| (a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise. (1) Authorization form--The form designed by the comptroller that is used in accordance with this section. (2) Comptroller--The comptroller of public accounts for the State of Texas. (3) Credit entry--An electronic funds transfer that the comptroller initiates to an EFT account. (4) Custodial state agency--The participating state agency to which a vendor or a participating vendor submitted a properly completed authorization form to designate an EFT account. (5) Debit entry--A reversal of a credit entry. (6) EFT account--An account that has been designated in accordance with this section to receive credit entries from participating state agencies. (7) Electronic funds transfer
system--The system authorized by the Government Code, §403.016, that the comptroller uses to initiate payments instead of issuing warrants. (8) Include--A term of enlargement and not of limitation or exclusive enumeration. The use of the term does not create a presumption that components not expressed are excluded. (9) May not--A prohibition. The term does not mean "might not" or its equivalents. (10) Participating state agency--A state agency for which the comptroller and the state treasurer have agreed to initiate credit entries in payment of the agency's obligations to certain vendors. The term includes the comptroller. (11) Participating vendor--A vendor that receives credit entries initiated by the comptroller. (12) Paying state agency--With respect to a particular credit or debit entry, the state agency that requested the comptroller to initiate the entry.
(13) Rules--The requirements of the National Automated Clearing House Association concerning cash concentration disbursement, the Federal Reserve System's Regulation E, and the sections of this undesignated head. (14) State agency--A governmental entity that submits payment vouchers to the comptroller to request payments by the comptroller on behalf of the entity to the persons or entities named on the vouchers. (15) Vendor--An individual or entity other than a state employee, an annuitant, or a governmental entity as defined by §§5.13-5.15 of this title (relating to Claims Processing--Electronic Funds Transfers). (b) Participation. (1) Obtaining authorization forms. Except as provided in subsection (c)(3) and (5) of this section, a vendor or a participating vendor may obtain an authorization form from any participating state agency. (2) Becoming a
participating vendor. A vendor may become a participating vendor only by properly designating an EFT account in accordance with subsection (c)(1) of this section. (3) Agreements with participating state agencies. A participating vendor and a participating state agency may agree on which payments from the agency will be made through the electronic funds transfer system. Unless the comptroller is a party to the agreement: (A) the comptroller is not required to take any actions to facilitate or ensure the agency's compliance with the agreement; and (B) the comptroller is not liable for any damages that result from the agency's failure to comply with the agreement. (4) A participating vendor's termination of its participation. (A) A participating vendor may terminate its participation only by terminating the designation of each of the vendor's EFT accounts in accordance
with subsection (c)(3) of this section. (B) The comptroller may not initiate a credit entry to a participating vendor on or after the effective date of the termination of the designation of the vendor's last EFT account. (5) A custodial state agency's termination of a participating vendor's participation. (A) A custodial state agency may terminate a participating vendor's participation only if the agency is the only custodial state agency for the vendor. (B) If a custodial state agency is the only custodial state agency for a participating vendor, then the agency may terminate the vendor's participation by terminating the designation of each of the vendor's EFT accounts in accordance with subsection (c)(4) of this section. (C) The comptroller may not initiate a credit entry to a vendor on or after the effective date of the termination of the designation of
the vendor's last EFT account. (D) A participating vendor's participation may be terminated under this paragraph without prior notice to the vendor. (6) Inquiries. (A) A participating vendor must contact the paying state agency before contacting the comptroller when the vendor has a question about a particular credit entry or debit entry. (B) If a participating vendor receives an unidentified credit entry or debit entry, the vendor must first contact its financial institution to obtain necessary information about the entry. If the institution is unable to provide the information, then the vendor may ask the comptroller for the information. (C) A participating vendor may contact any participating state agency if the vendor has a question about this section. (7) Rules. A participating vendor shall comply with the rules as amended from time to time.
(c) EFT accounts. (1) Designating an EFT account. (A) A vendor or a participating vendor may designate an EFT account if: (i) the vendor or the participating vendor properly completes an authorization form and submits the form to a participating state agency; (ii) the account to be designated as an EFT account is a checking or savings account of the vendor or the participating vendor; and (iii) the account to be designated as an EFT account would be at a financial institution that allows credit entries to be made to the account. (B) A custodial state agency shall promptly submit a properly completed authorization form or the information on the form to the comptroller in accordance with the comptroller's requirements. (C) If a vendor or a participating vendor properly designates an EFT account, the effective date of the
designation is the fourteenth calendar day after the comptroller processes the information on the authorization form. The comptroller may initiate credit entries to the EFT account on or after the effective date. (2) Multiple EFT accounts. (A) A participating vendor may not designate more than one EFT account unless the vendor obtains the comptroller's prior written consent for each account beyond the first account. (B) This subparagraph applies only if a participating vendor has already designated an EFT account and received the comptroller's permission to designate an additional account. The vendor may designate the additional account by properly completing an authorization form and submitting the form to either the custodial state agency for the first account or any other participating state agency. (C) A participating state agency may not submit a participating vendor's authorization
form to the comptroller if: (i) the form would designate an EFT account for the vendor; (ii) the vendor has already designated an EFT account; and (iii) the vendor has not provided to the agency a copy of the comptroller's written consent for the designation of the additional account. (D) A participating state agency may not submit a participating vendor's authorization form to the comptroller if: (i) the form would designate an EFT account for the vendor; and (ii) the vendor has already designated the same account as an EFT account. (E) A participating state agency is not prohibited from being the custodial state agency for more than one EFT account of a participating vendor. (F) A participating vendor that has multiple EFT accounts and a participating state agency may agree that a certain type of payment from the
agency will be made only to the EFT account or accounts designated in the agreement. Unless the comptroller is a party to the agreement: (i) the comptroller is not required to take any actions to facilitate or ensure the agency's compliance with the agreement; and (ii) the comptroller is not liable for any damages that result from the agency's failure to comply with the agreement. (3) A participating vendor's termination of the designation of an EFT account. (A) A participating vendor may terminate the vendor's designation of an EFT account only by: (i) obtaining an authorization form from the custodial state agency for the account; (ii) properly completing the form; and Cont'd... |
