| (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, then 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 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) A state agency shall notify a participating credit union about the agency's
cancellation of a payment of salary or wages to a state employee. The notification must be by facsimile and must be provided not later than the day the agency processes the cancellation. This subparagraph applies only if: (i) the payment is canceled after the agency 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 a state agency notifies a credit union that the agency 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, then 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, then the
state agency 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 a state agency notifies a credit union that the agency 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, then 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 (ii) the amount of funds in the account is insufficient for withdrawal of the full amount. (E) A credit union that receives notification under subparagraph (A) of this paragraph that a state agency has canceled a payment of salary or wages to a state employee shall promptly notify the agency about whether the employee's deducted amounts have been distributed to the
employee's account. If the distribution has occurred, the credit union shall also notify the agency about whether the amounts have been withdrawn from the employee's account under subparagraph (D) of this paragraph. The credit union's notification to the agency must be by facsimile. (2) Authorization of refunds. The payment of a state employee's deducted amounts to a participating credit union shall be refunded to the employee's employer only if: (A) they exceed the amount that should have been paid to the credit union, and they have not been distributed to the employee's account at the credit union; or (B) they have been withdrawn from the employee's account at the credit union according to paragraph (1)(D) of this subsection. (3) Method for accomplishing refunds. If a refund from a participating credit union is required by paragraph (1)(C) or (2) of this subsection, then
the refund shall be accomplished by: (A) the employer of the state employee whose deducted amounts are being refunded subtracting the amount of the refund from a subsequent payment of deducted amounts to the credit union; or (B) the credit union issuing a check to the employer in the amount of the refund, if authorized by paragraph (4) of this subsection. (4) Paying refunds by check. A participating credit union may issue a check to an employer only if it submits to the credit union a written request for the refund to be made by check. (5) Deadline for paying refunds by check. If a participating credit union is authorized by paragraph (4) of this subsection to make a refund to an employer by check, then the credit union shall ensure that the employer receives the check not later than the 30th calendar day after the date on which the credit union receives the agency's written request for the refund. If
the 30th calendar day is not a workday, then the first workday following the 30th calendar day is the deadline. (k) Responsibilities of participating credit unions. (1) Notification to the comptroller. A participating credit union shall notify the comptroller in writing immediately after a change occurs to: (A) the credit union's 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, facsimile telephone number, or mailing address of the credit union's primary contact; or (E) the credit union's routing number or bank account number. (2) Primary contact. The individual that a credit union designates as its primary contact must represent the credit union for
the purposes of: (A) communicating with the comptroller, including receiving and responding to correspondence from the comptroller; (B) disseminating information, including information about the requirements of this section, to representatives of the credit union; and (C) communicating with state agencies about payment reconciliation and refunds. (3) Payment reconciliation and discrepancies. (A) A participating credit union shall reconcile the detail report provided by a state agency under subsection (l) of this section with the deducted amounts paid to the credit union on behalf of or by the agency under subsection (g) of this section. (B) A participating credit union shall report all discrepancies between a detail report provided by a state agency and the actual amount of deductions received from or on behalf of the agency. The credit union shall provide its report
to the state agency that submitted or on whose behalf the comptroller submitted the detail report. The credit union must ensure that its report is received not later than the 60th calendar day after the day on which the detail report was mailed, hand delivered, or released, whichever applies. If the 60th calendar day is not a workday, then the first workday following the 60th calendar day is the deadline. (4) Return of magnetic tapes and cartridges. A participating credit union shall return a magnetic tape or cartridge to a state agency not later than the 30th calendar day after the credit union received the tape or cartridge from the agency. If the 30th calendar day is not a workday, then the first workday following the 30th calendar day is the deadline. (5) Submission of detail reports. A participating credit union that wants a monthly or additional detail report to be submitted to an entity other than the credit union must notify the
comptroller in writing. A state agency is not required to submit the report to the entity before the agency has received notification from the comptroller that the report must be submitted to the entity. (l) Responsibilities of state agencies. (1) Authorization forms. A state agency: (A) may accept an authorization form only if it complies with this section; and (B) is not required to accept an authorization form that contains an obvious alteration without the state employee's written consent to the alteration. (2) Monthly detail reports to participating credit unions. (A) A state agency shall submit a monthly detail report to each participating credit union that received or should have received a payment of amounts deducted from the salary or wages of at least one of the agency's state employees. If the participating credit union has notified the
comptroller in writing that the monthly detail reports should be submitted to an entity other than the credit union, then the reports shall be submitted to that entity. Cont'd... |
