What's happening
This bill requires direct deposit of salaries for New York state employees hired on or after January 1, 2022, with an option to request exemption.
Why it matters
Streamlines payroll operations by making direct deposit the default for new state employees, which can reduce administrative costs, check processing errors, and delays in payment.
Encourages broader financial inclusion and banking participation by requiring employees to have a bank account for salary deposits, potentially impacting those without existing bank relationships.
Includes an option for employees to request exemption, balancing efficiency with individual circumstances (such as personal, financial, or technological barriers to opening bank accounts).
Signals a shift in government employment policy toward modern banking practices, possibly setting a precedent for other public or private sector employers.
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Who cares
Headline styles
Direct Deposit for State Workers
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Print number 5447a
- Amend and recommit to finance
- Referred to finance
- Referred to finance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Require Direct Deposit for Employees
In Assembly Committee · Governmental Employees · Sponsor Peter Abbate
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5447--A
2019-2020 Regular Sessions
IN SENATE
May 1, 2019
Introduced by Sen. GOUNARDES -- (at request of the State Comptroller) -read twice and ordered printed, and when printed to be committed to the Committee on Finance -- recommitted to the Committee on Finance in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the state finance law, in relation to the direct deposit of certain salaries
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (a) of subdivision 4 of section 200 of the state finance law, as amended by chapter 641 of the laws of 1997, is amended to read as follows:
(a) (i) Upon the written request from a state employee hired on or before January first, two thousand twenty-two, the comptroller may cause, in accordance with the rules and regulations promulgated pursuant to paragraph (b) of this subdivision, such employee's net salary, or any portion thereof designated by the employee, to be deposited directly in a bank for any purpose to an account in the name of such employee, on forms provided by the comptroller, and duly filed in accordance with such regulations.
(ii) On and after January first, two thousand twenty-two, the comptroller shall cause, in accordance with the rules and regulations promulgated pursuant to paragraph (b) of this subdivision, a state employee's net salary to be deposited directly in a bank for any purpose to an account in the name of such employee, on forms provided by the comptroller, and duly filed in accordance with such regulations. Provided, however, such employee may submit a request for exemption from the provisions of this subparagraph on a form provided by the comptroller.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08967-03-9
S. 5447--A 2
§ 2. This act shall take effect January 1, 2022 and shall only apply to state employees hired on and after such date; provided, however, effective immediately the state comptroller is hereby authorized to promulgate any rule or regulation necessary for the implementation of this act on its effective date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the state finance law, in relation to the direct deposit of certain salaries
Purpose or general idea of bill
To require the payment of salaries by direct deposit for state employees hired after January 1, 2022.
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, 2022 shall be paid by direct deposit.
Section 2 of this bill provides for an effective date of January 1, 2022.
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 State Comptroller. The State Comptroller urges the passage of this proposed legislation.
Prior legislative history
2019: S5447 Died in Finance
2017-2018: S4760A Died in Finance
2015-2016: S4928 Died in Finance
Fiscal implications
This bill would result in financial savings to New York State.
Effective date
This act shall take effect on January 1, 2022 and shall only apply to state employees hired on and after such date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.