[Federal Register Volume 86, Number 212 (Friday, November 5, 2021)]
[Proposed Rules]
[Pages 61094-61100]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-23822]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 17

RIN 2900-AR31


Readjustment Counseling Service 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 by adding new regulations that would govern scholarship 
programs to certain health care professionals. This rulemaking 
implements the mandates of the Commander John Scott Hannon Veterans 
Mental Health Care Improvement Act of 2019 by establishing the 
Readjustment Counseling Service Scholarship Program (RCSSP). The RCSSP 
provides educational assistance to individuals who pursue a graduate 
degree in psychology, social work, marriage and family therapy, or 
mental health counseling that meet the education requirements for 
appointment as a health care professional in one of those fields in VA 
Vet Centers.

DATES: Comments must be received on or before January 4, 2022.

ADDRESSES: Comments may be submitted through www.Regulations.gov. 
Comments should indicate that they are submitted in response to ``RIN 
2900-AR31- Readjustment Counseling Service Scholarship Program.'' 
Comments received will be available at regulations.gov for public 
viewing, inspection, or copies.

FOR FURTHER INFORMATION CONTACT: Charles Flora, Social Science 
Specialist, Readjustment Counseling Services, 810 Vermont Ave. NW, 
Washington, DC 20420, (202) 461-6525. (This is not a toll-free 
telephone number.)

SUPPLEMENTARY INFORMATION: On October 17, 2020, Sec.  502 of Public Law 
116-171, the Commander John Scott Hannon Veterans Mental Health Care 
Improvement Act of 2019, amended 38 United States Code (U.S.C.) by 
establishing new Sec. Sec.  7698 through 7699B and creating a new 
scholarship program known as the Readjustment Counseling Service 
Scholarship Program (RCSSP). The RCSSP would serve as an incentive to 
individuals who are pursuing a graduate degree in psychology, social 
work, marriage and family therapy, or mental health counseling to fill 
existing and future vacancies in Vet Centers.
    Section 1712A(h)(1) of Title 38, U.S. Code defines a Vet Center as 
a facility which is operated by the Department for the provision of 
services under this section and which is situated apart from Department 
general health care facilities. The purpose of the Vet Center is to 
assist veterans in adjusting to civilian life or to provide 
readjustment to servicemembers for continued military service following 
participation in or support of operations in a combat theater or area 
of hostility; to assist family members of servicemembers when coping 
with such member's deployment; and to assist family members of veterans 
and servicemembers in aiding a veteran's or member's readjustment to 
civilian or continued military service following their participation in 
or support of operations in a combat theater or area of hostility, 
specifically as it relates to the veteran's or member's military 
experience.
    The RCSSP would assist VA in filling vacancies in Vet Centers that 
are located in areas that are designated as medically underserved 
populations and in States with a per capita population of more than 
five percent veterans according to the National Center for Veterans 
Analysis and Statistics and the Bureau of the Census (42 U.S.C. 
254b(b)(3)). This proposed rule would establish the requirements for 
the RCSSP in proposed 38 CFR 17.545 through 17.553.

Section 17.545 Purpose

    Proposed Sec.  17.545 would state the purpose of Sec. Sec.  17.545 
through 17.553, which is to establish the RCSSP as part of VA's 
Educational Assistance Program. We would also state that for purposes 
of the RCSSP, the term Vet Center has the meaning given in 38 U.S.C. 
1712A(h). This section would be aligned with 38 U.S.C. 7698.

Section 17.547 Eligibility

    Proposed Sec.  17.547 would establish the eligibility criteria for 
participants of the RCSSP. These eligibility criteria are aligned with 
Sec.  7699(a). We would state that an individual is eligible to 
participate in the RCSSP if that individual meets both of the following 
eligibility criteria: (1) The individual must be accepted for 
enrollment or be currently enrolled on a full-time basis in a program 
of study at an accredited educational institution, school, or training 
program leading to a terminal degree in psychology, social work, 
marriage and family therapy, or mental health counseling that would 
meet the education requirements for appointment to a position in one of 
those fields under 38 U.S.C. 7402(b) (Sec.  7402(b) of Title 38 U.S. 
Code provides the qualification requirements of appointees as VA health

[[Page 61095]]

care professionals); and (2) the individual must enter into an 
agreement with the Secretary under proposed Sec.  17.551, which is 
described below.

