TITLE 2. AGRICULTURE
VA.R. Doc. No. R16-4554; Filed January 6, 2016, 1:31 p.m.
TITLE 9. ENVIRONMENT
VA.R. Doc. No. R16-4570; Filed December 22, 2015, 1:44 p.m.
TITLE 9. ENVIRONMENT
VA.R. Doc. No. R16-4616; Filed December 22, 2015, 1:34 p.m.
TITLE 18. PROFESSIONAL AND OCCUPATIONAL LICENSING
VA.R. Doc. No. R16-4607; Filed January 4, 2016, 9:55 a.m.
TITLE 18. PROFESSIONAL AND OCCUPATIONAL LICENSING
Title of Regulation: 18VAC50-22. Board for Contractors Regulations (amending 18VAC50-22-30).
Statutory Authority: §§ 54.1-201 and 54.1-1102 of the Code of Virginia.
Effective Date: March 1, 2016.
Agency Contact: Eric L. Olson, Executive Director, Board for Contractors, 9960 Mayland Drive, Suite 400, Richmond, VA 23233, telephone (804) 367-2785, FAX (866) 430-1033, or email contractors@dpor.virginia.gov.
Summary:
The amendments (i) clarify the scope of practice for commercial improvement contracting and radon mitigation contracting and (ii) add the following additional specialties, which were under a more general specialty: drywall contracting; finish carpentry contracting; flooring and floor covering contracting; framing subcontractor; glass and glazing contracting; insulation and weather stripping contracting; steel erection contracting; tile, marble, ceramic, and terrazzo contracting; and underground utility and excavating contracting.
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.
18VAC50-22-30. Definitions of specialty services.
The following words and terms when used in this chapter unless a different meaning is provided or is plainly required by the context shall have the following meanings:
"Accessibility services contracting" (Abbr: ASC) means the service that provides for all work in connection with the constructing, installing, altering, servicing, repairing, testing, or maintenance of wheelchair lifts, incline chairlifts, dumbwaiters with a capacity limit of 300 pounds, and private residence elevators in accordance with the Virginia Uniform Statewide Building Code (13VAC5-63). The EEC specialty may also perform this work. This specialty does not include work on limited use-limited application (LULA) elevators.
"Accessibility services contracting – LULA" (Abbr: ASL) means the service that provides for all work in connection with the constructing, installing, altering, servicing, repairing, testing, or maintenance of wheelchair lifts, incline chairlifts, dumbwaiters with a capacity limit of 300 pounds, private residence elevators, and limited use-limited application (LULA) elevators in accordance with the Virginia Uniform Statewide Building Code (13VAC5-63). The EEC specialty may also perform this work.
"Alternative energy system contracting" (Abbr: AES) means the service that provides for the installation, repair or improvement, from the customer's meter, of alternative energy generation systems, supplemental energy systems and associated equipment annexed to real property. This service does not include the installation of emergency generators powered by fossil fuels. No other classification or specialty service provides this function. This specialty does not provide for electrical, plumbing, gas fitting, or HVAC functions.
"Asbestos contracting" (Abbr: ASB) means the service that provides for the installation, removal, or encapsulation of asbestos containing materials annexed to real property. No other classification or specialty service provides for this function.
"Asphalt paving and sealcoating contracting" (Abbr: PAV) means the service that provides for the installation of asphalt paving or sealcoating, or both, on subdivision streets and adjacent intersections, driveways, parking lots, tennis courts, running tracks, and play areas, using materials and accessories common to the industry. This includes height adjustment of existing sewer manholes, storm drains, water valves, sewer cleanouts and drain grates, and all necessary excavation and grading. The H/H classification also provides for this function.
"Billboard/sign contracting" (Abbr: BSC) means the service that provides for the installation, repair, improvement, or dismantling of any billboard or structural sign permanently annexed to real property. H/H and CBC are the only other classifications that can perform this work except that a contractor in this specialty may connect or disconnect signs to existing electrical circuits. No trade related plumbing, electrical, or HVAC work is included in this function.
