STATE PAYROLL: DIRECT DEPOSIT - H.B. 5778 (S-1): FLOOR ANALYSIS
House Bill 5778 (Substitute S-1 as reported)
Sponsor: Representative Jim Howell
House Committee: Insurance and Financial Services
Senate Committee: Banking and Financial Institutions
CONTENT
The bill would amend Public Act 190 of 1991, which regulates the direct deposit of State employee payroll, State university payments, and State retirement benefits into financial institutions, to allow active State employees and recipients of State retirement benefits to elect to have the State directly deposit payments into one or more accounts at one or more financial institutions.
Currently, the Act requires the Department of Treasury and the Bureau of Retirement Systems in the Department of Management and Budget to enroll active State employees, and recipients of State retirement benefits, respectively, who elect enrollment in a system that directly deposits their payroll or retirement benefits into not more than one account at a financial institution. The bill would require the Department of Treasury and the Bureau of Retirement Systems to enroll active State employees and recipients of State retirement benefits who elected direct deposit of their net payroll amount or retirement benefits into one or more accounts at one or more financial institutions.
The Act allows the Department of Treasury to charge a participating employee, university, or retirement recipient a fee not greater than the actual costs of administering the direct deposit program or 25 cents (whichever is less) for each transaction and prenotification. The bill would prohibit the Department from charging or imposing any fee on a participating State employee, State college or university, or State retirement recipient. Currently, the Department may charge the fee to a participating financial institution. The bill would retain this provision.
MCL 487.2102 et al. - Legislative Analyst: G. Towne
FISCAL IMPACT
The bill would have no fiscal impact on State or local government.
Date Completed: 12-11-00 - Fiscal Analyst: J. RunnelsFloor\hb5778 - Bill Analysis @ http://www.state.mi.us/sfa
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.