HB5189 97TH GENERAL ASSEMBLY

LRB097 18784 JDS 64020 b

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.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning State government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The State Comptroller Act is amended by changing Section 9.03 as follows:

(15 ILCS 405/9.03) (from Ch. 15, par. 209.03)

Sec. 9.03. 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 Services 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 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 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.

(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.)

Section 10. The Department of Employment Security Law of the Civil Administrative Code of Illinois is amended by adding Section 1005-200 as follows:

(20 ILCS 1005/1005-200 new)

Sec. 1005-200. Benefit payment method.

(a) The Department shall provide to each claimant, upon filing a claim for benefits, written notice of benefit payment options, which shall include: prepaid debit card, direct deposit, and paper check. The written notice shall require the claimant's signature to be kept on record by the Department in order to designate his or her benefit payment method as prepaid debit card, direct deposit, or paper check.

(b) The Department shall afford a claimant the opportunity to change, in writing, his or her benefit payment option at any time.

(c) Any claimant who has filed a claim for benefit and is either awaiting a determination by the Department or is currently receiving benefits on the effective date of this Section shall be provided written notice pursuant to subsection (a) of this Section within 30 days after that date and shall be afforded the opportunity to change his or her benefit payment option pursuant to subsection (b) of this Section.