Titles of Regulations: 18VAC65-20. Regulations of the Board of Funeral Directors and Embalmers (amending 18VAC65-20-110).

18VAC65-40. Regulations for the Funeral Service Internship Program (amending 18VAC65-40-40).

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

Public Hearing Information: No public hearings are scheduled.

Public Comment Deadline: February 19, 2020.

Effective Date: March 5, 2020.

Agency Contact: Corie Tillman Wolf, Executive Director, Board of Funeral Directors and Embalmers, 9960 Mayland Drive, Suite 300, Richmond, VA 23233, telephone (804) 367-4479, FAX (804) 527-4471, or email fanbd@dhp.virginia.gov.

Basis: Regulations are promulgated under the general authority of § 54.1-2400 of the Code of Virginia, which provides the Board of Funeral Directors and Embalers the authority to promulgate regulations to administer the regulatory system. The specific mandate for collection of a handling fee is found in § 2.2-4805 of the Virginia Debt Collection Act

Purpose: The rationale for the regulatory change is compliance with the Virginia Debt Collection Act (§ 2.2-4800 et seq.) of the Code of Virginia, in which the General Assembly has determined that the cost for handling returned checks or dishonored credit or debit cards is $50. The department and its regulatory boards license and discipline health care practitioners, and its mission of protecting the health and safety of the public must be supported by its licensing and miscellaneous fees.

Rationale for Using Fast-Track Rulemaking Process: The rulemaking is concurring with financial policy of the Commonwealth and is expected to be noncontroversial.

Substance: All board regulations are being amended to delete the returned check fee of $35 and replace it with a handling fee of $50 for a returned check, dishonored credit card, or dishonored debit card.

Issues: There are no primary advantages or disadvantages to the public. The primary advantage to the department is compliance with auditors from the Office of the Comptroller. There are no disadvantages to the agency or the Commonwealth.

Department of Planning and Budget's Economic Impact Analysis:

Summary of the Proposed Amendments to Regulation. The Board of Funeral Directors and Embalmers (Board) proposes to amend 18VAC65-20 Regulations of the Board of Funeral Directors and Embalmers and 18VAC65-40 Regulations for the Funeral Service Internship Program to state that the handling fee for a returned check or dishonored credit card or debit card is $50, replacing a current $35 charge.

Background. Code of Virginia § 2.2-614.1 specifies that:

If any check or other means of payment tendered to a public body in the course of its duties is not paid by the financial institution on which it is drawn, because of insufficient funds in the account of the drawer, no account is in the name of the drawer, or the account of the drawer is closed, and the check or other means of payment is returned to the public body unpaid, the amount thereof shall be charged to the person on whose account it was received, and his liability and that of his sureties, shall be as if he had never offered any such payment. A penalty of $35 or the amount of any costs, whichever is greater, shall be added to such amount.

Based on this Code provision, the current regulations include a $35 returned check charge.

On the other hand, § 2.2-4805 of the Code of Virginia specifies that "Returned checks or dishonored credit card or debit card payments shall incur a handling fee of $50 unless a higher amount is authorized by statute to be added to the principal account balance." According to the Department of Health Professions (DHP), the Office of the Attorney General has advised that the handling fee of $50 in § 2.2-4805 of the Code of Virginia governs.

Estimated Benefits and Costs. Based on the view of the Office of the Attorney General that § 2.2-4805 of the Code of Virginia prevails, the fee by law for a returned check or dishonored credit card or debit card is $50. The Board's proposal therefore conforms the regulation to current law. DHP has indicated that in practice they will continue to charge the $35 fee until this proposed regulatory action becomes effective. The services provided by DHP are funded by the fees paid by the regulated individuals and entities. To the extent that the $50 fee more accurately represents the cost incurred by DHP, the proposed change may be beneficial in that the cost would need not be subsidized by other regulants who did not cause the cost to be incurred.

Businesses and Other Entities Affected. The proposal pertains to fee-paying individuals and entities regulated by the Board. As of June 30, 2019, there were 14 continuing education providers, 109 courtesy card holders,² 115 crematories, 2 embalmers, 36 funeral directors, 419 funeral establishments, 186 funeral service interns, 1,516 funeral service licensees, 567 funeral supervisors, and 44 surface transport and removal service providers regulated by the Board. If any of these individuals or entities have a check returned or a credit card or debit card dishonored, the proposal would increase their cost by $15.

Localities³ Affected.⁴ The proposal does not disproportionately affect any particular localities or introduce costs for local governments.

Projected Impact on Employment. The proposal does not affect employment.

Effects on the Use and Value of Private Property. The proposal does not substantially affect the use and value of private property or real estate development costs.

Adverse Effect on Small Businesses⁵:

Types and Estimated Number of Small Businesses Affected. The proposal would potentially affect the 14 continuing education providers, 115 crematories, 419 funeral establishments, and 44 surface transport and removal service providers if they were to have a check returned or a credit card or debit card dishonored. Most of these entities would likely qualify as a small business.

Costs and Other Effects. If any of these entities were to have a check returned or a credit card or debit card dishonored, the proposal would increase their cost by $15.

Alternative Method that Minimizes Adverse Impact. There are no clear alternative methods that both reduce adverse impact and meet the intended policy goals.

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²"Courtesy card" means the card issued by the Board which grants limited and restricted funeral service privileges in the Commonwealth to out-of-state funeral service licensees, funeral directors, and embalmers.

^3"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.

⁴§ 2.2-4007.04 defines "particularly affected" as bearing disproportionate material impact.

⁵Pursuant to § 2.2-4007.04 of the Code of Virginia, 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."

Agency's Response to Economic Impact Analysis: The Board of Funeral Directors and Embalmers concurs with the analysis of the Department of Planning and Budget.

Summary:

The amendments replace the returned check fee of $35 with a fee of $50 for handling a returned check or dishonored credit card or debit card payment in compliance with § 2.2-4805 of the Code of Virginia.

18VAC65-20-110. Additional fee information.

A. There shall be a handling fee of $35 $50 for returned checks or dishonored credit cards or debit cards.

B. Fees shall not be refunded once submitted.

C. The fee for the Virginia State Board Examination shall be paid directly to the examination service contracted by the board for its administration.

18VAC65-40-40. Fees.

A. The following fees shall be paid as applicable for registration:

	1. Funeral service intern registration	$150
	2. Funeral service intern renewal	$125
	3. Late fee for renewal up to one year after expiration	$45
	4. Duplicate copy of intern registration	$25
	5. Returned check Handling fee for returned check or dishonored credit card or debit card	$35 $50
	6. Registration of supervisor	$35
	7. Change of supervisor	$35
	8. Reinstatement fee	$195

B. Fees shall be made payable to the Treasurer of Virginia and shall not be refundable once submitted.