Title of Regulation: 22VAC45-30. Regulations Governing the Sale and Distribution of Goods and Articles Made by Blind Persons (amending 22VAC45-30-10 through 22VAC45-30-110).

Statutory Authority: § 51.5-65 of the Code of Virginia.

Public Hearing Information: No public hearing is currently scheduled.

Public Comment Deadline: October 15, 2021.

Agency Contact: Susan K. Davis, MS, CRC, Regulatory Coordinator, Department for the Blind and Vision Impaired, 397 Azalea Avenue, Henrico, VA 23227, telephone (804) 371-3140, FAX (804) 371-3157, or email susan.davis@dbvi.virginia.gov.

Basis: Statutory authority comes from § 51.5-65 of the Code of Virginia, which identifies the functions, duties, and powers of the Commissioner of the Department for the Blind and Vision Impaired to adopt regulations to carry out the applicable provisions of the chapter.

Purpose: This regulation facilitates identification of goods and articles made by persons who are blind and organizations established to assist persons who are blind in the sale of goods or articles by providing a means of authenticating the source of such goods and articles. The regulation prevents misrepresentation of these same persons thereby protecting such persons' safety and welfare.

Substance: This regulatory action updates the agency name, deletes references to repealed sections of the Code of Virginia, and aligns language in 22VAC45-30 with §§ 51.5-101 through 51.5-105 of the Code of Virginia.

Issues: The department recognizes the advantage to the agency and public of amending 22VAC45-30 to reflect the relevant sections. This regulatory action clarifies the agency name and aligns the regulation with the Code of Virginia, which assures that citizens of the Commonwealth, government officials, and other members of the public do not experience confusion when seeking to understand the relevant Virginia Administrative Code and Code of Virginia sections requirements. This regulatory action poses no disadvantages to the public or to the Commonwealth.

Department of Planning and Budget's Economic Impact Analysis:

Summary of the Proposed Amendments to Regulation. The Department for the Blind and Vision Impaired (DBVI) proposes to correct the agency name, replace the incorrectly used word "permit" with the word "registration," update references to the Code of Virginia, and clarify the language in general.

Background. This regulation requires any person or business engaged in the manufacture, sale, or distribution of any goods purporting to have been made by a person who is blind to register with DBVI in order to use a label or symbol designed or approved by DBVI to identify such goods and articles as made by blind persons. Registration must be renewed annually. No fees are required to register. The regulation does not apply to blind persons selling their own produced goods.

In essence, this regulation facilitates identification of goods and articles made by persons who are blind and organizations established to assist persons who are blind in the sale of goods or articles by providing a means of authenticating the source of such goods and articles; the regulation prevents misrepresentation of these same persons.

Product labeling is a tool to inform the consumers about the maker of the product so that if they have a preference to purchase goods made by blind or vision impaired individuals or their willingness to pay is higher for such goods they are able to do so with the information provided by the labeling allowed under this regulation.

Estimated Benefits and Costs. The proposed changes include: updating references to the Code of Virginia, replacing the incorrectly used word "permit" with the correct word "registration," correcting the agency name, and clarifying the language in general.

None of the proposed changes appear to have any impact on how this regulation would be implemented. Thus, no economic effect is expected from the proposed changes other than improving the accuracy and the clarity of the regulatory text.

Businesses and Other Entities Affected. Using the American Community Survey 2018 five-year estimates and the Weldon Cooper Center July 2019 population estimates, DBVI estimates there are 95,684 individuals between the ages 18 to 64, and 80,176 individuals 65 and older with blindness or vision loss in Virginia. However, DBVI have received no applications for registration in at least 20 years.¹ Thus, the proposed changes are not expected to affect any entities at this time. In addition, the proposed changes do not introduce any costs or other effects. So, no adverse impact² is indicated and no entity appears to be disproportionally affected.

Small Businesses³ Affected. The proposed amendments do not adversely affect small businesses.

Localities⁴ Affected.⁵ The proposed amendments do not affect localities.

Projected Impact on Employment. The proposed amendments do not affect total employment.

Effects on the Use and Value of Private Property. The proposed amendments do not affect the use and value of private property.

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¹DBVI reports that it considered repealing this regulation. However, § 51.5-101 of the Code of Virginia specifically requires that agency adopt a regulation for administration of the statute.

²Adverse impact is indicated if there is any increase in net cost or reduction in net revenue for any entity, even if the benefits exceed the costs for all entities combined.

³Pursuant 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."

⁴"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.

⁵§ 2.2-4007.04 defines "particularly affected" as bearing disproportionate material impact.

Agency's Response to Economic Impact Analysis: The Department for the Blind and Vision Impaired concurs with the economic impact analysis performed by the Department of Planning and Budget.

Summary:

The proposed amendments (i) update references to the Code of Virginia, (ii) replace the incorrectly used word "permit" with the correct word "registration,"(iii) correct the agency name, and (iv) clarify language in general.

22VAC45-30-10. General.

It is the policy of the Commonwealth of Virginia through the Department for the Visually Handicapped Blind and Vision Impaired to assist blind persons who are blind and organizations established to aid blind persons who are blind in the sale of goods and articles which that are the product of a blind craftsman's the labor of a person who is blind by providing a means of authenticating the source of such goods and articles and by preventing misrepresentation.

In implementing this policy, this chapter shall govern and form the basis for enforcing the policy under § 63.1-167 §§ 51.5-101 through 51.5-105 of the Code of Virginia.

22VAC45-30-20. Application for registration and permit.

