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.