"Blast/explosive contracting" (Abbr: BEC) means the service that provides for the use of explosive charges for the repair, improvement, alteration, or demolition of any real property or any structure annexed to real property.
"Commercial improvement contracting" (Abbr: CIC) means the service that provides for repair or improvement to structures not defined as dwellings and townhouses in the USBC. The CBC classification also provides for this function. The CIC classification specialty does not provide for the construction of new buildings, accessory buildings, electrical, plumbing, HVAC, or gas work.
"Concrete contracting" (Abbr: CEM) means the service that provides for all work in connection with the processing, proportioning, batching, mixing, conveying, and placing of concrete composed of materials common to the concrete industry. This includes but is not limited to finishing, coloring, curing, repairing, testing, sawing, grinding, grouting, placing of film barriers, sealing, and waterproofing. Construction and assembling of forms, molds, slipforms, and pans, centering, and the use of rebar are also included. The CBC, RBC, and H/H classifications also provide for this function.
"Drywall contracting" (Abbr: DRY) means the service that provides for the installation, taping, and finishing of drywall, panels and assemblies of gypsum wallboard, sheathing, and cementitious board and the installation of studs made of sheet metal for the framing of ceilings and nonstructural partitioning. The [ BLD classification CBC and RBC classifications ] and HIC and CIC specialties also provide for this function.
"Electronic/communication service contracting" (Abbr: ESC) means the service that provides for the installation, repair, improvement, or removal of electronic or communications systems annexed to real property including telephone wiring, computer cabling, sound systems, data links, data and network installation, television and cable TV wiring, antenna wiring, and fiber optics installation, all of which operate at 50 volts or less. A firm holding an ESC license is responsible for meeting all applicable tradesman licensure standards. The ELE classification also provides for this function.
"Elevator/escalator contracting" (Abbr: EEC) means the service that provides for the installation, repair, improvement, or removal of elevators or escalators permanently annexed to real property. A firm holding an EEC license is responsible for meeting all applicable individual license and certification regulations. No other classification or specialty service provides for this function.
"Environmental monitoring well contracting" (Abbr: EMW) means the service that provides for the construction of a well to monitor hazardous substances in the ground.
"Environmental specialties contracting" (Abbr: ENV) means the service that provides for installation, repair, removal, or improvement of pollution control and remediation devices. No other specialty provides for this function. This specialty does not provide for electrical, plumbing, gas fitting, or HVAC functions.
"Equipment/machinery contracting" (Abbr: EMC) means the service that provides for the installation or removal of equipment or machinery including but not limited to conveyors or heavy machinery. Boilers exempted by the Virginia Uniform Statewide Building Code (13VAC5-63) but regulated by the Department of Labor and Industry are also included in this specialty. This specialty does not provide for any electrical, plumbing, process piping, or HVAC functions.
"Farm improvement contracting" (Abbr: FIC) means the service that provides for the installation, repair, or improvement of a nonresidential farm building or structure, or nonresidential farm accessory-use structure, or additions thereto. The CBC classification also provides for this function. The FIC specialty does not provide for any electrical, plumbing, HVAC, or gas fitting functions.
"Finish carpentry contracting" (Abbr: FIN) means the service that provides for the installation, repair, and finishing of cabinets, sash casing, door casing, wooden flooring, baseboards, countertops, and other millwork. Finish carpentry does not include the installation of ceramic tile, marble, and artificial or cultured stone. The [ BLD classification CBC and RBC classifications ] and HIC and CIC specialties also provide for this function.
"Fire alarm systems contracting" (Abbr: FAS) means the service that provides for the installation, repair, or improvement of fire alarm systems that operate at 50 volts or less. The ELE classification also provides for this function. A firm with an FAS license is responsible for meeting all applicable tradesman licensure standards.
