SENATE BILL REPORT

SB 5518

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As of February 14, 2011

Title: An act relating to direct deposit of salaries.

Brief Description: Requiring direct deposit of salaries for government employees.

Sponsors: Senators Tom, Hill and Kilmer.

Brief History:

Committee Activity: Ways & Means: 2/15/11.

SENATE COMMITTEE ON WAYS & MEANS

Staff: Erik Sund (786-7454)

Background: A state employee is generally paid twice each month, once for service rendered in the first 15 days of the month and once for services rendered during the remainder of the month. A variety of pay schedules are used for employees of political subdivisions. Employees of state agencies or political subdivisions may be paid by warrant or, if at least 25 employees have made a written request to their employer, by electronic transfer (direct deposit) to an employee's account at the employee's designated financial institution.

Summary of Bill: Employees of state agencies or political subdivisions may only be paid by electronic transfer to an employee's account at the employee's designated financial institution. Each employee must designate such an account in order to receive payment.

Appropriation: None.

Fiscal Note: Requested on February 14, 2011.

Committee/Commission/Task Force Created: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.