BILL NUMBER: S2328

SPONSOR: KAVANAGH
 
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: Section 1 of the bill amends subdivision 4 of section 200 of
the State Finance Law to establish that employees may opt out of receiv-
ing paper pay stubs and receive electronic versions instead. It further
amends subdivision 4 to require the Comptroller to offer electronic pay
stubs and to promulgate rules and regulations to administer the elec-
              

tronic continuation of direct deposits.

Section 2: Section 2 of the bill sets forth the 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 in 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 electron-
ically. 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.

 
FISCAL IMPLICATIONS:

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

 
FISCAL IMPACT ON LOCALITIES:

None.

 
IMPACT ON REGULATION OF BUSINESSES AND INDIVIDUALS:

None.

 
IMPACT ON PINES. IMPRISONMENT, FORFEITURE OF RIGHTS, OR OTHER PENAL
SANCTIONS:

None.

 
LEGISLATIVE HISTORY:

2018: S7145/A9690 - REFERRED TO FINANCE/ referred to ways and means
2017: A8602 - stricken
2016: A5876 - referred to ways and means
2015: A5876 - referred to ways and means

 
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.