Title of Regulation: 18VAC140-20. Regulations Governing the Practice of Social Work (amending 18VAC140-20-30, 18VAC140-20-100, 18VAC140-20-105, 18VAC140-20-106, 18VAC140-20-110, 18VAC140-20-130).

Statutory Authority: § 54.1-2400 of the Code of Virginia.

Public Hearing Information:

December 5, 2014 - 10 a.m. - Perimeter Center, Department of Health Professions, 9960 Mayland Drive, 2nd Floor, Richmond, VA 23233.

Public Comment Deadline: January 30, 2015.

Agency Contact: Catherine Chappell, Executive Director, Board of Social Work, 9960 Mayland Drive, Suite 300, Richmond, VA 23233-1463, telephone (804) 367-4406, FAX (804) 527-4435, or email catherine.chappell@dhp.virginia.gov.

Basis: Regulations Governing the Practice of Social Work (18VAC140-20) are promulgated under the general authority of Chapter 24 (§ 54.1-2400 et seq.) of Title 54.1 of the Code of Virginia, which establishes the general powers and duties of health regulatory boards including (i) the responsibility to promulgate regulations in accordance with the Administrative Process Act that are reasonable and necessary and (ii) the authority to levy and collect fees that are sufficient to cover all expenses for the administration of a regulatory program.

The proposed regulation is mandated by § 54.1-113 of the Code of Virginia; however the board must exercise some discretion in the amount and type of fees that will be increased in order to comply with the statute. Section 54.1-113 A states "Following the close of any biennium, when the account for any regulatory board within the Department of Professional and Occupational Regulation or the Department of Health Professions maintained under § 54.1-308 or § 54.1-2505 shows expenses allocated to it for the past biennium to be more than ten percent greater or less than moneys collected on behalf of the board, it shall revise the fees levied by it for certification or licensure and renewal thereof so that the fees are sufficient but not excessive to cover expenses."

Purpose: The issue to be addressed is the need of the Board of Social Work to increase its fees to cover expenses for essential functions of licensing, investigation of complaints against licensees, and adjudication of disciplinary cases to protect the health and safety of clients and patients who receive social work and clinical services in the Commonwealth.

Section 54.1-113 of the Code of Virginia requires that at the end of each biennium, an analysis of revenues and expenditures of each regulatory board shall be performed. It is necessary that each board have sufficient revenue to cover its expenditures. In the 2009 fiscal year (FY09), the board collected biennial renewal fees, resulting in a balance of $404,324. However, the combination of income in FY10 and FY11 did not equal the combined expenditures for those fiscal years. At the time the NOIRA was adopted, it was projected that the board may conclude FY14 with a deficit of ($124,132) and that the board will continue to have deficits through the fiscal years going forward. However, because of extraordinary increases in information technology (IT) services, increases in health care costs, building lease payments, and other expenditures, the projected deficit for FY14 is now ($254,794) and is projected to increase to ($505,232) without action by the board.

In FY05 when the contract for information technology services was signed, placing all IT hardware, software, and services under a contract with Northrop Grumman through the Virginia Information Technologies Agency (VITA), Department of Health Professions (DHP) costs for IT services was $850,000. In FY11, the cost for those services was $3.6 million, and it is projected to be $4.4 million in FY12. Since DHP and its boards are under the VITA contract, the agency has no other options for information technology.

Additionally, some of DHP's nongeneral funds were transferred, in accordance with the Budget Bill of 2010, to the General Fund to help close the gap between revenue and expenditures. The share of that cash transfer allocated to the Board of Social Work was $11,818. There is a possibility that the General Assembly could opt to require another cash transfer in 2011 and beyond.

Since the fees from licensees no longer generate sufficient funds to pay operating expenses for the board, adoption of a fee increase is essential to continue licensing, investigating, and disciplining social workers.

Substance: Amendments reflect an increase in the application and renewal fees, fees charged for late renewal, administrative fees, and reinstatement after disciplinary action. The renewal cycle is changed from biennial to annual, but the verification of continuing education remains on a two-year cycle.

An application and licensure fee will increase from $100 to $165 for a licensed clinical social worker and from $100 to $115 for a licensed social worker. Renewal fees will change from $125 biennially to $90 annually for a licensed clinical social worker and from $110 biennially to $65 annually for a licensed social worker.

