N.Y. Labor Law § 552-a: Re-employment service fund

§ 552-a. Re-employment service fund. 1. There is hereby established in

the joint custody of the commissioner of taxation and finance and the

state comptroller a fund to be known as the "re-employment service

fund".

2. The re-employment service fund shall consist of all moneys

collected and received by the commissioner from employers pursuant to

section five hundred eighty-one-b of this article as well as interest

and penalties associated with such collection. All moneys collected as

contributions and interest relating to re-employment services under this

article shall be deposited in a bank, trust company or industrial bank

designated by the state comptroller. Moneys so deposited shall be

credited immediately to the account of the re-employment service fund

and shall be used for the purposes set forth in section five hundred

ninety-eight of this article. 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,

provided, however, that it shall be subject to the crediting provisions

of subdivision five of this section.

3. Moneys in the re-employment service fund shall be kept separate

from and shall not be commingled with any other moneys in the custody of

the commissioner of taxation and finance and the state comptroller. All

deposits of such moneys shall, if required by the state comptroller, be

secured by obligations of the United States or of this state of market

value equal at all times to the amount of the deposit and all banks and

trust companies are authorized to give such securities for such

deposits.

4. Moneys of the fund shall be used exclusively for the purpose of

providing additional automated systems and staff to provide enhanced

re-employment services and claimant management activities for

unemployment compensation claimants and for the payment of associated

administrative costs relating to unemployment compensation claimants.

The moneys shall be paid out of the fund on the audit and warrant of the

state comptroller on vouchers certified or approved by such commissioner

or his or her duly designated officer.

5. The re-employment service fund shall not be used in whole or in

part for any purpose or in any manner which (a) 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 (b) would cause the appropriate

agency of the United States government to withhold any part of an

administrative grant which would otherwise be made.

6. On or before January thirty-first, two thousand one, the

commissioner shall submit a report to the chairman of the assembly ways

and means committee, the ranking minority member of the assembly ways

and means committee, the chairman of the senate finance committee, the

ranking minority member of the senate finance committee, and the

director of the division of the budget regarding the re-employment

services fund established pursuant to this section. The report shall

contain the following information:

(a) the amount of money deposited in the re-employment services fund

for each year of its existence;

(b) the number of department employees funded through the

re-employment services fund;

(c) the results of the activities engaged in by department employees

funded through the re-employment services fund.