TITLE 8. EDUCATION

STATE BOARD OF EDUCATION

Fast-Track Regulation

Title of Regulation: 8VAC20-830. Fee Requirements For Processing Applications (repealing 8VAC20-830-10).

Statutory Authority: §§ 22.1-16 and 22.1-289.010 of the Code of Virginia.

Public Hearing Information: No public hearing is currently scheduled.

Public Comment Deadline: March 25, 2026.

Effective Date: April 9, 2026.

Agency Contact: Jim Chapman, Director of Board Relations, Department of Education, James Monroe Building, 101 North 14th Street, 25th Floor, Richmond, VA 23219, telephone (804) 750-8750, or email jim.chapman@doe.virginia.gov.

Basis: Section 22.1-16 of the Code of Virginia authorizes the State Board of Education to adopt bylaws for its own government and promulgate regulations necessary to carry out its powers and duties and the provisions of Title 22.1 of the Code of Virginia. Section 22.1-289.010 of the Code of Virginia authorizes the board to adopt regulations and schedules for fees to be charged for processing applications for licenses to operate child day programs and family day systems.

Purpose: This action is essential to protecting the health, safety, and welfare of citizens because it allows for the consolidation of regulations governing the application for licensure for child day programs and family day systems and avoids conflicting directions.

Rationale for Using Fast-Track Rulemaking Process: This action is expected to be noncontroversial and therefore appropriate for the fast-track rulemaking process because it follows the establishment of 8VAC20-821, and the fee requirements for processing applications formerly found in 8VAC20-830 will now be found in 8VAC20-821.

Substance: This action repeals Fee Requirements for Processing Applications (8VAC20-830), which was made obsolete by the promulgation of General Procedures for the Licensure of Child Day Programs and Family Day Systems and Background Checks (8VAC20-821).

Issues: The primary advantage of this regulatory change to the public, the agency, the Commonwealth, and the regulated community is that the requirements currently found under 8VAC20-830 will be easier to read, better organized, clearer with respect to responsibilities, and more comprehensive in scope due to the consolidation of three chapters into a single chapter. There are no disadvantages to the public, the agency, the Commonwealth, or the regulated community.

Department of Planning and Budget Economic Impact Analysis:

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 Code of Virginia and Executive Order 19. The analysis presented represents DPB's best estimate of the potential economic impacts as of the date of this analysis.¹

Summary of the Proposed Amendments to Regulation. The State Board of Education (board) seeks to repeal Fee Requirements for Processing Applications (8VAC20-830) as it has been made redundant by a new regulation, General Procedures for Licensure and Background Checks (8VAC20-821).

Background. General Procedures for Licensure and Background Checks (8VAC20-821) concerns the licensure of children day programs and will become effective on February 1, 2026.² Chapter 821 updates and consolidates several other regulations, including Fee Requirements for Processing Applications (8VAC20-830), thereby making the latter regulation redundant. Specifically, the contents of 8VAC20-830 can be found in 8VAC20-821-140 and 8VAC20-821-150, with two modifications. First, 8VAC20-821 replaces tiered licensing for one-year, two-year, or three-year license terms with a standard two-year license term; the fees in 8VAC20-821-150 reflect this change without changing the cost-per-year.³ Second, 8VAC20-821-150 contains two-year license fees for short-term programs that operate for less than 12 weeks of a 12-month period whereas 8VAC20-830-10 contains the same fees for short term programs that operate for less than four months in a 12-month period. The board reports that this difference is not expected to have any substantive impact, since the short term licenses apply to summer programs for which 12-weeks was considered more appropriate than four months.

Estimated Benefits and Costs. Repealing 8VAC20-830 is not expected to have any practical impact on licensed day-care centers or the families of children that utilize the child day centers since its contents have been incorporated into 8VAC20-821, which is expected to become effective before this repeal.

Businesses and Other Entities Affected. Repealing 8VAC20-830 would not directly affect any entities since it is duplicative of 8VAC20-821. The regulations apply to the 1,418 licensed child day centers; 1,356 licensed family day homes; and one licensed family day system in the Commonwealth. The Code of Virginia requires DPB to assess whether an adverse impact may result from the proposed regulation.⁴ An adverse impact is indicated if there is any increase in net cost or reduction in net benefit for any entity, even if the benefits exceed the costs for all entities combined.⁵ As the proposal neither increases cost nor reduces benefit, no adverse impact is indicated.

Small Businesses⁶ Affected.⁷ The proposal does not adversely affect small businesses.

Localities⁸ Affected.⁹ The proposal neither disproportionally affects particular localities nor affects 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 affects neither the use and value of private property nor costs related to the development of real estate.

_____________________________

¹ Section 2.2-4007.04 of the Code of Virginia requires that such economic impact analyses determine the public benefits and costs of the proposed amendments. Further the analysis should include but not be limited to: (1) the projected number of businesses or other entities to whom the proposed regulatory action would apply, (2) the identity of any localities and types of businesses or other entities particularly affected, (3) the projected number of persons and employment positions to be affected, (4) the projected costs to affected businesses or entities to implement or comply with the regulation, and (5) the impact on the use and value of private property.

² See https://townhall.virginia.gov/L/ViewAction.cfm?actionid=5880.

³ The change in license terms has been discussed in the Economic Impact Analysis for the action promulgating 8VAC20-821. See https://townhall.virginia.gov/L/GetFile.cfm?File=93\5880\9793\EIA_DOE_9793_v1.pdf.

⁴ Pursuant to § 2.2-4007.04 D: In the event this economic impact analysis reveals that the proposed regulation would have an adverse economic impact on businesses or would impose a significant adverse economic impact on a locality, business, or entity particularly affected, the Department of Planning and Budget shall advise the Joint Commission on Administrative Rules, the House Committee on Appropriations, and the Senate Committee on Finance. Statute does not define "adverse impact," state whether only Virginia entities should be considered, nor indicate whether an adverse impact results from regulatory requirements mandated by legislation.

⁵ Statute does not define "adverse impact," state whether only Virginia entities should be considered, nor indicate whether an adverse impact results from regulatory requirements mandated by legislation. As a result, DPB has adopted a definition of adverse impact that assesses changes in net costs and benefits for each affected Virginia entity that directly results from discretionary changes to the regulation.

⁶ Pursuant to § 2.2-4007.04, 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."

⁷ If the proposed regulatory action may have an adverse effect on small businesses, § 2.2-4007.04 requires that such economic impact analyses include: (1) an identification and estimate of the number of small businesses subject to the proposed regulation, (2) the projected reporting, recordkeeping, and other administrative costs required for small businesses to comply with the proposed regulation, including the type of professional skills necessary for preparing required reports and other documents, (3) a statement of the probable effect of the proposed regulation on affected small businesses, and (4) a description of any less intrusive or less costly alternative methods of achieving the purpose of the proposed regulation. Additionally, pursuant to § 2.2-4007.1 of the Code of Virginia, if there is a finding that a proposed regulation may have an adverse impact on small business, the Joint Commission on Administrative Rules shall be notified.

⁸ "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.

⁹ Section 2.2-4007.04 defines "particularly affected" as bearing disproportionate material impact.

Agency Response to Economic Impact Analysis: The agency thanks the Department of Planning and Budget for its thorough economic impact analysis.

Summary:

The action repeals Fee Requirements for Processing Applications (8VAC20-830) following the establishment of General Procedures for Licensure and Background Checks (8VAC20-821), which rendered 8VAC20-830-10 obsolete.

TITLE 12. HEALTH

STATE BOARD OF HEALTH

Fast-Track Regulation

Title of Regulation: 12VAC5-217. Regulations of the Patient Level Data System (amending 12VAC5-217-20).

Statutory Authority: §§ 32.1-12 and 32.1-276.6 of the Code of Virginia.

Public Hearing Information: No public hearing is currently scheduled.

Public Comment Deadline: March 25, 2026.

Effective Date: April 9, 2026.

Agency Contact: Kindall Bundy, Policy Analyst, Virginia Department of Health, 109 Governor Street, Richmond, VA 23219, telephone (804) 986-5270, or email kindall.bundy@vdh.virginia.gov.

Basis: Section 32.1-12 of the Code of Virginia authorizes the State Board of Health to make, adopt, promulgate, and enforce regulations. Section 32.1-276.6 of the Code of Virginia requires the board to establish and administer an integrated system for collection and analysis of data used by consumers, employers, providers, purchasers of health care, and state government and requires each inpatient hospital to submit patient-level data to the board.

Purpose: This action is essential to protect the health, safety, and welfare of citizens because the regulation does not reflect current data elements submitted by inpatient hospitals or statutory mandates, therefore burdening the regulated community. Amending the regulation to include statutory mandates, updated data elements, and technical changes for form and style will ensure that the language from the emergency regulation is permanently adopted, that data elements reflect current industry practices, and that the regulation is clear and uniform.

Rationale for Using Fast-Track Rulemaking Process: This action is expected to be noncontroversial and therefore appropriate for the fast-track rulemaking process because it conforms the regulation to statutory mandates and the existing data elements currently submitted by the inpatient hospitals in Virginia. Regulated entities are already submitting the data elements being added to the regulatory text because they are required by federal rules or because the data elements are part of the Uniform Billing Form, which is the standard claim form that hospitals use for all data related to hospital admissions and would be collected even if the board did not require reporting of the data elements to Virginia Health Information (VHI).

Substance: The amendments (i) add codes for the legal status of voluntary or involuntary psychiatric admissions to the data required to be reported to the board; (ii) replace the data element table with a new table consisting of all data elements currently submitted by inpatient hospitals to VHI; and (iii) remove nonregulatory references to the Uniform Billing Form and Manual.

Issues: The primary advantages to the public are the removal of nonregulatory language, the addition of legislative mandates that were not previously incorporated into the regulation, and the addition of data elements currently submitted by inpatient hospitals. The primary advantages to the agency and the Commonwealth are increased clarity of the reporting requirements for inpatient hospitals of patient-level data elements, which may reduce staff time spent reviewing incorrect or incomplete submissions and avoid data resubmissions. There are no disadvantages to the public or the Commonwealth.

Department of Planning and Budget Economic Impact Analysis:

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 Code of Virginia and Executive Order 19. The analysis presented represents DPB's best estimate of the potential economic impacts as of the date of this analysis.¹

Summary of the Proposed Amendments to Regulation. As the result of a 2020 budget mandate, the State Board of Health (board) is proposing to make permanent an emergency regulation that requires inpatient hospitals to report the admission source (legal status) for any individuals meeting the criteria for voluntary or involuntary psychiatric commitment.² The board also now proposes to amend the regulation to reflect the data reporting elements currently submitted by inpatient hospitals to Virginia Health Information (VHI).

Background. Item 307 D.1 of the 2020 Appropriation Act states that:³ Inpatient hospitals shall report the admission source of any individuals meeting the criteria for voluntary or involuntary psychiatric commitment as outlined in § 16.1-338, 16.1-339, 16.1-340.1, 16.1-345, 37.2-805, 37.2-809, or 37.2-904 of the Code of Virginia, to the State Board of Health. The board shall collect and share any and all data regarding the admission source of individuals admitted to inpatient hospitals as a psychiatric patient, pursuant to § 32.1-276.6, Code of Virginia, with the Department of Behavioral Health and Developmental Services. Further, the Act instructed the Virginia Department of Health (VDH) to promulgate an emergency regulation for this purpose.

In response, in an emergency regulation⁴ that became effective on January 17, 2022, the board added an additional category (legal status) to the list of patient level data elements that inpatient hospitals must submit. This category is comprised of seven different possible admission sources, as follows:

1= § 16.1-338 Parental admission of minors < 14 and nonobjecting minors 14 years of age or older

2=§ 16.1-339 Parental admission of objecting minor 14 years of age or older

3=§ 16.1-340.1 Involuntary TDO⁵ (minor)

4=§ 16.1-345 Involuntary commitment (minor)

5=§ 37.2-805 Voluntary admission (adult)

6=§ 37.2-809 Involuntary TDO (adult)

7=§ 37.2-904 Sexually violent predators (prisoners or defendants)

The board is proposing to amend the regulation to make the reporting of legal status permanent. The board also proposes to amend the regulation to reflect the data reporting elements currently submitted by inpatient hospitals to VHI, which would change the numbering and order of the data elements being reported. Section 32.1-276.4 of the Code of Virginia requires that the VDH commissioner negotiate and enter into contracts or agreements with a nonprofit organization for the compilation, storage, analysis, and evaluation of data submitted by health care providers.⁶ In practice, VHI is that nonprofit organization.

Estimated Benefits and Costs. Collecting admission source data for individuals meeting the criteria for psychiatric commitment is beneficial in that it can be used to help produce better-informed public policy. The proposed required reporting does entail some additional staff time for inpatient hospitals. In any case, the requirement is a legislative mandate and is not discretionary for the board. Amending the regulation to reflect the data reporting elements that are submitted by inpatient hospitals to VHI is beneficial in that it improves clarity by reflecting the existing reporting practices. Accordingly, no additional costs are expected.

Businesses and Other Entities Affected. The 102 hospitals that submit patient level data are affected.⁷ The Code of Virginia requires DPB to assess whether an adverse impact may result from the proposed regulation.⁸ An adverse impact is indicated if there is any increase in net cost or reduction in net benefit for any entity, even if the benefits exceed the costs for all entities combined.⁹ No proposed discretionary change increases net cost or reduces net benefit for any entity. Thus, an adverse impact is not indicated.

Small Businesses¹⁰ Affected.¹¹ VDH reports that none of the hospitals qualify as small businesses.

Localities¹² Affected.¹³ The proposed amendments neither disproportionally affect any particular localities, nor affect costs for local governments.

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

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

_____________________________

¹ Section 2.2-4007.04 of the Code of Virginia requires that such economic impact analyses determine the public benefits and costs of the proposed amendments. Further the analysis should include but not be limited to: (1) the projected number of businesses or other entities to whom the proposed regulatory action would apply, (2) the identity of any localities and types of businesses or other entities particularly affected, (3) the projected number of persons and employment positions to be affected, (4) the projected costs to affected businesses or entities to implement or comply with the regulation, and (5) the impact on the use and value of private property.

² See https://townhall.virginia.gov/L/viewmandate.cfm?mandateid=1107.

³ See https://budget.lis.virginia.gov/item/2020/1/HB30/Chapter/1/307/.

⁴ See https://townhall.virginia.gov/L/ViewStage.cfm?stageid=9398.

⁵ TDO stands for temporary detention order.

⁶ See https://law.lis.virginia.gov/vacode/title32.1/chapter7.2/section32.1-276.4/.

⁷ Data source.

⁸ Pursuant to § 2.2-4007.04 D: In the event this economic impact analysis reveals that the proposed regulation would have an adverse economic impact on businesses or would impose a significant adverse economic impact on a locality, business, or entity particularly affected, the Department of Planning and Budget shall advise the Joint Commission on Administrative Rules, the House Committee on Appropriations, and the Senate Committee on Finance. Statute does not define "adverse impact," state whether only Virginia entities should be considered, nor indicate whether an adverse impact results from regulatory requirements mandated by legislation.

⁹ Statute does not define "adverse impact," state whether only Virginia entities should be considered, nor indicate whether an adverse impact results from regulatory requirements mandated by legislation. As a result, DPB has adopted a definition of adverse impact that assesses changes in net costs and benefits for each affected Virginia entity that directly results from discretionary changes to the regulation.

¹⁰ Pursuant to § 2.2-4007.04, 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."

¹¹ If the proposed regulatory action may have an adverse effect on small businesses, § 2.2-4007.04 requires that such economic impact analyses include: (1) an identification and estimate of the number of small businesses subject to the proposed regulation, (2) the projected reporting, recordkeeping, and other administrative costs required for small businesses to comply with the proposed regulation, including the type of professional skills necessary for preparing required reports and other documents, (3) a statement of the probable effect of the proposed regulation on affected small businesses, and (4) a description of any less intrusive or less costly alternative methods of achieving the purpose of the proposed regulation. Additionally, pursuant to § 2.2-4007.1 of the Code of Virginia, if there is a finding that a proposed regulation may have an adverse impact on small business, the Joint Commission on Administrative Rules shall be notified.

¹² "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.

¹³ Section 2.2-4007.04 defines "particularly affected" as bearing disproportionate material impact.

Agency Response to Economic Impact Analysis: The Virginia Department of Health concurs with the economic impact analysis prepared by the Department of Planning and Budget.

Summary:

Item 307 D 1 of Chapter 552 of the 2021 Acts of Assembly, Special Session I, requires inpatient hospitals to report the admission source of any individuals meeting the criteria for voluntary or involuntary psychiatric commitment as outlined in § 16.1-338, 16.1-339, 16.1-340.1, 16.1-345, 37.2-805, 37.2-809, or 37.2-904 of the Code of Virginia to the State Board of Health. The board is required to collect and share such data regarding the admission source of individuals admitted to inpatient hospitals as a psychiatric patient with the Department of Behavioral Health and Developmental Services (DBHDS). The amendments (i) conform the provisions in the regulation to reflect the data reporting elements currently submitted by inpatient hospitals to Virginia Health Information (VHI) and (ii) remove nonregulatory language to conform to 1VAC7-10-40.

12VAC5-217-20. Reporting requirements for patient level data elements.

Every Each inpatient hospital shall submit, in an electronic data format, a complete filing of each patient level data element listed in the table in this section for each hospital inpatient, including a separate record for each infant, if applicable. Most of these data elements are currently collected from a Uniform Billing Form located in the latest publication of the Uniform Billing Manual prepared by the National Uniform Billing Committee. The Uniform Billing Form and the Uniform Billing Manual are located on the National Uniform Billing Committee's website at www.nubc.org. The Uniform Billing Manual provides a detailed field description and any special instruction pertaining to that element. An asterisk (*) indicates when the required data element is either not on the billing form or in the Uniform Billing Manual. The instructions provided under that particular data element should then be followed. Inpatient hospitals that submit patient level data directly to the board or the nonprofit organization shall submit it in an electronic data format.

TITLE 18. PROFESSIONAL AND OCCUPATIONAL LICENSING

BOARD OF DENTISTRY

Final Regulation

Title of Regulation: 18VAC60-21. Regulations Governing the Practice of Dentistry (amending 18VAC60-21-10, 18VAC60-21-60; adding 18VAC60-21-165).

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

Effective Date: March 25, 2026.

Agency Contact: Jamie Sacksteder, Executive Director, Board of Dentistry, 9960 Mayland Drive, Suite 300, Henrico, VA 23233, telephone (804) 367-4581, fax (804) 698-4266, or email jamie.sacksteder@dhp.virginia.gov.

Summary:

Pursuant to Chapters 37 and 220 of the 2020 Acts of Assembly, the amendments (i) include in definitions aspects of digital scan technician practice as used in teledentistry, (ii) establish requirements for the training and practice of digital scan technicians, and (iii) provide the responsibilities, including documentation, of a dentist providing direction to a digital scan technician.

Summary of Public Comments and Agency's Response: A summary of comments made by the public and the agency's response may be obtained from the promulgating agency or viewed at the office of the Registrar of Regulations.

18VAC60-21-10. Definitions.

A. The following words and terms when used in this chapter shall have the meanings ascribed to them in § 54.1-2700 of the Code of Virginia:

"Appliance"

"Board"

"Dental hygiene"

"Dental hygienist"

"Dentist"

"Dentistry"

"Digital scan"

"Digital scan technician"

"Digital work order"

"License"

"Maxillofacial"

"Oral and maxillofacial surgeon"

"Teledentistry"

B. The following words and terms when used in this chapter shall have the following meanings unless the context clearly indicates otherwise:

"AAOMS" means the American Association of Oral and Maxillofacial Surgeons.

"ADA" means the American Dental Association.

"Advertising" means a representation or other notice given to the public or members thereof, directly or indirectly, by a dentist on behalf of himself the dentist, the dentist's facility, the dentist's partner or associate, or any dentist affiliated with the dentist or the dentist's facility by any means or method for the purpose of inducing the purchase, sale, or use of dental methods, services, treatments, operations, procedures, or products, or to promote continued or increased use of such dental methods, treatments, operations, procedures, or products.

"CODA" means the Commission on Dental Accreditation of the American Dental Association.

"Dental assistant I" means any unlicensed person under the direction of a dentist or a dental hygienist who renders assistance for services provided to the patient as authorized under this chapter but shall does not include an individual serving in purely an administrative, secretarial, or clerical capacity.

"Dental assistant II" means a person under the direction and direct supervision of a dentist who is registered by the board to perform reversible, intraoral procedures as specified in 18VAC60-21-150 and 18VAC60-21-160.

"Mobile dental facility" means a self-contained unit in which dentistry is practiced that is not confined to a single building and can be transported from one location to another.

"Nonsurgical laser" means a laser that is not capable of cutting or removing hard tissue, soft tissue, or tooth structure.

"Portable dental operation" means a nonfacility in which dental equipment used in the practice of dentistry is transported to and utilized on a temporary basis at an out-of-office location, including patient homes, schools, nursing homes, or other institutions.

"Radiographs" means intraoral and extraoral radiographic images of hard and soft tissues used for purposes of diagnosis.

C. The following words and terms relating to supervision as used in this chapter shall have the following meanings unless the context clearly indicates otherwise:

"Direct supervision" means that the dentist examines the patient and records diagnostic findings prior to delegating restorative or prosthetic treatment and related services to a dental assistant II for completion the same day or at a later date. The dentist prepares the tooth to be restored and remains immediately available in the office to the dental assistant II for guidance or assistance during the delivery of treatment and related services. The dentist examines the patient to evaluate the treatment and services before the patient is dismissed.

"Direction" means the level of supervision (i.e., immediate, direct, indirect, or general) that a dentist is required to exercise with a dental hygienist, a dental assistant I, a dental assistant II, or a certified registered nurse anesthetist or the level of supervision that a dental hygienist is required to exercise with a dental assistant to direct and oversee the delivery of treatment and related services. For the purpose of supervision of a digital scan technician, "direction" means the written or electronic instructions provided by a dentist licensed in Virginia to a digital scan technician in the form of a work order for a digital scan of a patient and the dentist's specified availability to consult with the a digital scan technician while the scan is being taken.

"General supervision" means that a dentist completes a periodic comprehensive examination of the patient and issues a written order for hygiene treatment that states the specific services to be provided by a dental hygienist during one or more subsequent appointments when the dentist may or may not be present. Issuance of the order authorizes the dental hygienist to supervise a dental assistant performing duties delegable to dental assistants I.

"Immediate supervision" means the dentist is in the operatory to supervise the administration of sedation or provision of treatment.

"Indirect supervision" means the dentist examines the patient at some point during the appointment and is continuously present in the office to advise and assist a dental hygienist, a dental assistant, or a certified registered nurse anesthetist who is (i) delivering hygiene treatment, (ii) preparing the patient for examination or treatment by the dentist, (iii) preparing the patient for dismissal following treatment, or (iv) administering topical local anesthetic, sedation, or anesthesia as authorized by law or regulation.

"Remote supervision" means that a supervising dentist is accessible and available for communication and consultation with a dental hygienist during the delivery of dental hygiene services, but such dentist may not have conducted an initial examination of the patients who are to be seen and treated by the dental hygienist and may not be present with the dental hygienist when dental hygiene services are being provided. For the purpose of practice by a public health dental hygienist, "remote supervision" means that a public health dentist has regular, periodic communications with a public health dental hygienist regarding patient treatment, but such dentist may not have conducted an initial examination of the patients who are to be seen and treated by the dental hygienist and may not be present with the dental hygienist when dental hygiene services are being provided. For the purpose of supervision of a digital scan technician, remote supervision means that a directing dentist is accessible and available for communication and consultation in the practice of teledentistry.

D. The following words and terms relating to sedation or anesthesia as used in this chapter shall have the following meanings unless the context clearly indicates otherwise:

"Analgesia" means the diminution or elimination of pain.

"Continual" or "continually" means repeated regularly and frequently in a steady succession.

"Continuous" or "continuously" means prolonged without any interruption at any time.

"Deep sedation" means a drug-induced depression of consciousness during which patients cannot be easily aroused but respond purposefully following repeated or painful stimulation. Reflex withdrawal from a painful stimulus is not considered a purposeful response. The ability to independently maintain ventilatory function may be impaired. Patients may require assistance in maintaining a patent airway, and spontaneous ventilation may be inadequate. Cardiovascular function is usually maintained.

"General anesthesia" means a drug-induced loss of consciousness during which patients are not arousable, even by painful stimulation. The ability to independently maintain ventilator function is often impaired. Patients often require assistance in maintaining a patent airway, and positive pressure ventilation may be required because of depressed spontaneous ventilation or drug-induced depression of neuromuscular function. Cardiovascular function may be impaired.

"Inhalation" means a technique of administration in which a gaseous or volatile agent, including nitrous oxide, is introduced into the pulmonary tree and whose primary effect is due to absorption through the pulmonary bed.

"Inhalation analgesia" means the inhalation of nitrous oxide and oxygen to produce a state of reduced sensation of pain with minimal alteration of consciousness.

"Local anesthesia" means the elimination of sensation, especially pain, in one part of the body by the topical application or regional injection of a drug.

"Minimal sedation" means a drug-induced state during which patients respond normally to verbal commands. Although cognitive function and physical coordination may be impaired, airway reflexes and ventilator and cardiovascular functions are unaffected. Minimal sedation includes the diminution or elimination of anxiety through the use of pharmacological agents in a dosage that does not cause depression of consciousness and includes "inhalation analgesia" when used in combination with any such sedating agent administered prior to or during a procedure.

