BILL NUMBER: SB 37AMENDED BILL TEXT AMENDED IN SENATE APRIL 1, 2009 INTRODUCED BY Senator Strickland DECEMBER 18, 2008 An act to amend Section 12480 19849.7 of the Government Code, relating to public employees. LEGISLATIVE COUNSEL'S DIGEST SB 37, as amended, Strickland. Public employees: compensation. State employees: statement of deductions. Existing law requires each state agency, at the time of each payment of salary or wages, to furnish each employee, at his or her discretion, an itemized statement in writing or electronically showing all deductions made from his or her salary or wages as required by specified provisions of law. This bill would require that the itemized statement described above be provided to each employee electronically, unless the employee has requested, in writing, to receive a paper version of the statement. Existing law permits officers and employees of the state to authorize the direct deposit by electronic fund transfer of their salary or wages, after any withholding required by law and authorized deductions, into an account at the financial institution of their choice under a program for direct deposit by electronic transfer established pursuant to the State of California Sure Pay Plan. This bill would require officers and employees of the state to authorize their net salary directly deposited by electronic fund transfer, except that they may decline to authorize the direct deposit by following procedures established by their employing agency. The bill would also require the employing agency to provide a secure, electronic method for officers and employees enrolled in direct deposit to receive a statement of earnings and deductions. The bill would provide that no paper copies of those statements shall be distributed. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 19849.7 of the Government Code is amended to read: 19849.7. (a) Each state agency shall at the time of each payment of salary or wages, whether by direct deposit by electronic fund transfer pursuant to Sections 12480 and 12481 or otherwise, furnish each employee , at his or her discretion, an itemized statement in writing or electronically showing all deductions made from his or her salary or wages as required by Section 226 of the Labor Code. (b) The itemized statement described in subdivision (a) shall be provided to each employee electronically, unless the employee has requested, in writing, to receive a paper version of the statement. (b) (c) The provision of an electronic statement of itemized deductions pursuant to this section shall be contingent upon the funding and implementation of the Controller's "21st Century Project," and provided only to the extent that the project enables the Controller to provide this information electronically. SECTION 1. Section 12480 of the Government Code is amended to read: 12480. (a) (1) Officers and employees of the state shall authorize the direct deposit by electronic fund transfer of their salary or wages, after any withholding required by law and authorized deductions, into an account at the financial institution of their choice under a program for direct deposit by electronic transfer established pursuant to Section 12481. The direct deposit shall discharge the obligation of the Controller with respect to the drawing and issuance of warrants for the salaries or wages of the state officers and employees authorizing the direct deposit. (2) The employing agency shall provide a secure, electronic method for officers and employees enrolled in direct deposit to receive a statement of earnings and deductions. No paper copies of those statements shall be distributed. (b) Notwithstanding subdivision (a), officers and employees of the state may decline to authorize the direct deposit by following procedures established by their employing agency.