Bill Text: TX SB557 | 2019-2020 | 86th Legislature | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to use of the electronic funds transfer system operated by the comptroller.

Sponsorship: Slight Partisan Bill (Democrat 2-1)

Status: (Passed) 2019-06-02 - Effective immediately [SB557 Detail]

Download: Texas-2019-SB557-Comm_Sub.html

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By: Kolkhorst S.B. No. 557
(In the Senate - Filed January 31, 2019; February 21, 2019,
read first time and referred to Committee on State Affairs;
March 13, 2019, reported favorably by the following vote: Yeas 9,
Nays 0; March 13, 2019, sent to printer.)
Click here to see the committee vote

A BILL TO BE ENTITLED
AN ACT
relating to use of the electronic funds transfer system operated by
the comptroller.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 403.016, Government Code, is amended by
amending Subsections (b), (c), and (f) and adding Subsections (f-1)
and (f-2) to read as follows:
(b) The comptroller shall use the electronic funds transfer
system 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 the electronic funds transfer
system to make:
(1) payments of more than $100 to annuitants by the
Employees Retirement System of Texas, [or] the Teacher Retirement
System of Texas, or the Texas Emergency Services Retirement System
under each [either] system's administrative jurisdiction;
(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 rather than by
warrant.
(f) [(1)] Except as provided by Subsection (f-1)
[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.
(f-1) [(2)] The comptroller may also use the electronic
funds transfer system to deposit the amount [a portion] of an
employee's payroll deduction made as authorized by law [gross pay
into the employee's account at a credit union as prescribed by
Subchapter G, Chapter 659].
(f-2) [(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.]
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2019.
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