TITLE 4. CONSERVATION AND NATURAL RESOURCES

MARINE RESOURCES COMMISSION

Final Regulation

Title of Regulation: 4VAC20-1420. Pertaining to Atlantic Tarpon (adding 4VAC20-1420-10 through 4VAC20-1420-50).

Statutory Authority: § 28.2-201 of the Code of Virginia.

Effective Date: June 1, 2026.

Agency Contact: Benjamin Foster, Regulatory Coordinator, Marine Resources Commission, 380 Fenwick Road, Building 96, Fort Monroe, VA 23551, telephone (757) 709-9277, or email benjamin.foster@mrc.virginia.gov.

Summary:

The amendments (i) prohibit harvest of Atlantic tarpon by either recreational or commercial anglers and (ii) establish the mandatory use of circle hooks when fishing with bait to protect the migratory population of tarpon that annually frequent Virginia territorial waters.

Chapter 1420

Pertaining to Atlantic Tarpon

4VAC20-1420-10. Purpose.

The purpose of this chapter is to control the harvest of and minimize the negative impacts to the migratory Atlantic tarpon that enter Virginia's territorial waters.

4VAC20-1420-20. Definitions.

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

"Atlantic tarpon" means any fish of the species Megalops atlanticus.

"Bait" means any whole or part of any marine or aquatic organism, live or dead.

"Circle hook" means a non-offset, non-stainless steel hook with the point turned sharply and straight back toward the shank.

"Fishing recreationally" means fishing by any person, whether licensed or exempted from licensing, where the catch is not intended for sale, barter, trade, or any commercial purpose.

"Gaff" means to utilize a hooked, metal rod to pierce the body of a fish to better facilitate bringing the fish on board a vessel.

"Spear" means to fish while the person is fully submerged under the water's surface with a mechanically aided device designed to accelerate a barbed spear.

4VAC20-1420-30. Concerning recreational fishing: general.

A. It shall be unlawful for any person fishing recreationally to possess Atlantic tarpon at any time. Any Atlantic tarpon caught must remain in the water. No Atlantic tarpon may be removed from the water at any time.

B. It shall be unlawful for any person fishing recreationally to gaff or attempt to gaff an Atlantic tarpon.

C. It shall be unlawful for any person fishing recreationally to spear or attempt to spear an Atlantic tarpon.

D. Any person fishing recreationally for Atlantic tarpon shall use non-offset, corrodible, non-stainless steel circle hooks when fishing with bait.

4VAC20-1420-40. Commercial fishery prohibition.

It shall be unlawful for any person to take, harvest, land, or possess Atlantic tarpon for commercial purposes, including being offered or intended for sale, barter, or trade, at any time. Any Atlantic tarpon caught by commercial gear shall be returned to the water immediately.

4VAC20-1420-50. Penalty.

As set forth in § 28.2-903 of the Code of Virginia, any person violating any provision of this chapter shall be guilty of a Class 3 misdemeanor and a second or subsequent violation of any provision of this chapter committed by the same person within 12 months of a prior violation is a Class 1 misdemeanor.

TITLE 9. ENVIRONMENT

STATE AIR POLLUTION CONTROL BOARD

Fast-Track Regulation

Title of Regulation: 9VAC5-10. General Definitions (amending 9VAC5-10-20).

Statutory Authority: § 10.1-1308 of the Code of Virginia.

Public Hearing Information: No public hearing is currently scheduled.

Public Comment Deadline: July 15, 2026.

Effective Date: July 30, 2026.

Agency Contact: Julia Wack, Environmental Specialist I, Department of Environmental Quality, 1111 East Main Street, Suite 1400, Richmond, VA 23219, telephone (804) 432-3581, or email julia.n.wack@deq.virginia.gov.

Basis: Section 10.1-1308 of the Code of Virginia authorizes the State Air Pollution Control Board to promulgate regulations abating, controlling, and prohibiting air pollution in order to protect public health and welfare.

Purpose: The amendments protect public health and welfare by providing a basis for and support to other provisions of the regulation.

Rationale for Using Fast-Track Rulemaking Process: This action is expected to be noncontroversial and therefore appropriate for the fast-track rulemaking process because the amendment conforms the Virginia regulation to federal regulations.

Substance: The amendments add 1,1,1,4,4,4-hexafluorobut-2-ene (also known as HFO-1336mzz-Z; CAS number 692-49-9) to the list of substances not considered to be volatile organic compounds (VOCs) in Virginia.

Issues: The primary advantage to the public is that the amendments may encourage the use of the delisted substance in place of products containing more reactive, and therefore more polluting, substances. Excluding this substance as a VOC will make it easier and less expensive for industry to use it. Companies that use this substance in place of more reactive substances may also benefit by reducing their VOC emissions and concomitant reductions in permitting and other regulatory requirements. The advantage to the agency is that the amendments focus VOC reduction strategies on substances that have a negative impact on human health and the environment. There are no disadvantages to the public or the agency.

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 Air Pollution Control Board (board) proposes to revise the definition of volatile organic compound (VOC) to specifically exclude cis-1,1,1,4,4,4-hexafluorobut-2-ene (also known as HFO-1336mzz-Z), which is used in a variety of applications in foam expansion or blowing agents.

Background. The federal Clean Air Act (Act) requires the U.S. Environmental Protection Agency (EPA) to prescribe national ambient air quality standards to protect public health. The Act also mandates that each state adopt and submit to EPA a state implementation plan which provides for the implementation, maintenance, and enforcement of the standards. Ozone, one of the pollutants for which there is a federal standard, is in part created by emissions of VOCs. Therefore, in order to control ozone, VOCs are addressed in Virginia's state plan and regulations. VOC is defined in the regulation as "any compound of carbon, excluding carbon monoxide, carbon dioxide, carbonic acid, metallic carbides or carbonates, and ammonium carbonate, which participates in atmospheric photochemical reactions. This includes any such organic compounds which have been determined to have negligible photochemical reactivity other than the following:" The regulation then includes a long list of organic compounds that are excluded from those considered to be VOCs. The board's proposal is to add HFO-1336mzz-Z to the list of organic compounds that are excluded from those considered to be VOCs.

Federal regulation 40 CFR Part 51 sets out requirements for the preparation, adoption, and submittal of implementation plans. Subpart F of Part 51, Procedural Requirements, includes § 51.100, which consists of a list of definitions. 40 CFR 51.100 contains a definition of VOC. This definition is revised by EPA in order to add or remove VOCs as necessary. If it can be demonstrated that a particular VOC is "negligibly reactive," that is, if it can be shown that a VOC is not as reactive and therefore does not have a significant effect on ground-level (tropospheric) or upper-level (stratospheric) ozone, then EPA may remove that substance from the definition of VOC.

DuPont Chemicals & Fluoroproducts submitted a petition to EPA on February 14, 2014, requesting that HFO-1336mzz-Z be exempted from the regulatory definition of VOC. The petition was based on the argument that HFO-1336mzz-Z has low reactivity relative to ethane and may be used in a variety of applications in foam expansion or blowing agents where it has significant performance and energy-saving advantages. HFO-1336mzz-Z, as an alternative to other foam expansion and blowing agents, provides greater insulation values at a lower global warming potential. EPA took final action on November 28, 2018, to respond to the petition by exempting HFO-1336mzz-Z from the regulatory definition of VOC. This action was based on considerations of the compound's negligible reactivity relative to ethane, low contribution to tropospheric ozone, and the low likelihood of risk to human health or the environment. This delisting by the EPA became effective on January 28, 2019.

Estimated Benefits and Costs. Long-term ozone exposure is associated with increased respiratory illnesses, metabolic disorders, nervous system issues, reproductive issues (including reduced male and female fertility and poor birth outcomes), cancer and increased cardiovascular mortality. In the short term, inhaling high levels of ozone can cause shortness of breath, wheezing and coughing; asthma attacks; increased risk of respiratory infections; increased susceptibility to pulmonary inflammation; and increased need for people with lung diseases, like asthma or chronic obstructive pulmonary disease, to receive medical treatment and to go to the hospital.² The proposed amendment, which would add HFO-1336mzz-Z to the list of organic compounds that are not to be considered VOCs, may result in improved public health since the revision may encourage the use of HFO-1336mzz-Z in place of VOCs, which are more reactive and thereby produce more ozone. Excluding this substance as a VOC would make it easier and less expensive for industry to use it. Companies that use this substance in place of VOCs may also benefit by reducing their VOC emissions and concomitant reductions in permitting and other regulatory requirements. Facilities may take advantage of the low volatility of this substance to reduce its VOC emissions and thereby be able to expand production without triggering new source review permitting.

Businesses and Other Entities Affected. According to the Department of Environmental Quality (DEQ), no facilities in Virginia are known at this time to be manufacturing or utilizing HFO-1336mzz-Z, but there are 45 facilities that could manufacture or use it in polystyrene foam product manufacturing, urethane and other foam product manufacturing, air-conditioning and warm air heating equipment manufacturing, commercial and industrial refrigeration equipment manufacturing, motor vehicle parts manufacturing, ship building and repairing, boat building, and other miscellaneous manufacturing. Those 45 facilities may be particularly affected.

The Code requires DPB to assess whether an adverse impact may result from the proposed regulation.³ 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.⁴ The proposed amendment neither increases net cost nor reduces net benefit for any entity. Thus, no adverse impact is indicated.

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

Localities⁷ Affected.⁸ According to DEQ, the affected industries are located throughout the state. Thus, no locality is disproportionately affected. The proposed amendment is unlikely to affect costs for local governments.

Projected Impact on Employment. Since the proposal could enable some firms to expand production without triggering new source review permitting, employment may increase for these manufacturers.

Effects on the Use and Value of Private Property. Since excluding HFO-1336mzz-Z as a VOC may make it less expensive to use, some firms may have reduced costs in production. As described above, some firms may take advantage of the low volatility of this substance to reduce their VOC emissions and thereby be able to expand production without triggering new source review permitting. Thus, these firms may increase in value. The proposed amendment does not appear to affect real estate development costs.

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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 Source: https://www.lung.org/clean-air/outdoors/what-makes-air-unhealthy/ozone#how.

³ 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.

⁴ 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.

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 State Air Pollution Control Board has reviewed the economic impact analysis prepared by the Department of Planning and Budget and has no comment.

Summary:

The amendments conform the regulation to updated U.S. Environmental Protection Agency standards by revising the definition of volatile organic compound to specifically exclude cis-1,1,1,4,4,4-hexafluorobut-2-ene (also known as HFO-1336mzz-Z), which is used in a variety of applications in foam expansion or blowing agents.

9VAC5-10-20. Terms defined.

"Actual emissions rate" means the actual rate of emissions of a pollutant from an emissions unit. In general actual emissions shall equal the average rate, in tons per year, at which the unit actually emitted the pollutant during the most recent two-year period or some other two-year period which that is representative of normal source operation. If the board determines that no two-year period is representative of normal source operation, the board shall allow the use of an alternative period of time upon a determination by the board that it is more representative of normal source operation. Actual emissions shall be calculated using the unit's actual operating hours, production rates, and types of materials processed, stored, or combusted during the selected time period.

"Administrator" means the administrator of the U.S. Environmental Protection Agency (EPA) or his the administrator's authorized representative.

"Affected facility" means, with reference to a stationary source, any part, equipment, facility, installation, apparatus, process, or operation to which an emission standard is applicable or any other facility so designated. The term "affected facility" includes any affected source as defined in 40 CFR 63.2.

"Air pollution" means the presence in the outdoor atmosphere of one or more substances that are or may be harmful or injurious to human health, welfare, or safety; to animal or plant life; or to property; or that unreasonably interfere with the enjoyment by the people of life or property.

"Air quality" means the specific measurement in the ambient air of a particular air pollutant at any given time.

"Air quality control region" means any area designated as such in 9VAC5-20-200.

"Alternative method" means any method of sampling and analyzing for an air pollutant that is not a reference or equivalent method, but that has been demonstrated to the satisfaction of the board, in specific cases, to produce results adequate for its determination of compliance.

"Ambient air" means that portion of the atmosphere, external to buildings, to which the general public has access.

"Ambient air quality standard" means any primary or secondary standard designated as such in 9VAC5-30 (Ambient Air Quality Standards).

"Board" means the State Air Pollution Control Board or its designated representative. When used outside the context of the promulgation of regulations, including regulations to establish general permits, pursuant to this chapter, "board" means the Department of Environmental Quality.

"Certified mail" means electronically certified or postal certified mail, except that this definition shall only apply to the mailing of plan approvals, permits, or certificates issued under the provisions of these regulations and only where the recipient has notified the department of the recipient's consent to receive plan approvals, permits, or certificates by electronic mail. Any provision of these regulations requiring the use of certified mail to transmit special orders or administrative orders pursuant to enforcement proceedings shall mean postal certified mail.

"Class I area" means any prevention of significant deterioration area (i) in which virtually any deterioration of existing air quality is considered significant and (ii) designated as such in 9VAC5-20-205.

"Class II area" means any prevention of significant deterioration area (i) in which any deterioration of existing air quality beyond that normally accompanying well-controlled growth is considered significant and (ii) designated as such in 9VAC5-20-205.

"Class III area" means any prevention of significant deterioration area (i) in which deterioration of existing air quality to the levels of the ambient air quality standards is permitted and (ii) designated as such in 9VAC5-20-205.

"Continuous monitoring system" means the total equipment used to sample and condition (if applicable), to analyze, and to provide a permanent continuous record of emissions or process parameters.

"Control program" means a plan formulated by the owner of a stationary source to establish pollution abatement goals, including a compliance schedule to achieve such goals. The plan may be submitted voluntarily, or upon request or by order of the board, to ensure compliance by the owner with standards, policies, and regulations adopted by the board. The plan shall include system and equipment information and operating performance projections as required by the board for evaluating the probability of achievement. A control program shall contain the following increments of progress:

1. The date by which contracts for emission control system or process modifications are to be awarded, or the date by which orders are to be issued for the purchase of component parts to accomplish emission control or process modification.

2. The date by which the on-site construction or installation of emission control equipment or process change is to be initiated.

3. The date by which the on-site construction or installation of emission control equipment or process modification is to be completed.

4. The date by which final compliance is to be achieved.

"Criteria pollutant" means any pollutant for which an ambient air quality standard is established under 9VAC5-30 (Ambient Air Quality Standards).

"Day" means a 24-hour period beginning at midnight.

"Delayed compliance order" means any order of the board issued after an appropriate hearing to an owner that postpones the date by which a stationary source is required to comply with any requirement contained in the applicable implementation plan.

"Department" means any employee or other representative of the Virginia Department of Environmental Quality, as designated by the director.

"Director" or "executive director" means the director of the Virginia Department of Environmental Quality or a designated representative.

"Dispersion technique"

1. Means any technique that attempts to affect the concentration of a pollutant in the ambient air by:

a. Using that portion of a stack that exceeds good engineering practice stack height;

b. Varying the rate of emission of a pollutant according to atmospheric conditions or ambient concentrations of that pollutant; or

c. Increasing final exhaust gas plume rise by manipulating source process parameters, exhaust gas parameters, stack parameters, or combining exhaust gases from several existing stacks into one stack; or other selective handling of exhaust gas streams so as to increase the exhaust gas plume rise.

2. Subdivision 1 of this definition does not include:

a. The reheating of a gas stream, following use of a pollution control system, for the purpose of returning the gas to the temperature at which it was originally discharged from the facility generating the gas stream;

b. The merging of exhaust gas streams where:

(1) The owner demonstrates that the facility was originally designed and constructed with such merged gas streams;

(2) After July 8, 1985, such merging is part of a change in operation at the facility that includes the installation of pollution controls and is accompanied by a net reduction in the allowable emissions of a pollutant. This exclusion from the definition of "dispersion techniques" shall apply only to the emissions limitation for the pollutant affected by such change in operation; or

(3) Before July 8, 1985, such merging was part of a change in operation at the facility that included the installation of emissions control equipment or was carried out for sound economic or engineering reasons. Where there was an increase in the emissions limitation or, in the event that no emissions limitation was in existence prior to the merging, an increase in the quantity of pollutants actually emitted prior to the merging, the board shall presume that merging was significantly motivated by an intent to gain emissions credit for greater dispersion. Absent a demonstration by the owner that merging was not significantly motivated by such intent, the board shall deny credit for the effects of such merging in calculating the allowable emissions for the source;

c. Smoke management in agricultural or silvicultural prescribed burning programs;

d. Episodic restrictions on residential woodburning and open burning; or

e. Techniques under subdivision 1 c of this definition that increase final exhaust gas plume rise where the resulting allowable emissions of sulfur dioxide from the facility do not exceed 5,000 tons per year.

"Emergency" means a situation that immediately and unreasonably affects, or has the potential to immediately and unreasonably affect, public health, safety, or welfare; the health of animal or plant life; or property, whether used for recreational, commercial, industrial, agricultural, or other reasonable use.

"Emissions limitation" means any requirement established by the board that limits the quantity, rate, or concentration of continuous emissions of air pollutants, including any requirements which that limit the level of opacity, prescribe equipment, set fuel specifications, or prescribe operation or maintenance procedures to assure continuous emission reduction.

"Emission standard" means any provision of 9VAC5-40 (Existing Stationary Sources), 9VAC5-50 (New and Modified Stationary Sources), or 9VAC5-60 (Hazardous Air Pollutant Sources) that prescribes an emissions limitation, or other requirements that control air pollution emissions.

"Emissions unit" means any part of a stationary source that emits or would have the potential to emit any air pollutant.

"Equivalent method" means any method of sampling and analyzing for an air pollutant that has been demonstrated to the satisfaction of the board to have a consistent and quantitative relationship to the reference method under specified conditions.

"EPA" means the U.S. Environmental Protection Agency or an authorized representative.

"Excess emissions" means emissions of air pollutant in excess of an emission standard.

"Excessive concentration" is defined for the purpose of determining good engineering practice (GEP) stack height under subdivision 3 of the GEP definition and means:

1. For sources seeking credit for stack height exceeding that established under subdivision 2 of the GEP definition, a maximum ground-level concentration due to emissions from a stack due in whole or part to downwash, wakes, and eddy effects produced by nearby structures or nearby terrain features that individually is at least 40% in excess of the maximum concentration experienced in the absence of such downwash, wakes, or eddy effects and that contributes to a total concentration due to emissions from all sources that is greater than an ambient air quality standard. For sources subject to the provisions of Article 8 (9VAC5-80-1605 et seq.) of Part II of 9VAC5-80 (Permits for Stationary Sources), an excessive concentration alternatively means a maximum ground-level concentration due to emissions from a stack due in whole or part to downwash, wakes, or eddy effects produced by nearby structures or nearby terrain features that individually is at least 40% in excess of the maximum concentration experienced in the absence of the maximum concentration experienced in the absence of such downwash, wakes, or eddy effects and greater than a prevention of significant deterioration increment. The allowable emission rate to be used in making demonstrations under this provision shall be prescribed by the new source performance standard that is applicable to the source category unless the owner demonstrates that this emission rate is infeasible. Where such demonstrations are approved by the board, an alternative emission rate shall be established in consultation with the owner;

2. For sources seeking credit after October 11, 1983, for increases in existing stack heights up to the heights established under subdivision 2 of the GEP definition, either (i) a maximum ground-level concentration due in whole or part to downwash, wakes or eddy effects as provided in subdivision 1 of this definition, except that the emission rate specified by any applicable implementation plan (or, in the absence of such a limit, the actual emission rate) shall be used, or (ii) the actual presence of a local nuisance caused by the existing stack, as determined by the board; and

3. For sources seeking credit after January 12, 1979, for a stack height determined under subdivision 2 of the GEP definition where the board requires the use of a field study or fluid model to verify GEP stack height, for sources seeking stack height credit after November 9, 1984, based on the aerodynamic influence of cooling towers, and for sources seeking stack height credit after December 31, 1970, based on the aerodynamic influence of structures not adequately represented by the equations in subdivision 2 of the GEP definition, a maximum ground-level concentration due in whole or part to downwash, wakes, or eddy effects that is at least 40% in excess of the maximum concentration experienced in the absence of such downwash, wakes, or eddy effects.

