TITLE 22. SOCIAL SERVICES

STATE BOARD OF SOCIAL SERVICES

Fast-Track Regulation

Title of Regulation: 22VAC40-295. Temporary Assistance for Needy Families (TANF) (amending 22VAC40-295-10).

Statutory Authority: § 63.2-217 of the Code of Virginia.

Public Hearing Information: No public hearing is currently scheduled.

Public Comment Deadline: April 9, 2025.

Effective Date: April 24, 2025.

Agency Contact: Mark Golden, Program Manager, Department of Social Services, 801 East Main Street, Richmond, VA 23219, telephone (804) 726-7385, FAX (804) 726-7357, or email mark.golden@dss.virginia.gov.

Basis: Section 63.2-217 of the Code of Virginia states that the State Board of Social Services shall adopt regulations, not in conflict with Title 63.2 of the Code of Virginia, as may be necessary or desirable to carry out the purpose of that title.

Purpose: The Temporary Assistance for Needy Families (TANF) Program provides cash assistance to eligible needy families that include a minor child living with a parent or caretaker relative. The program is an essential safety net to protect the welfare of citizens.

Rationale for Using Fast-Track Rulemaking Process: This action is expected to be noncontroversial because the amendments reduce the regulatory burden without changing the substance of the regulation.

Substance: The amendments include (i) revising definitions and (ii) updating the document incorporated by reference into the regulation.

Issues: Amending the definitions allows for the elimination of several current requirements, which serves as an advantage to the agency and the Commonwealth. It eliminates the need for time and effort by staff to ensure the state complies with the unnecessary requirements. Changing the regulation is advantageous to the public as it will ensure the regulation is reflective of current practice, so program rules are transparent to the public. There are no disadvantages to the agency, the Commonwealth, or the public.

Department of Planning and Budget Economic Impact Analysis:

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 Code of Virginia and Executive Order 19. The analysis presented represents DPB's best estimate of the potential economic impacts as of the date of this analysis.¹

Summary of the Proposed Amendments to Regulation. The State Board of Social Services (board) proposes to replace references to the Department of Social Services (DSS) child care policy with references to the Department of Education (DOE) child care policy in the regulation governing the Temporary Assistance for Needy Families (TANF) program. This change follows the move of the Child Care Program from DSS to DOE in 2021.

Background. The current regulation defines affordable child care arrangements as the cost of the child care being less than or equal to the payment amounts specified in the Virginia Department of Social Services Child Care Services policy (Volume VII, Section II, Chapter D, Revised February 2000). The board proposes to replace the Virginia Department of Social Services Child Care Services policy (Volume VII, Section II, Chapter D, Revised February 2000) with Appendices E, F, and G of the Virginia Department of Education Child Care Subsidy Program Guidance Manual. The current regulation defines unsuitability of informal child care as a child care arrangement that does not meet the requirements for relative care in the Virginia Department of Social Services Child Day Care Services policy. The board proposes to replace the Virginia Department of Social Services Child Day Care Services policy with Section 5.2 A of the Virginia Department of Education Child Care Subsidy Program Guidance Manual.

Estimated Benefits and Costs: According to DSS, the relevant language in the DOE manual is the same as the relevant language in DSS Child Care Services policy. Thus, the proposed amendments would have no impact beyond helping readers of the regulation find the effective citations.

Businesses and Other Entities Affected. The proposed amendments do not have an effect in practice, but concern the 45,045 children in the Commonwealth that receive subsidized child care through TANF.² The Code of Virginia requires DPB to assess whether an adverse impact may result from the proposed regulation.³ An adverse impact is indicated if there is any increase in net cost or reduction in net benefit for any entity, even if the benefits exceed the costs for all entities combined.⁴ The proposed amendments neither increase net cost nor reduce net benefits. Thus, no adverse impact is indicated.

Small Businesses⁵ Affected.⁶ The proposed amendments do not adversely affect small businesses.

Localities⁷ Affected.⁸ The proposed amendments neither disproportionately affect particular localities, nor effect costs for local governments.

Projected Impact on Employment. The proposed amendments do not affect total employment.

