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A09690 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9690
 
SPONSOR: Rozic (MS)
  TITLE OF BILL: An act to amend the state finance law, in relation to providing the option to employees of electronic confirmation of direct deposit in lieu of paper pay stubs   PURPOSE: This bill requires the State Comptroller to offer any employee who receives a salary through direct deposit the option to opt out of receiving a paper pay stub and instead receive the information that would be included in the pay stub electronically.   SUMMARY OF PROVISIONS: Section 1: Section 1 of the bill amends subdivision 4 of section 200 of the State Finance Law to establish that employees may opt out of receiv- ing paper pay stubs and receive electronic versions instead. It further amends subdivision 4 to require the Comptroller to offer electronic pay stubs and to promulgate rules and regulations to administer the elec- tronic continuation of direct deposits. Section 2: Section 2 of the bill sets forth the effective date.   JUSTIFICATION: By allowing employees to have paychecks directly deposited into their bank accounts, New York State has reduced the environmental and economic costs of its payroll administration. Unfortunately, all employees - even those enrolled in the Direct Deposit program - still receive print- ed copies of their pay stubs by mail. This legislation would require the state to give employees the option of receiving their pay stub electron- ically. In addition to the environmental benefits resulting from the reduced use of paper, electronic pay stubs ensure on-time delivery of payroll information and save resources by eliminating printing, postage and administrative costs. Currently, Minnesota, Florida, Kentucky and South Dakota all have similar programs in place. Under this legislation, employees who prefer printed pay stubs will retain the option to receive a paper copy.   FISCAL IMPACT ON THE STATE: New York State is likely to save a significant but undetermined amount due to reduced printing and mailing costs.   FISCAL IMPACT ON LOCALITIES: None.   IMPACT ON REGULATION OF BUSINESSES AND INDIVIDUALS: None.   IMPACT ON FINES, IMPRISONMENT, FORFEITURE OF RIGHTS, OR OTHER PENAL SANCTIONS: None.   LEGISLATIVE HISTORY: 2017: A08602 (Kavanagh) - Ways and Means 2016: A05876 (Kavanagh) - Ways and Means 2015: A05876 (Kavanagh) - Ways and Means 2014: A02625 (Kavanagh) - Ways and Means 2013: A02625 (Kavanagh) - Ways and Means 2012: A05584 (Kavanagh) - Ways and Means 2011: A05584 (Kavanagh) - Ways and Means 2010: A00659 (Kavanagh) - Ways and Means 2009: A00659 (Kavanagh) - Ways and Means 2008: A11359 (Kavanagh) - Ways and Means   EFFECTIVE DATE: This act shall take effect on the one hundred eightieth day after it shall have become a law. Effective immediately the comptroller is authorized to promulgate any rules and regulations and take any other measures necessary to implement this act on its effective date.
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