New York Codes, Rules and Regulations › Title 2 - DEPARTMENT OF AUDIT AND CONTROL › Chapter IV - Miscellaneous Rules › Part 102 - Recurring Wages And Salary Payments Through Financial Institutions By The Automated Clearing-house Method › Section 102.3 - Definitions

Current through Register Vol. 46, No. 28, July 10, 2024
As used in this Part, unless the context otherwise
				  requires:
(a) Originating depository
				financial institution means any financial organization which has entered into a
				direct deposit agreement with the State to provide for direct deposit of
				recurring wages and salary payments by transmitting electronic data to the
				Federal Reserve Bank.
(b) Financial
				institution means any bank, savings bank, savings and loan association or
				similar institution, or Federal- or State-chartered credit union, which has
				been designated by the recipient of the recurring wages and salary payment and
				which has affirmatively indicated to the State its preparedness to receive
				payment instructions as defined in subdivision (e) of this section and which
				has certified to the State Comptroller that it is ACH capable except for any
				such entity whose participation has been terminated by the State Comptroller
				pursuant to section
				102.6(h) 
				of this Part.
(c) State means the
				State of New York.
(d) Payment
				means a sum of money which is transferred to a recipient in satisfaction of an
				obligation for wages and salary.
(e) Payment instruction means an order issued
				by the State under this Part to pay a recurring wages and salary payment. A
				payment instruction may be contained on any form of communication other than
				voice, which is registered upon magnetic tape, disc or any other medium
				designed to capture and contain in durable form conventional signals used for
				the electronic communication of messages.
(f) Payment date means the date specified in
				the payment instruction for a payment which date shall be the regular pay date
				on which a paycheck would otherwise be issued to that employee. Such date is
				the date on which the funds are to be credited to the recipient's account with
				the financial institution specified by such recipient and on which such funds
				are to be made available to the financial institution by the originating
				depository financial institution through the Federal Reserve Bank. The date on
				which funds are available for withdrawal from the recipient's account, which
				date shall be specified on the enrollment form, shall be governed by the policy
				of the financial institution but shall in no event be later than two business
				days after the payment date. If the payment date is not a business day for the
				financial institution receiving a payment, or the originating depository
				financial institution from which it received such payment, then the next
				succeeding business day for both shall be deemed to be the payment
				date.
(g) Eligible employee or
				recipient means any person holding a position by election, appointment or
				employment in the service of an eligible agency except for an employee who is
				excluded from participation in the direct deposit program for cause by his
				employing agency. For purposes of this subdivision, an employing agency shall
				have cause when it reasonably determines there is a risk that the employee may
				receive payments covering a period of time during which the employee did not
				work, for which period of time the employee does not have sufficient leave
				credits to be applied toward the absence.
(h) Eligible agency means any State
				department, division, board, commission or any other governmental agency whose
				payrolls are prepared by the State Comptroller including the Legislature and
				the Judiciary, except those which the State Comptroller determines to be
				ineligible pursuant to this paragraph. Where the State Comptroller determines
				that, because of a lack of adequate internal controls, or other reasonable
				grounds, there exists a likelihood that participation or continued
				participation by an agency in this program will result in administrative
				problems, including but not limited to difficulties in recovering money sent in
				error to recipients' accounts, the State Comptroller may declare that such
				agency is ineligible to participate in the program. Where such a determination
				of ineligibility is made with respect to an agency which is then participating
				in the program, such determination shall result in termination of such agency
				from further participation in the program. Such termination shall become
				effective 30 days after the State Comptroller has sent such notice to the
				eligible agency.
(i) Recurring
				payment means any net payment of salary or wages, consisting of gross salary or
				wages less any mandatory or voluntary deductions, which is made at regular
				intervals to a recipient.
(j)
				Direct deposit of salary enrollment form means the form prescribed by the
				Department of Audit and Control for execution by:
(1) a recipient;
(2) a joint tenant, where applicable;
				or
(3) when appropriate, a
				financial institution maintaining an account for such recipient, to authorize
				the State Comptroller to make a recurring payment by transmission of electronic
				data.