"Existing source" means any stationary source other than a new source or modified source.

"Facility" means something that is built, installed, or established to serve a particular purpose and includes buildings, installations, public works, businesses, commercial and industrial plants, shops and stores, heating and power plants, apparatus, processes, operations, structures, and equipment of all types.

"Federal Clean Air Act" means Chapter 85 (§ 7401 et seq.) of Title 42 of the United States Code.

"Federally enforceable" means all limitations and conditions that are enforceable by the administrator and citizens under the federal Clean Air Act or that are enforceable under other statutes administered by the administrator. Federally enforceable limitations and conditions include the following:

1. Emission standards, alternative emission standards, alternative emissions limitations, and equivalent emissions limitations established pursuant to § 112 of the federal Clean Air Act as amended in 1990.

2. New source performance standards established pursuant to § 111 of the federal Clean Air Act, and emission standards established pursuant to § 112 of the federal Clean Air Act before it was amended in 1990.

3. All terms and conditions in a federal operating permit, including any provisions that limit a source's potential to emit, unless expressly designated as not federally enforceable.

4. Limitations and conditions that are part of an implementation plan.

5. Limitations and conditions that are part of a § 111(d) or 111(d)/129 plan.

6. Limitations and conditions that are part of a federal construction permit issued under 40 CFR 52.21 or any construction permit issued under regulations approved by EPA in accordance with 40 CFR Part 51.

7. Limitations and conditions that are part of an operating permit issued pursuant to a program approved by EPA into an implementation plan as meeting EPA's minimum criteria for federal enforceability, including adequate notice and opportunity for EPA and public comment prior to issuance of the final permit and practicable enforceability.

8. Limitations and conditions in a Virginia regulation or program that has been approved by EPA under subpart E of 40 CFR Part 63 for the purposes of implementing and enforcing § 112 of the federal Clean Air Act.

9. Individual consent agreements issued pursuant to the legal authority of EPA.

"Good engineering practice" or "GEP," with reference to the height of the stack, means the greater of:

1. 65 meters, measured from the ground-level elevation at the base of the stack;

2. a. For stacks in existence on January 12, 1979, and for which the owner had obtained all applicable permits or approvals required under 9VAC5-80 (Permits for Stationary Sources),

Hg = 2.5H,

provided the owner produces evidence that this equation was actually relied on in establishing an emissions limitation;

b. For all other stacks,

Hg = H + 1.5L,

where:

Hg = good engineering practice stack height, measured from the ground-level elevation at the base of the stack,

H = height of nearby structure(s) measured from the ground-level elevation at the base of the stack,

L = lesser dimension, height or projected width, of nearby structure(s) provided that the board may require the use of a field study or fluid model to verify GEP stack height for the source; or

3. The height demonstrated by a fluid model or a field study approved by the board, which ensures that the emissions from a stack do not result in excessive concentrations of any air pollutant as a result of atmospheric downwash, wakes, or eddy effects created by the source itself, nearby structures or nearby terrain features.

"Hazardous air pollutant" means an air pollutant to which no ambient air quality standard is applicable and that, in the judgment of the administrator, causes or contributes to air pollution, which may reasonably be anticipated to result in an increase in mortality or an increase in serious irreversible, or incapacitating reversible, illness.

"Implementation plan" means the portion or portions of the state implementation plan, or the most recent revision thereof, that has been approved under § 110 of the federal Clean Air Act, or promulgated under § 110(c) of the federal Clean Air Act, or promulgated or approved pursuant to regulations promulgated under § 301(d) of the federal Clean Air Act and that implements the relevant requirements of the federal Clean Air Act.

"Initial emission test" means the test required by any regulation, permit issued pursuant to 9VAC5-80 (Permits for Stationary Sources), control program, compliance schedule, or other enforceable mechanism for determining compliance with new or more stringent emission standards or permit limitations or other emissions limitations requiring the installation or modification of air pollution control equipment or implementation of a control method. Initial emission tests shall be conducted in accordance with 9VAC5-40-30.

"Initial performance test" means the test required by (i) 40 CFR Part 60 for determining compliance with standards of performance, or (ii) a permit issued pursuant to 9VAC5-80 (Permits for Stationary Sources) for determining initial compliance with permit limitations. Initial performance tests shall be conducted in accordance with 9VAC5-50-30 and 9VAC5-60-30.

"Isokinetic sampling" means sampling in which the linear velocity of the gas entering the sampling nozzle is equal to that of the undisturbed gas stream at the sample point.

"Locality" means a city, town, county, or other public body created by or pursuant to state law.

"Mail" means electronic or postal delivery.

"Maintenance area" means any geographic region of the United States previously designated as a nonattainment area and subsequently redesignated to attainment subject to the requirement to develop a maintenance plan and designated as such in 9VAC5-20-203.

"Malfunction" means any sudden failure of air pollution control equipment, of process equipment, or of a process to operate in a normal or usual manner, which failure is not due to intentional misconduct or negligent conduct on the part of the owner or other person. Failures that are caused in part by poor maintenance or careless operation are not malfunctions.

"Monitoring device" means the total equipment used to measure and record (if applicable) process parameters.

"Nearby" as used in the definition of good engineering practice (GEP) is defined for a specific structure or terrain feature and:

1. For purposes of applying the formulae provided in subdivision 2 of the GEP definition means that distance up to five times the lesser of the height or the width dimension of a structure, but not greater than 0.8 km (1/2 mile); and

2. For conducting demonstrations under subdivision 3 of the GEP definition means not greater than 0.8 km (1/2 mile), except that the portion of a terrain feature may be considered to be nearby which that falls within a distance of up to 10 times the maximum height (Ht) of the feature, not to exceed two miles if such feature achieves a height (Ht) 0.8 km from the stack that is at least 40% of the GEP stack height determined by the formulae provided in subdivision 2 b of the GEP definition or 26 meters, whichever is greater, as measured from the ground-level elevation at the base of the stack. The height of the structure or terrain feature is measured from the ground-level elevation at the base of the stack.

"Nitrogen oxides" means all oxides of nitrogen except nitrous oxide, as measured by test methods set forth in 40 CFR Part 60.

"Nonattainment area" means any area that is shown by air quality monitoring data or, where such data are not available, that is calculated by air quality modeling (or other methods determined by the board to be reliable) to exceed the levels allowed by the ambient air quality standard for a given pollutant including areas designated as such in 9VAC5-20-204.

"One hour" means any period of 60 consecutive minutes.

"One-hour period" means any period of 60 consecutive minutes commencing on the hour.

"Organic compound" means any chemical compound of carbon excluding carbon monoxide, carbon dioxide, carbonic disulfide, carbonic acid, metallic carbides, metallic carbonates, and ammonium carbonate.

"Owner" means any person, including bodies politic and corporate, associations, partnerships, personal representatives, trustees, and committees, as well as individuals, who owns, leases, operates, controls, or supervises a source.

"Particulate matter" means any airborne finely divided solid or liquid material with an aerodynamic diameter smaller than 100 micrometers.

"Particulate matter emissions" means all finely divided solid or liquid material, other than uncombined water, emitted to the ambient air as measured by the applicable reference method, or an equivalent or alternative method.

"PM₁₀" means particulate matter with an aerodynamic diameter less than or equal to a nominal 10 micrometers as measured by the applicable reference method or an equivalent method.

"PM₁₀ emissions" means finely divided solid or liquid material, with an aerodynamic diameter less than or equal to a nominal 10 micrometers emitted to the ambient air as measured by the applicable reference method, or an equivalent or alternative method.

"Performance test" means a test for determining emissions from new or modified sources.

"Person" means an individual, corporation, partnership, association, a governmental body, a municipal corporation, or any other legal entity.

"Pollutant" means any substance the presence of which in the outdoor atmosphere is or may be harmful or injurious to human health, welfare, or safety, to animal or plant life, or to property, or which that unreasonably interferes with the enjoyment by the people of life or property.

"Potential to emit" means the maximum capacity of a stationary source to emit a pollutant under its physical and operational design. Any physical or operational limitation on the capacity of the source to emit a pollutant, including air pollution control equipment, and restrictions on hours of operation or on the type or amount of material combusted, stored, or processed, shall be treated as part of its design only if the limitation or its effect on emissions is state and federally enforceable.

"Prevention of significant deterioration area" means any area not designated as a nonattainment area in 9VAC5-20-204 for a particular pollutant and designated as such in 9VAC5-20-205.

"Proportional sampling" means sampling at a rate that produces a constant ratio of sampling rate to stack gas flow rate.

"Public hearing" means, unless indicated otherwise, an informal proceeding, similar to that provided for in § 2.2-4007.02 of the Administrative Process Act, held to afford persons an opportunity to submit views and data relative to a matter on which a decision of the board is pending.

"Reference method" means any method of sampling and analyzing for an air pollutant as described in the following EPA regulations:

1. For ambient air quality standards in 9VAC5-30 (Ambient Air Quality Standards): The applicable appendix of 40 CFR Part 50 or any method that has been designated as a reference method in accordance with 40 CFR Part 53, except that it does not include a method for which a reference designation has been canceled in accordance with 40 CFR 53.11 or 40 CFR 53.16.

2. For emission standards in 9VAC5-40 (Existing Stationary Sources) and 9VAC5-50 (New and Modified Stationary Sources): Appendix M of 40 CFR Part 51 or Appendix A of 40 CFR Part 60.

3. For emission standards in 9VAC5-60 (Hazardous Air Pollutant Sources): Appendix B of 40 CFR Part 61 or Appendix A of 40 CFR Part 63.

"Regional director" means the regional director of an administrative region of the Department of Environmental Quality or a designated representative.

"Regulation of the board" means any regulation adopted by the State Air Pollution Control Board under any provision of the Code of Virginia.

"Regulations for the Control and Abatement of Air Pollution" means 9VAC5-10 (General Definitions) through 9VAC5-80 (Permits for Stationary Sources).

"Reid vapor pressure" means the absolute vapor pressure of volatile crude oil and volatile nonviscous petroleum liquids except liquefied petroleum gases as determined by American Society for Testing and Materials publication, "Standard Test Method for Vapor Pressure of Petroleum Products (Reid Method)" (see 9VAC5-20-21).

"Run" means the net period of time during which an emission sample is collected. Unless otherwise specified, a run may be either intermittent or continuous within the limits of good engineering practice.

"Section 111(d) plan" means the portion of the plan, or the most recent revision thereof, that has been approved under 40 CFR 60.27(b) in accordance with § 111(d)(1) of the federal Clean Air Act, or promulgated under 40 CFR 60.27(d) in accordance with § 111(d)(2) of the federal Clean Air Act, and that implements the relevant requirements of the federal Clean Air Act.

"Section 111(d)/129 plan" means the portion of the plan, or the most recent revision thereof, that has been approved under 40 CFR 60.27(b) in accordance with §§ 111(d)(1) and 129(b)(2) of the federal Clean Air Act, or promulgated under 40 CFR 60.27(d) in accordance with §§ 111(d)(2) and 129(b)(3) of the federal Clean Air Act, and that implements the relevant requirements of the federal Clean Air Act.

"Shutdown" means the cessation of operation of an affected facility for any purpose.

"Source" means any one or combination of the following: buildings, structures, facilities, installations, articles, machines, equipment, landcraft, watercraft, aircraft or other contrivances which contribute, or may contribute, either directly or indirectly to air pollution. Any activity by any person that contributes, or may contribute, either directly or indirectly to air pollution, including open burning, generation of fugitive dust or emissions, and cleaning with abrasives or chemicals.

"Stack" means any point in a source designed to emit solids, liquids or gases into the air, including a pipe or duct, but not including flares.

"Stack in existence" means that the owner had:

1. Begun, or caused to begin, a continuous program of physical on-site construction of the stack; or

2. Entered into binding agreements or contractual obligations, which could not be canceled or modified without substantial loss to the owner, to undertake a program of construction of the stack to be completed in a reasonable time.

"Standard conditions" means a temperature of 20°C (68°F) and a pressure of 760 mm of Hg (29.92 inches of Hg).

"Standard of performance" means any provision of 9VAC5-50 (New and Modified Stationary Sources) that prescribes an emissions limitation or other requirements that control air pollution emissions.

"Startup" means the setting in operation of an affected facility for any purpose.

"State enforceable" means all limitations and conditions that are enforceable by the board or department, including those requirements developed pursuant to 9VAC5-170-160; requirements within any applicable regulation, order, consent agreement or variance; and any permit requirements established pursuant to 9VAC5-80 (Permits for Stationary Sources).

"State Implementation Plan" means the plan, including the most recent revision thereof, that has been approved or promulgated by the administrator, U.S. Environmental Protection Agency, under § 110 of the federal Clean Air Act, and that implements the requirements of § 110.

"Stationary source" means any building, structure, facility, or installation that emits or may emit any air pollutant. A stationary source shall include all of the pollutant-emitting activities which belong to the same industrial grouping, are located on one or more contiguous or adjacent properties, and are under the control of the same person (or persons under common control) except the activities of any vessel. Pollutant-emitting activities shall be considered as part of the same industrial grouping if they belong to the same "Major Group" (i.e., have the same two-digit code) as described in the Standard Industrial Classification Manual (see 9VAC5-20-21).

"These regulations" means 9VAC5-10 (General Definitions) through 9VAC5-80 (Permits for Stationary Sources).

"Total suspended particulate" or "TSP" means particulate matter as measured by the reference method described in Appendix B of 40 CFR Part 50.

"True vapor pressure" means the equilibrium partial pressure exerted by a petroleum liquid as determined in accordance with methods described in American Petroleum Institute (API) publication, "Evaporative Loss from Floating-Roof Tanks" (see 9VAC5-20-21). The API procedure may not be applicable to some high viscosity or high pour crudes. Available estimates of true vapor pressure may be used in special cases such as these.

"Urban area" means any area consisting of a core city with a population of 50,000 or more plus any surrounding localities with a population density of 80 persons per square mile and designated as such in 9VAC5-20-201.

"Vapor pressure," except where specific test methods are specified, means true vapor pressure, whether measured directly, or determined from Reid vapor pressure by use of the applicable nomograph in American Petroleum Institute publication, "Evaporative Loss from Floating-Roof Tanks" (see 9VAC5-20-21).

"Virginia Air Pollution Control Law" means Chapter 13 (§ 10.1-1300 et seq.) of Title 10.1 of the Code of Virginia.

"Volatile organic compound" means any compound of carbon, excluding carbon monoxide, carbon dioxide, carbonic acid, metallic carbides or carbonates, and ammonium carbonate, that participates in atmospheric photochemical reactions.

1. This includes any such organic compounds that have been determined to have negligible photochemical reactivity other than the following:

a. Methane;

b. Ethane;

c. Methylene chloride (dichloromethane);

d. 1,1,1-trichloroethane (methyl chloroform);

e. 1,1,2-trichloro-1,2,2-trifluoroethane (CFC-113);

f. Trichlorofluoromethane (CFC-11);

g. Dichlorodifluoromethane (CFC-12);

h. Chlorodifluoromethane (H CFC-22);

i. Trifluoromethane (H FC-23);

j. 1,2-dichloro 1,1,2,2,-tetrafluoroethane (CFC-114);

k. Chloropentafluoroethane (CFC-115);

l. 1,1,1-trifluoro 2,2-dichloroethane (HCFC-123);

m. 1,1,1,2-tetrafluoroethane (HFC-134a);

n. 1,1-dichloro 1-fluoroethane (HCFC-141b);

o. 1-chloro 1,1-difluoroethane (HCFC-142b);

p. 2-chloro-1,1,1,2-tetrafluoroethane (HCFC-124);

q. Pentafluoroethane (HFC-125);

r. 1,1,2,2-tetrafluoroethane (HFC-134);

s. 1,1,1-trifluoroethane (HFC-143a);

t. 1,1-difluoroethane (HFC-152a);

u. Parachlorobenzotrifluoride (PCBTF);

v. Cyclic, branched, or linear completely methylated siloxanes;

w. Acetone;

x. Perchloroethylene (tetrachloroethylene);

y. 3,3-dichloro-1,1,1,2,2-pentafluoropropane (HCFC-225ca);

z. 1,3-dichloro-1,1,2,2,3-pentafluoropropane (HCFC-225cb);

aa. 1,1,1,2,3,4,4,5,5,5-decafluoropentane (HFC 43-10mee);

bb. Difluoromethane (HFC-32);

cc. Ethylfluoride (HFC-161);

dd. 1,1,1,3,3,3-hexafluoropropane (HFC-236fa);

ee. 1,1,2,2,3-pentafluoropropane (HFC-245ca);

ff. 1,1,2,3,3-pentafluoropropane (HFC-245ea);

gg. 1,1,1,2,3-pentafluoropropane (HFC-245eb);

hh. 1,1,1,3,3-pentafluoropropane (HFC-245fa);

ii. 1,1,1,2,3,3-hexafluoropropane (HFC-236ea);

jj. 1,1,1,3,3-pentafluorobutane (HFC-365mfc);

kk. Chlorofluoromethane (HCFC-31);

ll. 1 chloro-1-fluoroethane (HCFC-151a);

mm. 1,2-dichloro-1,1,2-trifluoroethane (HCFC-123a);

nn. 1,1,1,2,2,3,3,4,4-nonafluoro-4-methoxy-butane (C₄F₉OCH₃ or HFE-7100);

oo. 2-(difluoromethoxymethyl)-1,1,1,2,3,3,3-hepta-fluoropropane ((CF₃)₂CFCF₂ OCH₃);

pp. 1-ethoxy-1,1,2,2,3,3,4,4,4-nonafluorobutane (C₄F₉ OC₂H₅ or HFE-7200);

qq. 2-(ethoxydifluoromethyl)-1,1,1,2,3,3,3-hepta-fluoropropane ((CF₃)₂CFCF₂OC₂H₅);

rr. Methyl acetate;

ss. 1,1,1,2,2,3,3-heptafluoro-3-methoxy-propane (n-C₃F₇OCH₃) (HFE-7000);

tt. 3-ethoxy-1,1,1,2,3,4,4,5,5,6,6,6-dodecafluoro-2-(trifluoromethyl) hexane (HFE-7500);

uu. 1,1,1,2,3,3,3-heptafluoropropane (HFC 227ea);

vv. methyl formate (HCOOCH₃);

ww. 1,1,1,2,2,3,4,5,5,5-decafluoro-3-methoxy-4-trifluoromethyl-pentane (HFE-7300);

xx. propylene carbonate;

yy. dimethyl carbonate;

zz. trans-1,3,3,3-tetrafluoropropene;

aaa. HCF₂OCF₂H (HFE-134);

bbb. HCF₂OCF₂OCF₂H (HFE-236cal2);

ccc. HCF₂OCF₂CF₂OCF₂H (HFE-338pcc13);

ddd. HCF₂OCF₂OCF₂CF₂OCF₂H (H-Galden 1040x or H-Galden ZT 130 (or 150 or 180));

eee. trans 1-chloro-3,3,3-trifluoroprop-1-ene;

fff. 2,3,3,3-tetrafluoropropene;

ggg. 2-amino-2-methyl-1-propanol;

hhh. t-butyl acetate;

iii. 1,1,2,2-Tetrafluoro-1-(2,2,2-trifluoroethoxy) ethane;

jjj. trans-1,1,1,4,4,4-hexafluorobut-2-ene; and

kkk. cis-1,1,1,4,4,4-hexafluorobut-2-ene; and

lll. Perfluorocarbon compounds that fall into these classes:

(1) Cyclic, branched, or linear, completely fluorinated alkanes;

(2) Cyclic, branched, or linear, completely fluorinated ethers with no unsaturations;

(3) Cyclic, branched, or linear, completely fluorinated tertiary amines with no unsaturations; and

(4) Sulfur containing perfluorocarbons with no unsaturations and with sulfur bonds only to carbon and fluorine.

