Section 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.