"Fire sprinkler contracting" (Abbr: SPR) means the service that provides for the installation, repair, alteration, addition, testing, maintenance, inspection, improvement, or removal of sprinkler systems using water as a means of fire suppression when annexed to real property. This specialty does not provide for the installation, repair, or maintenance of other types of fire suppression systems. The PLB classification allows for the installation of systems permitted to be designed in accordance with the plumbing provisions of the USBC. This specialty may engage in the installation of backflow prevention devices in the fire sprinkler supply main and incidental to the sprinkler system installation when the installer has received formal vocational training approved by the board that included instruction in the installation of backflow prevention devices.
"Fire suppression contracting" (Abbr: FSP) means the service that provides for the installation, repair, improvement, or removal of fire suppression systems including but not limited to halon and other gas systems, dry chemical systems, and carbon dioxide systems annexed to real property. No other classification provides for this function. The FSP specialty does not provide for the installation, repair, or maintenance of water sprinkler systems.
"Flooring and floor covering contracting" (Abbr: FLR) means the service that provides for the installation, repair, improvement, or removal of materials that are common in the flooring industry. This includes, but is not limited to, wood and wood composite flooring, tack strips or other products used to secure carpet, vinyl and linoleum, ceramic, marble, stone, and all other types of tile, and includes the installation or replacement of subflooring, leveling products, or other materials necessary to facilitate the installation of the flooring or floor covering. This does not include the installation, repair, or removal of floor joists or other structural components of the flooring system. The [ BLD classification CBC and RBC classifications ] and HIC and CIC specialties also provide for this function.
[ "Framing subcontractor" (Abbr: FRM) means the service which, while serving in the role of a subcontractor to a licensed prime contractor, provides for the construction, removal, repair, or improvement to any framing or rough carpentry necessary for the construction of framed structures, including the installation and repair of individual components of framing systems. The CBC and RBC classifications and HIC and CIC specialties also provide for this function. ]
"Gas fitting contracting" (Abbr: GFC) means the service that provides for the installation, repair, improvement, or removal of gas piping and appliances annexed to real property. A firm holding a GFC license is responsible for meeting all applicable individual (tradesman) licensure regulations.
"Glass and glazing contracting" (Abbr: GLZ) means the service that provides for the installation, assembly, repair, improvement, or removal of all makes and kinds of glass, glass work, mirrored glass, and glass substitute for glazing; executes the fabrication and glazing of frames, panels, sashes and doors; or installs these items in any structure. This specialty includes the installation of standard methods of weatherproofing, caulking, glazing, sealants, and adhesives. The [ BLD classification CBC and RBC classifications ] and HIC and CIC specialties also provide for this function.
"Home improvement contracting" (Abbr: HIC) means the service that provides for repairs or improvements to dwellings and townhouses as defined in the USBC or structures annexed to those dwellings or townhouses as defined in the USBC. The RBC classification also provides for this function. The HIC specialty does not provide for electrical, plumbing, HVAC, or gas fitting functions. It does not include new construction functions beyond the existing building structure other than decks, patios, driveways, and utility out buildings that do not require a permit per the USBC.
"Industrialized building contracting" (Abbr: IBC) means the service that provides for the installation or removal of an industrialized building as defined in the Virginia Industrialized Building Safety Regulations (13VAC5-91). This classification covers foundation work in accordance with the provisions of the Virginia Uniform Statewide Building Code (13VAC5-63) and allows the licensee to complete internal tie-ins of plumbing, gas, electrical, and HVAC systems. It does not allow for installing additional plumbing, gas, electrical, or HVAC work such as installing the service meter, or installing the outside compressor for the HVAC system. The CBC and RBC classifications also provide for this function.
"Insulation and weather stripping contracting" (Abbr: INS) means the service that provides for the installation, repair, improvement, or removal of materials classified as insulating media used for the sole purpose of temperature control or sound control of residential and commercial buildings. It does not include the insulation of mechanical equipment and ancillary lines and piping. The [ BLD classification CBC and RBC classifications ] and HIC and CIC specialties also provide for this function.
"Landscape irrigation contracting" (Abbr: ISC) means the service that provides for the installation, repair, improvement, or removal of irrigation sprinkler systems or outdoor sprinkler systems. The PLB and H/H classifications also provide for this function. This specialty may install backflow prevention devices incidental to work in this specialty when the installer has received formal vocational training approved by the board that included instruction in the installation of backflow prevention devices.
"Landscape service contracting" (Abbr: LSC) means the service that provides for the alteration or improvement of a land area not related to any other classification or service activity by means of excavation, clearing, grading, construction of retaining walls for landscaping purposes, or placement of landscaping timbers. This specialty may remove stumps and roots below grade. The CBC, RBC, and H/H classifications also provide for this function.
"Lead abatement contracting" (Abbr: LAC) means the service that provides for the removal or encapsulation of lead-containing materials annexed to real property. No other classification or specialty service provides for this function, except that the PLB and HVA classifications may provide this service incidental to work in those classifications.
"Liquefied petroleum gas contracting" (Abbr: LPG) means the service that includes the installation, maintenance, extension, alteration, or removal of all piping, fixtures, appliances, and appurtenances used in transporting, storing, or utilizing liquefied petroleum gas. This excludes hot water heaters, boilers, and central heating systems that require an HVA or PLB license. The GFC specialty also provides for this function. A firm holding an LPG license is responsible for meeting all applicable individual license and certification regulations.
"Manufactured home contracting" (Abbr: MHC) means the service that provides for the installation or removal of a manufactured home as defined in the Virginia Manufactured Home Safety Regulations (13VAC5-95). This classification does not cover foundation work; however, it does allow installation of piers covered under HUD regulations. It does allow a licensee to do internal tie-ins of plumbing, gas, electrical, or HVAC equipment. It does not allow for installing additional plumbing, gas, electrical, or HVAC work such as installing the service meter or installing the outside compressor for the HVAC system. No other specialty provides for this function.
"Marine facility contracting" (Abbr: MCC) means the service that provides for the construction, repair, improvement, or removal of any structure the purpose of which is to provide access to, impede, or alter a body of surface water. The CBC and H/H classifications also provide for this function. The MCC specialty does not provide for the construction of accessory structures or electrical, HVAC, or plumbing functions.
"Masonry contracting" (Abbr: BRK) means the service that includes the installation of brick, concrete block, stone, marble, slate, or other units and products common to the masonry industry, including mortarless type masonry products. This includes installation of grout, caulking, tuck pointing, sand blasting, mortar washing, parging, and cleaning and welding of reinforcement steel related to masonry construction. The CBC and RBC classifications and the HIC and CIC specialties also provide for this function.
"Natural gas fitting provider contracting" (Abbr: NGF) means the service that provides for the incidental repair, testing, or removal of natural gas piping or fitting annexed to real property. This does not include new installation of gas piping for hot water heaters, boilers, central heating systems, or other natural gas equipment that requires an HVA or PLB license. The GFC specialty also provides for this function. A firm holding an NGF license is responsible for meeting all applicable individual license and certification regulations.
"Painting and wallcovering contracting" (Abbr: PTC) means the service that provides for the application of materials common to the painting and decorating industry for protective or decorative purposes, the installation of surface coverings such as vinyls, wall papers, and cloth fabrics. This includes surface preparation, caulking, sanding, and cleaning preparatory to painting or coverings and includes both interior and exterior surfaces. The CBC and RBC classifications and the HIC and CIC specialties also provide for this function.
"Radon mitigation contracting" (Abbr: RMC) means the service that provides for additions, repairs or improvements to buildings or structures, for the purpose of mitigating or preventing the effects of radon gas. This function can only be performed by a firm holding [ the CBC and RBC classifications or the CIC, FIC, or HIC specialties. ] No electrical, plumbing, gas fitting, or HVAC functions are provided by this specialty.
"Recreational facility contracting" (Abbr: RFC) means the service that provides for the construction, repair, or improvement of any recreational facility, excluding paving and the construction of buildings, plumbing, electrical, and HVAC functions. The CBC classification also provides for this function.
"Refrigeration contracting" (Abbr: REF) means the service that provides for installation, repair, or removal of any refrigeration equipment (excluding HVAC equipment). No electrical, plumbing, gas fitting, or HVAC functions are provided by this specialty. This specialty is intended for those contractors who repair or install coolers, refrigerated casework, ice-making machines, drinking fountains, cold room equipment, and similar hermetic refrigeration equipment. The [ HVAC HVA ] classification also provides for this function.
"Roofing contracting" (Abbr: ROC) means the service that provides for the installation, repair, removal, or improvement of materials common to the industry that form a watertight, weather resistant surface for roofs and decks. This includes roofing system components when installed in conjunction with a roofing project, application of dampproofing or waterproofing, and installation of roof insulation panels and other roof insulation systems above roof deck. The CBC and RBC classifications and the HIC and CIC specialties also provide for this function.
"Sewage disposal systems contracting" (Abbr: SDS) means the service that provides for the installation, repair, improvement, or removal of septic tanks, septic systems, and other onsite sewage disposal systems annexed to real property.
"Steel erection contracting" (Abbr: STL) means the service that provides for the fabrication and erection of structural steel shapes and plates, regardless of shape or size, to be used as structural members, or tanks, including any related riveting, welding, and rigging. This specialty includes the fabrication, placement and tying of steel reinforcing [ bards bars ] (rods), and post-tensioning to reinforce concrete buildings and structures. The [ BLD classification CBC and RBC classifications ] and HIC and CIC specialties also provide for this function.
"Swimming pool construction contracting" (Abbr: POL) means the service that provides for the construction, repair, improvement, or removal of in-ground swimming pools. The CBC and RBC classifications and the RFC specialty also provide for this function. No trade related plumbing, electrical, backflow, or HVAC work is included in this specialty.
"Tile, marble, ceramic, and terrazzo contracting" (Abbr: TMC) means the service that provides for the preparation, fabrication, construction, and installation of artificial marble, burned clay tile, ceramic, terrazzo, encaustic, [ falence faience ], quarry, semi-vitreous, cementitious board, and other tile, excluding hollow or structural partition tile. The [ BLD classification CBC and RBC classifications ] and HIC and CIC specialties also provide for this function.
"Underground utility and excavating contracting" (Abbr UUC) means the service that provides for the construction, repair, improvement, or removal [ on public or private property whether accomplished through open excavations or through other means, including but not limited to directional drilling, auger boring, jacking and boring, trenchless technologies, wet and try taps, grouting, and slip lining, ] of main sanitary sewer collection systems, main water distribution systems, storm sewer collection systems, and the continuation of utility lines from the main systems to a point of termination up to and including the meter location for the individual occupancy, sewer collection systems at property line, or residential or single-occupancy commercial properties, or on multi-occupancy properties at manhole or wye lateral extend to an invert elevation as engineered to accommodate future building sewers, water distribution systems, or storm sewer collection systems at storm sewer structures. This specialty may install empty underground conduits in rights-of way, easements, platted rights-of-way in new site development, and sleeves for parking lot crossings if each conduit system [ installed is designed by a professional engineer or an authorized employee of a municipality, county, or public utility and the installation of such conduit ] does not include installation of any conductor wiring or connection to an energized electrical system. The H/H classification also provides for this function.
"Vessel construction contracting" (Abbr: VCC) means the service that provides for the construction, repair, improvement, or removal of nonresidential vessels, tanks, or piping that hold or convey fluids other than sanitary, storm, waste, or potable water supplies. The H/H classification also provides for this function.
"Water well/pump contracting" (Abbr: WWP) means the service that provides for the installation of a water well system, including geothermal wells, which includes construction of a water well to reach groundwater, as defined in § 62.1-255 of the Code of Virginia, and the installation of the well pump and tank, including pipe and wire, up to and including the point of connection to the plumbing and electrical systems. No other classification or specialty service provides for construction of water wells. This regulation shall not exclude [ the ] PLB, ELE, or [ HVAC HVA classification ] from installation of pumps and tanks.
Note: Specialty contractors engaging in construction that involves the following activities or items or similar activities or items may fall under the CIC, HIC, and FIC specialty services, or they may fall under the CBC or RBC [ classifications classification ].
| Appliances | Fireplaces | Rubber linings |
| Awnings | Fireproofing | Sandblasting |
| Blinds | Fixtures | Scaffolding |
| Bulkheads | Floor coverings
| Screens |
| Cabinetry
| Flooring
| [ Sheet metal ] |
| [ Carpentry ] | Floors
| Shutters |
| Carpeting | Glass
| Siding |
| Casework
| Glazing
| Skylights |
| Ceilings | Grouting | Storage bins and lockers |
| Chimneys | [ Grubbing ] | Stucco |
| Chutes | Guttering | [ Temperature controls ] |
| [ Conduit rodding ] | Insulation
| Terrazzo
|
| Curtains | Interior decorating | Tile
|
| Curtain walls | Lubrication | Vaults |
| Decks | Metal work | Vinyl flooring
|
| Doors | Millwrighting | Wall panels |
| Drapes | Mirrors | Wall tile
|
| Drywall
| Miscellaneous iron | Waterproofing |
| Epoxy | Ornamental iron | Weatherstripping
|
| Exterior decoration | Partitions | Welding
|
| Facings | Protective coatings | Windows |
| Fences | Railings | Wood floors
|
| Fiberglass | Rigging | |
NOTICE: The following forms used in administering the regulation were filed by the agency. The forms are not being published; however, online users of this issue of the Virginia Register of Regulations may click on the name of a form with a hyperlink to access it. The forms are also available from the agency contact or may be viewed at the Office of the Registrar of Regulations, General Assembly Building, 2nd Floor, Richmond, Virginia 23219.
FORMS (18VAC50-22)
Contractor Licensing Information, A501-27INTRO v-4 (rev. 1/2016)
Requirements for Qualified Individuals, A501-27EXINFO-v5 (rev. 1/2016)
Contractor's License Application, A501-27LIC-v7 (rev. 1/2016)
Additional Specialty Designation Application, A501-27ADDSP-v7 (rev. 1/2016)
Adverse Financial History Reporting Form, A406-01AFIN-v1 (eff. 2/2015)
Change in Qualified Individual and Designated Employee Application, A501-27CH_QIDE-v5 (rev. 7/2013)
Change in Qualified Individual and Designated Employee Application, A501-27CH_QIDE-v7 (rev. 1/2016)
[ Change of Responsible Management Application, A501-27CHRM-v4 (rev. 12/2012)
Certificate of License Termination, A501-27TERM-v3 (rev. 12/2012)
Change of Responsible Management Application, A501-27CHRM-v4 (rev. 1/2016)
Certificate of License Termination, A501-27TERM-v4 (rev. 12/2015) ]
Criminal Conviction Reporting Form, A406-01CCR-v1 (eff. 5/2015)
Disciplinary Action Reporting Form, A406-01DAR-v1 (eff. 5/2015)
[ Education Provider Registration/Course Approval Application, A501-27EDREG-v5 (rev. 12/2012)
Education Provider Listing Application, A501-27EDLIST-v3 (rev. 12/2012)
Education Provider Registration/Course Approval Application, A501-27EDREG-v5 (rev. 1/2014)
Education Provider Listing Application, A501-27EDLIST-v4 (rev. 1/2014) ]
Financial Statement, A501-27FINST-v4 (rev. 12/2012)
Change in License Class Application, A501-27CHLIC-v7 (rev. 1/2016)
Firm – Residential Building Energy Analyst Application, A501-2707LIC-v2 (rev. 7/2013)
Statement of Consumer Protections, RBC-9.1 (rev. 12/2014)
Contractor's Temporary License Application, A501-2703LIC-v2 (rev. 1/2016)
VA.R. Doc. No. R14-4047; Filed January 5, 2016, 11:59 a.m.
