H. B. 2459
(By Delegates Farris, Michael, Laird,
Campbell and Seacrist)
[Introduced March 10, 1997; referred to the
Committee on Political Subdivisions.]
A BILL to amend article three, chapter twelve of the code of West
Virginia, one thousand nine hundred thirty-one, as amended,
by adding thereto a new section, designated section twenty,
relating to payment of funds of county boards of education,
county commissions, municipal corporations by electronic or
wire transfer; and specifying effective date.
Be it enacted by the Legislature of West Virginia:
That article three, chapter twelve of the code of West
Virginia, one thousand nine hundred thirty-one, as amended, be
be amended by adding thereto a new section, designated section
twenty, to read as follows:
ARTICLE 3. APPROPRIATIONS, EXPENDITURES AND DEDUCTIONS.
§12-3-20. Electronic or wire transfer.
(a) Notwithstanding any other provision of this code to the
contrary, whenever the treasurer of a county board of education, a county commission or a municipality is authorized or directed
pursuant to law to disburse or transfer on behalf of the county
board of education, county commission or municipality, funds in
the custody of the treasurer or in the treasury of the county
board of education, county commission or municipality, the
treasurer is authorized to disburse or transfer the funds by
means of electronic or wire transfer. The county board of
education, county commission or governing body of a municipality
may enter into a written agreement with the banking institution
in which the funds are deposited, prescribing the manner in which
electronic or wire transfer of the funds shall be accomplished,
identifying by number and name those accounts from which
electronic or wire transfers may be made, identifying which
person or persons are authorized to order the electronic or wire
transfer of funds from those accounts, and implementing a
security procedure as defined in section two hundred one, article
four-a, chapter forty-six of this code.
(b) It is the duty of the county board of education, county
commission or governing body of a municipality to adopt a system
of internal controls satisfactory to the tax commissioner as ex
officio, the chief inspector and supervisor of public offices for
the documentation and reporting of all transfers or disbursements
of funds accomplished by electronic or wire transfer to ensure the safety and integrity of the payment process.
(c) The county board of education, county commission or
governing body of a municipality shall also adopt procedures:
(1) Governing the method by which the treasurer is
authorized to direct payments from the funds of the county board
of education, county commission or municipality on deposit with
a banking institution;
(2) Governing the method of payment of obligations of the
county board of education, county commission or municipality,
including payment by check, draft, electronic or wire transfer,
or other method of payment mutually acceptable to the county
board of education, county commission or governing body of a
municipality, and the banking institution; and
(3) Covering any other matters it believes necessary to
ensure the safety and integrity of the payment process.
(d) A county board of education, county commission or
governing body of a municipality shall file a copy of the
procedures it adopts in accordance with the provisions of
subsection (c) of this section with each banking institution in
which its funds are deposited.
(e) The treasurer of the county board of education, county
commission or municipality, and the banking institution shall
agree to follow rules and procedures for electronic fund transfers promulgated by the federal reserve bank and the
national clearing house association (NACHA) to ensure the safety
and integrity of the payment process. These safeguards must be
approved by the county board of education, county commission or
governing body of a municipality. If the county board of
education, county commission or governing body of a municipality
finds that the safeguards are consistent with and do not
contravene the procedures adopted under the provisions of
subsection (c) of this section, the safeguards must be approved.
(c) Effective date. -- This section applies to disbursements
or transfers made after the thirty-first day of May, one thousand
nine hundred ninety-seven.
NOTE: The purpose of this bill is to allow county boards of
education, county commissions and municipalities to pay their
bills by electronic or wire transfers.
Beginning July 1, 1997, employers, including county boards
of education, county commissions and municipalities that annually
deposit more than $50,000 of federal payroll taxes (including
FICA, railroad retirement and employer withholding taxes) must
deposit such taxes using electronic or wire transfer. Enactment
of this bill will allow local government entities to deposit
these taxes by electronic funds transfer using the automated
clearing house (ACH) financial network run by the federal
reserve utilizing either the ACH credit option or the ACH debit
option, or by Fedwire.
This section is new; therefore, strike-throughs and
underscoring have been omitted.