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  S.B. No. 557
 
 
 
 
AN ACT
  relating to use of the electronic funds transfer system operated by
  the comptroller.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 403.016, Government Code, is amended by
  amending Subsections (b), (c), and (f) and adding Subsections (f-1)
  and (f-2) to read as follows:
         (b)  The comptroller shall use the electronic funds transfer
  system to pay an employee's net state salary and travel expense
  reimbursements [unless:
               [(1) the employee does not hold a classified position
  under the state's position classification plan and the employee's
  gross state salary is less than the gross state salary for a
  position classified to group 8, step 1, of the state position
  classification plan; or
               [(2) the employee holds a classified position under the
  state's position classification plan that is classified below group
  8].
         (c)  The comptroller shall use the electronic funds transfer
  system to make:
               (1)  payments of more than $100 to annuitants by the
  Employees Retirement System of Texas, [or] the Teacher Retirement
  System of Texas, or the Texas Emergency Services Retirement System
  under each [either] system's administrative jurisdiction;
               (2)  recurring payments to municipalities, counties,
  political subdivisions, special districts, and other governmental
  entities of this state; and
               (3)  payments to vendors who choose to receive payment
  through the electronic funds transfer system rather than by
  warrant.
         (f) [(1)]  Except as provided by Subsection (f-1)
  [Subdivisions (2) and (4)] and subject to any limitation in rules
  adopted by the comptroller, an automated clearinghouse, or the
  federal government, the comptroller may use the electronic funds
  transfer system to deposit payments only to one or more accounts of
  a payee at one or more financial institutions, including credit
  unions.
         (f-1) [(2)]  The comptroller may also use the electronic
  funds transfer system to deposit the amount [a portion] of an
  employee's payroll deduction made as authorized by law [gross pay
  into the employee's account at a credit union as prescribed by
  Subchapter G, Chapter 659].
         (f-2) [(3)]  A single electronic funds transfer may contain
  payments to multiple payees.  Individual transfers or warrants are
  not required for each payee.
               [(4) The comptroller may also use the electronic funds
  transfer system to deposit a portion of an employee's gross pay into
  an account of an eligible state employee organization for a
  membership as prescribed by Subchapter G, Chapter 659.]
         SECTION 2.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2019.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 557 passed the Senate on
  April 11, 2019, by the following vote:  Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 557 passed the House on
  May 16, 2019, by the following vote:  Yeas 133, Nays 0, two
  present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor