NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7436A
SPONSOR: Abbate TITLE OF BILL:
An act to amend the state finance law, in relation to the direct deposit
of certain salaries
PURPOSE:
To require the payment of salaries by direct deposit for state employees
hired after January 1, 2023.
SUMMARY OF PROVISIONS:
Section 1 of this bill amends Paragraph a of Subdivision 4 of Section
200 of the State Finance Law to provide that a state employee hired on
or after January 1, 2023 shall be paid by direct deposit.
Section 2 of this bill provides for an effective date of January 1,
2023.
JUSTIFICATION:
As of May 1, 2011, the United States Department of the Treasury requires
recipients of federal nontax payments, including social security
payments, to receive payment by electronic funds transfer (EFT) collo-
quially referred to as "direct deposit". Additionally, many states
already require the direct deposit of salaries.
Because of the financial advantages and added convenience, almost 86
percent of New York State employees currently use direct deposit.
However, in recognition of the fact that there may be persons who may
not have access to a bank account, this legislation authorizes an
employee to file a request for an exemption from the requirement to be
paid by direct deposit in accordance with rules and regulations promul-
gated by the Comptroller.
The State Comptroller urges the passage of this proposed legislation.
PRIOR LEGISLATIVE HISTORY:
S.5447-A/A.7893-A of 2019-20 Referred to Senate Finance and Assembly
Governmental Employees
S.4928-A/A.5526-A of 2016
FISCAL IMPLICATION:
This bill would result in financial savings to New York State.
EFFECTIVE DATE:
This act shall take effect on January 1, 2023 and shall only apply to
state employees hired on and after such date.