2. For purposes of determining compliance with emissions standards, volatile organic compounds shall be measured by the appropriate reference method in accordance with the provisions of 9VAC5-40-30 or 9VAC5-50-30, as applicable. Where such a method also measures compounds with negligible photochemical reactivity, these negligibly reactive compounds may be excluded as a volatile organic compound if the amount of such compounds is accurately quantified, and such exclusion is approved by the board.

3. As a precondition to excluding these compounds as volatile organic compounds or at any time thereafter, the board may require an owner to provide monitoring or testing methods and results demonstrating, to the satisfaction of the board, the amount of negligibly reactive compounds in the emissions of the source.

4. Exclusion of the compounds listed in subdivision 1 of this definition in effect exempts such compounds from the provisions of emission standards for volatile organic compounds. The compounds are exempted on the basis of being so inactive that they will not contribute significantly to the formation of ozone in the troposphere. However, this exemption does not extend to other properties of the exempted compounds which, at some future date, may require regulation and limitation of their use in accordance with requirements of the federal Clean Air Act.

5. Reserved.

"Welfare" means that language referring to effects on welfare and includes effects on soils, water, crops, vegetation, man-made materials, animals, wildlife, weather, visibility and climate, damage to and deterioration of property, and hazards to transportation, as well as effects on economic values and on personal comfort and well-being.

TITLE 9. ENVIRONMENT

STATE AIR POLLUTION CONTROL BOARD

Final Regulation

Title of Regulation: 9VAC5-40. Existing Stationary Sources (adding 9VAC5-40-9000 through 9VAC5-40-9040).

Statutory Authority: § 10.1-1308 of the Code of Virginia; § 111(d) of the federal Clean Air Act; 40 CFR Part 60.

Effective Date: July 15, 2026.

Agency Contact: Julia Wack, Department of Environmental Quality, 1111 East Main Street, Suite 1400, Richmond, VA 23219, telephone (804) 432-3581, or email julia.n.wack@deq.virginia.gov.

Summary:

The amendments incorporate by reference the U.S. Environmental Protection Agency Emissions Guidelines for Greenhouse Gas (GHG) Emissions from Existing Crude Oil and Natural Gas Facilities, 40 CFR Part 60 Subpart OOOOc, which establishes emission guidelines and compliance schedules for the control of GHG emissions from designated facilities in the crude oil and natural gas source category. The regulation limits the generation of methane, a polluting greenhouse gas, from designated facilities that commenced construction, modification, or reconstruction on or before December 6, 2022. This action enables Virginia to implement the federal standard at the state level, thereby satisfying the federal mandate.

Article 60

Emissions Guidelines for Existing Crude Oil and Natural Gas Facilities (Rule 4-60)

9VAC5-40-9000. Applicability and designation of affected facility.

A. The affected facility to which the provisions of this article apply is each designated facility in the crude oil and natural gas source category that commenced construction, modification, or reconstruction on or before December 6, 2022.

B. The provisions of this article apply throughout the Commonwealth of Virginia.

C. An affected facility is not subject to the requirement to obtain a federal operating permit, unless the facility is otherwise subject to federal operating permit requirements.

9VAC5-40-9010. Definitions.

A. For the purpose of applying this article in the context of the Regulations for the Control and Abatement of Air Pollution and related uses, words or terms shall have the meanings given them in subsection C of this section.

B. As used in this article, all terms not defined in this section shall have the meanings given them in General Definitions (9VAC5-10), unless otherwise required by context.

C. Terms shall have the meanings given them in 40 CFR 60.5430c, except for the following:

"Administrator" means the board, except when context otherwise clearly indicates that the "administrator" is the Administrator of the EPA.

9VAC5-40-9020. Designated standards of performance.

The owner of each affected facility shall meet EPA greenhouse gas standards in the form of a limitation on emissions of methane in accordance with the provisions of 40 CFR 60.5379c through 40 CFR 60.5430c.

9VAC5-40-9030. Compliance schedule.

All affected units shall achieve final compliance as expeditiously as practicable but not later than March 9, 2029.

9VAC5-40-9040. Documents incorporated by reference.

The U.S. Environmental Protection Agency regulation promulgated at Subpart OOOOc of 40 CFR Part 60 (Emissions Guidelines for Greenhouse Gas Emissions from Existing Crude Oil and Natural Gas Facilities) is incorporated by reference into this article. The specific version of the provisions incorporated by reference into Article 60 (9VAC5-9000 et seq.) of 9VAC5-40 shall be that contained in the CFR in effect on July 1, 2024. The following documents from the EPA are incorporated by reference into this article:

Model Rule - Increments of Progress

§ 60.5379c What are my requirements for meeting increments of progress and achieving final compliance?

§ 60.5380c What if I do not meet the final control plan increment of progress compliance date?

§ 60.5381c How do I comply with the increment of progress for submittal of a final compliance control plan?

Model Rule - Applicability

§ 60.5385c What is the purpose of this subpart?

§ 60.5386c Am I subject to this subpart?

§ 60.5387c When must I comply with this subpart?

Model Rule - Emission and Work Practice Standards

§ 60.5390c What GHG standards apply to gas well liquids unloading operations at well designated facilities?

§ 60.5391c What GHG standards apply to associated gas wells at well designated facilities?

§ 60.5392c What GHG standards apply to centrifugal compressor designated facilities?

§ 60.5393c What GHG standards apply to reciprocating compressor designated facilities?

§ 60.5394c What GHG standards apply to process controller designated facilities?

§ 60.5395c What GHG standards apply to pump designated facilities?

§ 60.5396c What GHG standards apply to storage vessel designated facilities?

§ 60.5397c What GHG standards apply to fugitive emissions components designated facilities?

§ 60.5398c What alternative GHG standards apply to fugitive emissions components designated facilities and what inspection and monitoring requirements apply to covers and closed vent systems when using an alternative technology?

§ 60.5400c What GHG standards apply to process unit equipment designated facilities?

§ 60.5401c What are the alternative GHG standards for process unit equipment designated facilities?

§ 60.5402c What are the exceptions to the GHG standards for process unit equipment designated facilities?

Model Rule - Test Methods and Performance Testing

§ 60.5405c What test methods and procedures must I use for my centrifugal compressor and reciprocating compressor designated facilities?

§ 60.5406c What test methods and procedures must I use for my process unit equipment designated facilities?

Model Rule - Initial Compliance Requirements

§ 60.5410c How do I demonstrate initial compliance with the standards for each of my designated facilities?

§ 60.5411c What additional requirements must I meet to determine initial compliance for my covers and closed vent systems?

§ 60.5412c What additional requirements must I meet for determining initial compliance of my control devices?

§ 60.5413c What are the performance testing procedures for control devices?

Model Rule - Continuous Compliance Requirements

§ 60.5415c How do I demonstrate continuous compliance with the standards for each of my designated facilities?

§ 60.5416c What are the initial and continuous cover and closed vent system inspection and monitoring requirements?

§ 60.5417c What are the continuous monitoring requirements for my control devices?

Model Rule - Recordkeeping and Reporting

§ 60.5420c What are my notification, reporting, and recordkeeping requirements?

§ 60.5421c What are my additional recordkeeping requirements for process unit equipment designated facilities?

§ 60.5422c What are my additional reporting requirements for process unit equipment designated facilities?

§ 60.5424c What are my additional recordkeeping and reporting requirements if I comply with the alternative GHG standards for fugitive emissions components designated facilities and covers and closed vent systems?

§ 60.5425c What parts of the General Provisions apply to me?

Model Rule - Definitions

§ 60.5430c What definitions apply to this subpart?

§§ 60.5431c-60.5439c [Reserved]

Tables

Table 1 to Subpart OOOOc of Part 60 - Designated Facility Presumptive Standards and Regulated Entity Compliance Dates

Table 2 to Subpart OOOOc of Part 60 - Alternative Technology Periodic Screening Frequency at Well Sites, Centralized Production Facilities, and Compressor Stations Subject to AVO Inspections With Quarterly OGI or EPA Method 21 Monitoring

Table 3 to Subpart OOOOc of Part 60 - Alternative Technology Periodic Screening Frequency at Well Sites and Centralized Production Facilities Subject to AVO Inspections and/or Semiannual OGI or EPA Method 21 Monitoring

Table 4 to Subpart OOOOc of Part 60 - Applicability of General Provisions to Subpart OOOOc

TITLE 9. ENVIRONMENT

VIRGINIA WASTE MANAGEMENT BOARD

Final Regulation

Title of Regulation: 9VAC20-60. Virginia Hazardous Waste Management Regulations (amending 9VAC20-60-18).

Statutory Authority: § 10.1-1402 of the Code of Virginia; 42 USC § 6921; 40 CFR Parts 260 through 272.

Effective Date: July 15, 2026.

Agency Contact: Ashby Scott, Department of Environmental Quality, 1111 East Main Street, Suite 1400, Richmond, VA 23218, telephone (804) 350-5623, or email ashby.scott@deq.virginia.gov.

Summary:

The amendment updates the reference to U.S. Environmental Protection Agency regulations in Title 40 of the Code of Federal Regulations to the July 1, 2024, edition.

9VAC20-60-18. Applicability of incorporated references based on the dates on which they became effective.

Except as noted, when a regulation of the U.S. Environmental Protection Agency (EPA) set forth in Title 40 of the Code of Federal Regulations is referenced and incorporated into this chapter, that regulation shall be as it exists and has been published in the July 1, 2023 2024, annual edition; however, the incorporation by reference of Title 40 of the Code of Federal Regulations shall not include the requirements of EPA's Response to Vacatur of Certain Provisions of the Definition of Solid Waste Rule (83 FR 24664, May 30, 2018).

TITLE 12. HEALTH

STATE BOARD OF HEALTH

Fast-Track Regulation

Title of Regulation: 12VAC5-115. Virginia Immunization Information System (amending 12VAC5-115-10 through 12VAC5-115-70).

Statutory Authority: §§ 32.1-12 and 32.1-46.01 of the Code of Virginia.

Public Hearing Information: No public hearing is currently scheduled.

Public Comment Deadline: July 29, 2026.

Effective Date: August 13, 2026.

Agency Contact: Christy Gray, Director, Division of Immunizations, Virginia Department of Health, 109 Governor Street, Richmond, VA 23219, telephone (804) 864-7928, or email epi-comments@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 necessary to carry out the provisions of Title 32.1 of the Code of Virginia and other laws of the Commonwealth administered by the board, the State Health Commissioner, or the Virginia Department of Health. Section 32.1-46.01 of the Code of Virginia requires the board to establish the Virginia Immunization Information System (VIIS) and to promulgate regulations to implement the VIIS.

Purpose: This action is needed to clarify and update the regulation to reflect current VIIS practices and to maximize VIIS capabilities to positively impact public health. The action is essential to protect the health, safety, and welfare of citizens because it streamlines immunization data recordkeeping and provider access to comprehensive immunization records, leading to better-informed patient care and, potentially, improved patient outcomes.

Rationale for Using Fast-Track Rulemaking Process: This action is expected to be noncontroversial because the amendments are either (i) technical or clarifying in nature or (ii) intended to align the regulation with current standards of practice. No comments were received during the periodic review public comment period. Therefore, this action is appropriate for the fast-track rulemaking process.

Substance: The amendments (i) update definitions; (ii) clarify required and authorized participants in the VIIS system; (iii) update the VIIS registration, onboarding, and training processes; (iv) clarify authorized use of VIIS to protect patient confidentiality; (v) update the VIIS opt-out process; (vi) clarify the VIIS access and reactivation processes; and (vii) update the list of demographic information required to be reported and the timing of VIIS immunization data reporting, including removing social security number as a required field.

Issues: The primary advantages to the public, the agency, and the Commonwealth include (i) streamlined immunization data recordkeeping and provider access to comprehensive immunization records, leading to better-informed patient care and, potentially, improved patient outcomes; (ii) improved electronic VIIS registration, onboarding, and training processes that may reduce costs to health care providers and health care entities through increased efficiency and reduced manual paperwork; and (iii) simplified patient opt-out of VIIS through an electronic form. Another advantage to the agency and the Commonwealth is clarification of the regulation, which will improve understanding and compliance by regulants. 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. Following a 2024 periodic review,² the State Board of Health (board) proposes to amend and update the regulation to accurately reflect the current paperless functioning of the online Virginia Immunization Information System (VIIS).

Background. The VIIS system contains the birth to death immunization histories of individuals by collecting and merging data from various sources. According to the Virginia Department of Health (VDH), this system is vital to ensuring that immunization data is readily available to providers and other health care entities so that they can provide timely and appropriate patient care in cases where immunization information is pertinent. The system also helps public health efforts to control and prevent vaccine-preventable diseases and effectively respond to public health emergencies (e.g., pandemics). The VIIS regulation sets rules for all providers and health care entities on the appropriate use of VIIS by defining protocols related to authorized participants, registration procedures, patient confidentiality, security, data entry and quality assurance, data release, data access, and forms. VDH reports that sometime in 2018 or 2019, VIIS has transitioned fully into a paperless online system. The transition has rendered paper-based forms and the regulatory language regarding paper transactions obsolete. Thus, following the periodic review, the board proposes to amend and update the regulation to accurately reflect the current paperless functioning of the VIIS system. More specifically, the amended language mainly pertains to updating definitions; provider registration, onboarding, training processes; patient opt-out process; the list of demographic information currently collected if available (e.g., email, race, and ethnicity) and no longer collected (e.g., social security number) since the transition; the time frame of data reporting as needed to reflect the current reporting timeframes (e.g., three days compared to the seven days used with the paper based system); and repealing paper based forms.

Estimated Benefits and Costs. According to VDH, the fully electronic paperless immunization information system has been in place since the 2018-2019 period. However, the regulatory language, particularly the portions addressing forms and paper-based processes, is out of date. The proposed amendments would update the language to accurately reflect how the fully electronic, paperless system processes work in practice. VDH believes that replacing or removing manual forms or processes and transitioning activities to the electronic portal likely improved the efficiency of VIIS registration, onboarding, and reporting of immunization-related data. For health care providers and health care entities required to report, electronic reporting is probably more cost effective compared to faxing or mailing paper reports because those methods cost money for postage, fax lines, and paper. There may have been also a reduction in staffing costs through more efficient processes and a reduction in labor necessary to process paper forms. However, since the new system has been in place for over six years, the proposed changes to the regulation are not expected to create any economic impact other than improving the accuracy of the text description of the processes and rules currently followed.

Businesses and Other Entities Affected. The current regulation applies to health care providers, local health departments, and other entities that provide patient immunizations. VDH reports that there are a total of 6,147 active entities using VIIS (i.e., 222 public health providers, 423 pediatricians, 864 family practices, 172 hospitals, 1,182 pharmacies, 320 school, college, or childcare entities, 216 community care entities, 1,067 other organizations, 1,665 other medical specialties, and 16 health plans). In a given year, approximately seven million vaccination reports are received through VIIS. No entities appear to be disproportionately affected. The Code of Virginia requires DPB to assess whether an adverse impact may result from the proposed regulation.³ 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.⁴ The proposal does not increase costs or reduce benefits for any entity. Thus, no adverse impact is indicated.

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

Localities⁷ Affected.⁸ The proposed amendments do not introduce costs for localities, nor do they disproportionately affect any locality.

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

Effects on the Use and Value of Private Property. No effects on the use and value of private property nor on real estate development costs are 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 https://townhall.virginia.gov/L/ViewPReview.cfm?PRid=2470.

³ 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.

⁴ 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.

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 State Board of Health concurs with the economic impact analysis prepared by the Department of Planning and Budget.

Summary:

As a result of a periodic review, the amendments (i) clarify requirements, procedures, and who is a required or an authorized participant in the VIIS system; (ii) update the VIIS registration, onboarding, and training processes; (iii) clarify authorized use of VIIS to protect patient confidentiality; (iv) update the VIIS opt-out process; (v) clarify VIIS access and reactivation processes; and (vi) update the list of demographic information required to be reported and the timing of VIIS immunization data reporting.

12VAC5-115-10. Definitions.

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

"Commissioner" means the State Health Commissioner or his the State Health Commissioner's designee.

"Data exchange" means electronically sending immunization information from an existing information system to VIIS and being able to retrieve information from VIIS.

"De-duplication" means the process in information systems that matches incoming data with existing client records and merges those identified as the same client.

"Health care entity" means any health care provider, health plan, or health care clearinghouse the same as that term is defined in § 32.1-127.1:03 of the Code of Virginia.

"Health care provider" means those entities listed in § 8.01-581.1 of the Code of Virginia, except that state-operated facilities shall also be considered health care providers for the purposes of this section. Health care provider shall also include all persons who are licensed, certified, registered, or permitted or who hold a multistate licensure privilege issued by any of the health regulatory boards within the Department of Health Professions, except persons regulated by the Board of Funeral Directors and Embalmers or the Board of Veterinary Medicine the same as that term is defined in § 32.1-127.1:03 of the Code of Virginia.

"Health plan" means an individual or group plan that provides or pays the cost of medical care and shall include any entity included in such definition as set out in 45 CFR 160.103 the same as that term is defined in § 32.1-127.1:03 of the Code of Virginia.

"Participant" means a person or organization with a VIIS account.

"Patient" means the client who is receiving health services.

"Public health emergency" means any (i) public health event caused by an act of bio-terrorism or vaccine-preventable disease outbreak or (ii) other public health event resulting from natural or human cause.

"Security role" means the level of security assigned to a participant that determines what information the individual may access in the application and what system functions may be performed.

"VDH" or "Department of Health" means the Virginia Department of Health.

"Virginia Immunization Information System" or "VIIS" means the statewide immunization registry.

"VITA" means the Virginia Information Technologies Agency.

12VAC5-115-20. Authorized participants.

A. Health care providers, including but not necessarily limited to any physician, physician assistant, nurse practitioner, registered nurse, school nurse, pharmacist, or any entity listed in the definition of "health care provider" in § 8.01-581.1 of the Code of Virginia, are authorized A health care provider in the Commonwealth who administers immunizations shall report to VIIS pursuant to § 32.1-46.01 of the Code of Virginia and this chapter. No health care provider required to report patient immunization information to VIIS pursuant to § 32.1-46.01 of the Code of Virginia shall be required to pay a fee to VDH to participate in VIIS.

