34 Tex. Admin. Code § 5.14 - Participation in the Electronic Funds Transfer System
(a) State payee participation in electronic
funds transfer system.
(1) Payee disclosure
of state payee EFTS account information. The state payee must establish,
change, or cancel state payee EFTS account information by providing EFTS
authorization to a custodial state agency.
(2) EFTS forms. The state payee must obtain
EFTS forms from the payee's paying state agency.
(3) State payee may elect to authorize
payment by EFT. A state payee may choose to receive payment by EFT by providing
EFTS authorization. A state payee's choice not to provide EFTS authorization
constitutes notice to the comptroller to receive payment by warrant as provided
in Government Code, §
403.016(h)(1).
(4) Payment destination confirmation. At the
time of electing to participate in the EFTS, a state payee must confirm whether
payments they receive will be forwarded to a financial institution outside of
the United States. A state payee must also notify the paying state agency of
any change to the intended final destination of a payment or payments outside
of the United States.
(5) Refusal
to accept an EFT payment. A state payee may refuse to accept an EFTS payment in
accordance with NACHA rules.
(6)
Refusal of reversal. The state payee may not instruct their financial
institution to reject a reversal made by the comptroller to correct an
erroneous credit entry.
(7)
Cancellation of state payee EFTS authorization. The cancellation of a state
payee's EFTS authorization terminates the state payee's participation in the
ETFS until the state payee provides a new EFTS authorization.
(8) Comptroller may issue warrant. The
comptroller may issue a payment to a state payee by warrant in lieu of EFT
pursuant to applicable law, including Government Code, §
403.016(i).
(b) Number of EFTS accounts. The
comptroller may limit the number EFTS accounts that a state payee may designate
for payment by EFTS, subject to the comptroller's policy and
procedure.
(c) EFTS authorization.
(1) The state payee must provide EFTS
authorization to establish, change, or cancel instructions for EFT payments by
providing account information by:
(A)
submitting an EFT authorization with a state payee's agreement on a comptroller
approved form; or
(B) providing an
agreement to a custodial state agency or a paying state agency in a manner
deemed appropriate by that agency and the comptroller, and as required by law
and NACHA rules.
(2)
Upon receipt of an EFTS authorization, the comptroller will issue a warrant to
a state payee during the time when prenotification is used to verify the
account information is correct.
(3)
A state payee may request to bypass prenotification by certifying to the
custodial state agency that:
(A) the state
payee requests to bypass prenotification;
(B) the state payee has verified the account
information with the financial institution; and
(C) the state payee is solely responsible for
the consequences of providing erroneous account information that may result in
rejection, delay, or loss of an EFTS payment.
(4) The custodial state agency must provide
written notification to the comptroller that the state payee has requested to
bypass prenotification for EFT payments under paragraph (3) of this
subsection.
(5) If the state
payee's financial institution rejects the state payee's account information,
neither the comptroller, the custodial state agency, or the paying state agency
is liable for the consequences of the rejection.
(6) If the comptroller receives an EFTS
authorization or other notification to cancel a state payee's account
information, the state payee's participation in the EFTS terminates until the
custodial state agency or the comptroller receives a new EFTS authorization
from the state payee.
(7) To
facilitate proper EFT payments in accordance with NACHA rules or other
regulations, the comptroller may change or cancel a state payee's account
information without prior notice to the state payee.
(8) The comptroller or custodial state agency
may cancel a state payee's account information without prior notice to the
state payee.
(d) Credit
of EFTS payments.
(1) A payment is credited
to a state payee EFTS account on the effective date of the credit entry
regardless of when the receiving depository financial institution posts the
credit.
(2) If payment is rejected
or posted late by the receiving depository financial institution, the
comptroller, a paying state agency, or a custodial state agency are not liable
for any additional late payment interest, including under Government Code,
Chapter 2251, or late fees or charges, including those that may be imposed by
the state payee or receiving depository financial institution.
(e) EFTS initiation of reversals
and reclamations.
(1) Only a paying state
agency may request that the comptroller initiate a reversal or
reclamation.
(2) A paying state
agency must request a reversal or reclamation through the comptroller in the
comptroller's prescribed manner.
(3) A paying state agency shall not initiate
a reversal for an EFTS payment initiated by the comptroller on behalf of the
paying state agency.
(4) A paying
state agency shall not initiate a reclamation entry for an EFTS payment
initiated by the comptroller on behalf of the paying state agency.
(5) The comptroller may initiate a reversal
for a state payroll or retirement payment or a reclamation for a retirement or
benefit payment only in compliance with NACHA rules.
(6) Failure to make funds available by a
state payee or state payee's beneficiary for a reversal or reclamation entry
initiated by the comptroller results in a debt under Government Code, §
403.055.
(f) Reversal.
(1) Notice to comptroller. A paying state
agency must submit to the comptroller a request for a reversal no later than
five banking days after the effective date of the erroneous credit entry in
accordance with comptroller procedures and NACHA rules.
(2) A receiving depository financial
institution:
(A) may only accept a reversal
entry from the comptroller for an erroneous credit entry initiated by the
comptroller on behalf of a paying state agency; and
(B) in accordance with NACHA rules, shall not
act upon instructions from the state payee to reject a reversal
entry.
(3) Notice to
state payee. A paying state agency must notify a state payee of a reversal
entry no later than the effective date of the reversal in accordance with NACHA
rules.
(4) Unsuccessful reversal
entry.
(A) If the RFDI does not honor the
comptroller's reversal entry, the state payee must reimburse the erroneous
credit entry amount to the paying state agency.
(B) If the state payee fails to reimburse the
paying state agency for the erroneous credit entry amount, the state payee will
owe the amount of the erroneous credit entry as a debt to the state under
Government Code, §
403.055.
(C) A paying state agency shall report to the
comptroller any state payee who fails to reimburse the paying state agency for
any erroneous credit entry amounts, as required by Government Code, §
403.055(f) and
(g).
(g) Reclamation.
(1) A paying state agency must submit EFTS
reclamation requests to the comptroller for processing within five business
days of notification of the death or legal incapacity of the state payee or
beneficiary of the state payee.
(2)
The comptroller may initiate a reclamation request on behalf of the paying
state agency to reclaim any amounts transmitted to the state payee's account
after the state payee's death or legal incapacity, or the death of a
beneficiary of the state payee.
(3)
The comptroller must provide prior approval to allow a paying state agency to
initiate a reclamation entry for a credit entry which the comptroller initiated
on behalf of a paying state agency.
(4) In accordance with NACHA rules, if the
reclamation request is returned by the receiving depository financial
institution, the comptroller may submit a written demand for payment of the
reclamation request within fifteen days on behalf of the paying state
agency.
(5) Unsuccessful
reclamation entry.
(A) If the RFDI does not
honor the comptroller's reclamation entry, the state payee or the state payee's
beneficiary must reimburse the reclamation entry amount to the paying state
agency.
(B) If the state payee or
the state payee's beneficiary fails to reimburse the paying state agency for
the reclamation entry amount, the state payee or the state payee's beneficiary
will owe the reclamation entry amount as a debt to the state under Government
Code, §
403.055.
(C) A paying state agency shall report to the
comptroller any state payee or state payee's beneficiary who fails to reimburse
the paying state agency for any reclamation entry amounts, as required by
Government Code, §
403.055(f) and
(g).
Notes
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