Code of Virginia

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Code of Virginia
Title 60.2. Unemployment Compensation
Subtitle .
Chapter 3. Funds
9/30/2022

Chapter 3. Funds.

Article 1. Unemployment Compensation Fund.

§ 60.2-300. Fund continued; accounts maintained.

The special fund established in the state treasury and known as the Unemployment Compensation Fund is continued. The Comptroller shall maintain within the fund two separate accounts:

1. A clearing account; and

2. A benefit account.

Code 1950, § 60-90; 1968, c. 738, § 60.1-106; 1986, c. 480.

§ 60.2-301. Clearing account; payment to credit of federal Unemployment Trust Fund.

All taxes and other moneys required by this title to be paid to the Unemployment Compensation Fund and collected by the Commission, and any interest or earnings upon any moneys or property belonging to the fund shall, promptly upon collection, be paid into the state treasury and credited to the clearing account. Any interest collected on taxes shall be paid into the Special Unemployment Compensation Administration Fund continued by § 60.2-314. Refunds, except for interest collected payable pursuant to § 60.2-524, may be paid from the clearing account. After clearance thereof, all other moneys in the clearing account, including undeliverable payments, shall immediately be paid over to the Secretary of the Treasury of the United States, to the credit of the Unemployment Trust Fund established by the Social Security Act, to be held for the Commonwealth upon the terms and conditions provided in the Social Security Act.

Code 1950, § 60-91; 1968, c. 738, § 60.1-107; 1986, c. 480; 1993, c. 249; 1995, c. 515.

§ 60.2-302. Benefit account; requisitions from federal Unemployment Trust Fund.

Moneys shall be requisitioned from this Commonwealth's account in the Unemployment Trust Fund solely for the payment of benefits and in accordance with regulations prescribed by the Commission, except that money credited to this Commonwealth's account, pursuant to § 903 of the Social Security Act (42 U.S.C. § 1103), shall be used exclusively as provided in § 60.2-305. The Commission shall requisition from the Unemployment Trust Fund such amounts, not exceeding the amount standing to its credit, as it deems necessary for the payment of benefits for a reasonable future period. Upon receipt of such amounts, the same shall be paid into the state treasury to the credit of the benefit account, and shall be used solely to pay the benefits provided for in this title. Any balance of moneys requisitioned from the Unemployment Trust Fund which remains unclaimed or unpaid in the benefit account, including undeliverable payments, after the expiration of the period for which such sums were requisitioned shall either (i) be deducted from estimates for, and may be utilized for the payment of, benefits during succeeding periods, or (ii) in the discretion of the Commission, be paid over to the Secretary of the Treasury of the United States, as provided in § 60.2-301. All benefits shall be paid through public employment offices provided for in this title.

Code 1950, § 60-92; 1960, c. 54; 1968, c. 738, § 60.1-108; 1986, c. 480; 1993, c. 249.

§ 60.2-303. Moneys appropriated to Commission.

All moneys paid into the state treasury and credited to the Unemployment Compensation Fund are hereby appropriated to the Commission for the purposes set forth in this article.

Code 1950, § 60-93; 1968, c. 738, § 60.1-109; 1986, c. 480.

§ 60.2-304. Disbursements by State Treasurer upon warrants of Comptroller.

All payments and disbursements from the Unemployment Compensation Fund shall be made by the State Treasurer upon warrants of the Comptroller issued upon vouchers signed by the Commissioner or by such other person as the Commissioner may designate for that purpose.

Code 1950, § 60-94; 1968, c. 738, § 60.1-110; 1986, c. 480.

§ 60.2-305. Requisition or use of money credited to Commonwealth in Unemployment Trust Fund.

A. 1. Money credited to the account of this Commonwealth in the Unemployment Trust Fund by the Secretary of the Treasury of the United States, pursuant to § 903 of the Social Security Act (42 U.S.C. § 1103), may not be requisitioned from this Commonwealth's account or used except for the payment of benefits and for the payment of expenses incurred for the administration of this title.

