la-202610-94f91665ec: Direct Deposit of Vendor Pay

Office of the GovernorDivision of Administration Office of State Uniform Payroll Direct Deposit of Vendor Pay (LAC 4:III.Chapter 5) In accordance with the provision of the Administrative Procedure Act, R.S. 49:953(A), the Office of State Uniform Payroll (OSUP) proposes to amend LAC 4:III, Chapter 5, Direct Deposit of Vendor Payments and Electronic Receipt of Supporting Data. The amendments are technical in nature and do not modify the intent of this Rule which is to require direct deposit as a condition of being approved for payroll deduction through the state’s payroll system. Title 4 ADMINISTRATION Part III. Payroll Chapter 5.Direct Deposit of Vendor Payments and Electronic Receipt of Supporting Data §501.Definitions Automated Clearing House (ACH)—the network, operated by the Federal Reserve Bank, which establishes procedures and guidelines regarding electronic transfer of funds. * * * Direct Deposit Enrollment Authorization Form—the standard form developed by the Division of Administration, Office of State Uniform Payroll, completed by the vendor, giving the Division of Administration, Office of State Uniform Payroll authority to process vendor specific direct deposit bank account information in the LaGov Human Capital Management (LaGov HCM) System for the electronic transfer of funds. * * * Foreign Financial Institution—a bank, savings and loan, or credit union established and regulated in a country or territory outside of the United States. * * * International ACH Transactions (IAT)—ACH transactions that are part of a payment chain that begins or ends in another country outside of the United States. LaGov Human Capital Management (LaGov HCM) System—the Louisiana Government system administered by the Division of Administration, Office of State Uniform Payroll to provide uniform payroll services to state agencies. * * * Vendor—any company, corporation, or organization approved to receive payments via employee payroll deduction through the LaGov HCM system. Vendor Payment—payment made to the vendor via voluntary and/or involuntary employee payroll deductions paid through the LaGov HCM system. * * * AUTHORITY NOTE:Promulgated in accordance with R.S. 42:455. HISTORICAL NOTE:Promulgated by the Office of the Governor, Division of Administration, Office of State Uniform Payroll, LR 28:1199 (June 2002), amended LR 53: §503.Direct Deposit of Vendor Payments and Electronic Receipt of Supporting Data A.Effective July 1, 2002, all vendors paid via voluntary or involuntary payroll deductions through the LaGov HCM system must accept payments for deductions via direct deposit through the Automated Clearing House (ACH) or other approved electronic means and must accept supporting data via an approved electronic means. Vendors must complete an approved direct deposit enrollment authorization form and forward said form to the Office of State Uniform Payroll to establish direct deposit of vendor payments to the vendor’s bank account at an approved financial institution. The approved direct deposit enrollment form can be obtained from the Office of State Uniform Payroll. Prior to a new vendor being approved and established in the LaGov HCM System, the Office of State Uniform Payroll must receive a completed approved direct deposit enrollment authorization form. AUTHORITY NOTE:Promulgated in accordance with R.S. 42:455. HISTORICAL NOTE:Promulgated by the Office of the Governor, Division of Administration, Office of State Uniform Payroll, LR 28:1200 (June 2002), amended LR 53: §504.International ACH Transactions A.Direct deposit to a foreign (non-United States) financial institution is prohibited. B.Vendors must affirm on the direct deposit enrollment authorization form whether their entire payment sent to their account at a United States financial institution will subsequently be forwarded to a foreign financial institution. AUTHORITY NOTE:Promulgated in accordance with R.S. 42:455. HISTORICAL NOTE:Promulgated by the Office of the Governor, Division of Administration, Office of State Uniform Payroll, LR 53: §505.Request for Direct Deposit Waiver A.Vendors may request a waiver of the direct deposit requirements in this chapter by submitting in writing a formal request to the Director of the Office of State Uniform Payroll. Upon receipt of formal request, the Office of State Uniform Payroll will approve or deny the request for waiver and notify the vendor in writing within 15 days of receipt