1.Electronic funds transfer system.
The State Controller and the Treasurer of State shall establish an electronic funds transfer system for the purpose of transferring
directly into payees' accounts held at accredited financial institutions the payment of any amount or obligation owed by the
State. Beginning with the payroll after the effective date of this section that is closest to January 1, 2008, the State
shall pay all state employees' wages and salaries through an electronic funds transfer system. Except as set forth in subsection
2, all wages and salaries of state employees must be transferred by means of electronic funds transfer directly into an employee's
account in an accredited financial institution designated by the employee, and each state employee shall complete a direct
deposit application on such forms as the State Controller shall prescribe. The direct deposit application authorizes the
State Controller to initiate credit and debit entries and to correct erroneous credit entries to the employee's designated
account. The State Controller shall develop policies and procedures to allow the employee to change the designated account
at any time.
[
2007, c. 539, Pt. E, §1 (NEW)
.]
2.Waiver provisions.
The State may waive the mandatory direct deposit of the wages or salary for a state employee in subsection 1 if the State
Controller determines that:
A. The employee has a physical or mental disability that would impede the employee's ability to gain access to electronically
deposited funds; [2007, c. 539, Pt. E, §1 (NEW).]
B. The employee has religious convictions that preclude the use of direct deposits; or [2007, c. 539, Pt. E, §1 (NEW).]
C. The facts of the particular case warrant a waiver of the mandatory direct deposit of the employee's wages or salary. [2007, c. 539, Pt. E, §1 (NEW).]
[
2007, c. 539, Pt. E, §1 (NEW)
.]
3.Transfers to multiple payees.
A single transfer may contain payments to multiple payees.
[
2007, c. 539, Pt. E, §1 (NEW)
.]
4.System administration.
The State Controller and the Treasurer of State shall establish the standards and procedures for administering the electronic
funds transfer system.
[
2007, c. 539, Pt. E, §1 (NEW)
.]
5.Vendor payments.
The State Controller and the Treasurer of State may adopt rules to require vendors with a significant volume of payments to
receive payment by direct deposit. The rules must include the requirement that the State Controller provide to vendors that
receive electronic payments information similar to the check advice information given to vendors that receive checks. Rules
adopted pursuant to this subsection are routine technical rules as defined in chapter 375, subchapter 2-A.
[
2011, c. 477, Pt. G, §1 (NEW)
.]
SECTION HISTORY
2007, c. 539, Pt. E, §1 (NEW).
2011, c. 477, Pt. G, §1 (AMD).
Data for this page extracted on 10/16/2012 08:18:44.