Title of Regulation: 22VAC40-470. Exemptions Applicable to Public Assistance Programs (amending 22VAC40-470-10).

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

Public Hearing Information: No public hearings are scheduled.

Public Comment Deadline: February 11, 2015.

Effective Date: February 26, 2015.

Agency Contact: Angela Beachy, Benefit Programs Assistant Director, Department of Social Services, 801 East Main Street, Richmond, VA 23219, telephone (804) 726-7365, FAX (804) 726-7357, or email angela.beachy@dss.virginia.gov.

Basis: Section 63.2-217 of the Code of Virginia provides blanket authority to the State Board of Social Services to adopt regulations that may be necessary or desirable to carry out Title 63.2 of the Code of Virginia.

Purpose: The provisions of federal law do not apply to the Auxiliary Grant (AG) Program. While the AG Program is included in the definition of public assistance programs in § 63.2-100 of the Code of Virginia, it is a state and locally funded program and, as such, the federal law to exempt payments made to victims of Nazi persecution do not cover the program. This action will ensure that eligibility rules for auxiliary grants are aligned with other federal means-tested public assistance programs administered by the Virginia Department of Social Services and ensure that such payments continue to be disregarded in the determination of AG eligibility. There is no adverse impact on the health, safety, or welfare of Virginia's citizens.

Rationale for Using Fast-Track Process: The AG Program currently disregards Nazi persecution payments as income or resources. Current eligibility practices will not be affected; therefore, controversy is not anticipated.

Substance: The substantive change is to replace the current exemption of Nazi persecution payments in all public assistance programs and limit the exemption to AG. The other public assistance programs defined in § 63.2-100 of the Code of Virginia are federal means-tested programs covered by the federal statute, with the exception of the General Relief Program, which only covers unattached children who would not qualify for such payments.

Issues: There are no known advantages or disadvantages to the Commonwealth or the public, as these eligibility criteria are already incorporated into AG guidance.

Department of Planning and Budget's Economic Impact Analysis:

Summary of the Proposed Amendments to Regulation. The Board of Social Services (Board) proposes to amend its regulation that governs eligibility exemptions for public assistance programs. Specifically, the Board proposes to amend language so that only the solely state funded assistance program is named in this regulation and to change a Code of Virginia (COV) reference.

Result of Analysis. Benefits likely outweigh costs for these proposed regulatory changes.

Estimated Economic Impact. Currently, this regulation reads, "The value of foreign government restitution payments made to Holocaust survivors on or after August 1, 1994, shall be disregarded in the determination of eligibility or amount of assistance for all public assistance programs as defined in § 63.2-100 of the Code of Virginia." Since all public assistance programs that are covered by this regulation, except for the Auxiliary Grants Program, are funded, in full or in part, by the federal government, an exemption for Holocaust survivor restitution payments is already required for them. The Board now proposes to amend regulatory language so that only the state funded Auxiliary Grant Program is mentioned. The Board also proposes to update a COV citation so that it points to state rules for the Auxiliary Grant Program. No entity is likely to incur costs on account of these changes. Affected entities may benefit from changes to this regulation that increase clarity.

Businesses and Entities Affected. These proposed regulatory changes will affect all Holocaust survivors who started receiving restitution payments from foreign governments after August 1, 1994 and who may be eligible for means-tested public assistance.

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

Projected Impact on Employment. This regulatory action is unlikely to affect 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 businesses will be affected by this regulatory action.

Small Businesses: Alternative Method that Minimizes Adverse Impact. No small businesses will be affected by 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 action amends the regulatory language so that only the auxiliary grant program funded solely by the Commonwealth is named in the regulation and to correct a citation to the Code of Virginia.

22VAC40-470-10. Foreign government restitution payments to Holocaust survivors.

The value of foreign government restitution payments made to Holocaust survivors on or after August 1, 1994, shall be disregarded in the determination of eligibility or amount of assistance for all public assistance programs the Auxiliary Grants Program as defined in § 63.2-100 51.5-160 of the Code of Virginia.