| (a) Applicability. These rules govern EFT payments
by the comptroller on behalf of custodial and paying state agencies
as part of the electronic funds transfer system authorized by Government
Code, §403.016.
(b) Definitions. The following words and terms, when
used in this subchapter, have the following meanings, unless the context
clearly indicates otherwise.
(1) Automated clearing house (ACH)--A central distribution
and settlement point for the electronic clearing of debits and credits
between financial institutions subject to regulation under rules of
an automated clearing house association and applicable regulatory
law.
(2) ACH rules--The operating rules and guidelines governing
the ACH network published by NACHA, the Electronic Payments Association
and applicable federal regulatory law.
(3) Comptroller--The Comptroller of Public Accounts
for the State of Texas.
(4) Credit entry--A type of EFT entry that the comptroller
initiates on behalf of a paying state agency to credit a state payee's
EFTS account at a domestic financial institution.
(5) Custodial state agency--A state agency that establishes
and maintains the state payee's account information. The custodial
state agency may or may not be the paying state agency.
(6) Direct deposit--A form of EFT payment using ACH
for the electronic transfer of funds directly into a state payee EFTS
account at a domestic financial institution.
(7) Electronic funds transfer (EFT)--A transfer of
funds which is initiated by the comptroller as originator to the originating
depository financial institution to order, instruct, or authorize
a receiving depository financial institution to perform a credit entry,
reversal, or reclamation in accordance with this subchapter. For purposes
of these rules, an EFT does not include a transaction originated by
wire transfer, check, draft, warrant, or other paper instrument.
(8) EFTS authorization--A state payee's agreement to
allow the comptroller to originate state-issued payments by EFT on
behalf of a paying state agency to a state payee EFTS account. A state
payee may provide EFTS authorization and notice under Government Code, §403.016
by:
(A) submitting an EFTS authorization with a state payee's
agreement on a comptroller approved form; or
(B) providing an agreement to a custodial state agency
or a paying state agency in a manner deemed appropriate by that agency
and the comptroller, and as required by law and NACHA rules.
(9) EFTS form--An electronic or paper form submitted
by a state payee as part of the EFTS. An EFTS form used by a custodial
state agency or paying state agency is subject to comptroller approval.
(10) Electronic funds transfer system (EFTS)--A system
authorized by Government Code, §403.016, that is administered
by the comptroller in accordance with these rules to make EFT payments
to state payees on behalf of a paying state agency.
(11) Financial institution--A state or national bank,
a state or federal savings and loan association, a mutual savings
bank, or a state or federal credit union that complies with NACHA
rules and may be an originating depository financial institution or
a receiving depository financial institution.
(12) International ACH transaction (IAT)--An ACH entry
involving a financial agency (as defined by NACHA rules) that is not
located in the territorial jurisdiction of the United States. An international
ACH transaction may be referred to as an IAT entry or IAT.
(13) May not--A prohibition. The term does not mean
"might not" or its equivalents.
(14) NACHA--The National Automated Clearing House Association
is the electronic payments association that establishes standards,
rules and procedures that enable domestic financial institutions to
exchange payments electronically.
(15) Notification of change (NOC)--Information sent
by a financial institution through the ACH network to notify the comptroller
that previously valid information for a state payee has become outdated
or that information contained in a prenotification is erroneous.
(16) Originating depository financial institution--A
financial institution that originates ACH entries on behalf of the
comptroller and transmits ACH entries through the ACH network in accordance
with NACHA rules.
(17) Originator--The comptroller acts as the originator
and authorizes an originating depository financial institution to
transmit, on behalf of the state, a credit entry, reclamation, reversal,
or prenotification entry to a state payee EFTS account at a domestic
financial institution.
(18) Pay card--A payment card issued to a state employee
or annuitant that provides access to payroll, travel reimbursement,
or retirement payments deposited to a designated account at a domestic
financial institution as part of the EFTS through the comptroller's
pay card contract.
(19) Paying state agency--A state agency for which
the comptroller initiates payment. The term includes the comptroller
of public accounts. A paying state agency may or may not be the custodial
state agency.
(20) Prenotification--A non-dollar entry sent by the
comptroller through the ACH network to alert a receiving depository
financial institution that a live dollar credit entry will be forthcoming
and to request verification of the state payee's EFTS account information.
(21) Receiving depository financial institution--A
financial institution that receives ACH entries to a state payee EFTS
account.
(22) Reclamation--A request made by the comptroller
in compliance with NACHA rules, to an originating depository financial
institution to reclaim from a receiving depository financial institution
any amounts received by a state payee after the state payee's death
or legal incapacity, or the death of a beneficiary of a state payee.
(23) Regulation E--The regulations adopted by the Bureau
of Consumer Financial Protection at 12 C.F.R. Part 1005, as they may
be amended, to implement the Electronic Fund Transfer Act (15 U.S.C. §1693 et seq. ).
(24) Reversal--An EFT entry initiated by the comptroller
at the request of a paying state agency to correct an erroneous credit
entry previously transmitted to a state payee EFTS account. The comptroller
may initiate a reversal of an EFT payment of state employee payroll
or retirement in compliance with NACHA rules.
(25) State agency--
(A) a department, commission, board, office, or other
agency in the executive or legislative branch of state government
that is created by the constitution or a statute of this state, including
the comptroller of public accounts;
(B) the supreme court of Texas, the court of criminal
appeals, a court of appeals, or a state judicial agency; or
(C) a university system or an institution of higher
education as defined by Education Code, §61.003 other than a
public junior college.
(26) State payee--A person to whom a state payment
is issued, including an individual, state employee, annuitant, business,
vendor, governmental entity, or other legal recipient paid by the
State of Texas.
(27) State payee EFTS account--An account at a domestic
financial institution designated by a state payee for EFTS payments.
(28) Warrant--A state payment in the form of a paper
instrument which is subject to applicable state law, is drawn on the
State of Texas treasury funds, and is payable to a state payee on
behalf of a paying state agency by the comptroller or by a state agency
with delegated authority to issue warrants under Government Code, §403.060.
A warrant is not an approved means of electronic funds transfer as
set out in subsection (c) of this section.
(29) Wire transfer--An unconditional order to a financial
institution to pay a fixed or determinable amount of money to a state
payee upon receipt or on a day stated in the order that is transmitted
by electronic or other means. Wire transfer is not an approved means
of electronic fund transfer, as set out in subsection (c) of this
section.
(c) Approved types of EFTS payments.
(1) The comptroller will approve the types of EFTS
payments the state may use by rule and amend the approval based upon
the comptroller's procedures and current technology.
(2) EFTS payment types approved by the comptroller
to a state payee EFTS account include:
(A) direct deposit, except an IAT; and
(B) pay card.
(3) Any other type of payment which is not an approved
type of EFTS payment under paragraph (2) of this subsection is not
considered to be an approved type of EFTS payment under these rules.
Warrants, wire transfers, and IAT are not approved types of EFTS payments.
Cont'd... |
