| (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 state agency to which a governmental entity or a participating governmental entity submitted a properly completed authorization form to designate an EFT account or to claim an exemption from the requirement to make a recurring payment through the electronic funds transfer system. (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. (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) Governmental entity--An entity specifically or impliedly established by law that exercises a sovereign power of the state. The term includes state agencies, special districts, local governments, municipal corporations, and political subdivisions. (9) 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. (10) May not--A prohibition. The term does not mean "might not" or its equivalents. (11) Participating governmental entity--A governmental entity 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) Recurring payment--A regular and periodic payment that is made by the comptroller. The term includes a recurring allocation of tax revenues by the comptroller. (14) 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. (b) Mandatory or voluntary participation. (1) Mandatory participation. (A) Except as provided in subparagraph (B) of this paragraph, a governmental entity that receives recurring payments must be a participating governmental entity. (B) A governmental entity is not required to be a participating governmental entity if subsection (c)(2)-(4) of this section would
prohibit the recurring payments to the entity from being made through the electronic funds transfer system if the entity were a participating governmental entity. An entity that is not required to be a participating governmental entity under this subparagraph must claim an exemption for each type of recurring payment in accordance with subsection (c)(5) of this section. (2) Voluntary participation. (A) A governmental entity that is not required by paragraph (1) of this subsection to be a participating governmental entity may be a participating governmental entity. (B) This subparagraph applies only to recurring payments that are not required by this section to be made through the electronic funds transfer system. A participating governmental entity and a state agency may agree on which types of nonrecurring payments from the agency will be paid through the electronic funds transfer system. 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) Powers and responsibilities of the comptroller and state agencies. (A) The comptroller's revenue accounting division must ensure that each governmental entity which receives recurring allocations of tax revenues from the comptroller is a participating governmental entity. This subparagraph applies only if the entity is required by paragraph (1) of this subsection to be a participating governmental entity. (B) A state agency must ensure that each governmental entity which receives recurring payments from the comptroller on behalf of the agency is a participating governmental entity. This subparagraph applies
only if: (i) the entity does not receive recurring allocations of tax revenues from the comptroller; and (ii) the entity is required by paragraph (1) of this subsection to be a participating governmental entity. (C) If a governmental entity is required but refuses or fails to become a participating governmental entity, then the entity's recurring payments may be retained by the paying state agency until the entity becomes a participating governmental entity. (c) Payments by the comptroller. (1) Payment methods. (A) Except as otherwise provided in this subsection, the comptroller must make a recurring payment to a participating governmental entity through the electronic funds transfer system. (B) The comptroller may make a nonrecurring payment to a participating governmental entity through the electronic funds transfer system.
(C) The comptroller may not make any type of payment to a nonparticipating governmental entity through the electronic funds transfer system. (D) The state agency on whose behalf the comptroller makes a payment is responsible for determining whether the payment is a recurring payment for the purpose of this section. The comptroller may rely on that determination. (2) Exemption based on cost. Notwithstanding paragraph (1)(A) of this subsection, the comptroller may not make a recurring payment to a participating governmental entity through the electronic funds transfer system if: (A) the comptroller determines that making the payment by warrant would cost less to the state; (B) the entity determines that making the payment by warrant would cost less to the entity; or (C) the state agency on whose behalf the comptroller would be making the payment determines that making the
payment by warrant would cost less to the agency. (3) Exemption based on impracticality. (A) Notwithstanding paragraph (1)(A) of this subsection, the comptroller may not make a recurring payment to a participating governmental entity through the electronic funds transfer system if: (i) the comptroller determines that making the payment through the electronic funds transfer system would be impractical to the state; (ii) the entity determines that making the payment through the electronic funds transfer system would be impractical to the entity; or (iii) the state agency on whose behalf the comptroller would be making the payment determines that making the payment through the electronic funds transfer system would be impractical to the agency. (B) Notwithstanding subparagraph (A)(iii) of this paragraph, a state agency must adopt a written policy before it may determine
that making a recurring payment to a governmental entity through the electronic funds transfer system is impractical to the agency. The policy must clearly state the circumstances under which the agency will find impracticability. The policy must be made available to the comptroller, the state auditor, and governmental entities upon request. (4) Exemption based on inability to obtain an account. Notwithstanding paragraph (1)(A) of this subsection, the comptroller may not make a recurring payment to a participating governmental entity through the electronic funds transfer system if the entity is unable to obtain an account at a financial institution that may be used to receive credit entries. (5) Claiming an exemption. (A) The exemption provided in paragraph (2)(B), (3)(A)(ii), or (4) of this subsection does not apply until a governmental entity or a participating governmental entity properly claims the exemption in accordance
with this paragraph. (B) A governmental entity that is not required to be a participating governmental entity under subsection (b)(1)(B) of this section must properly claim an exemption for each type of recurring payment in accordance with this paragraph. A governmental entity that fails to comply with this requirement must be a participating governmental entity. (C) A governmental entity or participating governmental entity may claim an exemption for a particular type of recurring payment only by properly completing an authorization form and submitting the form to: (i) the comptroller's revenue accounting division if the entity receives recurring allocations of tax revenues from the comptroller; or Cont'd... |
