New Jersey § 43:21-9

§ 43:21-9.

(a) Establishment and control. There is hereby established as a special fund, separate and apart from all public

moneys or funds of this State, an unemployment compensation fund, which shall be administered

by the Department of Labor exclusively for the purpose of this chapter ( R.S. 43:21-1 et seq. ). This fund shall consist of: (1) all contributions and payments in lieu of contributions

collected under this chapter ( R.S. 43:21-1 et seq. ); (2) interest earned upon any moneys in the fund; (3) any property or securities

acquired through the use of moneys belonging to the fund; (4) all earnings on such

property or securities; (5) all moneys credited to this State's account in the unemployment

trust fund pursuant to section 903 of the Social Security Act ( 42 U.S.C. s.1103 ), as amended; and (6) all moneys received for the fund from any other source. All moneys in this fund shall be mingled and undivided. (b) Accounts and deposits. The Treasurer of the State of New Jersey shall be ex officio the treasurer and custodian

of the fund and shall administer such fund in accordance with the directions of the

department and shall issue his warrants upon it in accordance with such regulations

as the department shall prescribe. He shall maintain within the fund three separate accounts: (1) a clearing account,

(2) an unemployment trust fund account, and (3) a benefit account. All moneys payable to the fund, upon receipt thereof by the department, shall be

forwarded to the treasurer, who shall immediately deposit them in the clearing account. Refunds payable pursuant to subsection (f) of section 43:21-14 of this Title may be paid from the clearing account upon warrants issued by the treasurer

under the direction of the controller. After clearance thereof, all other moneys in the clearing account shall be immediately

deposited with the Secretary of the Treasury of the United States of America to the

credit of the account of this State in the unemployment trust fund, established and

maintained pursuant to section 904 of the Social Security Act ( 42 U.S.C. s.1104 ), as amended, any provisions of law in this State relating to the deposit, administration,

release or disbursement of moneys in the possession or custody of this State to the

contrary notwithstanding. The benefit account shall consist of all moneys requisitioned from this State's

account in the unemployment trust fund. Moneys in the clearing and benefit accounts may be deposited by the treasurer, under

the direction of the controller, in any bank or public depository in which general

funds of the State may be deposited, but no public deposit insurance charge or premium

shall be paid out of the fund. The treasurer shall give a separate bond conditioned upon the faithful performance

of his duties as custodian of the fund in an amount fixed by the controller and in

a form prescribed by law or approved by the Attorney General. Premiums for said bond shall be paid from the administration fund. (c) Withdrawals from the unemployment trust fund. (1) Benefit payments. Moneys requisitioned from this State's account in the unemployment trust fund shall

be used solely for the payment of benefits and in accordance with regulations prescribed

by the division, except that money credited to this State's account pursuant to section

903 of the Social Security Act ( 42 U.S.C. s.1103 ), as amended, may be used for the payment of expenses for the administration of this

chapter ( R.S. 43:21-1 et seq. ), as provided in paragraph (2) of this subsection. The controller shall from time to time requisition from the unemployment trust fund

such amounts, not exceeding the amounts standing to its account therein, as it deems

necessary for the payment of benefits for a reasonable future period. Upon receipt thereof the treasurer shall deposit such moneys in the benefit account,

and the payment of benefits shall be made solely from such benefit account. Expenditures of such moneys in the benefit account and refunds from the clearing

account shall not be subject to any provisions of law requiring specific appropriations

of other formal release by State officers of money in their custody. All warrants for the payment of benefits shall be issued by and bear only the signature

of the Commissioner of Labor or his duly authorized agent for that purpose. All warrants for the payment of refunds shall be issued by the treasurer and bear

the signature of the treasurer and the countersignature of the commissioner or his

duly authorized agent for that purpose. Any balance of moneys requisitioned from the unemployment trust fund which remains

unclaimed or unpaid in the benefit account after the expiration of the period for

which such sums were requisitioned shall either be deducted from estimates for, and

may be utilized for the payment of, benefits during succeeding periods, or, in the

discretion of the department, shall be deposited with the Secretary of the Treasury

of the United States of America, to the credit to this State's account in the unemployment

trust fund, as provided in subsection (b) of this section. (2) Administrative use. Moneys credited to the account of this State by the Secretary of the Treasury of

the United States in the unemployment trust fund pursuant to section 903 of the Social

