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Title 4 Unemployment Funds

Section 550
Unemployment insurance fund
Section 551
Unemployment administration fund
Section 552
Special Fund
Section 552-a
Re-employment service fund
Section 552-b
Unemployment insurance control fund
Section 553
Disposition of moneys collected

Sec. 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.

Subd. 1 as amended by L. 2000, Ch. 5, effective February 15, 2000.

2. Custodian of funds. The state commissioner of taxation and finance shall be the custodian 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.

Subd. 2 as amended by L. 1971, Ch. 460 effective June 17, 1971

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.

§550 as amended by L. 1956, Ch. 888 effective April 20, 1956. Subd. 5 repealed by L. 1971, Ch. 2 effective January 12, 1971.

 

Sec. 551. Unemployment administration fund.

1. Purpose. The unemployment administration fund shall be continued. It shall consist of all moneys received by the state or the commissioner for the administration of this article. Such fund shall be handled by the commissioner of taxation and finance and state comptroller as other state moneys are handled; but it shall be expended solely for the administration of this article; and its balance shall not lapse at any time but shall remain continuously available to the commissioner for expenditures consistent herewith. All federal moneys allotted or apportioned to the state by any agency of the United States for the administration of this article shall be paid into the unemployment administration fund, except that moneys received from the federal railroad retirement board as compensation for services or facilities supplied to such agency shall be paid into the unemployment administration fund or the special "employment service account" thereof, in the same proportion in which expenditures are made for such services or facilities from such fund and account. A special "employment service account" of funds received by the state in accordance with the provisions of the Wagner-Peyser act shall be maintained as a part of such fund. All moneys allotted or apportioned to the state by any agency of the United States, for the administration of this article, paid into the unemployment administration fund, shall be expended solely for the purpose and in the amounts found necessary by such agency for the proper and efficient administration of this article.

2. Replacements from the special fund or general state funds. If any moneys received after June thirtieth, nineteen hundred forty-one, from the United States pursuant to the provisions of the federal social security act, or any unencumbered balances in the unemployment administration fund as of that date, or any moneys granted to this state pursuant to the provisions of the Wagner-Peyser act, or any moneys made available by this state or its political subdivisions and matched by such moneys granted to this state pursuant to the provisions of the Wagner-Peyser act, are found by the appropriate agency of the United States because of any action or contingency, to have been lost or expended for the purposes other than, or in amounts in excess of, those found necessary by such agency for the proper administration of this article, it is the policy of this state that such moneys shall be replaced by moneys to be transferred from the special fund or appropriated for such purpose from the general funds of this state to the unemployment administration fund for expenditure as provided hereunder, but, for the purposes of this subdivision, such moneys shall not include any amount determined by such agency to have been expended in accordance with rules, standards, instructions, limitations, regulations, or other action by such agency, applicable to such amount and prescribed by it prior to the expenditure thereof. Upon receipt of notice of such finding by such agency, the commissioner shall, with the approval of the director of the budget, direct the transfer of the necessary moneys from the special fund into the unemployment administration fund. If the moneys available in the special fund are not sufficient for this purpose, the commissioner shall promptly report the additional amount required for such replacement to the governor and the governor shall, at the earliest opportunity, submit to the legislature a request for the appropriation of such amount.

The provisions of this subdivision shall not be construed to require the replacement of any amount disbursed for the payment of expenses in relation to the operation of public employment offices by the federal government provided the liability resulting in such expenditures has been incurred in accordance with the request or with the approval of a duly authorized agency or official of the federal government.

Subd. 2 as amendedbyL.1952, Ch. 634 effective July 1, 1952.

3. Payment of administrative expenses. The total amount of expenses incurred by the commissioner in connection with the administration of this article and such proportion of the total expenses of maintaining the public employment offices as established under this chapter and for the purposes of this article, as shall be determined to be necessary and required by the provisions of this article and so certified by the commissioner, shall, upon audit by the comptroller, be disbursed from the unemployment administration fund. Annually, as soon as practicable after April first, the commissioner and the comptroller shall ascertain the total amount of such expenses incurred during the preceding fiscal year. An itemized statement of the total expenses so ascertained shall be open to public inspection in the office of the commissioner after notice in an official publication of the department. All disbursements from such fund shall be made by the commissioner of taxation and finance on the warrant of the comptroller.

 

Sec. 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.

Subd. I as amended by L. 1958, Ch. 889 effective April 20, 1958.

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

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;

for which no appropriations or inadequate appropriations from federal funds are made; or

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;

Replace moneys in the unemployment administration fund pursuant to the provisions of subdivision two of section five hundred fifty-one of this article;

Make refunds of interest and penalties erroneously collected;

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.

Pay interest on contributions, interest and penalties erroneously collected.

Subd. 2 as amended by L. 1958, Ch. 889 effective April 20, 1958. Former paragraph (d) repealed and former paragraph (e) renumbered as paragraph (d) by L. 1971, Ch. 2 effective January 12, 1971. Further amended by adding paragraph (e) by L. 1985, Ch. 595 effective January 1,1986.

3. Notwithstanding any provision of subdivision two of this section

The special fund shall not be used in whole or in part for any purpose or in any manner which (I) 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

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.

§552 as added by L. 1952, Ch. 634, effective July I, 1952.

Subd. 4 as amended by L. 1954, Ch. 171 effective March 23, 1954.

 

Sec. 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:

the amount of money deposited in the re-employment services fund for each year of its existence;

the number of department employees funded through the re-employment services fund;

the results of the activities engaged in by department employees funded through the re-employment services fund.

§552-a as added by L. 1998, Ch. 590, effective January I, 1999.

 

Sec. 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.

552-b as added by L. 2000, Ch. 5, effective January 1, 2002.

 

Sec. 553. Disposition of moneys collected.

1. Depository. All moneys collected as contributions, interest and penalties under this article shall be deposited in a bank, trust company or industrial bank designated by the state comptroller. All moneys so deposited shall be credited immediately to the account of the unemployment insurance fund, except as provided in subdivision two of this section.

2. Interest and penalties. The commissioner shall certify periodically to the depository the amount of interest and penalties which were imposed and collected under title six of this article and the department’s share of the penalties imposed and collected pursuant to paragraph one of subsection (v) of section six hundred eighty-five of the tax law and deposited pursuant to subdivision one of this section. A sum equal to the total amount of interest and penalties certified by the commissioner, less the penalties collected pursuant to paragraph (b) of subdivision two of section five hundred eighty-one of this article and the department’s share of the penalties collected pursuant to paragraph one of subsection (v) of section six hundred eighty-five of the tax law shall thereupon be credited to the special fund established pursuant to section five hundred fifty-two of this article. The penalties collected pursuant to paragraph (b) of subdivision two of section five hundred eighty-one of this article and the department’s share of the penalties collected pursuant to paragraph one of subsection (v) of section six hundred eighty-five of the tax law shall thereupon be credited to the unemployment insurance control fund established pursuant to section five hundred fifty-two-b of this article.

Subd. 2 as amended by L. 2000, Ch. 5, effective January 1, 2002.

§553 as added by L. 1952, Ch. 634 effective July 1, 1952.

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