N.Y. Labor Law § 552: Special fund

§ 552. Special fund. 1. Source. There is hereby established the

special fund. It shall consist of all moneys credited thereto pursuant

to the provisions of sections five hundred thirty-nine and five hundred

fifty-three of this article, of property and securities acquired by and

through the use of moneys belonging to such fund, and of interest earned

upon moneys belonging to such fund and deposited or invested. The

commissioner of taxation and finance shall be the custodian of such fund

and the moneys therein shall be deposited by him in the same manner as

other state moneys. Moneys in such fund may be invested by the state

comptroller in accordance with the provisions of section ninety-eight of

the state finance law, and shall be used for the purposes specified

herein. Any balance in such fund shall not lapse at any time but shall

remain continuously available for such purposes.

2. Use of fund. The moneys in this fund may be used to

(a) Finance operations deemed necessary by the commissioner in the

administration of this article and approved by the director of the

budget, including expenditures pursuant to section five hundred

thirty-nine of this article;

(1) for which no appropriations or inadequate appropriations from

federal funds are made; or

(2) for which a grant is made from appropriated federal funds but not

yet received, provided the special fund is reimbursed upon receipt of

such federal grant;

(b) Replace moneys in the unemployment administration fund pursuant to

the provisions of subdivision two of section five hundred fifty-one of

this article;

(c) Make refunds of interest and penalties erroneously collected;

(d) Defray the cost of vocational and related training courses and

make payments to persons enrolled in such courses, as provided in

article twenty-three-A of this chapter, and such expenditures shall not

be subject to the conditions are set forth in paragraph (b) of

subdivision three of this section.

(e) Pay interest on contributions, interest and penalties erroneously

collected.

3. Notwithstanding any provision of subdivision two of this section

(a) The special fund shall not be used in whole or in part for any

purpose or in any manner which (1) would permit its substitution for, or

a corresponding reduction in, federal funds that would be available in

its absence to finance expenditures for the administration of this

article; or (2) would cause the appropriate agency of the United States

government to withhold any part of an administrative grant which would

otherwise be made; and

(b) No expenditure from such fund shall be made unless the

commissioner and the director of the budget find that no other funds are

available or can properly be used to finance such expenditure.

4. The commissioner of taxation and finance shall, upon the direction

of the industrial commissioner and with the approval of the director of

the budget, transfer from the special fund to the unemployment insurance

fund such moneys available in the special fund which are in excess of

reasonable needs for the purposes set forth in subdivision two of this

section. Such moneys shall thereupon be credited to the general account.