amended 
section 7612(b) to state that once the staffing shortage is less than 
500 health care professionals, VA will award HPSP scholarships each 
year to not less than 10 percent of the total staffing shortage of 
physicians and dentists. Section 7612 was also amended by expanding the 
number of years of obligated service that a participant who pursues a 
course of study leading to employment as a physician or dentist would 
have to serve in VA in a discipline for which the HPSP was awarded. 
Instead of one year of obligated service for each school year or part 
thereof for which the participant was awarded a scholarship, the VA 
MISSION Act of 2018 amended this requirement to 18 months of obligated 
service for each school or part thereof for which the participant was 
awarded a scholarship. The VA MISSION Act of 2018 also amended 38 
U.S.C. 7617 by adding that a participant has breached the service 
agreement if the participant fails to successfully complete post-
graduate training leading to eligibility for board certification for 
employment as a physician. This proposed rulemaking would implement the 
mandates of section 301 of the VA MISSION Act of 2018 by proposing to 
amend 38 CFR 17.603, 17.607, and 17.610 as further described below.

17.603 Availability of HPSP Scholarships

    We would amend Sec.  17.603(b) to comply with the requirements of 
section 301 of the VA MISSION Act of 2018 by establishing proposed 
paragraph (b)(1), which would state the new priorities for awarding the 
HPSP scholarship to physicians and dentists. Proposed paragraph 
(b)(1)(i) would state that VA would ``award not less than 50 HPSP to 
individuals who are accepted for enrollment or are enrolled in a 
program of education or training leading to employment as a physician 
or dentist until such date as VA determines that the staffing shortage 
of physicians and dentists in VA is less than 500.'' In proposed 
paragraph (b)(1)(ii), we would state that once the staffing shortage of 
physicians and dentists is less than 500, ``VA will award HPSP 
scholarships to individuals in an amount equal to not less than ten 
percent of the staffing shortage of physicians and dentists in VA.''
    Current paragraph (b) describes the qualifying fields of education 
for which VA will grant HPSP scholarships. We would add new paragraph 
(b)(2) which would restate current paragraph (b) with one edit to state 
that the requirements of this paragraph would apply to health care 
professions other than physicians or dentists.

17.607 Obligated Service

    We propose to amend Sec.  17.607(c)(1) by adding a new proposed 
paragraph (c)(1)(i) and renumbering current paragraph (c)(1) as 
proposed paragraph (c)(1)(ii). Proposed paragraph (c)(1)(i) would state 
the duration of the obligated service for physicians and dentists. This 
proposed paragraph would state that ``a participant who attended school 
as a full-time student will agree to serve as a full-time physician or 
dentist in the Veterans Health Administration for 18 months for each 
school year or part thereof for which a scholarship was awarded. This 
proposed paragraph would be in accordance with section 301 of the VA 
MISSION Act of 2018.
    Current paragraph (c)(1) describes the duration of service for 
full-time and part-time students. We would add new paragraph (c)(1)(ii) 
which would restate current paragraph (c)(1) with one edit to 
distinguish that this paragraph would apply to health care professions 
other than physicians or dentists.

17.610 Failure To Comply With Terms and Conditions of Participation

    We would amend Sec.  17.610 by adding a new proposed paragraph 
(b)(4), redesignating current paragraph (b)(4) as

[[Page 29825]]

proposed (b)(5), and redesignating current (b)(5) as proposed (b)(6). 
New proposed paragraph (b)(4) would add the new condition for breach of 
agreement for a physician as mandated by section 301 of the VA MISSION 
Act of 2018 by stating that if a participant who ``is enrolled in a 
program or education or training leading to employment as a physician, 
fails to successfully complete post-graduate training leading to 
eligibility for board certification in a specialty.'' No further edits 
would be made to Sec.  17.610.

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 rulemaking if 
possible or, if not possible, such guidance would be superseded by this 
rulemaking.

Paperwork Reduction Act

    This rulemaking does not contain any provisions constituting 
collections of information under the Paperwork Reduction Act of 1995 
(44 U.S.C. 3501-3521).

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. Therefore, pursuant to 5 U.S.C. 605(b), this rulemaking 
would be exempt from the initial and final regulatory flexibility 
analysis requirements of 5 U.S.C. 603 and 604.

Executive Orders 12866, 13563 and 13771

    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 the Office 
of Management and Budget (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 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.''
    VA has examined the economic, interagency, budgetary, legal, and 
policy implications of this regulatory action and determined that the 
action is not a significant regulatory action under Executive Order 
12866. VA's impact analysis can be found as a supporting document at 
http://www.regulations.gov, usually within 48 hours after the 
rulemaking document is published. Additionally, a copy of the 
rulemaking and its impact analysis are available on VA's website at 
http://www.va.gov/orpm by following the link for VA Regulations 
Published from FY 2004 through FYTD.
    This proposed rule is not expected to be an E.O. 13771 regulatory 
action because this proposed rule is not significant under E.O. 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 the 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 one 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.

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.

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. Robert L. 
Wilkie, Secretary, Department of Veterans Affairs, approved this 
document on May 31, 2019, for publication.

    Dated: June 19, 2019.
Consuela Benjamin,
Regulations Development Coordinator, Office of Regulation Policy & 
Management, Office of the Secretary, 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

0
1. The authority citation for part 17 continues to read as follows:

    Authority: 38 U.S.C. 501, and as noted in specific sections.
* * * * *
0
2. Amend Sec.  17.603 by revising paragraph (b) to read as follows:


Sec.  17.603  Availability of HPSP scholarships.

* * * * *
    (b) Qualifying fields of education. (1) Physicians and dentists. 
(i) VA will award not less than 50 HPSP scholarships each year to 
individuals who are accepted for enrollment or are enrolled in a 
program of education or training leading to employment as a physician 
or dentist until such date as VA determines that the staffing shortage 
of physicians and dentists in VA is less than 500.
    (ii) Once the staffing shortage of physicians and dentists is less 
than 500, VA will award HPSP scholarships to individuals in an amount 
equal to not less than ten percent of the staffing shortage of 
physicians and dentists in VA.
    (2) Other health care professions. VA will grant HPSP scholarships 
in a course of study in those disciplines or programs other than 
physician or dentist where recruitment is necessary for the improvement 
of health care of

[[Page 29826]]

veterans as listed in 38 U.S.C. 7401(1) and (3).
* * * * *
0
3. Amend Sec.  17.607 by revising paragraph (c)(1) to read as follows.


Sec.  17.607  Obligated service.

* * * * *
    (c) Duration of service. (1) Full-time student. (i) Physician or 
dentist. A participant who attended school as a full-time student will 
agree to serve as a full-time physician or dentist in the Veterans 
Health Administration for 18 months for each school year or part 
thereof for which a scholarship was awarded.
    (ii) Other health care profession. A participant who attended 
school as a full-time student in a health care profession other than 
physician or dentist 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.
* * * * *
0
4. Amend Sec.  17.610 by:
0
a. Redesignating paragraphs (b)(4) and (b)(5) as paragraphs (b)(5) and 
(b)(6).
0
b. Adding a new paragraph (b)(4).
    The addition to read as follows:


Sec.  17.610  Failure to comply with terms and conditions of 
participation.

* * * * *
    (b) * * *
    (4) Who is enrolled in a program or education or training leading 
to employment as a physician, fails to successfully complete post-
graduate training leading to eligibility for board certification in a 
specialty.
* * * * *
[FR Doc. 2019-13382 Filed 6-24-19; 8:45 am]
BILLING CODE 8320-01-P