Illinois 2025-2026 Regular Session

Illinois Senate Bill SB1387 Compare Versions

Only one version of the bill is available at this time.

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1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1387 Introduced 1/29/2025, by Sen. Mike Simmons SYNOPSIS AS INTRODUCED: 15 ILCS 405/9.03 from Ch. 15, par. 209.03 Amends the State Comptroller Act. Provides that all State payments that are recurring payments to a vendor shall be made through direct deposit. Provides that it is the responsibility of the paying State agency to ensure compliance with the mandate. Defines "recurring payment". Effective immediately. LRB104 10470 SPS 20545 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1387 Introduced 1/29/2025, by Sen. Mike Simmons SYNOPSIS AS INTRODUCED: 15 ILCS 405/9.03 from Ch. 15, par. 209.03 15 ILCS 405/9.03 from Ch. 15, par. 209.03 Amends the State Comptroller Act. Provides that all State payments that are recurring payments to a vendor shall be made through direct deposit. Provides that it is the responsibility of the paying State agency to ensure compliance with the mandate. Defines "recurring payment". Effective immediately. LRB104 10470 SPS 20545 b LRB104 10470 SPS 20545 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1387 Introduced 1/29/2025, by Sen. Mike Simmons SYNOPSIS AS INTRODUCED:
3	3	15 ILCS 405/9.03 from Ch. 15, par. 209.03 15 ILCS 405/9.03 from Ch. 15, par. 209.03
4	4	15 ILCS 405/9.03 from Ch. 15, par. 209.03
5	5	Amends the State Comptroller Act. Provides that all State payments that are recurring payments to a vendor shall be made through direct deposit. Provides that it is the responsibility of the paying State agency to ensure compliance with the mandate. Defines "recurring payment". Effective immediately.
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11	11	1 AN ACT concerning State government.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 5. The State Comptroller Act is amended by
15	15	5 changing Section 9.03 as follows:
16	16	6 (15 ILCS 405/9.03) (from Ch. 15, par. 209.03)
17	17	7 Sec. 9.03. Direct deposit of State payments.
18	18	8 (a) The Comptroller, with the approval of the State
19	19	9 Treasurer, may provide by rule or regulation for the direct
20	20	10 deposit of any payment lawfully payable from the State
21	21	11 Treasury and in accordance with federal banking regulations
22	22	12 including but not limited to payments to (i) persons paid from
23	23	13 personal services, (ii) persons receiving benefit payments
24	24	14 from the Comptroller under the State pension systems, (iii)
25	25	15 individuals who receive assistance under Articles III, IV, and
26	26	16 VI of the Illinois Public Aid Code, (iv) providers of services
27	27	17 under the Mental Health and Developmental Disabilities
28	28	18 Administrative Act, (v) providers of community-based mental
29	29	19 health services, and (vi) providers of services under programs
30	30	20 administered by the State Board of Education, in the accounts
31	31	21 of those persons or entities maintained at a bank, savings and
32	32	22 loan association, or credit union, where authorized by the
33	33	23 payee. The Comptroller also may deposit public aid payments
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37	37	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1387 Introduced 1/29/2025, by Sen. Mike Simmons SYNOPSIS AS INTRODUCED:
38	38	15 ILCS 405/9.03 from Ch. 15, par. 209.03 15 ILCS 405/9.03 from Ch. 15, par. 209.03
39	39	15 ILCS 405/9.03 from Ch. 15, par. 209.03
40	40	Amends the State Comptroller Act. Provides that all State payments that are recurring payments to a vendor shall be made through direct deposit. Provides that it is the responsibility of the paying State agency to ensure compliance with the mandate. Defines "recurring payment". Effective immediately.
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43	43	A BILL FOR
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49	49	15 ILCS 405/9.03 from Ch. 15, par. 209.03
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68	68	1 for individuals who receive assistance under Articles III, IV,
69	69	2 VI, and X of the Illinois Public Aid Code directly into an
70	70	3 electronic benefits transfer account in a financial
71	71	4 institution approved by the State Treasurer as prescribed by
72	72	5 the Illinois Department of Human Services and in accordance
73	73	6 with the rules and regulations of that Department and the
74	74	7 rules and regulations adopted by the Comptroller and the State
75	75	8 Treasurer. The Comptroller, with the approval of the State
76	76	9 Treasurer, may provide by rule for the electronic direct
77	77	10 deposit of payments to public agencies and any other payee of
78	78	11 the State. The electronic direct deposits may be made to the
79	79	12 designated account in those financial institutions specified
80	80	13 in this Section for the direct deposit of payments. Within 6
81	81	14 months after the effective date of this amendatory Act of
82	82	15 1994, the Comptroller shall establish a pilot program for the
83	83	16 electronic direct deposit of payments to local school
84	84	17 districts, municipalities, and units of local government. The
85	85	18 payments may be made without the use of the voucher-warrant
86	86	19 system, provided that documentation of approval by the
87	87	20 Treasurer of each group of payments made by direct deposit
88	88	21 shall be retained by the Comptroller. The form and method of
89	89	22 the Treasurer's approval shall be established by the rules or
90	90	23 regulations adopted by the Comptroller under this Section.
91	91	24 (b) Except as provided in subsection (b-5), all State
92	92	25 payments for an employee's payroll or an employee's expense
93	93	26 reimbursement must be made through direct deposit. It is the
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104	104	1 responsibility of the paying State agency to ensure compliance
105	105	2 with this mandate. If a State agency pays an employee's
106	106	3 payroll or an employee's expense reimbursement without using
107	107	4 direct deposit, the Comptroller may charge that employee a
108	108	5 processing fee of $2.50 per paper warrant. The processing fee
109	109	6 may be withheld from the employee's payment or reimbursement.