B. Any A health care entity may is authorized to participate as in VIIS so long as it the health care entity is licensed or certified in Virginia to deliver or support health care services or public health, and requires immunization data to perform the health service function, and uses VIIS only for exchanging information on persons for whom it provides services support a purpose listed in § 32.1-46.01 A of the Code of Virginia.

C. Other state or regional immunization registries may exchange data with VIIS. They may share data and have access to data from VIIS by contacting the VIIS program manager and complying with the registration procedure discussed in 12VAC5-115-30.

D. VDH shall give access to VIIS under the condition that having access to immunization information is required to perform the job function of the participant. The VIIS program manager or designee shall assign the security role of the participant based on his needs and job responsibilities of the VIIS program manager or designee.

E. Access to VIIS requires only Internet access and is free to participants.

12VAC5-115-30. Registration procedures.

A. Participation in To gain access to VIIS is mandatory for any health care provider, as defined in § 32.1-127.1:03 of the Code of Virginia, in the Commonwealth that administers immunizations, an authorized participant shall complete the VIIS electronic registration process. The participant shall complete the electronic registration process every year as directed by VDH. Registration shall require the participant to ensure compliance with necessary confidentiality and security access provisions that specify security procedures to ensure that VIIS data are protected from unauthorized view and access.

B. Completed registration forms from authorized participants must be processed and approved by VDH must approve the registration before granting the participant access to the system is allowed. Registration will require the participant to assure compliance with necessary confidentiality and security access provisions that specify security procedures to ensure that VIIS data are protected from unauthorized view and access. The participant shall update and submit the forms to VDH every year.

C. Once the participant is approved, the participant shall sign a participant registration agreement with VDH. VDH will then provide shall confirm the participant completed VDH-specified training and then activate the participant in the VIIS system.

D. Qualifying A qualifying participant organizations organization shall designate an administrator for their the participant's organization. The administrator may then allow VIIS access by an employee in the administrator's organization and, in doing so, shall assume responsibility for registering that person, obtaining the most recent security forms that specify VITA or ensuring the employee is trained and has reviewed the VDH security requirements for VIIS, retaining all completed user forms, assigning the security role of the user participant, accepting legal responsibility for the employee's participant's proper use of VIIS, and terminating access to VIIS if the employee participant is noncompliant with VIIS requirements or no longer requires access.

E. Terminate organizational participation by notifying VDH in writing. All If a participant’s access is terminated, the data entered by that organization the participant shall remain in the system.

12VAC5-115-40. Patient confidentiality.

A. Access to VIIS information is authorized A participant may only under the condition that access to individual immunization information within VIIS that is required to perform the participant's job function.

B. Participants shall not No participant may conduct any activity that jeopardizes the proper function or security of VIIS, including sharing of sign-on information, allowing unauthorized view of VIIS screens, or failing to log off VIIS when leaving a workstation. They shall A participant may only use patient VIIS patient-level data only as authorized by law and this chapter for a purpose listed in § 32.1-46.01 A of the Code of Virginia and must immediately notify the patient and VDH of any breach of personal privacy or confidentiality.

C. Patients shall have the opportunity to opt-out No employer may access an employee's patient-level data in VIIS for the purpose of determining if the employee is in compliance with the employer's immunization policies.

D. A patient may opt out of VIIS by doing one of the following: 1. Contacting their health care provider to allow the viewing of their immunizations only by that provider who administered them; or 2. Contacting VDH in writing requesting to be taken out of VIIS and have their record no longer viewable completing the electronic VDH Opt-Out Form specifying the patient's opt-out preferences.

D. E. Patient immunization records shall may not be copied except for authorized use. These The copies shall may not be left where they are visible by unauthorized personnel and shall be shredded, pulped, or incinerated before disposal.

E. F. VIIS records shall be treated with the same confidentiality and privacy as any other health record. Any VDH shall immediately suspend a participant's system access privileges for inappropriate use of VIIS records shall result in immediate suspension of participant privileges and shall conduct an investigation conducted by VDH. Additional VDH may take additional actions may be taken pursuant to § 32.1-27 of the Code of Virginia. The VIIS program manager may reinstate privileges.

F. G. Nothing in this chapter alters the provision in 45 CFR Part 164 that permits covered health care entities to disclose protected health information to a public health authority without individual authorization.

12VAC5-115-50. Security.

A. After VDH gives access to a VIIS participant, a secure connection is established between his browser and VIIS. The system is password protected.

B. Participants shall ensure that employees with authorized access do not disclose their user identification code or password to anyone, have physical security and password-enabled screen savers on computers accessing VIIS, make every effort to protect VIIS screens from unauthorized view, and log off the system whenever leaving the VIIS workstation.

C. A. The VIIS system, which is maintained on a secure website, shall automatically inactivate a user session after a predetermined period of inactivity. The inactivation period is as determined by VITA security policy.

D. B. The VIIS system shall inactivate user accounts a participant’s account, denying access to the system when participants have the participant has not logged into the system after a predetermined period of time. This inactivation period is, as determined by VITA security policy. The administrator must If the participant requests reactivation of the account, VDH shall review the request and may reactivate the account, granting continued access to VIIS.

E. C. There shall be a secure encrypted connection, as determined by VITA or VDH, between VIIS and the participating organization sending or receiving data if data exchange is performed. The encryption process will be determined by VITA or VDH or both.

12VAC5-115-60. Population of VIIS.

A. The VDH Divisions Division of Immunization and Office of Vital Records shall have an agreement to populate demographic information in VIIS with birth certificate data. Death certificate data are shall be used to make the VIIS record no longer viewable. Data exchange The data shall be performed on a periodic basis, but at least monthly transmitted via electronic data exchange.

B. Each A participant shall make every effort to ensure the accuracy of all immunization and demographic information and shall include enough identifying information to allow for de-duplication of patients.

C. Data shall be reported in VIIS either by online data entry or by data exchange of files from other information systems. The participating provider or the health plan billed for the immunization shall report. Reporting shall occur within seven three days of vaccine administration for online data entry participants. For data exchange participants, reporting shall occur within seven days of receipt of the information.

D. Both demographic and immunization data shall be reported by the participant for each immunization administered.

1. Patient demographic information shall include, but is not limited to, the patient's name, and date of birth, in order to be accepted by VIIS. The following information is required, if available: gender, telephone number, email, home address, race, ethnicity, birth place, and mother's maiden name. The social security number, if provided, shall be encrypted by the application, appear as asterisks, and shall not print out on reports for that patient. The application shall allow only exact matches when the social security number is used for search purposes.

2. Patient immunization information shall include, but is not limited to, the type of immunization administered using industry standards, such as vaccine groups, Health Level 7 codes, or Current Procedural Terminology codes; date the immunization was administered; identity of the health care provider who administered the vaccine; manufacturer; trade name; lot number; and, if present, any contraindications or religious or medical exemptions.

E. Participants in data exchange shall provide an acceptable level of data quality, such as correct data fields, data accuracy, and enough information to correctly merge with existing patients. Upon initial data delivery, and periodically thereafter, VDH shall review data shall be reviewed to determine data quality and shall notify a participant if the data quality is not acceptable, including notice of any rejected records. Any The participant shall resolve a rejected records shall be resolved by the participant record in a timely way manner, not to exceed 30 days after notice from VDH. VDH may suspend system privileges and take additional action in accordance with § 32.1-27 of the Code of Virginia for any organization that a participant who knowingly submits inaccurate data or repeatedly provides an unacceptable level of data quality.

F. If insufficient information is reported to allow de-duplication of patients, VDH shall place incoming data will be placed in a pending file and must be merge the data manually merged, if appropriate. All participants shall identify a contact to work with VDH on pending files.

G. VDH shall incorporate immunization data pursuant to subsection E of § 32.1-46 E of the Code of Virginia into VIIS by data exchange from other immunization systems, patient care management billing systems, or information systems to the extent possible.

12VAC5-115-70. Release of VIIS data.

A. Specific Individual patient data shall may not be disclosed except to the extent required or permitted by state and federal law or regulations, after contacting VDH. VDH will verify the source of the request.

B. Specific patient data may be disclosed to health care entities to the extent required or permitted by state and federal law or regulations. See subsection E of § 32.1-46 and § 32.1-127.1:03 of the Code of Virginia.

C. B. Patient data shall be erased when no longer needed, when the computer IT equipment is being terminated, or in accordance with a data sharing agreement or a participant registration agreement with VDH.

D. C. Aggregate data from which personal identifying data has been removed or redacted may be released for the purposes of statistical analysis, research, or reporting only after approval by VDH.

E. Any D. VDH shall immediately suspend a participant's system access privileges for inappropriate use of VIIS data shall result in immediate suspension of user privileges and result in shall conduct an investigation conducted by VDH. Additional VDH may take additional actions may be taken in accordance with § 32.1-27 of the Code of Virginia. The VIIS program manager may reinstate privileges upon satisfactory completion of required remedial actions and guarantee of proper use of VIIS in the future.

FORMS (12VAC5-115)

Administrator Information, VIISADM (eff. 10/2012)

Electronic Data Exchange with VIIS (eff. 10/2012)

Information Systems Security Access Agreement (eff. 10/2012)

Organization Information, VIISORG (eff. 10/2012)

Memorandum of Agreement between Virginia Department of Health/Division of Immunization (VDH/DOI) and VIIS Organization Interested in Data Exchange (8/2011)

Virginia Immunization Information System (VIIS) Opt-In of VIIS (reviewed 6/2015)

Virginia Immunization Information System (VIIS) Opt-Out of VIIS (reviewed 6/2015)

VIIS Security Policy and User Confidentiality Agreement (rev. 5/2019)

VIIS User Acknowledgement Page

VIIS User Signature Page

Virginia Immunization Information System (VIIS) Opt-Out of VIIS (eff. 5/2024)

TITLE 14. INSURANCE

STATE CORPORATION COMMISSION

Proposed Regulation

Titles of Regulations: 14VAC5-150. Rules to Implement Transitional Requirements for the Conversion of Medicare Supplement Insurance Benefits and Premiums to Conform to Medicare Program Revisions (repealing 14VAC5-150-10 through 14VAC5-150-70).

14VAC5-160. Rules to Implement Transitional Requirements for the Conversion of Medicare Supplement Insurance Benefits and Premiums to Conform to Repeal of the Medicare Catastrophic Coverage Act (repealing 14VAC5-160-10 through 14VAC5-160-110:1).

Statutory Authority: §§12.1-13, 38.2-223, and 38.2-3608 of the Code of Virginia.

Public Hearing Information: A public hearing will be held upon request.

Public Comment Deadline: July 31, 2026.

Agency Contact: Jackie Myers, Chief Insurance Market Examiner, Bureau of Insurance, State Corporation Commission, P.O. Box 1157, Richmond, VA 23218, telephone (804) 371-9630, or email jackie.myers@scc.virginia.gov.

Summary:

The proposed amendments repeal Rules to Implement Transitional Requirements for the Conversion of Medicare Supplement Insurance Benefits and Premiums to Conform to Medicare Program Revisions (14VAC5-150) and Rules to Implement Transitional Requirements for the Conversion of Medicare Supplement Insurance Benefits and Premiums to Conform to Repeal of the Medicare Catastrophic Coverage Act (14VAC5-160), which are obsolete.

AT RICHMOND, MAY 19, 2026

COMMONWEALTH OF VIRGINIA, ex rel.

STATE CORPORATION COMMISSION

CASE NO. INS-2026-00042

Ex Parte: In the matter of Repealing the Rules

Governing the Conversion of Medicare Supplement

Insurance Benefits and Premiums

ORDER ESTABLISHING PROCEEDING

Section 12.1-13 of the Code of Virginia (Code) provides, in relevant part, that "[i]n the administration and enforcement of all laws within its jurisdiction, the [State Corporation Commission (Commission)] shall have the power to promulgate rules and regulations[.]" Section 38.2-223 of the Code provides that the Commission may issue any rules and regulations necessary or appropriate for the administration and enforcement of Title 38.2 of the Code. Section 38.2-3608 of the Code provides that the Commission may issue regulations to establish minimum standards for payment of claims under Medicare supplement policies and for marketing practices, compensation arrangements, requirements for loss ratio refunds or credits, Medicare select policies and certificates, and reporting practices of insurers providing such policies. The rules issued by the Commission pursuant to §§ 38.2-223 and 38.2-3608 of the Code are set forth in Title 14 of the Virginia Administrative Code.¹

The Bureau of Insurance (Bureau) has submitted to the Commission a proposal to repeal the rules set forth in Chapters 150 and 160 of Title 14 of the Virginia Administrative Code, entitled Rules to Implement Transitional Requirements for the Conversion of Medicare Supplement Insurance Benefits and Premiums to Conform to Medicare Program Revisions (14VAC5-150-10 et seq.) and Rules to Implement Transitional Requirements for the Conversion of Medicare Supplement Insurance Benefits and Premiums to Conform to Repeal of the Medicare Catastrophic Coverage Act (14VAC5-160-10 et seq.) (collectively, Rules). Specifically, the Bureau proposes repealing Chapters 150 and 160 because the Rules are now obsolete. Chapters 150 and 160 provided direction during a transitional time when benefit changes were taking place under the federal Medicare program, and new Medicare supplement insurance benefits and premiums needed to change as well so coverage would not be duplicated. However, the Rules were superseded with the enactment of Chapter 170 of Title 14 on July 30, 1992, which comprehensively provides rules for Medicare supplement policies or certificates issued for delivery prior to July 30, 1992; Medicare supplement policies delivered on or after July 30, 1992, and prior to June 1, 2010; Medicare supplement policies delivered on or after June 1, 2010; and Medicare supplement policies delivered to individuals newly eligible for Medicare on or after January 1, 2020.

NOW THE COMMISSION, upon consideration of this matter, is of the opinion and finds that a proceeding should be established to consider repealing the Rules. To initiate this proceeding, the Bureau has prepared a proposal that Chapters 150 and 160 of Title 14 of the Virginia Administrative Code be repealed, which is appended to this Order Establishing Proceeding (Order). The Commission finds that notice of the proposal to repeal the Rules should be given to the public, and that interested persons should be provided an opportunity to file written comments or request a hearing on the proposal to repeal the Rules.

Accordingly, IT IS ORDERED THAT:

(1) This case is docketed and assigned Case No. INS-2026-00042.

(2) All comments and other documents and pleadings filed in this matter shall be submitted electronically to the extent authorized by 5VAC5-20-150, Copies and format, of the Commission’s Rules of Practice and Procedure (Rules of Practice).² Confidential and Extraordinarily Sensitive Information shall not be submitted electronically and shall comply with 5VAC5-20-170, Confidential information, of the Rules of Practice. Any person seeking to hand deliver and physically file or submit any pleading or other document shall contact the Clerk’s Office Document Control Center at (804) 371-9838 to arrange the delivery.

(3) On or before July 31, 2026, any interested person may comment on, or request a hearing on, the proposal to repeal the Rules by following the instructions on the Commission’s website: scc.virginia.gov/case-information/submit-public-comments. Those unable, as a practical matter, to submit such documents electronically may file such comments by U.S. mail to the Clerk of the State Corporation Commission, c/o Document Control Center, P.O. Box 2118, Richmond, Virginia 23218-2118. All documents shall refer to Case No. INS-2026-00042. Any request for hearing shall state why a hearing is necessary and why the issues raised in the request for hearing cannot be addressed adequately in written comments.

(4) The Bureau shall file its response to any comments or requests for hearing filed pursuant to Ordering Paragraph (3) on or before August 28, 2026.

(5) If a sufficient request for hearing is not received, the Commission may consider the matter and enter an order based upon the comments, documents or other pleadings filed in this proceeding.

(6) The Bureau shall provide notice of this Order to all carriers licensed in Virginia to write Medicare Supplement Insurance Policies or Certificates and to any other interested persons as the Bureau may designate.

(7) The Commission's Office of General Counsel shall provide a copy of this Order, together with the proposal to repeal the Rules, to the Virginia Registrar of Regulations for publication in the Virginia Register of Regulations.

(8) Interested persons may download unofficial copies of the Order and the proposal to repeal the Rules from the Commission’s website: scc.virginia.gov/case-information/.

(9) This matter is continued.

A COPY hereof shall be sent by the Clerk of the Commission to: John E. Farmer, Jr., Senior Assistant Attorney General, jfarmer@oag.state.va.us, Office of the Attorney General, Division of Consumer Counsel, 202 North 9th Street, 8th Floor, Richmond, Virginia 23219-3424; and the Commission’s Office of General Counsel and the Bureau of Insurance in care of Deputy Commissioner Julie Blauvelt.

_____________________________

TITLE 14. INSURANCE

STATE CORPORATION COMMISSION

Proposed Regulation

Titles of Regulations: 14VAC5-150. Rules to Implement Transitional Requirements for the Conversion of Medicare Supplement Insurance Benefits and Premiums to Conform to Medicare Program Revisions (repealing 14VAC5-150-10 through 14VAC5-150-70).

14VAC5-160. Rules to Implement Transitional Requirements for the Conversion of Medicare Supplement Insurance Benefits and Premiums to Conform to Repeal of the Medicare Catastrophic Coverage Act (repealing 14VAC5-160-10 through 14VAC5-160-110:1).

Statutory Authority: §§12.1-13, 38.2-223, and 38.2-3608 of the Code of Virginia.

Public Hearing Information: A public hearing will be held upon request.

Public Comment Deadline: July 31, 2026.

Agency Contact: Jackie Myers, Chief Insurance Market Examiner, Bureau of Insurance, State Corporation Commission, P.O. Box 1157, Richmond, VA 23218, telephone (804) 371-9630, or email jackie.myers@scc.virginia.gov.

Summary:

The proposed amendments repeal Rules to Implement Transitional Requirements for the Conversion of Medicare Supplement Insurance Benefits and Premiums to Conform to Medicare Program Revisions (14VAC5-150) and Rules to Implement Transitional Requirements for the Conversion of Medicare Supplement Insurance Benefits and Premiums to Conform to Repeal of the Medicare Catastrophic Coverage Act (14VAC5-160), which are obsolete.

AT RICHMOND, MAY 19, 2026

COMMONWEALTH OF VIRGINIA, ex rel.

STATE CORPORATION COMMISSION

CASE NO. INS-2026-00042

Ex Parte: In the matter of Repealing the Rules

Governing the Conversion of Medicare Supplement

Insurance Benefits and Premiums

ORDER ESTABLISHING PROCEEDING

Section 12.1-13 of the Code of Virginia (Code) provides, in relevant part, that "[i]n the administration and enforcement of all laws within its jurisdiction, the [State Corporation Commission (Commission)] shall have the power to promulgate rules and regulations[.]" Section 38.2-223 of the Code provides that the Commission may issue any rules and regulations necessary or appropriate for the administration and enforcement of Title 38.2 of the Code. Section 38.2-3608 of the Code provides that the Commission may issue regulations to establish minimum standards for payment of claims under Medicare supplement policies and for marketing practices, compensation arrangements, requirements for loss ratio refunds or credits, Medicare select policies and certificates, and reporting practices of insurers providing such policies. The rules issued by the Commission pursuant to §§ 38.2-223 and 38.2-3608 of the Code are set forth in Title 14 of the Virginia Administrative Code.¹

The Bureau of Insurance (Bureau) has submitted to the Commission a proposal to repeal the rules set forth in Chapters 150 and 160 of Title 14 of the Virginia Administrative Code, entitled Rules to Implement Transitional Requirements for the Conversion of Medicare Supplement Insurance Benefits and Premiums to Conform to Medicare Program Revisions (14VAC5-150-10 et seq.) and Rules to Implement Transitional Requirements for the Conversion of Medicare Supplement Insurance Benefits and Premiums to Conform to Repeal of the Medicare Catastrophic Coverage Act (14VAC5-160-10 et seq.) (collectively, Rules). Specifically, the Bureau proposes repealing Chapters 150 and 160 because the Rules are now obsolete. Chapters 150 and 160 provided direction during a transitional time when benefit changes were taking place under the federal Medicare program, and new Medicare supplement insurance benefits and premiums needed to change as well so coverage would not be duplicated. However, the Rules were superseded with the enactment of Chapter 170 of Title 14 on July 30, 1992, which comprehensively provides rules for Medicare supplement policies or certificates issued for delivery prior to July 30, 1992; Medicare supplement policies delivered on or after July 30, 1992, and prior to June 1, 2010; Medicare supplement policies delivered on or after June 1, 2010; and Medicare supplement policies delivered to individuals newly eligible for Medicare on or after January 1, 2020.