"Moderate sedation" means a drug-induced depression of consciousness, during which patients respond purposefully to verbal commands, either alone or accompanied by light tactile stimulation. Reflex withdrawal from a painful stimulus is not considered a purposeful response. No interventions are required to maintain a patent airway, and spontaneous ventilation is adequate. Cardiovascular function is usually maintained.

"Monitoring" means to observe, interpret, assess, and record appropriate physiologic functions of the body during sedative procedures and general anesthesia appropriate to the level of sedation as provided in Part VII (18VAC60-21-260 et seq.) of this chapter.

"Parenteral" means a technique of administration in which the drug bypasses the gastrointestinal tract (i.e., intramuscular, intravenous, intranasal, submucosal, subcutaneous, or intraocular).

"Provide" means, in the context of regulations for moderate sedation or deep sedation or general anesthesia, to supply, give, or issue sedating medications. A dentist who does not hold the applicable permit cannot be the provider of moderate sedation or deep sedation or general anesthesia.

"Titration" means the incremental increase in drug dosage to a level that provides the optimal therapeutic effect of sedation.

"Topical oral anesthetic" means any drug, available in creams, ointments, aerosols, sprays, lotions, or jellies, that can be used orally for the purpose of rendering the oral cavity insensitive to pain without affecting consciousness.

"Vital signs" means clinical measurements, specifically pulse rate, respiration rate, and blood pressure, that indicate the state of a patient's essential body functions.

18VAC60-21-60. General responsibilities to patients.

A. A dentist is responsible for conducting a dentistry practice in a manner that safeguards the safety, health, and welfare of patients and the public by:

1. Maintaining a safe and sanitary practice.

2. Consulting with or referring patients to other practitioners with specialized knowledge, skills, and experience when needed to safeguard and advance the health of the patient.

3. Treating according to the patient's desires only to the extent that such treatment is within the bounds of accepted treatment and only after the patient has been given a treatment recommendation and an explanation of the acceptable alternatives.

4. Only delegating patient care and exposure of dental x-rays or taking of digital scans to qualified, properly trained and supervised personnel as authorized in Part IV (18VAC60-21-110 et seq.) of this chapter.

5. Giving patients at least 30 days written notice of a decision to terminate the dentist-patient relationship.

6. Knowing the signs of abuse and neglect and reporting suspected cases to the proper authorities consistent with state law.

7. Accurately representing to a patient and the public the materials or methods and techniques to be used in treatment.

B. A dentist is responsible for conducting financial responsibilities to patients and third-party payers in an ethical and honest manner by:

1. Providing customary fees and representing all fees being charged clearly and accurately.

2. Not exploiting the dentist-patient relationship for personal gain related to nondental transactions.

18VAC60-21-165. Delegation to digital scan technicians for use in teledentistry.

A. Any digital scan technician A dentist who delegates the taking intraoral digital scans for any appliance, prothesis, crown, or any other permanent or removable dental device for which a digital work order is required must complete of a digital scan by a digital scan technician shall ensure that the technician has a certificate of completion from a training program approved by the board. Training certification may be earned by verifiable participation in any course that is relevant to digital scanning that includes programs by any of the following sponsors:

1. Any sponsor listed in subsection C of 18VAC60-21-250; or Training in prepping the patient, taking and evaluating the quality of a digital scan, safety protocols, and dental terminology given by a sponsor approved for continuing education as set forth in 18VAC60-21-250 C; and

2. A In-office training program certified by the manufacturer on the proper operation of the digital scanner that includes orientation to the process and protocols for taking and evaluating digital scans for fabrication of a restoration or an appliance.

B. The dentist under whom who directs a digital scan technician is directed to take digital scans shall establish written:

1. Written or electronic protocols for: 1. The the practice of teledentistry in compliance with subsection C of § 54.1-2711 B and C of the Code of Virginia and any other provisions required by the board; and;

2. The Written or electronic protocols and procedures for the performance of digital scans by digital scan technicians in compliance with subsection B of § 54.1-2708.5 B of the Code of Virginia.; and

3. A written or electronic work order for a digital scan that includes the required components of a dental work order.

C. The dentist under whom who directs a digital scan technician is directed to take digital scans shall be:

1. Licensed by the board to practice dentistry in the Commonwealth;

2. Accessible and available for communication and consultation with the digital scan technician at all times during the patient interaction;

3. Responsible for ensuring that the digital scan technician has a program of training approved by the board for such purpose; and

4. 3. Ultimately responsible for determining communicating with the patient or the patient's representative the specific treatment the patient will receive, which aspects of treatment will be delegated to qualified personnel, and the direction required for such treatment, in accordance with this chapter and the Code of Virginia.

D. The directing dentist shall make available to the board any requested:

1. Protocols and procedures as specified in subsection B of this section;

2. Evidence that a the digital scan technician has complied with the training requirements of the board subsection A of this section; and

3. All written Written or electronic work orders used for digital scans.

TITLE 18. PROFESSIONAL AND OCCUPATIONAL LICENSING

BOARD OF MEDICINE

Fast-Track Regulation

Title of Regulation: 18VAC85-50. Regulations Governing the Practice of Physician Assistants (amending 18VAC85-50-35, 18VAC85-50-56; adding 18VAC85-50-62).

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

Public Hearing Information: No public hearing is currently scheduled.

Public Comment Deadline: March 25, 2026.

Effective Date: April 9, 2026.

Agency Contact: Erin Barrett, Director of Legislative and Regulatory Affairs, Department of Health Professions, Perimeter Center, 9960 Mayland Drive, Suite 300, Henrico, VA 23233, telephone (804) 750-3912, fax (804) 915-0382, or email erin.barrett@dhp.virginia.gov.

Basis: Section 54.1-2400 of the Code of Virginia authorizes the Board of Medicine to promulgate regulations to effectively administer the regulatory system.

Purpose: This action is essential to protect the health, safety, and welfare of citizens because it allows physician assistants to reinstate a lapsed license in a more efficient manner, theoretically leading to more physician assistants available to treat patients.

Rationale for Using Fast-Track Rulemaking Process: This action is expected to be noncontroversial and therefore appropriate for the fast-track rulemaking process because it reduces reinstatement requirements and creates a reinstatement process consistent with other license types of the agency.

Substance: The amendments (i) provide a fee for reinstatement of a physician assistant license; (ii) remove the requirement that a physician assistant with a lapsed license make a new application for licensure; (iii) require physician assistants with licenses lapsed for two years or less to pay a reinstatement fee and apply for renewal; and (iv) require physician assistants with licenses lapsed for more than two years to pay a reinstatement fee and provide evidence of current certification by the National Commission of Certification of Physician Assistants (NCCPA), which is currently required for initial licensure and renewal of a physician assistant license.

Issues: There are no primary advantages or disadvantages to the public. There are no primary advantages or disadvantages to the agency or the Commonwealth.

Department of Planning and Budget Economic Impact Analysis:

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 Code of Virginia and Executive Order 19. The analysis presented represents DPB's best estimate of the potential economic impacts as of the date of this analysis.¹

Summary of the Proposed Amendments to Regulation. The Board of Medicine (board) proposes to create late renewal and reinstatement processes for physician assistants with lapsed licenses.

Background. Currently, a physician assistant whose license has lapsed is required to reapply for licensure as if they have never been licensed by the board. This reapplication process for a lapsed license is the same as the initial application process, wherein the applicant must complete an application for initial licensure, pay the initial application fee ($130), document successful completion of a qualifying educational program and the passage of the certifying examination by the National Commission on Certification of Physician Assistants (NCCPA). This process contrasts with other professions for which there is a simpler process for addressing late renewals and the reinstatement of lapsed licenses. In this action, the board proposes to create two processes: (i) a late renewal process for physician assistant licenses that have not been lapsed for more than one renewal cycle (i.e., two years), and (ii) a reinstatement process for licenses that have been lapsed for more than two years.

Estimated Benefits and Costs. Both of the proposed processes would be administratively less burdensome for the applicant and the board. The applicant would not have to document completion of a qualifying educational program, as the board would already have that information from the initial licensure application. Furthermore, the late renewal and reinstatement application forms are expected to be simpler than the form for initial application. Finally, late renewal applicants would not be required to provide evidence of current certification by NCCPA. The reinstatement applicants, however, would be required to provide evidence of this certification, just as they are required to under the current rules. The Department of Health Professions (DHP) does not have an estimate of the magnitude of the expected administrative cost savings. A late renewal fee of $50 or a reinstatement fee of $180 would also be assessed. Both late renewal and reinstatement applicants would have to pay an additional $50 compared to having to pay the $130 initial application fee under the current regulation. The board reports that the higher fees are intended to incentivize individuals to renew their licenses within the renewal period. DHP also does not have an estimate on how many late renewal and reinstatement applications may be received.

Businesses and Other Entities Affected. According to DHP, there are currently 7,196 physician assistants licensed in the Commonwealth. However, the proposed amendments would only affect those physician assistants whose license has lapsed. There is no estimate on the number of late renewal and reinstatement applications that may be received under the proposed new pathways. No regulant appears to be disproportionately affected. The Code of Virginia requires DPB to assess whether an adverse impact may result from the proposed regulation.² An adverse impact is indicated if there is any increase in net cost or reduction in net benefit for any entity, even if the benefits exceed the costs for all entities combined.³ Whether an adverse impact on the physician assistants who use these new processes is indicated is unknown but appears unlikely.

Small Businesses⁴ Affected.⁵ The proposed amendments do not appear to adversely affect small businesses.

Localities⁶ Affected.⁷ The proposed amendments do not introduce costs for localities.

Projected Impact on Employment. The proposed amendments would make it easier for physician assistants with lapsed licenses to regain licensure for a small cost (i.e., $50 in additional fees). This should have a positive impact on the supply of physician assistants but whether the expected impact is significant and whether it would affect total employment are not known.

Effects on the Use and Value of Private Property. The proposed pathways to regain licensure should not have a direct impact on the use and value of private property unless the applicant owns a medical practice. No impact on real estate development costs is expected.

_____________________________

¹ Section 2.2-4007.04 of the Code of Virginia requires that such economic impact analyses determine the public benefits and costs of the proposed amendments. Further the analysis should include but not be limited to: (1) the projected number of businesses or other entities to whom the proposed regulatory action would apply, (2) the identity of any localities and types of businesses or other entities particularly affected, (3) the projected number of persons and employment positions to be affected, (4) the projected costs to affected businesses or entities to implement or comply with the regulation, and (5) the impact on the use and value of private property.

² Pursuant to § 2.2-4007.04 D: In the event this economic impact analysis reveals that the proposed regulation would have an adverse economic impact on businesses or would impose a significant adverse economic impact on a locality, business, or entity particularly affected, the Department of Planning and Budget shall advise the Joint Commission on Administrative Rules, the House Committee on Appropriations, and the Senate Committee on Finance. Statute does not define "adverse impact," state whether only Virginia entities should be considered, nor indicate whether an adverse impact results from regulatory requirements mandated by legislation.

³ Statute does not define "adverse impact," state whether only Virginia entities should be considered, nor indicate whether an adverse impact results from regulatory requirements mandated by legislation. As a result, DPB has adopted a definition of adverse impact that assesses changes in net costs and benefits for each affected Virginia entity that directly results from discretionary changes to the regulation.

⁴ Pursuant to § 2.2-4007.04, 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."

⁵ If the proposed regulatory action may have an adverse effect on small businesses, § 2.2-4007.04 requires that such economic impact analyses include: (1) an identification and estimate of the number of small businesses subject to the proposed regulation, (2) the projected reporting, recordkeeping, and other administrative costs required for small businesses to comply with the proposed regulation, including the type of professional skills necessary for preparing required reports and other documents, (3) a statement of the probable effect of the proposed regulation on affected small businesses, and (4) a description of any less intrusive or less costly alternative methods of achieving the purpose of the proposed regulation. Additionally, pursuant to § 2.2-4007.1 of the Code of Virginia, if there is a finding that a proposed regulation may have an adverse impact on small business, the Joint Commission on Administrative Rules shall be notified.

⁶ "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.

⁷ Section 2.2-4007.04 defines "particularly affected" as bearing disproportionate material impact.

Agency Response to Economic Impact Analysis: The Board of Medicine concurs with the economic impact analysis prepared by the Department of Planning and Budget.

Summary:

The amendments provide a reinstatement pathway for physician assistants who allow a license to lapse. Specifically, the action (i) adds a fee for reinstatement of a physician assistant license, (ii) removes the requirement that a physician assistant with a lapsed license make a new application for licensure, and (iii) sets out a reinstatement process for physician assistants with lapsed licenses.

18VAC85-50-35. Fees.

Unless otherwise provided, the following fees shall not be refundable:

1. The initial application fee for a license, payable at the time application is filed, shall be $130.

2. The biennial fee for renewal of an active license shall be $135 and for renewal of an inactive license shall be $70, payable in each odd-numbered year in the birth month of the licensee.

3. The additional fee for late renewal of licensure within one renewal cycle shall be $50.

4. A restricted volunteer license issued pursuant to § 54.1-2951.3 of the Code of Virginia shall expire 12 months from the date of issuance and may be renewed without charge by receipt of a renewal application that verifies that the physician assistant continues to comply with provisions of § 54.1-2951.3 of the Code of Virginia.

5. The fee for reinstatement of a license pursuant to § 54.1-2408.2 of the Code of Virginia shall be $2,000.

6. The fee for reinstatement of a license that has been expired for a period of two years or more shall be $180.

7. The fee for a duplicate license shall be $5.00, and the fee for a duplicate wall certificate shall be $15.

7. 8. The handling fee for a returned check or a dishonored credit card or debit card shall be $50.

8. 9. The fee for a letter of good standing or verification to another jurisdiction shall be $10.

9. 10. The fee for an application or for the biennial renewal of a restricted volunteer license pursuant to 18VAC85-50-61 shall be $35, due in the licensee's birth month. An additional fee for late renewal of licensure shall be $15 for each renewal cycle.

18VAC85-50-56. Renewal of license.

A. Every licensed physician assistant intending to continue to practice shall biennially renew the license in each odd numbered year in the licensee's birth month by:

1. Returning the renewal form and fee as prescribed by the board; and

2. Verifying compliance with continuing medical education standards established by the NCCPA.

B. No physician assistant who allows a an NCCPA certification to lapse shall be considered licensed by the board. Any such physician assistant who proposes to resume practice shall make a new application for licensure within two years or fewer shall apply for renewal and pay the late fee specified in 18VAC85-50-35. A physician assistant shall apply for reinstatement and pay the associated fee specified in 18VAC85-50-35 if the license has lapsed for more than two years.

18VAC85-50-62. Reinstatement.

A. A physician assistant whose license is lapsed for a period of two years or less may reinstate the license by payment of the renewal and late fees as set forth in 18VAC85-50-35.

B. A physician assistant whose license is lapsed for a period of more than two years may apply for reinstatement and shall submit:

1. A completed application package;

2. The fee specified in 18VAC85-50-35; and

3. Evidence of current certification by NCCPA.

TITLE 18. PROFESSIONAL AND OCCUPATIONAL LICENSING

BOARD OF PHARMACY

Fast-Track Regulation

Title of Regulation: 18VAC110-20. Regulations Governing the Practice of Pharmacy (adding 18VAC110-20-810).

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

Public Hearing Information: No public hearing is currently scheduled.

Public Comment Deadline: March 25, 2026.

Effective Date: April 9, 2026.

Agency Contact: Caroline Juran, RPh, Executive Director, Board of Pharmacy, 9960 Mayland Drive, Suite 300, Richmond, VA 23233-1463, telephone (804) 367-4456, fax (804) 527-4472, or email caroline.juran@dhp.virginia.gov.

Basis: Section 54.1-2400 of the Code of Virginia authorizes the Board of Pharmacy to promulgate regulations to effectively administer the regulatory system.

Purpose: This action protects the public welfare by ensuring that the laboratories serving pharmaceutical processors maintain appropriate testing and organizational standards.

Rationale for Using Fast-Track Rulemaking Process: This action is considered noncontroversial and therefore appropriate for the fast-track rulemaking process because it adopts standards previously in existence in Regulations Governing Pharmaceutical Processors (18VAC110-60).

Substance: This action adds a new section, 18VAC110-20-810, to replace a previously repealed section regarding requirements of laboratories that test products for pharmaceutical processors. Specifically, the action sets out requirements regarding (i) organization and organizational independence, (ii) training of certain employees, (iii) obtaining a controlled substances registration from the board, (iv) laboratory accreditation, and (v) compliance with a transfer protocol for transporting cannabis.

Issues: The primary advantage to the public is ensuring safety in operation of the laboratories providing analytics and testing for cannabis products. There are no disadvantages to the public. There are no primary advantages or disadvantages to the agency or the Commonwealth.

Department of Planning and Budget Economic Impact Analysis:

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 Code of Virginia and Executive Order 19. The analysis presented represents DPB's best estimate of the potential economic impacts as of the date of this analysis.¹

Summary of the Proposed Amendments to Regulation. To fulfil a statutory requirement, the Board of Pharmacy (board) proposes to add a section on requirements for laboratories that handle testing or analyzing cannabis products for a pharmaceutical processor. The proposed language is nearly identical to current regulatory language that falls under the Virginia Cannabis Control Authority (VCCA).

Background. Pursuant to Chapters 740 and 773 of the 2023 General Assembly, regulations of the Virginia pharmaceutical processor programs moved from this Board to the VCCA as of January 1, 2024. As a result, the board repealed all regulations relating to the pharmaceutical processor program because the board no longer had regulatory jurisdiction over the program. It was later realized, however, that § 4.1-1602 of the Code of Virginia still requires any laboratory testing products for pharmaceutical processors to obtain a controlled substances registration from the board and comply with quality standards established by the Board of Pharmacy in regulation. Accordingly, the board proposes to restore the quality standards that were previously in 18VAC110-60-300 A; these requirements would be added in 18VAC110-20-810. However, as these requirements are already in 3VAC10-60-20 A, which falls under the VCCA, the proposed addition would have no practical impact. The only difference between the proposed text and the VCCA regulation would be to direct the requirements at laboratories providing the services rather than at pharmaceutical processors.

Estimated Benefits and Costs. The proposed change would meet the requirements of § 4.1-1602 of the Code of Virginia. As these requirements are already in place under a different regulation, the proposed changes would not create any new costs or benefits.

Businesses and Other Entities Affected. The proposed change would meet the requirements of 4.1-1602 of the Code of Virginia. The Code of Virginia requires DPB to assess whether an adverse impact may result from the proposed regulation.² An adverse impact is indicated if there is any increase in net cost or reduction in net benefit for any entity, even if the benefits exceed the costs for all entities combined.³ Since the proposed changes do not change current statutory or regulatory requirements, no adverse impact is indicated.

Small Businesses⁴ Affected.⁵ The proposed amendments do not adversely affect small businesses.

Localities⁶ Affected.⁷ The proposed amendments do not disproportionately affect particular localities or affect costs for local governments.

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

Effects on the Use and Value of Private Property. The proposed amendments affect neither the use and value of private property nor real estate development costs.

_____________________________

¹ Section 2.2-4007.04 of the Code of Virginia requires that such economic impact analyses determine the public benefits and costs of the proposed amendments. Further the analysis should include but not be limited to: (1) the projected number of businesses or other entities to whom the proposed regulatory action would apply, (2) the identity of any localities and types of businesses or other entities particularly affected, (3) the projected number of persons and employment positions to be affected, (4) the projected costs to affected businesses or entities to implement or comply with the regulation, and (5) the impact on the use and value of private property.

² Pursuant to § 2.2-4007.04 D: In the event this economic impact analysis reveals that the proposed regulation would have an adverse economic impact on businesses or would impose a significant adverse economic impact on a locality, business, or entity particularly affected, the Department of Planning and Budget shall advise the Joint Commission on Administrative Rules, the House Committee on Appropriations, and the Senate Committee on Finance. Statute does not define "adverse impact," state whether only Virginia entities should be considered, nor indicate whether an adverse impact results from regulatory requirements mandated by legislation.

³ Statute does not define "adverse impact," state whether only Virginia entities should be considered, nor indicate whether an adverse impact results from regulatory requirements mandated by legislation. As a result, DPB has adopted a definition of adverse impact that assesses changes in net costs and benefits for each affected Virginia entity that directly results from discretionary changes to the regulation.

⁴ Pursuant to § 2.2-4007.04, 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."

⁵ If the proposed regulatory action may have an adverse effect on small businesses, § 2.2-4007.04 requires that such economic impact analyses include: (1) an identification and estimate of the number of small businesses subject to the proposed regulation, (2) the projected reporting, recordkeeping, and other administrative costs required for small businesses to comply with the proposed regulation, including the type of professional skills necessary for preparing required reports and other documents, (3) a statement of the probable effect of the proposed regulation on affected small businesses, and (4) a description of any less intrusive or less costly alternative methods of achieving the purpose of the proposed regulation. Additionally, pursuant to § 2.2-4007.1 of the Code of Virginia, if there is a finding that a proposed regulation may have an adverse impact on small business, the Joint Commission on Administrative Rules shall be notified.

⁶ "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.

⁷ Section 2.2-4007.04 defines "particularly affected" as bearing disproportionate material impact.

Agency Response to Economic Impact Analysis: The Board of Pharmacy concurs with the economic impact analysis prepared by the Department of Planning and Budget.

Summary:

Pursuant to § 4.1-1602 of the Code of Virginia, any laboratory testing products for pharmaceutical processors must obtain a controlled substances registration from the Board of Pharmacy and comply with quality standards established by the board. The amendments establish laboratory requirements, including (i) independence from conflict of interest, (ii) employee qualification, (iii) certification, (iv) accreditation in testing and calibration, and (v) transportation protocol.

18VAC110-20-810. Laboratory requirements for pharmaceutical processors.

A laboratory handling, testing, or analyzing cannabis products for a pharmaceutical processor shall:

1. Ensure independence from all other persons involved in the cannabis industry in Virginia, which shall mean that no person with a direct or indirect interest in the laboratory shall have a direct or indirect financial interest in a pharmacist, pharmaceutical processor, cannabis dispensing facility, certifying practitioner, or any other entity that may benefit from the production, manufacture, dispensing, sale, purchase, or use of cannabis products.

2. Employ at least one person to oversee and be responsible for the laboratory testing who has earned from a college or university accredited by a national or regional certifying authority at least (i) a master's degree in chemical or biological sciences and a minimum of two years of post-degree laboratory experience or (ii) a bachelor's degree in chemical or biological sciences and a minimum of four years of post-degree laboratory experience.

3. Obtain a controlled substances registration certificate pursuant to § 54.1-3423 of the Code of Virginia authorizing the testing of cannabis products.

4. Provide proof to the board of accreditation in testing and calibration in accordance with the most current version of the International Standard for Organization and the ISO/IEC 17025 or proof that the laboratory has applied for accreditation in testing and calibration in the most current version of ISO/IEC 17025. Any testing and calibration method utilized to perform a cannabis-related analysis for pharmaceutical processors shall be in accordance with the laboratory's ISO/IEC 17025 accreditation. The accrediting body shall be recognized by International Laboratory Accreditation Cooperation.

a. A laboratory applying for authorization to provide cannabis-related analytical tests for pharmaceutical processors shall receive ISO/IEC 17025 accreditation within two years from the date the laboratory applied for ISO/IEC 17025 accreditation. A laboratory may request and the board may grant for good cause shown additional time for the laboratory to receive ISO/IEC 17025 accreditation.

b. A laboratory shall send proof of ISO/IEC 17025 accreditation to the board for cannabis-related analytical test methods for pharmaceutical processors for which it has received ISO/IEC 17025 accreditation no later than five business days after the date on which the accreditation was received.

c. A laboratory may use nonaccredited analytical test methods as long as the laboratory has commenced an application for ISO/IEC 17025 accreditation for analytical test methods for cannabis-related analysis for pharmaceutical processors. No laboratory shall use nonaccredited analytical test methods for cannabis-related analysis for pharmaceutical processors if it has applied for and has not received ISO/IEC 17025 accreditation within two years. The laboratory may request and the board may grant for good cause shown additional time for the laboratory to utilize nonaccredited analytical test methods for cannabis-related analysis.

d. At such time that a laboratory loses its ISO/IEC 17025 accreditation for any cannabis-related analytical test methods for pharmaceutical processors, the laboratory shall inform the board within 24 hours. The laboratory shall immediately stop handling, testing, or analyzing cannabis for pharmaceutical processors.

5. Comply with a transportation protocol for transporting cannabis or cannabis products to or from the laboratory or to or from pharmaceutical processors.

TITLE 18. PROFESSIONAL AND OCCUPATIONAL LICENSING

BOARD OF PHYSICAL THERAPY

Fast-Track Regulation

Title of Regulation: 18VAC112-20. Regulations Governing the Practice of Physical Therapy (amending 18VAC112-20-65).

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

Public Hearing Information: No public hearing is currently scheduled.

Public Comment Deadline: March 25, 2026.

Effective Date: April 9, 2026.

Agency Contact: Corie Tillman Wolf, Executive Director, Board of Physical Therapy, 9960 Mayland Drive, Suite 300, Henrico, VA 23233, telephone (804) 367-4674, fax (804) 527-4413, or email ptboard@dhp.virginia.gov.

Basis: Section 54.1-2400 of the Code of Virginia authorizes the Board of Physical Therapy to promulgate regulations to effectively administer the regulatory system.

Purpose: This action protects public health by bringing Virginia into compliance with the Physical Therapy Licensure Compact, avoiding a loss of access to health care that the compact was intended to provide. Both physical therapists practicing in Virginia under a compact privilege and those practitioner's patients would be harmed by the inability of compact privilege practitioners to continue practicing.

