TITLE 8. EDUCATION

STATE BOARD OF EDUCATION

Fast-Track Regulation

Title of Regulation: 8VAC20-840. Virginia Child Care Provider Scholarship Program (repealing 8VAC20-840-10 through 8VAC20-840-90).

Statutory Authority: § 22.1-16 of the Code of Virginia.

Public Hearing Information: No public hearing is currently scheduled.

Public Comment Deadline: December 31, 2025.

Effective Date: January 15, 2026.

Agency Contact: Jim Chapman, Director of Board Relations, Department of Education, James Monroe Building, 101 North 14th Street, 25th Floor, Richmond, VA 23219, telephone (804) 750-8750, or email jim.chapman@doe.virginia.gov.

Basis: Section 22.1-16 of the Code of Virginia authorizes the State Board of Education to promulgate regulations necessary to carry out its powers and duties and the provisions of Title 22.1 of the Code of Virginia.

Purpose: This action is essential to protect the health, safety, and welfare of citizens because it removes unnecessary language from the board's regulatory catalog that can be more efficiently managed as guidelines on the Department of Education's website, which is typically how scholarship programs are treated.

Rationale for Using Fast-Track Rulemaking Process: This action is expected to be noncontroversial and therefore appropriate for the fast-track rulemaking process because it is removing a regulation that is not required. The guidelines for the scholarship program will continue to be available on the department's website.

Substance: The action repeals Virginia Child Care Provider Scholarship Program (8VAC20-840); the associated scholarship program will be posted to the Department of Education's website as guidelines.

Issues: The primary advantage to the public and the Commonwealth is that the board will no longer have regulations that are not required by statute. There are no disadvantages to the public or Commonwealth.

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 Board of Education (board) proposes to repeal 8VAC20-840, Virginia Child Care Provider Scholarship Program and then add the elements of the regulation, minus the appeals process, to a new guideline on the Department of Educations (DOE) website.

Background. The Virginia Child Care Provider Scholarship Program awards scholarships for undergraduate courses at Virginia community colleges and Montessori certification programs accredited by the State Council of Higher Education for Virginia. The courses eligible for this scholarship program focus on the care and education of young children. In order for an applicant to be eligible for the scholarship, he or she must (i) be an employee of a child care program located in the Commonwealth, (ii) live in Virginia and be employed in a child care program outside of the Commonwealth, or (iii) live in Virginia and declare an intent to become employed in child care. On average, DOE awards between 1,200 and 1,500 scholarships per academic year, with each scholarship award between $510 and $700. Funding for the program comes from the federal Child Care and Development Fund. The regulation consists of the application form and the following nine sections: 8VAC20-840-10 Definitions, 8VAC20-840-20 Purpose and intent, 8VAC20-840-30 Application process, 8VAC20-840-40 Selection and eligibility, 8VAC20-840-50 Appeal process, 8VAC20-840-60 College and university agreements, 8VAC20-840-70 Disbursement of funds, 8VAC20-840-80 Gathering and maintaining information, and 8VAC20-840-90 Recipient responsibilities. According to DOE, the guideline would not include the appeals process in the current 8VAC20-840-50 but otherwise would have minimal changes from the regulation.

Estimated Benefits and Costs. To the extent that the new guideline contains the same requirements and procedures as the regulation, the effect upon scholarship applicants and recipients would be minimal. As DOE relates, the guideline would not have an appeals process but the effect of this change depends upon the likelihood that it would have been used and the availability of an alternative process. In 8VAC20-840-50 the regulation states that:

Any person denied a scholarship who believes the denial was contrary to law or regulations may appeal the denial pursuant to the Administrative Process Act (§ 2.2-4000 et seq. of the Code of Virginia). Section 2.2-4019 of the Code of Virginia provides the aggrieved party the right to request an informal conference. This request shall be made within 15 days of the date of denial. The informal conference is a factfinding process and gives the aggrieved party an opportunity to present information that the denial decision was based on factual error or misinterpretation of facts. The aggrieved party may be required to provide verification of facts. The department then has 90 days from the date of the informal conference to issue its official decision in writing, including information concerning the aggrieved party's right to continue the appeal process pursuant to the Administrative Process Act. The informal conference may be conducted by telephone if both parties consent.

If the regulation is repealed, persons denied a scholarship would not have the right to appeal. Instead, aggrieved individuals could sue the Commonwealth if they believe the denial was contrary to law or regulations. DOE notes that it has never had an appeal in the scholarship program. The scholarship program was transferred from the Board of Social Services to the Board of Education in 2021. It is not known if there were any appeals in the scholarship program prior to the transfer. Though it is not known if anyone has ever used the appeal process for the scholarship program, removing the appeal option could potentially be deleterious for some individuals who wish to challenge a denial of the scholarship. Although some individuals could represent themselves pro se, other individuals may require the assistance of an attorney. In contrast, the appeal process pursuant to the Administrative Process Act would not require the hiring of a lawyer. Consequently, the appeal process available with the regulation would likely be less costly than the alternative process of filing and pursuing a lawsuit for at least some potentially aggrieved individuals.

Businesses and Other Entities Affected. The regulation and the scholarship program pertain to individuals who are: an employee of a child care program located in the Commonwealth, a Virginia resident who is employed by a non-Commonwealth child care program, or a Virginia resident who intends to become employed in a Virginia child care program. On average, DOE awards between 1,200 and 1,500 such scholarships per academic year. Employers and potential employers of the scholarship applicants are indirectly affected. The Code requires DPB to assess whether an adverse impact may result from the proposed regulation.² 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.³ An individual interested in appealing a denial of a scholarship application could be adversely affected by losing the right to appeal to the extent that the use of an alternative process is more costly or pro se representation takes more time.

Small Businesses⁴ Affected.⁵ The proposed repeal of the regulation does not appear to adversely affect small businesses.

Localities⁶ Affected.⁷ The proposed repeal neither disproportionately affects particular localities nor introduces costs for local governments.

Projected Impact on Employment. The proposed repeal does not substantively affect total employment.

Effects on the Use and Value of Private Property. The proposed repeal does not substantively affect either the use and value of private property or real estate development costs.

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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 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.

³ 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.

⁴ 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."

⁵ 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.

⁶ "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.

⁷ Section 2.2-4007.04 defines "particularly affected" as bearing disproportionate material impact.

Agency Response to the Economic Impact Analysis: The State Board of Education thanks the Department of Planning and Budget for its thorough economic impact analysis concerning this action.

Summary:

The action repeals Virginia Child Care Provider Scholarship Program (8VAC20-840); the associated scholarship program will be posted to the Department of Education's website as guidelines.