2. Such money may be requisitioned, pursuant to § 60.2-302, for the payment of benefits. Such money may also be requisitioned and used for the payment of expenses incurred for the administration of this title but only pursuant to a specific appropriation by the General Assembly and only if the expenses are incurred and the money requisitioned after the enactment of an appropriation law which:

a. Specifies the purpose for which such money is appropriated and the amount appropriated therefor;

b. Limits the period within which such money may be obligated to a period ending not more than two years after the date of the enactment of the appropriation law; and

c. Limits the amount which may be obligated during any twelve-month period beginning on July 1 and ending on the next June 30 to an amount which does not exceed the amount by which (i) the aggregate of the amount credited to the account of this Commonwealth, pursuant to § 903 of the Social Security Act (42 U.S.C. § 1103), during the same twelve-month period and the thirty-four preceding twelve-month periods, exceeds (ii) the aggregate of the amounts obligated for administration and paid out for benefits and charged against the amounts credited to the account of this Commonwealth pursuant to such section during such thirty-five twelve-month periods.

B. Amounts credited to this Commonwealth's account in the Unemployment Trust Fund under § 903 of the Social Security Act (42 U.S.C. § 1103) which are obligated for administration or paid out for benefits shall be charged against equivalent amounts which were first credited and which are not already so charged. However, no amount obligated for administration during a twelve-month period specified in subdivision 2 of subsection A of this section may be charged against any amount credited during such a twelve-month period earlier than the thirty-fourth preceding such period.

C. Money requisitioned as provided for the payment of expenses of administration shall be deposited in the Unemployment Compensation Administration Fund, but, until expended, shall remain a part of the Unemployment Trust Fund. The Commission shall maintain a separate record of the deposit, obligation, expenditure and return of funds so deposited.

Code 1950, § 60-94.1; 1960, c. 54; 1968, c. 131; 1968, c. 738, § 60.1-111; 1970, c. 732; 1972, c. 23; 1986, c. 480.

Article 2. Unemployment Compensation Administration Fund.

§ 60.2-306. Fund continued; available to Commission.

The special fund in the state treasury known as the Unemployment Compensation Administration Fund is continued. All moneys which are deposited or paid into this fund shall be held for use by the Commission.

Code 1950, § 60-95; 1968, c. 738, § 60.1-112; 1986, c. 480.

§ 60.2-307. Moneys constituting fund.

The fund shall consist of all moneys appropriated by this Commonwealth, and all moneys received from the United States, any agency thereof or any other source, for the purpose declared in § 60.2-308. Notwithstanding any provision of this article, all moneys requisitioned and deposited in this fund pursuant to the provisions of subsection C of § 60.2-305 shall remain part of the Unemployment Trust Fund and shall be used only in accordance with the conditions specified in § 60.2-305.

Code 1950, § 60-96; 1956, c. 440; 1960, c. 54; 1968, c. 738, § 60.1-113; 1986, c. 480.

§ 60.2-308. Expenditures solely for cost of administration.

A. All moneys in this fund shall be expended solely for the purpose of defraying the cost of the administration of this title and for no other purpose whatsoever.

B. All moneys received by the Commission pursuant to the provisions of § 302 of the Social Security Act (42 U.S.C. § 502), shall be expended solely for the purposes and in the amounts found necessary by the Secretary of Labor of the United States for the proper and efficient administration of this title.

Code 1950, § 60-97; 1956, c. 440; 1968, c. 738, § 60.1-114; 1986, c. 480.

§ 60.2-309. Special employment service account.

A special employment service account shall be maintained as a part of the Unemployment Compensation Administration Fund for the purposes (i) of maintaining the public employment offices established pursuant to § 60.2-400, and (ii) of cooperating with the United States Employment Service.

Code 1950, § 60-99; 1968, c. 738, § 60.1-116; 1986, c. 480.

§ 60.2-310. Financing.

The State Treasurer is authorized to receive all grants of money apportioned to this Commonwealth under the federal law referred to in § 60.2-400. All funds so received shall be paid into the separate employment service account in the Unemployment Compensation Administration Fund, and are to be held for appropriation to the Commission for the purposes for which they are granted to this Commonwealth.

As a part of any such agreement as is mentioned in subsection C of § 60.2-400 the Commission may accept moneys, services or quarters as a contribution to the employment service account.