Effects on the Use and Value of Private Property. The proposed amendments do not affect the use and value of private property or costs related to the development of real estate.

_____________________________

¹ Section 2.2-4007.04 of the Code of Virginia requires that such economic impact analyses determine the public benefits and costs of the proposed amendments. Further the analysis should include but not be limited to: (1) the projected number of businesses or other entities to whom the proposed regulatory action would apply, (2) the identity of any localities and types of businesses or other entities particularly affected, (3) the projected number of persons and employment positions to be affected, (4) the projected costs to affected businesses or entities to implement or comply with the regulation, and (5) the impact on the use and value of private property.

² Data source: DSS.

³ Pursuant to § 2.2-4007.04 D: In the event this economic impact analysis reveals that the proposed regulation would have an adverse economic impact on businesses or would impose a significant adverse economic impact on a locality, business, or entity particularly affected, the Department of Planning and Budget shall advise the Joint Commission on Administrative Rules, the House Committee on Appropriations, and the Senate Committee on Finance. Statute does not define "adverse impact," state whether only Virginia entities should be considered, nor indicate whether an adverse impact results from regulatory requirements mandated by legislation.

⁴ Statute does not define "adverse impact," state whether only Virginia entities should be considered, nor indicate whether an adverse impact results from regulatory requirements mandated by legislation. As a result, DPB has adopted a definition of adverse impact that assesses changes in net costs and benefits for each affected Virginia entity that directly results from discretionary changes to the regulation.

⁵ Pursuant to § 2.2-4007.04, small business is defined as "a business entity, including its affiliates, that (i) is independently owned and operated and (ii) employs fewer than 500 full-time employees or has gross annual sales of less than $6 million."

⁶ If the proposed regulatory action may have an adverse effect on small businesses, § 2.2-4007.04 requires that such economic impact analyses include: (1) an identification and estimate of the number of small businesses subject to the proposed regulation, (2) the projected reporting, recordkeeping, and other administrative costs required for small businesses to comply with the proposed regulation, including the type of professional skills necessary for preparing required reports and other documents, (3) a statement of the probable effect of the proposed regulation on affected small businesses, and (4) a description of any less intrusive or less costly alternative methods of achieving the purpose of the proposed regulation. Additionally, pursuant to § 2.2-4007.1 of the Code of Virginia, if there is a finding that a proposed regulation may have an adverse impact on small business, the Joint Commission on Administrative Rules shall be notified.

⁷ "Locality" can refer to either local governments or the locations in the Commonwealth where the activities relevant to the regulatory change are most likely to occur.

⁸ Section 2.2-4007.04 defines "particularly affected" as bearing disproportionate material impact.

Agency Response to Economic Impact Analysis: The State Board of Social Services has reviewed the economic impact analysis prepared by the Department of Planning and Budget and concurs.

Summary:

In response to Executive Order 19 (2022), the amendments (i) revise definitions to clarify which parts of a document being incorporated by reference apply to the regulation; and (ii) update the document incorporated by reference.

22VAC40-295-10. Definitions.

The following words and terms when used in this chapter shall have the following meanings unless the context clearly indicates otherwise:

"Administrative disqualification hearing" or "ADH" means an impartial review by a hearing officer of an individual's actions involving an alleged intentional program violation for the purpose of rendering a decision of guilty or not guilty of committing an intentional program violation.

"Adoption assistance" means a money payment or services provided to adoptive parents on behalf of a child with special needs.

"Affordable child care arrangements" means the cost of the child care is less than or equal to the payment amounts specified in the Virginia Department of Social Services Child Care Services policy (Volume VII, Section II, Chapter D, Revised February 2000) Appendices E, F, and G of the Virginia Department of Education Child Care Subsidy Program Guidance Manual.

"Application" means a request for financial assistance received by the local social services agency in the format prescribed by the Virginia Department of Social Services.

"Appropriate child care" means child care arranged by the participant or, if the participant cannot arrange for the child's care, child care arranged by the local department of social services with a legally-operating legally operating provider.

"Assistance unit" means those persons who must participate together as a family unit.

"Board" means the State Board of Social Services.

