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Full Text of HB5189  97th General Assembly




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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
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 wants their payments deposited into a
10secure check account, the employee must submit a direct deposit
11form to the paying State agency for their payroll or to the
12Comptroller for their expense reimbursements. Upon acceptance
13of the direct deposit form, the Comptroller shall disburse
14those funds to the secure check account. For the purposes of
15this Section, "secure check account" means an account
16established with a financial institution for the employee that
17allows the dispensing of the funds in the account through a
18third party who dispenses to the employee a paper check.
19    (c) All State payments to a vendor that exceed the
20allowable limit of paper warrants in a fiscal year, by the same
21agency, must be made through direct deposit. It is the
22responsibility of the paying State agency to ensure compliance
23with this mandate. If a State agency pays a vendor more times
24than the allowable limit in a single fiscal year without using
25direct deposit, the Comptroller may charge the vendor a
26processing fee of $2.50 per paper warrant. The processing fee



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1may be withheld from the vendor's payment. The amount collected
2from the processing fee shall be deposited into the
3Comptroller's Administrative Fund. The Office of the
4Comptroller shall define "allowable limit" in the
5Comptroller's Statewide Accounting Management System (SAMS)
6manual, except that the allowable limit shall not be less than
730 paper warrants. The Office of the Comptroller shall also
8provide reasonable notice to all State agencies of the
9allowable limit of paper warrants.
10    (d) State employees covered by provisions in collective
11bargaining agreements that do not require direct deposit of
12paychecks are exempt from this mandate. No later than 60 days
13after the effective date of this amendatory Act of the 97th
14General Assembly, all State agencies must provide to the Office
15of the Comptroller a list of employees that are exempt under
16this subsection (d) from the direct deposit mandate. In
17addition, a State employee or vendor may file a hardship
18petition with the Office of the Comptroller requesting an
19exemption from the direct deposit mandate under this Section. A
20hardship petition shall be made available for download on the
21Comptroller's official Internet website.
22    (e) Notwithstanding any provision of law to the contrary,
23the direct deposit of State payments under this Section for an
24employee's payroll, an employee's expense reimbursement, or a
25State vendor's payment does not authorize the State to
26automatically withdraw funds from those accounts.



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1    (f) For the purposes of this Section, "vendor" means a
2non-governmental entity with a taxpayer identification number
3issued by the Social Security Administration or Internal
4Revenue Service that receives payments through the
5Comptroller's commercial system. The term does not include
6State agencies.
7    (g) The requirements of this Section do not apply to the
8legislative or judicial branches of State government.
9(Source: P.A. 97-348, eff. 8-12-11.)
10    Section 99. Effective date. This Act takes effect 30 days
11after becoming law.