of request for waiver. Waivers may be approved if the vendor can prove that use of direct deposit and/or electronic receipt of supporting data will cause an undue hardship or will significantly increase payment processing costs. AUTHORITY NOTE:Promulgated in accordance with R.S. 42:455. HISTORICAL NOTE:Promulgated by the Office of the Governor, Division of Administration, Office of State Uniform Payroll, LR 28:1200 (June 2002), amended LR 53: §507.Enforcement of Rule A.Vendors receiving payments for garnishment, child support, and levies are exempt from the requirements of this chapter. B.... C.Current and prospective vendors requesting to receive new payroll deductions through the Payroll Deduction Rule (LAC 4;III.Chapter 1) will be denied acceptance for refusal to receive payments via direct deposit or other approved electronic means and receive supporting data via an approved electronic means, unless the vendor has been granted a waiver in accordance with §505 of this chapter. D.Exceptions to this rule may be granted by the Office of State Uniform Payroll on a case-by-case basis based on business need or feasibility. AUTHORITY NOTE:Promulgated in accordance with R.S. 42:455. HISTORICAL NOTE:Promulgated by the Office of the Governor, Division of Administration, Office of State Uniform Payroll, LR 28:1200 (June 2002), amended LR 53: Family Impact Statement The proposed amendments are not anticipated to have an impact on family formation, functioning, stability, or autonomy, as described in R.S. 49:972. Poverty Impact Statement The proposed amendments are not anticipated to have an impact on poverty, as described in R.S. 49:973. Small Business Analysis The proposed amendments are not anticipated to have an adverse effect or economic impact on small businesses in accordance with the Regulatory Flexibility Act. Provider Impact Statement The proposed amendments are not anticipated to have an impact on providers of services funded by the state as described in HCR 170 of the 2014 Regular Legislative Session. Public Comments Interested persons may submit written comments to Paula Rotolo, Payroll Manager, Office of State Uniform Payroll, Box 94095, Baton Rouge, LA 70804 or by facsimile to (225) 342-1650. All comments must be submitted by 4:30 p.m., November 10, 2026. Public Hearing A public hearing on the proposed amendments may be held on Wednesday, December 2, 2026, beginning at 9 a.m. in the Marbois Room (Room 1-137) on the first floor of the Claiborne Building, located at 1201 North Third Street, Baton Rouge, LA 70802, if such a hearing is requested by November 10, 2026, by 4:30 p.m. All interested persons will be afforded an opportunity to submit data, views, or arguments, orally or in writing, at the hearing. For assistance in determining if a hearing will be held, please call OSUP at 225-342-0713. Nancy Keaton Assistant Commissioner FISCAL AND ECONOMIC IMPACT STATEMENT FOR ADMINISTRATIVE RULES RULE TITLE: Direct Deposit of Vendor Pay I.ESTIMATED IMPLEMENTATION COSTS (SAVINGS) TO STATE OR LOCAL GOVERNMENT UNITS (Summary) There are no anticipated implementation costs or savings for state or local governmental units as a result of these proposed rule changes. The proposed rule changes make technical updates to the Direct Deposit of Vendor Payments and Electronic Receipt of Supporting Data regulations that do not modify the intent of these rules, which is to require direct deposit as a condition of payroll deduction for all payroll vendors receiving payments from the State’s payroll system. The proposed rule changes: Update terminology related to the State’s payroll system name, Add regulations for International Automated Clearing House (ACH) transfers. II.ESTIMATED EFFECT ON REVENUE COLLECTIONS OF STATE OR LOCAL GOVERNMENTAL UNITS (Summary) There is no anticipated effect on revenue collections of state or local governmental units as a result of these proposed rule changes. III.ESTIMATED COSTS AND/OR ECONOMIC BENEFITS TO DIRECTLY AFFECTRED PERSONS, SMALL BUSINESSES, OR NONGOVERNMENTAL GROUPS (Summary) There is no anticipated cost or economic benefit to state employees, state agencies, vendors, or any other non-governmental group as a result of these proposed changes. IV.ESTIMATED EFFECT ON COMPETITION AND EMPLOYMENT (Summary) There is no anticipated impact on competition and employment as a result of these proposed changes. Nancy KeatonPatrice Thomas Assistant CommissionerDeputy Fiscal Officer 2610#010Legislative Fiscal Office