Issues: The primary advantage to the public is that increased fees will produce adequate revenue to fund the licensing and disciplinary activities of the board. With the shortfall of $254,794 projected in FY14, there could be significant delays in licensing and in the investigation and adjudication of complaints against licensees. There are no disadvantages to the public; increases in renewal fees are mitigated by moving from a biennial to an annual license and should not significantly impact the cost of social work services for Virginians.

There are no disadvantages to the agency; the advantage would be that fees would be sufficient to cover expenditures, especially significant increases in IT services, which is a requirement of the Code of Virginia.

Department of Planning and Budget's Economic Impact Analysis:

Summary of the Proposed Amendments to Regulation. The Board of Social Work (Board) proposes to increase most fees paid by licensees and registrants that are subject to the Board's authority and to move from biennial renewal to annual renewal.

Result of Analysis. For one of these proposed changes, costs for licensees likely outweigh benefits for the agency. There is insufficient information to accurately gauge whether benefits are likely to outweigh costs for these proposed changes.

Estimated Economic Impact. Under current regulations, licensed clinical social workers and licensed social workers pay the same initial licensure fees ($100). During biennial renewal licensed clinical social workers currently pay more than licensed social workers ($125 to $110). Currently all classes of licensed or registered social workers can renew their licenses or registrations for up to four years after their expiration dates by paying a late renewal fee of $10 and providing proof of completed continuing education.

With these proposed regulations, the Board intends to 1) separate initial licensure fee paid by licensed clinical social workers from that paid by licensed social workers (all fees except the fee for reinstatement of licensure after disciplinary action), 2) require renewal of licensure every year instead of every two years (although proof of continuing education will still be required only every other year), 3) limit late renewal to within one year of expiration of license or registration and 4) separate fee for adding or changing supervision from that for initial registration of supervision. The Board also proposes to increase all fees except those for late renewal for registered social workers and associate social workers and the returned check fee. Below is a comparison table for current and proposed fees:

FEE TYPE	CURRENT FEE	PROPOSED FEE	% INCREASE
Registration of Supervision	$25	$50	100%
Add/Change Supervision	$25	$25	No change
Application Processing for Licensed Clinical Social Workers	$100	$165	65%
Application Processing for Licensed Social Workers	$100	$115	15%
Registration Renewal for Registered Social Workers	$35 (biennially)	$25 (annually)	((25*2)-35)/35= 42.86%
Registration Renewal for Associate Social Worker	$35 (biennially)	$25 (annually)	((25*2)-35)/35= 42.86%
License Renewal for Licensed Social Worker	$110 (biennially)	$65 (annually)	((65*2)-110)/110= 18.18%
License Renewal for Licensed Clinical Social Worker	$125 (biennially)	$90 (annually)	((90*2)-125)/125= 44%
Penalty for Late Renewal for Registered Social Worker	$10	$10	No Change
Penalty for Late Renewal for Associate Social Worker (within one year)	$10	$10	No Change
Penalty for Late Renewal for Licensed Social Workers	$10	$20	100%
Penalty for Late Renewal for Licensed Clinical Social Workers (within one year)	$10	$30	200%
Verification of License to Another Jurisdiction	$10	$25	150%
Additional or Replacement Licenses	$10	$15	50%
Verification Additional or Replacement Wall Certificates	$15	$25	66.67%
Returned Check Charge	$35	$35	No Change
Reinstatement Following Disciplinary Action	$200	$500	150%

Board staff reports that the Board had a surplus for FY 2009 of 404,324 but expects to run a deficit for FY2010 and FY2011 and that, absent approval of these fee increases, "the projected deficit for FY14 is now $254,794" and may reach as high as $505,232. Board staff reports that these fee increases are needed because 1) the costs of health care for Board employees and lease payments for office space have increased, 2) some Board non-general funds were transferred in FY2010 to the General Fund to help close the budget gap and, so, won't be available to cover the cost of licensure services and 3) costs for information technology (IT) services have skyrocketed.

The Department of Health Professions (DHP) reports that a large portion of the expected expenditure increases over their forecast horizon are needed to cover increased costs for services from the Virginia Information Technologies Agency (VITA). DHP reports that its VITA services costs have more than tripled from FY2005 to FY2011, from $850,000 to $3.6 million, and are expected to be $4.4 million in FY2012. A large portion of the increase in costs, at least for FY 2010 and FY 2011, can be attributed to the planned move of DHP's licensing servers from DHP to Northrop Grumman. DHP anticipates that this will increase the costs for maintaining these servers by approximately $80,000 per month ($960,000 per year). The Board is and will be responsible for a proportional share of these costs. Although it is likely beyond the capacity of DHP to control the very rapid growth of these costs, licensees of this Board (and all other DHP Boards) would benefit from increased scrutiny of services provided to DHP through VITA.

