HOUSE BILL No. 5778


     May 11, 2000, Introduced by Reps. Howell and Pappageorge and referred to the Committee on Insurance and Financial
Services.


        A bill to amend 1991 PA 190, entitled

   "An act to provide for the direct deposit of state employee pay-
   rolls, state university payments, and state retirement benefit
   payments into financial institutions; to allow any financial
   institution to participate in a state employee payroll deduction
   program; and to prescribe the powers and duties of certain state
   agencies and officials,"

   by amending sections 2 and 3 (MCL 487.2102 and 487.2103).

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           Sec. 2.  (1)  Within 12 months after the effective date of

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      this act or January 1, 1993, whichever is later, the department

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      and the  THE bureau of retirement systems in the department of

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      management and budget shall enroll  active state employees and 

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      recipients of a state retirement benefit who elect enrollment in

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      a distribution system that directs the entire net amount of the

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       biweekly payroll or  monthly retirement benefit to be directly

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      deposited by the department into  not more than 1 account  1 OR



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      MORE ACCOUNTS maintained by the  employee or  recipient of a

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      state retirement benefit with a financial institution.

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           (2) Within 12 months after the effective date of this act or

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      January 1, 1993, whichever is later, the  THE department shall

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       establish  MAINTAIN a distribution system by which all state

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      college and university monthly state payments will be made by

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      electronic  fund  FUNDS transfer on the next business day follow-

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      ing the fifteenth of the month during a month a payment is sched-

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      uled to be made.

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           (3) THE DEPARTMENT SHALL ENROLL ACTIVE STATE EMPLOYEES WHO

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      ELECT ENROLLMENT IN A DISTRIBUTION SYSTEM THAT DIRECTLY DEPOSITS

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      THEIR NET PAYROLL AMOUNT INTO 1 OR MORE ACCOUNTS AT 1 OR MORE

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      FINANCIAL INSTITUTIONS.

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           Sec. 3.  Within 12 months after the effective date of this

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      act or January 1, 1993, whichever is later, the  THE department

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      and the department of management and budget shall establish cri-

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      teria and the distribution system by which a financial institu-

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      tion may participate in a state payroll deduction program.





















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