Rationale for Using Fast-Track Rulemaking Process: This action is noncontroversial and appropriate for the fast-track rulemaking process because the amendments align Virginia with national standards as required by the compact Virginia has entered. The amendments will not affect the licensure process for a vast majority of applicants.

Substance: The amendments remove the acceptance of any examination accepted by another state or Canadian province for licensure by endorsement applicants. Compact Commission rules require that states only accept the National Physical Therapy Examination for licensure; therefore, neither a state examination nor the Physiotherapy Competency Exam accepted by Canadian provinces may be accepted to license physical therapists in Virginia.

Issues: The primary advantage to the public is that Virginia will remain in compliance with the Physical Therapy Licensure Compact and can continue to provide practitioners from other states a compact privilege to work in Virginia. There are no disadvantages to the public. There are no primary advantages or disadvantages to the agency or the Commonwealth.

Department of Planning and Budget Economic Impact Analysis:

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 Code of Virginia and Executive Order 19. The analysis presented represents DPB's best estimate of the potential economic impacts as of the date of this analysis.¹

Summary of the Proposed Amendments to Regulation. The Board of Physical Therapy (board) is proposing to amend Regulations Governing the Practice of Physical Therapy (18VAC112-20) to indicate that the only accepted examination for licensure as a physical therapist or physical therapist assistant is the National Physical Therapy Examination (NPTE).²

Background. The board initiated a periodic review for 18VAC112-20 in 2018. One of the changes resulting from that periodic review was an amendment to allow licensed physical therapists and physical therapist assistants to become licensed in Virginia via licensure by endorsement by documenting passage of an examination required by another state or Canadian province. At that time, Canadian jurisdictions and Michigan allowed passage of the Physiotherapy Competency Exam instead of the NPTE. The regulatory changes stemming from the periodic review became final on April 30, 2021. These changes, which allowed licensure via endorsement following passage of the Physiotherapy Competency Exam, inadvertently conflicted with state law. More specifically, the conflict results from the Physical Therapy Licensure Compact (compact), which the Commonwealth entered into pursuant to Chapter 300 of the 2019 Acts of Assembly. Under the compact, physical therapists and physical therapist assistants licensed in a participating state can legally practice in other participating states without obtaining additional licenses from those other states. The legislation also added § 54.1-3495 of the Code of Virginia, which in part states that "Any rule that has been previously adopted by the Commission shall have the full force and effect of law on the day the compact becomes law in that state." However, commission rules require compact members to only license physical therapists and physical therapist assistants who have passed the NPTE, which the board was not initially aware of. Now that the board is aware of the conflict, it is proposing to amend the regulation to be consistent with Compact Commission (commission) rules by only allowing passage of the NPTE to be used when applying for licensure by endorsement.

Estimated Benefits and Costs. According to the Department of Health Professions (DHP), in practice no one has applied for Virginia licensure by endorsement based upon possessing a Canadian license as a physical therapist or a physical therapist assistant. Once the board and DHP became aware of the conflict, they would not have accepted such an application since in their view, pursuant to § 54.1-3495 of the Code of Virginia, the commission rules have the effect of statutes and control over Virginia regulations.³ Thus the proposed amendment conforms the regulation to what is required in practice. Amending the text to accurately reflect the requirements in practice is beneficial in that readers of the regulation would no longer be misled concerning what examination or examinations are accepted.

Businesses and Other Entities Affected. The Code of Virginia requires DPB to assess whether an adverse impact may result from the proposed regulation.⁴ An adverse impact is indicated if there is any increase in net cost or reduction in net benefit for any entity, even if the benefits exceed the costs for all entities combined. The proposal does not increase costs or reduce revenue. Thus, no adverse impact is indicated.

Small Businesses⁵ Affected.⁶ The proposed amendments do not adversely affect small businesses.

Localities⁷ Affected.⁸ The proposed amendments do not disproportionately affect particular localities or affect costs for local governments.

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

Effects on the Use and Value of Private Property. The proposed amendments affect neither the use and value of private property nor real estate development costs.

_____________________________

¹ Section 2.2-4007.04 of the Code of Virginia requires that such economic impact analyses determine the public benefits and costs of the proposed amendments. Further the analysis should include but not be limited to: (1) the projected number of businesses or other entities to whom the proposed regulatory action would apply, (2) the identity of any localities and types of businesses or other entities particularly affected, (3) the projected number of persons and employment positions to be affected, (4) the projected costs to affected businesses or entities to implement or comply with the regulation, and (5) the impact on the use and value of private property.

² The proposed text is "Documentation of passage of an examination equivalent to the national examination as prescribed by the board." The Agency Background Document makes clear that the national examination prescribed by the board is the NPTE. See https://townhall.virginia.gov/l/GetFile.cfm?File=133\5951\9610\AgencyStatement_DHP_9610_v1.pdf.

³ Source: DHP.

⁴ Pursuant to § 2.2-4007.04 D: In the event this economic impact analysis reveals that the proposed regulation would have an adverse economic impact on businesses or would impose a significant adverse economic impact on a locality, business, or entity particularly affected, the Department of Planning and Budget shall advise the Joint Commission on Administrative Rules, the House Committee on Appropriations, and the Senate Committee on Finance. Statute does not define "adverse impact," state whether only Virginia entities should be considered, nor indicate whether an adverse impact results from regulatory requirements mandated by legislation.

⁵ Pursuant to § 2.2-4007.04, 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."

⁶ If the proposed regulatory action may have an adverse effect on small businesses, § 2.2-4007.04 requires that such economic impact analyses include: (1) an identification and estimate of the number of small businesses subject to the proposed regulation, (2) the projected reporting, recordkeeping, and other administrative costs required for small businesses to comply with the proposed regulation, including the type of professional skills necessary for preparing required reports and other documents, (3) a statement of the probable effect of the proposed regulation on affected small businesses, and (4) a description of any less intrusive or less costly alternative methods of achieving the purpose of the proposed regulation. Additionally, pursuant to § 2.2-4007.1 of the Code of Virginia, if there is a finding that a proposed regulation may have an adverse impact on small business, the Joint Commission on Administrative Rules shall be notified.

⁷ "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.

⁸ Section 2.2-4007.04 defines "particularly affected" as bearing disproportionate material impact.

Agency Response to Economic Impact Analysis: The Board of Physical Therapy concurs with the economic impact analysis prepared by the Department of Planning and Budget.

Summary:

The amendments bring Virginia into compliance with the Physical Therapy Licensure Compact by removing acceptance of any examination accepted by another state or Canadian province and instead specifying that applicants for physical therapy licensure by endorsement must pass a national exam as prescribed by the Board of Physical Therapy.

18VAC112-20-65. Requirements for licensure by endorsement.

A. A physical therapist or physical therapist assistant who holds a current, unrestricted license in the United States, its territories, the District of Columbia, or Canada may be licensed in Virginia by endorsement.

B. An applicant for licensure by endorsement shall submit:

1. Documentation of having met the educational requirements prescribed in 18VAC112-20-40 or 18VAC112-20-50. In lieu of meeting such requirements, an applicant may provide evidence of clinical practice consisting of at least 2,500 hours of patient care during the five years immediately preceding application for licensure in Virginia with a current, unrestricted license issued by another United States jurisdiction or Canadian province;

2. The required application, fees, and credentials to the board, including a criminal history background check as required by § 54.1-3484 of the Code of Virginia;

3. A current report from the National Practitioner Data Bank (NPDB);

4. Documentation of passage of an examination equivalent to the Virginia national examination at the time of initial licensure or documentation of passage of an examination required by another state or Canadian province at the time of initial licensure in that state or province as prescribed by the board; and

5. Documentation of active practice in physical therapy in another United States jurisdiction or Canada for at least 320 hours within the four years immediately preceding application for licensure. A physical therapist who does not meet the active practice requirement shall successfully complete 320 hours in a traineeship in accordance with requirements in 18VAC112-20-140.

C. A physical therapist assistant seeking licensure by endorsement who has not actively practiced physical therapy for at least 320 hours within the four years immediately preceding application for licensure shall successfully complete 320 hours in a traineeship in accordance with the requirements in 18VAC112-20-140.

TITLE 18. PROFESSIONAL AND OCCUPATIONAL LICENSING

REAL ESTATE BOARD

Final Regulation

Title of Regulation: 18VAC135-20. Virginia Real Estate Board Licensing Regulations (amending 18VAC135-20-10, 18VAC135-20-20, 18VAC135-20-30, 18VAC135-20-45, 18VAC135-20-50, 18VAC135-20-55, 18VAC135-20-65, 18VAC135-20-70, 18VAC135-20-90, 18VAC135-20-101, 18VAC135-20-110, 18VAC135-20-140, 18VAC135-20-150 through 18VAC135-20-170, 18VAC135-20-185 through 18VAC135-20-240, 18VAC135-20-260, 18VAC135-20-270, 18VAC135-20-280, 18VAC135-20-300, 18VAC135-20-310, 18VAC135-20-340, 18VAC135-20-345, 18VAC135-20-360, 18VAC135-20-390, 18VAC135-20-400, 18VAC135-20-410; adding 18VAC135-20-13, 18VAC135-20-15, 18VAC135-20-35, 18VAC135-20-95, 18VAC135-20-145, 18VAC135-20-181, 18VAC135-20-335, 18VAC135-20-361, 18VAC135-20-362; repealing 18VAC135-20-40, 18VAC135-20-60, 18VAC135-20-80, 18VAC135-20-120, 18VAC135-20-130, 18VAC135-20-180, 18VAC135-20-250, 18VAC135-20-290, 18VAC135-20-350, 18VAC135-20-370, 18VAC135-20-380).

Statutory Authority: §§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Effective Date: April 1, 2026.

Agency Contact: Anika Coleman, Executive Director, Real Estate Board, 9960 Mayland Drive, Suite 400, Richmond, VA 23233, telephone (804) 367-8552, fax (866) 826-8863, or email reboard@dpor.virginia.gov.

Summary:

The amendments include: (i) allowing the principal or supervising broker to determine the advertising policies for their own firm and any affiliate; changes to the proposed regulation provide that that any property information provided by and in control of the licensee in any advertising must be consistent with the property condition and the property’s current contract status and that a licensee who knows or discovers that a third party controls the advertising must make a timely written request for changes to be made; (ii) allowing a licensee to accept a commission, fee, compensation, or valuable consideration for licensed real estate activity from any person or entity if the licensee's principal broker provides written consent; (iii) expanding the list of parties who must provide written consent, including the clients and the parties to the transaction, if the licensee is to receive financial benefit from the use of information about the property, transaction, or parties to the transaction when such information is gained as a result of performing regulated activities; (iv) requiring a proprietary school applicant to submit evidence of financial responsibility by providing either a letter attesting to the applicant's net worth certified by a certified public accountant (CPA) or a CPA-certified balance sheet or financial statement; (v) allowing brokers and firms to simply notify the board upon discharge of a salesperson, broker, or principal broker; (vi) allowing online only maintenance of records if principal brokers have financial records regarding any real estate transaction under the authority of the broker's license readily accessible from the broker's place of business or from the Virginia office if the principal broker's office is located outside of Virginia and the firm has a branch office in Virginia; (vii) revising the mandatory audit requirement to be conducted by the principal broker within 90 days prior to the expiration of a firm license; and (viii) reorganizing, streamlining, and clarifying the regulation generally.

Additional changes to the proposed regulation include (i) incorporating statutory definitions, eliminating a fee for licensees transferring between branches within the same licensed real estate firm, changing permissible activities for unlicensed individuals employed by brokers who manage properties, and removing language that would permit the board to deny licensure based on criminal convictions involving moral turpitude, all of which became effective via intervening regulatory actions; (ii) revising fees to make them consistent with other department regulations; (iii) only requiring a supervising broker to timely respond to inquiries from cooperating brokers; (iv) moving provisions that specify regulated activities that only a licensee may perform and detail specific activities that may be performed by unlicensed individuals to a new section; (v) further revising a provision permitting a licensee to perform regulated activities for a third-party outside the licensee’s brokerage or sole proprietorship if the licensee has an ownership interest in the entity to allow that such activity is permitted if the licensee has an ownership interest in a property; and (vi) further revising a rule regarding improper dealings to provide that a licensee may be subject to discipline for offering real property for sale or lease without the knowledge and consent of the owner without taking reasonable steps to verify identity.

Summary of Public Comments and Agency's Response: A summary of comments made by the public and the agency's response may be obtained from the promulgating agency or viewed at the office of the Registrar of Regulations.

18VAC135-20-10. Definitions.

The following words and terms when used in this chapter shall have the following meanings unless a different meaning is provided or is plainly required by the context:

"Accredited university, college, community college, [ or other school ] or educational institution" means (i) institutions of higher learning approved by the State Council of Higher Education for Virginia; (ii) those institutions listed in the Transfer Credit Practices of Designated Educational Institutions, published by the American Association of Collegiate Registrars and Admissions Officers; or (iii) any state-accredited secondary school that offers adult distributive education courses.

"Active" means any broker or salesperson, who is in good standing, who is under the supervision of a principal or supervising broker of a firm or sole proprietor, and who is performing those activities defined in § 54.1-2100 of the Code of Virginia.

"Actively engaged" means active licensure with a licensed real estate firm or sole proprietorship in performing those activities as defined in § 54.1-2100 of the Code of Virginia for an average of at least 40 hours per week. This requirement may be waived at the discretion of the board in accordance with § 54.1-2105 of the Code of Virginia.

"Actively engaged in the brokerage business" means anyone who holds an active real estate license.

"Advertising" means all communication disseminated through any medium to consumers for any purpose related to licensed real estate activity.

"Affiliated licensee" means any broker, salesperson, business entity, or real estate team that has an active license.

"Another state" means the same as the term is defined in § 54.1-205 of the Code of Virginia.

"Application deposit" means the same as the term is defined in § 55.1-1200 of the Code of Virginia.

"Associate broker" means any individual licensee of the board holding a broker's license other than one who has been designated as the principal broker.

"Board" means the Real Estate Board.

"Branch office" means the same as the term is defined in § 54.1-2100 of the Code of Virginia.

"Brokerage relationship" means the same as the term is defined in § 54.1-2130 of the Code of Virginia.

"Brokerage services" means the same as the term is defined in § 54.1-2130 of the Code of Virginia.

"Class hour or clock hour" means 50 minutes of instruction.

"Client" means a person who has entered into a brokerage relationship with a licensee as defined by § 54.1-2130 of the Code of Virginia.

"Contact information" means telephone number, email address, or web address of the firm or branch office, or a digital link thereto when used in digital advertising.

"Cooperating broker" means the broker representing the client on the other side of the existing or contemplated real estate transaction.

"Firm" means any business entity or sole proprietorship (nonbroker owner), partnership, association, limited liability company, or corporation, other than a sole proprietorship (principal broker owner), that is that transacts real estate business required by 18VAC135-20-20 B to obtain a separate brokerage firm license. The firm's licensed name may be any assumed or fictitious name properly filed with the board.

"Inactive status" means any broker or salesperson who is not under the supervision of a principal broker or supervising broker, who is not active with a firm or sole proprietorship, and who is not performing any of the activities defined in § 54.1-2100 of the Code of Virginia.

"Independent contractor" means a licensee who acts for or represents a client other than as a standard agent and whose duties and obligations are governed by a written contract between the licensee and the client.

"Licensee" means real estate brokers and salespersons as defined in Chapter 21 (§ 54.1-2100 et seq.) of Title 54.1 of the Code of Virginia or real estate firms.

[ "Moral turpitude" means, but is not limited to, lying, cheating, or stealing. ]

"MLS" means Multiple Listing Service.

"Neighboring state" means the same as the term is defined in § 54.1-205 of the Code of Virginia.

"Place of business" means the same as the term is defined in § 54.1-2100 of the Code of Virginia.

"Principal broker" means the individual broker who shall be designated by each firm to ensure compliance with Chapter 21 (§ 54.1-2100 et seq.) of Title 54.1 of the Code of Virginia and this chapter and to receive communications and notices from the board that may affect the firm or any licensee active with the firm regarding such compliance. In the case of a sole proprietorship, the licensed broker who is the sole proprietor shall have the responsibilities of is the principal broker. The principal broker shall have responsibility for the activities of the firm and all its licensees. The principal broker shall have signatory authority on all escrow accounts maintained by the firm.

"Principal to a transaction" means a party to a real estate transaction, including a seller or buyer, landlord or tenant, optionor or optionee, [ or ] licensor or licensee [ , or assignor or assignee ]. For the purposes of this chapter, the listing or selling broker are not by virtue of their brokerage relationship principals to the transaction.

"Proprietary school" means (i) a privately owned school, (ii) a real estate professional association, or (iii) a related entity, which is not under the authority of the Department of Education, but approved by the board to teach real estate courses.

"Provider" means an (i) accredited university, college, community college; (ii) a high school offering adult distributive education courses; or (iii) a proprietary school.

"Sole proprietor" means any individual, not a corporation, limited liability company, partnership, or association, who is trading under the individual's name or under an assumed or fictitious name pursuant to the provisions of Chapter 5 (§ 59.1-69 et seq.) of Title 59.1 of the Code of Virginia.

"Standard agent" means a licensee who acts for or represents a client in an agency relationship. A standard agent shall will have the obligations as provided in Article 3 (§ 54.1-2130 et seq.) of Chapter 21 of Title 54.1 of the Code of Virginia.

"Supervising broker" means (i) the individual broker who shall be designated by the principal broker to supervise the provision of real estate brokerage services by the associate brokers and salespersons assigned to branch offices or real estate teams [ ; ] or (ii) the broker, who may be the principal broker, designated by the principal broker to supervise a designated agent as stated in § 54.1-2130 of the Code of Virginia.

18VAC135-20-13. General fee requirements.

A. All fees are nonrefundable [ and will not be prorated ]. The date of receipt by the board or its agent is the date that will be used to determine whether a fee is on time.

B. The fee for examination is subject to contracted charges to the board by an outside vendor. These contracts are competitively negotiated and bargained for in compliance with the Virginia Public Procurement Act (§ 2.2-4300 et seq. of the Code of Virginia). Fees may be adjusted and charged to the candidate in accordance with these contracts.

18VAC135-20-15. Fee schedule.

The following fees apply:

18VAC135-20-20. Necessity Requirements for firm license (Refer to § 54.1-2106.1 of the Code of Virginia.).

A. Sole proprietor (principal broker owner). A real estate broker's license shall be issued to an In accordance with § 54.1-2106.1 of the Code of Virginia, broker owned sole proprietorships are not required to hold a firm license. An individual trading operating under an assumed or a fictitious or assumed name [ , ] that is, [ a name other than the individual's full name, ] only after the individual signs and acknowledges a certificate provided by the board that sets forth the name under which the business is to be organized and conducted, the address of the individual's residence, and the address of the individual's place of business. The board will consider the application of an individual only after the individual is authorized to conduct business in accordance with must [ provide proof that the name is properly registered register any trade or fictitious names ] with the State Corporation Commission [ pursuant to in accordance with ] Chapter 5 (§ 59.1-69 et seq.) of Title 59.1 of the Code of Virginia and must provide the address for the individual's residence and address for the individual’s place of business.

B. Sole proprietor (nonbroker owner), partnership, association, limited liability company, or corporation.

1. Every sole proprietor (nonbroker owner), partnership, association, limited liability company, or corporation firm must secure a real estate firm license for its firm before transacting real estate business. This license is separate and distinct from the individual broker license licenses required of each partner, associate, manager of a limited liability company, and officer of a corporation the individuals or business entities who is are active in the firm's brokerage business.

2. Each applicant for such license shall must disclose [ , and the license ] shall [ will be issued to, ] the name under which the applicant intends to do or does business and holds itself out to the public. Firms must register any trade or fictitious names with the State Corporation Commission in accordance with Chapter 5 of Title 59.1 (§ 59.1-69 et seq.) of the Code of Virginia.

3. Each applicant shall also must disclose the business address of the place of business for the firm.

The board will consider the application of any partnership, association, corporation, or limited liability company only after the entity is 4. Firms must be organized as business entities under the laws of the Commonwealth of Virginia or otherwise authorized to conduct transact business in accordance with Chapter 5 (§ 59.1-69 et seq.) of Title 59.1 of the Code of Virginia.

C. Each real estate firm is required to have a principal broker whose license is in good standing with the board in order to transact real estate business active.

D. Branch office license in accordance with § 54.1-2106.1 of the Code of Virginia. If a real estate principal broker maintains more than one place of business within the state, the principal broker must secure a branch office license shall be issued for each additional place of business maintained other than the broker's primary place of business noted on the firm license application. Application for the license shall be made on forms provided by the board and shall reveal the name of the firm, the location of the branch office, and the name of the supervising broker for that branch office. The branch office license shall be maintained at the branch office location.

1. No branch office license shall will be required for:

1. a. A location that the principal broker or those employed by or affiliated as an independent contractor with the principal broker does not own, lease, or maintain exclusive access to, maintenance of, and control of, unless it is held out to the public as a location where such persons or entities are regularly engaging in the activities of a real estate broker or salesperson;

2. b. A motor vehicle or watercraft;

3. c. A place that is solely devoted to advertising real estate matters of a general nature or to making a real estate broker's business name generally known, such as a trade show or expo;

4. d. A residence, unless it is held out to the public as a location where the principal broker or those employed by or affiliated as an independent contractor with the principal broker is regularly engaging in the activities of a real estate broker or salesperson;

5. e. A post office box, mail drop location, or other similar facility; or

6. f. A public location, such as a coffee shop or restaurant.

2. Each application must disclose the name of the firm, the location of the branch office, and the name of the supervising broker for that branch office.

3. The branch office license must be maintained at the branch office location.

18VAC135-20-30. Qualifications for individual licensure.

Every applicant to the Real Estate Board board for an individual salesperson's salesperson or broker's broker license shall must have the following qualifications:

1. The applicant shall have a good reputation for honesty, truthfulness, and fair dealing and be competent to transact the business of a real estate broker or a real estate salesperson in such a manner as to safeguard the interests of the public must be at least 18 years of age.

2. The applicant shall meet the current educational requirements by achieving a passing grade in all required courses of § 54.1-2105 of the Code of Virginia prior to the time the applicant sits for the licensing examination and applies for licensure must have a high school diploma or equivalent.

3. The applicant shall be in good standing as a licensed real estate broker or salesperson in every jurisdiction where licensed and the applicant shall not have had a license as a real estate broker or real estate salesperson that was suspended, revoked, or surrendered in connection with a disciplinary action or that has been the subject of discipline in any jurisdiction prior to applying for licensure in Virginia. The applicant shall be in compliance with all the terms of all board orders, including paying imposed monetary penalties and costs, plus any accrued interest and other fees, and completing imposed education must report any action taken by any board or administrative body in any jurisdiction against a professional or occupational license, certification, or registration issued to the applicant, to include any suspension, revocation, or surrender of a license, certification, or registration, imposition of a monetary penalty, or requirement to take remedial education or other corrective action. The board, in its discretion, may deny licensure to any applicant for any prior action taken by any board or administrative body in any jurisdiction. The applicant has the right to request further review of any such action by the board under the Administrative Process Act (§ 2.2-4000 et seq. of the Code of Virginia).

4. In accordance with § 54.1-204 of the Code of Virginia, each applicant shall must submit to fingerprinting and shall must disclose the following information:

a. All misdemeanor convictions involving fraudulent [ and or ] dishonest acts, sexual offense, non-marijuana drug distribution, or physical injury battery within five years of the date of the application; and

b. All felony convictions during the applicant's lifetime.

Any plea of nolo contendere shall be considered a conviction for purposes of this subsection. The record of a conviction received from a court shall be accepted as prima facie evidence of a conviction or finding of guilt. The board, in its discretion, may deny licensure to any applicant in accordance with § 54.1-204 of the Code of Virginia.

5. The applicant shall be at least 18 years of age.

6. The applicant shall have a high school diploma or its equivalent.

7. The applicant, within 12 months prior to submitting a complete application for a license, shall have passed a written examination provided by the board or by a testing service acting on behalf of the board.

8. 5. The applicant shall follow all procedures established with regard to conduct at the examination. Failure to comply with all procedures established with regard to conduct at the examination may be grounds for denial of application must sign a statement verifying that the applicant has read and understands the provisions of this chapter and Chapter 21 (§ 54.1-2100 et seq.) of Title 54.1 of the Code of Virginia.

9. 6. Applicants for licensure who do not meet the requirements set forth in subdivisions 3 and 4 of this section may be approved for licensure following consideration by the board.

18VAC135-20-35. Additional qualifications for individual licensure.

A. In addition to the requirements in 18VAC135-20-30, an applicant for an individual license as a real estate salesperson, real estate broker, or as an applicant by reciprocity must meet the requirements established in this section as applicable.

B. Applicants for initial licensure must achieve a passing grade in all courses required by § 54.1-2105 of the Code of Virginia applicable to the license being sought prior to sitting for the licensing examination and applying for licensure.

C. Applicants for licensure as a real estate broker must have been actively engaged as defined in 18VAC135-20-10 as a real estate salesperson for a period of 36 of the 48 months immediately preceding application. The applicant's experience must be verified by the principal or supervising broker for whom the applicant worked at the time of obtaining that experience.

D. Applicants for initial licensure, within 12 months prior to submitting a complete application for a license, must have passed a written examination provided by the board or by a testing service acting on behalf of the board. The applicant must follow all procedures established with regard to conduct at the examination. Failure to comply with all such procedures established with regard to conduct at the examination may be grounds for denial of application.

