ARIZONA
HOUSE OF REPRESENTATIVES
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SB 1299: state warrants; substitute checks |
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PRIME SPONSOR: Senator Brophy McGee, LD 28 BILL STATUS: Caucus & COW |
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Incorporates checks, substitute checks and
electronic fund transfer vouchers into the type of payments that the state
treasurer and Arizona Department of Administration (ADOA) can process.
History
The purpose of the Federal Check Clearing for the 21st Century Act (Check 21 Act) is to facilitate check truncation by authorizing substitute checks, to foster innovation in the check collection system without mandating the receipt of checks in electronic form and to improve the overall efficiency of the nation's payments system. Additionally, in the Check 21 Act, the Board of Governors of the Federal Reserve System are granted full authority to regulate all aspects of the payment system including the receipt, payment, collection, and clearing of checks and related functions of the payment system pertaining to checks.
According to the federal reserve board, a substitute check is a paper copy of the front and back of the original check. A substitute check is legally the same as the original check if it accurately represents the information on the original check and includes the statement "This is a legal copy of your check. You can use it in the same way you would use the original check" (www.federalreserve.gov).
Provisions
1. Includes checks and electronic funds transfer vouchers to the monies that ADOA is required to maintain accurate, complete and current financial records of. (Sec. 2)
2. Includes checks and electronic funds transfer vouchers to the information that ADOA must submit in a report to the Governor. (Sec. 2)
3. Prohibits monies from being withdrawn from the treasury except on the check or substitute check of ADOA. (Sec. 3)
4. Allows ADOA to issue checks or electronic funds transfer vouchers for qualified expenditures of federal program monies before they are deposited into the state treasury. (Sec. 3)
5. States that the receipt of federal monies must be timed to coincide with the redemption of checks, substitute checks or electronic funds transfer vouchers. (Sec. 3)
6. Authorizes disbursements from private funds and contributions to be made on checks and ADOA to issues such checks. (Sec. 4)
7. Stipulates that checks, substitute checks or electronic funds transfer vouchers must be credited to the state fund as they are paid. (Sec. 5)
8. Requires all checks issued by ADOA to be countersigned by the Governor or must display the facsimile signature of the Governor before the presentation to the State Treasurer for payment or endorsement. (Sec. 6)
9. States that unless the checks or electronic funds transfer vouchers are countersigned, they are not considered complete in form or effect as legal obligations against this state. (Sec. 6)
10. Specifies that all checks and electronic funds transfer vouchers issued by ADOA must be numbered in the manner prescribed by the ADOA director to maintain accountability and bear on the face a void date of no more than two years after the date of issuance. (Sec. 7)
11. Asserts that all ADOA checks, issued pursuant to statute, constitute full and sufficient authority for the State Treasurer to distribute public monies in the amount set forth on the face of the check. (Sec. 8)
12. Requires the State Treasurer to authorize the transfer of monies by the state depository bank in payment of checks, substitute checks and electronic funds transfer vouchers. (Sec. 8)
13. Authorizes the director of ADOA to collect a fee for each check and electronic funds transfer voucher issued to a vendor that provides materials, services or construction to this state. (Sec. 8)
14. Requires the director of ADOA to credit the State Treasurer with the amount of all checks or substitute checks that the State Treasurer redeems. (Sec. 8)
15. Allows monies to be withdrawn from the treasury for paying checks issued by the director of ADOA to pay the treasurer's warrant notes. (Sec. 8)
16. Stipulates that if monies are not available to pay checks or substitute checks, then the State Treasurer is required to issue and exchange or sell a treasurer's warrant note in the amount equal to the sum of the face value of the checks or substitute checks. (Sec. 9)
17. Amends the definition to monies are not available to include checks, substitute checks and electronic funds transfer vouchers. (Sec. 9)
18. Includes checks, substitute checks and electronic funds transfer vouchers to the combination that determines the face value of a treasurer's warrant note. (Sec. 9)
19. Authorizes the State Treasurer to sell warrant notes at public or private sale to pay checks, substitute checks and electronic funds transfer vouchers. (Sec. 9)
20. Allows treasurer's warrant notes to be exchanged for checks, substitute checks or electronic transfer vouchers. (Sec. 9)
21. Allows ADOA to issue a duplicate check if certain conditions are met and shall send a written stop payment notice to the State Treasurer giving the number, amount and date of the lost, destroyed or out-of-date check. (Sec. 11)
22. Stipulates that checks or substitute checks shall not be paid unless presented to the State Treasurer for payment before the void date printed on the check or substitute check. (Sec. 12)
23. Specifies that any check or substitute check that includes federal, trust or donated monies held for the payment of void warrants or checks must be transferred or reverted to the fund from which it was drawn. (Sec. 12)
24. Asserts that monies held for the payment of checks or substitute checks are deemed property presumed abandoned and must be submitted to the Department of Revenue each month. (Sec. 12)
25. Specifies that checks or substitute checks do not include a state-issued check for support or for spousal maintenance. (Sec. 12)
26. Allows ADOA to draw checks or electronic funds transfer vouchers against the available balances of appropriations made for a fiscal year for a period of one month after the close of that fiscal year. (Sec. 13)
27. Requires ADOA to draw a warrant, check or electric funds transfer voucher to pay a claim from the prior fiscal year if the claim is presented within one year and if sufficient funds remain in the reverted appropriation to pay the claim. (Sec. 14)
28. Requires the check or electronic fund transfer voucher to be paid to the fund to which the unused appropriation reverted. (Sec. 14)
29. States that ADOA must review the application for a revolving fund and if acceptable, may draw a check or electronic funds transfer voucher to the order of the officer applying therefor, and charge the amount thereof against the appropriation or other fund to which the revolving fund is to be charged. (Sec. 15)
30. Includes checks, substitute checks and electronic funds transfer vouchers to the monies that a public official, employee or agent of this state, a political subdivision of this state or a budget unit is responsible for disbursing, collecting, receiving, safekeeping, or transferring. (Sec. 16)
31. Exempts a public official, employee or agent from being held liable for illegal payments to such checks, substitute checks, or electronic funds transfer vouchers unless the public official, employee or agent knew or should have known that a check, substitute check or electronic funds transfer voucher would result in an illegal payment of public monies. (Sec. 16)
32. Establishes that a person who knowingly refuses or omits to pay on demand public monies in the person's custody on presentation of a check, substitute check or electronic funds transfer voucher is guilty of a Class 4 felony. (Sec. 17)
33. Requires the responsible financial officer of investing trust monies to draw a check or electronic funds transfer voucher to pay for the security purchased. (Sec. 22)
34. Expands the sections of statute which the investment of public monies is exempt from. (Sec. 22)
35. Includes checks, substitute checks and electronic funds transfer vouchers to what the Treasurer must immediately call in and pay from the proceeds of the sale of any bonds. (Sec. 24)
36. Requires the State Treasurer to give notice in the same manner as for paying and redeeming checks, substitute checks and electronic funds transfer vouchers. (Sec. 25)
37. States that if a deficiency exists for paying the interest on bonds, the director of ADOA shall draw a warrant, check or electronic funds transfer voucher on the State Treasurer, payable to the order of the State Treasurer from the state General Fund. (Sec. 26)
38. Defines substitute check. (Sec. 1)
39. Makes technical and conforming changes. (Sec. 2-15, 17-27)
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43. Fifty-fourth Legislature SB 1299
44. First Regular Session Version 2: Caucus & COW
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