Code 1950, § 60-88; 1968, c. 738, § 60.1-104; 1986, c. 480.

§ 60.2-311. Replacing funds lost or expended for unnecessary purposes.

The Commission is authorized and directed to replace in the Unemployment Compensation Administration Fund, within a reasonable time, out of any funds appropriated by the General Assembly for such purpose, any moneys received by the Commission pursuant to the provisions of § 302 of the Social Security Act (42 U.S.C. § 502), which because of any action or contingency (i) are lost or (ii) are expended for purposes other than, or in amounts in excess of those found necessary by the Secretary of Labor of the United States for the proper administration of this title. The Commission is directed to report to the Governor in accordance with the provisions of subdivision 3 of § 2.2-1501 the amount necessary to make such replacement to the Unemployment Compensation Administration Fund. The Governor shall include in the budget reported to the General Assembly and in the budget bill submitted under § 2.2-1508 the amount necessary to be appropriated for such purposes.

Code 1950, § 60-98; 1956, c. 440; 1968, c. 738, § 60.1-115; 1986, c. 480.

§ 60.2-312. Disbursements by State Treasurer upon warrants of Comptroller.

All payments and disbursements from the Unemployment Compensation Administration Fund shall be made by the State Treasurer upon warrants of the Comptroller issued upon vouchers signed by the Commissioner or by such other person as the Commissioner may designate for that purpose.

Code 1950, § 60-100; 1968, c. 738, § 60.1-117; 1986, c. 480.

§ 60.2-313. Expenses incurred by Auditor of Public Accounts, Comptroller and State Treasurer.

All expenses incurred by the Auditor of Public Accounts in auditing the books, records and accounts of the Commission and in rendering other services to the Commission and all expense incurred by the Comptroller and the State Treasurer in performing the services required by this title, may be treated as administrative expenses of the Commission and accordingly paid by the Commission.

Code 1950, § 60-101; 1968, c. 738, § 60.1-118; 1986, c. 480.

Article 3. Special Unemployment Compensation Administration Fund.

§ 60.2-314. Fund continued; interest and penalties paid into fund.

The special fund in the state treasury known as the Special Unemployment Compensation Administration Fund is continued. All interest, penalties, fees, and costs regardless of when the same became payable, collected from employers and claimants under the provisions of this title, shall be paid into this fund.

Code 1950, § 60-102; 1968, c. 738, § 60.1-119; 1986, c. 480; 1990, c. 687.

§ 60.2-315. Proper expenditures from fund.

No part of the Special Unemployment Compensation Administration Fund shall be expended or available for expenditure in lieu of federal funds made available to the Commission for the administration of this title. Such fund shall be used by the Commission for the payment of costs and charges of administration, including the cost of capital projects of the Virginia Employment Commission, and discretionary expenditures not to exceed $375,000 per fiscal year authorized in the general appropriations act, which are found by the Commission not to be proper and valid charges payable out of any funds in the Unemployment Compensation Administration Fund received from any source. Such costs and charges shall include any interest due on Title XII advances to the trust fund for the payment of benefits. Refunds of interest, allowable under § 60.2-524, shall be made from this special fund, provided such interest was deposited in such fund.

Code 1950, § 60-103; 1968, c. 738, § 60.1-120; 1983, c. 16; 1985, c. 323; 1986, c. 480; 2007, c. 241.

§ 60.2-316. Disbursements by State Treasurer upon warrants of Comptroller.

All payments and disbursements from the Special Unemployment Compensation Administration Fund shall be made by the State Treasurer upon warrants of the Comptroller issued upon vouchers signed by the Commissioner, or by such other person as the Commissioner may designate for that purpose.

Code 1950, § 60-104; 1968, c. 738, § 60.1-121; 1986, c. 480.

§ 60.2-317. Moneys in fund continuously available to Commission.

The moneys in the Special Unemployment Compensation Administration Fund shall be continuously available to the Commission for expenditure in accordance with the provisions of this article.

Code 1950, § 60-105; 1968, c. 738, § 60.1-122; 1986, c. 480.

Article 4. Workforce Development Training Fund.

§ 60.2-318. Repealed.

Repealed by Acts 2004, c. 872.