E. Applicants for licensure as a real estate salesperson or real estate broker by reciprocity must meet the following requirements as applicable to the license sought:

1. Applicants must, within 12 months prior to submitting a complete application for a license, have passed a written examination provided by the board or a testing service acting on behalf of the board covering real estate license law and regulations of the board.

2. Applicants must have received the salesperson or broker license by virtue of having passed in the jurisdiction of licensure a written examination deemed to be substantially equivalent to the Virginia examination.

3. An applicant for a salesperson license must have met educational requirements that are substantially equivalent to those required in Virginia.

4. An applicant for a broker license must have met educational requirements that are substantially equivalent to those required in Virginia, and the applicant must have been actively engaged as defined by 18VAC135-20-10 for 36 of the preceding 48 months. The broker applicant's experience must be verified by an individual who has direct knowledge of the applicant's activities as defined in § 54.1-2100 of the Code of Virginia.

F. In accordance with § 54.1-2105 of the Code of Virginia, the board, at its discretion, may waive the education and experience requirements of this section.

18VAC135-20-40. Additional qualifications for brokers. (Repealed.)

An applicant for an individual license as a real estate broker shall meet the following requirements in addition to those set forth in 18VAC135-20-30:

1. The applicant shall meet the current educational requirements of § 54.1-2105 of the Code of Virginia.

2. The applicant shall have been actively engaged as defined in 18VAC135-20-10 as a real estate salesperson for a period of 36 of the 48 months immediately preceding application. This requirement may be waived at the discretion of the board in accordance with § 54.1-2105 of the Code of Virginia.

3. The applicant's experience must be verified by the principal or supervising broker for whom the licensee worked at the time of obtaining that experience.

18VAC135-20-45. Additional qualifications for salesperson's salesperson or broker's broker license as a business entity.

An In addition to the applicable requirements in 18VAC135-20-30 and 18VAC135-20-35, an applicant for a salesperson's salesperson or broker license as a business entity shall must meet the following requirements in addition to those set forth in 18VAC135-20-30:

1. Every owner or officer who actively participates in the real estate business shall must hold a license as a salesperson or broker. The business entity license does not replace the individual license. More than one licensee may be a participant of the business entity.

2. When one licensee is the owner or officer, the business entity shall be named in accordance with § 54.1-2106.1 C of the Code of Virginia.

3. The board will consider the application of any partnership, association, corporation or limited liability company only after the entity is 2. Business entities must be organized under the laws of the Commonwealth of Virginia or otherwise authorized to do transact business in Virginia and must register any trade or fictitious names with the State Corporation Commission in accordance with §§ 59.1-69 through 59.1-76 Chapter 5 of Title 59.1 (§ 59.1-69 et seq.) of the Code of Virginia.

18VAC135-20-50. Concurrent licenses.

Concurrent licenses shall be issued by the board to brokers A. In order to be active as a broker in more than one firm upon receipt of a concurrent license form and written statements verifying that written notice of the applicant's concurrent licensure status has been provided to at the same time, brokers must obtain concurrent licenses by submitting the concurrent license application, which must be approved by the principal broker of each firm with which the applicant is and will be associated.

B. Payment of the fee specified in 18VAC135-20-15 is required for each concurrent license. A concurrent license will not be issued to an individual applying to be associated with a firm if that individual has an expired license associated with the same firm and the expired license may be reinstated.

18VAC135-20-55. Exchange to salesperson's salesperson license.

A broker who wants seeking to exchange his license(s) the [ broker's broker ] license for that of a salesperson must submit a complete application to the board with [ the ] appropriate fee specified in 18VAC135-20-15. When exchanging the license(s) a license, the licensee agrees his [ the any ] current broker's license(s) broker [ license ceases licenses cease ] to exist, and if he the licensee chooses to become licensed as a broker again, he the licensee must pass the current broker examination and must meet the current education and experience requirements in effect at the time of application.

18VAC135-20-60. Qualifications for licensure by reciprocity. (Repealed.)

An individual who is currently licensed as a real estate salesperson or broker in another jurisdiction may obtain a Virginia real estate license by meeting the following requirements:

1. The applicant shall be at least 18 years of age.

2. The applicant shall have a high school diploma or its equivalent.

3. The applicant shall have received the salesperson's or broker's license by virtue of having passed in the jurisdiction of licensure a written examination deemed to be substantially equivalent to the Virginia examination.

4. The applicant shall sign a statement verifying that the applicant has read and understands the provisions of this chapter and Chapter 21 (§ 54.1-2100 et seq.) of Title 54.1 of the Code of Virginia.

5. The applicant, within 12 months prior to submitting a complete application for a license, shall have passed a written examination provided by the board or by a testing service acting on behalf of the board covering Virginia real estate license law and regulations of the Real Estate Board.

6. The applicant shall follow all procedures established with regard to conduct at the examination. Failure to comply with all procedures established by the board with regard to conduct at the examination may be grounds for denial of application.

7. The applicant shall be in good standing as a licensed real estate broker or salesperson in every jurisdiction where licensed and the applicant shall not have had a license as a real estate broker or real estate salesperson that was suspended, revoked, or surrendered in connection with a disciplinary action or that has been the subject of discipline in any jurisdiction prior to applying for licensure in Virginia. The applicant shall be in compliance with all the terms of all board orders, including paying imposed monetary penalties and costs, plus any accrued interest and other fees, and completing imposed education.

8. At the time of application for a salesperson's license, the applicant must have met educational requirements that are substantially equivalent to those required in Virginia. At the time of application for a broker's license, the applicant must have met educational requirements that are substantially equivalent to those required in Virginia, and the applicant must have been actively engaged as defined by 18VAC135-20-10 for 36 of the preceding 48 months. The broker applicant's experience must be verified by an individual who has direct knowledge of the applicant's activities as defined in § 54.1-2100 of the Code of Virginia. These requirements may be waived at the discretion of the board in accordance with § 54.1-2105 of the Code of Virginia.

9. The applicant shall have a good reputation for honesty, truthfulness, and fair dealing and be competent to transact the business of a real estate salesperson or broker in such a manner as to safeguard the interests of the public.

10. In accordance with § 54.1-204 of the Code of Virginia, each applicant shall submit to fingerprinting and shall disclose the following information:

a. All misdemeanor convictions involving fraudulent and dishonest acts, sexual offense, non-marijuana drug distribution, or physical injury within five years of the date of the application; and

b. All felony convictions during the applicant's lifetime.

Any plea of nolo contendere shall be considered a conviction for purposes of this subsection. The record of a conviction received from a court shall be accepted as prima facie evidence of a conviction or finding of guilt. The board, in its discretion, may deny licensure to any applicant in accordance with § 54.1-204 of the Code of Virginia.

11. Applicants for licensure who do not meet the requirements set forth in subdivisions 7 and 10 of this section may be approved for licensure following consideration by the board.

18VAC135-20-65. Universal license recognition.

A. Licensed in a neighboring state. The board will issue a salesperson or broker license under universal license recognition to an individual who meets the following qualifications:

1. The individual holds a current and valid license with a similar scope of practice in a neighboring state;

2. The individual's other license is in good standing with no reported pending complaints;

3. The individual has met the requirements set in subdivision 4 of 18VAC135-20-30;

4. The individual has not been subject to professional discipline involving harm to the public or license probation, suspension, or revocation;

5. The individual pays the reciprocity application fee as listed in 18VAC135-20-80 18VAC135-20-15; and

6. The individual successfully passes the Virginia Real Estate Exam.

B. Licensed in another state. The board will issue a salesperson or broker license under universal license recognition to an individual who meets the following qualifications:

1. The individual holds a current and valid license with a similar scope of practice in another state, territory, possession, or jurisdiction of the United States for at least three years;

2. The individual was licensed in the other state after having passed a state required exam and met education, training, or experience requirements to obtain the license;

3. The individual's other license is in good standing with no reported pending complaints;

4. The individual has met the requirements set in subdivision 4 of 18VAC135-20-30;

5. The individual has not been subject to professional discipline involving harm to the public or license probation, suspension, or revocation;

6. The individual pays the reciprocity application fee as listed in 18VAC135-20-80 18VAC135-20-15; and

7. The individual successfully passes the Virginia Real Estate Exam.

C. Experience in a state that does not require licensure. The board will hold an individual to have met all experience, training, and education requirements if the applicant has three years of experience in a state that does not require licensure.

1. To be exam eligible under universal license recognition, an individual must have:

a. Demonstrated at least three years of experience as a salesperson or broker in another state that does not issue an occupational or professional license for that respective profession;

b. Met the requirements set in subdivision 4 of 18VAC135-20-30;

c. Not been subject to professional discipline involving harm to the public or license probation, suspension, or revocation; and

d. Paid the applicable application fee as listed in 18VAC135-20-80 18VAC135-20-15.

2. Under this subsection, individuals are required to pass all exams required of initial applicants for the license under 18VAC135-20-30 18VAC135-20-35.

18VAC135-20-70. Activation or transfer of license.

A. Any inactive licensee may activate that license with a licensed real estate firm or sole proprietorship by completing an activate form prescribed by the board.

1. A licensee who submits an activate application to the board shall must not conduct business licensed activity with the real estate firm or sole proprietorship set forth in the application until the application is processed and the license is issued by the board.

2. Continuing education pursuant to § 54.1-2105.03 of the Code of Virginia shall must be completed within two years prior to activation of a license when the license has been inactive for more than 30 days.

3. Any licensee who has not been active with a licensed real estate firm or sole proprietorship for a period of greater than three years [ shall will ] be required to meet the existing prelicense educational requirements.

B. Any licensee may transfer from one licensed real estate firm or sole proprietorship to another by completing and submitting to the board a transfer application and the fee as set forth in 18VAC135-20-80 18VAC135-20-15.

1. The transfer application shall must include the signature of the new principal broker or supervising broker with signature authority who will be responsible for the licensee's real estate activities and shall [ . ]

2. The transfer will be effective upon the new principal broker or supervising broker's execution of the transfer application.

[ 3. ] For the transfer of a license between branch offices within the same licensed real estate firm or sole proprietorship, including from such firm's or sole proprietorship's primary place of business to one of its branch offices [ , ] or from a branch office to another branch office under the same primary place of business, no fee will be charged.

18VAC135-20-80. Application fees. (Repealed.)

A. All application fees for licenses are nonrefundable and the date of receipt by the board or its agent is the date that will be used to determine whether the fee is on time.

B. Application fees are as follows:

C. The fee for examination or reexamination is subject to contracted charges to the board by an outside vendor. These contracts are competitively negotiated and bargained for in compliance with the Virginia Public Procurement Act (§ 2.2-4300 et seq. of the Code of Virginia). Fees may be adjusted and charged to the candidate in accordance with these contracts.

18VAC135-20-90. Renewal required.

Licenses issued under this chapter for salespersons, brokers, and firms shall will expire two years from the last day of the month in which they the licenses were issued, as indicated on the license, except concurrent broker licenses which shall that will expire on the same date as the original broker license.

18VAC135-20-95. Post-license education requirements for salespersons.

A. In accordance with § 54.1-2105.01 A of the Code of Virginia, a salesperson who is renewing a license for the first time is required to have completed 30 hours of post-license education as outlined in subsection B of this section within the first year of licensure [ , ] regardless of whether the salesperson's license is active or inactive. Failure to complete the 30-hour post-licensure curriculum within one year from the last day of the month in which the license was issued will result in the license being placed on inactive status by the board until the curriculum has been completed.

B. A salesperson within the first year of licensure must complete the following education:

1. Two hours of fair housing, Americans with Disabilities Act (42 USC § 12101 et seq.), and civil rights;

2. Six hours of real estate law and regulations;

3. Three hours of ethics and standards of conduct;

4. Two hours of current industry issues and trends;

5. Three hours of agency law;

6. Six hours of contract writing;

7. Three hours of risk management;

8. Three hours of escrow requirements; and

9. Two hours of real estate-related finance.

18VAC135-20-101. Qualification for renewal; continuing education requirements.

A. Continuing education requirements at renewal.

1. Subsequent salesperson renewals. As a condition of renewal, and pursuant to § 54.1-2105.03 of the Code of Virginia, all active salespersons, resident or nonresident, except those called to active duty in the Armed Forces of the United States, shall be are required to satisfactorily complete a course of not less than a total of 16 classroom, correspondence, or other distance learning instruction hours during each licensing term, except for salespersons who are renewing for the first time and are required to complete 30 hours of post-license education regardless of whether the licenses are active or inactive. All active brokers, resident or nonresident, except those called to active duty in the Armed Forces of the United States, shall be required to satisfactorily complete a course of not less than a total of 24 classroom, correspondence, or other distance learning instruction hours during each licensing term. Active licensees called to active duty in the Armed Forces of the United States may complete these courses within six months of release from active duty. Inactive brokers and salespersons are not required to complete the continuing education course as a condition of renewal (see 18VAC135-20-70, Activation or transfer of license).

1. Providers shall be those as defined in 18VAC135-20-350;

2. For salespersons, 11 of the required 16 hours shall must include:

two a. Two hours in fair housing laws;

three b. Three hours in ethics and standards of conduct;

two c. Two hours in real estate agency;

two d. Two hours in real estate contracts [ , ] including contract principles, contract forms, and escrow deposits and accounts; and

two e. Two hours in legal updates and emerging trends, to include flood zone areas and the National Flood Insurance Program.

The remaining elective hours must be obtained in subject areas listed in subsection B of this section.

2. Broker renewals. All active brokers are required to satisfactorily complete a course of not less than a total of 24 classroom, correspondence, or other distance learning instruction hours during each licensing term. For brokers, 19 of the 24 required hours shall must include:

eight a. Eight hours in supervision and management of real estate agents and the management of real estate brokerage firms, including oversight of contracts and agency, two hours of which shall must include an overview of the broker supervision requirements under this chapter and Chapter 21 (§ 54.1-2100 et seq.) of Title 54.1 of the Code of Virginia;

two b. Two hours in fair housing laws;

three c. Three hours in ethics and standards of conduct;

two d. Two hours in real estate agency;

two e. Two hours in real estate contracts, including contract principles, contract forms, and escrow deposits and accounts; and

two f. Two hours in legal updates and emerging trends, to include flood zone areas and the National Flood Insurance Program.

The remaining elective hours must be obtained in subject areas listed in subsection B of this section.

3. Armed Forces of the United States renewals. If an active licensee is called to active duty or deployed in the Armed Forces of the United States, such licensee may complete [ these the ] courses [ required by this section ] within six months of the licensee's release from active duty or deployment.

4. Inactive licenses. Inactive brokers and salespersons are not required to complete the continuing education course as a condition of renewal.

5. If the licensee submits a notarized affidavit to the board that certifies that the licensee does not practice residential real estate brokerage, residential management, or residential leasing and shall will not do so during the licensing term, training in fair housing shall is not be required; instead, such licensee shall must receive training in other applicable federal and state discrimination laws and regulations.

The remaining B. Any elective hours shall not specified in subsection A of this section must be on subjects from the following list:

a. 1. Property rights;

b. 2. Contracts;

c. 3. Deeds;

d. Mortgages 4. Financing [ and, ] types of mortgages [ , ] and deeds of trust;

e. Types of mortgages;

f. 5. Leases;

g. 6. Liens;

h. 7. Real property and title insurance;

i. Investment;

j. 8. Taxes in real estate;

k. Real estate financing 9. Closing disclosures;

l. 10. Brokerage and agency contract responsibilities;

m. 11. Real property management;

n. 12. Search, examination, and registration of title;

o. 13. Title closing;

p. 14. Appraisal of real property;

q. 15. Planning subdivision developments and condominiums;

r. Regulatory statutes;

s. Housing legislation;

t. 16. Fair housing;

u. 17. Real Estate Board estate statutes and board regulations;

v. Land use;

w. 18. Business law;

x. 19. Real estate markets and economics;

y. 20. Real estate investments;

z. 21. Federal real estate law;

aa. 22. Commercial real estate;

bb. 23. Americans with Disabilities Act;

cc. 24. Environmental issues impacting real estate, sustainability, and energy efficiency;

dd. 25. Building codes and design;

ee. Local laws and 26. Land use, zoning, and local laws;

ff. 27. Escrow requirements accounts and deposits;

gg. 28. Ethics and standards of conduct; and

hh. 29. Common interest ownership communities, including the Resale Disclosure Act (Chapter 23.1 of Title 55.1 of the Code of Virginia);

30. Cyber security and data protection; and

31. Social responsibility in real estate, including affordable housing, multicultural market, gentrification, diversity, multigenerational, and cultural competency.

3. C. Salespersons and brokers holding active licenses in multiple jurisdictions.

1. Salespersons holding licenses in other multiple jurisdictions must complete 11 16 hours of continuing education, 11 of which are mandatory board-approved courses, that shall must include two hours in fair housing laws; three hours in ethics and standards of conduct; two hours in real estate agency; two hours in real estate contracts; and two hours of legal updates and emerging trends, to include flood zone areas and the National Flood Insurance Program. Such salespersons may substitute education completed in the salesperson's their jurisdiction for the remaining five elective hours required by subdivision 2 subsection B of this section.

2. Brokers holding licenses in other multiple jurisdictions must complete 19 24 hours of continuing education, 19 of which are mandatory board-approved courses that shall must include eight hours in supervision and management of real estate agents and the management of real estate brokerage firms, two hours of which shall must include an overview of the broker supervision requirements under this chapter and Chapter 21 (§ 54.1-2100 et seq.) of Title 54.1 of the Code of Virginia; two hours in fair housing laws; three hours in ethics and standards of conduct; two hours in real estate agency; two hours in real estate contracts; and two hours in legal updates and emerging trends, to include flood zone areas and the National Flood Insurance Program. Such brokers may substitute education completed in the broker's their jurisdiction for the remaining five elective hours required by subdivision 2 subsection B of this section.

4. The board may approve additional subjects at D. In its discretion, and in accordance with § 54.1-2105.03 of the Code of Virginia, the board may approve additional subjects toward fulfillment of the elective continuing education hours required by this section.

5. E. Credit for continuing education course completion is given for each class hour/clock hour as defined in18VAC135-20-350 class hour or clock hour.

6. F. Licensees are responsible for retaining for three years and providing proof of continuing education to the board or the board's duly authorized agents upon request. Proof of course completion shall be made on a form prescribed by the board. Failure to provide documentation of completion as directed by the board may result in the license not being renewed [ , or ] disciplinary action pursuant to this chapter, or both.

7. G. Instructors who are also licensees of the board may earn continuing education credit for teaching continuing education courses.

8. H. Any continuing education credits completed by the licensee in excess of that required in the current license term that are obtained in the six months immediately prior to the license expiration date [ shall will ] carry over into the next two-year renewal period.

18VAC135-20-110. Procedures for renewal.

A. Prior to the expiration date of the license, the board will send a renewal notice to the licensee.

B. Prior to the expiration date shown on of the license, each licensee desiring to renew the license shall must return to the board the [ renewal ] application forms [ notice and the ] appropriate fee as outlined specified in 18VAC135-20-120 18VAC135-20-15.

C. Failure to receive notices from the board regarding license renewal does not relieve the licensee of the obligation to renew.

18VAC135-20-120. Fees for renewal. (Repealed.)

A. All fees for renewals are nonrefundable, and the date of receipt by the board or its agent is the date that will be used to determine whether the fee is on time.

B. Renewal fees are as follows:

18VAC135-20-130. Board discretion to deny renewal. (Repealed.)

The board may deny renewal of a license for (i) the same reasons as it may refuse initial licensure or discipline a current licensee; (ii) failure to meet the terms of an agreement for licensure or other board order; or (iii) failure to fully pay monetary penalties and costs imposed by the board, plus any accrued interest.

18VAC135-20-140. Failure to renew; reinstatement required.

A. All applicants for reinstatement must meet all the applicable [ continuing ] education requirements set forth in [ 18VAC135-20-95 or ] 18VAC135-20-101. Applicants for reinstatement who want to activate a license must have completed the [ continuing ] education requirement in order to reinstate and activate the license. Applicants for reinstatement of an inactive license are not required to complete the continuing education requirement for license reinstatement.

B. If the requirements for renewal of a license, including receipt of the fee by the board, are not completed by the licensee within 30 days of the expiration date noted on the license, a the applicable reinstatement fee specified in 18VAC135-20-15 is required as follows:.

C. A license may be reinstated for up to one year following the expiration date with payment of the reinstatement fee. When a license is reinstated, the licensee will continue to have the same license number and will be assigned an expiration date two years from the previous expiration date of the license. After one year, the license may not be reinstated under any circumstances and the applicant must meet all current educational and examination requirements and apply as a new applicant.

D. A licensee An individual, business entity, or firm may not perform activities defined in § 54.1-2100 of the Code of Virginia with an expired license. Any real estate activity conducted subsequent to the expiration date may constitute unlicensed activity and be subject to prosecution under Chapter 1 (§ 54.1-100 et seq.) of Title 54.1 of the Code of Virginia.

18VAC135-20-145. Status of licensee during the period prior to reinstatement.

A licensee who reinstates a license will be regarded as having been continuously licensed without interruption and will remain under the disciplinary authority of the board during this entire period and will be held accountable for activities during this period.

18VAC135-20-150. Board discretion to deny renewal or reinstatement.

The board may deny renewal or reinstatement of a license for (i) the same reasons as it may refuse initial licensure or discipline a current licensee; (ii) failure to meet the terms of an agreement for licensure or other board order; or (iii) failure to fully pay monetary penalties and costs imposed by the board, plus any accrued interest.

18VAC135-20-155. Grounds for disciplinary action.

A. The board has the power to fine impose a monetary penalty against any licensee or certificate holder and to suspend or revoke any license or certificate issued under the provisions of Chapter 21 (§ 54.1-2100 et seq.) of Title 54.1 of the Code of Virginia and this chapter in accordance with subdivision A 7 of § 54.1-201 and § 54.1-202 of the Code of Virginia and the provisions of the Administrative Process Act (§ 2.2-4000 et seq. of the Code of Virginia), where the licensee or certificate holder has been found to have violated or cooperated with others in violating any provision of Chapters 1 (§ 54.1-100 et seq.), 2 (§ 54.1-200 et seq.), 3 (§ 54.1-300 et seq.), and 21 (§ 54.1-2100 et seq.) of Title 54.1 of the Code of Virginia, Chapter 10 (§ 55.1-1000 et seq.) of Title 55.1 of the Code of Virginia, or any regulation of the board.

B. Any licensee failing to comply with the provisions of Chapter 21 (§ 54.1-2100 et seq.) of Title 54.1 of the Code of Virginia or the regulations of the Real Estate Board board in performing any acts covered by § 54.1-2100 of the Code of Virginia may be charged with a violation, regardless of whether those acts are in the licensee's personal capacity or in the licensee's capacity as a real estate licensee.

18VAC135-20-160. Place of business.

A. No place of business shall be in a residence unless it is separate and distinct from the living quarters of the residence with its own entrance and is accessible by the public. B. A. Every principal broker shall must have the following readily available to the public in the primary place of business the:

1. The firm license, the;

2. The principal broker license,; and

the 3. The license of every salesperson and broker active with the firm.

B. Each branch office shall must have readily available to the public the branch office license and a roster of every salesperson or broker assigned to that branch office.

18VAC135-20-165. Duties of supervising broker.

Each place of business, each branch office, and each real estate team shall be supervised by a supervising broker. The supervising broker shall exercise reasonable and adequate supervision of the provision of real estate brokerage services by associate brokers and salespersons assigned to the branch office or real estate team. The supervising broker may designate another broker to assist in administering the provisions required by this section, but such designation does not relieve the supervising broker of responsibility for the supervision of the acts of all licensees assigned to the branch office or real estate team. Factors to be considered in determining whether the supervision is reasonable and adequate include the following In addition to the duties of supervising brokers set forth in § 54.1-2110.1 of the Code of Virginia, supervising brokers must:

1. The availability of the supervising broker to all licensees under the supervision of the broker to review and approve all documents, including leases, contracts affecting the firm's clients, brokerage agreements, and advertising;

2. The availability of training and written procedures and policies that provide, without limitation, clear guidance in the following areas:

a. Proper handling of escrow deposits;

b. Compliance with federal and state fair housing laws and regulations if the firm engages in residential brokerage, residential leasing, or residential property management;

c. Advertising;

d. Negotiating and drafting of contracts, leases, and brokerage agreements;

e. Use of unlicensed individuals;

f. Agency or independent contractor relationships;

g. Distribution of information on new or changed statutory or regulatory requirements;

h. Disclosure of matters relating to the condition of the property; and

i. Such other matters as necessary to ensure the competence of licensees to comply with this chapter and Chapter 21 (§ 54.1-2100 et seq.) of Title 54.1 of the Code of Virginia;

3. The availability of the supervising broker 1. Provide to supervise the management supervision of the brokerage services in a timely manner;.

