New Virginia DBHDS Licensing Rules Aim to Ease Behavioral Health Provider Burden

In a move aimed at streamlining oversight and reducing administrative burdens on licensed behavioral health providers, the Virginia Department of Behavioral Health and Developmental Services (DBHDS) has finalized a series of “noncontroversial regulatory reductions” or amendments. 

These changes, which take effect on June 19, 2025, impact all providers licensed under DBHDS and reflect a broader effort by the governor to eliminate regulations seen as obsolete, duplicative, or unnecessarily prescriptive.

Executive Directive 1, issued by the Governor in 2022, directed all executive branch agencies to reduce regulations not mandated by federal or state statute by at least 25 percent. DBHDS, in coordination with the Office of the Attorney General, has since engaged in a review process to identify “noncontroversial” regulatory provisions for repeal or revision. 

As a result, changes have been adopted across the Rules and Regulations for Licensing Providers (12VAC35-105) and the Regulations for Children’s Residential Facilities (12VAC35-46). 

DBHDS has published a presentation and other guidance materials to assist providers in understanding and implementing the revised requirements. 

In Chapter 105, 11 regulations have been repealed and 32 have been reduced. 

Notable Changes to the Rules and Regulations for Licensing Providers:

1. 12VAC35-105-490 – Written Grievance Policy (Repealed)

DBHDS has clarified that enforcement of employment-related grievance policies is not within its jurisdiction. The responsibility for handling employee grievances falls under general employment law, not DBHDS regulation. Providers should continue to ensure compliance with federal and state employment laws but are no longer required to maintain a written grievance policy as a condition of licensure.

2. 12VAC35-105-500 – Students and Volunteers (Repealed)

While supervision of students and volunteers remains a concern for safety, DBHDS determined that prior regulations were too restrictive. Key requirements from subsection B have been relocated to Section 590 (Staffing), where they better align with staffing oversight. Providers now have greater discretion to develop policies related to the use of students and volunteers, provided core safety and supervision expectations are met.

3. 12VAC35-105-570 – Mission Statement (Repealed)

This repeal reflects DBHDS’s shift toward focusing regulatory oversight on operational and safety-related requirements. While mission statements may still serve a valuable internal or marketing purpose, they no longer carry regulatory weight and are not subject to DBHDS review or approval.

4. 12VAC35-105-790 – Medication Administration and Storage or Pharmacy Operation (Repealed)

This section was deemed redundant, with Subsection A duplicating content found in Section 150 and Subsection B covered more appropriately in other areas. Providers should refer to Section 150 for current medication administration standards.

5. 12VAC35-105-880 – Documentation Policy (Repealed)

Documentation expectations remain intact but are consolidated under Section 870. This repeal removes duplicative regulatory text and simplifies compliance by reducing policy overlap.

6. 12VAC35-105-900 – Record Storage and Security (Repealed)

The content of this regulation is already governed by Section 880 and by HIPAA, rendering this section unnecessary. Providers must still maintain secure, confidential recordkeeping in accordance with state and federal law, but this standalone section is eliminated.

7. 12VAC35-105-920 – Review Process for Records (Repealed)

This requirement overlapped substantially with Sections 870 and 880, which have been consolidated under Section 870 and remains in force. Providers should continue to review records in accordance with best practices and applicable remaining regulations.

8. 12VAC35-105-1055 – Description of Level of Care Provided (Repealed)

This section has been integrated into the American Society of Addiction Medicine (ASAM) framework, now referenced throughout applicable regulations. Providers delivering services such as substance use treatment should ensure alignment with ASAM level of care descriptions.

9. 12VAC35-105-1060 – Cooperative Agreements with Community Agencies (Repealed)

Expectations for coordination of care and interagency relationships are now embedded in the ASAM-aligned sections, streamlining where this content appears and eliminating duplicative mandates.

10. 12VAC35-105-1080 – Direct-Care Training for Providers of Detoxification Services (Repealed)

Although detox services remain regulated, training requirements are now embedded within the ASAM staffing framework. Providers of withdrawal management services should reference ASAM staffing standards to ensure ongoing compliance.

11. 12VAC35-105-9998 – FORMS (12VAC35-105) (Repealed)

This repeal removes reference to outdated paper forms, as DBHDS has transitioned fully to its web-based licensing system. Providers should ensure their administrative staff are trained and comfortable using the current online portal for all submissions.

Bottom Line for Licensed Behavioral Health Providers

These repeals offer providers more flexibility, reduced paperwork, and consolidated standards, but they do not eliminate accountability. Providers are still expected to maintain compliance with applicable regulations, including those that remain in force or have been integrated into other sections. Careful review of the newly amended sections and available DBHDS training tools is essential ahead of the June 19, 2025, effective date. 

Please contact Peter Mellette, Harrison Gibbs, or Alex Owens with Goodman Allen Donnelly’s Health Care practice with any questions.