Section 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.

    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.