Section 17.548 Scholarship Availability and Application Procedures

    The Commander John Scott Hannon Veterans Mental Health Care 
Improvement Act of 2019 was silent on the availability of and 
application procedures for the RCSSP. We would, therefore, mirror the 
language of similar scholarship programs in proposed Sec.  17.548 
regarding the availability of and application procedures.
    Proposed paragraph (a) would describe the availability for RCSSP 
scholarships. We would state that VA will make awards under the RCSSP 
only when VA determines it is necessary to assist in alleviating 
shortages or anticipated shortages of psychologists, social workers, 
marriage and family therapists, or mental health counseling 
professionals in Vet Centers. Additionally, we would state that VA's 
determination of the number of RCSSP scholarships to be awarded in a 
fiscal year is subject to the availability of appropriations. This 
language mirrors that in Sec.  17.628.
    Proposed paragraph (b) would state that each individual who seeks a 
RCSSP scholarship must submit an accurate and complete application, 
including a signed acceptance agreement. This language mirrors that in 
Sec.  17.629.
    We would state in proposed paragraph (c) that VA will notify 
applicants prior to acceptance in the RCSSP of the following 
information: 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 full description of the terms and 
conditions that apply to participation in the RCSSP and service in VA. 
This language also mirrors Sec.  17.629.

Section 17.549 Award Procedures

    We would establish the award procedures for participants of the 
RCSSP in proposed Sec.  17.549, which will include priority for 
selection, placement considerations, and amount of funding. Proposed 
paragraph (a) would be in alignment with 38 U.S.C. 7699(b) by 
establishing the two priorities for the selection of individuals to 
participate in the RCSSP. We would state in proposed paragraph (a)(1) 
that VA would give priority to an individual who agrees to be employed 
at Vet Centers that are located in communities that are designated as 
medically underserved populations under Sec.  330(b)(3) of the Public 
Health Service Act (42 U.S.C. 254b(b)(3)) and Vet Centers that are 
located in States with a per capita population of more than five 
percent veterans according to the National Center for Veterans Analysis 
and Statistics and the Bureau of the Census. We would state in proposed 
paragraph (a)(2) that priority would also be given to veterans. In 
proposed paragraph (b) we would add placement criteria that VA will 
consider when determining at which Vet Center the scholarship recipient 
will work to carry out their service obligation. This placement 
criteria would include the priority criteria in proposed paragraph (a) 
of this section. There would also be an additional criterion to ensure 
that standards for supervision required for professional licensure are 
met. VA would consider the size and professional makeup of the current 
Vet Center staff to ensure that the Vet Center staff has health care 
professionals that are licensed to supervise participants of the RCSSP 
from the same health care profession as required by VA professional 
qualification standards for licensure for each of the four 
aforementioned professions. The additional placement criterion would 
ensure that the participants are placed in Vet Centers where they would 
have direct supervision by health care providers within their same 
profession as required by the VA professional qualification standards.
    Proposed paragraph (c) would be in alignment with 38 U.S.C. 
7699(c)(1) by establishing the funds covered under the RCSSP. We would 
state that the funds would cover the costs of an individual obtaining a 
terminal doctorate degree (as defined in the qualification standards) 
in psychology; and a terminal master level degree in social work, 
marriage and family therapy, or professional mental health counseling. 
We would also state that VA would pay a participant of the RCSSP for a 
maximum of two years. We note that RCSSP payments are paid 
prospectively and does not cover the past costs of the participant's 
education and expenses accrued pre-award. Therefore, if a scholarship 
recipient applies and is selected to the RCSSP in the middle of their 
degree program, VA would only pay for the tuition payments still 
outstanding. VA would not reimburse the scholarship recipient for 
tuition payments already paid. Furthermore, if the scholarship 
recipient completes the degree early or is receiving a partial 
scholarship from a different source, VA would only pay for the actual 
expenses owed by the recipient. We would also state that if a 
participant completes their terminal degree in less than two years, the 
period of obligated service remains unchanged.
    In proposed paragraph (c)(1), VA would state that social work, 
marriage and family therapy, and professional mental health counseling 
are master level programs that require an approximate two-year period 
for achieving the terminal degree. VA would fund RCSSP social work, 
marriage and family therapy, and professional mental health counseling 
participants for a maximum of two years.
    In proposed paragraph (c)(2), we would state that psychology is a 
doctoral level program requiring approximately five years for 
completion of the terminal academic degree. However, to equalize the 
award and obligated service requirements across all four professions, 
VA would also state that, although psychology is a doctoral level 
program requiring approximately five years for completion for the 
terminal academic degree, VA funding for RCSSP psychology participants 
would only be for the last two years of their academic training for the 
terminal doctorate degree.
    We note that psychology graduates are also required to participate 
in a one-year residency at either an American Psychology Association 
(APA) or Canadian Psychological Association (CPA) accredited program 
prior to qualifying for full time VA employment. The internship is 
under separate funding authority and VA would, therefore, not provide 
funding for the one-year internship. Additionally, in order to obtain 
an APA or CPA accredited internship, an individual must participate in 
the Association of Psychology Postdoctoral and Internship Centers 
(APPIC) process where they can match with an internship program . An 
individual who participates in the APPIC process is not guaranteed to 
match with an APA or CPA accredited internship. Should a scholarship 
participant not receive a match with an APA or CPA accredited 
internship, they would be considered in breach of their agreement 
because they would not be eligible to work at VA and would be unable to 
fulfil their period of obligated service at a Vet Center.
    Proposed paragraph (d) would state what would constitute a payment 
for the RCSSP. We would state that participants would be exempt from 
Federal taxation. We would also state that payment would consist of the 
actual cost of tuition and required fees; other educational expenses, 
including books and laboratory equipment; and a