"Caretaker" means the natural or adoptive parent or other relative with whom the child resides who is responsible for supervision and care of the needy child and is the individual to whom the assistance payment is made.

"Child" means a child who is eligible for TANF and has not attained the age of 18 years of age, or if regularly attending a secondary school or in the equivalent level of career and technical education, has not attained the age of 19 years of age and is reasonably expected to complete his senior year of school prior to attaining age 19 years of age.

"Department" means the Virginia Department of Social Services.

"Dependent child" means a child living in the home of a parent or relative.

"Determination of eligibility" means the screening procedure to determine the need for assistance and the amount of the monthly assistance payment.

"Disregard" means income that is not considered when determining eligibility for the TANF program.

"Earned income" means income from wages, salary, commissions, or profit from activities in which an individual is engaged as self-employed.

"Emancipated child" means a minor who has been released from parental care and responsibility by court order.

"Former recipient" means an individual whose case has been closed and is not presently receiving an assistance payment through TANF.

"Gross earned and unearned income" means total income before application of any applicable disregards.

"Hearing officer" means an impartial representative of the Department of Social Services to whom requests for hearings are assigned and by whom they are heard. The hearing officer has been delegated the authority by the Commissioner of the Department of Social Services to conduct and control hearings and to render decisions.

"Income" means all income, both earned and unearned, which that is available or expected to be available to the assistance unit.

"Intentional program violation" or "IPV" means any action by an individual for the purpose of establishing or maintaining the family's eligibility for TANF or TANF service or for increasing or preventing a reduction in the amount of the grant which that is intentionally a false or misleading statement or misrepresentation, concealment or withholding of facts, or any act intended to mislead, misrepresent, conceal or withhold facts, or propound a falsity.

"Local agency" means any one of the local departments of social services.

"Lump sum" means money received in the form of a nonrecurring payment that is treated as income in the month of receipt.

"Minor" means any person who is under the age of 18 years of age.

"Otherwise eligible" means that the individual is not precluded from eligibility by some provision of law or regulation.

"Overpayment" means an assistance payment or the value of services provided by a local department of social services that is greater than the amount to which that the assistance unit is eligible to receive.

"Parent" means a mother or father, married or unmarried, natural or, following entry of an interlocutory order, adoptive.

"Payee" means the person to whom the assistance payment is made payable. In most situations, the caretaker is the payee.

"Protective payee" means an appropriate individual to act for the caretaker in receiving and managing the assistance payment. The protective payee should be someone who is interested and concerned with the welfare of the caretaker and his children.

"Reasonable distance" means that the travel time from the child's home to the child care provider and the work site is generally no more than one hour, based on transportation available to the parent.

"Recipient" means a person whose application for TANF or TANF-UP has been approved and who is currently a member of an eligible assistance unit.

"Recoupment" means withholding all or part of an assistance payment to a current assistance unit for the purpose of repaying a prior overpayment.

"Recovery" means a voluntary or court ordered court-ordered arrangement with a current or former assistance unit for repayment of an overpayment.

"Sanctioned caretaker" means a caretaker whose needs are removed from the grant and who is ineligible for an assistance payment.

"SSN" means social security number.

"Standard of assistance" means the dollar amount, based on the family size, which that has been established by the State Board of Social Services to cover predetermined monthly maintenance needs.

"Temporary Assistance for Needy Families" or "TANF" means the program administered by the Virginia Department of Social Services, through which a relative can receive monthly cash assistance for the support of his eligible children.

"Unearned income" means income that is not earned.

"Unsuitability of informal child care" means that the child care arrangement does not meet the requirements for relative care in the Virginia Department of Social Services Child Day Care Services policy Section 5.2 A of the Virginia Department of Education Child Care Subsidy Program Guidance Manual.

DOCUMENTS INCORPORATED BY REFERENCE (22VAC40-295)

Virginia Department of Social Services Child Care Services Policy, Volume VII, Section II, Chapter D, Revised February 2000.

Child Care Subsidy Program Guidance Manual, Section 5.2 A and Appendices E, F, and G, Virginia Department of Education, effective 8/3/2023.