S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8627
 
                           I N  A S S E M B L Y
 
                             January 10, 2022
                                ___________
 
 Introduced by M. of A. LAWLER -- read once and referred to the Committee
   on Labor
 
 AN  ACT to amend the labor law and the state finance law, in relation to
   employer contributions to the unemployment insurance fund  and  estab-
   lishing the unemployment insurance solvency reserve fund
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 581-a of the labor law is amended by adding  a  new
 subdivision 3-a to read as follows:
   3-A. NOTWITHSTANDING THE PROVISIONS OF SECTION FIVE HUNDRED EIGHTY-ONE
 OF THIS TITLE TO THE CONTRARY AND NOTWITHSTANDING THE ACTUAL SIZE OF THE
 FUND INDEX, THE RATE OF CONTRIBUTION FOR A QUALIFIED EMPLOYER IN THE TWO
 THOUSAND  TWENTY-TWO  FISCAL  YEAR  SHALL BE THE PERCENTAGE SHOWN IN THE
 COLUMN HEADED BY THE SIZE OF THE FUND INDEX AT FIVE PERCENT OR MORE  AND
 ON THE SAME LINE WITH HIS OR HER NEGATIVE OR POSITIVE EMPLOYER'S ACCOUNT
 PERCENTAGE  PURSUANT  TO SUBDIVISION TWO OF SECTION FIVE HUNDRED EIGHTY-
 ONE OF THIS TITLE, UNLESS USING THE ACTUAL SIZE OF THE FUND INDEX  WOULD
 RESULT  IN  A  LOWER RATE OF CONTRIBUTION FOR AN EMPLOYER, IN WHICH CASE
 SUCH EMPLOYER SHALL BE LIABLE FOR SUCH LOWER RATE OF CONTRIBUTION.
   § 2. The state finance law is amended by adding a new section 92-kk to
 read as follows:
   § 92-KK. UNEMPLOYMENT INSURANCE SOLVENCY RESERVE FUND.   1.  THERE  IS
 HEREBY  ESTABLISHED  IN  THE  STATE  TREASURY  A FUND TO BE KNOWN AS THE
 "UNEMPLOYMENT INSURANCE SOLVENCY RESERVE FUND". SUCH FUND SHALL  CONSIST
 OF  MONEYS  DEPOSITED THERE AND MONEYS SHALL BE WITHDRAWN FROM SUCH FUND
 ONLY FOR THE PURPOSES AS PROVIDED THEREIN.
   2. SUCH FUND MAY CONSIST OF  BUT  NOT  BE  LIMITED  TO,  DISCRETIONARY
 FEDERAL  FUNDS  DESIGNATED AS RECOVERY FUNDS DURING A PERIOD OF ECONOMIC
 DOWNTURN AND NON-RECURRING STATE FUNDS DERIVED FROM SETTLEMENT  PROCEEDS
 AND OTHER SOURCES.
   3.  SUCH  FUND MAY ALSO CONSIST OF AMOUNTS APPROPRIATED OR TRANSFERRED
 PURSUANT TO STATUTE.
   4. THE AMOUNTS AVAILABLE IN SUCH RESERVE MAY BE USED IF THE  FOLLOWING
 CONDITIONS ARE MET:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD13361-01-1
 A. 8627                             2
 
   (A) THE UNEMPLOYMENT INSURANCE FUND HAS BORROWED MONEY FROM THE FEDER-
 AL GOVERNMENT FOR THE PURPOSE OF PAYING BENEFITS TO CLAIMANTS;
   (B)   THE  FEDERAL  GOVERNMENT  HAS  IMPOSED  AN  INTEREST  ASSESSMENT
 SURCHARGE ON THE STATE OF NEW YORK FOR LOANS TO THE UNEMPLOYMENT  INSUR-
 ANCE FUND; AND
   (C) THE FEDERAL GOVERNMENT IS RECOVERING THE PRINCIPAL ON MONEY LOANED
 TO  THE UNEMPLOYMENT INSURANCE FUND FOR THE PAYMENT OF BENEFIT TO CLAIM-
 ANTS.
   § 3. This act shall take effect immediately.