Section 17.076(2), F.S., directs the Chief Financial Officer (CFO) to establish a program for the direct deposit of funds to the account of the beneficiary of such a payment or disbursement in any financial institution equipped for electronic fund ...

NOTICE OF PROPOSED RULE

 

DEPARTMENT OF FINANCIAL SERVICES

Division of Accounting and Auditing

RULE NOS.:RULE TITLES:

69I-22.002Definitions Applicable to Chapter 69I-22

69I-22.003Procedures

PURPOSE AND EFFECT: Section 17.076(2), F.S., directs the Chief Financial Officer (CFO) to establish a program for the direct deposit of funds to the account of the beneficiary of such a payment or disbursement in any financial institution equipped for electronic fund transfers, which institution is designated in writing by such beneficiary and has lawful authority to accept such deposits. Section 17.075(2), F.S., directs the CFO to adopt rules establishing accounting and recordkeeping procedures for all payments made by electronic transfer of funds. Section 17.29, F.S., authorizes the CFO to adopt rules regarding procedures or policies requiring that payments made by the state for goods, services, or anything of value be made by electronic means, including, electronic funds transfers.

SUMMARY: Rule 69I-22.002, F.A.C., is amended to update the definitions and to incorporate by reference the Employee Direct Deposit Authorization Form and the Retiree Direct Deposit Authorization Form. Rule 69I-22.003, F.A.C., is amended to update the procedures for participating in the direct deposit program. Rule 69I-22.003, F.A.C., is also amended to require all beneficiaries to provide the Department with either a copy of a valid driver’s license or a legible copy of a photographic identification issued by the United States or a foreign nation, a state or territory of the United States or foreign nation, or a political subdivision or agency thereof.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COST AND LEGISLATIVE RATIFICATION: The agency has determined that this rule will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the agency.

The agency has determined that the proposed rule is not expected to require legislative ratification based upon the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: The Department conducted an economic analysis of the potential impact of the proposed rule and determined that there will be no adverse economic impact or regulatory increases that would require legislative ratification.

Any person who wishes to provide information regarding the statement of estimated regulatory costs, or to provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 17.075(2), 17.14, 17.29 FS.

LAW IMPLEMENTED: 17.075(2), 17.076, 17.14, 17.29 FS.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW (IF NOT REQUESTED, THIS HEARING WILL NOT BE HELD):

DATE AND TIME: December 10, 2014, 1:30 p.m.

PLACE: Room B103, Fletcher Building, 101 E. Gaines Street, Tallahassee, FL

Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 5 days before the workshop/meeting by contacting Rachael Lieblick at [phone] or [e-mail]. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Rachael Lieblick, Assistant Director, Division of Accounting and Auditing, 200 E. Gaines Street, Tallahassee, FL 32399-0318, [phone] or [e-mail]

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

69I-22.002 Definitions Applicable to Chapter 69I-22.

(1) “NACHA” means the National Automated Clearing House Association which is the national trade association for electronic payments associations and establishes the rules, industry standards, and procedures governing the exchange of commercial automated clearing house payments by depository financial institutions. “ACH Rules.” The National Automated Clearing House Association publication entitled 1987 ACH Rules. The 1987 ACH Rules are hereby incorporated by reference and available for public inspection in the Section’s offices at 200 East Gaines Street, Tallahassee, Florida 32399-0354.

(2) “Account.” Account means the checking or savings account identified on the Direct Deposit Authorization Form, to which the beneficiary’s payments will be transmitted. An account must be at a participating financial institution.

(3) “Direct Deposit Authorization Form.” Authorization Form means the appropriate Direct Deposit Authorization Form (Form No. DFS-AA-26) or an approved substitute. Form DFS-AA-26 is hereby incorporated by reference and available from the Section.

(a) State employees shall use Form DFS-A1-26S, Employee Direct Deposit Authorization (Rev. 3/2014), which is hereby incorporated by reference and is available from the Department’s website at http://www.myfloridacfo.com/Division/AA/Forms/default.htm.

(b) Retirees shall use Form DFS-A1-26R, Retiree Direct Deposit Authorization (Rev. 3/2014), which is hereby incorporated by reference and is available from the Florida Retirement System’s online portal at www.myFRS.com or by calling [phone] or toll free 1(844)377-1888.

(4) “Beneficiary.” Beneficiary means:

(a) through (c) No change.

(5) “Department.” Department means the Department of Financial Services, which pursuant to Section 20.121, F.S., is headed by the Chief Financial Officer.

(6) “Participating Financial Institution.” Participating Financial Institution means a bank, national association, savings and loan association, mutual savings bank, or a credit union which is chartered by either any state or the federal government that has consented to be bound by the requirements of the NACHA Rules and authorized by the applicable federal reserve bank to receive commercial automated clearing house transactions and is thus eligible to receive State of Florida direct deposits by electronic funds transfer, and that has not been disqualified pursuant to subsection 69I-22.003(3), F.A.C. The NACHA  Rules can be found by accessing http://www.nacha.org.

(7) “Section.” Section means the Direct Deposit/EFT Section Administrator, Bureau of Vendor Relations Accounting, Division of Accounting and Auditing, Department of Financial Services.

(8) “Wages.” shall have the same meaning herein as is contained in Rule 69I-31.103, F.A.C.

Rulemaking Specific Authority 17.075(2), 17.076, 17.14, 17.29 FS. Law Implemented 17.075(2), 17.076, 17.14, 17.29 FS. History–New 7-30-87, Amended 5-12-97, Formerly 3A-22.002, Amended__________.

 

69I-22.003 Procedures.

(1) No change.