Board staff also reports that a portion of DHP's non-general fund bank account balances that would have partially offset the need for fee increases were instead moved to the General Fund by the Budget Bill of 2010 to help close the gap between revenue and expenditures. Staff reports that the Board's portion of this transfer was $11,818. Staff further reports that there is a possibility that further transfers could be required in the current budget or future budgets. Licensees likely are harmed by these transfers as funds that were collected from them (and the interest those funds earned) that would have been used to cover the costs of administering their licensure program are instead used to offset the need for an increase in general taxes or for further budget cuts.

The Board proposes one change to these regulations that will increase costs for regulants even though they are not fee increases per se. The Board proposes to require annual, rather than biennial, license renewal. Board staff reports that this proposal will only raise Board costs slightly, even though the number of renewals that will be processed over each biennium will roughly double. The Board expects revenues will be higher with annual renewal because "the Board may derive revenue from persons on an annual basis who would have retired, moved away or changed professions by the time biennial renewal is due." One could argue, however, that individuals are more likely to know about changes that will be happening in the near future (within one year) that would affect a decision about license renewal and that changes in status that will occur further into the future are less known. This would mean that the Board may actually see a slight decrease in revenue because people who know that they are moving soon or have gotten a job that does not require licensure will choose not to renew. Regulants' implicit costs (time spent filling out renewal forms, etc.) for renewing their licenses or registrations will likely double if license renewal is required annually. Because proof of continuing education is not required for license renewal, and because continuing education will remain on a biennial schedule, this change is likely to be a source of confusion. For these reasons, costs will likely outweigh benefits for this proposed change.

Businesses and Entities Affected. DHP reports that the Board currently regulates 4,967 licensed clinical social workers, 349 licensed social workers, 2 associate social workers and 27 registered social workers. All of these entities, as well as any individuals or entities who may wish to become licensed or registered in the future, will be affected by these proposed regulations.

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

Projected Impact on Employment. Fee increases in this regulatory action will likely marginally decrease the number of individuals who choose to work in professional fields that are regulated by the Board. Individuals who work part time or whose earnings are only slightly higher in these licensed fields than they would be in other jobs that do not require licensure will be more likely to be affected.

Effects on the Use and Value of Private Property. To the extent that affected licensees are in private practice, fee increases will likely slightly decrease business profits and make their businesses slightly less valuable.

Small Businesses: Costs and Other Effects. DHP does not know how many affected entities would qualify as small businesses but does know that many licensed clinical social workers are small business independent practitioners.

Small Businesses: Alternative Method that Minimizes Adverse Impact. There are several actions that the Board could take that might mitigate the necessity of raising fees overall. The Board could slightly lengthen the time that it takes to process both license applications and complaints so that staff costs could be cut. This option would benefit current licensees but would slightly delay licensure, and the ability to legally work, for new applicants. Affected small businesses would also likely benefit from increased scrutiny of the IT costs that are driving increases in both agency and Board expenditures.

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, 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 Board of Social Work does not concur with the analysis of the Department of Planning and Budget on proposed amended regulations for 18VAC140-20, Regulations Governing the Practice of Social Work, relating to a fee increase.

The supposition that a change to an annual renewal may result in a slight decrease in revenue is not supported by past experience with budgets of other boards. The Board of Audiology and Speech-Language Pathology changed from biennial to annual renewal in 2004; by 2009 there was a sufficient surplus in revenue to warrant a decrease in renewal fees. The Board of Psychology changed from biennial to annual renewal in 2003; that board has had subsequent reductions in renewal fees in 2007 and again in 2010 because surplus revenue resulted. The Board of Counseling changed from a biennial to annual renewal in 2000 and has been able to adopt a reduction in renewal fees for 2006, 2007, and 2010.

The economic impact analysis is also incorrect in the statement that proof of continuing education is required for license renewal; the licensee is required to attest on the electronic renewal form that he is in compliance with continuing education requirements. Only those licensees who are audited every two years are required to provide proof of continuing education.

The agency strongly disagrees with the statement that costs will outweigh benefits of the proposed change because evidence from the experience of other boards points to the opposite conclusion.

Summary:

The proposed amendments (i) increase fees for initial application, renewal, late renewal, and reinstatement after disciplinary action, among others; (ii) establish a fee for an addition to or change in registration of supervision; and (iii) change the license renewal cycle from biennial to annual.

18VAC140-20-30. Fees.

A. The board has established fees for the following:

	1. Registration of supervision		$25 $50
	2. Addition to or change in registration of supervision		$25
	2. 3. Application processing		$100
		a. Licensed clinical social worker	$165
		b. Licensed social worker	$115
	3. Biennial 4. Annual license renewal
		a. Registered social worker	$35 $25
		b. Associate social worker	$35 $25
		c. Licensed social worker	$110 $65
		d. Licensed clinical social worker	$125 $90
	4. 5. Penalty for late renewal		$10
		a. Registered social worker	$10
		b. Associate social worker	$10
		c. Licensed social worker	$20
		d. Licensed clinical social worker	$30
	5. 6. Verification of license to another jurisdiction		$10 $25
	6. 7. Additional or replacement licenses		$10 $15
	7. 8. Additional or replacement wall certificates		$15 $25
	8. 9. Returned check		$35
	9. 10. Reinstatement following disciplinary action		$200 $500

B. Fees shall be paid by check or money order made payable to the Treasurer of Virginia and forwarded to the board. All fees are nonrefundable.

C. Examination fees shall be paid directly to the examination service according to its requirements.

18VAC140-20-100. Licensure renewal.

A. All Beginning with the 2013 renewal, licensees shall renew their licenses on or before June 30 of each odd-numbered year and pay the renewal fee prescribed by the board.

B. Licensees who wish to maintain an active license shall pay the appropriate fee and document on the renewal form compliance with the continued competency requirements prescribed in 18VAC140-20-105. Newly licensed individuals are not required to document continuing education on the first renewal date following initial licensure.

C. A licensee who wishes to place his license in inactive status may do so upon payment of a fee equal to one-half of the biennial annual license renewal fee as indicated on the renewal form. No person shall practice social work or clinical social work in Virginia unless he holds a current active license. A licensee who has placed himself in inactive status may become active by fulfilling the reactivation requirements set forth in 18VAC140-20-110.

D. Each licensee shall furnish the board his current address of record. All notices required by law or by this chapter to be mailed by the board to any such licensee shall be validly given when mailed to the latest address of record given by the licensee. Any change in the address of record or the public address, if different from the address of record, shall be furnished to the board within 30 days of such change.

18VAC140-20-105. Continued competency requirements for renewal of an active license.

A. Licensed clinical social workers shall be required to have completed a minimum of 30 contact hours of continuing education and licensed social workers shall be required to have completed a minimum of 15 contact hours of continuing education for each biennial prior to licensure renewal in even years. Courses or activities shall be directly related to the practice of social work or another behavioral health field. A minimum of two of those hours must pertain to ethics or the standards of practice for the behavioral health professions or to laws governing the practice of social work in Virginia.

1. The board may grant an extension for good cause of up to one year for the completion of continuing education requirements upon written request from the licensee prior to the renewal date. Such extension shall not relieve the licensee of the continuing education requirement.

2. The board may grant an exemption for all or part of the continuing education requirements due to circumstances beyond the control of the licensee such as temporary disability, mandatory military service, or officially declared disasters upon written request from the licensee prior to the renewal date.

B. Hours may be obtained from a combination of board-approved activities in the following two categories:

1. Category I. Formally Organized Learning Activities. A minimum of 20 hours for licensed clinical social workers or 10 hours for licensed social workers shall be documented in this category, which shall include one or more of the following:

a. Regionally accredited university or college academic courses in a behavioral health discipline. A maximum of 15 hours will be accepted for each academic course.

b. Continuing education programs offered by universities or colleges accredited by the Council on Social Work Education.

c. Workshops, seminars, conferences, or courses in the behavioral health field offered by federal, state or local social service agencies, public school systems or licensed health facilities and licensed hospitals.

d. Workshops, seminars, conferences or courses in the behavioral health field offered by an individual or organization that has been certified or approved by one of the following:

(1) The Child Welfare League of America and its state and local affiliates.

(2) The National Association of Social Workers and its state and local affiliates.

