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TITLE 34PUBLIC FINANCE
PART 1COMPTROLLER OF PUBLIC ACCOUNTS
CHAPTER 5FUNDS MANAGEMENT (FISCAL AFFAIRS)
SUBCHAPTER DCLAIMS PROCESSING--PAYROLL
RULE §5.47Deductions for Payments to Credit Unions

(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.

  (1) Comptroller--The comptroller of public accounts for the State of Texas.

  (2) Credit union--A state credit union, an out-of-state credit union, a foreign credit union, or a federal credit union.

  (3) Electronic funds transfer--A payment made electronically instead of by warrant or check. The term includes a payment made through an automated clearinghouse, by bank wire, or by federal wire.

  (4) Employer--A state agency that employs one or more state employees.

  (5) Federal credit union--A credit union organized under the Federal Credit Union Act.

  (6) Foreign credit union--A credit union that is not organized under the laws of the this state or the United States if the credit union is authorized under the Texas Credit Union Act to do business in this state.

  (7) Holiday--A state or national holiday as specified by the General Appropriations Act or Texas Government Code, §§662.001-662.010.

  (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) Institution of higher education--Has the meaning assigned by the Education Code, §61.003.

  (10) May not--A prohibition. The term does not mean "might not" or its equivalents.

  (11) Out-of-state credit union--A credit union organized under the laws of a state other than Texas if the credit union is authorized under the Texas Credit Union Act to do business in this state.

  (12) Participating credit union--A credit union that the comptroller has certified according to this section.

  (13) Payee identification number--The 14-digit number that the comptroller assigns to each direct recipient of a payment made by the comptroller for the State of Texas.

  (14) Salary or wages--Base salary or wages, longevity pay, or hazardous duty pay.

  (15) State agency--A department, commission, board, office, or other agency of any branch of Texas state government, including an institution of higher education.

  (16) State credit union--A voluntary, cooperative, nonprofit financial institution that is authorized under the Texas Credit Union Act to do business in this state for the purposes of:

    (A) encouraging thrift among its members;

    (B) creating a source of credit at fair and reasonable rates of interest;

    (C) providing an opportunity for its members to use and control their own money to improve their economic and social condition; and

    (D) conducting any other business, engaging in any other activity, and providing any other service that may be of benefit to its members subject to the Texas Credit Union Act and rules adopted under that law.

  (17) State employee--An employee of a state agency. The term includes an elected or appointed official, a part-time employee, an hourly employee, a temporary employee, an employee who is not covered by the Position Classification Act, and a combination of the preceding. The term excludes an independent contractor and an employee of an independent contractor.

  (18) USPS--The uniform statewide payroll/personnel system.

  (19) Workday--A calendar day other than Saturday, Sunday, or a holiday.

(b) Deductions.

  (1) References in this section. A reference in this section to a deduction without further qualification or explanation is a reference only to a deduction from a state employee's salary or wages to make a payment to a participating credit union.

  (2) Authorization of deductions.

    (A) A state employee may authorize not more than three monthly deductions from the employee's salary or wages. However, a state employee may not authorize more than one monthly deduction to any particular participating credit union.

    (B) A state employee may authorize a deduction only if the employee:

      (i) properly completes an authorization form; and

      (ii) submits the form to the participating credit union to which the deducted amounts will be paid.

    (C) Neither the comptroller nor a state agency is liable or responsible for any damages or other consequences resulting from a state employee authorizing an incorrect amount of a deduction.

    (D) An authorization form is not properly completed for purposes of subparagraph (B)(i) of this paragraph unless the form states the amount of administrative fees the employee completing the form must pay under this section. The amount must be stated on the form before the employee signs it.

  (3) Change in the amount of a deduction.

    (A) At any time, a state employee may authorize a change in the amount to be deducted from the employee's salary or wages.

    (B) A state employee may authorize a change in the amount of a deduction only if the employee:

      (i) properly completes an authorization form; and

      (ii) submits the form to the affected participating credit union.

    (C) Neither the comptroller nor a state agency is liable or responsible for any damages or other consequences resulting from a state employee changing the amount of a deduction.

    (D) An authorization form is not properly completed for purposes of subparagraph (B)(i) of this paragraph unless the form states the amount of administrative fees the employee completing the form must pay under this section. The amount must be stated on the form before the employee signs it.

  (4) Sufficiency of salary or wages to support a deduction.

    (A) A state employee is solely responsible for ensuring that the employee's salary or wages are sufficient to support a deduction.

    (B) If a state employee's salary or wages are sufficient to support only part of a deduction, then no part of the deduction may be made. If a state employee has authorized more than one deduction and the employee's salary or wages are insufficient to support all the deductions, then none of the deductions may be made.

    (C) The amount that could not be deducted from a state employee's salary or wages because of subparagraph (B) of this paragraph may not be made up by deducting the amount from subsequent payments of salary or wages to the employee.

  (5) Timing of deductions.

    (A) Except as provided in subparagraph (B) of this paragraph, a deduction must be made from the salary or wages that are paid on the first working day of a month.