TITLE 22. SOCIAL SERVICES
Title of Regulation: 22VAC40-295. Temporary Assistance for Needy Families (TANF) (adding 22VAC40-295-145).
Statutory Authority: § 63.2-217 of the Code of Virginia.
Public Hearing Information: No public hearings are scheduled.
Public Comment Deadline: March 25, 2016.
Agency Contact: Mark Golden, Program Manager, Division of Benefit Programs, Department of Social Services, 801 East Main Street, Richmond, VA 23219, telephone (804) 726-7385, FAX (804) 726-7357, or email mark.golden@dss.virginia.gov.
Basis: Pursuant to § 63.2-217 of the Code of Virginia, the State Board of Social Services has authority to promulgate rules and regulations necessary for operation of all assistance programs.
Purpose: The purpose of the proposed action is to add penalties for persons violating spending restrictions. One of the main purposes of the Temporary Assistance for Needy Families (TANF) program, as set forth in the authorizing federal statute, the Personal Responsibility and Work Opportunity Reconciliation Act (Public Law 104-193), is to "provide assistance to needy families so that children can be cared for in their own homes or in the homes of relatives." TANF benefits are intended to be used to ensure that the needs of children are addressed in an effort to help them become productive citizens. TANF is not intended to provide assistance to enable a child's parent to purchase alcohol, gamble, obtain tattoos or to use it for any other purpose restricted by § 63.2-621 of the Code of Virginia. The intent of the penalties in the proposed regulation is to deter parents from using TANF for inappropriate purposes, thereby ensuring the benefits are used for the subsistence needs of the child to promote the child's health, safety, and welfare.
Substance: A new section will be added to the regulation. Recipients of TANF who violate the provisions of § 63.2-621 of the Code of Virginia will be penalized with the progressive loss of benefits. The first offense will result in the loss of TANF financial assistance for one month. The second offense will result in the loss of TANF financial assistance for three months. Subsequent offenses will result in the loss of TANF financial assistance for six months.
Issues: The primary advantage to the general public and the Commonwealth is that the proposed regulation will provide a deterrent to misusing taxpayer funded public benefits. The proper use of assistance will result in more efficient use of funds and will ensure that funds are used as intended for providing necessities to poor families with children. There are no known disadvantages to the regulation.
Department of Planning and Budget's Economic Impact Analysis:
Summary of the Proposed Amendments to Regulation. To enact new legislative restrictions on temporary assistance to needy families (TANF) expenditures contained in § 63.2-621, the State Board of Social Services (Board) proposes to amend its TANF regulation to include sanctions for violating § 63.2-621.
Result of Analysis. There is insufficient information available to ascertain whether the benefits of this proposed regulatory change will outweigh its costs.
Estimated Economic Impact. To comply with federal restrictions placed on TANF funds, the General Assembly passed a law (§ 63.2-621) that prohibits electronic benefits transfers (EBT) used to purchase alcoholic beverages, tobacco products, lottery tickets or sexually explicit visual materials.
The law also prohibits any transaction, including ATM transactions, at government stores established for the sale of alcoholic beverages (ABC stores) and establishments in which pari-mutuel betting or charitable gaming is conducted, tattooing or body piercing is performed for hire or consideration and there is adult oriented entertainment provided by semi-nude or nude performers.
The Board now proposes to amend TANF regulations to set forth penalties for TANF recipients who use their EBT cards in prohibited establishments or to purchase prohibited items. The Board proposes to suspend benefits for one month for a first offense, three months for a second offense and six months for third and subsequent offenses.
