82R4307 CJC-D

By: Guillen H.B. No. 1152

A BILL TO BE ENTITLED

AN ACT

relating to payments by the comptroller of public accounts to employees, vendors, annuitants, and other recipients of state-issued payments through the electronic funds transfer system or by electronic pay card.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 403.016, Government Code, is amended to read as follows:

Sec. 403.016. ELECTRONIC FUNDS TRANSFER AND ELECTRONIC PAY CARDS. (a) The comptroller shall establish and operate an electronic funds transfer system in accordance with this section. The comptroller may use the services of financial institutions, automated clearinghouses, and the federal government to establish and operate the electronic funds transfer system. The comptroller also shall establish and operate an efficient and effective system of making payments by electronic pay card.

(b) The comptroller shall use either the electronic funds transfer system or an electronic pay card to pay an employee's net state salary and travel expense reimbursements [unless:

[(1) the employee does not hold a classified position under the state's position classification plan and the employee's gross state salary is less than the gross state salary for a position classified to group 8, step 1, of the state position classification plan; or

[(2) the employee holds a classified position under the state's position classification plan that is classified below group 8].

(c) The comptroller shall use either the electronic funds transfer system or an electronic pay card to make:

(1) payments [of more than $100] to annuitants by the Employees Retirement System of Texas or the Teacher Retirement System of Texas under either system's administrative jurisdiction and payments to annuitants of any other retirement system who are paid from funds in the state treasury;

(2) recurring payments to municipalities, counties, political subdivisions, special districts, and other governmental entities of this state; and

(3) payments to vendors who choose to receive payment through the electronic funds transfer system or an electronic pay card rather than by warrant.

(d) If the comptroller is not required by this section to use either the electronic funds transfer system or an electronic pay card to pay a person, the comptroller may use the electronic funds transfer system or an electronic pay card to pay the person on the person's request.

(e)(1) [(f)(1)] Except as provided by Subdivisions (2) and (4) and subject to any limitation in rules adopted by the comptroller, an automated clearinghouse, or the federal government, the comptroller may use the electronic funds transfer system to deposit payments only to one or more accounts of a payee at one or more financial institutions, including credit unions.

(2) The comptroller may also use the electronic funds transfer system to deposit a portion of an employee's gross pay into the employee's account at a credit union as prescribed by Subchapter G, Chapter 659.

(3) A single electronic funds transfer may contain payments to multiple payees. Individual transfers or warrants are not required for each payee.

(4) The comptroller may also use the electronic funds transfer system to deposit a portion of an employee's gross pay into an account of an eligible state employee organization for a membership as prescribed by Subchapter G, Chapter 659.

(f) [(g)] When a law requires the comptroller to make a payment by warrant, the comptroller may instead make the payment through the electronic funds transfer system or by electronic pay card. The comptroller's use of the electronic funds transfer system, an electronic pay card, or any other payment means does not create a right that would not have been created if a warrant had been issued.

(g) [(h) Notwithstanding any requirement in this section to make a payment through the electronic funds transfer system, the comptroller shall issue a warrant to pay a person if:

[(1) the person properly notifies the comptroller that:

[(A) receiving the payment by electronic funds transfer would be impractical to the person;

[(B) receiving the payment by electronic funds transfer would be more costly to the person than receiving the payment by warrant;

[(C) the person is unable to establish a qualifying account at a financial institution to receive electronic funds transfers; or

[(D) the person chooses to receive the payment by warrant; or

[(2) the state agency on whose behalf the comptroller makes the payment properly notifies the comptroller that:

[(A) making the payment by electronic funds transfer would be impractical to the agency; or

[(B) making the payment by electronic funds transfer would be more costly to the agency than making the payment by warrant.

[(i)] Notwithstanding any requirement in this section to make a payment through the electronic funds transfer system or by electronic pay card, the comptroller may make a payment by warrant if the comptroller determines after conducting a cost analysis that[:

[(1) using the electronic funds transfer system would be impractical to the state; or

[(2)] the cost to the state of using the electronic funds transfer or electronic pay card system would exceed the cost of issuing a warrant. The comptroller shall submit to the Legislative Budget Board the cost analysis supporting each determination made by the comptroller under this subsection.

(h) [(j)] The comptroller shall adopt rules to administer this section, including rules relating to allowing recipients of state payments to choose at appropriate times between receiving payment through the electronic funds transfer system, by electronic pay card, or by warrant [the notifications that may be provided to the comptroller under Subsection (h)].

SECTION 2. Subchapter B, Chapter 403, Government Code, is amended by adding Section 403.0161 to read as follows:

Sec. 403.0161. CONTRACTS FOR ELECTRONIC PAY CARD SERVICES. The comptroller shall contract with one or more vendors for the provision of electronic pay card services. A contract under this section must be by competitive bid. The comptroller shall specify the qualifications for bidders, which must include requirements that the entity that issues the pay card must:

(1) be federally insured or possess sufficient financial resources to ensure protection of payees; and

(2) demonstrate adequate 24-hour customer service to ensure that all payees are able to reasonably access their funds worldwide at any time.

SECTION 3. Section 659.084, Government Code, is amended to read as follows:

Sec. 659.084. ELECTRONIC FUNDS TRANSFER. Salaries for state officers and employees paid once a month shall be paid through electronic funds transfer under Section 403.016 unless paid on an electronic pay card [warrant] as permitted under that section.

SECTION 4. This Act takes effect January 1, 2012.