(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.
(1) CAPPS--The centralized accounting and payroll/personnel system, or any successor system used to implement the enterprise resource planning component of the uniform statewide accounting project, developed under Government Code, §2101.035 and §2101.036.
(2) Comptroller--The comptroller of public accounts for the State of Texas.
(3) Credit union--A state credit union, an out-of-state credit union, a foreign credit union, or a federal credit union.
(4) Electronic funds transfer--A payment made electronically instead of by warrant or check. The term includes a payment made through an automated clearinghouse, by bank wire, or by federal wire.
(5) Employer--A state agency that employs a state employee who authorizes a deduction under this section.
(6) Federal credit union--A credit union organized under 12 U.S.C. Chapter 14.
(7) Foreign credit union--A credit union that is not organized under the laws of this state or the United States if the credit union is authorized under Finance Code, Title 3, Subtitle D, to do business in this state.
(8) Holiday--A state or national holiday as specified by the General Appropriations Act or Government Code, §§662.001-662.010.
(9) Include--A term of enlargement and not of limitation or exclusive enumeration. The use of the term does not create a presumption that components not expressed are excluded.
(10) Institution of higher education--Has the meaning assigned by Education Code, §61.003.
(11) May not--A prohibition. The term does not mean "might not" or its equivalents.
(12) Out-of-state credit union--A credit union organized under the laws of a state other than Texas if the credit union is authorized under Finance Code, Title 3, Subtitle D, to do business in this state.
(13) Participating credit union--A credit union that the comptroller has certified according to this section.
(14) Salary or wages--Base salary or wages, longevity pay, or hazardous duty pay.
(15) State agency--A department, commission, board, office, or other agency of any branch of Texas state government, including an institution of higher education.
(16) State credit union--A voluntary, cooperative, nonprofit financial institution that is authorized under Finance Code, Title 3, Subtitle D, to do business in this state for the purposes of:
(17) State employee--An employee of a state agency. The term includes an elected or appointed official, a part-time employee, an hourly employee, a temporary employee, an employee who is not covered by Government Code, Chapter 654, and a combination of the preceding. The term excludes an independent contractor and an employee of an independent contractor.
(18) Workday--A calendar day other than Saturday, Sunday, or a holiday.
(b) Deductions or changes in deductions.
(1) References in this section. A reference in this section to a deduction without further qualification or explanation is a reference only to a deduction from a state employee's salary or wages to make a payment to a participating credit union.
(2) Authorization of a deduction or a change in the amount of a deduction.
(3) Sufficiency of salary or wages to support a deduction.
(4) Timing of deductions.
(5) Cancellation of deductions.
(6) Interagency transfers of state employees. A state employee who transfers from one state agency to a second state agency may be treated by the second state agency as if the employee has not yet authorized any deductions.
(c) Effective dates of authorization forms and electronic authorizations.
(1) Effective date of authorization forms or electronic authorizations that request new deductions, changes in deductions, or cancellation of deductions. This paragraph applies to a state employee's authorization form or electronic authorization that requests a new deduction, change in a deduction, or cancellation of a deduction. The employer may decide when the first deduction from the employee's salary or wages, or the change or cancellation of the deduction, will occur. However, the authorized deduction, change in a deduction, or cancellation of a deduction must begin not later than with the employee's salary or wages that are paid on the first workday of the second month following the month in which:
(2) Copies of authorization forms.
(d) Return of authorization forms.
(1) Mandatory return. An employer shall return an authorization form to the participating credit union or state employee that submitted the form if it:
(2) Discretionary return. An employer may return an authorization form to the participating credit union or state employee that submitted the form if the form is a copy or facsimile.
(e) Requirements for the content and format of authorization forms.
(1) Prohibition against distributing or providing authorization forms. A participating credit union may not distribute or provide an authorization form to a state employee until the credit union has received the comptroller's written approval of the form.
(2) Requirement to produce authorization forms. As a condition for retaining its certification, a participating credit union must produce an authorization form that complies with the comptroller's requirements and this section. The credit union must produce the form within a reasonable time after receiving its certification from the comptroller.
(3) Using previously approved authorization forms. A participating credit union may use an authorization form that the comptroller has approved for use by another participating credit union if the form is modified so that the first credit union's name appears at the top of the form.
(4) Restrictions on approval of authorization forms by the comptroller. The comptroller may not approve the authorization form of a participating credit union unless:
(5) Revisions of authorization forms. A participating credit union shall revise an authorization form upon request from the comptroller. The credit union may not distribute or otherwise make available a revised form to a state employee until the credit union has received the comptroller's written approval of the form.
(f) Requirements for certifying and decertifying credit unions.
(1) Request for certification. The comptroller may not certify a credit union unless the comptroller receives a written request for certification from an individual who is authorized by the credit union to make the request.
(2) Requirements for requests for certification. The comptroller may not certify a credit union unless its request for certification includes: