| (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.
(6) 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 and electronic
authorizations.
(1) Effective date of authorization forms or electronic
authorizations that request new deductions, changes in deductions,
or cancellation of deductions. This paragraph applies to a state employee's
authorization form or electronic authorization that requests a new
deduction, change in a deduction, or cancellation of a deduction.
The employer may decide when the first deduction from the employee's
salary or wages, or the change or cancellation of the deduction, will
occur. However, the authorized deduction, change in a deduction, or
cancellation of a 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:
(A) the employer receives the authorization form; or
(B) the electronic authorization is submitted through
CAPPS.
(2) 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 an employer.
(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 employer.
(d) Return of authorization forms.
(1) Mandatory return. An employer 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 employer
to cancel, establish, or change the deduction according to the form;
or
(B) is for an individual who is not employed by the
employer.
(2) Discretionary return. An employer 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 has a blank space for insertion of the
amount of administrative fees the employee completing the form must
pay under this section;
(B) the name of the credit union appears at the top
of the form; and
(C) 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;
(D) the full name, title, telephone number, email address,
and mailing address of the credit union's primary contact;
(E) the credit union's Internal Revenue Service employer
identification number; and
(F) the other information that the comptroller deems
necessary.
(3) Electronic funds transfers. The comptroller may
not certify a credit union unless the credit union:
(A) submits to the comptroller a request for deducted
amounts to be paid by the comptroller through electronic funds transfers
under rules and procedures adopted by the comptroller;
(B) submits to each institution of higher education
that will be paying deducted amounts directly to the credit union
a request for those amounts to be paid through electronic funds transfers;
and
(C) all those requests are approved.
(4) Notifications.
(A) The comptroller shall notify a credit union in
writing about the comptroller's approval or disapproval of the credit
union's request for certification not later than the 30th calendar
day after the comptroller receives the request if the request is complete
in all respects. If the 30th calendar day is not a workday, the first
workday following the 30th calendar day is the deadline.
(B) The comptroller shall maintain a list of participating
credit unions. The comptroller shall periodically circulate the list
to all state agencies and furnish a copy of the list to a state agency
upon request.
(5) Effective date of certification. The first deduction
to a participating credit union may be made from salary or wages paid
on the first workday of the second month following the month in which
the comptroller certifies the credit union.
(6) Termination of certification.
(A) A participating credit union may terminate its
participation in the deduction program authorized by this section
only by terminating its certification.
(B) A participating credit union may terminate its
certification by providing written notice of termination to the comptroller.
However, the credit union may not provide that notice before the credit
union has provided written notice of termination to each state employee
from whose salary or wages a deduction to the credit union is occurring.
(C) A participating credit union's termination of its
certification is effective beginning with the salary or wages paid
on the first workday of the third month following the month in which
the comptroller receives the credit union's proper notice of termination.
(g) Payments of deducted amounts.
(1) Payments by the comptroller through electronic
funds transfers.
(A) If feasible, the comptroller shall pay deducted
amounts to a participating credit union by electronic funds transfer.
(B) If the comptroller pays deducted amounts to a participating
credit union by electronic funds transfer, the comptroller 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.
(2) Payments through warrants issued by the comptroller.
(A) If it is infeasible for the comptroller to pay
deducted amounts to a participating credit union by electronic funds
transfer, the comptroller shall:
(i) pay the amounts by warrant;
(ii) make the warrant payable to the credit union;
(iii) require the credit union to distribute the deducted
amounts to state employees' accounts according to subsection (h) of
this section; and
Cont'd... |