NOW THE COMMISSION, upon consideration of this matter, is of the opinion and finds that a proceeding should be established to consider repealing the Rules. To initiate this proceeding, the Bureau has prepared a proposal that Chapters 150 and 160 of Title 14 of the Virginia Administrative Code be repealed, which is appended to this Order Establishing Proceeding (Order). The Commission finds that notice of the proposal to repeal the Rules should be given to the public, and that interested persons should be provided an opportunity to file written comments or request a hearing on the proposal to repeal the Rules.

Accordingly, IT IS ORDERED THAT:

(1) This case is docketed and assigned Case No. INS-2026-00042.

(2) All comments and other documents and pleadings filed in this matter shall be submitted electronically to the extent authorized by 5VAC5-20-150, Copies and format, of the Commission’s Rules of Practice and Procedure (Rules of Practice).² Confidential and Extraordinarily Sensitive Information shall not be submitted electronically and shall comply with 5VAC5-20-170, Confidential information, of the Rules of Practice. Any person seeking to hand deliver and physically file or submit any pleading or other document shall contact the Clerk’s Office Document Control Center at (804) 371-9838 to arrange the delivery.

(3) On or before July 31, 2026, any interested person may comment on, or request a hearing on, the proposal to repeal the Rules by following the instructions on the Commission’s website: scc.virginia.gov/case-information/submit-public-comments. Those unable, as a practical matter, to submit such documents electronically may file such comments by U.S. mail to the Clerk of the State Corporation Commission, c/o Document Control Center, P.O. Box 2118, Richmond, Virginia 23218-2118. All documents shall refer to Case No. INS-2026-00042. Any request for hearing shall state why a hearing is necessary and why the issues raised in the request for hearing cannot be addressed adequately in written comments.

(4) The Bureau shall file its response to any comments or requests for hearing filed pursuant to Ordering Paragraph (3) on or before August 28, 2026.

(5) If a sufficient request for hearing is not received, the Commission may consider the matter and enter an order based upon the comments, documents or other pleadings filed in this proceeding.

(6) The Bureau shall provide notice of this Order to all carriers licensed in Virginia to write Medicare Supplement Insurance Policies or Certificates and to any other interested persons as the Bureau may designate.

(7) The Commission's Office of General Counsel shall provide a copy of this Order, together with the proposal to repeal the Rules, to the Virginia Registrar of Regulations for publication in the Virginia Register of Regulations.

(8) Interested persons may download unofficial copies of the Order and the proposal to repeal the Rules from the Commission’s website: scc.virginia.gov/case-information/.

(9) This matter is continued.

A COPY hereof shall be sent by the Clerk of the Commission to: John E. Farmer, Jr., Senior Assistant Attorney General, jfarmer@oag.state.va.us, Office of the Attorney General, Division of Consumer Counsel, 202 North 9th Street, 8th Floor, Richmond, Virginia 23219-3424; and the Commission’s Office of General Counsel and the Bureau of Insurance in care of Deputy Commissioner Julie Blauvelt.

_____________________________

TITLE 18. PROFESSIONAL AND OCCUPATIONAL LICENSING

BOARD FOR BARBERS AND COSMETOLOGY

Action Withdrawn

Titles of Regulations: 18VAC41-20. Barbering and Cosmetology Regulations (amending 18VAC41-20-260).

18VAC41-70. Esthetics Regulations (amending 18VAC41-70-260).

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

The Board for Barbers and Cosmetology has WITHDRAWN the regulatory action for 18VAC41-20, Barbering and Cosmetology Regulations, and 18VAC41-70, Esthetics Regulations, which was published as a Fast-Track Rulemaking Action in 36:9 VA.R. 1077-1079 December 23, 2019. The purpose of the proposed action was to replace the regulatory requirement for a tuberculocidal and hospital grade disinfectant with an "EPA-registered disinfectant that is bactericidal, virucidal, and fungicidal." The board received more than the requisite 10 objections to the fast-track rulemaking process. That objection was published in 36:13 VA.R. 1823 February 17, 2020. On May 18, 2026, the board voted to withdraw the action because the changes proposed in this action became effective via two other actions on December 1, 2025. Therefore, this action is unnecessary and should be withdrawn.

Agency Contact: Ashley Reed, Executive Director, Board for Barbers and Cosmetology, 9960 Mayland Drive, Suite 400, Richmond, VA 23233, telephone (804) 367-8590, fax (866) 245-9693, or email barbercosmo@dpor.virginia.gov.

TITLE 18. PROFESSIONAL AND OCCUPATIONAL LICENSING

BOARD FOR BARBERS AND COSMETOLOGY

Action Withdrawn

Titles of Regulations: 18VAC41-20. Barbering and Cosmetology Regulations (amending 18VAC41-20-260).

18VAC41-70. Esthetics Regulations (amending 18VAC41-70-260).

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

The Board for Barbers and Cosmetology has WITHDRAWN the regulatory action for 18VAC41-20, Barbering and Cosmetology Regulations, and 18VAC41-70, Esthetics Regulations, which was published as a Fast-Track Rulemaking Action in 36:9 VA.R. 1077-1079 December 23, 2019. The purpose of the proposed action was to replace the regulatory requirement for a tuberculocidal and hospital grade disinfectant with an "EPA-registered disinfectant that is bactericidal, virucidal, and fungicidal." The board received more than the requisite 10 objections to the fast-track rulemaking process. That objection was published in 36:13 VA.R. 1823 February 17, 2020. On May 18, 2026, the board voted to withdraw the action because the changes proposed in this action became effective via two other actions on December 1, 2025. Therefore, this action is unnecessary and should be withdrawn.

Agency Contact: Ashley Reed, Executive Director, Board for Barbers and Cosmetology, 9960 Mayland Drive, Suite 400, Richmond, VA 23233, telephone (804) 367-8590, fax (866) 245-9693, or email barbercosmo@dpor.virginia.gov.

TITLE 18. PROFESSIONAL AND OCCUPATIONAL LICENSING

BOARD OF FUNERAL DIRECTORS AND EMBALMERS

Forms

Titles of Regulations: 18VAC65-20. Regulations Governing the Practice of Funeral Services.

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

Agency Contact: Matt Novak, Agency Regulatory Coordinator, Department of Health Professions, 9960 Mayland Avenue, Suite 300, Henrico, VA 23233, telephone (804) 914-0907, or email matthew.novak@dhp.virginia.gov.

FORMS (18VAC65-20)

Checklist, Instructions, and Application for a Funeral License by Examination or Endorsement (rev. 5/2024)

Funeral Service Reinstatement Application (rev. 6/2024)

Application for Reactivation (Inactive to Active) of Funeral Service, Funeral Director, or Embalmer License (rev. 1/2024)

Application to Practice Funeral Services (rev. 5/2026)

Application for Reinstatement of License to Practice Funeral Services (rev. 5/2026)

Application for Reactivation (Inactive to Active) of a Funeral Service, Funeral Director, or Embalmer License (rev. 5/2026)

Request for Verification of a Virginia Funeral License (rev. 11/2019)

Checklist and Instructions for Courtesy Card Application (rev. 3/2023)

Checklist and Instructions for Surface Transportation and Removal Service Registration Application (rev. 3/2023)

Crematory Registration Application (rev. 8/2023)

Crematory Reinstatement Application (rev. 8/2024)

Checklist and Instructions for Continuing Education Providers (rev. 5/2025)

Application for Courtesy Card (rev. 5/2026)

Surface Transportation and Removal Services Registration Application (rev. 5/2026)

Application for Crematory Registration (rev. 5/2026)

Application for Crematory Reinstatement (rev. 5/2026)

Application for Continuing Education Provider (rev. 5/2026)

Instructions for Completing the Continuing Education Summary Form for the Virginia Board of Funeral Directors and Embalmers (rev. 8/2016)

Instructions for Continuing Education Providers Adding Additional Courses (rev. 5/2025)

Application for Continuing Education Providers - Review of Additional Courses (rev. 5/2026)

Continuing Education (CE) Credit Form for Volunteer Practice (rev. 7/2020)

Continued Competency Activity and Assessment Form (rev. 7/2012)

Funeral Service New Establishment Application (rev. 3/2023)

Funeral Service Establishment or Branch Application (rev. 3/2023)

Funeral Service Establishment/Branch Application (rev. 5/2026)

Funeral Service Branch Establishment Application (rev. 3/2023)

Funeral Service Establishment or Branch Change Application (rev. 3/2023)

Funeral Establishment or Branch Change of Manager Application (rev. 3/2023)

Request for Reinspection due to Structural Change to Preparation Room (rev. 7/2020)

Waiver of Full-Time Manager (rev. 3/2023)

Funeral Service Establishment Reinstatement Application (rev. 8/2024)

Courtesy Card Reinstatement Application (rev. 8/2024)

Establishment/Branch Temporary Change of Manager Application (rev. 5/2026)

Application for Nonroutine Inspection (rev. 5/2026)

Waiver of Full-Time Manager Application (rev. 5/2026)

Funeral Service Establishment Reinstatement Application (rev. 5/2026)

Application for Courtesy Card Reinstatement (rev. 5/2026)

Surface Transportation and Removal Services Reinstatement Application (rev. 8/2024)

Presentation Request Form (rev. 7/2020)

Name or Address Change Form (rev. 2/2016)

Funeral Establishment or Branch Temporary Change of Manager Notice (rev. 12/2024)

Funeral Establishment or Branch Temporary Change of Manager Notice (rev. 5/2026)

Appendix I. General Price List (rev. 10/2019)

Appendix II. Casket Price List, Outer Burial Container Price List (rev. 10/2019)

Appendix III. Itemized Statement of Funeral Goods and Services Selected (rev. 10/2019)

FORMS (18VAC65-40)

Funeral Supervisor Registration Application (rev. 3/2023)

Funeral Change of Supervisor Application (rev. 3/2023)

Checklist, Instructions, and Registration Application for Funeral Service Internship Program (rev. 4/2024)

Checklist, Instructions, and Registration Application for Funeral Directing Internship Program (rev. 4/2024)

Checklist, Instructions, and Registration Application for Funeral Embalming Internship Program (rev. 4/2024)

First 1000 Hour Funeral Service Internship Report – Funeral Directing (rev.1/2021)

Second 1000 Hour Funeral Service Internship Report – Funeral Directing (rev. 1/2021)

Funeral Service Internship Report of Final Completion – Funeral Directing (rev. 1/2021)

First 1000 Hour Embalming Internship Report (rev. 1/2021)

Second 1000 Hour Embalming Internship Report (rev. 1/2021)

Embalming Internship Report of Final Completion (rev. 1/2021)

Funeral Intern Reinstatement Application (rev. 8/2024)

Application for Funeral Intern Reinstatement (rev. 5/2026)

TITLE 18. PROFESSIONAL AND OCCUPATIONAL LICENSING

BOARD OF FUNERAL DIRECTORS AND EMBALMERS

Notice of Intended Regulatory Action

Notice is hereby given in accordance with § 2.2-4007.01 of the Code of Virginia that the Board of Funeral Directors and Embalmers intends to consider amending 18VAC65-30, Regulations for Preneed Funeral Planning. The purpose of the proposed action is to align the regulation with Chapter 247 of the 2024 Acts of Assembly by allowing use of declinable preneed funeral guarantee fees.

The agency does not intend to hold a public hearing on the proposed action after publication in the Virginia Register.

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

Public Comment Deadline: July 15, 2026.

Agency Contact: Corie Tillman Wolf, Executive Director, Board of Funeral Directors and Embalmers, 9960 Mayland Drive, Suite 300, Richmond, VA 23233-1463, telephone (804) 367-4546, fax (804) 527-4637, or email corie.wolf@dhp.virginia.gov.

TITLE 18. PROFESSIONAL AND OCCUPATIONAL LICENSING

BOARD OF FUNERAL DIRECTORS AND EMBALMERS

Final Regulation

Title of Regulation: 18VAC65-30. Regulations for Preneed Funeral Planning (amending 18VAC65-30-220, 18VAC65-30-230).

Effective Date: June 15, 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.

Summary:

Pursuant to 1VAC7-10-60, the fax number for the Board of Funeral Directors and Embalmers is updated.

TITLE 18. PROFESSIONAL AND OCCUPATIONAL LICENSING

BOARD OF FUNERAL DIRECTORS AND EMBALMERS

Forms

Titles of Regulations: 18VAC65-20. Regulations Governing the Practice of Funeral Services.

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

Agency Contact: Matt Novak, Agency Regulatory Coordinator, Department of Health Professions, 9960 Mayland Avenue, Suite 300, Henrico, VA 23233, telephone (804) 914-0907, or email matthew.novak@dhp.virginia.gov.

FORMS (18VAC65-20)

Checklist, Instructions, and Application for a Funeral License by Examination or Endorsement (rev. 5/2024)

Funeral Service Reinstatement Application (rev. 6/2024)

Application for Reactivation (Inactive to Active) of Funeral Service, Funeral Director, or Embalmer License (rev. 1/2024)

Application to Practice Funeral Services (rev. 5/2026)

Application for Reinstatement of License to Practice Funeral Services (rev. 5/2026)

Application for Reactivation (Inactive to Active) of a Funeral Service, Funeral Director, or Embalmer License (rev. 5/2026)

Request for Verification of a Virginia Funeral License (rev. 11/2019)

Checklist and Instructions for Courtesy Card Application (rev. 3/2023)

Checklist and Instructions for Surface Transportation and Removal Service Registration Application (rev. 3/2023)

Crematory Registration Application (rev. 8/2023)

Crematory Reinstatement Application (rev. 8/2024)

Checklist and Instructions for Continuing Education Providers (rev. 5/2025)

Application for Courtesy Card (rev. 5/2026)

Surface Transportation and Removal Services Registration Application (rev. 5/2026)

Application for Crematory Registration (rev. 5/2026)

Application for Crematory Reinstatement (rev. 5/2026)

Application for Continuing Education Provider (rev. 5/2026)

Instructions for Completing the Continuing Education Summary Form for the Virginia Board of Funeral Directors and Embalmers (rev. 8/2016)

Instructions for Continuing Education Providers Adding Additional Courses (rev. 5/2025)

Application for Continuing Education Providers - Review of Additional Courses (rev. 5/2026)

Continuing Education (CE) Credit Form for Volunteer Practice (rev. 7/2020)

Continued Competency Activity and Assessment Form (rev. 7/2012)

Funeral Service New Establishment Application (rev. 3/2023)

Funeral Service Establishment or Branch Application (rev. 3/2023)

Funeral Service Establishment/Branch Application (rev. 5/2026)

Funeral Service Branch Establishment Application (rev. 3/2023)

Funeral Service Establishment or Branch Change Application (rev. 3/2023)

Funeral Establishment or Branch Change of Manager Application (rev. 3/2023)

Request for Reinspection due to Structural Change to Preparation Room (rev. 7/2020)

Waiver of Full-Time Manager (rev. 3/2023)

Funeral Service Establishment Reinstatement Application (rev. 8/2024)

Courtesy Card Reinstatement Application (rev. 8/2024)

Establishment/Branch Temporary Change of Manager Application (rev. 5/2026)

Application for Nonroutine Inspection (rev. 5/2026)

Waiver of Full-Time Manager Application (rev. 5/2026)

Funeral Service Establishment Reinstatement Application (rev. 5/2026)

Application for Courtesy Card Reinstatement (rev. 5/2026)

Surface Transportation and Removal Services Reinstatement Application (rev. 8/2024)

Presentation Request Form (rev. 7/2020)

Name or Address Change Form (rev. 2/2016)

Funeral Establishment or Branch Temporary Change of Manager Notice (rev. 12/2024)

Funeral Establishment or Branch Temporary Change of Manager Notice (rev. 5/2026)

Appendix I. General Price List (rev. 10/2019)

Appendix II. Casket Price List, Outer Burial Container Price List (rev. 10/2019)

Appendix III. Itemized Statement of Funeral Goods and Services Selected (rev. 10/2019)

FORMS (18VAC65-40)

Funeral Supervisor Registration Application (rev. 3/2023)

Funeral Change of Supervisor Application (rev. 3/2023)

Checklist, Instructions, and Registration Application for Funeral Service Internship Program (rev. 4/2024)

Checklist, Instructions, and Registration Application for Funeral Directing Internship Program (rev. 4/2024)

Checklist, Instructions, and Registration Application for Funeral Embalming Internship Program (rev. 4/2024)

First 1000 Hour Funeral Service Internship Report – Funeral Directing (rev.1/2021)

Second 1000 Hour Funeral Service Internship Report – Funeral Directing (rev. 1/2021)

Funeral Service Internship Report of Final Completion – Funeral Directing (rev. 1/2021)

First 1000 Hour Embalming Internship Report (rev. 1/2021)

Second 1000 Hour Embalming Internship Report (rev. 1/2021)

Embalming Internship Report of Final Completion (rev. 1/2021)

Funeral Intern Reinstatement Application (rev. 8/2024)

Application for Funeral Intern Reinstatement (rev. 5/2026)

TITLE 18. PROFESSIONAL AND OCCUPATIONAL LICENSING

BOARD OF PHARMACY

Final Regulation

Title of Regulation: 18VAC110-20. Regulations Governing the Practice of Pharmacy (amending 18VAC110-20-200, 18VAC110-20-275, 18VAC110-20-490, 18VAC110-20-555, 18VAC110-20-700, 18VAC110-20-728).

Statutory Authority: §§ 54.1-2400 and 54.1-3307 of the Code of Virginia.

Effective Date: July 15, 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.

Summary:

Pursuant to Chapters 63 and 513 of the 2024 Acts of Assembly and based on the innovative pilot programs currently approved by the Board of Pharmacy pursuant to § 54.1-3307.2 of the Code of Virginia, the amendments (i) allow onsite storage and dispensing of necessary medications in crisis stabilization units (CSUs); (ii) permit the use of remote dispensing systems in certain health care facilities using the same requirements that are currently in place for automated drug dispensing systems; and (iii) permit state facilities and services licensed by the Department of Behavioral Health and Developmental Services that serve as site-based CSUs to use automated drug dispensing devices and remote dispensing systems.

Summary of Public Comments and Agency's Response: No public comments were received by the promulgating agency.

18VAC110-20-200. Storage of drugs, devices, and controlled paraphernalia; expired drugs.