4. The supervising broker ensures the brokerage services are carried out competently and in accordance with the provisions of this chapter and Chapter 21 (§ 54.1-2100 et seq.) of Title 54.1 of the Code of Virginia;

5. The supervising broker undertakes reasonable steps to ensure compliance by all licensees assigned to the branch office, including ensuring the licensees have an active, current license;

6. The supervising broker undertakes 2. Undertake reasonable steps to ensure only licensees undertake activities requiring a license, [ including:

a. ] Show [ Showing property;

b. ] Hold [ Holding an open house;

c. ] Answer [ Answering questions on listings, title, financing, closing, contracts, brokerage agreements, and legal documents;

d. ] Discuss, explain, interpret, or negotiate [ Discussing, explaining, interpreting, or negotiating a contract, listing, lease agreement, or property management agreement with anyone outside the firm; and

e. ] Negotiate or agree [ Negotiating or agreeing to any commission, commission split, management fee, or referral fee; to include such activities described in 18VAC135-20-335 A. ]

7. The supervising broker shall provide 3. Provide adequate supervision over the all unlicensed employees or assistants under the supervision of a broker as they individuals or entities associated with the firm or the firm's licensees [ . Such unlicensed individuals or entities may perform the following permitted activities:

a. ] Perform [ Performing general clerical duties, including answering the phones, responding by electronic media, and providing information shown on the listing;

b. ] Submit [ Submitting listings and changes to MLS;

c. ] Follow [ Following up on loan commitments after contracts have been ratified;

d. ] Have [ Having keys made for listings;

e. ] Compute [ Computing commission checks;

f. ] Place [ Placing signs on properties;

g. ] Act [ Acting as a courier service;

h. ] Schedule [ Scheduling appointments;

i. ] Record and deposit earnest money deposits [ Recording and depositing escrow funds;

j. Accept security deposits, periodic rent, and other payments as contracted for in a rental agreement;

k. ] Prepare [ Preparing contract forms for approval of the licensee and supervising broker;

l. Accept and sign broker-approved rental agreements, state or federal required disclosures, and any documents required for compliance with Chapter 5.1 (§ 36-96.1 et seq.) of Title 36 related to a rental transaction;

m. ] Prepare [ Preparing promotional materials and advertisements for approval of the licensee and supervising broker;

n. ] Assemble [ Assembling closing documents;

o. ] Obtain [ Obtaining required public information from governmental entities;

p. ] Monitor [ Monitoring license and personnel files;

q. ] Order [ Ordering routine repairs as directed by licensee; ] r. Receive compensation for their work at a predetermined rate that is not contingent upon the occurrence of a real estate transaction; [ and ]

s. Perform [ p. Performing any other to include such ] activities [ undertaken in the regular course of business for which a license is not required; described in 18VAC135-20-335 B. ]

8. If a supervising broker is located more than 50 miles from the place of business or the branch office and there are licensees who regularly conduct business assigned to the branch office or at the place of business, the supervising broker must certify in writing on a quarterly basis on a form provided by the board that the supervising broker complied with the requirements of this section;

9. The supervising broker must maintain the records required in this section for three years. The records must be furnished to the board's agent upon request;

10. The supervising broker ensures that affiliated real estate teams or business entities are operating in accordance with the provisions of this chapter and Chapter 21 (§ 54.1-2100 et seq.) of Title 54.1 of the Code of Virginia; and

11. The supervising broker ensures that all brokerage agreements include the name and contact information of the supervising broker 4. [ Respond in a timely manner Act with reasonable diligence and promptness in responding ] to inquiries from [ the public, ] cooperating brokers [ , and licensees affiliated with the supervising broker's firm regarding existing or contemplated transactions ].

18VAC135-20-170. Maintenance of licenses.

A. Name and address.

1. Salespersons and individual brokers shall must at all times keep the board informed of their current name and home address. Changes of name and address must be reported to the board in writing within 30 calendar days of such change. The board shall is not be responsible for the licensee's failure to receive notices, communications, and correspondence caused by the licensee's failure to promptly notify the board of any change of address.

2. A licensee may use a professional name other than a legal name if that professional name is filed with the board prior to its use. The An individual may use a professional name shall, which must include the licensee's first or last name and shall must not include any titles.

2. 3. Salespersons and brokers shall will be issued a license only to the place of business of the sole proprietorship or firm with which the salesperson or broker is active.

3. 4. Principal brokers must at all times keep the board informed of their current firm and, branch office, and business entity name and addresses and changes of name and address must be reported to the board in writing within 30 calendar days of such change. A physical address is required. A post office box will not be accepted.

B. Discharge or termination of active status.

1. When any salesperson or broker is discharged or in any way terminates his active status with a sole proprietorship or firm, it shall be is the duty of the sole proprietor or principal broker to return the license to notify the board so that it is received with the licensee name, license number, and date of termination within 10 calendar days of the date of termination or being notified of the status change. The sole proprietor or principal broker shall indicate on the license the date of termination, and shall sign the license before returning it.

2. When any principal broker is discharged or in any way terminates his active status with a firm, it shall be is the duty of the firm to notify the board and return the license to the board within three business days of termination or being notified of the status change. The firm shall indicate on the with the licensee name, license the number, and date of termination, and shall sign the license before returning it within 10 calendar days of the date of termination. See § 54.1-2109 of the Code of Virginia for termination relating to the death or disability of the principal broker.

C. When a firm or business entity is no longer authorized to conduct business in the Commonwealth, the board has the authority to terminate that firm or business entity's license until such time as the firm or business entity provides evidence that it is again authorized to conduct business in the Commonwealth.

18VAC135-20-180. Maintenance and management of escrow accounts. (Repealed.)

A. Maintenance of escrow accounts.

1. If money is to be held in escrow, each firm or sole proprietorship shall maintain in the name by which it is licensed one or more federally insured separate escrow accounts in a federally insured depository into which all down payments, earnest money deposits, money received upon final settlement, application deposits as defined by § 55.1-1200 of the Code of Virginia, rental payments, rental security deposits, money advanced by a buyer or seller for the payment of expenses in connection with the closing of real estate transactions, money advanced by the broker's client or expended on behalf of the client, or other escrow funds received by the broker or his associates on behalf of his client or any other person shall be deposited unless all principals to the transaction have agreed otherwise in writing. The balance in the escrow accounts shall be sufficient at all times to account for all funds that are designated to be held by the firm or sole proprietorship. The principal broker shall be held responsible for these accounts, including having signatory authority on these accounts. The supervising broker and any other licensee with escrow account authority may be held responsible for these accounts. All such accounts, checks, and bank statements shall be labeled "escrow" and the accounts shall be designated as "escrow" accounts with the financial institution where such accounts are established.

2. Funds to be deposited in the escrow account may include moneys that shall ultimately belong to the licensee, but such moneys shall be separately identified in the escrow account records and shall be paid to the firm by a check drawn on the escrow account when the funds become due to the licensee. Funds in an escrow account shall not be paid directly to the licensees of the firm. The fact that an escrow account contains money that may ultimately belong to the licensee does not constitute "commingling of funds" as set forth by subdivision C 2 of this section, provided that there are periodic withdrawals of said funds at intervals of not more than six months and that the licensee can at all times accurately identify the total funds in that account that belong to the licensee and the firm.

3. If escrow funds are used to purchase a certificate of deposit, the pledging or hypothecation of such certificate, or the absence of the original certificate from the direct control of the principal or supervising broker, shall constitute commingling as prohibited by subdivision C 2 of this section.

4. Lease transactions: application deposits. Any application deposit as defined by § 55.1-1200 of the Code of Virginia paid by a prospective tenant for the purpose of being considered as a tenant for a dwelling unit to a licensee acting on behalf of a landlord client shall be placed in escrow by the end of the fifth business banking day following approval of the rental application by the landlord unless all principals to the lease transaction have agreed otherwise in writing.

B. Disbursement of funds from escrow accounts.

1. a. Purchase transactions. Upon the ratification of a contract, an earnest money deposit received by the principal broker or supervising broker or his associates that is to be held in the firm's escrow account shall be placed in such escrow account by the end of the fifth business banking day following ratification, unless otherwise agreed to in writing by the principals to the transaction, and shall remain in that account until the transaction has been consummated or terminated. If a principal broker or supervising broker, or an agent of such principal broker or supervising broker, receives an earnest money deposit that will not be held in the firm's escrow account, the principal broker or supervising broker shall ensure that the earnest money deposit is delivered to the escrow agent named in the contract by the end of the fifth business banking day following receipt of the deposit, unless otherwise agreed to in writing by the principals to the transaction. In the event that the transaction is not consummated, the principal broker or supervising broker shall hold such funds in escrow until (i) all principals to the transaction have agreed in a written agreement as to their disposition, upon which the funds shall be returned to the agreed upon principal as provided in such written agreement; (ii) a court of competent jurisdiction orders such disbursement of the funds; (iii) the funds are successfully interpleaded into a court of competent jurisdiction pursuant to this section; or (iv) the broker releases the funds to the principal to the transaction who is entitled to receive them in accordance with the clear and explicit terms of the contract that established the earnest money deposit. At the option of a broker, written notice may be sent by the broker that release of such funds shall be made unless a written protest is received from the principal who is not receiving the funds by such broker within 15 calendar days of the date of such notice. Notice of a disbursement shall be given to the parties to the transaction in accordance with the contract, but if the contract does not specify a method of delivery, one of the following methods complies with this section: (i) hand delivery; (ii) United States mail, postage prepaid, provided that the sender retains sufficient proof of mailing, which may be either a United States postal certificate of mailing or a certificate of service prepared by the sender confirming such mailing; (iii) electronic means, provided that the sender retains sufficient proof of the electronic delivery, which may be an electronic receipt of delivery, a confirmation that the notice was sent by facsimile, or a certificate of service prepared by the sender confirming the electronic delivery; or (iv) overnight delivery using a commercial service or the United States Postal Service. Except as provided in the clear and explicit terms of the contract, no broker shall be required to make a determination as to the party entitled to receive the earnest money deposit. A broker who complies with this section shall be immune from liability to any of the parties to the contract.

A principal broker or supervising broker holding escrow funds for a principal to the transaction may seek to have a court of competent jurisdiction take custody of disputed or unclaimed escrow funds via an interpleader action pursuant to § 16.1-77 of the Code of Virginia.

If a principal broker, supervising broker, or an agent of such licensee is holding escrow funds for the owner of real property and such property is foreclosed upon by a lender, the principal broker, supervising broker, or agent shall have the right to file an interpleader action pursuant to § 16.1-77 of the Code of Virginia and otherwise comply with the provisions of § 54.1-2108.1 of the Code of Virginia.

If a single family residential dwelling unit is foreclosed upon, and at the date of the foreclosure sale there is a real estate purchase contract to buy such property and such contract provides that the earnest money deposit held in escrow by a firm or sole proprietorship shall be paid to a principal to the contract in the event of a termination of the real estate purchase contract, the foreclosure shall be deemed a termination of the real estate purchase contract, and the principal broker, supervising broker, or agent of the licensee may, absent any default on the part of the purchaser, disburse the earnest money deposit to the purchaser pursuant to such provisions of the real estate purchase contract without further consent from or notice to the principals.

b. Lease transactions: security deposits. Any security deposit held by a firm or sole proprietorship shall be placed in an escrow account by the end of the fifth business banking day following receipt, unless otherwise agreed to in writing by the principals to the transaction. Each such security deposit shall be treated in accordance with the security deposit provisions of the Virginia Residential Landlord and Tenant Act, Chapter 12 (§ 55.1-1200 et seq.) of Title 55.1 of the Code of Virginia, unless exempted therefrom, in which case the terms of the lease or other applicable law shall control. Notwithstanding anything in this section to the contrary, unless the landlord has otherwise become entitled to receive the security deposit or a portion thereof, the security deposit shall not be removed from an escrow account required by the lease without the written consent of the tenant. If a single-family residential dwelling unit is foreclosed upon and there is a tenant in the dwelling unit on the date of the foreclosure sale and the landlord is holding a security deposit of the tenant, the landlord shall handle the security deposit in accordance with applicable law, which requires the holder of the landlord's interest in the dwelling unit at the time of termination of tenancy to return any security deposit and any accrued interest that is duly owed to the tenant, whether or not such security deposit is transferred with the landlord's interest by law or equity, and regardless of any contractual agreements between the original landlord and his successors in interest. Nothing in this section shall be construed to prevent the landlord from making lawful deductions from the security deposit in accordance with applicable law.

c. Lease transactions: rent or escrow fund advances. Unless otherwise agreed in writing by all principals to the transaction, all rent and other money paid to the licensee in connection with the lease shall be placed in an escrow account by the end of the fifth business banking day following receipt, regardless of when received, and remain in that account until paid in accordance with the terms of the lease and the property management agreement, as applicable, except prepaid rent, which shall be treated in accordance with the prepaid rent provision of the Virginia Residential Landlord and Tenant Act, Chapter 12 (§ 55.1-1200 et seq.) of Title 55.1 of the Code of Virginia.

d. Lease transactions: rent payments. If there is in effect at the date of the foreclosure sale a tenant in a residential dwelling unit foreclosed upon and the rent is paid to a licensee acting on behalf of the landlord pursuant to a properly executed property management agreement, the licensee may collect the rent in accordance with § 54.1-2108.1 A 4 of the Code of Virginia.

2. a. Purchase transactions. Unless otherwise agreed in writing by all principals to the transaction, a licensee shall not be entitled to any part of the earnest money deposit or to any other money paid to the licensee in connection with any real estate transaction as part of the licensee's commission until the transaction has been consummated.

b. Lease transactions. Unless otherwise agreed in writing by the principals to the lease or property management agreement, as applicable, a licensee shall not be entitled to any part of the security deposit or to any other money paid to the licensee in connection with any real estate lease as part of the licensee's commission except in accordance with the terms of the lease or the property management agreement, as applicable. Notwithstanding anything in this section to the contrary, unless the landlord has otherwise become entitled to receive the security deposit or a portion thereof, the security deposit shall not be removed from an escrow account required by the lease without the written consent of the tenant. Except in the event of a foreclosure, if a licensee elects to terminate the property management agreement with the landlord, the licensee may transfer any funds held in escrow on behalf of the landlord in accordance with § 54.1-2108.1 B 5 of the Code of Virginia. If a single-family residential dwelling unit is foreclosed upon, and at the date of the foreclosure sale there is a written property management agreement between a licensee and a landlord, the property management agreement shall continue in accordance with § 54.1-2108.1 A 5 of the Code of Virginia.

3. On funds placed in an account bearing interest, written disclosure in the contract of sale or lease at the time of contract or lease writing shall be made to the principals to the transaction regarding the disbursement of interest.

4. A licensee shall not disburse or cause to be disbursed moneys from an escrow or property management escrow account unless sufficient money is on deposit in that account to the credit of the individual client or property involved.

5. Unless otherwise agreed in writing by all principals to the transaction, expenses incidental to closing a transaction (e.g., fees for appraisal, insurance, credit report) shall not be deducted from a deposit or down payment.

C. Actions including improper maintenance of escrow funds include:

1. Accepting any note, nonnegotiable instrument, or anything of value not readily negotiable, as a deposit on a contract, offer to purchase, or lease without acknowledging its acceptance in the agreement;

2. Commingling the funds of any person by a principal or supervising broker or his employees or associates or any licensee with his own funds, or those of his corporation, firm, or association;

3. Failure to deposit escrow funds in an account designated to receive only such funds as required by subdivision A 1 of this section;

4. Failure to have sufficient balances in an escrow account at all times for all funds that are designated to be held by the firm or sole proprietorship as required by this chapter; and

5. Failing as principal broker to report to the board within three business days instances where the principal broker reasonably believes the improper conduct of a licensee, independent contractor, or employee has caused noncompliance with this section.

18VAC135-20-181. Maintenance and management of escrow accounts.

A. Maintenance of escrow accounts.

1. General escrow account requirements. If money is to be held in escrow, each firm or sole proprietorship must maintain one or more federally insured escrow accounts into which all funds received in connection with a real estate transaction must be deposited.

a. The escrow account must be in the name by which the firm or sole proprietorship is licensed.

b. The principal broker will be held responsible for these accounts, including having signatory authority on these accounts.

c. The supervising broker and any other licensee with [ escrow account signatory ] authority may be held responsible for these accounts.

d. All such accounts, checks [ , ] and bank statements must be labeled "escrow" and the accounts must be designated as "escrow" accounts with the financial institution where such accounts are established.

e. The balance in the escrow accounts must be sufficient at all times to account for all funds that are designated to be held by the firm or sole proprietorship.

2. Escrow deposits.

a. All down payments, earnest money deposits, money received upon final settlement, application deposits, rental payments, rental security deposits, money advanced by a buyer or seller for the payment of expenses in connection with the closing of real estate transactions, money advanced by the broker's client or any other person must be deposited into an escrow account, in accordance with relevant law, unless all principals to the transaction have agreed otherwise in writing.

b. Funds to be deposited in the escrow account may include moneys that will ultimately belong to the licensee in the escrow account, provided such money is separately identified in the escrow account records and paid to the firm from the escrow account when funds become due to the licensee. Funds in an escrow account must not be paid directly to the licensees of the firm.

c. The fact that an escrow account contains money that may ultimately belong to the licensee does not constitute "commingling of funds" as set forth by subdivision D 2 of this section, provided that there are periodic withdrawals of the funds at intervals of not more than six months, and that the licensee can at all times accurately identify the total funds in that account which belong to the licensee and the firm.

B. Handling and disbursement of funds from escrow accounts.

1. Purchase transactions.

a. Upon the ratification of a contract, an earnest money deposit received by the principal broker or supervising broker or the broker's associates must be deposited, handled, and disbursed in accordance with § 54.1-2108.2 of the Code of Virginia.

b. Unless otherwise agreed in writing by all principals to the transaction, a licensee will not be entitled to any part of the earnest money deposit or to any other money paid to the licensee in connection with any real estate transaction as part of the licensee's commission until the transaction has been consummated.

2. Lease transactions:

a. Any application deposit, security deposit, rent, or other money paid to the licensee acting on behalf of a landlord client in connection with the lease must be deposited in an escrow account in accordance with § 54.1-2108.1 of the Code of Virginia.

b. Security deposits must be treated in accordance with the security deposit provisions of the Virginia Residential Landlord and Tenant Act, Chapter 12 (§ 55.1-1200 et seq.) of Title 55.1 of the Code of Virginia, unless exempted therefrom, in which case the terms of the lease or other applicable law will control.

c. Prepaid rent must be treated in accordance with the prepaid rent provisions of the Virginia Residential Landlord and Tenant Act, Chapter 12 (§ 55.1-1200 et seq.) of Title 55.1 of the Code of Virginia.

d. Escrow funds must remain in an escrow account until disbursed in accordance with the terms of the lease, the property management agreement, or the applicable statutory provisions.

e. Unless otherwise agreed in writing by the principals to the lease or property management agreement, as applicable, a licensee will not be entitled to any part of the security deposit or to any other money paid to the licensee in connection with any real estate lease as part of the licensee's commission except in accordance with the terms of the lease or the property management agreement, as applicable.

f. Except in the event of a foreclosure, if a licensee elects to terminate the property management agreement with the landlord, the licensee may transfer any funds held in escrow on behalf of the landlord in accordance with § 54.1-2108.1 B 5 of the Code of Virginia.

3. On funds placed in an account bearing interest, written disclosure in the contract of purchase or lease at the time of contract or lease writing must be made to the principals to the transaction regarding the disbursement of interest.

4. A licensee must not disburse or cause to be disbursed moneys from an escrow account unless sufficient money is on deposit in that account to the credit of the individual client or property involved.

5. Unless otherwise agreed in writing by all principals to the transaction, expenses incidental to closing a transaction (e.g., fees for appraisal, insurance, credit report) must not be deducted from a deposit or down payment.

C. Escrow and foreclosure.

1. Purchase transactions. If a principal broker or supervising broker is holding escrow funds for the owner of real property and such property is foreclosed upon, the principal broker or supervising broker must comply with the provisions of § 54.1-2108.1 A 1 and A 2 of the Code of Virginia.

2. Lease transactions.

a. If a single-family residential dwelling unit is foreclosed upon and there is a tenant in the dwelling unit on the date of the foreclosure sale and the landlord is holding a security deposit of the tenant, the landlord must handle the security deposit in accordance with § 54.1-2108.1 A 3 of the Code of Virginia.

b. If there is [ in effect ] at the date of the foreclosure sale a tenant in a residential dwelling unit foreclosed upon and the rent is paid to a licensee acting on behalf of the landlord pursuant to a properly executed property management agreement, the licensee may collect the rent in accordance with § 54.1-2108.1 A 4 of the Code of Virginia.

c. If a single-family residential dwelling unit is foreclosed upon, and at the date of the foreclosure sale there is a written property management agreement between a licensee and a landlord, the property management agreement must continue in accordance with § 54.1-2108.1 A 5 of the Code of Virginia.

D. Improper maintenance of escrow funds includes:

1. Accepting any note, nonnegotiable instrument, or anything of value not readily negotiable, as a deposit on a contract, offer to purchase, or lease without acknowledging its acceptance in the agreement;

2. Commingling the funds of any person by a principal or supervising broker or the broker's employees or associates or any licensee with the broker's own funds, or those of the broker's corporation, firm, or association. If escrow funds are used to purchase a certificate of deposit, the pledging or hypothecation of such certificate, or the absence of the original certificate from the direct control of the principal or supervising broker, will constitute commingling;

3. Failing to deposit escrow funds in an account designated to receive only such funds as required by subdivision A 1 of this section; and

4. Failing to have sufficient balances in an escrow account at all times for all funds that are designated to be held by the firm or sole proprietorship as required by this chapter.

18VAC135-20-185. Maintenance and management of financial records.

A. A complete record of The principal broker must maintain financial records regarding any real estate transactions conducted under the authority of the principal broker's Virginia license shall be maintained in the principal broker's place of business, or in a designated branch office. When the principal broker's office is located outside of Virginia and the firm has a branch office in Virginia, a copy of these records shall be maintained in the Virginia office Such records must be readily accessible from the broker's place of business. These The records shall show, in addition to any other requirements of the regulations, the following information must contain:

from 1. From whom money was received;

the 2. The date of receipt;

the 3. The place of deposit;

the 4. The date of deposit; and, after the transaction has been completed, the

5. The final disposition of the funds; and

6. Any other information required in this chapter.

When a principal broker's office is located outside of Virginia and the firm has a branch office in Virginia, a copy of these records must be readily accessible in the Virginia office.

B. The principal broker shall must maintain a bookkeeping or recordkeeping system which shall that must accurately and clearly disclose full compliance with the requirements outlined in this section. Accounting records which that are in sufficient detail to provide necessary information to determine such compliance shall must be maintained.

C. Actions constituting improper recordkeeping by a A principal broker or supervising broker include must maintain and retain the following records:

1. Failing to retain Each brokerage agreement must be retained for a period of three years from the date of execution [ ,. ] each brokerage agreement, each [ Each ] disclosure and consent to dual agency or dual representation [ , ] and each disclosure and consent to designated agency or designated representation must be retained for three years from the date of execution. Each disclosure of a brokerage relationship to an unrepresented party shall be retained for three years from the date provided to the party;

2. Failing to retain for a period of three years from the date of closing or from ratification, if the All documents pertaining to a transaction fails to close, including [ , ] a complete and legible copy of each executed contract of sale, any executed release from contract, any executed lease agreement, any executed property management agreement, and each settlement statement related to a real estate transaction, and unrepresented party in disclosure in the broker's control or possession unless prohibited by law;. Such records must be retained for three years from the date of closing or from ratification if the transaction fails to close.

3. Failing to maintain a A complete and accurate record of such receipts and their disbursements for moneys received on behalf of others. Such records must be retained for a period of three years from the date of the closing or termination of [ the a ] sales transaction [ , ] or [ the ] termination of a lease or conclusion of the licensee's involvement in [ the a ] lease; and

4. Failing to maintain any records required by this section for three years.

18VAC135-20-190. Advertising by licensees.

A. Definitions. The following definitions apply unless a different meaning is plainly required by the context:

"Advertising" means all forms of representation, promotion and solicitation disseminated in any manner and by any means of communication to consumers for any purpose related to licensed real estate activity.

"Contact information" means telephone number or web address.

"Disclosure" in the context of electronic media advertising means (i) advertising by the firm that contains the firm's licensed name and the city and state in which the firm's main office or branch office is located or (ii) advertising by an affiliated licensee that contains the licensee's name, the name of the firm with which the licensee is active, and the city and state in which the licensee's place of business is located, and this disclosure shall be viewable on the main page or no more than one click away from the main page. "Disclosure" in the context of all other advertising means (i) advertising by the firm that contains the firm's licensed name or (ii) advertising by an affiliated licensee that contains the licensee's name and the name of the firm with which the licensee is active.

"Viewable page" means a page that may or may not scroll beyond the borders of the screen and includes the use of framed pages.

B. A. All advertising must be under the direct supervision of the principal broker or supervising broker, in the name of the firm and, when applicable, comply with the disclosure required by § 54.1-2138.1 of the Code of Virginia. The firm's licensed name must be clearly and legibly displayed on all advertising.

C. Electronic media advertising.

1. Any electronic media advertising undertaken for the purpose of any licensed activity is subject to the provisions of this chapter.

2. All electronic media advertising that can be viewed or experienced as a separate unit (i.e., email messages and web pages) must contain disclosure that shall be viewable on the main page or is no more than one click away from the main page.

3. All electronic media listings advertised must be kept current and consistent as follows:

a. Electronic media listing information must be consistent with the property description and actual status of the listing. The licensee shall update in a timely manner material changes to the listing status authorized by the seller or property description when the licensee controls the electronic media site.

b. The licensee shall make timely written requests for updates reflecting material changes to the listing status or property descriptions when a third party electronic media listing service controls the website displaying the listing information.

D. Other advertising.

1. For sale and for lease signs placed on the property shall include but not be limited to the firm's name and the firm's primary or branch office telephone number.

2. Business cards shall include but not be limited to the licensee's name, the firm name, and contact information.

E. The following activities shall be prohibited:

1. Implying that property listed by a licensee's firm and advertised by the firm or licensee is for sale, exchange, rent or lease by the owner or by an unlicensed person;

2. Failing to include a notice in all advertising that the owner is a real estate licensee if the licensee owns or has any ownership interest in the property advertised;

3. Failing to include the firm's licensed name on any sign displayed outside each place of business;

4. Failing to obtain the written consent of the seller, landlord, optionor or licensor prior to advertising a specific identifiable property; and

5. Failing to identify the type of services offered when advertising by general description a property not listed by the party making the advertisement B. Advertising disclosure.