[[Page 61096]]

monthly stipend, for the duration of the scholarship award. We would 
specify that the Secretary may determine the amount of the stipend paid 
to participants, but that amount may not exceed the maximum amount 
provided for in 38 U.S.C. 7613(b). This proposed paragraph is in 
alignment with similar scholarship programs. See Sec.  17.606(a).

Section 17.551 Agreement and Obligated Service

    Section 7699(c) of 38 U.S.C. establishes the agreement criteria for 
participants of the RCSSP. We would state these criteria in proposed 
Sec.  17.551(a) as follows: (1) Proposed paragraph (a)(1) would state 
that the participant of the RCSSP must agree to maintain enrollment, 
attendance, and acceptable level of academic standing as defined by the 
school. (2) Proposed paragraph (a)(2) would state that the participant 
must obtain a terminal degree in psychology, social work, marriage and 
family therapy, or professional mental health counseling. For 
psychology, a terminal degree means a doctorate degree and for social 
work, marriage and family therapy, and professional mental health 
counseling a terminal degree means a masters level degree. (3) Proposed 
paragraph (a)(3) would state that the participant must be employed as a 
full-time VA employee at a Vet Center for a period of six-years as a 
psychologist, social worker, marriage and family therapist, or 
professional mental health counselor following the completion of such 
program of study. (4) Lastly, proposed paragraph (a)(4) would state 
psychologists must complete a one-year internship at either an APA or 
CPA accredited program. We would add that obtaining an APA or CPA 
accredited internship requires that an individual participate in the 
APPIC process. If a scholarship participant does not participate in an 
APA or CPA accredited internship, they are in breach of their 
agreement. We note that participation in an APA or CPA accredited 
internship is a requirement for VA employment. Section 7699A of 38 
U.S.C. establishes the period of obligated service for a participant of 
the RCSSP. We would restate Sec.  7699A(b)(1) in proposed Sec.  
17.551(b)(1) by stating that VA will notify the participant of the 
commencement date of the period of obligated service no later than 60 
days before such date.
    Section 7699A(a) establishes the obligated service for the RCSSP. 
However, the statute is silent as how soon after the participant 
completes their terminal degree the period of obligated service should 
commence. We would, therefore, state in proposed Sec.  17.551(b)(2)(i) 
that the participant's period of obligated service will begin on the 
date the participant begins full-time permanent employment at a Vet 
Center as a psychologist, social worker, marriage and family therapist, 
or professional mental health counselor, but no later than 180 days 
after the date that the participant completes a terminal degree in one 
of the identified disciplines.
    We would also state that all RCSSP psychology participants would 
assume their period of obligated service within 180 days following 
completion of their one-year APA or CPA internship, which requires 
completion of all academic requirements to obtain a terminal doctorate 
degree. This includes completion of all academic requirements and the 
dissertation required for graduation with a terminal doctorate degree. 
A participant's failure to meet these requirements, would be considered 
a breach of their acceptance agreement. VA has used similar language in 
other VA scholarship programs. See Sec.  17.607(b)(1).
    We would also describe in proposed Sec.  17.551(b)(2)(i)(ii) the 
period of clinical supervision by a licensed health care professional 
of the same discipline. This period of clinical supervision is aligned 
