Title of Regulation: 22VAC40-690. Virginia Child Care Provider Scholarship Program (amending 22VAC40-690-15, 22VAC40-690-35).

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

Public Hearing Information: No public hearings are scheduled.

Public Comment Deadline: December 18, 2013.

Effective Date: January 2, 2014.

Agency Contact: Kathy Gillikin, Division of Child Care and Development, Department of Social Services, 801 East Main Street, Richmond, VA 23219, telephone (804) 726-7606, FAX (804) 726-7655, TTY (800) 828-1120, or email kathy.gillikin@dss.virginia.gov.

Basis: Section 63.2-217 of the Code of Virginia provides the State Board of Social Services with the authority to promulgate the regulation. Additional statutory authority includes 42 USC § 9858 et seq.; 42 USC § 1958e and h; and §§ 63.2-206 and 63.2-207 of the Code of Virginia.

Purpose: The regulation is needed to provide the legal right to appeal eligibility decisions regarding scholarship awards for child care providers or those intending to become providers. Modifications are required to bring the regulation in compliance with current state law, including citation updates and revisions to the appeal process to protect the health, welfare, and safety of the public.

Rationale for Using Fast-Track Process: During the public comment period of the periodic review process, there were no comments made about this regulation. As part of the periodic review, the Office of the Attorney General recommended the use of the fast-track rulemaking process to make a very minor Code of Virginia citation update and to update the appeal process, as these actions are not expected to be controversial.

Substance: The amendments (i) update a Code of Virginia citation; (ii) update the current appeal process to conform to the Administrative Process Act; and (iii) revise the application form to include date-of-birth, last five digits of the social security number, and updated Virginia Community College System course information, which will be helpful in tracking applicants' use of the program.

Issues: The primary advantage to the public with these changes is that the Code of Virginia citation will be correct for easier reference and the appeal information will coincide with the Administrative Process Act. Additionally, the application form was revised to require better data tracking information on each applicant with the new online application and tracking system. There are no disadvantages to the public or the Commonwealth for making these changes.

Small Business Impact Report of Findings: This regulatory action serves as the report of findings of the regulatory review pursuant to § 2.2-4007.1 of the Code of Virginia.

Department of Planning and Budget's Economic Impact Analysis:

Summary of the Proposed Amendments to Regulation. The State Board of Social Services (Board) proposes to amend its regulations that govern the Virginia Child Care Provider Scholarship Program which provides funds to child care providers to pay for undergraduate courses. The Board proposes to update Code of Virginia citations, clarify that the program is subject to availability of funds and update the form number.

Result of Analysis. Benefits likely outweigh costs for all proposed changes.

Estimated Economic Impact. While current language in these regulations does not specify that scholarships dispersed under this program are subject to availability of funds; by statute, they are. The Board proposes to specify in the regulations that this program is subject to the availability of funds. This change provides greater conformity to authorizing statutes and adds clarity to these regulations which will benefit interested parties.

The Board also proposes to update regulatory language that lays out the appeals process so that it conforms to the Administrative Process Act and to update a reference to the form that scholarship applicants have to fill out. Again, these changes add clarity to the regulations and, therefore, will benefit interested parties. No entity is likely to incur costs on account of any of these proposed changes.

Businesses and Entities Affected. Board staff reports that only a small number of child care providers receive scholarships under this program so only a small number of individuals will be affected by these proposed changes.

Localities Particularly Affected. No locality will be particularly affected by this proposed regulatory action.

Projected Impact on Employment. This proposed regulatory action is unlikely to have any effect on employment in the Commonwealth.

Effects on the Use and Value of Private Property. These proposed regulatory changes are unlikely to affect the use or value of private property in the Commonwealth.

Small Businesses: Costs and Other Effects. No small business is likely to incur any costs on account of this regulatory action.

Small Businesses: Alternative Method that Minimizes Adverse Impact. No small business is likely to incur any costs on account of this regulatory action.

Real Estate Development Costs. This regulatory action will likely have no effect on real estate development costs in the Commonwealth.

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's Response to Economic Impact Analysis: The Department of Social Services concurs with the economic impact analysis prepared by the Department of Planning and Budget.

Summary:

The amendments update a Code of Virginia citation, revise the appeal process to comply with the Virginia Administrative Process Act, and update the application form.

22VAC40-690-15. Purpose and intent.

The purpose of the Virginia Child Care Provider Scholarship Program is to provide tuition assistance to child care providers. The intent of the program is to provide child care providers with a foundation in child care and child development. The anticipated benefit of an increased knowledge and skills base for child care providers will be an improved level of care provided to Virginia's children. This program is subject to the availability of funds.

22VAC40-690-35. Appeal process.

A. Any person denied a scholarship who believes the denial was contrary to law or regulations may request an informal conference, as provided for by § 9-6.14:11 of the Code of Virginia, with the designee of the Commissioner, by filing a written Notice of Appeal with the department within 33 days of the date on the denial letter. The Notice of Appeal must be received by the department within the 33-day time period. The decision of the informal conference shall constitute a final agency case decision and shall be appealable as provided for in Article 4 (§ 9-6.14:15 et seq.) of Chapter 1.1:1 of Title 9 of the Code of Virginia. 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 fact-finding 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.

B. No person shall have a right to appeal any denial due to lack of scholarship funds, untimely application, or incomplete application.

FORMS (22VAC40-690)

Virginia Child Care Provider Scholarship Program Application, Form # 032-05-0032-03 (eff. 3/08)

Virginia Child Care Provider Scholarship Program Application, Form # 032-05-0032-06-eng (eff. 10/12)