Security Act ( 42 U.S.C. s.1103 ), as amended, may be requisitioned and used for the payment of expenses for the administration

of the Unemployment Compensation Law ( R.S. 43:21-1 et seq. ), pursuant to a specific appropriation by the Legislature, provided that the expenses

are incurred and the moneys are requisitioned after the enactment of an appropriation

law which: (A) specifies the purposes for which such moneys are appropriated and the amounts

appropriated therefor; (B) limits the period within which such moneys may be obligated to a period ending

not more than two years after the date of the enactment of the appropriation law;

and (C) limits the moneys which may be obligated during a 12-month period beginning on

July 1 and ending on the next June 30 to a sum which does not exceed the amount by

which the aggregate of the moneys credited to the account of this State pursuant to

section 903 of the Social Security Act ( 42 U.S.C. s.1103 ), as amended, during the same 12-month period and the 34 preceding 12-month periods,

exceeds the aggregate of moneys obligated for the payment of expenses incurred for

the administration of this chapter ( R.S. 43:21-1 et seq. ) and the moneys paid out for benefits, which is charged against the moneys credited

to the account of this State during such 35 12-month periods. Moneys credited to this State's account in the unemployment trust fund under section

903 of the Social Security Act ( 42 U.S.C. s.1103 ), as amended, which are obligated for the payment of expenses for the administration

of this chapter ( R.S. 43:21-1 et seq. ) or paid out for benefits, shall be charged against equivalent amounts which were

first credited and which are not already so charged; except that no moneys obligated

for the payment of expenses for the administration of this chapter ( R.S. 43:21-1 et seq. ) during a 12-month period specified herein may be charged against any amount credited

during such a 12-month period earlier than the thirty-fourth preceding such period. Money appropriated as provided herein for the payment of expenses of administration

shall be requisitioned as needed for the payment of obligations incurred under such

appropriation and upon requisition shall be deposited in the unemployment compensation

administration fund from which such payments shall be made. Money so deposited shall, until expended, remain a part of the unemployment compensation

fund. If such money will not be expended, it shall be returned promptly to the Secretary

of the Treasury of the United States for credit to this State's account in the unemployment

trust fund. The controller shall maintain a separate record of the credits, appropriation, obligation

and expenditure of the money credited to the account of this State in the unemployment

trust fund pursuant to section 903 of the Social Security Act ( 42 U.S.C. s.1103 ), as amended. (d) Management of funds upon discontinuance of unemployment trust fund. The provisions of subsections (a), (b) and (c) to the extent that they relate to

the unemployment trust fund shall be operative only so long as such unemployment trust

fund continues to exist and so long as the Secretary of the Treasury of the United

States of America continues to maintain for this State a separate book account of

all funds deposited therein by this State for benefit purposes, together with this

State's proportionate share of the earnings of such unemployment trust fund, from

which no other state is permitted to make withdrawals. If and when such unemployment trust fund ceases to exist, or such separate book

account is no longer maintained, all moneys, properties, or securities therein belonging

to the unemployment compensation fund of this State shall be transferred to the treasurer

of the unemployment compensation fund, who shall hold, invest, transfer, sell, deposit

and release such moneys, properties or securities in a manner approved by the department,

in accordance with the provisions of this chapter; provided that such moneys shall

be invested in the following readily marketable classes of securities: bonds or other

interest-bearing obligations of the United States of America and of the State of New

Jersey; and provided, further, that such investment shall at all times be so made

that all the assets of the fund shall always be readily convertible into cash when

needed for the payment of benefits. The treasurer shall dispose of securities or other properties belonging to the unemployment

compensation fund only under the direction of the department.