SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Electronic Funds Transfer Federal 
Salary Act''.

SEC. 2. SAFE, ECONOMICAL, EFFECTIVE PAYROLL ADMINISTRATION.

    (a) In General.--Section 3332 of title 31, United States Code, is 
amended by striking subsections (a), (b), (c), (d), and (e) and 
inserting the following new subsections:
    ``(a) Financial Organization Defined.--For purposes of this 
section, the term `financial organization' means a depository 
institution (as defined in section 3(c) of the Federal Deposit 
Insurance Act), a Federal or State credit union (as defined in section 
101 of the Federal Credit Union Act), or a similar institution.
    ``(b) Electronic Funds Transfers of Payments of Employee Pay.--
            ``(1) Secretary authorized to require electronic 
        transfers.--Notwithstanding any other provision of law, the 
        Secretary of the Treasury (hereafter in this section referred 
        to as the `Secretary) may prescribe regulations requiring the 
        pay of any employee of any agency to be paid by electronic 
        funds transfer or any other method determined by the Secretary 
        to be in the interest of economy or effectiveness if the 
        Secretary--
                    ``(A) determines that such requirement is 
                practicable; and
                    ``(B) establishes and maintains sufficient 
                safeguards over the control of, and accounting for, 
                public funds in connection with any such transfer.
            ``(2) Designation of financial organization recipient.--Any 
        regulation prescribed under paragraph (1) shall require any 
        employee whose pay is subject to such regulation to designate 
        the financial organization to receive the payments of such pay.
            ``(3) Report of designation.--Any certification which is 
        made by the head of an agency with respect to the payment of 
        employee pay of an employee whose pay is subject to regulations 
        prescribed under paragraph (1) shall contain such information 
        about the financial organization designated by the employee 
        under paragraph (2) as the Secretary may require.
            ``(4) Transfer fees prohibited.--
                    ``(A) Secretary.--The Secretary may not charge any 
                financial organization any fee in connection with any 
                payment made in accordance with this section.
                    ``(B) Financial organization.--No financial 
                organization may charge any employee of an agency for 
                handling payments by the Secretary to the employee in a 
                manner authorized by the Secretary pursuant to this 
                subsection.
            ``(5) Exemption at request of employee.--The Secretary may, 
        at the request of any employee who was employed by the United 
        States Government on the date of the enactment of the 
        Electronic Funds Transfer Federal Salary Act and whose annual 
        rate of basic pay is less than $20,000, exempt such employee 
        from the requirements of this section.
            ``(6) National security exceptions.--
                    ``(A) In general.--No provision of this section 
                shall be construed as impairing or affecting any 
                provision of section 102(d)(3) of the National Security 
                Act of 1947 or section 6 of the Central Intelligence 
                Agency Act of 1949.
                    ``(B) Exemption of cia authorized.--The Director of 
                the Central Intelligence Agency, or a designee of the 
                Director, may exempt the Central Intelligence Agency 
                and any employee of such agency from regulations issued 
                pursuant to paragraph (1) and the requirements of 
                paragraph (3) if the Director or designee determines 
                that compliance with such regulations and requirements 
                would risk disclosure of intelligence sources and 
                methods or compromise the security of foreign 
                intelligence or counterintelligence activities.
    ``(c) Effect of Payment.--The acceptance by a financial 
organization of a payment of an amount by the United States in any 
manner authorized by the Secretary pursuant to subsection (b) or (d) 
shall constitute full acquittance of the United States for such amount.
    ``(d) Payment of Other Amounts by Electronic Fund Transfers.--The 
payment by the United States of any amount due any person for any 
purpose (other than pay payable to an employee of an agency) may be 
made in any manner authorized by the Secretary pursuant to this section 
upon receipt by the Secretary of a written request of such person for 
payment in such manner.''.
    (b) Technical and Conforming Amendments.--Section 3332 of title 31, 
United States Code, is amended--
            (1) by redesignating subsection (f) as subsection (e); and
            (2) by striking ``The'' in the 1st sentence of subsection 
        (e) (as so redesignated) and inserting ``Notwithstanding 
        subsection (b)(1), the''.
Electronic Funds Transfer Federal Salary Act - Amends Federal law to authorize the Secretary of the Treasury to prescribe regulations requiring Federal employees to be paid via direct deposit or any other economical and effective method provided there are sufficient safeguards.
Electronic Funds Transfer Federal Salary Act