with State licensure requirements for each of the health care 
professions covered under the RCSSP and a requirement for maintaining 
VA employment. We would state in proposed Sec.  17.551(b)(2)(ii) that, 
upon receipt of the terminal degree, participants will enter VA 
employment at the entry level until full licensure at the independent 
practice level has been attained. We would add that independent 
practice licensure is a requirement for all scholarship participants. 
Also, non-licensed psychologists, social workers, marriage and family 
therapists, and professional mental health counselors are required to 
serve under the supervision of a licensed health care professional of 
their profession and must be independently licensed by a State within 
the time frame specified in VA qualification standards.
    VA understands that obtaining a terminal degree and the required 
license for each health care profession can be challenging. As such, VA 
will actively monitor all RCSSP participants to make certain that the 
participant abides by the requirements of the acceptance agreement. We 
would state in proposed Sec.  17.551(b)(2)(iii) that VA will actively 
assist and monitor participants to ensure State licenses are obtained 
in a minimal amount of time following graduation and required 
supervision. We would add that if a participant fails to obtain their 
terminal degree or fails to obtain licensure in a State at the 
independent practice level no later than 180 days after the required 
period of supervision for their profession, the participant is 
considered to be in breach of the acceptance agreement. This language 
is similar to that of other VA scholarship programs. See Sec.  
17.607(b)(1).
    In alignment with similar scholarship programs, we would state that 
VA reserves the right to make final decisions on the location and 
position of the obligated service. See 38 CFR 17.607(d). VA believes 
that is necessary to reserve the right to make final decisions on the 
location to achieve the intent of the Commander John Scott Hannon 
Veterans Mental Health Care Improvement Act of 2019. VA must be able to 
have control over where it places the individuals to ensure VA 
beneficiaries' health care needs are met in locations that are within a 
reasonable proximity to the beneficiaries' residence. We would also 
state that a participant who receives an RCSSP must be willing to 
relocate to another geographic location to carry out their service 
obligation in accordance with the participant's mobility agreement. 
Because participants must be supervised by a licensed health care 
profession, we would add that there is a VA requirement for 
participants to receive supervision from a licensed staff within their 
respective professions.

Section 17.553 Failure To Comply With Terms and Conditions of Agreement

    Section 7699B provides for the repayment of RCSS funds should the 
participant be in breach of their agreement. Proposed Sec.  17.553 
would mirror Sec.  7699B(a) with minor changes. Proposed Sec.  
17.553(a) would state the liquidated damages payable to the United 
States. We would state that except as provided in Sec.  17.553(b), a 
participant of the RCSSP who fails to accept payment, or instructs the 
educational institution in which the participant is enrolled not to 
accept payment, in whole or in part, of a scholarship under the 
agreement entered into under Sec.  17.551 will be liable to the United 
States for liquidated damages in the amount of $1,500. Section 
7669B(a)(2) states that liability under paragraph (1) is in addition to 
any period of obligated service or other obligation or liability under 
such agreement. However, in alignment with other scholarship programs, 
VA does not seek/impose liquidation damages in addition to any other 
service obligation