(3) The National Association of Black Social Workers and its state and local affiliates.

(4) The Family Service Association of America and its state and local affiliates.

(5) The Clinical Social Work Association and its state and local affiliates.

(6) The Association of Social Work Boards.

(7) Any state social work board.

2. Category II. Individual Professional Activities. A maximum of 10 of the required 30 hours for licensed clinical social workers or a maximum of five of the required 15 hours for licensed social workers may be earned in this category, which shall include one or more of the following:

a. Participation in an Association of Social Work Boards item writing workshop. (Activity will count for a maximum of two hours.)

b. Publication of a professional social work-related book or initial preparation/presentation of a social work-related course. (Activity will count for a maximum of 10 hours.)

c. Publication of a professional social work-related article or chapter of a book, or initial preparation/presentation of a social work-related in-service training, seminar, or workshop. (Activity will count for a maximum of five hours.)

d. Provision of a continuing education program sponsored or approved by an organization listed under Category I. (Activity will count for a maximum of two hours and will only be accepted one time for any specific program.)

e. Field instruction of graduate students in a Council on Social Work Education-accredited school. (Activity will count for a maximum of two hours.)

f. Serving as an officer or committee member of one of the national professional social work associations listed under subdivision B 1 d of this section or as a member of a state social work licensing board. (Activity will count for a maximum of two hours.)

g. Attendance at formal staffings at federal, state, or local social service agencies, public school systems, or licensed health facilities and licensed hospitals. (Activity will count for a maximum of five hours.)

h. Individual or group study including listening to audio tapes, viewing video tapes, reading, professional books or articles. (Activity will count for a maximum of five hours.)

18VAC140-20-106. Documenting compliance with continuing education requirements.

A. All licensees in active status are required to maintain original documentation for a period of five three years following renewal.

B. After the end of each renewal period, the The board shall may conduct a random an audit of licensees to verify compliance with the requirement for that a renewal period.

C. Upon request, a licensee shall provide documentation as follows:

1. Documentation of Category I activities by submission of:

a. Official transcripts showing credit hours earned; or

b. Certificates of participation.

2. Attestation of completion of Category II activities.

D. Continuing education hours required by disciplinary order shall not be used to satisfy renewal requirements.

18VAC140-20-110. Late renewal; reinstatement; reactivation.

A. A social worker or clinical social worker whose license has expired may renew that license within four years one year after its expiration date by:

1. Providing evidence of having met all applicable continuing education requirements.

2. Paying the penalty for late renewal and the biennial license renewal fee for each biennium as prescribed in 18VAC140-20-30.

B. A social worker or clinical social worker who fails to renew the license for four years or more after one year and who wishes to resume practice shall apply for reinstatement, and pay the reinstatement fee and, which shall consist of the application processing fee and the penalty fee for late renewal, as set forth in 18VAC140-20-30. An applicant for reinstatement shall also provide documentation of having completed all applicable continued competency hours equal to the number of years the license has lapsed, not to exceed four years. An applicant for reinstatement shall also provide evidence of competency to practice by documenting:

1. Active practice in another U.S. jurisdiction for at least three of the past five years immediately preceding application;

2. Active practice in an exempt setting for at least three of the past five years immediately preceding application; or

3. Practice as a supervisee under supervision for at least 360 hours in the 12 months immediately preceding licensure in Virginia.

C. A social worker or clinical social worker wishing to reactivate an inactive license shall submit the renewal fee for active licensure minus any fee already paid for inactive licensure renewal, and document completion of continued competency hours equal to the number of years the license has been inactive, not to exceed four years. An applicant for reactivation shall also provide evidence of competency to practice by documenting:

1. Active practice in another U.S. jurisdiction for at least three of the past five years immediately preceding application;

2. Active practice in an exempt setting for at least three of the past five years immediately preceding application; or

3. Practice as a supervisee under supervision for at least 360 hours in the 12 months immediately preceding licensure in Virginia.

18VAC140-20-130. Renewal of registration for associate social workers and registered social workers.

The registration of every associate social worker and registered social worker with the former Virginia Board of Registration of Social Workers under former § 54-775.4 of the Code of Virginia shall expire on June 30 of each odd-numbered year.

1. Each registrant shall return the completed application before the expiration date, accompanied by the payment of the renewal fee prescribed by the board.

2. Failure to receive the renewal notice shall not relieve the registrant from the renewal requirement.