Title of Regulation: 12VAC20-50. Administration of State Funding for Regional Health Planning (repealing 12VAC20-50-10 through 12VAC20-50-140).

Statutory Authority: § 32.1-12 of the Code of Virginia.

Public Hearing Information: No public hearings are scheduled.

Public Comment Deadline: January 29, 2014.

Effective Date: February 17, 2014.

Agency Contact: Carrie Eddy, Senior Policy Analyst, Department of Health, 9960 Mayland Drive, Suite 401, Richmond, VA 23233, telephone (804) 367-2157, FAX (804) 257-4502, or email carrie.eddy@vdh.virginia.gov.

Basis: Chapter 83 of the 2002 Acts of Assembly abolished the Virginia Health Planning Board (VHPB) and transferred authority for the certificate of public need program (COPN) to the State Board of Health. Section 32.1-12 of the Code of Virginia authorizes the State Board of Health to make, adopt, promulgate, and enforce such regulations as may be necessary to carry out the provisions of Title 32.1 of the Code of Virginia and other laws of the Commonwealth administered by it, the Commissioner of Health, or the Department of Health.

Purpose: This regulatory chapter no longer serves its intended purpose and is not necessary to protect the health, safety, or welfare of citizens; therefore, the department is taking action to repeal the entire chapter. Chapter 83 of the 2002 Acts of Assembly transferred oversight of the health planning regions (HPRs) to the department. Over the succeeding years, four of the five designated HPRs ceased operation, no longer able to meet financial obligations to remain operationally viable. Chapter 175 of the 2009 Acts of Assembly and Chapter 646 of the 2010 Acts of Assembly authorize the Department of Health to conduct local public hearings in the review of requests for COPNs and convey responsibility for notifying local governments of pending reviews when no regional health planning agency had been designated. As the VHPB no longer exists and this chapter was duplicative of law under the VHPB, the department is taking this action to repeal the entire regulatory chapter 12VAC20-50.

Rationale for Using Fast-Track Process: The regulation has not been enforced since 2002, when the VHPB was abolished (Chapter 83, 2002 Acts of Assembly). Since the department did not receive a direct legislative mandate to repeal the VHPB regulations, the department has chosen the fast-track rulemaking process to expedite the repeal of this chapter. As the VHPB no longer exists and this chapter was duplicative of law under the VHPB, the department is taking this action to repeal the chapter.

Substance: The regulatory chapter is duplicative of statutory provisions and no longer serves its intended purpose; therefore, the department is taking action to repeal the entire chapter. The department has the authority to promulgate regulations should there be a need in the future.

Issues: Governor McDonnell instructed all regulatory agencies "to conduct a comprehensive review of regulations currently in place and repeal regulations that are unnecessary or no longer in use…." In keeping with this goal, this action is advantageous to the public, the agency, and the Commonwealth as it removes an unnecessary regulation from the Virginia Administrative Code. There are no disadvantages to the public or the Commonwealth.

Department of Planning and Budget's Economic Impact Analysis:

Summary of the Proposed Amendments to Regulation. As the originally designated governing board for the Virginia Certificate of Public Need Program, the Virginia Health Planning Board (VHPB) last met in 1991. Chapter 83 of the 2002 Acts of Assembly assigned the functions of the VHPB to the State Board of Health. The State Board of Health therefore proposes to repeal these obsolete regulations, which pertain to the defunct Virginia Health Planning Board.

Result of Analysis. The benefits likely exceed the costs for all proposed changes.

Estimated Economic Impact. These regulations pertain to a long-defunct board. Repealing these regulations would be beneficial in that it would help eliminate potential confusion by readers who might be lead to believe that there is an existing Virginia Health Planning Board.

Businesses and Entities Affected. The proposed repeal of these regulations will not directly affect any businesses or entities beyond eliminating potential confusion by those who might otherwise be mislead into believing that there is an existing Virginia Health Planning Board.

Localities Particularly Affected. The proposed repeal does not disproportionately affect particular localities.

Projected Impact on Employment. The proposed repeal will not affect employment.

Effects on the Use and Value of Private Property. The proposed repeal will not significantly affect the use and value of private property.

Small Businesses: Costs and Other Effects. The proposed repeal will not significantly affect costs for small businesses.

Small Businesses: Alternative Method that Minimizes Adverse Impact. The proposed repeal does not adversely affect small businesses.

Real Estate Development Costs. The proposed repeal does not affect real estate development costs.

Legal Mandate. The Department of Planning and Budget (DPB) has analyzed the economic impact of this proposed regulation in accordance with § 2.2-4007.04 of the Administrative Process Act and Executive Order Number 14 (10). Section 2.2-4007.04 requires that such economic impact analyses include, but need not be limited to, a determination of the public benefit, the projected number of businesses or other entities to whom the regulation would apply, the identity of any localities and types of businesses or other entities particularly affected, the projected number of persons and employment positions to be affected, the projected costs to affected businesses or entities to implement or comply with the regulation, and the impact on the use and value of private property. Further, if the proposed regulation has an adverse effect on small businesses, § 2.2-4007.04 requires that such economic impact analyses include (i) an identification and estimate of the number of small businesses subject to the regulation; (ii) the projected reporting, recordkeeping, and other administrative costs required for small businesses to comply with the regulation, including the type of professional skills necessary for preparing required reports and other documents; (iii) a statement of the probable effect of the regulation on affected small businesses; and (iv) a description of any less intrusive or less costly alternative methods of achieving the purpose of the regulation. The analysis presented above represents DPB's best estimate of these economic impacts.

Agency Response to Economic Impact Analysis: The Department of Health concurs with the Department of Planning and Budget's economic assessment and that the assessment is true and accurate.

Summary:

Chapter 83 of the 2002 Acts of Assembly abolished the Virginia Health Planning Board (VHPB) and transferred regulatory authority for the certificate of public need program to the State Board of Health. As the VHPB no longer exists and this chapter is duplicative of applicable statutory provisions, the entire chapter is repealed.