Regular Session 2015-2016 Senate Bill 1265 P.N. 1840

PRIOR PRINTER'S NO. 1804

PRINTER'S NO. 1840

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

1265

Session of

2015

INTRODUCED BY WHITE, TARTAGLIONE, GREENLEAF, STEFANO, TOMLINSON,

EICHELBERGER, WAGNER AND VOGEL, MAY 13, 2016

SENATOR WHITE, BANKING AND INSURANCE, AS AMENDED, MAY 18, 2016

AN ACT

Amending the act of December 19, 1975 (P.L.604, No.173),

entitled "An act to facilitate the use of electronic funds

transfer systems by providing that credits to accounts in

financial institutions designated by recipients shall satisfy

legal requirements for payments by cash or checks," further

providing for electronic funds transfers; providing for

definitions; further providing for consumer protections;

providing for payroll card accounts and for coordination with

Federal law; and making editorial changes.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 1 of the act of December 19, 1975

(P.L.604, No.173), entitled "An act to facilitate the use of

electronic funds transfer systems by providing that credits to

accounts in financial institutions designated by recipients

shall satisfy legal requirements for payments by cash or

checks," is amended to read:

[Section 1. For the purposes of any statute, rule or

regulation requiring any payment to be made in lawful money or

by check, whether for wages, salaries, commissions or other

claims of any kind, such payment may be made by credit to an

account in a bank, credit union or other financial institution

authorized to accept deposits or payments designated by the

recipient of such payment if the recipient has requested such

method of payment in writing.]

Section 1. Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Financial institution." A bank, savings association or

credit union.

"Payroll card account." An account that is directly or

indirectly established through an employer, to which transfers

of the employee's wages, salary or other compensation are made.

"Record." As defined in section 103 of the act of December

16, 1999 (P.L.971, No.69), known as the Electronic Transactions

Act.

Section 2. The act is amended by adding a section to read:

Section 1.1. Electronic funds transfers.

For the purposes of any statute, rule or regulation requiring

any payment to be made in lawful money or by check, whether for

wages, salaries, commissions or other claims of any kind,

COMPENSATION, IF THE RECIPIENT OF THE PAYMENT MAKES A REQUEST IN

A RECORD, the payment may be made by credit to an account in a

financial institution, including a payroll card account,

authorized to accept deposits or payments by the recipient of

the payment if the recipient has requested that method of

payment in a record .

Section 3. Section 2 of the act is amended to read:

[Section 2. Every such request, as described in section 1,

shall be effective provided that:

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(i) the written agreement shall set forth all terms and

conditions under which such transfers are to be made and the

terms and conditions as to the method or methods to be used by

which a wage-earner may withdraw such request and terminate the

agreement; and

(ii) no funds transferred pursuant to a request as described

in section 1, shall be transferred by any employer or other

person to any account unless the party authorizing the transfer

of such funds shall have received a separate written record of

each such transfer at or prior to the time thereof.]

Section 2. Consumer protections.

When wages, salaries, commissions or other compensation are

transferred to an account at a financial institution as

described in section 1, the financial institution shall provide

the employee with disclosures, notice of transfers, access to

account information and other consumer protections in accordance

with 12 CFR Part 1005 (relating to electronic fund transfers

(Regulation E)).

Section 4. The act is amended by adding sections to read:

Section 2.1. Payroll card accounts.

The payment of wages, salaries or commissions through a

transfer into a payroll card account shall be effective for

purposes of section 1.1 if:

(1) the employee has been issued a payroll card in

accordance with 12 CFR Part 1005 (relating to electronic fund

transfers (Regulation E));

(2) the payroll card account is established at a

federally insured financial institution; and

(3) the payroll card account provides the employee with

the ability to make at least one withdrawal each pay period

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without charge for any amount up to and including the full

amount of the employee's net wages for that pay period,

except that an employee paid more frequently than weekly must

be provided the ability to make at least one withdrawal from

the payroll card account each week without cost for any

amount up to and including the full amount of the employee's

net wages for that week.

Section 2.2. Coordination with Federal Law.

This act modifies, limits or supersedes the Electronic

Signatures in Global and National Commerce Act (Public Law 106-

229, 15 U.S.C. § 7001 et seq.). This act does not modify, limit

or supersede section 101(c) of the Electronic Signatures in

Global and National Commerce Act (Public Law 106-229, 15 U.S.C.

§ 7001(c)), if otherwise applicable, or authorize electronic

delivery of any notices described in section 103(b) of the

Electronic Signatures in Global and National Commerce Act

(Public Law 106-229, 15 U.S.C. § 7003(b)).

Section 5. Sections 3 and 4 of the act are amended to read:

[Section 3. This act shall supersede any inconsistent

provision of any other statute, rule or regulation.]

Section 3. Construction.

This act shall supersede any inconsistent provision of any

other statute, rule or regulation.

[Section 4. This act shall take effect immediately.]

Section 4. Effective date.

This act shall take effect immediately.

Section 6. This act shall apply to payments made before, on

or after the effective date of this act.

Section 7. This act shall take effect immediately.

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