1. All advertising by a firm or affiliated licensee must contain a clear, legible, and conspicuous advertising disclosure, which must include (i) the firm's name and (ii) the office contact information. The office contact information and any additional required information will be specified by the principal or supervising broker in the firm's written policies.

2. All advertising by an affiliated licensee must be done under the policies of a principal or supervising broker.

3. Any property information provided [ by and in control of the licensee ] in any advertising must be consistent with the property condition and the property's current contract status. [ A licensee who knows or discovers that a third party controls the advertising must make a timely written request for changes to be made. ]

4. All advertising must be updated in a timely manner whenever there is a material change to the listing status or property descriptions. [ If A licensee who knows or discovers that ] a third party controls the advertising [ , a licensee ] must make a [ timely ] written request [ in a timely manner ] for changes to be made.

18VAC135-20-220. Disclosure of brokerage relationships.

A. Purchase transactions.

1. Unless disclosure has been previously made by a licensee, a A licensee shall must disclose whom the licensee represents to an actual or prospective buyer or seller who is not the client of the licensee and who is not represented by another licensee and with whom the licensee has substantive discussions about a specific property or properties, the person whom the licensee represents pursuant to a brokerage agreement, as that term is defined in § 54.1-2130 pursuant to § 54.1-2138 A of the Code of Virginia.

2. Except as otherwise provided in subdivision 3 of this subsection, such disclosure shall must be made in writing at the earliest practical time, but in no event later than the time specific real estate assistance is first provided. Any disclosure complying with the provisions of § 54.1-2138 A of the Code of Virginia shall will be deemed in compliance with this disclosure requirement.

3. A licensee acting as a dual or designated agent or as a dual or designated representative shall must obtain the written consent of all clients to the transaction at the earliest practical time. Such consent shall will be presumed to have been given by a client who signs a disclosure complying with the provisions of §§ 54.1-2139, 54.1-2139.01, and 54.1-2139.1 of the Code of Virginia. Such disclosure shall must be given to, and consent obtained from, (i) the buyer not later than the time an offer to purchase is presented to the licensee who will present the offer to the listing agent or seller, and (ii) the seller not later than the time the offer to purchase is presented to the seller.

4. Any disclosure required by this subsection may be given in combination with other disclosures or information, but, if so, the disclosure must be conspicuous, printed in bold lettering, all capitals, underlined, or within a separate box or as otherwise provided by § 54.1-2138 of the Code of Virginia.

B. Lease transactions.

1. Unless disclosure has been previously made by a licensee, a licensee shall must disclose to an actual or prospective landlord or tenant who is not the client of the licensee and who is not represented by another licensee, that the licensee has a brokerage relationship with another party or parties to the transaction. Such disclosure shall must be in writing and included in the application for lease or the lease itself, whichever occurs first. If the terms of the lease do not provide for such disclosure, the disclosure shall must be made in writing not later than the signing of the lease.

2. This disclosure requirement shall will not apply to lessors or lessees in single or multi-family residential units for lease terms of less than two months.

18VAC135-20-225. Audits.

A. Procedures for voluntary compliance, self audit, or third-party audit; broker immunity.

1. A principal broker or supervising broker may conduct, or may have another person conduct, an audit of the practices, policies, and procedures of his firm or sole proprietorship in accordance with § 54.1-2111.1 of the Code of Virginia. The methods and findings of the audit shall be documented as described in this subsection.

2. A principal broker or supervising broker shall notify the board in writing within 30 days following the conclusion of a self audit, or within 30 days from the receipt of the final report of a third-party audit, of any matter he believes to constitute noncompliance with the provisions of Real Estate Board regulations or law. The principal broker or supervising broker shall also submit (i) a statement that such noncompliance has been remediated or (ii) a plan to correct such noncompliance within 90 days. Failure to comply with these requirements may result in loss of immunity from regulatory enforcement action.

3. A principal broker or supervising broker shall sign and date any report made pursuant to subdivision 2 of this subsection. Such report, properly submitted, shall provide immunity from enforcement against the principal broker or supervising broker by the board for the matters reported in the report.

4. Immunity from enforcement action provided by this section shall not apply if the noncompliance with provisions of Real Estate Board regulations or law by the principal broker or supervising broker was intentional or was the result of gross negligence by the principal broker or supervising broker, including any actions by an unlicensed employee negotiating the provisions of a rental agreement as prohibited under § 54.1-2103 C of the Code of Virginia.

5. Immunity from enforcement action provided by this section shall apply only to the principal broker and supervising broker who conduct an audit and submit a voluntary compliance plan in accordance with this section and shall not extend to any other broker or salesperson who may not be in compliance with Real Estate Board regulations or law.

6. Failure to complete the voluntary compliance program within 90 days from the date of plan submission shall result in the loss of immunity from regulatory enforcement action. Repeated instances of a violation found as a result of an audit that was subject to the voluntary compliance program may be deemed by the board to constitute a failure to complete the prior voluntary compliance program.

B. A. Procedures for mandatory audit.

1. A principal broker or supervising broker shall must conduct or have a third party conduct an audit at least once during each license term in accordance with § 54.1-2106.2 of the Code of Virginia within 90 days prior to the expiration of the firm license. Such audit shall must be documented on a form developed by the board.

2. In conducting an audit of practices, policies, and procedures of the firm or sole proprietorship, the principal broker or supervising broker or a third party shall must examine and document all matters regarding the compliance by the firm or sole proprietorship with law and regulation regarding:

a. Proper handling of escrow deposits and maintenance of a complete record of financial transactions;

b. Compliance with federal and state fair housing laws and regulations if the firm or sole proprietorship engages in residential brokerage, residential leasing, or residential property management;

c. Advertising in all forms and media;

d. Negotiation and drafting of contracts, leases, and brokerage agreements;

e. Use of unlicensed individuals;

f. Agency or independent contractor relationships;

g. Distribution of information on new or changed statutory or regulatory requirements;

h. Proper documentation of required disclosures; and

i. Such other matters as necessary to ensure the competence of licensees to comply with this chapter and Chapter 21 (§ 54.1-2100 et seq.) of Title 54.1 of the Code of Virginia.

3. If at the conclusion of a mandatory audit the principal broker or supervising broker or third party believes there is noncompliance with the provisions of the Real Estate Board board regulations or law, the principal broker or supervising broker may use the procedures for voluntary compliance described in subsection A B of this section.

Upon request by any investigator, or by another agent of the board, a broker shall cooperate in the provision of records and documents pursuant to 18VAC135-20-240 within 10 days of receipt of the request, and for other requests by the board and its agents pursuant to 18VAC135-20-250, within 21 days of receipt B. Procedures for voluntary compliance, self-audit, or third-party audit; broker immunity.

1. A broker will have immunity from board discipline for matters self-reported when the following conditions are met:

a. A principal broker or supervising broker has conducted, or had another person conduct, an audit of the practices, policies, and procedures of the firm or sole proprietorship in accordance with § 54.1-2111.1 of the Code of Virginia.

b. The principal broker or supervising broker has signed the report conducted in accordance with this subsection.

c. A principal broker or supervising broker notifies the board in writing within 30 days following the conclusion of a self-audit, or within 30 days from the receipt of the final report of a third-party audit, of any matter the principal broker or supervising broker believes to constitute noncompliance with the provisions of board regulations or law and submits (i) a statement that such noncompliance has been remediated or (ii) a plan to correct such noncompliance within 90 days.

2. Immunity from enforcement action provided by this section will not apply if the noncompliance with provisions of board regulations or law by the principal broker or supervising broker was intentional or was the result of gross negligence by the principal broker or supervising broker [ , including any actions by an unlicensed employee negotiating the provisions of a rental agreement as prohibited under § 54.1-2103 C of the Code of Virginia ].

3. Immunity from enforcement action provided by this section will apply only to the principal broker and supervising broker who conducts an audit and submits a voluntary compliance plan in accordance with this section and will not extend to any other broker or salesperson who may not be in compliance with board regulations or law.

4. Failure to complete the voluntary compliance program within 90 days from the date of plan submission will result in the loss of immunity from regulatory enforcement action. Repeated instances of a violation found as a result of a subsequent audit that was subject to the voluntary compliance program may be deemed by the board to constitute a failure to complete the prior voluntary compliance program.

18VAC135-20-240. Provision of records information to the board.

A. Unless otherwise specified by the board, or as set forth in § 54.1-2108 of the Code of Virginia, a licensee of the Real Estate Board shall board must produce to the board or any of its the board's agents within 10 days of the request evidence of signature cards or bank records, any document, book, or record concerning any real estate transaction in which the licensee was involved, or for which the licensee is required to maintain records for inspection and copying by the board or its the board's agents. The board may extend such [ time frame timeframe ] upon a showing of extenuating circumstances prohibiting delivery within such 10-day period.

B. A licensee must respond to any other inquiry by the board or the board's agents within 21 days.

18VAC135-20-250. Response to any inquiry of the board. (Repealed.)

A licensee must respond to an inquiry by the board, other than requested under 18VAC135-20-240, or its agents within 21 days.

18VAC135-20-260. Prohibited acts.

The following are prohibited acts:

1. Furnishing substantially inaccurate or incomplete information to the board in obtaining, renewing, reinstating, or maintaining Obtaining or attempting to obtain, renew, reinstate, or maintain a license or certification by false or fraudulent representation;

2. Holding more than one license as a real estate broker or salesperson in Virginia, except as provided in this chapter;

3. As a currently licensed real estate salesperson, sitting for the licensing examination for a salesperson's license;

4. As a currently licensed real estate broker, sitting for a real estate licensing examination;

5. 3. Signing an experience verification form without direct supervision or actual knowledge of the applicant's activities as defined in § 54.1-2100 of the Code of Virginia or unreasonably refusing to sign an experience verification form;

6. 4. Having been convicted or found guilty regardless of the manner of adjudication in any jurisdiction of the United States of a misdemeanor involving fraudulent [ and or ] dishonest acts, sexual offense, non-marijuana drug distribution, or physical injury battery, or any felony, there being no appeal pending therefrom or the time for appeal having elapsed. Review of convictions shall will be subject to the requirements of § 54.1-204 of the Code of Virginia. Any plea of nolo contendere shall be considered a conviction for the purposes of this subdivision;

7. 5. Failing to inform the board in writing within 30 days of pleading guilty or nolo contendere or being convicted or found guilty regardless of adjudication of any convictions as stated described in subdivision 6 4 of this section;

8. 6. Having had a license as a real estate broker or real estate salesperson a professional or occupational license that was suspended, revoked, or surrendered in connection with a disciplinary action or that has been the subject of discipline in any jurisdiction;

9. 7. Failing to inform the board in writing within 30 days of a disciplinary action as stated described in subdivision 8 6 of this section;

10. 8. Having been found in a court or an administrative body of competent jurisdiction to have violated the Virginia Fair Housing Act, the Fair Housing Laws of any jurisdiction of the United States, including Title VIII of the Civil Rights Act of 1968 (82 Stat. 73) or the Civil Rights Act of 1866 (14 Stat. 27), there being no appeal therefrom or the time for appeal having elapsed;

9. Knowingly providing false, misleading, or incomplete information to an inquiry by the board or any of its agents;

10. Violating, inducing another to violate, cooperating with another to violate, or combining or conspiring with or acting as agent, partner, or associate for another to violate any of the provisions of Chapter 1 (§ 54.1-100 et seq.), 2 (§ 54.1-200 et seq.), 3 (§ 54.1-300 et seq.) [ , ] or 21 (§ 54.1-2100 et seq.) of Title 54.1 of the Code of Virginia, or any of the regulations of the board;

11. Actions constituting failing Failing to act as a real estate broker or salesperson in such a manner as to safeguard the interests of the public, including which includes the following:

a. A principal broker or supervising broker failing to ensure proper supervision and accountability over the firm's day-to-day financial dealings, escrow account, and daily operations;

b. A broker failing to disburse funds from an escrow account according to the regulations or failing to properly retain documents relating to the basis for disbursal;

c. A broker failing to ensure the licensees for whom the broker has oversight responsibility hold active licenses while practicing real estate;

d. A broker failing to provide accurate and timely reports to the board about a licensee's compliance with the board's laws and regulations;

e. d. A broker failing to have signatory authority on all accounts;

f. e. A broker failing to account for or remit any moneys coming into a licensee's the broker’s possession that belong to another;

g. f. A licensee failing to submit to the broker in a timely manner, all earnest money deposits escrow money, contracts, listing brokerage and other representation agreements, deeds of lease, or leasing agreements, disclosures, and any other documents for which the broker has oversight responsibility;

h. g. A licensee negotiating leases for a performing regulated activities [ for any third party ] through an unlicensed firm or without a principal broker [ outside the licensee's brokerage firm or sole proprietorship ], except for [ entities instances ] in which the licensee has an ownership interest [ , outside the licensee's brokerage firm or sole proprietorship in a property ];

i. h. A licensee operating an unlicensed firm or acting as a principal broker;

j. i. A licensee practicing real estate with an inactive or expired license;

k. j. A licensee knowingly providing the broker with an earnest money deposit check from an account with insufficient funds;

l. k. A licensee allowing unsupervised providing access to a home property without the owner's authorization; m. A licensee failing to inform the broker of a transaction; and

n. l. A licensee submitting unauthorized altered copies of a contract to the broker; and

12. Actions constituting engaging Engaging in improper, fraudulent, or dishonest conduct, including which includes the following:

a. A licensee attempting to divert commission from the firm or sole proprietorship and direct payment to a licensee or an unlicensed individual who is not a party to the transaction;

b. A licensee fabricating or altering any document with the intent to mislead;

c. A licensee signing any documents on a client's behalf without first obtaining a client's the proper written permission or legal authorization to sign said the documents on the client's behalf;

d. A licensee making an earnest money escrow deposit payable to himself the licensee or negotiating the check without written authority;

e. A licensee knowingly misrepresenting ownership of a property;

f. A licensee submitting copies of the same earnest money deposit check for inclusion with multiple offers;

g. A licensee entering into agreements to be compensated for real estate services while the licensee's without an active license is inactive;

h. A licensee representing in offers that the licensee received the an earnest money deposit when the licensee has not received such deposit or knows the check payment is worthless; and

i. A licensee misrepresenting who is holding the earnest money an escrow deposit; and

j. A licensee sitting for an examination for a license the licensee already obtained or taking an examination on behalf of another.

18VAC135-20-270. Conflict of interest.

Actions constituting a conflict of interest include:

1. Being active with a real estate broker other than the licensee's principal broker, without the written consent of the principal broker; and

2. Acting for more than one client in a transaction governed by the provisions of §§ 54.1-2139, 54.1-2139.01, and 54.1-2139.1 of the Code of Virginia without first obtaining the written consent of all clients; and 3. Performing regulated activities as a standard agent, limited service agent, or independent contractor for any client outside the licensee's brokerage firm(s) or sole proprietorship(s).

18VAC135-20-280. Improper brokerage commission financial transactions and dealings.

Actions resulting in an improper brokerage commission A. Improper financial transactions and dealings include:

1. Offering to pay or, paying a transaction-based fee, fees, or other providing valuable consideration to any person not licensed in this or any jurisdiction for services that require a real estate license;

2. Accepting a commission, fee, compensation, or other valuable consideration, as a real estate salesperson or associate broker, for any licensed real estate services activity from any person or entity except the licensee's principal broker or supervising broker at the time of the transaction licensed real estate activity was performed without the prior written consent of the licensee's principal broker;

3. Receiving financial benefit from the use of any information about the property, the transaction licensed real estate activity, or the parties to the transaction, when the information is gained as a result of the performance of acts specified in Chapter 21 (§ 54.1-2100 et seq.) of Title 54.1 of the Code of Virginia licensed real estate activity without the prior written consent of the licensee's principal broker, the clients, and, when applicable, the parties to the transaction;

4. Receiving financial benefit from any person other than the licensee's principal broker at the time of the transaction, for the performance of any of the acts specified in Chapter 21 (§ 54.1-2100 et seq.) of Title 54.1 of the Code of Virginia without the prior written consent of the licensee's principal broker;

5. 4. Receiving financial benefit or other valuable consideration for any work or service related to a transaction without the prior written acknowledgment of the person paying for such work or service; and

6. 5. Making a listing contract or lease which provides for a "net" return to the seller/lessor seller or lessor, leaving the licensee free to sell or lease the property at any price he the licensee can obtain in excess of the "net" price named by the seller/lessor seller or lessor.

B. Actions constituting improper dealing include offering real property for sale or for lease without the knowledge and consent of the owner or the owner's authorized representative [ without taking reasonable steps to verify identity ], or on any terms other than those authorized by the owner or the owner's authorized representative.

18VAC135-20-290. Improper dealing. (Repealed.)

Actions constituting improper dealing include:

1. Offering real property for sale or for lease without the knowledge and consent of the owner or the owner's authorized representative, or on any terms other than those authorized by the owner or the owner's authorized representative;

2. Placing a sign on any property without the consent of the owner of the property or the owner's authorized representative; and

3. Causing any advertisement for sale, rent, or lease to appear in any format or medium without including in the advertisement the name of the firm or sole proprietorship.

18VAC135-20-300. Misrepresentation/omission Misrepresentation or omission.

Actions constituting misrepresentation or omission, or both, include:

1. Using "bait and switch" tactics by advertising or offering real property for sale or rent with the intent not to sell or rent at the price or terms advertised, unless the advertisement or offer clearly states that the property advertised is limited in specific quantity or for a specified time period and the licensee did in fact have at least that quantity for sale or rent at that price or terms at the time of advertising, including listing status and condition of property;

2. Failure by Failing as a licensee representing a seller or landlord as a standard agent to disclose in a timely manner to a prospective purchaser or tenant all material adverse facts pertaining to the physical condition of the property which that are actually known by the licensee;

3. Failing as a licensee to tender promptly to the buyer and seller client or unrepresented party every written offer, every written counteroffer, and every written rejection to purchase, option, or lease obtained on the property involved;

4. Failure by Failing as a licensee acting as an agent to disclose in a timely manner to the licensee's client all material facts related to the property or concerning the transaction when the failure to so disclose would constitute failure by the licensee to exercise ordinary care as defined in the brokerage agreement;

5. Notwithstanding the provisions of subdivision 4 of this section, a licensee acting as a dual representative shall not disclose Failing to provide in a timely manner to all principals to the transaction written notice of any material changes to the transaction;

6. Disclosing to one client represented in the dual representation confidential information relating to the transaction obtained during the representation of another client in the same dual representation unless otherwise provided by law when acting as a dual agent or dual representative;

6. 7. Failing to include the complete terms and conditions of the real estate transaction, including but not limited to any lease, property management agreement, or offer to purchase;

7. 8. Failing to include in any application, lease, or offer to purchase identification of all those holding any deposits;

8. 9. Knowingly making any false statement or report, or willfully misstating the value of any land, property, or security for the purpose of influencing in any way the action of any lender upon:

a. Applications, advance discounts, purchase agreements, repurchase agreements, commitments, or loans;

b. Changes in terms or extensions of time for any of the items listed in this subdivision 8 9 a of this section whether by renewal, deferment of action, or other means without the prior written consent of the principals to the transaction;

c. Acceptance, release, or substitution of security for any of the items listed in subdivision 8 9 a of this section without the prior written consent of the principals to the transaction;

9. 10. Knowingly making any material misrepresentation; and

10. 11. Making a false promise through agents, salespersons, advertising, or other means.

18VAC135-20-310. Improper delivery of instruments.

Actions constituting improper delivery of instruments include:

1. Failing to make prompt delivery to each principal to a transaction, complete and legible copies of any written disclosures required by §§ 54.1-2138, 54.1-2139, 54.1-2139.01, and 54.1-2139.1 of the Code of Virginia, listings, [ lease leases ], offers to purchase, counteroffers, addenda and ratified agreements, and other documentation required by the agreement;

2. Failing to provide in a timely manner to all principals to the transaction written notice of any material changes to the transaction;

3. 2. Failing to deliver to the seller and buyer, at the time a real estate transaction is completed, a complete and accurate statement of receipts and disbursements of moneys received by the licensee, duly signed and certified by the principal or supervising broker or his the broker's authorized agent; provided, however, if the transaction is closed by a settlement agent other than the licensee or his the licensee's broker, and if the disbursement of moneys received by the licensee is disclosed on the applicable settlement statement, the licensee shall will not be required to provide the separate statement of receipts and disbursements; and

4. 3. Refusing or failing without just cause to surrender to the rightful owner, upon demand, any document or instrument which that the licensee possesses.

[ 18VAC135-20-335. Activities to be performed by licensees; activities permitted to be performed by non-licensees.

A. The following activities may only be performed by an individual or business entity licensed in accordance with this chapter:

1. Showing property;

2. Holding an open house;

3. Answering questions on listings, title, financing, closing, contracts, brokerage agreements, and legal documents;

4. Discussing, explaining, interpreting, or negotiating a contract, listing, lease agreement, or property management agreement with anyone outside the firm; and

5. Negotiating or agreeing to any commission, commission split, management fee, or referral fee.

B. The following activities may be performed by an unlicensed individual or entity:

1. Performing general clerical duties, including answering telephones, responding by electronic media, and providing information shown on the listing;

2. Submitting listings and changes to MLS;

3. Following up on loan commitments after contracts have been ratified;

4. Having keys made for listings;

5. Computing commission checks;

6. Placing signs on properties;

7. Acting as a courier service;

8. Scheduling appointments;

9. Recording and depositing escrow funds;

10. Accepting security deposits, periodic rent, and other payments as contracted for in a rental agreement;

11. Preparing contract forms for approval of the licensee and supervising broker;

12. Accepting and signing broker-approved rental agreements, state or federal required disclosures, and any documents required for compliance with Chapter 5.1 (§ 36-96.1 et seq.) of Title 36 of the Code of Virginia related to a rental transaction;

13. Preparing promotional materials and advertisements for approval of the licensee and supervising broker;

14. Assembling closing documents;

15. Obtaining required public information from governmental entities;

16. Monitoring license and personnel files;

17. Ordering routine repairs as directed by licensee; and

18. Performing any other activities undertaken in the regular course of business for which a license is not required. ]

18VAC135-20-340. Effect of disciplinary action on subordinate licensees.

Action by the board resulting in the revocation, suspension, or denial of renewal of the license of any principal broker or sole proprietor shall will automatically result in an order that the licenses of any and all individuals active with the affected firm be returned to the board until such time as they the licenses are reissued upon the written request of a sole proprietor or principal broker pursuant to 18VAC135-20-170 B.

18VAC135-20-345. Effect of disciplinary action on certificates, approvals, and concurrent licenses.

The board shall will suspend, revoke [ , ] or deny renewal of existing concurrent broker licenses when the board suspends, revokes, or denies renewal of another broker's license held by the same individual. The board will suspend, revoke, or deny renewal of existing instructor certificates and instructor approval when the board suspends, revokes, or denies renewal of a license held by the same individual.

18VAC135-20-350. Definitions. (Repealed.)

The following words and terms when used in this part, unless a different meaning is provided or is plainly required by the context, shall have the following meanings:

"Accredited university, college, community college, or other school or educational institution," as used in § 54.1-2105 B 1 a of the Code of Virginia, means those accredited institutions of higher learning approved by the Virginia Council of Higher Education or listed in the Transfer Credit Practices of Designated Educational Institutions, published by the American Association of Collegiate Registrars and Admissions Officers.

"Class hour/clock hour" means 50 minutes.

"Equivalent course" means any course encompassing the basic educational curriculum of Virginia courses and approved by the board.

"Proprietary school" means (i) a privately owned school, (ii) a real estate professional association, or (iii) a related entity, which is not under the authority of the Department of Education, but approved by the Real Estate Board to teach real estate courses.

"Provider" means an accredited university, college, community college or high school offering adult distributive education courses, or a proprietary school.

18VAC135-20-360. Proprietary school standards, instructor qualifications and course requirements Certification of proprietary schools.

A. Every applicant to the Real Estate Board board for a proprietary school certificate shall must meet the standards provided in subsection A of § 54.1-2105.02 of the Code of Virginia by submitting a CPA-certified (i) letter attesting to the applicant's net worth or (ii) a balance sheet or financial statement certified to be accurate by the applicant. Such applicant shall must show a minimum net worth of $2,000.

B. Every applicant to the Real Estate Board for certification as an instructor for prelicense education must meet two of the qualifications outlined in subdivisions 1 through 6 of this subsection:

1. A baccalaureate degree, an active Virginia real estate broker's license, and two consecutive years of discipline-free active real estate experience immediately prior to application;

2. An active Virginia real estate broker's license and five consecutive years of discipline-free active real estate experience immediately prior to application;

3. A professional designation such as, but not limited to, Accredited Land Consultant (ALC), Certified Residential Specialist (CRS), Certified Commercial Investment Member (CCIM), Certified Property Manager (CPM), Certified Residential Broker (CRB), Counselor Real Estate (CRE), Member Appraisal Institute (MAI), Society Industrial Office Realtors (SIOR), Senior Residential Appraiser (SRA), or Senior Real Estate Property Appraiser (SRPA);

4. A fully designated membership of the Real Estate Educators Association holding the Designated Real Estate Instructor (DREI) designation;

5. Possession of a valid teaching credential or certificate issued by the Commonwealth of Virginia or any other state with qualifications that are equal to or exceed Virginia teacher qualifications, or at least five years of teaching experience in an accredited public, private, or parochial school or an accredited junior college, college, or university; and

6. An attorney member of the Virginia State Bar who is engaged in the field of real estate-related law.

7. The board shall also consider evaluations from previous education courses the applicant has instructed and recommendations of course providers, coordinators, administrators, and institutions that have employed the applicant.

8. The board may waive the requirements of subdivisions 1 through 6 of this subsection upon review of proof of experience in related fields of real estate. The board has discretion to deny an applicant who has been the subject of a disciplinary action.

C. Every applicant to the Real Estate Board for approval as an instructor for continuing education and post license education shall have expertise in a specific field of real estate with at least three years of active experience and will teach only in the area of the applicant's expertise. Such applicants will be required to furnish proof of expertise, possibly including educational transcripts, professional certificates, letters of reference (a maximum of three), a resume, or any other type of documentation that will verify the applicant's expertise.

D. Prelicense courses must be acceptable to the board, be taught by a certified prelicense instructor, and are required to have a monitored, final written examination. Online distance learning courses must include a timer requiring licensees to be actively engaged online learning course content for at least 50 minutes to receive one hour of credit. Those schools which propose to offer prelicensing courses (Principles and Practices of Real Estate, Real Estate Brokerage, Real Estate Finance, Real Estate Law or Real Estate Appraisal, etc.) must submit a request, in writing, to the board prior to offering the courses and supply the following information:

1. Course content. All Principles and Practices of Real Estate courses must include the 25 topic areas specified in 18VAC135-20-400. All requests to offer broker courses must include a course syllabus acceptable to the board;

2. Name of the course's text and any research materials used for study assignments;

3. Description of any research assignments;

4. Copies of test or quizzes;

5. Information explaining how the "Principles" course will require 60 hours of study, or how each broker-related course will require 45 hours of study, in compliance with § 54.1-2105 of the Code of Virginia; and

6. Information about recordkeeping for the type of course delivery.

E. Providers of continuing education and post license education courses shall submit all subjects to the board for approval prior to initially offering the course. Correspondence and other distance learning courses offered by an approved provider must include appropriate testing procedures to verify completion of the course, including requiring licensees who complete correspondence or other distance learning courses to file a notarized affidavit certifying compliance with the course requirements with the education provider or with the licensee's own records. Online distance learning courses must include a timer requiring licensees to be actively engaged online learning course content for at least 50 minutes to receive one hour of credit. The board shall approve courses and the number of hours approved for each course based on the relevance of the subject to the performance of the duties set forth in § 54.1-2100 of the Code of Virginia.

F. Approval of prelicense, continuing education, and post license education courses shall expire on December 31 three years from the year in which the approval was issued, as indicated on the approval document.

G. All schools must establish and maintain a record for each student. The record shall include: the student's name and address, the course name and clock hours attended, the course syllabus or outline, the name of the instructor, the date of successful completion, and the board's course code. Records shall be available for inspection during normal business hours by authorized representatives of the board. Schools must maintain all student and class records for a minimum of five years.

H. All schools must provide each student with a certificate of course completion or other documentation that the student may use as proof of course completion. Such documentation shall contain the student's name, school name, course name, course approval number, course completion date, hours of credit completed, and a statement that the course is "Approved by the Real Estate Board."

I. All providers of continuing education or post license education courses shall electronically transmit course completion data to the board in an approved format within five business days of the completion of each individual course. The transmittal will include each student's name, license number, or social security number; the date of successful completion of the course; the school's code; and the board's code.

18VAC135-20-361. Certification of instructors.

A. Every applicant to the board for certification as an instructor for prelicense education must meet two of the qualifications outlined in subdivisions 1 through 7 of this subsection:

The board may waive the requirements of subdivisions 1 through 7 of subsection A upon review of proof of substantially equivalent qualifications.

B. Every applicant to the board for certification as an instructor for continuing education and post-license education must have expertise in a specific field of real estate with at least three years of active experience in that field in the five years immediately preceding the date of application and must teach only in the area of such applicant's expertise. Such applicants must furnish proof of expertise. [ Proof of expertise may include (i) educational transcripts, (ii) professional certificates, (iii) no more than three letters of reference, (iv) a resume, or (v) any other type of documentation that verifies an applicant's experience. ]

C. The board has discretion to deny an applicant who has been the subject of a disciplinary action.

18VAC135-20-362. Approval of courses.

A. Prelicense courses must be acceptable to the board, be taught by a certified prelicense instructor, and are required to have a monitored, final written assessment. All courses offered by an approved provider must include a mechanism designed to ensure reasonably that licensees are actively engaged for each class hour. Schools applying for approval to offer prelicense education courses must [ (i) electronically ] submit an application on a form prescribed by the board [ and; (ii) ] gain approval by the board prior to initially offering the course [ ; ] and [ (iii) ] supply the following information:

1. Course syllabus;

a. All Principles and Practices of Real Estate courses must include the topic areas specified in 18VAC135-20-400.

b. All requests to offer broker courses must include a course syllabus acceptable to the board;

2. Name of the course text and any research materials used for study assignments;

3. Description of any research assignments;

4. Copies of proficiency assessments, tests, or quizzes; and

5. Information about recordkeeping for the type of course delivery.

B. Continuing education and post-license education course requirements.

1. Schools applying for approval to teach continuing education and post-license education courses must [ electronically ] submit an application on a form prescribed by the board and gain approval by the board prior to initially offering the course.

2. All courses offered by an approved provider must include a mechanism designed to ensure reasonable that licensees are actively engaged for each class hour.

3. Correspondence and other distance learning courses offered by an approved provider must include appropriate testing procedures to verify completion of the course, including requiring licensees who complete correspondence or other distance learning courses to file a notarized affidavit certifying compliance with the course requirements with the education provider or with the licensee's own records.

4. The board will approve courses and the number of hours approved for each course based on the relevance of the subject to the performance of the duties set forth in § 54.1-2100 of the Code of Virginia.

5. Course content must be specific to the current laws and regulations of Virginia where applicable.

C. Approval of prelicense, continuing education, and post-license education courses, as well as post-license and continuing education instructors, will expire three years from the last day of the month in which the approval was granted by the board.

D. All schools must establish and maintain a record for each student. The record must include:

1. The student's name and address;

2. The course name and clock hours attended;

3. The course syllabus or outline;

4. The name of the instructor;

5. The date of successful completion; and

6. The board's course code.

Records must be available for inspection during normal business hours by authorized representatives of the board. Schools must maintain all student and class records for a minimum of five years.

E. All schools must provide each student with a certificate of course completion or other documentation that the student may use as proof of course completion. Such documentation must contain:

1. The student's name;

2. School name;

3. Course name;

4. Course approval number;

5. Course completion date;

6. Hours of credit completed; and

7. A statement that the course is "Approved by the Real Estate Board."

F. All providers of prelicense, continuing education, or post-license education courses must electronically transmit course completion data to the board in an approved format and method within five business days of the completion of each individual course.

[ G. All schools must appropriately update their course materials to reflect changes in applicable law or regulation when those changes take effect. Such changes do not require separate approval. ]

18VAC135-20-370. Fees. (Repealed.)

A. The application fee for an original certificate for a proprietary school shall be $265.

B. The renewal fee for proprietary school certificates expiring every two years from the last day of the month in which they were issued shall be $135.

C. If the requirements for renewal of a proprietary school certificate, including receipt of the fee by the board, are not completed within 30 days of the expiration date noted on the certificate, a reinstatement fee of $205 is required. A certificate may be reinstated for up to one year following the expiration date with payment of the reinstatement fee. After one year, the certificate may not be reinstated under any circumstances and the applicant must meet all requirements and apply as a new applicant. If the renewal requirements are not completed within 30 days of the expiration date noted on the proprietary school approval, the proprietary school shall no longer offer board-approved courses.

D. The application for an original prelicense education instructor certificate shall be $265.

E. The renewal fee for a prelicense instructor certificate expiring every two years from the last day of the month in which it was issued shall be $115.

F. If the requirements for renewal of an instructor certificate, including receipt of the fee by the board, are not completed within 30 days of the expiration date on the certificate, a reinstatement fee of $170 is required. A certificate may be reinstated for up to one year following the expiration date with payment of the reinstatement fee. After one year, the certificate may not be reinstated under any circumstances and the applicant must meet all requirements and apply as a new applicant.

G. The board in its discretion may deny renewal of a certificate for the same reasons it may deny initial approval.

18VAC135-20-380. Posting school certificate of approval and instructor certificates. (Repealed.)

Copies of school certificates of approval and instructor certificates, if applicable, must be available at the location a course is taught.

18VAC135-20-390. Withdrawal of approval.

The board may withdraw approval of any school, course [ , ] or instructor for the following reasons:

1. The school, instructors, courses, or subjects no longer meet the standards established by the board.

2. The school or instructor solicits information from any person for the purpose of discovering past examination questions or questions which that may be used in future examinations.

3. The school or instructor distributes to any person copies of examination questions, or otherwise communicates to any person examination questions, without receiving the prior written approval of the copyright owner to distribute or communicate those questions.

4. The school, through an agent or otherwise, advertises its the school's services in a fraudulent, deceptive, or misrepresentative manner.

5. Officials, instructors, or designees of the school sit for a real estate licensing examination for any purpose other than to obtain a license as a broker or salesperson.

6. A school or instructor fails to ensure the timely and accurate electronic transmission of course completion data.

18VAC135-20-400. Course content of real estate principles and practices.

The following shall must be included in the four-semester-hour or six-quarter-hour course which shall not have less than. Such course must be at least 60 class hours:

1. Economy and social impact of real estate,

2. Real estate market and analysis,

3. Property rights,

4. Contracts,

5. Deeds,

6. Mortgages and deeds of trust,

7. Types of mortgages,

8. Leases,

9. Liens,

10. Home ownership,

11. Real property and title insurance,

12. Investment,

13. Taxes in real estate,

14. Real estate financing,

15. Brokerage agreements and agency contract responsibilities,

16. Real estate marketing,

17. Real property management,

18. Search, examination, and registration of title,

19. Title closing,

20. Appraisal of residential and income producing property,

21. Planning subdivision developments and condominiums,

22. Regulatory statutes,

23. Housing legislation,

24. Fair housing statutes, and

25. Real Estate Board regulations.

18VAC135-20-410. Broker courses.

A. Brokerage shall must be a required specific course with three semester hours or six quarter hours, but not less than at least 45 class hours, constituting a complete course.

B. "Related subjects," as referred to in § 54.1-2105 of the Code of Virginia, shall must be real estate related and shall include, but are not limited to, including courses in property management, land planning and land use, business law, real estate economics, and real estate investments.

C. No more than 45 class hours of broker-related courses shall will be accepted in lieu of specific broker courses set forth in § 54.1-2105 of the Code of Virginia.

D. Schools intending to offer equivalent broker courses must submit to the board for approval a copy of the syllabus of the particular course with a cover letter requesting approval.

[ FORMS (18VAC135-20)

Exchange to Salesperson License Application, A490-02DLIC-v3 (eff. 11/2015)

Prelicense Education Instructor Certification Application, A490-0230INSTR-v5 (rev. 11/2015)

Proprietary School Certification Application, A490-0211SCHL-v2 (rev. 11/2015)

License Exchange to Salesperson License Application, A490-0225EXCHG-v6 (rev. 4/2026)

Pre-License Education Instructor Certification Application, A490-0230INSTR-v10 (rev. 4/2026)

Proprietary School Certification Application, A490-0211SCHL-v5 (rev. 4/2026)

Real Estate Firm/Sole Proprietorship Audit, F490-02AUD-v4 (rev. 7/2014)

Individual - Name/Address Change Form, A954640-02NACHG-v2 (rev. 5/2015)

Firm License Application, A490-0226FLIC-v2 (rev. 2/2013)

Branch Office License Application, A490-0226BRLIC-v2 (rev. 2/2013)

Business Entity License Transfer Application, A490-0226BETR-v2 (rev. 2/2013)

Business Entity License/Reinstatement Application, A490-0226BELIC-v3 (rev. 4/2013)

Add-on/Removal of Business Entity Member Application, A490-0226ARBEM-v2 (rev. 2/2013)

Salesperson License Application, A490-0225SLIC-v2 (rev. 2/2013)

Salesperson - Universal License Recognition (ULR) Application - A490-0225S-ULR-v3 (rev. 7/2024)

Salesperson - Activate/Transfer Application, A490-0225SAT-v2 (rev. 4/2015)

Individual - Name/Address Change Form, A954640-02NACHG-v5 (rev. 4/2026)

Firm License Application, A490-0226FLIC-v7 (rev. 4/2026)

Branch Office License Application, A490-0226BRLIC-v7 (rev. 4/2026)

Business Entity License Transfer Application, A490-0226BETR-v7 (rev. 4/2026)

Business Entity License/Reinstatement Application, A490-0226BELIC-v10 (rev. 4/2026)

Business Entity Change Application, A490-0226ARBEM-vs8 (rev. 4/2026)

Salesperson License Application, A490-0225SLIC-v13 (rev. 4/2026)

Salesperson - Universal License Recognition (ULR) Application - A490-0225S-ULR-v5 (rev. 4/2026)

Salesperson Activate/Transfer Application, A490-0225SAT-v10 (rev. 4/2026)

Place License Inactive Application, A490-0225INACT-v1 (rev. 1/2013)

Concurrent Broker License Application, A490-0225CONCUR-v3 (rev. 6/2013)

Concurrent Broker Acknowledgment Form, A490-0225CBA-v1 (rev. 2/2015)

Broker License Application, A490-0225BLIC-v2 (rev. 2/2013)

Broker - Universal License Recognition (ULR) Application - A490-0225B-UNIV-v4 (rev. 7/2024)

Broker - Activate/Transfer Application, A490-0225BAT-v2 (rev. 4/2015)

Concurrent Broker License Application, A490-0225CONCUR-v9 (rev. 4/2026)

Broker License Application, A490-0225BLIC-v14 (rev. 4/2026)

Broker - Universal License Recognition (ULR) Application - A490-0225B-UNIV-v6 (rev. 4/2026)

Broker - Activate/Transfer Application, A490-0225BAT-v11 (rev. 4/2026)

Online Approval - Broker Acknowledgment Form, A490-0225BACK-v1 (rev. 12/2014)

In-State Experience Verification Form, A490-02VAEXP-v2 (rev. 2/2013)

Signature Authority Application, A460-02SIG_AUT-v2 (rev. 1/2013)

Branch Office - Supervising Broker Change Form, A490-02SBCHG-v2 (rev. 2/2013)

Firm Principal Broker/Officer Change Form, A490-02PBOCHG-v2 (rev. 2/2013)

Out-of-State Experience Verification Form, A490-02OSEXP-v2 (rev. 2/2013)

Firm Name/Address Change Form, A490-02FNACHG-v1 (rev. 1/2013)

Supervising Broker Certification Form, A490-02CERTFRM-v1 (rev. 1/2013)

Prelicense Education Course Approval Application, A490-0214PRE-v2 (rev. 1/2014)

In-State Experience Verification Form, A490-02VAEXP-v4 (rev. 11/2015)

Signature Authority Form, A460-02SIG_AUT-v3 (rev. 11/2015)

Branch Office - Supervising Broker Change Form, A490-02SBCHG-v8 (rev. 4/2026)

Firm Principal Broker/Officer Change Form, A490-02PBOCHG-v5 (rev. 4/2026)

Out-of-State Experience Verification Form, A490-02OSEXP-v3 (rev. 11/2015)

Firm Name or Address Change Form, A490-02FNACHG-v5 (rev. 4/2026)

Prelicense Education Course Approval Application, A490-0214PRE-v9 (rev. 4/2026)

Additional Instructor Approval Application, A490-0214ADD-v3 (rev. 5/2013)

Continuing Education or Post License Course Approval Application, A490-214CE_PLE-vs10 (rev. 7/2024)

Continuing Education/Post License Course Approval Application, A490-214CE_PLE-vs11 (rev. 4/2026)

Branch Affiliation Application, A490-0225BRAFF-v5 (rev. 4/2026)

Branch Office - Address Change Form, A490-0226BOA_CHGv-2 (rev. 4/2026)

Settlement Agent Registration Application, A490-0227SAR-v3 (rev. 4/2026)

Termination of Branch Office Affiliation Application, A490-0225TERM-v1 (rev. 11/2016)

Post License Education (PLE)/Continuing Education (CE) Instructor Approval Application, A490-0230APPR-v6 (rev. 4/2026) ]

TITLE 18. PROFESSIONAL AND OCCUPATIONAL LICENSING

BOARD OF SOCIAL WORK

Proposed Regulation

Title of Regulation: 18VAC140-20. Regulations Governing the Practice of Social Work (amending 18VAC140-20-10, 18VAC140-20-30, 18VAC140-20-40 through 18VAC140-20-51, 18VAC140-20-70, 18VAC140-20-100, 18VAC140-20-105, 18VAC140-20-110 through 18VAC140-20-170).

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

Public Hearing Information:

March 6, 2026 - 10:05 a.m. - Department of Health Professions, 9960 Mayland Drive, Second Floor Conference Center, Board Room One, Henrico, VA 23233.

Public Comment Deadline: April 24, 2026.

Agency Contact: Jaime Hoyle, 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 jaime.hoyle@dhp.virginia.gov.

Basis: Section 54.1-2400 of the Code of Virginia authorizes the Board of Social Work to promulgate regulations to effectively administer the regulatory system.

Purpose: This action is necessary to protect the health, safety, and welfare of citizens because the General Assembly recognizes that the practice of social work has the potential to harm members of the public and therefore requires the board to regulate the profession.

Substance: The proposed amendments (i) clarify terminology and requirements for licensed clinical social workers (LCSWs), licensed master's social workers (LMSWs), and licensed baccalaureate social workers (LBSWs); (ii) revise the definition of ancillary services for comprehensiveness and clarity; (iii) prohibit diagnosing third parties; (iv) remove redundant provisions, terms, and definitions; (v) clarify responsibilities of LCSW candidate supervisors; (vi) add organizations to the list of approvers for continuing education; and (vii) clean up language and sentence structure to enhance clarity and readability.

Issues: There are no primary advantages or disadvantages to the public. There are no primary advantages or disadvantages to the agency or the Commonwealth.

Department of Planning and Budget Economic Impact Analysis:

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 Code of Virginia and Executive Order 19. The analysis presented represents DPB's best estimate of the potential economic impacts as of the date of this analysis.¹

Summary of the Proposed Amendments to Regulation. As the result of a periodic review,² the Board of Social Work (board) proposes to amend the regulation to improve clarity, eliminate language that is duplicative of statute, update the standards of conduct, reduce continuing education requirements for one class of licensees, and list additional organizations that may approve continuing education programs.

Background. This regulation contains the requirements to obtain and maintain licensure as a licensed baccalaureate social worker (LBSW), licensed master social worker (LMSW), and licensed clinical social worker (LCSW.) As the result of a periodic review, the board proposes to make a number of changes to this regulation. The definition of ancillary services would be updated to be more comprehensive and better reflect current practice. In particular, case management would be removed from the definition and intervention into situations on client behalf with the objectives of meeting client needs, and participation in required staff meetings would be added. Under 18VAC140-20-50 C, clarify the billing fee for supervision would be added to ensure that candidates are informed as to whether and how much they will be charged for supervision. The continued competency requirements are currently set at 15 contact hours every two years for LBSWs and LMSWs, and 30 contact hours every two years for LCSWs. The board proposes to reduce the number of hours for LBSWs from 15 to 10; the hours for LMSWs and LCSWs would be unchanged. The current requirements for continued competency specify that three of the 15 contact hours for LBSWs and LMSWs, and six of the 30 contact hours for LCSWs, must pertain to ethics or the standards of practice for the behavioral health professions or to laws governing the practice of social work in the Commonwealth. As a result, 20% of the contact hours for each profession must pertain to these topics. These requirements would be reduced to two hours (out of the proposed 10) for LBSWs, increased to four out of the 15 hours for LMSWs, and maintained at six hours for LCSWs. These changes would maintain the 20% amount for LBSWs and LCSWs, but increase it to 27% for LMSWs. The board reports that LBSWs and LMSWs were carved out of a single licensed social worker category relatively recently, and that all requirements besides the educational degree have remained the same for both license types. However, the board reports that in practice, LMSWs work with clients or patients far more than LBSWs and may have a supervisory role over other practitioners. Thus, the board chose to reduce the continuing education requirements for LBSWs, while increasing the required time spent on ethics and standards of practice for LMSWs. The current requirements for continued competency also specify how the required hours may be divided between formally organized learning activities and individual professional activities. Currently, both LBSWs and LMSWs must obtain a minimum of 10 hours of continuing education under the first category and a maximum of five hours under the second, for a total of 15 contact hours. Since the overall requirement for LBSWs would be reduced to 10 contact hours, they would be broken down to include a minimum of seven hours under the first category and a maximum of three hours under the second. The regulatory text includes a list of organizations that may certify or approve workshops, seminars, conferences, or courses that would count toward the formally organized learning activities requirement. The board proposes to add two entities to this list: the American Association for Psychoanalysis in Clinical Social Work (and its state and local affiliates) and the Virginia Association of Sex Offender Treatment Providers. 18VAC140-20-150 is amended to specify that billing arrangements must clearly state the credentials of the person rendering services, and that supervisees in social work may not bill clients directly for supervisee services. In addition, the board seeks to add a prohibition against diagnosing third parties, clarify behaviors and activities that are prohibited in regard to maintaining professional boundaries, and remove a prohibition against engaging in conversion therapy with minors as that is now redundant with statute.³

Estimated Benefits and Costs. The proposed amendments would benefit current and future LBSWs by reducing the number of continuing education contact hours they must complete to maintain a license. LCSW supervisees may benefit from increased transparency regarding billing for supervision. The proposed amendments would also benefit all licensed social workers by adding entities that may approve or certify continuing education offerings, and by updating the language under professional conduct to be more clear and comprehensive. The board reports that the specific proposed changes regarding professional conduct were adopted in response to complaints received over the past several years, which sometimes require costly investigations and disciplinary actions, and take up board time. Thus, the board would benefit from the proposed changes to the extent that they result in fewer complaints and disciplinary cases. Entities that offer workshops, seminars, conferences, or courses and are certified or approved by the American Association for Psychoanalysis in Clinical Social Work (and its state and local affiliates) or the Virginia Association of Sex Offender Treatment Providers, but not by one of the organizations on the current list, may benefit from increased demand for their offerings in that they would be newly eligible to be used for the formally organized learning activities continued competency requirement. Some entities that are certified or approved by an organization currently on the list may then face a commensurate reduction in demand for their offerings.

Businesses and Other Entities Affected. The Department of Health Professions reports that as of March 2024, there were 58 LBSWs, 1,436 LMSWs, and 11,044 LCSWs. As mentioned previously, currently licensed professionals as well as those seeking licensure in the future, would benefit from the increased flexibility and reduced requirements. The Code of Virginia requires DPB to assess whether an adverse impact may result from the proposed regulation.⁴ An adverse impact is indicated if there is any increase in net cost or reduction in net benefit for any entity, even if the benefits exceed the costs for all entities combined.⁵ The proposed amendments would reduce some requirements for LBSWs and increase flexibility, transparency, and clarity. Although the proposal to add organizations to the list of organizations that may certify or approve workshops, seminars, conferences, or courses that would count toward the formally organized learning activities requirement likely produces a net benefit, as is also noted above, some entities would likely be worse off due to reduced demand for their services as they face increased competition. Thus, an adverse impact is indicated for such entities.

Small Businesses⁶ Affected.⁷ Types and Estimated Number of Small Businesses Affected: Some small businesses that offer workshops, seminars, conferences, or courses and are certified or approved by an organization currently on the list may face a reduction in demand for their offerings. Data is not available to estimate the number of such small businesses. Costs and Other Effects: The proposed amendments do not increase costs. Some small providers of continuing education may encounter reduced demand for their services, and consequently reduced revenue. Alternative Method that Minimizes Adverse Impact: There are no clear alternative methods that both reduce adverse impact and meet the intended policy goals.

Localities⁸ Affected.⁹ The proposed amendments would neither affect any locality in particular nor create new costs for any local governments.

Projected Impact on Employment. The proposed amendments would not likely substantively affect total employment.

Effects on the Use and Value of Private Property. Businesses that that offer workshops, seminars, conferences, or courses and are certified or approved by the American Association for Psychoanalysis in Clinical Social Work (and its state and local affiliates) or the Virginia Association of Sex Offender Treatment Providers, but not by one of the organizations on the current list, may increase in value due to increased demand for their offerings. Some businesses that that are certified or approved by an organization currently on the list may face commensurate reduction in demand for their services, and a small reduction in their value. Real estate development costs would not be affected.

_____________________________

¹ Section 2.2-4007.04 of the Code of Virginia requires that such economic impact analyses determine the public benefits and costs of the proposed amendments. Further the analysis should include but not be limited to: (1) the projected number of businesses or other entities to whom the proposed regulatory action would apply, (2) the identity of any localities and types of businesses or other entities particularly affected, (3) the projected number of persons and employment positions to be affected, (4) the projected costs to affected businesses or entities to implement or comply with the regulation, and (5) the impact on the use and value of private property.

² See https://townhall.virginia.gov/L/ViewPReview.cfm?PRid=2094.

³ See § 54.1-2409.5 of the Code of Virginia.

⁴ Pursuant to § 2.2-4007.04 D: In the event this economic impact analysis reveals that the proposed regulation would have an adverse economic impact on businesses or would impose a significant adverse economic impact on a locality, business, or entity particularly affected, the Department of Planning and Budget shall advise the Joint Commission on Administrative Rules, the House Committee on Appropriations, and the Senate Committee on Finance. Statute does not define "adverse impact," state whether only Virginia entities should be considered, nor indicate whether an adverse impact results from regulatory requirements mandated by legislation.

