| (iv) make the warrant available for pick up by the
employer whose employees' deducted amounts are being paid by the warrant.
(B) An employer shall hand-deliver or use an overnight
delivery service to deliver a warrant picked up under subparagraph
(A) of this paragraph to the payee of the warrant.
(i) If the warrant relates to salary or wages that
are paid on the first workday of a month, the employer shall:
(I) release the warrant to an overnight delivery service
not later than the second workday of the month for delivery to the
payee of the warrant; or
(II) hand-deliver the warrant to the payee of the warrant
not later than the third workday of the month.
(ii) If the warrant relates to salary or wages that
are paid on a day other than the first workday of a month, the employer
shall:
(I) release the warrant to an overnight delivery service
not later than the second workday after the employer receives the
warrant for delivery to the payee of the warrant; or
(II) hand-deliver the warrant to the payee of the warrant
not later than the third workday after the employer receives the warrant.
(3) Payments by institutions of higher education.
(A) This paragraph applies only to deductions from
salaries or wages that the comptroller does not pay directly to state
employees of institutions of higher education.
(B) If feasible, an institution of higher education
shall pay deducted amounts to a participating credit union by electronic
funds transfer.
(C) If an institution of higher education pays deducted
amounts to a participating credit union by electronic funds transfer,
the institution may:
(i) make one transfer to the credit union and require
it to distribute the transferred funds to state employees' accounts
according to subsection (h) of this section; or
(ii) make one transfer to the credit union account
of each state employee.
(D) If it is infeasible for an institution of higher
education to pay deducted amounts to a participating credit union
by electronic funds transfer, the institution shall:
(i) pay the amounts by check;
(ii) make the check payable to the credit union; and
(iii) require the credit union to distribute the deducted
amounts to state employees' accounts according to subsection (h) of
this section.
(E) An institution of higher education shall hand-deliver
or use an overnight delivery service to deliver a check issued under
subparagraph (D) of this paragraph to the payee of the check.
(i) If the check relates to salary or wages that are
paid on the first workday of a month, the institution shall:
(I) release the check to an overnight delivery service
not later than the second workday of the month for delivery to the
payee of the check; or
(II) hand-deliver the check to the payee of the check
not later than the third workday of the month.
(ii) If the check relates to salary or wages that are
paid on a day other than the first workday of a month, the institution
shall:
(I) release the check to an overnight delivery service
not later than the second workday after the date printed on the check
for delivery to the payee of the check; or
(II) hand-deliver the check to the payee of the check
not later than the third workday after the date printed on the check.
(h) Distributions of deducted amounts.
(1) Applicability of this subsection. This subsection
applies to deducted amounts only if they are paid to a participating
credit union under subsection (g)(1)(B)(i), (g)(2), (g)(3)(C)(i),
or (g)(3)(D) of this section.
(2) Requirement. A participating credit union shall
distribute the amount deducted from a state employee's salary or wages
to the proper account of the employee at the credit union.
(3) Deadline for distributions.
(A) This subparagraph applies only if a participating
credit union receives a payment of deducted amounts through an electronic
funds transfer. The credit union shall distribute them according to
paragraph (2) of this subsection not later than the first workday
after the credit union receives the detail report for the deducted
amounts.
(B) This subparagraph applies only if a participating
credit union receives a payment of deducted amounts through a warrant
or check. The credit union shall distribute them according to paragraph
(2) of this subsection not later than the first workday after the
credit union receives the warrant or check.
(4) Distribution of interest earned. This paragraph
applies only to the interest that accrues while an employee's deducted
amounts are in a credit union account awaiting distribution to the
employee's account at the credit union. The interest shall be paid
to the employee's account unless the credit union determines the payment
would violate federal or state law or an agreement between the credit
union and the employee.
(i) Charging administrative fees to cover costs incurred
to make deductions.
(1) Requirement.
(A) This subparagraph applies to a state employee whose
salary or wages are paid through a warrant issued or an electronic
funds transfer initiated by the comptroller. The comptroller may not
charge the employee an administrative fee to cover the cost of making
the deduction.
(B) If a state employee's salary or wages are paid
through a check issued or an electronic funds transfer initiated by
an institution of higher education and the institution's payroll costs
are reimbursed from the state treasury, the institution may determine
whether the employee must pay an administrative fee to cover the cost
of making the deduction. The fee, if charged, shall be paid through
payroll deduction.
(2) Determination by an institution of higher education
of the amount of the fee.
(A) An institution of higher education shall determine
the amount of the administrative fee, if any, to be paid by a state
employee covered by paragraph (1)(B) of this subsection.
(B) The institution shall periodically recalculate
the fee to ensure that the amount of the fee equals the cost of making
the deduction. Except as otherwise provided in this subparagraph,
the institution shall notify each participating credit union and employee
of the institution in writing whenever the institution calculates
or recalculates the fee. The institution is not required to notify
an employee who has not authorized a deduction or a participating
credit union to which no employee of the institution has authorized
a currently-effective deduction.
(3) Payment of the administrative fees. The total amount
of administrative fees that an institution of higher education deducts
from its state employees' salary and wages shall be paid to the institution.
(j) Canceled payments of salary or wages; refunding
deducted amounts to employers.
(1) Canceled payments of salary or wages.
(A) An employer shall notify a participating credit
union in writing about the employer's cancellation of a payment of
salary or wages to a state employee not later than the day the employer
processes the cancellation. This subparagraph applies only if:
(i) the payment is canceled after the employer has
hand-delivered to the credit union or released to an overnight delivery
service a monthly or an additional detail report; and
(ii) the deductions covered by the report include deductions
from the canceled payment of salary or wages.
(B) If an employer notifies a credit union that the
employer has canceled a payment of salary or wages to a state employee
and if the credit union receives the notice before it distributes
deducted amounts to the employee's account, the credit union may not
make the distribution.
(C) If a credit union's distribution of deducted amounts
is prohibited by subparagraph (B) of this paragraph, the employer
that paid them to the credit union shall obtain a refund of them according
to paragraph (3)(A) or (B) of this subsection.
(D) If an employer notifies a credit union that the
employer has canceled a payment of salary or wages to a state employee
and if the credit union receives the notice after it distributes deducted
amounts to the employee's account, the credit union shall withdraw
the amounts from the account unless:
(i) the credit union determines the withdrawal would
violate federal or state law; or
Cont'd... |
