ยง 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.