BILL NUMBER:S828

TITLE OF BILL:
An act
to amend the state finance law, in relation to providing the option to
employees of electronic confirmation of direct deposit in lieu of paper
pay stubs

PURPOSE:
This bill requires the State Comptroller to offer any
employee who receives a salary through direct deposit the option to
opt out of receiving a paper pay stub and instead receive the
information that would be included in the pay stub electronically.

SUMMARY OF PROVISIONS:
Section 1: Amends subdivision 4 of section 200 of the State Finance
Law is re-lettered paragraph (e) and two new paragraphs ¸ and (d)
are added:

c) Any employee who requests to have their salary deposited directly
in a bank pursuant to this section, may opt out of receiving a paper
pay stub and may instead receive electronic confirmation that the
direct deposit transfer has gone through.

(d) The comptroller is hereby authorized to promulgate reasonable
rules and regulations, as may be necessary to administer the
              

electronic confirmation of direct deposits of employees' salaries
established in paragraph (c) of this subdivision. The comptroller
shall provide notice of the electronic confirmation system in each
employee's paper pay stub.

Section 2: Effective date.

JUSTIFICATION:
By allowing employees to have paychecks directly
deposited into their bank accounts, New York State has reduced the
environmental and economic costs of its payroll administration.
unfortunately, all employees even those enrolled ill the Direct
Deposit program-still receive printed copies of their pay stubs by
mail. This legislation would require the state to give employees the
option of receiving their pay stub electronically. In addition to the
environmental benefits resulting from the reduced use of paper.
electronic pay stubs ensure on-time delivery of payroll information
and save resources by eliminating printing, postage and
administrative costs.
Currently, Minnesota, Florida, Kentucky and South Dakota all have
similar programs in place. Under this legislation, employees who
prefer printed pay stubs will retain the option to receive a paper
copy.

LEGISLATIVE HISTORY:
Previously introduced.

FISCAL IMPACT ON THE STATE:


New York State is likely to save a
significant but undetermined amount due to reduced printing and
mailing costs.

EFFECTIVE DATE:
This act shall take effect on the one hundred
eightieth day after it shall have become a law. Effective immediately
the comptroller is authorized to promulgate any rules and regulations
and take any other measures necessary to implement this act on its
effective date.