    (B) If a state employee does not receive a payment of salary or wages on the first working day of a month, then the employer of the employee may designate the payment of salary or wages from which a deduction will be made. A deduction may be made only once each month.

  (6) Cancellation of deductions.

    (A) A state employee may cancel a deduction at any time. A cancellation is effective only if the employee properly completes an authorization form and submits the form to the affected participating credit union or the employee's employer.

    (B) This subparagraph applies only if a state employee cancels a deduction by submitting an authorization form to the employee's employer and if the employer submits monthly detail reports directly to participating credit unions.

      (i) Except as provided in clause (ii) of this subparagraph, the employer shall include a copy of the form with the next monthly detail report that the employer sends to the affected participating credit union.

      (ii) If the next monthly detail report will not be sent before the tenth workday after the day on which the form becomes effective, then the employer shall mail or hand deliver the copy of the form to the credit union not later than that workday.

    (C) This subparagraph applies only if a state employee cancels a deduction by submitting an authorization form to the employee's employer and if the comptroller submits monthly detail reports to participating credit unions on the employer's behalf. The employer shall mail or hand deliver a copy of the form to the credit union not later than the tenth workday after the day on which the form becomes effective.

    (D) Neither the comptroller nor a state agency is liable or responsible for any damages or other consequences resulting from a state employee canceling a deduction.

  (7) Interagency transfers of state employees. A state employee who transfers from one state agency to a second state agency may be treated by the second state agency as if the employee has not yet authorized any deductions.

(c) Effective dates of authorization forms.

  (1) Effective date of authorization forms that request new deductions. This paragraph applies only to a state employee's authorization form that requests a new deduction. The employer of the employee may decide when the first deduction from the employee's salary or wages will occur. However, the deduction must begin not later than with the employee's salary or wages that are paid on the first workday of the second month following the month in which the employer receives the form.

  (2) Effective date of authorization forms that request changes in deductions. This paragraph applies only to a state employee's authorization form that requests a change to a deduction. The employer of the employee may decide when the change will take effect. However, the change must take effect not later than with the employee's salary or wages that are paid on the first workday of the second month following the month in which the employer receives the form.

  (3) Effective date of authorization forms that request cancellations of deductions. This paragraph applies only to a state employee's authorization form that requests the cancellation of a deduction. The employer of the employee may decide when the cancellation will take effect. However, the cancellation must take effect not later than with the employee's salary or wages that are paid on the first workday of the second month following the month in which the employer receives the form.

  (4) Copies of authorization forms.

    (A) A participating credit union is solely responsible for making a copy of an authorization form before the credit union submits the form to a state agency.

    (B) A state employee is solely responsible for making a copy of an authorization form before the employee submits the form to a participating credit union or state agency.

(d) Return of authorization forms.

  (1) Mandatory return. A state agency shall return an authorization form to the participating credit union or state employee that submitted the form if it:

    (A) is incomplete, contains erroneous data, or is otherwise insufficient and the insufficiency makes it impossible for the agency to cancel, establish, or change the deduction according to the form; or

    (B) is for an individual who is not employed by the agency.

  (2) Discretionary return. A state agency may return an authorization form to the participating credit union or state employee that submitted the form if the form is a copy or facsimile.

(e) Requirements for the content and format of authorization forms.

  (1) Prohibition against distributing or providing authorization forms. A participating credit union may not distribute or provide an authorization form to a state employee until the credit union has received the comptroller's written approval of the form.

  (2) Requirement to produce authorization forms. As a condition for retaining its certification, a participating credit union must produce an authorization form that complies with the comptroller's requirements and this section. The credit union must produce the form within a reasonable time after receiving its certification from the comptroller.

  (3) Using previously approved authorization forms. A participating credit union may use an authorization form that the comptroller has approved for use by another participating credit union if the form is modified so that the first credit union's name appears at the top of the form.

  (4) Restrictions on approval of authorization forms by the comptroller. The comptroller may not approve the authorization form of a participating credit union unless:

    (A) the form is at least 8 1/2 inches wide;

    (B) the form is at least 11 inches long;

    (C) the form has a blank space for insertion of the amount of administrative fees the employee completing the form must pay under this section;

    (D) the name of the credit union appears at the top of the form; and

    (E) the form complies with the comptroller's other requirements for format and substance.

  (5) Revisions of authorization forms. A participating credit union shall revise an authorization form upon request from the comptroller. The credit union may not distribute or otherwise make available a revised form to a state employee until the credit union has received the comptroller's written approval of the form.

(f) Requirements for certifying and decertifying credit unions.

  (1) Request for certification. The comptroller may not certify a credit union unless the comptroller receives a written request for certification from an individual who is authorized by the credit union to make the request.

  (2) Requirements for requests for certification. The comptroller may not certify a credit union unless its request for certification includes:

    (A) the credit union's complete name;

    (B) the street address of the credit union's main branch;

    (C) the mailing address of the credit union's main branch, if different from the street address;

Cont'd...

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