Section 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.
    2. Custodian of funds. The state commissioner of taxation and  finance
  and  the state comptroller shall be the custodians 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.
    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.