(15 ILCS 405/9.03)
(from Ch. 15, par. 209.03)
Direct deposit of State payments.
(a) The Comptroller, with the
approval of the State Treasurer, may provide by rule or regulation for the
direct deposit of any payment lawfully payable from the State Treasury and in
accordance with federal banking regulations including but not limited to
payments to (i) persons paid from personal services, (ii)
persons receiving benefit payments from the Comptroller under the State pension
systems, (iii) individuals who receive assistance under Articles III, IV,
and VI of the Illinois Public Aid Code, (iv) providers of services under
the Mental Health and Developmental Disabilities
Administrative Act, (v)
providers of community-based mental health services, and (vi) providers of
services under programs administered by the State Board of Education, in the
accounts of those persons or entities maintained at a bank, savings and loan
association, or credit
union, where authorized by the payee. The Comptroller also may deposit
public aid payments for individuals who receive assistance under Articles
III, IV, VI, and X of the Illinois Public Aid Code directly into an
electronic benefits transfer account in a financial institution approved by
the State Treasurer as prescribed by the Illinois Department of Human
and in accordance with the rules and regulations of that Department and the
rules and regulations adopted by the Comptroller and the State Treasurer.
The Comptroller, with the approval of the State Treasurer, may provide by
rule for the electronic direct deposit of payments to public agencies and any
other payee of the State. The electronic direct
deposits may be made to the designated account in those financial institutions
specified in this Section for the direct deposit of payments. Within 6 months
after the effective date of this amendatory Act of 1994, the Comptroller shall
establish a pilot program for the electronic direct deposit of payments to
local school districts, municipalities, and units of local government.
The payments may be made without the use of the voucher-warrant system,
provided that documentation of approval by the Treasurer of each group of
payments made by direct deposit shall be retained by the Comptroller. The
form and method of the Treasurer's approval shall be established by the
rules or regulations adopted by the Comptroller under this Section.
(b) Except as provided in subsection (b-5), all State payments for an employee's payroll or an employee's expense reimbursement must be made through direct deposit. It is the responsibility of the paying State agency to ensure compliance with this mandate. If a State agency pays an employee's payroll or an employee's expense reimbursement without using direct deposit, the Comptroller may charge that employee a processing fee of $2.50 per paper warrant. The processing fee may be withheld from the employee's payment or reimbursement. The amount collected from the fee shall be deposited into the Comptroller's Administrative Fund.
(b-5) If an employee wants their payments deposited into a secure check account, the employee must submit a direct deposit form to the paying State agency for their payroll or to the Comptroller for their expense reimbursements. Upon acceptance of the direct deposit form, the Comptroller shall disburse those funds to the secure check account. For the purposes of this Section, "secure check account" means an account established with a financial institution for the employee that allows the dispensing of the funds in the account through a third party who dispenses to the employee a paper check.
(c) All State payments to a vendor that exceed the allowable limit of paper warrants in a fiscal year, by the same agency, must be made through direct deposit. It is the responsibility of the paying State agency to ensure compliance with this mandate. If a State agency pays a vendor more times than the allowable limit in a single fiscal year without using direct deposit, the Comptroller may charge the vendor a processing fee of $2.50 per paper warrant. The processing fee may be withheld from the vendor's payment. The amount collected from the processing fee shall be deposited into the Comptroller's Administrative Fund. The Office of the Comptroller shall define "allowable limit" in the Comptroller's Statewide Accounting Management System (SAMS) manual, except that the allowable limit shall not be less than 30 paper warrants. The Office of the Comptroller shall also provide reasonable notice to all State agencies of the allowable limit of paper warrants.
(d) State employees covered by provisions in collective bargaining agreements that do not require direct deposit of paychecks are exempt from this mandate. No later than 60 days after the effective date of this amendatory Act of the 97th General Assembly, all State agencies must provide to the Office of the Comptroller a list of employees that are exempt under this subsection (d) from the direct deposit mandate. In addition, a State employee or vendor may file a hardship petition with the Office of the Comptroller requesting an exemption from the direct deposit mandate under this Section. A hardship petition shall be made available for download on the Comptroller's official Internet website.
(e) Notwithstanding any provision of law to the contrary, the direct deposit of State payments under this Section for an employee's payroll, an employee's expense reimbursement, or a State vendor's payment does not authorize the State to automatically withdraw funds from those accounts.
(f) For the purposes of this Section, "vendor" means a non-governmental entity with a taxpayer identification number issued by the Social Security Administration or Internal Revenue Service that receives payments through the Comptroller's commercial system. The term does not include State agencies.
(g) The requirements of this Section do not apply to the legislative or judicial branches of State government.
(Source: P.A. 97-348, eff. 8-12-11; 97-993, eff. 9-16-12.)