N.Y. Labor Law § 550: Unemployment insurance fund

§ 550. Unemployment insurance fund. 1. Composition and investment. (a)

The unemployment insurance fund shall be continued. It shall consist of

all contributions, interest, penalties and monies from the re-employment

service fund pursuant to section five hundred eighty-one-b of this

article received and paid into the fund, and of moneys credited to this

state pursuant to section nine hundred three of the federal social

security act, of property and securities acquired by and through the use

of moneys belonging to the fund, and of interest earned thereon. All

money in the fund, immediately upon receipt, shall be deposited or

invested in the obligations of the "Unemployment Trust Fund" of the

United States government or its authorized agent, so long as said trust

fund exists, notwithstanding any other statutory provision to the

contrary. The commissioner shall requisition from the unemployment trust

fund necessary amounts from time to time.

(b) Notwithstanding any other provision of this article, any moneys

credited to the state pursuant to section nine hundred three of the

federal social security act for federal fiscal years two thousand, two

thousand one and two thousand two, shall be transferred into the

unemployment administration fund established pursuant to section five

hundred fifty-one of this title. These moneys are to be used only to pay

expenses incurred by the state for the administration of the

unemployment insurance law and are not to be used for the payment of

unemployment compensation or for the administration of state public

employment offices.

2. Custodian of funds. The state commissioner of taxation and finance

and the state comptroller shall be the custodians of the funds received

upon requisition by the industrial commissioner from the unemployment

trust fund and, subject to audit by the state comptroller, the

industrial commissioner shall direct the disbursement thereof. The state

commissioner of taxation and finance, notwithstanding any other

provision of law, may for the purpose of such disbursement authorize any

depository of the fund to make payments out of any moneys therein upon

drafts on the fund issued by the industrial commissioner and

countersigned by the state comptroller. The state commissioner of

taxation and finance may deposit any portion of such funds which he

deems not needed for immediate use in the manner and subject to all the

provisions of law respecting the deposit of other state funds by him.

Interest earned by such portion of such funds deposited by the state

commissioner of taxation and finance shall be collected by him and

placed to the credit of the fund.

3. Fund sole source of benefits. The fund shall be administered in

trust and shall be used solely to pay benefits, except that subject to

the limitations therein contained moneys credited to this fund pursuant

to section nine hundred three of the federal social security act may

upon an appropriation duly made by the legislature be used for the

administration of the unemployment insurance law and shall for such

purpose and to the extent required be transferred to the administration

fund established under this article. All payments shall be made upon

vouchers drawn on the fund by the commissioner in accordance with

procedures established by him. The fund shall be the sole and exclusive

source for the payment of benefits which shall be due and payable only

to the extent that contributions and other payments to the fund with

increments thereon, actually collected and credited to the fund and not

otherwise appropriated or allocated, are available therefor.

4. Non-liability of state. The state of New York undertakes the

administration of the fund without any liability on the part of the

state beyond the amount of moneys received through allotment from any

agency of the United States.