N.Y. Labor Law § 552-b: Unemployment insurance control fund

§ 552-b. Unemployment insurance control 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

"unemployment insurance control fund".

2. The unemployment insurance control fund shall consist of all

penalties imposed and collected pursuant to paragraph (b) of subdivision

two of section five hundred eighty-one of this article, the department's

share of all penalties imposed and collected pursuant to paragraph one

of subsection (v) of section six hundred eighty-five of the tax law, and

all other moneys credited or transferred thereto from any other fund or

sources pursuant to law.

3. Moneys in the unemployment insurance control 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 unemployment insurance control fund shall be used for

the location and prevention of fraud and abuse, collection and

enforcement activities, benefit payment control activities and other

quality control activities related to the unemployment insurance

program. The moneys shall be paid out of the unemployment insurance

control fund on the audit and warrant of the state comptroller on

vouchers certified or approved by the commissioner or his or her duly

designated officer. Any balance in such fund shall not lapse at any time

but shall remain continuously available for such purposes.

5. The unemployment insurance control 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.