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Full Text of HB5189  97th General Assembly


Rep. Franco Coladipietro

Filed: 3/5/2012





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2    AMENDMENT NO. ______. Amend House Bill 5189 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The State Comptroller Act is amended by
5changing Section 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



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1Mental Health and Developmental Disabilities Administrative
2Act, (v) providers of community-based mental health services,
3and (vi) providers of services under programs administered by
4the State Board of Education, in the accounts of those persons
5or entities maintained at a bank, savings and loan association,
6or credit union, where authorized by the payee. The Comptroller
7also may deposit public aid payments for individuals who
8receive assistance under Articles III, IV, VI, and X of the
9Illinois Public Aid Code directly into an electronic benefits
10transfer account in a financial institution approved by the
11State Treasurer as prescribed by the Illinois Department of
12Human Services and in accordance with the rules and regulations
13of that Department and the rules and regulations adopted by the
14Comptroller and the State Treasurer. The Comptroller, with the
15approval of the State Treasurer, may provide by rule for the
16electronic direct deposit of payments to public agencies and
17any other payee of the State. The electronic direct deposits
18may be made to the designated account in those financial
19institutions specified in this Section for the direct deposit
20of payments. Within 6 months after the effective date of this
21amendatory Act of 1994, the Comptroller shall establish a pilot
22program for the electronic direct deposit of payments to local
23school districts, municipalities, and units of local
24government. The payments may be made without the use of the
25voucher-warrant system, provided that documentation of
26approval by the Treasurer of each group of payments made by



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1direct deposit shall be retained by the Comptroller. The form
2and method of the Treasurer's approval shall be established by
3the rules or regulations adopted by the Comptroller under this
5    (b) Except as provided in subsection (b-5), all All State
6payments for an employee's payroll or an employee's expense
7reimbursement must be made through direct deposit. It is the
8responsibility of the paying State agency to ensure compliance
9with this mandate. If a State agency pays an employee's payroll
10or an employee's expense reimbursement without using direct
11deposit, the Comptroller may charge that employee a processing
12fee of $2.50 per paper warrant. The processing fee may be
13withheld from the employee's payment or reimbursement. The
14amount collected from the fee shall be deposited into the
15Comptroller's Administrative Fund.
16    (b-5) If an employee indicates in writing to the paying
17State agency or the Comptroller that it is his or her desire to
18have his or her payroll or expense reimbursement deposited to a
19secure check account, then the Comptroller shall disburse those
20amounts in that form. For the purposes of this Section, "secure
21check account" means an account established with a financial
22institution for the employee that allows the dispensing of the
23funds in the account through a third party who dispenses to the
24employee a paper check.
25    (c) All State payments to a vendor that exceed the
26allowable limit of paper warrants in a fiscal year, by the same



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1agency, must be made through direct deposit. It is the
2responsibility of the paying State agency to ensure compliance
3with this mandate. If a State agency pays a vendor more times
4than the allowable limit in a single fiscal year without using
5direct deposit, the Comptroller may charge the vendor a
6processing fee of $2.50 per paper warrant. The processing fee
7may be withheld from the vendor's payment. The amount collected
8from the processing fee shall be deposited into the
9Comptroller's Administrative Fund. The Office of the
10Comptroller shall define "allowable limit" in the
11Comptroller's Statewide Accounting Management System (SAMS)
12manual, except that the allowable limit shall not be less than
1330 paper warrants. The Office of the Comptroller shall also
14provide reasonable notice to all State agencies of the
15allowable limit of paper warrants.
16    (d) State employees covered by provisions in collective
17bargaining agreements that do not require direct deposit of
18paychecks are exempt from this mandate. No later than 60 days
19after the effective date of this amendatory Act of the 97th
20General Assembly, all State agencies must provide to the Office
21of the Comptroller a list of employees that are exempt under
22this subsection (d) from the direct deposit mandate. In
23addition, a State employee or vendor may file a hardship
24petition with the Office of the Comptroller requesting an
25exemption from the direct deposit mandate under this Section. A
26hardship petition shall be made available for download on the



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1Comptroller's official Internet website.
2    (e) Notwithstanding any provision of law to the contrary,
3the direct deposit of State payments under this Section for an
4employee's payroll, an employee's expense reimbursement, or a
5State vendor's payment does not authorize the State to
6automatically withdraw funds from those accounts.
7    (f) For the purposes of this Section, "vendor" means a
8non-governmental entity with a taxpayer identification number
9issued by the Social Security Administration or Internal
10Revenue Service that receives payments through the
11Comptroller's commercial system. The term does not include
12State agencies.
13    (g) The requirements of this Section do not apply to the
14legislative or judicial branches of State government.
15(Source: P.A. 97-348, eff. 8-12-11.)
16    Section 10. The Department of Employment Security Law of
17the Civil Administrative Code of Illinois is amended by adding
18Section 1005-200 as follows:
19    (20 ILCS 1005/1005-200 new)
20    Sec. 1005-200. Benefit payment method.
21    (a) The Department shall provide to each claimant, upon
22filing a claim for benefits, written notice of benefit payment
23options, which shall include the following: prepaid debit card,
24direct deposit, and secure check account. The written notice



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1shall require the claimant's signature to be kept on record by
2the Department in order to designate his or her benefit payment
3method as prepaid debit card, direct deposit, or secure check
5    (b) The Department shall afford a claimant the opportunity
6to change, in writing, his or her benefit payment option at any
8    (c) Any claimant who has filed a claim for benefit and is
9either awaiting a determination by the Department or is
10currently receiving benefits on or after the effective date of
11this Section shall be provided written notice pursuant to
12subsection (a) of this Section within 30 days after that date
13and shall be afforded the opportunity at any time to change his
14or her benefit payment option pursuant to subsection (b) of
15this Section.
16    (d) For the purposes of this Section, "secure check
17account" means an account established with a financial
18institution for the claimant that allows the dispensing of the
19funds in the account through a third party who dispenses to the
20claimant a paper check.
21    Section 99. Effective date. This Act takes effect 30 days
22after becoming law.".