§ 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.