110	110	7 The amount collected from the fee shall be deposited into the
111	111	8 Comptroller's Administrative Fund.
112	112	9 (b-5) If an employee wants his or her payments deposited
113	113	10 into a secure check account, the employee must submit a direct
114	114	11 deposit form to the paying State agency for his or her payroll
115	115	12 or to the Comptroller for his or her expense reimbursements.
116	116	13 Upon acceptance of the direct deposit form, the Comptroller
117	117	14 shall disburse those funds to the secure check account. For
118	118	15 the purposes of this Section, "secure check account" means an
119	119	16 account established with a financial institution for the
120	120	17 employee that allows the dispensing of the funds in the
121	121	18 account through a third party who dispenses to the employee a
122	122	19 paper check.
123	123	20 (c) All State payments to a vendor that exceed the
124	124	21 allowable limit of paper warrants in a fiscal year, by the same
125	125	22 agency, must be made through direct deposit. It is the
126	126	23 responsibility of the paying State agency to ensure compliance
127	127	24 with this mandate. If a State agency pays a vendor more times
128	128	25 than the allowable limit in a single fiscal year without using
129	129	26 direct deposit, the Comptroller may charge the vendor a
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140	140	1 processing fee of $2.50 per paper warrant. The processing fee
141	141	2 may be withheld from the vendor's payment. The amount
142	142	3 collected from the processing fee shall be deposited into the
143	143	4 Comptroller's Administrative Fund. The Office of the
144	144	5 Comptroller shall define "allowable limit" in the
145	145	6 Comptroller's Statewide Accounting Management System (SAMS)
146	146	7 manual, except that the allowable limit shall not be less than
147	147	8 30 paper warrants. The Office of the Comptroller shall also
148	148	9 provide reasonable notice to all State agencies of the
149	149	10 allowable limit of paper warrants.
150	150	11 (c-1) All State payments to an entity from a payroll or
151	151	12 retirement voluntary deduction must be made through direct
152	152	13 deposit. If an entity receives a payment from a payroll or
153	153	14 retirement voluntary deduction without using direct deposit,
154	154	15 the Comptroller may charge the entity a processing fee of
155	155	16 $2.50 per paper warrant. The processing fee may be withheld
156	156	17 from the entity's payment or billed to the entity at a later
157	157	18 date. The amount collected from the processing fee shall be
158	158	19 deposited into the Comptroller's Administrative Fund. The
159	159	20 Comptroller shall provide reasonable notice to all entities
160	160	21 impacted by this requirement. Any new entities that receive a
161	161	22 payroll or retirement voluntary deduction must sign up for
162	162	23 direct deposit during the application process.
163	163	24 (c-2) The detail information, such as names, identifiers,
164	164	25 and amounts, associated with a State payment to an entity from
165	165	26 a payroll or retirement voluntary deduction must be retrieved
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176	176	1 by the entity from the Comptroller's designated Internet
177	177	2 website or an electronic alternative approved by the
178	178	3 Comptroller. If the entity requires the Comptroller to mail
179	179	4 the detail information, the Comptroller may charge the entity
180	180	5 a processing fee up to $25.00 per mailing. Any processing fee
181	181	6 will be billed to the entity at a later date. The amount
182	182	7 collected from the processing fee shall be deposited into the
183	183	8 Comptroller's Administrative Fund. The Comptroller shall
184	184	9 provide reasonable notice to all entities impacted by this
185	185	10 requirement.
186	186	11 (c-3) All State payments that are recurring payments to a
187	187	12 vendor shall be made through direct deposit. It is the
188	188	13 responsibility of the paying State agency to ensure compliance
189	189	14 with this mandate. As used in this subsection, "recurring
190	190	15 payment" means any payment with a fixed deadline that occurs
191	191	16 more than once, including, but not limited to, utility
192	192	17 payments, payments for internet services, and payments for
193	193	18 construction services.
194	194	19 (d) State employees covered by provisions in collective
195	195	20 bargaining agreements that do not require direct deposit of
196	196	21 paychecks are exempt from this mandate. No later than 60 days
197	197	22 after the effective date of this amendatory Act of the 97th
198	198	23 General Assembly, all State agencies must provide to the
199	199	24 Office of the Comptroller a list of employees that are exempt
200	200	25 under this subsection (d) from the direct deposit mandate. In
201	201	26 addition, a State employee or vendor may file a hardship
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212	212	1 petition with the Office of the Comptroller requesting an
213	213	2 exemption from the direct deposit mandate under this Section.
214	214	3 A hardship petition shall be made available for download on
215	215	4 the Comptroller's official Internet website.
216	216	5 (e) Notwithstanding any provision of law to the contrary,
217	217	6 the direct deposit of State payments under this Section for an
218	218	7 employee's payroll, an employee's expense reimbursement, or a
219	219	8 State vendor's payment does not authorize the State to
220	220	9 automatically withdraw funds from those accounts.
221	221	10 (f) For the purposes of this Section, "vendor" means a
222	222	11 non-governmental entity with a taxpayer identification number
223	223	12 issued by the Social Security Administration or Internal
224	224	13 Revenue Service that receives payments through the
225	225	14 Comptroller's commercial system. The term does not include
226	226	15 State agencies.
227	227	16 (g) The requirements of this Section do not apply to the
228	228	17 legislative or judicial branches of State government.
229	229	18 (Source: P.A. 97-348, eff. 8-12-11; 97-993, eff. 9-16-12;
230	230	19 98-463, eff. 8-16-13; 98-1043, eff. 8-25-14.)
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