[[Page 61097]]

or financial liability. We do not think it prudent to add an additional 
financial burden to a participant for failure to accept RCSSP funds. We 
would, therefore, not include this provision as part of the liquidated 
damages provision in Sec.  17.553(a).
    Proposed Sec.  17.553(b) provides for the liability payable to the 
United States if the participant breaches their agreement during the 
period of program study and would mirror Sec.  7699B(b) with minor 
stylistic changes. We would state that except as provided in Sec.  
17.553(d), a participant of the RCSSP will be liable to the United 
States for the amount that has been paid to or on behalf of the 
participant under the agreement if the participant fails to maintain an 
acceptable level of academic standing in the educational institution in 
which the participant is enrolled, as determined by the educational 
institution; the participant is dismissed from the educational 
institution for disciplinary reasons; or the participant voluntarily 
terminates the program of study in the educational institution before 
the completion of the program of study for which the RCSSP was awarded. 
We would add that liability under Sec.  17.553(b) is in lieu of any 
service obligation arising under the agreement.
    Proposed Sec.  17.553(c) provides for the liability payable to the 
United States if the participant breaches their agreement during the 
period of obligated service and would mirror Sec.  7699B(c) with minor 
stylistic changes. We would state that except as provided in Sec.  
17.553(d), if a participant of the RCSSP does not complete their period 
of obligated service, the United States will be entitled to recover 
from the participant an amount determined in accordance with the 
following formula: A = 3[Phi](t- s/t), where `A' is the amount the 
United States is entitled to recover; `[Phi]' is the sum of: The 
amounts paid under this subchapter to or on behalf of the participant; 
and the interest on such amounts, which would be payable if, at the 
time the amounts were paid, they were loans bearing interest at the 
maximum legal prevailing rate, as determined by the Treasurer of the 
United States; `t' is the total number of months in the period of 
obligated service of the participant; and `s' is the number of months 
of such period served by the participant.
    Proposed Sec.  17.553(d) provides for the limitation on liability 
payable to the United States due to reductions in force and would 
mirror Sec.  7699B(d) with minor stylistic changes. We would state that 
liability will not arise under Sec.  17.553(c) if the participant fails 
to maintain employment as a VA employee due to a staffing adjustment.
    Proposed Sec.  17.553(e) provides for the repayment period on 
damages owed to the United States and would mirror Sec.  7699B(e) with 
minor stylistic changes. We would state that the participant will pay 
the amount of damages that the United States is entitled to recover 
under Sec.  17.553 in full to the United States no later than one year 
after the date of the breach of the agreement.

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. The 
Office of Information and Regulatory Affairs has determined that this 
proposed rule is not a significant regulatory action under Executive 
Order 12866. The Regulatory Impact Analysis associated with this 
rulemaking can be found as a supporting document at 
www.regulations.gov.

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). The RCSSP will solely be operated and administered 
within VA. Therefore, pursuant to 5 U.S.C. 605(b), the initial and 
final regulatory flexibility analysis requirements of 5 U.S.C. 603 and 
604 do not apply.

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.

Paperwork Reduction Act

    This proposed rule includes provisions constituting a new 
collection 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 action to OMB for review.
    OMB assigns control numbers to collections of information it 
approves. VA may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a 
currently valid OMB control number. Proposed Sec. Sec.  17.548 and 
17.551 contain a new collection of information. If OMB does not approve 
the collection of information as requested, VA will immediately remove 
the provisions containing a collection of information or take such 
other action as is directed by OMB.
    Comments on the new collection of information contained in this 
rulemaking should be submitted through www.regulations.gov. Comments 
should indicate that they are submitted in response to ``RIN 2900-AR31- 
Readjustment Counseling Service Scholarship Program'' and should be 
sent within 60 days of publication of this rulemaking. The collection 
of information associated with this rulemaking can be viewed at: 
www.reginfo.gov/public/do/PRAMain.
    OMB is required to make a decision concerning the collection of 
information contained in this rulemaking 60 days after publication of 
this rulemaking in the Federal Register (FR). 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 provisions of this rulemaking.
    The Department considers comments by the public on new collections 
of information in:
     Evaluating whether the new collections of information are 
necessary for the proper performance of the functions of the 
Department, including whether the information will have practical 
utility;
     Evaluating the accuracy of the Department's estimate of 
the burden of the new 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

