§ 39:247 — Direct deposit payroll system

§247. Direct deposit payroll system
A.(1) The legislature finds that the Select Council on Revenues and Expenditures
in Louisiana's Future (SECURE) has studied the state's payroll systems and found that the
executive branch of state government has a complex of payroll systems with one hundred
twenty-two separate payroll systems serving almost ninety-one thousand payees with an
annual payroll totalling over $2.2 billion.
(2) The legislature further finds that issuing payroll checks bears the cost of
purchasing, processing, and distributing checks and that implementing an electronic direct
deposit system through the automated clearinghouse could result in cost savings to the state
by reducing such operating and processing costs, providing increased control over funds, as
well as greatly reduced expense for reconciliation of payroll accounts. Implementing such
a system provides convenience and security to the state's employees by eliminating the risk
of lost or stolen checks, facilitating timely deposit of paychecks regardless of vacation or
illness, providing enhanced confidentiality of payroll information, and making the funds
available to the employee on payday.
(3) The legislature further finds that the Uniform Payroll System (UPS) which is
administered by the division of administration serves eighteen of the twenty state
departments and some fifty-seven other state and quasi state agencies providing payroll to
approximately fifty-two thousand of the state's ninety-three thousand personnel. The
Department of Transportation and Development, Louisiana Works, and the state colleges and
universities all have separate payroll systems serving their employees. According to reports
received by the legislative auditor, the approximately one hundred five boards, commissions,
and corporations of the state also have separate payroll systems for their personnel.
(4) The legislature further finds that while the executive branch agencies served by
the UPS currently do not have an electronic direct deposit system in place, UPS has installed
the electronic infrastructure necessary to operate such a system and is proceeding toward
implementation of an electronic direct deposit system. According to information compiled
by SECURE, the transportation and labor departments do not have an electronic direct
deposit system. SECURE reports that the colleges and universities do offer a form of direct
deposit to their employees. Although some boards, commissions, and corporations may have
an electronic direct deposit system in place, SECURE had no data available to confirm the
extent of such coverage.
(5) The legislature further finds that to provide this efficiency, the state should
identify how and where direct deposit can most readily be implemented. Those agencies,
such as those served by UPS, which have the electronic means to implement direct deposit
should proceed as rapidly as possible toward that goal.
B. It is declared to be the purpose of this Section to:
(1) Require that all executive branch agencies, whether or not currently served by
UPS, and all state boards, commissions, and corporations provide electronic direct deposit
payroll for state employees.
(2) Establish a goal of implementing electronic direct payroll deposit by July 1, 2000.
C.(1) The commissioner of administration is hereby directed to develop and
implement a uniform system for electronic direct deposit payroll through the Automated
Clearing House for all executive departments and agencies, and only those boards and
commissions over which the executive departments exercise budgetary and oversight
authority. The system shall be required, at a minimum, to provide electronic direct deposit
services to employees who occupy positions approved by the Department of State Civil
Service within the executive branch of state government and to all full-time employees of
such aforementioned boards and commissions; however, the commissioner of administration
may authorize the direct deposit system to serve other classes of employees. For the
purposes of this Section, "system" shall mean a general group of interacting, interrelated
organizational components of any state department, board, commission, or corporation which
in working together support the payroll process, and nothing herein shall be construed to
limit such meaning to a particular electronic payroll data processing network or infrastructure
and associated personnel which serve an entity.
(2) The commissioner is authorized to adopt all necessary standards and guidelines
to implement a uniform electronic direct deposit payroll system among the existing operating
payroll systems, including but not limited to organizational or structural specifications
necessary to effectuate direct deposit and the delineation of operational payroll system
responsibilities. The commissioner shall establish a timetable for implementation, and is
also authorized to promulgate all rules and regulations necessary and proper toward the
planning, establishment, and operation of the system, pursuant to the provisions of the
Administrative Procedure Act.
D. The division of administration shall report annually to the legislature, no later
than thirty days prior to the regular session of the legislature, on the status of the
implementation of the electronic direct deposit payroll system until the system is fully
operational, including any efficiencies or cost savings which may be recognized therefrom.

Legislative History

Acts 1995, No. 789, §1; Acts 2008, No. 743, §7, eff. July 1, 2008.