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2005 Session

Budget Bill - HB1500 (Chapter 951)

Department of the Treasury

Item 291

Item 291

First Year - FY2005Second Year - FY2006
Revenue Administration Services (73200)$8,412,187
$8,763,187
$8,292,667
$9,101,234
Administrative Processing (73201)FY2005 $4,663,352
$5,014,352
FY2006 $4,541,418
$5,176,213
Unclaimed Property Act Administration (73207)FY2005 $3,748,835FY2006 $3,751,249
$3,925,021
Fund Sources: 
GeneralFY2005 $3,794,668FY2006 $3,672,734
$3,706,029
SpecialFY2005 $716,855
$1,067,855
FY2006 $716,855
$1,318,355
Trust and AgencyFY2005 $3,900,664FY2006 $3,903,078
$4,076,850

Authority: Title 2.2, Chapter 18 and §§ 55-210.1 through 55-210.30, Code of Virginia.


A. The amounts for Revenue Administration Services include a sum sufficient nongeneral fund appropriation for personal services and other operating expenses to process checks issued by the Department of Social Services. The estimated cost, excluding actual postage costs, is $264,000 the first year and $264,000 the second year.


B. The amounts for Revenue Administration Services include a sum sufficient nongeneral fund appropriation for administrative expenses to process the Virginia Employment Commission (VEC) and Virginia Retirement System (VRS) checks. The estimated cost for VEC is $250,000 the first year and $250,000 the second year, and for VRS is $19,200 the first year and $19,200 the second year.


C.1. The Department of the Treasury shall administer a centralized mail process for first-class, outbound mail from state agencies located in the Richmond metropolitan area. The department may administer the centralized mail process by outsourcing it to a private contractor if the department determines it would be in the best interest of the Commonwealth. Nongeneral fund agencies shall reimburse the Department for the proportional cost of all operating expenses and equipment costs associated with this operation. The following agencies shall participate:


Department of Agriculture and Consumer Services, Department of Education, Department of General Services, Department of Health Professions, Department of Motor Vehicles, Department of Social Services, Department of Taxation, and Department of Transportation.


2. Additional agencies may participate as approved by the Department of the Treasury. Notwithstanding subparagraph 1 of this paragraph C, any participating agency may be exempted from such participation if the Department of the Treasury deems it to be in the best interest of the participant and the centralized mail process.


3. The Department of the Treasury may transfer its centralized mail processing function to the Department of General Services or another state agency should the two agencies determine that such transfer would be in the best interest of the Commonwealth. Such transfer shall be conditioned upon the establishment of a memorandum of understanding between the two respective agencies and the approval of the Secretary of Finance and the appropriate cabinet secretary for the agency assuming responsibility for the central mail processing function.


D.1. The amounts for Unclaimed Property Act Administration are for administrative and related support costs of the Uniform Disposition of Unclaimed Property Act, to be paid solely from revenues derived pursuant to the Act.


2. The amounts also include a sum sufficient nongeneral fund amount estimated at $700,000 the first year and $700,000 the second year to pay fees for compliance services and securities portfolio custody services for unclaimed property administration.


3. Any revenue derived from the sale of the Department of the Treasury's new unclaimed property system is hereby appropriated to the Department for use in unclaimed property customer service and system enhancements.


E. The State Treasurer is authorized to charge institutions of higher education participating in the private college financing program of the Virginia College Building Authority an administrative fee of up to 10 basis points of the amount financed for each project in addition to a share of direct costs of issuance as determined by the State Treasurer. Revenue collected from this administrative fee shall be deposited to a special fund in the Department of the Treasury to compensate the Department for direct and indirect staff time and expenses involved with this program.


F. The State Treasurer is authorized to sell any securities remitted as unclaimed demutualization proceeds of insurance companies at any time after delivery, pursuant to legislation enacted by the 2003 Session of the General Assembly. The funds derived from the sale of said securities shall be handled in accordance with § 55-210.19, Code of Virginia.


G.1. The State Treasurer is authorized, beginning July 1, 2004, to charge qualified public depositories holding public deposits, as defined in § 2.2-4401, Code of Virginia, an annual administrative fee of not more that one-half of one basis point of their average public deposit balances over a twelve month period. The State Treasurer shall issue guidelines to effect the implementation of this fee. However, the total fees collected from all qualified depositories shall not exceed $100,000 in any one year.


2. Any regulations or guidelines necessary to implement or change the amount of the fee may be adopted without complying with the Administrative Process Act (§2.2-4000 et seq.) provided that input is solicited from qualified public depositories. Such input requires only that notice and an opportunity to submit written comments be given.


H. Out of the amounts for Unclaimed Property Act Administration is $100,000 the first year from a nongeneral fund and $100,000 the second year from a nongeneral fund for enhancements to the unclaimed property system.