[[Page 61098]]

use of appropriate automated, electronic, mechanical, or other 
technological collection techniques or other forms of information 
technology, e.g., permitting electronic submission of responses.
    The collection of information contained in 38 CFR 17.548 and 17.551 
is described immediately following this paragraph, under its respective 
title.
    Title: Readjustment Counseling Service Scholarship Program (RCSSP).
    OMB Control No: 2900-xxxx (New/TBD).
    CFR Provision: 38 CFR 17.548 and 17.551.
     Summary of collection of information: The RCSSP would 
provide educational assistance to individuals who pursue a graduate 
degree in psychology, social work, marriage and family therapy, or 
mental health counseling that would meet the education requirements for 
appointment as a health care professional in VA Vet Centers.
     Description of need for information and proposed use of 
information: This information would be collected for applicants who 
wish to participate in the RCSSP. The information would also be 
collected for those individuals who are selected to participate in the 
RCSSP and who must sign an agreement between VA and the eligible 
individual. This agreement would hold the eligible individual 
accountable for upholding the terms and conditions of the agreement and 
alert the eligible individual of the consequences of a breach in the 
agreement.
     Description of likely respondents: Eligible individuals 
who apply for the RCSSP and those individuals who are ultimately 
accepted for participation in the RCSSP.
     Estimated number of respondents: 50 Applicants, 5 Selected 
Participants from the 50 Applicants.
     Estimated frequency of responses: Applicants and Selected 
Participants: 1 time.
     Estimated average burden per response:
    Applicants: 3 hours.
    Selected Participants: 1.6 hours.
     Estimated total annual reporting and recordkeeping burden: 
158 hours.
    Applicants: 150 hours.
    Selected Participants: 8 hours.
     Estimated cost to respondents per year: VA estimates the 
annual cost to all respondents will be $4,277 per year (158 burden 
hours x $27.07 per hour). VA used the Bureau of Labor Statistics (BLS) 
median hourly wage for hourly wage for ``all occupations'' of $27.07 
per hour. This information is available at https://www.bls.gov/oes/current/oes_nat.htm#13-0000.

Catalog of Federal Domestic Assistance

    There are no Catalog of Federal Domestic Assistance numbers and 
titles for this proposed rule.

List of Subjects in 38 CFR Part 17

    Administrative practice and procedure, Health care, Health 
facilities, Health professions, Scholarships and fellowships.

Signing Authority

    Denis McDonough, Secretary of Veterans Affairs, approved this 
document on October 26, 2021, 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.

Consuela Benjamin,
Regulations Development Coordinator, Office of Regulation Policy & 
Management, Office of General Counsel, Department of Veterans Affairs.

    For the reasons stated in the preamble, the Department of Veterans 
Affairs proposes to amend 38 CFR part 17 as set forth below:

PART 17--MEDICAL

0
1. The general authority citation for part 17 continues and an entry 
for Sec. Sec.  17.545 through 17.553 is added in numerical order, to 
read as follows:

    Authority:  38 U.S.C. 501, and as noted in specific sections.
* * * * *
    Sections 17.545 through 17.553 are also issued under 38 U.S.C. 
7698, 7699, 7699A, and 7699B.
* * * * *
0
2. Add an undesignated center heading and Sec. Sec.  17.545 through 
17.553 immediately following Sec.  17.539 to read as follows:
Sec.
* * * * *

Readjustment Counseling Service Scholarship Program

17.545 Purpose.
17.547 Eligibility.
17.548 Application procedures.
17.549 Award procedures.
17.551 Agreement and obligated service.
17.553 Failure to comply with terms and conditions of agreement.


Sec.  17.545   Purpose.

    The purpose of Sec. Sec.  17.545 through 17.553 is to establish the 
Readjustment Counseling Service Scholarship Program (RCSSP) as part of 
VA's Educational Assistance Program. For purposes of the RCSSP, the 
term Vet Center has the meaning given that term in 38 U.S.C. 1712A(h).


Sec.  17.547   Eligibility.

    An individual is eligible to participate in the RCSSP if the 
individual meets the following requirements.
    (a) Is accepted for enrollment or be currently enrolled on a full-
time basis in a program of study at an accredited educational 
institution, school, or training program leading to a terminal 
doctorate degree in psychology, or a terminal masters degree in social 
work, marriage and family therapy, or mental health counseling that 
would meet the education requirements for appointment to a position in 
one of those fields under 38 U.S.C. 7402(b); and
    (b) Enters into an agreement with the Secretary under Sec.  17.551.


Sec.  17.548   Application procedures.