A. Prescriptions awaiting delivery. Prescriptions prepared for delivery to the patient may be placed in a secured area outside of the prescription department, not accessible to the public, where access to the prescriptions is restricted to individuals designated by the pharmacist. With the permission of the pharmacist, the prepared prescriptions may be transferred to the patient at a time when the pharmacist is not on duty. If a prescription is delivered at a time when the pharmacist is not on duty, written procedures shall be established and followed by the pharmacy that detail security of the dispensed prescriptions and a method of compliance with counseling requirements of § 54.1-3319 of the Code of Virginia. Additionally, a log shall be made and maintained of all prescriptions delivered to a patient when a pharmacist is not present to include the patient's name, prescription number, date of delivery, and signature of the person receiving the prescription. Such log shall be maintained for a period of one year. Notwithstanding the provisions of this subsection, prescriptions prepared for delivery to the patient may also be secured in an area outside of the prescription department in a remote dispensing system as defined in § 54.1-3401 of the Code of Virginia and pursuant to subsection A of 18VAC110-20-490.

B. Dispersion of Schedule II drugs. Schedule II drugs shall either be dispersed with other schedules of drugs or shall be maintained within a securely locked cabinet, drawer, or safe or maintained in a manner that combines the two methods for storage. The cabinet, drawer, or safe may remain unlocked during hours that the prescription department is open and a pharmacist is on duty.

C. Safeguards for controlled paraphernalia and Schedule VI medical devices. Controlled paraphernalia and Schedule VI medical devices shall not be placed in an area completely removed from the prescription department whereby patrons will have free access to such items or where the pharmacist cannot exercise reasonable supervision and control.

D. Expired, or otherwise adulterated or misbranded drugs; security. Any drug that has exceeded the expiration date or is otherwise adulterated or misbranded shall not be dispensed or sold; it shall be separated from the stock used for dispensing. Expired prescription drugs shall be maintained in a designated area within the prescription department until proper disposal.

18VAC110-20-275. Delivery of dispensed prescriptions.

A. Pursuant to § 54.1-3420.2 B of the Code of Virginia, in addition to direct hand delivery to a patient or patient's agent or delivery to a patient's residence, a pharmacy may deliver a dispensed prescription drug order for Schedule VI controlled substances to another pharmacy, to a practitioner of the healing arts licensed to practice pharmacy or to sell controlled substances, or to an authorized person or entity holding a controlled substances registration issued for this purpose in compliance with this section and any other applicable state or federal law. Prescription drug orders for Schedule II through Schedule V controlled substances may not be delivered to an alternate delivery location unless such delivery is authorized by federal law and regulations of the board.

B. Delivery to another pharmacy.

1. One pharmacy may fill prescriptions and deliver the prescriptions to a second pharmacy for patient pickup or direct delivery to the patient provided the two pharmacies have the same owner, or have a written contract or agreement specifying the services to be provided by each pharmacy, the responsibilities of each pharmacy, and the manner in which each pharmacy will comply with all applicable federal and state law.

2. Each pharmacy using such a drug delivery system shall maintain and comply with all procedures in a current policy and procedure manual that includes the following information:

a. A description of how each pharmacy will comply with all applicable federal and state law;

b. The procedure for maintaining required, retrievable dispensing records to include which pharmacy maintains the hard-copy prescription, which pharmacy maintains the active prescription record for refilling purposes, how each pharmacy will access prescription information necessary to carry out its assigned responsibilities, method of recordkeeping for identifying the pharmacist responsible for dispensing the prescription and counseling the patient, and how and where this information can be accessed upon request by the board;

c. The procedure for tracking the prescription during each stage of the filling, dispensing, and delivery process;

d. The procedure for identifying on the prescription label all pharmacies involved in filling and dispensing the prescription;

e. The policy and procedure for providing adequate security to protect the confidentiality and integrity of patient information;

f. The policy and procedure for ensuring accuracy and accountability in the delivery process;

g. The procedure and recordkeeping for returning to the initiating pharmacy any prescriptions that are not delivered to the patient; and

h. The procedure for informing the patient and obtaining consent for using such a dispensing and delivery process.

3. Drugs waiting to be picked up at or delivered from the second pharmacy shall be stored in accordance with subsection A of 18VAC110-20-200 and subsection A of 18VAC110-20-490, if applicable.

C. Delivery to a practitioner of the healing arts licensed by the board to practice pharmacy or to sell controlled substances or other authorized person or entity holding a controlled substances registration authorized for this purpose.

1. A prescription may be delivered by a pharmacy to the office of such a practitioner or other authorized person provided there is a written contract or agreement between the two parties describing the procedures for such a delivery system and the responsibilities of each party.

2. Each pharmacy using this delivery system shall maintain a policy and procedure manual that includes the following information:

a. Procedure for tracking and assuring ensuring security, accountability, integrity, and accuracy of delivery for the dispensed prescription from the time it leaves the pharmacy until it is handed to the patient or agent of the patient;

b. Procedure for providing counseling;

c. Procedure and recordkeeping for return of any prescription medications not delivered to the patient;

d. The procedure for assuring ensuring confidentiality of patient information; and

e. The procedure for informing the patient and obtaining consent for using such a delivery process.

3. Prescriptions waiting to be picked up by a patient at the alternate site shall be stored in a lockable room or lockable cabinet, cart, remote dispensing system as defined in § 54.1-3401 of the Code of Virginia and pursuant to subsection A of 18VAC110-20-490, or other device that cannot be easily moved and that shall be locked at all times when not in use. Access shall be restricted to the licensed practitioner of the healing arts or the responsible party listed on the application for the controlled substances registration, or either person's designee.

D. The contracts or agreements and the policy and procedure manuals required by this section for alternate delivery shall be maintained both at the originating pharmacy as well as the alternate delivery site.

E. A controlled substances registration as an alternate delivery site shall only be issued to an entity without a prescriber or pharmacist present at all times the site is open if there is a valid patient health or safety reason not to deliver dispensed prescriptions directly to the patient and if compliance with all requirements for security, policies, and procedures can be reasonably assured ensured.

F. The pharmacy and alternate delivery site shall be exempt from compliance with subsections B through E of this section if (i) the alternate delivery site is a pharmacy, a practitioner of healing arts licensed by the board to practice pharmacy or sell controlled substances, or other entity holding a controlled substances registration for the purpose of delivering controlled substances; (ii) the alternate delivery site does not routinely receive deliveries from the pharmacy; and (iii) compliance with subsections B through E of this section would create a delay in delivery that may result in potential patient harm. However, the pharmacy and alternate delivery site shall comply with following requirements:

1. To ensure appropriate coordination of patient care, the pharmacy shall notify the alternate delivery site of the anticipated arrival date of the shipment, the exact address to where the drug was shipped, the name of the patient for whom the drug was dispensed, and any special storage requirements.

2. The pharmacy shall provide counseling or ensure a process is in place for the patient to receive counseling.

3. Prescriptions delivered to the alternate delivery site shall be stored in a lockable room or lockable cabinet, cart, remote dispensing system as defined in § 54.1-3401 of the Code of Virginia and pursuant to subsection A of 18VAC110-20-490, or other device that cannot be easily moved and that shall be locked at all times when not in use. Access shall be restricted to the licensed prescriber, pharmacist, or either person's designee.

4. The pharmacy shall provide a procedure for the return of any prescription drugs not delivered or subsequently administered to the patient.

G. A pharmacy shall not deliver dispensed drugs to a patient's residence that are intended to be subsequently transported by the patient or patient's agent to a hospital, medical clinic, prescriber's office, or pharmacy for administration and that require special storage, reconstitution or compounding prior to administration. An exception to this requirement may be made for patients with inherited bleeding disorders who may require therapy to prevent or treat bleeding episodes.

18VAC110-20-490. Automated devices for dispensing and administration of drugs.

A. A hospital, state facility as defined in § 37.2-100 of the Code of Virginia that is established pursuant to Title 37.2 of the Code of Virginia, facility as defined in § 37.2-100 of the Code of Virginia that is licensed by the Department of Behavioral Health and Developmental Services and provides site-based crisis stabilization services, or other facility authorized by the board may use automated devices drug dispensing systems and remote dispensing systems for the dispensing and administration of drugs pursuant to § 54.1-3301 of the Code of Virginia and §§ 54.1-3401 and 54.1-3434.02 of the Drug Control Act and in accordance with 18VAC110-20-270, 18VAC110-20-420, or 18VAC110-20-460 as applicable. Unless prohibited under federal law, a remote dispensing system that solely stores drugs labeled and verified by the provider pharmacist for patients to obtain medication may be placed within close proximity of a permitted pharmacy or at a location issued a controlled substance registration pursuant to § 54.1-3420.2 of the Code of Virginia in a secure area under constant surveillance to ensure security of drugs, confidentiality of protected health information, and appropriate recordkeeping.

B. Policy and procedure manual; access codes.

1. Proper use of the automated drug dispensing devices system and remote dispensing system and means of compliance with requirements shall be set forth in the pharmacy's policy and procedure manual, which shall include provisions for granting and terminating user access.

2. Personnel allowed access to an automated drug dispensing device system and remote dispensing system shall have a specific access code that records or other means to record the identity of the person accessing the device. The device may verify access codes using biometric identification or other coded identification after the initial log-on in order to eliminate sharing or theft of access codes.

C. Distribution of drugs from the pharmacy.

1. Except when the automated drug dispensing system or remote dispensing system is used exclusively for administration of drugs for emergencies, a pharmacy located outside of the hospital or facility it services shall first obtain a controlled substance registration issued in the name of the pharmacy at the address of the hospital or facility and a registration from the Drug Enforcement Administration, if required, prior to stocking controlled substances in Schedules II through VI.

2. Drugs authorized pursuant to § 54.1-3434.02 of the Code of Virginia may be placed into and removed from automated drug dispensing systems or remote dispensing systems. Pharmacies servicing remote dispensing systems that package and label drugs for a specific patient may repackage drugs into bulk bins that are verified for accuracy by a pharmacist pursuant to 18VAC110-20-355. Pharmacies using a remote dispensing device that only stores patient-specific dispensed drugs for patients to obtain medication may place pharmacist-verified dispensed drug into the device.

3. Prior to removal of drugs from the pharmacy, a delivery record shall be generated for all drugs to be placed in an automated drug dispensing device system or remote dispensing system. The delivery record shall include the date; drug name, dosage form, and strength; quantity; hospital or facility unit and a unique identifier for the specific device receiving the drug; initials of the person loading the automated drug dispensing device system or remote dispensing system; and initials of the pharmacist checking the drugs to be removed from the pharmacy and the delivery record for accuracy.

2. 4. At the time of loading any Schedules II through V drug, the person loading will verify that the count of that drug in the automated drug dispensing device system or remote dispensing system is correct. Any discrepancy noted shall be recorded on the delivery record and immediately reported to the pharmacist in charge, who shall be responsible for ensuring reconciliation of the discrepancy or properly reporting of a loss.

D. Distribution of drugs from a central warehouser or wholesale distributor. Notwithstanding subdivision C 1 of this section, a central warehouser or wholesale distributor may distribute Schedule VI drugs to hospitals to be placed in specific automated dispensing devices under the following conditions:

1. A pharmacist licensed in Virginia employed by or otherwise working at the central warehouser or wholesale distributor shall verify the accuracy of all Schedule VI drugs to be placed in specific automated dispensing devices within the hospital prior to delivery of the drugs directly to the hospital pharmacy;

2. A pharmacist at the hospital pharmacy shall not be required to (i) verify the accuracy of these drugs prior to leaving the hospital pharmacy for delivery to the hospital unit as floor stock as required in 18VAC110-20-460 A or (ii) initial the delivery record as required in subdivision C 1 of this section;

3. The central warehouser or wholesale distributor shall maintain a record of all Schedule VI drugs distributed to a hospital for placement in a specific automated dispensing device. The record shall include the date; drug name, dosage form, and strength; quantity; hospital name; hospital unit and a unique identifier for the specific automated dispensing device receiving the drug; and initials of the pharmacist employed by or working at the central warehouser or wholesale distributor who is responsible for verifying the drugs for accuracy;

4. The central warehouser or wholesale distributor shall provide an invoice to each hospital pharmacy that indicates in which specific automated dispensing device the drugs delivered to the hospital are to be placed;

5. A pharmacist or pharmacy technician at each hospital shall load the drugs into the specific automated dispensing device after scanning in accordance with the hospital's policies and procedures, and the hospital pharmacy shall maintain a record that consists of the initials of the person loading the automated dispensing device;

6. A pharmacist licensed in Virginia employed by or otherwise working at the warehouser or wholesale distributor shall perform barcode linking of any drug to the related drug files in the hospital information system and automated dispensing device or associated drug database;

7. Each hospital receiving drugs from the central warehouser or wholesale distributor shall maintain at least a 90% barcode scanning rate for restocking automated dispensing devices. If the scanning rate for restocking the automated dispensing device is less than 90% for any quarter, the pharmacy at the hospital shall immediately reinstitute a 100% pharmacist verification process at the receiving pharmacy until a 90% scanning rate for a subsequent quarter is achieved and documented; and

8. The hospital pharmacy receiving such services from a central warehouser or wholesale distributor shall maintain quarterly reports containing the hospital's restocking barcode scanning rate, bedside barcode scanning rate, and any errors in drug product received from the central warehouser or wholesale distributor.

E. Distribution and dispensing of drugs from the device.

1. Automated drug dispensing devices in hospitals systems and remote dispensing systems shall be capable of producing a hard-copy record of distribution that shall show patient name, drug name and strength, dose withdrawn, date and time of withdrawal from the device, and identity of person withdrawing the drug. The record shall be filed in chronological order from date of issue or maintained electronically.

2. If an automated drug dispensing device system or remote dispensing system is used to obtain drugs for dispensing from an emergency room, a separate dispensing record is not required, provided the automated record distinguishes dispensing from administration and records the identity of the physician who is dispensing.

3. Remote dispensing systems that dispense patient-specific drugs into an envelope shall satisfy compliance with 18VAC110-20-340 if the medication is assigned an expiration date of no more than 48 hours from the date of the packaging in an envelope.

4. Remote dispensing systems that dispense multiple medications into a single container for a specific patient shall include a medication description as set forth in 18VAC110-20-340 B on the label, medication envelope, or the medication run report.

5. Pharmacist verification of a patient-specific dispensed drug as required in 18VAC110-20-270 from a remote dispensing system is waived if a pharmacist verified the drug placed in the bulk bin that is placed in the device and the device incorporates sufficient technology to ensure accuracy of the dispensed drug.

F. Discrepancy reports. A discrepancy report for all Schedules II through V drugs and any drugs of concern, as defined in § 54.1-3456.1 of the Code of Virginia, shall be generated for each discrepancy in the count of a drug on hand in the device. Each such report shall be initiated or resolved by the PIC or the PIC's designee within 72 hours of the time the discrepancy was discovered or, if determined to be a theft or an unusual loss of drugs, shall be immediately reported to the board in accordance with § 54.1-3404 E of the Drug Control Act.

G. Reviews and audits.

1. The PIC or the PIC's designee shall conduct at least a monthly review for compliance with written policy and procedures that are consistent with § 54.1-3434.02 A of the Drug Control Act for security and use of the automated drug dispensing devices system and remote dispensing system, to include procedures for timely termination of access codes when applicable, accuracy of distribution and dispensing from the device, and proper recordkeeping.

2. The PIC or the PIC's designee shall conduct at least a monthly audit to review distribution and dispensing of Schedules II through V drugs from each automated drug dispensing device system and remote dispensing system as follows:

a. The audit shall reconcile records of all quantities of Schedules II through V drugs dispensed from the pharmacy with records of all quantities loaded into each device to detect whether any drug recorded as removed from the pharmacy was diverted rather than placed in the proper device.

b. If a pharmacy has an ongoing method for perpetually monitoring drugs in Schedules II through V to ensure drugs dispensed from the pharmacy have been loaded into the device and not diverted, such as with the use of perpetual inventory management software, then the audit required in this subsection may be limited to the discrepancies or exceptions as identified by the method for perpetually monitoring the drugs.

3. The PIC or the PIC's designee shall conduct at least a monthly audit to review the dispensing and administration records of Schedules II through V drugs from each automated drug dispensing device system and remote dispensing system as follows:

a. The audit shall include a review of administration and dispensing records, if applicable, for each device per month for possible diversion by fraudulent charting. The review shall include all Schedules II through V drugs administered and dispensed for a time period of not less than 24 consecutive hours during the audit period.

b. The hard-copy distribution, dispensing, and administration records printed out and reviewed in the audit shall be initialed and dated by the person conducting the audit. If nonpharmacist personnel conduct the audit, a pharmacist shall review the record and shall initial and date the record.

c. The PIC or the PIC's designee shall be exempt from requirements of this audit if reconciliation software that provides a statistical analysis is used to generate reports at least monthly. The statistical analysis shall be based on:

(1) Peer-to-peer comparisons of use for that unit or department; and

(2) Monitoring of overrides and unresolved discrepancies.

d. The report shall be used to identify suspicious activity, which includes usage beyond three standard deviations in peer-to-peer comparisons. A focused audit of the suspicious activity and individuals associated with the activity shall be performed whenever suspicious activity is identified from the reports.

4. The PIC or the PIC's designee shall maintain a record of compliance with the reviews and audits in accordance with subsection I of this section.

H. Inspections. Automated drug dispensing devices systems and remote dispensing systems shall be inspected monthly by pharmacy personnel to verify proper storage, proper location of drugs within the device, expiration dates, the security of drugs, and validity of access codes. The PIC or the PIC's designee shall maintain documentation of the inspection in accordance with subsection I of this section. With the exception of a monthly physical review of look-alike and sound-alike drugs stored within matrix drawers or open access areas within the device, such monthly inspection shall not require physical inspection of the device if the device is capable of and performs the following:

1. At least daily monitoring of refrigerator or freezer storage with documented temperature ranges, variances, and resolutions;

2. Automatic identification and isolation of the location of each drug within the device using a machine readable product identifier, such as barcode technology, and generation of a report verifying the applicable settings;

3. Electronic tracking of drug expiration dates and generation of proactive reports allowing for the replacement of drugs prior to their expiration date; and

4. Electronic detection of the opening of the device, identification of the person accessing the device, automatic denial of access to the device during malfunctions and mechanical errors, and generation of reports of any malfunction and mechanical error.

I. Records.

1. All records required by this section shall be maintained for a period of not less than two years. Records required to be maintained by the pharmacy shall be maintained at the address of the pharmacy providing services to the hospital or facility. Records required to be maintained by the warehouser or wholesale distributor shall be maintained at the address of the applicable facility. Manual Schedule VI distribution records, reports auditing for indications of suspicious activity, focused audits, and records required to be maintained by the warehouser or wholesale distributor distributing Schedule VI drugs to specific automated dispensing devices may be maintained in offsite storage or electronically as an electronic image that provides an exact image of the document that is clearly legible, provided such offsite or electronic records are retrievable and made available for inspection or audit within 48 hours of a request by the board or an authorized agent.

2. Distribution and delivery records and required initials may be generated or maintained electronically, provided:

a. The system being used has the capability of recording an electronic signature that is a unique identifier and restricted to the individual required to initial or sign the record.

b. The records are maintained in a read-only format that cannot be altered after the information is recorded.

c. The system being used is capable of producing a hard-copy printout of the records upon request.

