Authority: Title 63.1, Chapters 1, 6, 6.2, 6.5, 13 and 14, Code of Virginia; P.L. 104-193, Titles IV A, XIX, and XXI, Social Security Act, Federal Code, as amended.

A. The amount for Benefit Programs Administration, including the Food Stamp program, shall be expended under regulations of the Board of Social Services to reimburse county and city welfare/social services boards pursuant to § 63.1-92, Code of Virginia, and subject to the same percentage limitations for other administrative services performed by county and city public welfare/social services boards and superintendents of public welfare/social services pursuant to other provisions of the Code of Virginia, as amended.

B. Pursuant to the provisions of §§ 63.1-93, 63.1-96, 63.1-96.1, 63.1-98, 63.1-99.1, 63.1-122 and 63.1-123, Code of Virginia, all moneys deducted from funds otherwise payable out of the state treasury to the counties and cities pursuant to the provisions of §§ 63.1-122 and 63.1-123, Code of Virginia, shall be credited to the applicable general fund account.

C. Out of the federal fund appropriation for Benefit Programs Administration, amounts estimated at $8,000,000 the first year and $8,000,000 the second year shall be set aside for allowable local salary costs which exceed available general fund reimbursement, and amounts estimated at $6,000,000 the first year and $6,000,000 the second year shall be set aside to reimburse local governments for allowable costs incurred in administering public assistance programs.

D. Included in this appropriation are funds to reimburse local social service agencies for eligibility workers who interview applicants to determine qualification for public assistance benefits which include but are not limited to: Temporary Assistance for Needy Families; Food Stamps; and Medicaid.

E. As a condition of this appropriation, the Department shall work cooperatively with the Department of Medical Assistance Services to support eligibility determination and outreach functions needed to enroll children eligible for but not enrolled in Medicaid, and to implement the new Virginia Children's Medical Security Insurance Plan.

F. Any special funds set aside for fraud control that are unexpended as of June 30, 2001, shall not revert to the general fund but shall be reappropriated for the same use in the second year. To the extent permitted by federal law, the Department shall access and provide to local departments of social services federal funds for fraud investigation, prevention, and collection programs.

G. As a condition of this appropriation, the Department shall direct $540,055 from the general fund and $540,055 from nongeneral funds in the second year to those localities that have made clear progress in improving the accuracy of their Food Stamp eligibility and/or benefits determinations or that have implemented methods of work processing that are likely to significantly improve such accuracy. The Department shall develop criteria to guide the distribution of such funds.

H. No funds allocated to local departments of social services shall be transferred to the central office of the Department of Social Services for the implementation of the Electronic Benefit Transfer system.

I. No funds allocated to local departments of social services for the determination of eligibility for services and programs of the Department of Medical Assistance Services shall be reduced administratively or transferred to other programs in the Department of Social Services or to other programs under the Secretary of Health and Human Resources.