093_HB2385

 
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 1        AN ACT concerning electronic funds transfer.

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

 4        Section  5.   The  State  Comptroller  Act  is amended by
 5    changing 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.   The
 8    Comptroller, with the approval of the State   Treasurer,  may
 9    provide  by  rule or regulation for the direct deposit of any
10    payment lawfully payable  from  the  State  Treasury  and  in
11    accordance with federal banking regulations including but not
12    limited  to  payments  to  (i)  persons  paid  from  personal
13    services,  (ii)  persons  receiving benefit payments from him
14    under  the  State  pension  systems,  (iii)  individuals  who
15    receive assistance under Articles III,  IV,  and  VI  of  the
16    Illinois  Public  Aid  Code, (iv) providers of services under
17    the   Mental   Health    and    Developmental    Disabilities
18    Administrative  Act,  (v) providers of community-based mental
19    health  services,  and  (vi)  providers  of  services   under
20    programs administered by the State Board of Education, in the
21    accounts  of  those persons or entities maintained at a bank,
22    savings  and  loan  association,  or  credit   union,   where
23    authorized  by  the  payee.  The Comptroller also may deposit
24    public aid payments for individuals  who  receive  assistance
25    under  Articles III, IV, VI, and X of the Illinois Public Aid
26    Code directly into an electronic benefits transfer account in
27    a financial institution approved by the  State  Treasurer  as
28    prescribed  by  the Illinois Department of Human Services and
29    in  accordance  with  the  rules  and  regulations  of   that
30    Department  and  the  rules  and  regulation  adopted  by the
31    Comptroller and the State Treasurer.  The  Comptroller,  with
 
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 1    the  approval of the State Treasurer, may provide by rule for
 2    the electronic direct deposit of payments to public  agencies
 3    and  any  other  payee  of  the State.  The electronic direct
 4    deposits may be made  to  the  designated  account  in  those
 5    financial  institutions  specified  in  this  Section for the
 6    direct deposit  of  payments.   Within  6  months  after  the
 7    effective   date   of   this  amendatory  Act  of  1994,  the
 8    Comptroller  shall  establish  a  pilot   program   for   the
 9    electronic   direct  deposit  of  payments  to  local  school
10    districts, municipalities, and units of local government. The
11    payments may be made without the use of  the  voucher-warrant
12    system,  provided  that  documentation  of  approval  by  the
13    Treasurer  of  each  group of payments made by direct deposit
14    shall be retained by the Comptroller.  The form and method of
15    the Treasurer's approval shall be established by the rules or
16    regulations adopted by the Comptroller under this Section.
17        Within 6 months after the effective date of rules adopted
18    by the Comptroller pursuant to this  amendatory  Act  of  the
19    93rd  General  Assembly, all payments made by a State agency,
20    excluding payments under the Illinois Income Tax Act, must be
21    made by electronic funds transfer.
22        The Comptroller may waive application  of  the  mandatory
23    provisions  of  this Section with respect to (i) payments for
24    individuals, entities, or classes of individuals or  entities
25    for  whom  compliance  imposes  a  hardship, including when a
26    recipient  does  not  have  an   account   at   a   financial
27    institution;  (ii)  classifications  or  types of checks; and
28    (iii) other circumstances when it is deemed  necessary.   The
29    Comptroller   must   establish   any   waivers  within  rules
30    implementing this Section.
31        Each recipient of a State payment required to be made  by
32    electronic funds transfer must provide to the Comptroller, or
33    as required in rules adopted by the Comptroller applicable to
34    the  State  agency  that  makes  or authorizes a payment, the
 
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 1    information necessary for the recipient to receive electronic
 2    funds  transfer  payments  though  one  or   more   financial
 3    institutions or other authorized agents.
 4        Upon adoption of rules by the Comptroller, State agencies
 5    must  notify  payees  of  the  payee's rights and obligations
 6    under this Section and the implementing  rules.   Thereafter,
 7    State  agencies must require as a condition of a contract for
 8    goods or  services  that  the  payee  agree  to  receive  all
 9    payments  under  the contract electronically unless the payee
10    qualifies for a waiver established under rules adopted by the
11    Comptroller.  The rules adopted by the Comptroller under this
12    Section may require State agencies to (i)  require  qualified
13    payees to provide information necessary to make an electronic
14    payment  as  a  part of a proper request for payment and (ii)
15    submit that information to  the  Comptroller  as  part  of  a
16    proper voucher.
17        The   Comptroller   must  adopt  rules  implementing  the
18    provisions  of  this  amendatory  Act  of  the  93rd  General
19    Assembly.
20    (Source: P.A.  88-641,  eff.  9-9-94;  88-643,  eff.  1-1-95;
21    89-235, eff. 8-4-95; 89-507, eff. 7-1-97.)

22        Section  99.   Effective  date.  This Act takes effect on
23    January 1, 2004.