Board staff report that they will investigate reports of prohibited use of TANF benefits and apply sanctions when the reports are accurate. Board staff also report that the average TANF benefit per family is $258 per month and that the Board expects there will be very low numbers of incidences where TANF benefits are suspended under these new provisions (approximately five suspensions per month for first time offenses). If benefit suspensions follow the pattern expected by the Board, approximately 60 families a year (out of the 30,000 that receive TANF) will lose one month of benefits. These families in total will lose $15,480 per year and the state will see an average savings of $15,480 per year that will not be paid out in TANF benefits.
While it is fairly easy to estimate the number of families that might be affected by these regulatory changes, estimating the number of businesses that might be affected is more complicated. There are thousands of grocery and drug stores across the Commonwealth that sell both wine and beer and tobacco products. The Department of Alcoholic Beverage Control (ABC) reports that there are 350 ABC stores around the state. Depending on how broadly sexually explicit visual material is defined, all bookstores in Virginia may be on the list of affected businesses. Nude and semi-nude bars and gentlemen's clubs will be affected although the Department of Planning and Budget (DPB) does not have access to the resources needed to estimate the number of these establishments in Virginia. The Department of Professional and Occupational Regulation (DPOR) reports that, as of April 1, 2014, there are 248 tattoo parlors and 196 body piercing establishments which may be affected. The Virginia Department of Agriculture and Consumer Services (VDACS) does not have any estimates of how many groups or establishments conduct charitable gaming but does report that such groups include churches, athletic associations and school clubs such as band boosters. All of these entities may lose revenues on account of § 63.2-621 and this proposed regulation. If the Board's estimates of sanction incidences and scope are correct, the total revenue lost to all businesses, clubs and organizations will be $15,480 per year. If the Board's estimates are not correct, total revenues lost will be equal to total sanctions imposed.
Businesses and Entities Affected. Board staff reports that approximately 30,000 families in the Commonwealth receive TANF benefits. All of these families, as well as many businesses, groups and establishments have the potential to be affected by these proposed regulatory changes. Please see the paragraph above this section for estimates of businesses, groups and establishments that may be affected.
Localities Particularly Affected. No locality will be particularly affected by this proposed regulatory action.
Projected Impact on Employment. Given the likely scope of potential revenue lost, this regulatory action is unlikely to have an effect on employment in the Commonwealth.
Effects on the Use and Value of Private Property. To the extent that monies received through TANF benefits can be considered the recipients' private property, this proposed regulation, and the law that necessitates it, restrict the use of that private property.
Small Businesses: Costs and Other Effects. No small businesses will incur costs on account of this regulatory action, but some small businesses may lose some revenue.
Small Businesses: Alternative Method that Minimizes Adverse Impact. There is likely no alternative method of regulation that would both meet the General Assembly's and the Board's goals and be less costly for affected businesses.
Real Estate Development Costs. This regulatory action will likely have no effect on real estate development costs in the Commonwealth.
Agency's Response to Economic Impact Analysis: The Department of Social Services reviewed the economic impact analysis prepared by the department of Planning and Budget and has no comment.
Summary:
The proposed amendment establishes penalties for recipients of benefits from the Temporary Assistance for Needy Families (TANF) program who violate § 63.2-621 of the Code of Virginia, which restricts how TANF program benefits may be used. The first offense will result in the loss of TANF financial assistance for one month; the second offense will result in the loss of TANF financial assistance for three months; and subsequent offenses will result in the loss of TANF financial assistance for six months.
22VAC40-295-145. Sanctions for violating spending restrictions.
Local departments of social services shall be authorized to sanction recipients of TANF by the full amount of the TANF grant for violating the TANF spending restrictions in § 63.2-621 of the Code of Virginia, as follows:
1. For the first offense, the full amount of TANF benefits for the family shall be suspended for one calendar month.
2. For the second offense, the full amount of TANF benefits for the family shall be suspended for three calendar months.
3. For the third offense, or subsequent offenses, the full amount of TANF benefits for the family shall be suspended for six calendar months.
VA.R. Doc. No. R14-3915; Filed December 22, 2015, 10:02 a.m.