97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB5189

 

Introduced 2/8/2012, by Rep. Franco Coladipietro

 

SYNOPSIS AS INTRODUCED:
 
15 ILCS 405/9.03  from Ch. 15, par. 209.03
20 ILCS 1005/1005-200 new

    Amends the State Comptroller Act. Provides that, if an employee indicates in writing to the paying State agency that it is his or her desire to have his or her payroll or expense reimbursement in the form of a paper check, then the Comptroller shall disburse those amounts in that form. Amends the Department of Employment Security Law of the Civil Administrative Code of Illinois. Requires the Department to provide each claimant with written notice of benefit payment options, which must include: prepaid debit card, direct deposit, and paper check. Requires the Department to afford a claimant the opportunity to change his or her benefit payment option at any time.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Comptroller Act is amended by changing
5Section 9.03 as follows:
 
6    (15 ILCS 405/9.03)  (from Ch. 15, par. 209.03)
7    Sec. 9.03. Direct deposit of State payments.
8    (a) The Comptroller, with the approval of the State
9Treasurer, may provide by rule or regulation for the direct
10deposit of any payment lawfully payable from the State Treasury
11and in accordance with federal banking regulations including
12but not limited to payments to (i) persons paid from personal
13services, (ii) persons receiving benefit payments from the
14Comptroller under the State pension systems, (iii) individuals
15who receive assistance under Articles III, IV, and VI of the
16Illinois Public Aid Code, (iv) providers of services under the
17Mental Health and Developmental Disabilities Administrative
18Act, (v) providers of community-based mental health services,
19and (vi) providers of services under programs administered by
20the State Board of Education, in the accounts of those persons
21or entities maintained at a bank, savings and loan association,
22or credit union, where authorized by the payee. The Comptroller
23also may deposit public aid payments for individuals who

 

 

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1receive assistance under Articles III, IV, VI, and X of the
2Illinois Public Aid Code directly into an electronic benefits
3transfer account in a financial institution approved by the
4State Treasurer as prescribed by the Illinois Department of
5Human Services and in accordance with the rules and regulations
6of that Department and the rules and regulations adopted by the
7Comptroller and the State Treasurer. The Comptroller, with the
8approval of the State Treasurer, may provide by rule for the
9electronic direct deposit of payments to public agencies and
10any other payee of the State. The electronic direct deposits
11may be made to the designated account in those financial
12institutions specified in this Section for the direct deposit
13of payments. Within 6 months after the effective date of this
14amendatory Act of 1994, the Comptroller shall establish a pilot
15program for the electronic direct deposit of payments to local
16school districts, municipalities, and units of local
17government. The payments may be made without the use of the
18voucher-warrant system, provided that documentation of
19approval by the Treasurer of each group of payments made by
20direct deposit shall be retained by the Comptroller. The form
21and method of the Treasurer's approval shall be established by
22the rules or regulations adopted by the Comptroller under this
23Section.
24    (b) Except as provided in subsection (b-5), all All State
25payments for an employee's payroll or an employee's expense
26reimbursement must be made through direct deposit. It is the

 

 

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1responsibility of the paying State agency to ensure compliance
2with this mandate. If a State agency pays an employee's payroll
3or an employee's expense reimbursement without using direct
4deposit, the Comptroller may charge that employee a processing
5fee of $2.50 per paper warrant. The processing fee may be
6withheld from the employee's payment or reimbursement. The
7amount collected from the fee shall be deposited into the
8Comptroller's Administrative Fund.
9    (b-5) If an employee indicates in writing to the paying
10State agency that it is his or her desire to have his or her
11payroll or expense reimbursement in the form of a paper check,
12then the Comptroller shall disburse those amounts in that form.
13    (c) All State payments to a vendor that exceed the
14allowable limit of paper warrants in a fiscal year, by the same
15agency, must be made through direct deposit. It is the
16responsibility of the paying State agency to ensure compliance
17with this mandate. If a State agency pays a vendor more times
18than the allowable limit in a single fiscal year without using
19direct deposit, the Comptroller may charge the vendor a
20processing fee of $2.50 per paper warrant. The processing fee
21may be withheld from the vendor's payment. The amount collected
22from the processing fee shall be deposited into the
23Comptroller's Administrative Fund. The Office of the
24Comptroller shall define "allowable limit" in the
25Comptroller's Statewide Accounting Management System (SAMS)
26manual, except that the allowable limit shall not be less than

 

 

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130 paper warrants. The Office of the Comptroller shall also
2provide reasonable notice to all State agencies of the
3allowable limit of paper warrants.
4    (d) State employees covered by provisions in collective
5bargaining agreements that do not require direct deposit of
6paychecks are exempt from this mandate. No later than 60 days
7after the effective date of this amendatory Act of the 97th
8General Assembly, all State agencies must provide to the Office
9of the Comptroller a list of employees that are exempt under
10this subsection (d) from the direct deposit mandate. In
11addition, a State employee or vendor may file a hardship
12petition with the Office of the Comptroller requesting an
13exemption from the direct deposit mandate under this Section. A
14hardship petition shall be made available for download on the
15Comptroller's official Internet website.
16    (e) Notwithstanding any provision of law to the contrary,
17the direct deposit of State payments under this Section for an
18employee's payroll, an employee's expense reimbursement, or a
19State vendor's payment does not authorize the State to
20automatically withdraw funds from those accounts.
21    (f) For the purposes of this Section, "vendor" means a
22non-governmental entity with a taxpayer identification number
23issued by the Social Security Administration or Internal
24Revenue Service that receives payments through the
25Comptroller's commercial system. The term does not include
26State agencies.

 

 

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1    (g) The requirements of this Section do not apply to the
2legislative or judicial branches of State government.
3(Source: P.A. 97-348, eff. 8-12-11.)
 
4    Section 10. The Department of Employment Security Law of
5the Civil Administrative Code of Illinois is amended by adding
6Section 1005-200 as follows:
 
7    (20 ILCS 1005/1005-200 new)
8    Sec. 1005-200. Benefit payment method.
9    (a) The Department shall provide to each claimant, upon
10filing a claim for benefits, written notice of benefit payment
11options, which shall include: prepaid debit card, direct
12deposit, and paper check. The written notice shall require the
13claimant's signature to be kept on record by the Department in
14order to designate his or her benefit payment method as prepaid
15debit card, direct deposit, or paper check.
16    (b) The Department shall afford a claimant the opportunity
17to change, in writing, his or her benefit payment option at any
18time.
19    (c) Any claimant who has filed a claim for benefit and is
20either awaiting a determination by the Department or is
21currently receiving benefits on the effective date of this
22Section shall be provided written notice pursuant to subsection
23(a) of this Section within 30 days after that date and shall be
24afforded the opportunity to change his or her benefit payment

 

 

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1option pursuant to subsection (b) of this Section.