[Federal Register Volume 88, Number 232 (Tuesday, December 5, 2023)]
[Rules and Regulations]
[Pages 84239-84241]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-26625]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AR90


VA Veteran Readiness and Employment Program: Removal of 
Regulation Regarding Repayment of Training and Rehabilitation Supplies

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: The Department of Veterans Affairs (VA) is removing a 
regulation that addresses the circumstances under which a Veteran is to 
repay the value of training and rehabilitation supplies and the 
exceptions where repayment is not required. A prior version of the 
regulation's authorizing statute contained a provision that permitted 
VA to require the return or repayment of books, supplies, or equipment 
if a Veteran failed to complete a course of vocational rehabilitation 
due to fault on their part. However, because the authorizing statute no 
longer contains that provision, and because there is no statutory 
authority allowing VA to require reimbursement of books, supplies, or 
equipment under any circumstance where a Veteran fails to complete a 
course of vocational rehabilitation, VA is removing the governing 
regulation.

DATES: This final rule is effective December 5, 2023.

FOR FURTHER INFORMATION CONTACT: Loraine Spangler, Policy Analyst, 
Veteran Readiness and Employment Service (28), 810 Vermont Ave. NW, 
Washington, DC 20420; [email protected]; (202) 461-9600 (this is 
not a toll-free telephone number).

SUPPLEMENTARY INFORMATION: The purpose of this rulemaking is to remove 
38 CFR 21.222 (``Release of, and repayment for, training and 
rehabilitation supplies'') because it is no longer supported by 
statutory authority.
    Section 21.222 sets forth the circumstances under which a Veteran 
is to repay the value of training and rehabilitation supplies when the 
Veteran fails to complete a rehabilitation program as planned. Section 
21.222 also lists numerous exceptions where VA will not require 
reimbursement from the Veteran, including when the failure to complete 
the program is not the Veteran's fault.
    A prior version of the regulation's authorizing statute provided 
that ``[a]ny

[[Page 84240]]

books, supplies, or equipment furnished a veteran under this chapter 
shall be deemed released to the veteran, except that if, because of 
fault on the veteran's part, the veteran fails to complete the course 
of vocational rehabilitation, the veteran may be requir[]ed by the 
Administrator to return any or all of such books, supplies, or 
equipment not actually expended, or to repay the reasonable value 
thereof.'' 38 U.S.C. 1509(a) (1976). However, Congress subsequently 
removed that provision from the authorizing statute. The current 
statute provides, in pertinent part, that the Secretary may provide 
``[v]ocational and other training services and assistance, including 
individualized tutorial assistance, tuition, fees, books, supplies, 
handling charges, licensing fees, and equipment and other training 
materials determined by the Secretary to be necessary to accomplish the 
purposes of the rehabilitation program in the individual case.'' 38 
U.S.C. 3104(a)(7)(A). There is no longer a statutory provision that 
permits VA to require the return or repayment of books, supplies, or 
equipment when a Veteran fails to complete a course of vocational 
rehabilitation because of fault on the Veteran's part.
    Accordingly, VA is removing 38 CFR 21.222, the regulation that 
addresses the circumstances under which a Veteran is to repay the value 
of training and rehabilitation supplies and the exceptions where 
repayment is not required. VA is removing Sec.  21.222 in its entirety. 
The regulation's enumerated exceptions under which a Veteran is not 
required to repay the value of supplies are moot because there is no 
longer a statutory authority that permits VA to require the return or 
repayment of books, supplies, or equipment under any circumstance where 
a Veteran fails to complete a course of vocational rehabilitation.
    Although 38 U.S.C. 3104 does not authorize VA to require the return 
or repayment of books, supplies, or equipment when a Veteran fails to 
complete a course of vocational rehabilitation, controls are in place 
to protect the integrity of the VR&E program and guard against fraud, 
waste, and abuse.
    To conform with the removal of 38 CFR 21.222, VA is also revising 
38 CFR 21.212(b) and 38 CFR 21.224 to remove their references to 38 CFR 
21.222.

Administrative Procedure Act

    The Secretary of Veterans Affairs finds that there is good cause 
under the provisions of 5 U.S.C. 553(b)(B) and (d) to publish this 
final rule without prior opportunity for public comment and with 
immediate effect. There is no longer a statutory authority that permits 
VA to require the return or repayment of books, supplies, or equipment 
under any circumstance where a Veteran fails to complete a course of 
vocational rehabilitation. VA thus finds that prior opportunity for 
public comment is unnecessary under 5 U.S.C. 553(b)(B). For the same 
reason, VA concludes that there is good cause not to delay the 
effective date of the final rule under 5 U.S.C. 553(d)(3).

Paperwork Reduction Act

    This final rule contains no provisions constituting a collection of 
information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3521).

Executive Orders 12866, 13563 and 14094

    Executive Order 12866 (Regulatory Planning and Review) directs 
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 14094 (Modernizing 
Regulatory Review) supplements and reaffirms the principles, 
structures, and definitions governing contemporary regulatory review 
established in Executive Orders 12866 and 13563. The Office of 
Information and Regulatory Affairs has determined that this rulemaking 
is not a significant regulatory action under Executive Order 12866, as 
amended by Executive Order 14094. The Regulatory Impact Analysis 
associated with this rulemaking can be found as a supporting document 
at www.regulations.gov.

Regulatory Flexibility Act

    The Regulatory Flexibility Act, 5 U.S.C. 601-612, is not applicable 
to this rulemaking because notice of proposed rulemaking is not 
required. 5 U.S.C. 601(2), 603(a), 604(a).

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 final rule will have no such effect on 
State, local, and tribal governments, or on the private sector.

Congressional Review Act

    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
the Office of Information and Regulatory Affairs designated this rule 
as not a major rule, as defined by 5 U.S.C. 804(2).

List of Subjects in 38 CFR Part 21

    Administrative practice and procedure, Armed forces, Civil rights, 
Claims, Colleges and universities, Conflict of interests, Education, 
Employment, Grant programs--education, Grant programs-veterans, Health 
care, Loan programs-education, Loan programs-veterans, Manpower 
training programs, Reporting and recordkeeping requirements, Schools, 
Travel and transportation expenses, Veterans, Vocational education, 
Vocational rehabilitation.

Signing Authority

    Denis McDonough, Secretary of Veterans Affairs, signed and approved 
this document on November 27, 2023, 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.

Jeffrey M. Martin,
Assistant Director, 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 amends 38 CFR part 21 as set forth below:

PART 21--VETERAN READINESS AND EMPLOYMENT AND EDUCATION

Subpart A--Veteran Readiness and Employment

0
1. The authority citation for part 21, subpart A, continues to read as 
follows:

    Authority:  38 U.S.C. 501(a), chs. 18, 31, and as noted in 
specific sections.


Sec.  21.212  [Amended]

0
2. Amend Sec.  21.212 in paragraph (b) by removing ``21.222'' and 
adding in its place ``21.220''.


Sec.  21.222  [Removed]

0
3. Remove Sec.  21.222.

[[Page 84241]]

Sec.  21.224  [Amended]

0
4. Amend Sec.  21.224 by removing ``21.222'' and adding in its place 
``21.220''.

[FR Doc. 2023-26625 Filed 12-4-23; 8:45 am]
BILLING CODE 8320-01-P