Revisions to Standards for Licensed Assisted Living Facilities and General Procedures and Information for Licensure

The Department of Social Services (DSS) Division of Licensing Programs’ circulated a notice to assisted living providers on July 12th regarding revisions to the “Standards for Licensed Assisted Living Facilities” and “General Procedures and Information for Licensure” which became effective July 17, 2013.  The revision was needed due to changes made to the Code of Virginia in the 2013 Session of the General Assembly.  Actions on the regulations were exempt from the full Administrative Process Act regulatory process since the purpose of the revisions was strictly to conform to changes in state law and no agency discretion was involved.  

The changes specify that (1) the Department of Social Services (DSS) shall make an investigation of an applicant for licensure’s financial responsibility only upon receipt of the initial application; (2) financial records of an applicant shall not be subject to inspection if the applicant submits an operating budget and at least one credit reference; (3) records that contain confidential propriety information furnished to DSS pursuant to § 63.2-1702 of the Code of Virginia shall be exempt from disclosure pursuant to subdivision 4 of § 2.2-3705.5; and (4) the commissioner of DSS shall issue an appropriate license to the applicant only if, among meeting other requirements, at the time of the initial application the applicant has submitted an operating budget and at least one letter of credit.  

The revised Standards and Regulations for Licensed Assisted Living Facilities can be found on the DSS public website.  A replacement page with the changes is also on the same website so providers who have a hard copy of the Standards can update them with the latest revisions.

Following are the specific changes to the Standards for Licensed Assisted Living Facilities:

  • Deleted the subdivision 22VAC40-72-50 B. 1. (The licensee shall give evidence of financial responsibility.) and the subdivision 22VAC40-72-50 B. 6. (The licensee shall develop and maintain an operating budget, including resident care, dietary and physical plant maintenance allocations and expenditures. The budget shall be sufficient to ensure adequate funds in all aspects of operation.).  The remaining subdivisions in that subsection were renumbered.

For General Procedures and Information for Licensure, the changes:

  • Add to 22 VAC 40-80-20 C (Preplanning) a statement that on receipt of the initial application the department will investigate the financial responsibility of the applicant.
  • Create in 22 VAC 40-80-160 (The Investigation) a new section A stating that upon receipt of a new application the commissioner shall (1) investigate the activities, services and facilities of the applicant and his character and reputation, (2) if the applicant is an association, partnership, limited liability company or corporation, investigate the character and reputation of its officers and agents, and (3) upon receipt of the initial application, investigate the applicant’s financial responsibility.  The remainder of this standard has been re-lettered to reflect this addition.
  • Add to 22 VAC 40-80-160 C (new D) language stating that records containing confidential proprietary information furnished to the department pursuant to this section shall be exempt from disclosure and that at the time of the initial inspection, the financial records of an applicant shall not be subject to inspection if the applicant submits an operating budget and at least one credit reference.
  • An exception in 22 VAC 40-80-160 C (new D) pertaining to inspection of financial records of child welfare agencies was deleted as the new language regarding inspection of financial records will also apply to child welfare agencies.

The updated General Procedures and Information for Licensure regulation may be found on the DSS public website.   Assisted Living providers are encouraged to review 22 VAC 40-80-20 and 22 VAC 40-80-160 to become knowledgeable of the updated provisions of the regulation.  Providers should direct questions to your Licensing Inspector.