⁵ Statute does not define "adverse impact," state whether only Virginia entities should be considered, nor indicate whether an adverse impact results from regulatory requirements mandated by legislation. As a result, DPB has adopted a definition of adverse impact that assesses changes in net costs and benefits for each affected Virginia entity that directly results from discretionary changes to the regulation.

⁶ Pursuant to § 2.2-4007.04, 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."

⁷ If the proposed regulatory action may have an adverse effect on small businesses, § 2.2-4007.04 requires that such economic impact analyses include: (1) an identification and estimate of the number of small businesses subject to the proposed regulation, (2) the projected reporting, recordkeeping, and other administrative costs required for small businesses to comply with the proposed regulation, including the type of professional skills necessary for preparing required reports and other documents, (3) a statement of the probable effect of the proposed regulation on affected small businesses, and (4) a description of any less intrusive or less costly alternative methods of achieving the purpose of the proposed regulation. Additionally, pursuant to § 2.2-4007.1 of the Code of Virginia, if there is a finding that a proposed regulation may have an adverse impact on small business, the Joint Commission on Administrative Rules shall be notified.

⁸ "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.

⁹ Section 2.2-4007.04 defines "particularly affected" as bearing disproportionate material impact.

Agency Response to Economic Impact Analysis: The Board of Social Work concurs with the economic impact analysis prepared by the Department of Planning and Budget.

Summary:

The proposed amendments (i) update standards of conduct, (ii) reduce continuing education requirements for one class of licensees, (iii) add organizations that may approve continuing education programs, (iv) improve clarity, and (v) eliminate redundant language.

18VAC140-20-10. Definitions.

A. The following words and terms when used in this chapter shall have the meanings ascribed to them in § 54.1-3700 of the Code of Virginia:

Baccalaureate social worker

Board

Casework

Casework management and supportive services

Clinical social worker

Master's social worker

Practice of social work

Social worker

B. The following words and terms when used in this chapter shall have the following meanings unless the context clearly indicates otherwise:

"Accredited school of social work" means a school of social work accredited by the Council on Social Work Education.

"Active practice" means post-licensure practice at the level of licensure for which an applicant is seeking licensure in Virginia and shall include at least 360 hours of practice in a 12-month period.

"Ancillary services" means activities such as case management, recordkeeping, referral, and coordination of services, intervention into situations on a client's behalf with the objectives of meeting the client's needs, and participation in required staff meetings.

"Clinical course of study" means graduate course work that includes specialized advanced courses in human behavior and the social environment, social justice and policy, psychopathology, and diversity issues; research; clinical practice with individuals, families, and groups; and a clinical practicum that focuses on diagnostic, prevention, and treatment services.

"Clinical social work services" include the application of social work principles and methods in performing assessments and diagnoses based on a recognized manual of mental and emotional disorders or recognized system of problem definition, preventive and early intervention services, and treatment services, including psychosocial interventions, psychotherapy, and counseling for mental disorders, substance abuse, marriage and family dysfunction, and problems caused by social and psychological stress or health impairment.

"Conversion therapy" means any practice or treatment as defined in § 54.1-2409.5 A of the Code of Virginia.

"Exempt practice" is that which meets the conditions of exemption from the requirements of licensure as defined in § 54.1-3701 of the Code of Virginia.

"Face-to-face" means the physical presence of the individuals involved in the supervisory relationship during either individual or group supervision or in the delivery of clinical social work services by a supervisee and may include the use of technology that provides real-time, interactive contact among the individuals involved.

"LBSW" means a licensed baccalaureate social worker.

"LCSW" means a licensed clinical social worker.

"LMSW" means a licensed master's social worker.

"Nonexempt practice" means that which does not meet the conditions of exemption from the requirements of licensure as defined in § 54.1-3701 of the Code of Virginia.

"NPDB" means the U.S. Department of Health and Human Services National Practitioner Data Bank.

"Supervisee" means an individual who has submitted a supervisory contract and has received board approval to provide clinical services in social work under supervision.

"Supervision" means a professional relationship between a supervisor and supervisee in which the supervisor directs, monitors, and evaluates the supervisee's social work practice while promoting development of the supervisee's knowledge, skills, and abilities to provide social work services in an ethical and competent manner.

"Supervisory contract" means an agreement that outlines the expectations and responsibilities of the supervisor and supervisee in accordance with regulations of the board.

18VAC140-20-30. Fees.

A. The board has established fees for the following:

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.

18VAC140-20-40. Requirements for licensure by examination as a licensed clinical social worker an LCSW.

Every applicant for examination for licensure as a licensed clinical social worker an LCSW shall:

1. Meet the education requirements prescribed in 18VAC140-20-49 and experience requirements prescribed in 18VAC140-20-50.

2. Submit a completed application to the board office within two years of completion of supervised experience to include:

a. Documentation, on the appropriate forms, of the successful completion of the supervised experience requirements of 18VAC140-20-50 along with documentation of the supervisor's out-of-state license where applicable. Applicants whose former supervisor is deceased, or whose whereabouts is are unknown, shall submit to the board a notarized affidavit from the present chief executive officer of the agency, corporation, or partnership in which the applicant was supervised. The affidavit shall specify dates of employment, job responsibilities, supervisor's name and last known address, and the total number of hours spent by the applicant with the supervisor in face-to-face supervision;

b. The application fee prescribed in 18VAC140-20-30;

c. Official transcript or documentation submitted from the appropriate institutions of higher education that verifies successful completion of educational requirements set forth in 18VAC140-20-49;

d. Documentation of any other health or mental health licensure or certification, if applicable; and

e. A current report from the U.S. Department of Health and Human Services National Practitioner Data Bank (NPDB).

3. Provide evidence of passage of the examination prescribed in 18VAC140-20-70.

18VAC140-20-45. Requirements for licensure by endorsement.

A. Every applicant for licensure by endorsement shall submit in one package:

1. A completed application and the application fee prescribed in 18VAC140-20-30.

2. Documentation of active social work licensure in good standing obtained by standards required for licensure in another jurisdiction as verified by the out-of-state licensing agency. Licensure in the other jurisdiction shall be of a comparable type as the licensure that the applicant is seeking in Virginia.

3. Verification of a passing score on a board-approved national exam at the level for which the applicant is seeking licensure in Virginia. The board may accept evidence that a national examination was not required for licensure by the other jurisdiction at the time the applicant was initially licensed.

4. Documentation of any other health or mental health licensure or certification, if applicable.

5. A current report from the U.S. Department of Health and Human Services National Practitioner Data Bank (NPDB).

6. Certification that the applicant is not the respondent in any pending or unresolved board action in another jurisdiction or in a malpractice claim.

B. If an applicant for licensure by endorsement has not passed a board-approved national examination at the level for which the applicant is seeking licensure in Virginia, the board may approve the applicant to sit for such examination.

18VAC140-20-49. Educational requirements for a licensed clinical social worker an LCSW.

A. The applicant for licensure as a clinical social worker shall document successful completion of one of the following: (i) a master's degree in social work with a clinical course of study from a program accredited by the Council on Social Work Education, (ii) a master's degree in social work with a nonclinical concentration from a program accredited by the Council on Social Work Education together with successful completion of the educational requirements for a clinical course of study through a graduate program accredited by the Council on Social Work Education, or (iii) a program of education and training in social work at an educational institution outside the United States recognized by the Council on Social Work Education.

B. The requirement for a clinical practicum in a clinical course of study shall be a minimum of 600 hours, which shall be integrated with clinical course of study coursework and supervised by a person who is a licensed clinical social worker an LCSW or who holds a master's or doctor's degree in social work and has a minimum of three years of experience in clinical social work services after earning the graduate degree. An applicant who has otherwise met the requirements for a clinical course of study, but who did does not have a minimum of 600 hours in a supervised field placement/practicum in clinical social work services, may meet the requirement by obtaining an equivalent number of hours of supervised practice in clinical social work services in addition to the experience required in 18VAC140-20-50.

18VAC140-20-50. Experience requirements for a licensed clinical social worker an LCSW.

A. Supervised experience. Supervised post-master's degree experience without prior written board approval will not be accepted toward licensure, except supervision obtained in another United States jurisdiction may be accepted if it met the requirements of that jurisdiction. Prior to registration for supervised experience, a person shall satisfactorily complete the educational requirements of 18VAC140-20-49.

1. Registration. An individual who proposes to obtain supervised post-master's degree experience in Virginia shall, prior to the onset of such supervision, or whenever there is an addition or change of a supervisor to a supervisor not currently approved by the board:

a. Register on a form provided by the board;

b. Submit a copy of a supervisory contract completed by the supervisor and the supervisee;

c. Submit an official transcript documenting a graduate degree and clinical practicum as specified in 18VAC140-20-49; and

d. Pay the registration of supervision fee set forth in 18VAC140-20-30.

2. Hours. The applicant shall have completed a minimum of 3,000 hours of supervised post-master's degree experience in the delivery of clinical social work services and in ancillary services that support such delivery. A minimum of one hour and a maximum of four hours of face-to-face supervision shall be provided per 40 hours of work experience for a total of at least 100 hours. No more than 50 of the 100 hours may be obtained in group supervision, nor shall there be more than six persons being supervised in a group unless approved in advance by the board. The board may consider alternatives to face-to-face supervision if the applicant can demonstrate an undue burden due to hardship, disability, or geography.

a. Supervised experience shall be acquired in no less than two nor more than four consecutive years.

b. Supervisees shall obtain throughout their hours of supervision a minimum of 1,380 hours of supervised experience in face-to-face client contact in the delivery of clinical social work services. The remaining hours may be spent in ancillary services supporting the delivery of clinical social work services.

3. An individual who does not complete the supervision requirement after four consecutive years of supervised experience may request an extension of up to 12 months. The request for an extension shall include evidence that demonstrates extenuating circumstances that prevented completion of the supervised experience within four consecutive years.

B. Requirements for supervisors of candidates for LCSW.

1. The supervisor shall hold an active, unrestricted license as a licensed clinical social worker an LCSW in the jurisdiction in which the clinical services are being rendered with at least two years of post-licensure clinical social work experience. The board may consider supervisors with commensurate qualifications if the applicant can demonstrate an undue burden due to geography or disability or if supervision was obtained in another United States jurisdiction.

2. The supervisor shall have received professional training in supervision, consisting of a three credit-hour graduate course in supervision or at least 14 hours of continuing education offered by a provider approved under 18VAC140-20-105. After the initial graduate course or 14 hours of continuing education in supervision, at least seven hours of continuing education in supervision shall be obtained by a supervisor within five years immediately preceding registration of supervision.

3. The supervisor shall not provide supervision for a family member or provide supervision for anyone with whom the supervisor has a dual relationship.

4. The board may consider supervisors a supervisor from jurisdictions a jurisdiction outside of Virginia who provided clinical social work supervision if they have the supervisor has commensurate qualifications but were was either (i) not licensed because their the jurisdiction did not require licensure or (ii) not designated as a clinical social workers worker because the jurisdiction did not require such designation.

C. Responsibilities of supervisors of candidates for LCSW. The supervisor shall:

1. Be responsible for the social work activities of the supervisee as set forth in this subsection once the supervisory arrangement is accepted;

2. Review and approve the diagnostic assessment and treatment plan of a representative sample of the clients assigned to the applicant during the course of supervision. The sample should be representative of the variables of gender, age, diagnosis, length of treatment, and treatment method within the client population seen by the applicant. It is the applicant's responsibility to ensure the representativeness of the sample that is presented to the supervisor;

3. Provide supervision only for those social work activities for which the supervisor has determined the applicant is competent to provide to clients;

4. Provide supervision only for those activities for which the supervisor is qualified by education, training, and experience;

5. Evaluate the supervisee's knowledge and document minimal competencies in the areas of an identified theory base, application of a differential diagnosis, establishing and monitoring a treatment plan, development and appropriate use of the professional relationship, assessing the client for risk of imminent danger, understanding the requirements of law for reporting any harm or risk of harm to self or others, and implementing a professional and ethical relationship with clients;

6. Be available to the applicant on a regularly scheduled basis for supervision;

7. Maintain documentation, for five years post-supervision, of which clients were the subject of supervision; and

8. Ensure that the board is notified of any change in supervision or if supervision has ended or been terminated by the supervisor; and

9. Clarify the billing fee for supervision.

D. Responsibilities of supervisees.

1. Supervisees may not directly bill for services rendered or in any way represent themselves as independent, autonomous practitioners, or licensed clinical social workers LCSWs.

2. During the supervised experience, supervisees shall use their names and the initials of their degree, and the title "Supervisee in Social Work" in all written communications.

3. Clients shall be informed in writing of the supervisee's status and the supervisor's name, professional address, and telephone number.

4. Supervisees shall not supervise the provision of clinical social work services provided by another person.

5. While providing clinical social work services, a supervisee shall remain under board-approved supervision until licensed in Virginia as a licensed clinical social worker an LCSW.

18VAC140-20-51. Requirements for licensure by examination as an LBSW or LMSW.

A. In order to be approved to sit for the board-approved examination as an LBSW or an LMSW, an applicant shall:

1. Meet the education requirements prescribed in 18VAC140-20-60.

2. Submit a completed application to the board office to include:

a. The application fee prescribed in 18VAC140-20-30; and

b. Official transcripts submitted from the appropriate institutions of higher education.

B. In order to be licensed by examination as an LBSW or an LMSW, an applicant shall:

1. Meet the requirements prescribed in 18VAC140-20-60; and

2. Submit, in addition to the application requirements of subsection A of this section, the following:

a. Verification of a passing score on the board-approved national examination;

b. Documentation of any other health or mental health licensure or certification, if applicable; and

c. A current report from the U.S. Department of Health and Human Services National Practitioner Data Bank (NPDB).

18VAC140-20-70. Examination requirement.

A. An applicant for licensure by the board as an LBSW, an LMSW, or clinical social worker an LCSW shall pass a written examination prescribed by the board.

1. The examination prescribed for licensure as a clinical social worker shall be the licensing examination of the Association of Social Work Boards at the clinical level.

2. 1. The examination prescribed for licensure as an LBSW shall be the licensing examination of the Association of Social Work Boards at the bachelor's level.

3. 2. The examination prescribed for licensure as an LMSW shall be the licensing examination of the Association of Social Work Boards at the master's level.

3. The examination prescribed for licensure as an LCSW shall be the licensing examination of the Association of Social Work Boards at the clinical level.

B. An applicant approved by the board to sit for an examination shall take that examination within two years of the date of the initial board approval. If the applicant has not passed the examination by the end of the two-year period here prescribed, the applicant shall reapply according to the requirements of the regulations in effect at that time in order to be approved for another two years in which to pass the examination.

C. If an LCSW applicant for clinical social work licensure has not passed the examination within the second two-year approval period, the applicant shall be required to register for supervision and complete one additional year as a supervisee before approval for another two-year period in which to re-take retake the examination may be granted.

18VAC140-20-100. Licensure renewal.

A. Beginning with the 2017 renewal, licensees Licensees shall renew their licenses on or before June 30 of each 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 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 the licensee's 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 To renew an active license, an LBSW shall be required to have completed complete a minimum of 30 10 contact hours of continuing education. LBSWs and LMSWs shall be required to have completed a minimum of 15 contact hours of continuing education prior to licensure the renewal in date for even years. A minimum of two of those hours shall pertain to ethics or the standards of practice for the behavioral health professions or to laws governing the practice of social work in the Commonwealth.

B. To renew an active license, an LMSW shall complete a minimum of 15 contact hours of continuing education prior to the renewal date for even years. A minimum of four of those hours shall pertain to ethics or the standards of practice for the behavioral health professions or to laws governing the practice of social work in the Commonwealth.

C. To renew an active license, an LCSW shall complete a minimum of 30 contact hours of continuing education prior to the renewal date in even years. A minimum of six of those hours shall pertain to ethics or the standards of practice for the behavioral health professions or to laws governing the practice of social work in the Commonwealth.

D. Courses or activities for all license types shall be directly related to the practice of social work or another behavioral health field. A minimum of six of those hours for licensed clinical social workers and a minimum of three of those hours for licensed social workers 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. Up to two continuing education hours required for renewal may be satisfied through delivery of social work services, without compensation, to low-income individuals receiving health services through a local health department or a free clinic organized in whole or primarily for the delivery of those services, as verified by the department or clinic. Three hours of volunteer service is required for one hour of continuing education credit.

1. E. 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 An extension shall not relieve the licensee of the continuing education requirement.

2. F. 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. G. 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 seven hours for for LBSWs, licensed clinical social workers or 10 hours for licensed social workers LMSWs, and 20 hours for LCSWs 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 American Association for Psychoanalysis in Clinical Social Work and its state and local affiliates.

(7) The Virginia Association of Sex Offender Treatment Providers.

(6) (8) The Association of Social Work Boards.

(7) (9) 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 LCSWs, a maximum of five of the required 15 hours for licensed social workers LMSWs, and a maximum of three of the required 10 hours for LBSWs 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 This activity will count for a maximum of two hours.)

b. Publication of a professional social work-related book or initial preparation or presentation of a social work-related course. (Activity This 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 or presentation of a social work-related in-service training, seminar, or workshop. (Activity This 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 This 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 This 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 in subdivision B G 1 d of this section or as a member of a state social work licensing board. (Activity This 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 This activity will count for a maximum of five hours.)

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

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

A. An LBSW, LMSW, or clinical social worker LCSW whose license has expired may renew that license within 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 renewal fee as prescribed in 18VAC140-20-30.

B. An LBSW, LMSW, or clinical social worker LCSW who fails to renew the license after one year and who wishes to resume practice shall apply for reinstatement and pay the reinstatement fee, 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:

1. Documentation of having completed all applicable continued competency hours equal to the number of years the license has lapsed, not to exceed four years;

2. Documentation of any other health or mental health licensure or certification held in another United States jurisdiction, if applicable; and

3. A current report from the U.S. Department of Health and Human Services National Practitioner Data Bank NPDB.

C. An LBSW, LMSW, or clinical social worker LCSW wishing to reactivate an inactive license shall submit the difference between the renewal fee for active licensure and the fee 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.

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 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.

18VAC140-20-150. Professional conduct.

A. The protection of the public health, safety, and welfare and the best interest of the public shall be the primary guide in determining the appropriate professional conduct of all persons whose activities are regulated by the board. Regardless of the delivery method, whether in person, by telephone, or electronically, these standards shall apply to the practice of social work.

B. Persons licensed as LBSWs, LMSWs, and clinical social workers LCSWs shall:

1. Be able to justify all services rendered to or on behalf of clients as necessary for diagnostic or therapeutic purposes.

2. Provide for continuation of care when services must be interrupted or terminated.

3. Practice only within the competency areas for which they are the licensee is qualified by education and experience.

4. Report to the board any known or suspected violations of the laws and regulations governing the practice of social work to the board.

5. Neither accept nor give commissions, rebates, or other forms of remuneration for referral of clients for professional services.

6. Ensure that clients are aware of fees and billing arrangements before rendering services. Billing arrangements must clearly state the credentials of the person rendering services. Supervisees in social work may not bill clients directly for the supervisee's services.

7. Inform clients of potential risks and benefits of services and the limitations on confidentiality and ensure that clients have provided informed written consent to treatment.

8. Keep confidential their therapeutic relationships with clients confidential and disclose client records to others only with written consent of the client, with the following exceptions: (i) when the client is a danger to self or others; or (ii) as required by law.

9. When advertising their services to the public, ensure that such the advertising is neither fraudulent nor misleading.

10. As treatment requires and with the written consent of the client, collaborate with other health or mental health providers concurrently providing services to the client.

11. Refrain from undertaking any activity in which one's the licensee's personal problems are likely to lead to inadequate or harmful services.

12. Recognize conflicts of interest and inform all parties of the nature and directions of loyalties and responsibilities involved.

13. Not engage in conversion therapy with any person younger than 18 years of age.

14. Not engage in physical contact with a client when there is a likelihood of psychological harm to the client. Social workers who engage in physical contact are responsible for setting clear and culturally sensitive boundaries.

15. 14. Not sexually harass clients. Sexual harassment includes sexual advances; sexual solicitation; requests for sexual favors; and other verbal, written, electronic, or physical contact of a sexual nature.

15. Not diagnose third parties.

C. In regard to client records, persons Persons licensed by the board shall comply with provisions of § 32.1-127.1:03 of the Code of Virginia on regarding the privacy of health records privacy and shall:

1. Maintain written or electronic clinical records for each client to include identifying information and assessment that substantiates diagnosis and treatment plans. Each record shall include: (i) a diagnosis and treatment plan, (ii) progress notes for each case activity, (iii) information received from all collaborative contacts and the treatment implications of that information, and (iv) the termination process and summary.

2. Maintain client records securely, inform all employees of the requirements of confidentiality, and provide for the destruction of records that are no longer useful in a manner that ensures client confidentiality.

3. Disclose or release records to others only with clients' expressed the client's express written consent or that of their, the express written consent of the client's legally authorized representative, or as mandated by law.

4. Ensure confidentiality in the usage of client records and clinical materials by obtaining informed consent from clients the client or their the client's legally authorized representative before (i) videotaping, (ii) audio recording, (iii) permitting third-party observation, or (iv) using identifiable client records and clinical materials in teaching, writing, or public presentations.

5. Maintain client records for a minimum of six years or as otherwise required by law from the date of termination of the therapeutic relationship with the following exceptions:

a. At minimum, records of a minor child shall be maintained for six years after attaining the child attains the age of majority or 10 years following termination, whichever comes later.

b. Records that are required by contractual obligation or federal law to be maintained for a longer period of time.

c. Records that have been transferred to another mental health professional or have been given to the client or the client's legally authorized representative.

D. In regard to dual relationships maintaining professional boundaries, persons licensed by the board shall:

1. Not engage in a dual relationship with a client or a supervisee that could impair professional judgment or increase the risk of exploitation or harm to the client or supervisee. (Examples of such a relationship include: familial, relationships; social, relationships; financial, or business relationships,; bartering,; inappropriate physical contact, such as cradling or caressing; assuming the role of a parent without consent; or a close personal relationship with a client, former client, or supervisee.) Social workers shall take appropriate professional precautions when a dual relationship cannot be avoided, such as informed consent, consultation, supervision, and documentation to ensure that judgment is not impaired and no exploitation occurs.

2. Not have any type of romantic relationship or sexual intimacies with a client or those included in collateral therapeutic services, and not provide services to those persons with whom they have the social worker has had a romantic or sexual relationship. Social workers shall not engage in romantic relationship or sexual intimacies with a former client within a minimum of five years after terminating the professional relationship. Social workers who engage in such a relationship after five years following termination shall have the responsibility to examine and document thoroughly that such a relationship did not have an exploitive exploitative nature, based on factors such as duration of therapy, amount of time since therapy, termination circumstances, client's personal history and mental status, adverse impact on the client. A client's consent to, initiation of, or participation in sexual behavior or involvement with a social worker does not change the nature of the conduct nor lift the regulatory prohibition.

3. Not engage in any romantic or sexual relationship or establish a therapeutic relationship with a current supervisee or student. Social workers shall avoid any nonsexual dual relationship with a supervisee or student in which there is a risk of exploitation or potential harm to the supervisee or student, or the potential for interference with the supervisor's professional judgment.

4. Recognize conflicts of interest and inform all parties of the nature and directions of loyalties and responsibilities involved.

5. Not engage in a personal relationship with a former client in which there is a risk of exploitation or potential harm or if the former client continues to relate to the social worker in the social worker's professional capacity.

E. Upon learning of evidence that indicates a reasonable probability that another mental health provider is or may be guilty of a violation of standards of conduct as defined in statute or regulation, persons licensed by the board shall advise their clients of their the client's right to report such misconduct to the Department of Health Professions in accordance with § 54.1-2400.4 of the Code of Virginia.

18VAC140-20-160. Grounds for disciplinary action or denial of issuance of a license or registration.

The board may refuse to admit an applicant to an examination; refuse to issue a license or registration to an applicant; or reprimand, impose a monetary penalty, place on probation, impose such terms as it may designate, suspend for a stated period of time or indefinitely, or revoke a license or registration for one or more of the following grounds:

1. Conviction of a felony or of a misdemeanor involving moral turpitude;

2. Procurement of license by fraud or misrepresentation;

3. Conducting one's practice in such a manner so as to make the practice a danger to the health and welfare of one's the person's clients or to the public. In the event a question arises concerning the continued competence of a licensee, the board will consider evidence of continuing education;

4. Being unable to practice social work with reasonable skill and safety to clients by reason of illness, excessive use of alcohol, drugs, narcotics, chemicals, or any other type of material or as a result of any mental or physical condition;

5. Conducting one's practice in a manner contrary to the standards of ethics care of social work or in violation of 18VAC140-20-150, standards of practice;

6. Performing functions outside the board-licensed area of competency;

7. Failure to comply with the continued competency requirements set forth in 18VAC140-20-105;

8. Violating or aiding and abetting another to violate any statute applicable to the practice of social work or any provision of this chapter; and

9. Failure to provide supervision in accordance with the provisions of 18VAC140-20-50 or 18VAC140-20-60.

18VAC140-20-170. Reinstatement following disciplinary action.

Any To be eligible for reinstatement, any person whose license has been suspended, revoked, or denied renewal by the board under the provisions of 18VAC140-20-160 shall, in order to be eligible for reinstatement, (i) submit a new application to the board for a license, (ii) pay the appropriate reinstatement fee, and (iii) submit any other credentials as prescribed by the board. After a hearing, the board may, at its discretion, grant the reinstatement.