    (a) Availability. VA will make awards under the RCSSP only when VA 
determines it is necessary to assist in alleviating shortages of 
psychologists, social workers, marriage and family therapists, or 
mental health counseling professionals in Vet Centers. VA's 
determination of the number of RCSSP scholarships to be awarded in a 
fiscal year is subject to the availability of appropriations.
    (b) Application-general. Each individual desiring a RCSSP 
scholarship must submit an accurate and complete application, including 
a signed written acceptance agreement.
    (c) VA's duties. VA will notify applicants prior to acceptance in 
the RCSSP 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 RCSSP and service in VA.


(The Office of Management and Budget has approved the information 
collection requirements in this section under control number 2900-
XXXX.)


Sec.  17.549   Award Procedures.

    (a) Priority. In selecting individuals to participate in the RCSSP 
VA will give priority to the following individuals:
    (1) An individual who agrees to be employed by Vet Centers located 
in communities that are:
    (i) Designated as a medically underserved population under Sec.  
330(b)(3) of the Public Health Service Act (42 U.S.C. 254b(b)(3)); and
    (ii) In States with a per capita population of more than five 
percent veterans according to the National Center for Veterans Analysis 
and Statistics and the Bureau of the Census.
    (2) A veteran.

[[Page 61099]]

    (b) Placement criteria. When determining which Vet Center a 
scholarship recipient will be placed to carry out their service 
obligation, VA will consider the priority criteria in paragraph (a) of 
this section and the size and professional makeup of the current Vet 
Center staff to ensure that the Vet Center staff has health care 
professionals that are licensed to supervise participants of the RCSSP 
from the same health care profession as required by VA professional 
qualification standards for licensure for each of the four professions.
    (c) Amount of funds. VA will provide a scholarship to individuals 
who participate in the RCSSP to cover the actual costs of such 
individuals obtaining a terminal degree in psychology, social work, 
marriage and family therapy, or professional mental health counseling 
for a maximum of two years. If a participant completes their terminal 
degree in less than two years, the period of obligated service remains 
unchanged.
    (1) Social work, marriage and family therapy, and professional 
mental health counseling are master level programs that require 
approximately a two-year period for achieving the terminal degree. VA 
will fund RCSSP social work, marriage and family therapy, and 
professional mental health counseling participants for a maximum of two 
years.
    (2) Psychology is a doctoral level program requiring approximately 
five years for completion of the terminal academic degree. In addition, 
psychology graduates are required to undergo a one-year residency at 
either an American Psychology Association (APA) or Canadian 
Psychological Association (CPA) accredited internship program prior to 
qualifying for full time VA employment. VA will fund psychology 
participants for the last two years of their five- year academic 
training to obtain a terminal doctorate degree. VA will not provide 
funding for the one-year APA or CPA internship under the RCSSP.
    (d) All such payments to scholarship participants are exempt from 
Federal taxation. The payments will consist of the actual cost of:
    (1) Tuition and required fees;
    (2) Other educational expenses, including books and laboratory 
equipment; and
    (3) A monthly stipend, for the duration of the scholarship award. 
The Secretary may determine the amount of the stipend paid to 
participants, but that amount may not exceed the maximum amount 
provided for in 38 U.S.C. 7613(b).


Sec.  17.551   Agreement and obligated service.

