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Full Text of HB5189  97th General Assembly


Rep. Franco Coladipietro

Filed: 3/26/2012





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2    AMENDMENT NO. ______. Amend House Bill 5189, AS AMENDED, by
3replacing everything after the enacting clause with the
5    "Section 5. The State Comptroller Act is amended by
6changing Section 9.03 as follows:
7    (15 ILCS 405/9.03)  (from Ch. 15, par. 209.03)
8    Sec. 9.03. Direct deposit of State payments.
9    (a) The Comptroller, with the approval of the State
10Treasurer, may provide by rule or regulation for the direct
11deposit of any payment lawfully payable from the State Treasury
12and in accordance with federal banking regulations including
13but not limited to payments to (i) persons paid from personal
14services, (ii) persons receiving benefit payments from the
15Comptroller under the State pension systems, (iii) individuals
16who receive assistance under Articles III, IV, and VI of the



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



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1approval by the Treasurer of each group of payments made by
2direct deposit shall be retained by the Comptroller. The form
3and method of the Treasurer's approval shall be established by
4the rules or regulations adopted by the Comptroller under this
6    (b) Except as provided in subsection (b-5), all All State
7payments for an employee's payroll or an employee's expense
8reimbursement must be made through direct deposit. It is the
9responsibility of the paying State agency to ensure compliance
10with this mandate. If a State agency pays an employee's payroll
11or an employee's expense reimbursement without using direct
12deposit, the Comptroller may charge that employee a processing
13fee of $2.50 per paper warrant. The processing fee may be
14withheld from the employee's payment or reimbursement. The
15amount collected from the fee shall be deposited into the
16Comptroller's Administrative Fund.
17    (b-5) If an employee wants their payments deposited into a
18secure check account, the employee must submit a direct deposit
19form to the paying State agency for their payroll or to the
20Comptroller for their expense reimbursements. Upon acceptance
21of the direct deposit form, the Comptroller shall disburse
22those funds to the secure check account. For the purposes of
23this Section, "secure check account" means an account
24established with a financial institution for the employee that
25allows the dispensing of the funds in the account through a
26third party who dispenses to the employee a paper check.



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1    (c) All State payments to a vendor that exceed the
2allowable limit of paper warrants in a fiscal year, by the same
3agency, must be made through direct deposit. It is the
4responsibility of the paying State agency to ensure compliance
5with this mandate. If a State agency pays a vendor more times
6than the allowable limit in a single fiscal year without using
7direct deposit, the Comptroller may charge the vendor a
8processing fee of $2.50 per paper warrant. The processing fee
9may be withheld from the vendor's payment. The amount collected
10from the processing fee shall be deposited into the
11Comptroller's Administrative Fund. The Office of the
12Comptroller shall define "allowable limit" in the
13Comptroller's Statewide Accounting Management System (SAMS)
14manual, except that the allowable limit shall not be less than
1530 paper warrants. The Office of the Comptroller shall also
16provide reasonable notice to all State agencies of the
17allowable limit of paper warrants.
18    (d) State employees covered by provisions in collective
19bargaining agreements that do not require direct deposit of
20paychecks are exempt from this mandate. No later than 60 days
21after the effective date of this amendatory Act of the 97th
22General Assembly, all State agencies must provide to the Office
23of the Comptroller a list of employees that are exempt under
24this subsection (d) from the direct deposit mandate. In
25addition, a State employee or vendor may file a hardship
26petition with the Office of the Comptroller requesting an



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1exemption from the direct deposit mandate under this Section. A
2hardship petition shall be made available for download on the
3Comptroller's official Internet website.
4    (e) Notwithstanding any provision of law to the contrary,
5the direct deposit of State payments under this Section for an
6employee's payroll, an employee's expense reimbursement, or a
7State vendor's payment does not authorize the State to
8automatically withdraw funds from those accounts.
9    (f) For the purposes of this Section, "vendor" means a
10non-governmental entity with a taxpayer identification number
11issued by the Social Security Administration or Internal
12Revenue Service that receives payments through the
13Comptroller's commercial system. The term does not include
14State agencies.
15    (g) The requirements of this Section do not apply to the
16legislative or judicial branches of State government.
17(Source: P.A. 97-348, eff. 8-12-11.)
18    Section 99. Effective date. This Act takes effect 30 days
19after becoming law.".