(2) In order to enroll for participation, a beneficiary must submit or cause to be submitted, a completed Direct Deposit Authorization Form to the Section following the instructions on the form., Form No. DFS AA-26, (revised 8/00) or a substitute form acceptable to the Section and approved by the Department prior to its use. To be acceptable to the Section and the Department, substitute forms must contain, at a minimum, the following:

(a) For prompt authorization, state employees may submit their direct deposit request through People First at https://peoplefirst.myflorida.com and accessing the Employee Information tab, selecting Personal Information, and finally Direct Deposit. The information required on Form No. DFS-AA-26S;

(b) For prompt authorization, retirees may submit their direct deposit request through the Florida Retirement System’s online portal at www.myFRS.com. For assistance with the online portal, contact the Division of Retirement at 1(844)377-1888 or [phone]. Substantially the same agreement terms printed on Form No. DFS-AA-26S with respect to the beneficiary and the receiving financial institution;

(c) Substitute forms must be factually correct and must not contain any misleading information; and

(d) Substitute forms must be printed on 8 1/2''  11'' paper, and must contain a blank one inch space that runs parallel with the 8 1/2'' side and begins 2 3/4'' from that side. This space will be used for the imprinting of the document control number and must be on the same side of the form as the information supplied by the beneficiary and the participating institution. After the Section has received and processed a completed Direct Deposit Authorization Form, all retirement benefits and wage payments made to a participating beneficiary will be made by Direct Deposit, unless a beneficiary is disqualified pursuant to subsection 69I-22.003(4), F.A.C.

(3) All beneficiaries filing a Direct Deposit Authorization Form for salary or retirement benefits shall provide the Department with the following information. The Department shall disqualify a Participating Financial Institution from receiving State of Florida Direct Deposit transactions when the institution materially fails to comply with any ACH Rule, and such lack of compliance results in the failure of a transaction, which failure adversely affects the credibility of the electronic funds transfer program.

(a) All salary and retirement beneficiaries shall provide the Department with a copy of a valid driver’s license of the beneficiary at the time the original Direct Deposit Autorization Form is filed.

(b) If the beneficiary had not been issued a valid driver’s license at the time the original Direct Deposit Authorization Form is filed, the Department shall be provided with a legible copy of a photographic identification of the beneficiary issued by the United States or a foreign nation, a state or territory of the United States or foreign nation, or a political subdivision or agency thereof.

(4) No change.

(a) through (b) No change.

(c) An employee has been on leave without pay resulting in overpayment of salary for three pay periods out of the previous six pay periods.

The disqualified employee shall be paid by warrant for wages and retirement benefits, if any, until he or she again becomes eligible to participate. The employee shall regain his or her eligibility if he or she has not been on unauthorized leave without pay for a period of six continuous months. The employee must then complete a new Direct Deposit Authorization Form if he or she desires to participate and must attach to such Form a written statement from his or her agency that he or she has regained his or her eligibility to participate.

(5) A beneficiary’s participation in direct deposit may be voluntarily terminated upon submission of a new Direct Deposit Authorization Form requesting the “stop” action, upon submission of a written request to stop, or upon submission of a new Direct Deposit Authorization Form requesting “change” action for account number or participating financial institution pursuant to subsection 69I-22.003(6), F.A.C. Participation shall be involuntarily terminated upon the beneficiary becoming disqualified pursuant to subsection 69I-22.003(4), F.A.C. or upon the beneficiary not receiving a payment by direct deposit for a continuous period of six (6) 12 months. A new Direct Deposit Authorization Form will be required to be submitted in order to initiate participation after a voluntary or involuntary termination.

(6) A participating beneficiary must notify the Section of a change in account number or a change in participating financial institution by submission of a new Direct Deposit Authorization Form requesting the “change” action. The Section shall should also be notified by a participating beneficiary of a change in his or her social security number, or a change in his or her name. This notification must be accomplished by submission of a written request to change by the agency authorizing payment to the beneficiary. A request for change in account number or change in participating financial institution will result in a “stop” action being placed on the Direct Deposit Authorization Form which was then in effect. Generally, the new Authorization Form will not be effective for 45 days. In the interim, requests for payments to the beneficiary will be made by warrants.

(7) In the event a direct deposit by electronic funds transfer results in an improper payment to a beneficiary or other person, the Section should be notified immediately by the employing agency if the beneficiary is receiving wages, or the Division of Retirement Section of Administration if the beneficiary is receiving retirement benefits or both, as applicable. The Section will attempt to recover such improper payment but in the event recovery by the Section Department is not possible, the agency that authorized payment to the beneficiary will be notified that it shall pursue collection pursuant to Chapter 69I-21 or Rule 69I-31.309, F.A.C., as appropriate.

(8) In the event a participating beneficiary fails to receive a proper payment by direct deposit, ultimate payment to the participating beneficiary shall be coordinated by the Section. Revolving fund payment by the agency to the beneficiary shall may only be made with the specific approval of the Section in each instance.

(9) The Section will attempt to make available an adequate supply of authorization forms at all times to any agency for use by its Beneficiaries. Any Beneficiary or agency that would like additional authorization forms should contact:

EFT Section Administrator

Department of Financial Services

200 East Gaines Street

Tallahassee, Florida 32399-0354

[phone]

SUNCOM 210-9466

E. Mail: [e-mail]

Rulemaking Specific Authority 17.075(2), 17.14, 17.29 FS. Law Implemented 17.075(2), 17.076, 17.14, 17.29 FS. History–New 7-30-87, Amended 11-14-00, Formerly 3A-22.003, Amended__________.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Rachael Lieblick, Assistant Director

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Jeff Atwater, Chief Financial Officer

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: November 13, 2014

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: October 6, 2014

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