Every A person, firm, or organization engaged in the manufacture, sale, or distribution in the Commonwealth of Virginia of any goods or and articles purporting or in any manner represented to have been made by a person who is blind persons shall apply to the Department for the Visually Handicapped Blind and Vision Impaired (department) for registration and permit to use a label or symbol designed or approved by the department to identify such goods and articles as made by blind persons.

22VAC45-30-30. Application requirements.

Every such The application shall be made on forms prescribed by the department and shall disclose fully the identity and address of the applicant; and include a descriptive list of all goods and articles proposed to be manufactured, sold, or distributed by the applicant as "blind-made" products; and the proposed sale price of each such item. Each made by a person who is blind and that may be labeled as "Made by a person who is blind." The applicant shall furnish any additional information requested by the department Department for the Blind and Vision Impaired (department) relevant to compliance by the applicant with the provisions of said statute § 51.5-60 of the Code of Virginia, including a medical eye report documenting that the person making the goods is a blind person as described in § 51.5-60. This documentation shall be retained by the applicant for the duration the applicant wishes to sell the goods and shall be updated the earlier of every two years or when a significant change in the person's vision occurs. Persons who are blind shall perform at least 75% of the labor to produce the product.

The department shall verify, or require verification of, all information submitted by the application; and to this end, may require the applicant to submit samples for examination and may cause its authorized representatives to visit the site of manufacture for inspection.

22VAC45-30-40. Product requirements.

No organization representing itself as established for the purpose of selling "blind-made" products made by persons who are blind exclusively shall carry in stock or sell any merchandise which is not made by blind persons where less than 75% of the direct labor to produce the product was performed by persons who are blind and so identified. Any An organization violating this section shall be ineligible for registration and permit under § 63.1-167 §§ 51.5-101 through 51.105 of the Code of Virginia. The registration and permit of any an organization which has been registered and issued a permit under said statute shall be suspended upon a violation of this section, and it may not be revalidated reregistered as long as such violation continues.

22VAC45-30-50. Labeling.

No goods or articles made in this Commonwealth or elsewhere may be displayed, advertised, offered for sale, or sold in this Commonwealth upon the representation that the same they are made by blind persons who are blind unless such goods or articles are identified as such by a label or symbol prescribed or approved by the department Department for the Blind and Vision Impaired (department). The "Skilcraft" trademark registered by National Industries for the Blind is acceptable by the department as an approved identification.

All such goods shall be so labeled as to disclose the name of the manufacturer and the place of manufacture. Agencies manufacturing "Skilcraft" products approved by National Industries for the Blind may use the "shop identification code number" assigned by National Industries for the Blind in lieu of the name and address of the manufacturer.

22VAC45-30-60. Duration of registrations and permits registration.

All registrations and permits A registration issued under § 63.1-167 §§ 51.5-101 through 51.5-105 of the Code of Virginia and regulations this chapter shall be valid for one year only, but they it may be renewed upon application in writing made submitted to the department not less than 60 days prior to the its expiration of such year. If an application for registration renewal is not made submitted at least 60 days prior to such expiration, the renewal may be withheld for 60 days following such submission of the application.

22VAC45-30-70. Suspension of registration or permit.

Upon receipt of information indicating violation of any of the provisions of § 63.1-167 §§ 51.5-101 through 51.5-105 of the Code of Virginia or of this chapter by any a person, firm, or organization registered and issued a permit, the department Department for the Blind and Vision Impaired may suspend such registration and permit after giving such person, firm, or organization an opportunity, upon not less than 10 days' written notice in writing, to show cause why such registration and permit should not be suspended.

Unless and until such suspension is rescinded, the holder of the permit suspended person, firm, or organization shall desist from the sale or distribution of any goods or and articles made or represented to be made by blind persons who are blind.

22VAC45-30-80. Soliciting prohibited.

The use of a permit Using the registration issued pursuant to § 63.1-167 §§ 51.5-101 through 51.5-105 of the Code of Virginia and this chapter as a means of soliciting contribution of money is expressly forbidden. The registration and permit of any person, firm, or organization found to be so soliciting contributions may be suspended by the department Department for the Blind and Vision Impaired for not more than 90 days for an initial offense and indefinitely for a repeated subsequent offense.

22VAC45-30-90. Grounds for denying registration or permit.

Exploitation of the public by excessive prices, or by indicating or implying that any goods a good or articles are article is being sold on behalf of the department Department for the Blind and Vision Impaired, or that the proceeds will shall accrue to blind people persons who are blind, when such it is not the case true, shall be grounds for denying registration and permit.

22VAC45-30-100. Profit-making statement.

There shall be written The following statement shall appear on the face of every permit a registration issued by the Department for the Blind and Vision Impaired (department) to a business or organization that is essentially engaged in profit making the following statement: "This is a profit making enterprise."

22VAC45-30-110. Applicability of chapter.

This chapter shall not apply to a blind person who is blind who manufactures and sells products of his own labor only, nor to workshops production facilities operated by the department, nor to the manufacturer of products for the Military Resale Program or other U.S. government sales made in accordance with the "Schedule of Blind-made Products" prepared by the General Services Administration, nor to any Lion's Club or other civic organization under a sales contract negotiated with the department for the sale of products manufactured by the workshops operated by the department Department for the Blind and Vision Impaired.

Lions Clubs and other civic organizations engaging in the sale of "blind-made" products not produced by the workshops operated by the department shall comply with § 63.1-167 of the Code of Virginia and this chapter.

No distributor of goods at retail shall be required to register and obtain a permit for the sale of "blind-made" products if the manufacturer or wholesale distributor of such products has registered and obtained a permit pursuant to § 63.1-167 of the Code of Virginia and this chapter, and if such products are labeled and identified as required by § 63.1-167 of the Code of Virginia and this chapter.