Authority: Title 60.2, Chapters 1 through 6, Code of Virginia.

A. Revenues deposited into the Special Unemployment Compensation Administration Fund shall be used for the purposes set out in the following order of priority: 1) to support essential services of the Commission, particularly in the event of reductions in federal funding; 2) to finance the cost of capital projects; and 3) to fund the discretionary fund established in § 60.2-315, Code of Virginia. Funding may be transferred from the capital budget to the operating budget consistent with this language.

B.1. This appropriation includes a sum not to exceed $3,406,197 the first year and $2,390,000 the second year, from the Trust and Agency fund for the replacement of mainframe applications with client-server and web-based technology. This equipment will help to lower operating expenses and improve customer service.

2. The Director of the Department of Planning and Budget shall allot this appropriation only upon the presentation of satisfactory information as evaluated by the Department of Technology Planning.

C. Reed Act funds credited to the unemployment trust fund with respect to federal fiscal years 2000, 2001, and 2002, under Section 1103 of the Social Security Act (42 U.S.C.), as amended, shall be used only for the administration of the unemployment compensation program, under the direction of the Virginia Employment Commission and shall not be subject to the requirements of § 60.2-305 of the Code of Virginia.