3. Schedules II through V distribution and delivery records may also be stored off site or electronically in compliance with requirements of subdivision 1 of this subsection and if authorized by DEA or in federal law or regulation.

4. Hard-copy distribution, dispensing, and administration records that are printed and reviewed in conducting required audits may be maintained at an off-site offsite location or electronically, provided they can be readily retrieved upon request, are maintained in a read-only format that does not allow alteration of the records, and a separate log is maintained for a period of two years showing dates of audit and review, the identity of the automated drug dispensing device system or remote dispensing system being audited, the time period covered by the audit and review, and the initials of all reviewers.

18VAC110-20-555. Use of automated dispensing devices and remote dispensing devices in nursing homes.

Nursing homes licensed pursuant to Chapter 5 (§ 32.1-123 et seq.) of Title 32.1 of the Code of Virginia may use automated drug dispensing systems and remote dispensing systems, as defined in § 54.1-3401 of the Code of Virginia, upon meeting the following conditions:

1. Drugs placed in an automated drug dispensing system or remote dispensing system in a nursing home shall be under the control of the pharmacy providing services to the nursing home, the pharmacy shall have online communication with and control of the automated drug dispensing system, and access to any drug for a patient shall be controlled by the pharmacy.

2. A pharmacy that is not located within the nursing home without an in-house pharmacy it serves shall obtain a controlled substances registration issued in the name of the pharmacy at the address of the nursing home and a registration from the Drug Enforcement Administration, if required, prior to using an automated dispensing system stocking drugs in Schedules II through VI, unless the automated drug dispensing system or remote dispensing system is exclusively stocked with drugs that would be kept in a stat-drug box pursuant to 18VAC110-20-550 or an emergency drug kit pursuant to 18VAC110-20-540 and are solely administered for stat or emergency administration.

3. For facilities not required to obtain a controlled substance registration, except Except as restricted in subdivision 4 c of this section, access to the automated drug dispensing device system or remote dispensing system shall be restricted to a licensed nurse, pharmacist, prescriber, advanced registered medication aide, or a registered pharmacy technician for the purpose of stocking or reloading pursuant to designation by the PIC or pharmacist on duty.

4. Removal of drugs from any automated drug dispensing system or remote dispensing system for administration to patients can only be made pursuant to a valid prescription or lawful order of a prescriber under the following conditions:

a. No drug may be administered to a patient from an automated drug dispensing device system or remote dispensing system until a pharmacist has reviewed the prescription order and electronically authorized the access of that drug for that particular patient in accordance with the order, except as provided in subdivision 4 c of this section.

b. The PIC of the provider pharmacy shall ensure that a pharmacist who has online access to the system is available at all times to review a prescription order as needed and authorize administering pursuant to the order reviewed.

c. Drugs that would be stocked in an emergency drug kit pursuant to 18VAC110-20-540 or a stat drug box pursuant to 18VAC110-20-550 B may be accessed pursuant to a valid prescription or lawful order of a prescriber and prior to receiving electronic authorization from the pharmacist by a licensed nurse, pharmacist, or prescriber, provided that the absence of the emergency drug would threaten the survival of the patient or that a delay in administration of the stat drug could result in harm to the patient, and that only these licensed individuals may administer a drug accessed for this purpose.

d. Automated drug dispensing devices systems and remote dispensing systems shall be capable of producing a hard-copy record of distribution and dispensing, if applicable, that shall show patient name, drug name and strength, dose or quantity withdrawn, dose to be administered, if applicable, date and time of withdrawal from the device, and identity of person withdrawing the drug.

5. Drugs placed in automated drug dispensing devices systems shall be in the manufacturer's sealed original unit dose or unit-of-use packaging or in repackaged unit-dose containers in compliance with the requirements of 18VAC110-20-355 relating to repackaging, labeling, and records.

6. Drugs authorized pursuant to § 54.1-3404.02 of the Code of Virginia may be placed into and removed from automated drug dispensing systems or remote dispensing systems. Pharmacies servicing remote dispensing systems that package and label drugs for a specific patient may repackage drugs into bulk bins that are verified for accuracy by a pharmacist pursuant to 18VAC110-20-355. Drugs intended to be administered by the patient or a person not licensed to administer drugs must fully comply with the labeling requirements in §§ 54.1-3410 and 54.1-3463 of the Code of Virginia and board regulations. Directions for use may only be abbreviated when drugs are administered exclusively by persons licensed to administer drugs.

7. Prior to the removal of drugs from the pharmacy, a delivery record shall be generated for all drugs to be placed in an automated drug dispensing device system and remote dispensing system, which shall include the date; drug name, dosage form, and strength; quantity; nursing home; a unique identifier for the specific device receiving drugs; and initials of the pharmacist checking the order of drugs to be removed from the pharmacy and the records of distribution for accuracy.

7. 8. At the direction of the PIC, drugs may be loaded in the device by a pharmacist or a pharmacy technician adequately trained in the proper loading of the system.

8. 9. At the time of loading, the delivery record for all Schedules II through VI drugs shall be signed by a nurse or other person authorized to administer drugs from that specific device, and the record returned to the pharmacy.

9. 10. At the time of loading any Schedules II through V drug, the person loading will verify that the count of that drug in the automated drug dispensing device system or remote dispensing system is correct. Any discrepancy noted shall be recorded on the delivery record and immediately reported to the PIC, who shall be responsible for reconciliation of the discrepancy or the proper reporting of a loss.

10. 11. Remote dispensing systems that dispense patient-specific drugs into an envelope shall satisfy compliance with 18VAC110-20-340 if the medication is assigned an expiration date of no more than 48 hours from the date of the packaging in an envelope and is not self-administered.

12. Remote dispensing systems that dispense multiple medications into a single container for a specific patient shall include a medication description as set forth in 18VAC110-20-340 on the label, medication envelope, or the medication run report.

13. Pharmacist verification of a patient-specific dispensed drug as required in 18VAC110-20-270 from a remote dispensing system is waived if a pharmacist verified the drug placed in the bulk bin that is placed in the device and the device incorporates sufficient technology assistance to ensure accuracy of the dispensed drug.

14. The PIC of the provider pharmacy or the PIC's designee shall conduct at least a monthly audit to review distribution and, administration, and dispensing, if applicable, of Schedules II through V drugs from each automated drug dispensing device system and remote dispensing system as follows:

a. The audit shall reconcile records of all quantities of Schedules II through V drugs dispensed from the pharmacy with records of all quantities loaded into each device to detect whether any drugs recorded as removed from the pharmacy were diverted rather than being placed in the proper device.

b. A discrepancy report shall be generated for each discrepancy in the count of a drug on hand in the device. Each such report shall be resolved by the PIC or the PIC's designee within 72 hours of the time the discrepancy was discovered or, if determined to be a theft or an unusual loss of drugs, shall be immediately reported to the board in accordance with § 54.1-3404 E of the Drug Control Act.

c. The audit shall include a review of a sample of administration and dispensing records, if applicable, from each device per month for possible diversion by fraudulent charting. A sample shall include all Schedules II through V drugs administered and dispensed for a time period of not less than 24 consecutive hours during the audit period.

d. The audit shall include a check of medical records to ensure that a valid order exists for a random sample of doses recorded as administered or dispensed.

e. The audit shall also check for compliance with written procedures for security and use of the automated dispensing devices, accuracy of distribution from the device, and proper recordkeeping.

f. The hard copy distribution, dispensing, and administration records printed out and reviewed in the audit shall be initialed and dated by the person conducting the audit. If nonpharmacist personnel conduct the audit, a pharmacist shall review the record and shall initial and date the record.

11. 15. Automated drug dispensing devices systems and remote dispensing systems shall be inspected monthly by pharmacy personnel to verify proper storage, proper location of drugs within the device, expiration dates, the security of drugs and validity of access codes.

12. 16. Personnel allowed access to an automated drug dispensing device system or remote dispensing system shall have a specific access code that records the identity of the person accessing the device.

13. 17. The PIC of the pharmacy providing services to the nursing home shall establish, maintain, and ensure compliance with written policy and procedure for the accurate stocking and proper storage of drugs in the automated drug dispensing system and remote dispensing system, accountability for and security of all drugs maintained in the automated drug dispensing system , preventing unauthorized access to the system, tracking access to the system, complying with federal and state regulations related to the storage and dispensing of controlled substances, maintaining patient confidentiality, maintaining required records, and ensuring compliance with the requirements of this chapter. The manual shall be accessible at both the pharmacy and the nursing home.

14. 18. All records required by this section shall be filed in chronological order from date of issue and maintained for a period of not less than two years. Records shall be maintained at the address of the pharmacy providing services to the nursing home, except:

a. Manual Schedule VI distribution records may be maintained in offsite storage or electronically as an electronic image that provides an exact image of the document that is clearly legible, provided such offsite or electronic storage is retrievable and made available for inspection or audit within 48 hours of a request by the board or an authorized agent.

b. Distribution and delivery records and required signatures may be generated or maintained electronically, provided:

(1) The system being used has the capability of recording an electronic signature that is a unique identifier and restricted to the individual required to initial or sign the record.

(2) The records are maintained in a read-only format that cannot be altered after the information is recorded.

(3) The system used is capable of producing a hard-copy printout of the records upon request.

c. Schedules II through V distribution and delivery records may only be stored offsite or electronically as described in subdivisions 14 18 a and 14 18 b of this section if authorized by DEA or in federal law or regulation.

d. Hard-copy distribution and, administration, and dispensing records that are printed and reviewed in conducting required audits may be maintained offsite or electronically, provided that (i) they can be readily retrieved upon request; (ii) they are maintained in a read-only format that does not allow alteration of the records; and (iii) a separate log is maintained for a period of two years showing dates of audit and review, the identity of the automated drug dispensing device system or remote dispensing system being audited, the time period covered by the audit and review, and the initials of all reviewers.

18VAC110-20-700. Requirements for supervision for controlled substances registrants.

A. A practitioner licensed in Virginia shall provide supervision for all aspects of practice related to the maintenance and use of controlled substances as follows:

1. In a hospital or nursing home without an in-house pharmacy, a pharmacist shall supervise.

2. In an emergency medical services agency, the operational medical director shall supervise.

3. For any other type of applicant or registrant, a pharmacist or a prescriber whose scope of practice is consistent with the practice of the applicant or registrant and who is approved by the board may provide the required supervision.

B. The supervising practitioner shall approve the list of drugs that may be ordered by the holder of the controlled substances registration; possession of controlled substances by the entity shall be limited to such approved drugs. The list of drugs approved by the supervising practitioner shall be maintained at the address listed on the controlled substances registration.

C. Access to the controlled substances shall be limited to (i) the supervising practitioner or to those persons who are authorized by the supervising practitioner and who are authorized by law to administer drugs in Virginia; (ii) such other persons who have successfully completed a training program for repackaging of prescription drug orders in a CSB, BHA, or PACE site as authorized in § 54.1-3420.2 of the Code of Virginia; (iii) other such persons as designated by the supervising practitioner or the responsible party to have access in an emergency situation; or (iv) persons authorized by the Department of Behavioral Health and Developmental Services to train individuals on the administration of naloxone and to dispense naloxone for opioid overdose reversal. If approved by the supervising practitioner, pharmacy technicians may have access for the purpose of delivering controlled substances to the registrant, stocking controlled substances in automated drug dispensing devices systems or remote dispensing systems, conducting inventories, audits and other recordkeeping requirements, overseeing delivery of dispensed prescriptions at an alternate delivery site, and repackaging of prescription drug orders retained by a CSB, BHA, or PACE site as authorized in § 54.1-3420.2 of the Code of Virginia. Access to stock drugs in a crisis stabilization unit shall be limited to prescribers, nurses, or pharmacists.

D. The supervising practitioner shall establish procedures for and provide training as necessary to ensure compliance with all requirements of law and regulation, including storage, security, and recordkeeping.

E. Within 14 days of a change in the responsible party or supervising practitioner assigned to the registration, either the responsible party or outgoing responsible party shall inform the board, and a new application shall be submitted indicating the name and license number, if applicable, of the new responsible party or supervising practitioner.

18VAC110-20-728. Drugs for immediate treatment in crisis stabilization units.

A. In accordance with § 54.1-3423 of the Code of Virginia, a crisis stabilization unit shall apply for and obtain a controlled substances registration in order to maintain a stock of Schedule Schedules II through VI controlled substances for immediate treatment of patients in crisis. Schedule II through V controlled substances shall not be stocked. The responsible party listed on the application shall be a nurse who regularly administers controlled substances at the crisis stabilization unit and the supervising practitioner shall be either the medical director for the unit or a pharmacist from a provider pharmacy.

B. In consultation with a provider pharmacist, the medical director for the unit shall determine the list of controlled substances to be stocked at the crisis stabilization unit. The list shall be limited to Schedule VI controlled substances and only those drugs routinely used for treatment of patients admitted for crisis stabilization. Only drugs on this drug list may be stocked.

C. A nurse administering a drug from this stock pursuant to an oral order of a prescriber in accordance with § 54.1-3423 of the Code of Virginia shall record such order in the patient's medical record.

D. Records.

1. A record shall be maintained of all drugs received as stock by the crisis stabilization unit.

2. A record shall be made documenting administration or other authorized disposition of stocked drugs that includes the following:

a. Name of patient;

b. Date and time of administration;

c. Drug name, strength, and quantity administered;

d. Name or initials of person administering; and

e. Prescriber name.

3. Records shall be maintained at the same location listed on the controlled substances registration or, if maintained in an off-site offsite database, retrieved and made available for inspection or audit within 48 hours of a request by the board or an authorized agent. Any computerized system used to maintain records shall also provide retrieval via computer monitor display or printout of the history for drugs administered during the past two years. It shall also have the capacity of producing a printout of any data which that the registrant is responsible for maintaining.

4. Manual records may be maintained as an electronic image that provides an exact image of the document and is clearly legible.

TITLE 21. SECURITIES AND RETAIL FRANCHISING

STATE CORPORATION COMMISSION

Proposed Regulation

Title of Regulation: 21VAC5-80. Investment Advisors (amending 21VAC5-80-200).

Statutory Authority: §§ 12.1-13 and 13.1-523 of the Code of Virginia.

Public Hearing Information: A public hearing will be held upon request.

Public Comment Deadline: July 13, 2026.

Agency Contact: Ashley Vick, Manager of Audit, Division of Securities and Retail Franchising, State Corporation Commission, Tyler Building, Ninth Floor, P.O. Box 1197, Richmond, VA 23218, telephone (804) 786-8431, fax (804) 371-9911, or email ashley.vick@scc.virginia.gov.

Summary:

The proposed amendments (i) remove the existing prohibition against client testimonials, which will be permitted under § 13.1-515 B of the Code of Virginia, as amended by Chapter 622 of the 2026 Virginia Acts of Assembly; and (ii) adopt the federal Securities and Exchange Commission Rule at 17 CFR 275.206(4)-1 under the Investment Advisers Act of 1940 (15 USC § 80b-1 et seq.).

AT RICHMOND, MAY 12, 2026

COMMONWEALTH OF VIRGINIA, ex rel.

STATE CORPORATION COMMISSION

CASE NO. SEC-2026-00018

Ex Parte: In the matter of

Adopting Revisions to the Rules

Governing the Virginia Securities Act

ORDER ESTABLISHING PROCEEDING

Section 12.1-13 of the Code of Virginia (Code) provides, in relevant part, that "[i]n the administration and enforcement of all laws within its jurisdiction, the "[State Corporation Commission (Commission)] shall have the power to promulgate rules and regulations[.]" Section 13.1-523 of the Virginia Securities Act (Act), § 13.1-501 et seq. of the Code, provides that the Commission shall have authority to make, amend and rescind such rules and forms as may be necessary to carry out the provisions of Chapter 5 of Title 13.1 of the Code. The rules issued by the Commission pursuant to § 13.1-523 of the Act (Rules) are set forth, in part, in Chapter 80 of Title 21 of the Virginia Administrative Code.¹

Chapter 622 of the 2026 Virginia Acts of Assembly (Chapter 622), which will amend § 13.1-515 of the Act on July 1, 2026, provides that an investment advisor registered under the Act may solicit, disseminate, or otherwise use advertisements, including client testimonials and endorsements, provided such advertisements comply with the requirements for an advertisement solicited, disseminated, or used by a federal covered advisor under § 206(4)-1 of the Investment Advisers Act of 1940, 15 U.S.C. § 80b-1 et seq. (SEC Marketing Rule).

To comply with and implement the new legislation, the Division of Securities and Retail Franchising (Division) has submitted to the Commission proposed revisions to Chapter 80 of Title 21. Specifically, the Division seeks to amend subdivisions A 13 and B 13 of Rule 21VAC5-80-200 to: (a) remove the existing prohibition against client testimonials, which will be permitted under § 13.1-515 B of the Act, as amended by Chapter 622; and (b) adopt the SEC Marketing Rule. Collectively, these are referred to as the Proposed Revisions.

The Proposed Revisions would no longer prohibit registered investment advisors and investment advisor representatives from using advertisements that refer to client testimonials – and would now provide registered investment advisors and investment advisor representatives with the option to use advertisements, including client testimonials and endorsements, in accordance with the SEC Marketing Rule – as long as they comply with the SEC Marketing Rule’s requirements for such advertisements and otherwise comply with the Act and the Rules.

The Division has recommended to the Commission that the Proposed Revisions should be considered for adoption, with an effective date of September 1, 2026.

NOW THE COMMISSION, upon consideration of this matter, is of the opinion and finds that a proceeding should be established to consider revising the Rules. To initiate this proceeding, the Division has prepared the Proposed Revisions, which are appended to this Order Establishing Proceeding (Order). The Commission finds that notice of the Proposed Revisions should be given to the public, and that interested persons should be provided an opportunity to file written comments on, propose modifications or supplements to, or request a hearing on the Proposed Revisions, with a proposed effective date of September 1, 2026.

Accordingly, IT IS ORDERED THAT:

(1) This case is docketed and assigned Case No. SEC-2026-00018.

(2) All comments and other documents and pleadings filed in this matter shall be submitted electronically to the extent authorized by Rule 5VAC5-20-150, Copies and format, of the Commission's Rules of Practice and Procedure.² Confidential and Extraordinarily Sensitive Information shall not be submitted electronically and shall comply with Rule 5VAC5-20-170, Confidential information, of the Rules of Practice. Any person seeking to hand deliver and physically file or submit any pleading or other document shall contact the Clerk's Office Document Control Center at (804) 371-9838 to arrange the delivery.

(3) On or before July 13, 2026, any interested person may comment on, propose modifications or supplements to, or request a hearing on the Proposed Revisions by following the instructions on the Commission's website: scc.virginia.gov/case-information/submit-public-comments. Those unable, as a practical matter, to submit such documents electronically may file such comments by U.S. mail to the Clerk of the State Corporation Commission, c/o Document Control Center, P.O. Box 2118, Richmond, Virginia 23218-2118. All documents shall refer to Case No. SEC-2026-00018. Any request for hearing shall state why a hearing is necessary and why the issues raised in the request for hearing cannot be addressed adequately in written comments.

(4) The Division shall file its response to any comments filed pursuant to Ordering Paragraph (3) on or before August 10, 2026.

(5) If a sufficient request for hearing is not received, the Commission may consider the matter and enter an order based upon the comments, documents or other pleadings filed in this proceeding.

(6) The Division shall provide notice of this Order to any interested persons as the Division may designate.