    (a) Agreement. Each participant who accepts funds from the RCSSP 
will enter into an agreement with VA where the participant agrees to 
the following:
    (1) Maintain enrollment, attendance, and an acceptable level of 
academic standing as defined by the school;
    (2) Obtain a terminal degree in psychology, social work, marriage 
and family therapy, or professional mental health counseling; and
    (3) Be employed as a full-time VA employee at a Vet Center for a 
period of six-years as a psychologist, social worker, marriage and 
family therapist, or professional mental health counselor following the 
completion of such program of study.
    (4) Psychologists must complete a one-year internship at either an 
American Psychological Association (APA) or Canadian Psychological 
Association (CPA) accredited program. Obtaining an APA or CPA 
accredited internship requires that an individual participate in the 
Association of Psychology Postdoctoral and Internship Centers (APPIC) 
process. If a scholarship participant does not participate in an APA or 
CPA accredited internship, they are in breach of their agreement.
    (b) Obligated service. (1) Determination of service commencement 
date. VA will notify the participant of the commencement date of the 
period of obligated service no later than 60 days before such date.
    (2) Commencement date of obligated service. (i) General. A 
participant's period of obligated service will begin on the date the 
participant begins full-time permanent employment at a Vet Center as a 
psychologist, social worker, marriage and family therapist, or 
professional mental health counselor, but no later than 180 days after 
the date that the participant completes a terminal degree in one of the 
identified disciplines. Psychology participants will commence their 
period of obligated service no later than 180 days after completion of 
their one-year APA or CPA internship, which requires completion of all 
academic requirements to obtain a terminal doctorate degree.
    (ii) Independent practice. Upon receipt of the terminal degree 
participants will enter VA employment at the entry level until full 
licensure at the independent practice level has been attained. 
Independent practice licensure is a requirement for all scholarship 
participants. Non-licensed psychologists, social workers, marriage and 
family therapists, and professional mental health counselors are 
required to serve under the supervision of a licensed health care 
professional of their profession and must be independently licensed by 
a State within the time frame specified in VA qualification standards.
    (iii) VA monitoring of participants. VA will actively assist and 
monitor participants to ensure State licenses are obtained in a minimal 
amount of time following graduation and the required period of 
supervision for their profession. If a participant fails to obtain 
their terminal degree or fails to obtain licensure in a State at the 
independent practice level no later than 180 days after the required 
period of supervision for their profession, the participant is 
considered to be in breach of the acceptance agreement.
    (3) Location and position of obligated service. VA reserves the 
right to make final decisions on the location and position of the 
obligated service. A participant who receives an RCSSP must be willing 
to relocate to another geographic location to carry out their service 
obligation in accordance with the participant's agreement. The 
requirement for participants to receive supervision from a licensed 
staff within their respective professions, as a condition for their own 
licensure, is a critical point for the consideration of the potential 
location of the obligated service.


(The Office of Management and Budget has approved the information 
collection requirements in this section under control number XXXX-
XXXX.)


Sec.  17.553   Failure to comply with terms and conditions of 
agreement.

    (a) Liquidated damages. Except as provided in paragraph (b) of this 
section, a participant of the RCSSP who fails to accept payment, or 
instructs the educational institution in which the participant is 
enrolled not to accept payment, in whole or in part, of a scholarship 
under the agreement entered into under Sec.  17.551 will be liable to 
the United States for liquidated damages in the amount of $1,500.
    (b) Liability during program of study. Except as provided in 
paragraph (d) of this section, a participant of the RCSSP will be 
liable to the United States for the amount that has been paid to or on 
behalf of the participant under the agreement if any of the following 
occurs: Liability under paragraph (b) of this section is in lieu of any 
service obligation arising under the agreement.
    (1) The participant fails to maintain an acceptable level of 
academic standing in the educational institution in which the 
participant is enrolled, as

[[Page 61100]]

determined by the educational institution;
    (2) The participant is dismissed from the educational institution 
for disciplinary reasons; or
    (3) The participant voluntarily terminates the program of study in 
the educational institution before the completion of the program of 
study for which the RCSSP was awarded.
    (c) Liability during period of obligated service. Except as 
provided in paragraph (d) of this section, if a participant of the 
RCSSP does not complete their period of obligated service, the United 
States will be entitled to recover from the participant an amount 
determined in accordance with the following formula: A = 3[Phi](t-s/t), 
where:
    (1) `A' is the amount the United States is entitled to recover;
    (2) `[Phi]' is the sum of (i) the amounts paid under this 
subchapter to or on behalf of the participant, and (ii) the interest on 
such amounts, which would be payable if at the time the amounts were 
paid they were loans bearing interest at the maximum legal prevailing 
rate, as determined by the Treasurer of the United States.
    (3) `t' is the total number of months in the period of obligated 
service of the participant; and
    (4) `s' is the number of months of such period served by the 
participant.
    (d) Limitation on liability for reductions-in-force. Liability will 
not arise under Section 17.553(c) if the participant fails to maintain 
employment as a VA employee due to a staffing adjustment.
    (e) Repayment period. The participant will pay the amount of 
damages that the United States is entitled to recover under Sec.  
17.553 in full to the United States no later than one year after the 
date of the breach of the agreement.

[FR Doc. 2021-23822 Filed 11-4-21; 8:45 am]
BILLING CODE 8320-01-P