(7) The Commission's Office of General Counsel shall provide a copy of this Order, together with the Proposed Revisions, to the Virginia Registrar of Regulations for publication in the Virginia Register of Regulations.

(8) Interested persons may download unofficial copies of the Order and the Proposed Revisions from the Commission's website: scc.virginia.gov/case-information.

(9) This matter is continued.

A COPY hereof shall be sent by the Clerk of the Commission to: John Farmer, Jr., Senior Assistant Attorney General, at JFarmer@oag.state.va.us, Office of the Attorney General, Division of Consumer Counsel, 202 N. 9th Street, 8th Floor, Richmond, Virginia 23219-3424; and the Commission’s Office of General Counsel and the Director of the Division of Securities and Retail Franchising.

21VAC5-80-200. Dishonest or unethical practices.

A. An investment advisor or federal covered advisor is a fiduciary and has a duty to act primarily for the benefit of his the advisor's clients. While the extent and nature of this duty varies according to the nature of the relationship between an investment advisor or federal covered advisor and his the advisor's clients and the circumstances of each case, an investment advisor or federal covered advisor who is registered or required to be registered shall not engage in unethical practices, including the following:

1. Recommending to a client to whom investment supervisory, management, or consulting services are provided the purchase, sale, or exchange of any security without reasonable grounds to believe that the recommendation is suitable for the client on the basis of information furnished by the client after reasonable inquiry concerning the client's investment objectives, financial situation, risk tolerance and needs, and any other information known or acquired by the investment advisor or federal covered advisor after reasonable examination of the client's financial records.

2. Placing an order to purchase or sell a security for the account of a client without written authority to do so.

3. Placing an order to purchase or sell a security for the account of a client upon instruction of a third party without first having obtained a written third-party authorization from the client.

4. Exercising any discretionary power in placing an order for the purchase or sale of securities for a client without obtaining written discretionary authority from the client within 10 business days after the date of the first transaction placed pursuant to oral discretionary authority, unless the discretionary power relates solely to the price at which, or the time when, an order involving a definite amount of a specified security shall be executed, or both.

5. Inducing trading in a client's account that is excessive in size or frequency in view of the financial resources, investment objectives, and character of the account.

6. Borrowing money or securities from a client unless the client is a broker-dealer, an affiliate of the investment advisor or federal covered advisor, or a financial institution engaged in the business of loaning funds or securities.

7. Loaning money to a client unless the investment advisor or federal covered advisor is a financial institution engaged in the business of loaning funds or the client is an affiliate of the investment advisor or federal covered advisor.

8. Misrepresenting to any advisory client, or prospective advisory client, the qualifications of the investment advisor or federal covered advisor, or misrepresenting the nature of the advisory services being offered or fees to be charged for the services, or omission to state a material fact necessary to make the statements made regarding qualifications services or fees, in light of the circumstances under which they the statements are made, not misleading.

9. Providing a report or recommendation to any advisory client prepared by someone other than the investment advisor or federal covered advisor without disclosing that fact. This prohibition does not apply to a situation where the advisor uses published research reports or statistical analyses to render advice or where an advisor orders such a report in the normal course of providing service.

10. Charging a client an unreasonable advisory fee in light of the fees charged by other investment advisors or federal covered advisors providing essentially the same services.

11. Failing to disclose to clients in writing before any advice is rendered any material conflict of interest relating to the investment advisor or federal covered advisor or any of his the advisor's employees which that could reasonably be expected to impair the rendering of unbiased and objective advice, including:

a. Compensation arrangements connected with advisory services to clients which that are in addition to compensation from such clients for such services; or

b. Charging a client an advisory fee for rendering advice when a commission for executing securities transactions pursuant to such advice will be received by the advisor or his the advisor's employees.

12. Guaranteeing a client that a specific result will be achieved as a result of the advice which that will be rendered.

13. Directly or indirectly using any advertisement that does not comply with SEC Rule 206(4)-1 under the Investment Advisers Act of 1940 or does any one of the following:

a. Refers to any testimonial of any kind concerning the investment advisor or investment advisor representative or concerning any advice, analysis, report, or other service rendered by the investment advisor or investment advisor representative;

b. a. Refers to past specific recommendations of the investment advisor or investment advisor representative that were or would have been profitable to any person; except that an investment advisor or investment advisor representative may furnish or offer to furnish a list of all recommendations made by the investment advisor or investment advisor representative within the immediately preceding period of not less than one year if the advertisement or list also includes both of the following:

(1) The name of each security recommended, the date and nature of each recommendation, the market price at that time, the price at which the recommendation was to be acted upon, and the most recently available market price of each security; and

(2) A legend on the first page in prominent print or type that states that the reader should not assume that recommendations made in the future will be profitable or will equal the performance of the securities in the list;

c. b. Represents that any graph, chart, formula, or other device being offered can be used to determine which securities to buy or sell, or when to buy or sell them; or which that represents, directly or indirectly, that any graph, chart, formula, or other device being offered will assist any person in making that person's own decisions as to which securities to buy or sell, or when to buy or sell them, without prominently disclosing in the advertisement the limitations thereof and the risks associated to its use;

d. c. Represents that any report, analysis, or other service will be furnished for free or without charge, unless the report, analysis, or other service actually is or will be furnished entirely free and without any direct or indirect condition or obligation;

e. d. Represents that the commission has approved any advertisement; or

f. e. Contains any untrue statement of a material fact, or that is otherwise false or misleading.

For the purposes of this section, the term "advertisement" includes any notice, circular, letter, or other written communication addressed to more than one person, or any notice or other announcement in any electronic or paper publication, by radio or television, or by any medium, that offers any one of the following:(i) Any analysis, report, or publication concerning securities;(ii) Any analysis, report, or publication that is to be used in making any determination as to when to buy or sell any security or which security to buy or sell;(iii) Any graph, chart, formula, or other device to be used in making any determination as to when to buy or sell any security, or which security to buy or sell; or(iv) Any other investment advisory service with regard to securities has the same meaning as in Rule 206(4)-1(e)(1) under the Investment Advisers Act of 1940.

14. Disclosing the identity, affairs, or investments of any client to any third party unless required by law or an order of a court or a regulatory agency to do so, or unless consented to by the client.

15. Taking any action, directly or indirectly, with respect to those securities or funds in which any client has any beneficial interest, where the investment advisor has custody or possession of such securities or funds, when the investment advisor's action is subject to and does not comply with the safekeeping requirements of 21VAC5-80-146.

16. Entering into, extending, or renewing any investment advisory contract unless the contract is in writing and discloses, in substance, the services to be provided, the term of the contract, the advisory fee, the formula for computing the fee, the amount of prepaid fee to be returned in the event of contract termination or nonperformance, whether the contract grants discretionary power to the investment advisor or federal covered advisor, and that no assignment of such contract shall be made by the investment advisor or federal covered advisor without the consent of the other party to the contract.

17. Failing to clearly and separately disclose to its customer, prior to any security transaction, providing investment advice for compensation or any materially related transaction that the customer's funds or securities will be in the custody of an investment advisor or contracted custodian in a manner that does not provide Securities Investor Protection Corporation protection, or equivalent third-party coverage over the customer's assets.

18. Using a certification or professional designation in connection with the provision of advice as to the value of or the advisability of investing in, purchasing, or selling securities, either directly or indirectly or through publications or writings, or by issuing or promulgating analyses or reports relating to securities that indicates or implies that the user has special certification or training in advising or servicing senior citizens or retirees in such a way as to mislead any person.

a. The use of such certification or professional designation includes the following:

(1) Use of a certification or designation by a person who has not actually earned or is otherwise ineligible to use such certification or designation;

(2) Use of a nonexistent or self-conferred certification or professional designation;

(3) Use of a certification or professional designation that indicates or implies a level of occupational qualifications obtained through education, training, or experience that the person using the certification or professional designation does not have; or

(4) Use of a certification or professional designation that was obtained from a designating or certifying organization that:

(a) Is primarily engaged in the business of instruction in sales or marketing;

(b) Does not have reasonable standards or procedures for assuring ensuring the competency of its designees or certificants;

(c) Does not have reasonable standards or procedures for monitoring and disciplining its designees or certificants for improper or unethical conduct; or

(d) Does not have reasonable continuing education requirements for its designees or certificants in order to maintain the designation or certificate.

b. There is a rebuttable presumption that a designating or certifying organization is not disqualified solely for purposes of subdivision 18 a (4) of this subsection, when the organization has been accredited by:

(1) The American National Standards Institute;

(2) The Institute for Credentialing Excellence (formerly the National Commission for Certifying Agencies); or

(3) An organization that is on the United States Department of Education's list entitled "Accrediting Agencies Recognized for Title IV Purposes" and the designation or credential issued therefrom does not primarily apply to sales or marketing.

c. In determining whether a combination of words (or an acronym standing for a combination of words) constitutes a certification or professional designation indicating or implying that a person has special certification or training in advising or servicing senior citizens or retirees, factors to be considered shall include:

(1) Use of one or more words such as "senior," "retirement," "elder," or like words, combined with one or more words such as "certified," "chartered," "adviser," "specialist," "consultant," "planner," or like words, in the name of the certification or professional designation; and

(2) The manner in which those words are combined.

d. For purposes of this section, a certification or professional designation does not include a job title within an organization that is licensed or registered by a state or federal financial services regulatory agency, when that job title:

(1) Indicates seniority within the organization; or

(2) Specifies an individual's area of specialization within the organization.

For purposes of this subdivision d, "financial services regulatory agency" includes an agency that regulates broker-dealers, investment advisers, or investment companies as defined under § 3 (a)(1) of the Investment Company Act of 1940 (15 USC § 80a-3(a)(1)).

e. Nothing in this regulation shall limit the commission's authority to enforce existing provisions of the law.

B. An investment advisor representative is a fiduciary and has a duty to act primarily for the benefit of his the representative's clients. While the extent and nature of this duty varies according to the nature of the relationship between an investment advisor representative and his the representative's clients and the circumstances of each case, an investment advisor representative who is registered or required to be registered shall not engage in unethical practices, including the following:

1. Recommending to a client to whom investment supervisory, management, or consulting services are provided the purchase, sale, or exchange of any security without reasonable grounds to believe that the recommendation is suitable for the client on the basis of information furnished by the client after reasonable inquiry concerning the client's investment objectives, financial situation and needs, and any other information known or acquired by the investment advisor representative after reasonable examination of the client's financial records.

2. Placing an order to purchase or sell a security for the account of a client without written authority to do so.

3. Placing an order to purchase or sell a security for the account of a client upon instruction of a third party without first having obtained a written third-party authorization from the client.

4. Exercising any discretionary power in placing an order for the purchase or sale of securities for a client without obtaining written discretionary authority from the client within 10 business days after the date of the first transaction placed pursuant to oral discretionary authority, unless the discretionary power relates solely to the price at which, or the time when, an order involving a definite amount of a specified security shall be executed, or both.

5. Inducing trading in a client's account that is excessive in size or frequency in view of the financial resources, investment objectives, and character of the account.

6. Borrowing money or securities from a client unless the client is a broker-dealer, an affiliate of the investment advisor representative, or a financial institution engaged in the business of loaning funds or securities.

7. Loaning money to a client unless the investment advisor representative is engaged in the business of loaning funds or the client is an affiliate of the investment advisor representative.

8. Misrepresenting to any advisory client, or prospective advisory client, the qualifications of the investment advisor representative, or misrepresenting the nature of the advisory services being offered or fees to be charged for the services, or omission to state a material fact necessary to make the statements made regarding qualifications, services or fees, in light of the circumstances under which they the statements are made, not misleading.

9. Providing a report or recommendation to any advisory client prepared by someone other than the investment advisor or federal covered advisor who the investment advisor representative is employed by or associated with without disclosing that fact. This prohibition does not apply to a situation where the investment advisor or federal covered advisor uses published research reports or statistical analyses to render advice or where an investment advisor or federal covered advisor orders such a report in the normal course of providing service.

10. Charging a client an unreasonable advisory fee in light of the fees charged by other investment advisor representatives providing essentially the same services.

11. Failing to disclose to clients in writing before any advice is rendered any material conflict of interest relating to the investment advisor representative which that could reasonably be expected to impair the rendering of unbiased and objective advice, including:

a. Compensation arrangements connected with advisory services to clients which that are in addition to compensation from such clients for such services; or

b. Charging a client an advisory fee for rendering advice when a commission for executing securities transactions pursuant to such advice will be received by the investment advisor representative.

12. Guaranteeing a client that a specific result will be achieved as a result of the advice which that will be rendered.

13. Directly or indirectly using any advertisement that does not comply with SEC Rule 206(4)-1 under the Investment Advisers Act of 1940 or does any one of the following:

a. Refers to any testimonial of any kind concerning the investment advisor or investment advisor representative or concerning any advice, analysis, report, or other service rendered by the investment advisor or investment advisor representative;

b. a. Refers to past specific recommendations of the investment advisor or investment advisor representative that were or would have been profitable to any person; except that an investment advisor or investment advisor representative may furnish or offer to furnish a list of all recommendations made by the investment advisor or investment advisor representative within the immediately preceding period of not less than one year if the advertisement or list also includes both of the following:

(1) The name of each security recommended, the date and nature of each recommendation, the market price at that time, the price at which the recommendation was to be acted upon, and the most recently available market price of each security; and

(2) A legend on the first page in prominent print or type that states that the reader should not assume that recommendations made in the future will be profitable or will equal the performance of the securities in the list;

c. b. Represents that any graph, chart, formula, or other device being offered can be used to determine which securities to buy or sell, or when to buy or sell them; or which that represents, directly or indirectly, that any graph, chart, formula, or other device being offered will assist any person in making that person's own decisions as to which securities to buy or sell, or when to buy or sell them, without prominently disclosing in the advertisement the limitations thereof and the risks associated with its use;

d. c. Represents that any report, analysis, or other service will be furnished for free or without charge, unless the report, analysis, or other service actually is or will be furnished entirely free and without any direct or indirect condition or obligation;

e. d. Represents that the commission has approved any advertisement; or

f. e. Contains any untrue statement of a material fact, or that is otherwise false or misleading.

For the purposes of this section, the term "advertisement" includes any notice, circular, letter, or other written communication addressed to more than one person, or any notice or other announcement in any electronic or paper publication, by radio or television, or by any medium, that offers any one of the following: (i) Any analysis, report, or publication concerning securities; (ii) Any analysis, report, or publication that is to be used in making any determination as to when to buy or sell any security or which security to buy or sell; (iii) Any graph, chart, formula, or other device to be used in making any determination as to when to buy or sell any security, or which security to buy or sell; or (iv) Any other investment advisory service with regard to securities has the same meaning as in Rule 206(4)-1(e)(1) under the Investment Advisers Act of 1940.

14. Disclosing the identity, affairs, or investments of any client to any third party unless required by law or an order of a court or a regulatory agency to do so, or unless consented to by the client.

15. Taking any action, directly or indirectly, with respect to those securities or funds in which any client has any beneficial interest, where the investment advisor representative other than a person associated with a federal covered advisor has custody or possession of such securities or funds, when the investment advisor representative's action is subject to and does not comply with the safekeeping requirements of 21VAC5-80-146.

16. Entering into, extending, or renewing any investment advisory or federal covered advisory contract unless such contract is in writing and discloses, in substance, the services to be provided, the term of the contract, the advisory fee, the formula for computing the fee, the amount of prepaid fee to be returned in the event of contract termination or nonperformance, whether the contract grants discretionary power to the investment advisor representative, and that no assignment of such contract shall be made by the investment advisor representative without the consent of the other party to the contract.

17. Failing to clearly and separately disclose to its customer, prior to any security transaction, providing investment advice for compensation or any materially related transaction that the customer's funds or securities will be in the custody of an investment advisor or contracted custodian in a manner that does not provide Securities Investor Protection Corporation protection, or equivalent third-party coverage over the customer's assets.

18. Using a certification or professional designation in connection with the provision of advice as to the value of or the advisability of investing in, purchasing, or selling securities, either directly or indirectly or through publications or writings, or by issuing or promulgating analyses or reports relating to securities that indicates or implies that the user has special certification or training in advising or servicing senior citizens or retirees in such a way as to mislead any person.

a. The use of such certification or professional designation includes the following:

(1) Use of a certification or designation by a person who has not actually earned or is otherwise ineligible to use such certification or designation;

(2) Use of a nonexistent or self-conferred certification or professional designation;

(3) Use of a certification or professional designation that indicates or implies a level of occupational qualifications obtained through education, training, or experience that the person using the certification or professional designation does not have; or

(4) Use of a certification or professional designation that was obtained from a designating or certifying organization that:

(a) Is primarily engaged in the business of instruction in sales or marketing;

(b) Does not have reasonable standards or procedures for assuring ensuring the competency of its designees or certificants;

(c) Does not have reasonable standards or procedures for monitoring and disciplining its designees or certificants for improper or unethical conduct; or

(d) Does not have reasonable continuing education requirements for its designees or certificants in order to maintain the designation or certificate.

b. There is a rebuttable presumption that a designating or certifying organization is not disqualified solely for purposes of subdivision 18 a (4) of this subsection, when the organization has been accredited by:

(1) The American National Standards Institute;

(2) The Institute for Credentialing Excellence (formerly the National Commission for Certifying Agencies); or

(3) An organization that is on the United States Department of Education's list entitled "Accrediting Agencies Recognized for Title IV Purposes" and the designation or credential issued therefrom does not primarily apply to sales or marketing.

c. In determining whether a combination of words (or an acronym standing for a combination of words) constitutes a certification or professional designation indicating or implying that a person has special certification or training in advising or servicing senior citizens or retirees, factors to be considered shall include:

(1) Use of one or more words such as "senior," "retirement," "elder," or like words, combined with one or more words such as "certified," "chartered," "adviser," "specialist," "consultant," "planner," or like words, in the name of the certification or professional designation; and

(2) The manner in which those words are combined.

d. For purposes of this section, a certification or professional designation does not include a job title within an organization that is licensed or registered by a state or federal financial services regulatory agency, when that job title:

(1) Indicates seniority within the organization; or

(2) Specifies an individual's area of specialization within the organization.

For purposes of this subdivision d, "financial services regulatory agency" includes an agency that regulates broker-dealers, investment advisers, or investment companies as defined under § 3(a)(1) of the Investment Company Act of 1940 (15 USC § 80a-3(a)(1).

e. Nothing in this regulation shall limit the commission's authority to enforce existing provisions of law.

C. The conduct set forth in subsections A and B of this section is not all inclusive. Engaging in other conduct such as nondisclosure, incomplete disclosure, or deceptive practices may be deemed an unethical business practice except to the extent permitted by the National Securities Markets Improvement Act of 1996 (Pub. L. No. 104-290 (96)).

D. The provisions of this section shall apply to federal covered advisors to the extent that fraud or deceit is involved, or as otherwise permitted by the National Securities Markets Improvement Act of 1996 (Pub. L. No. 104-290 (96)).

E. An investment advisor or investment advisor representative may delay or refuse to place an order or to disburse funds that may involve or result in the financial exploitation of an individual pursuant to § 63.2-1606 L of the Code of Virginia.

F. For purposes of this section, any mandatory arbitration provision in an advisory contract shall be prohibited.

G. The investment advisor or investment advisor representative shall notify the Division of Securities and Retail Franchising, State Corporation Commission and the client of an unauthorized access to records that may expose a client's identity or investments to a third party within three business days of the discovery of the unauthorized access.