LOCAL GOVERNMENT CODE

CHAPTER 144. ELECTRONIC FUNDS TRANSFER OF COMPENSATION AND 
REIMBURSEMENT OF MUNICIPAL OFFICERS AND EMPLOYEES


	§ 144.001.  TRANSFER SYSTEM AUTHORIZED.  (a)  A 
municipality may establish and operate an electronic funds transfer 
system to transfer the following items directly into officers' and 
employees' accounts in financial institutions only:
		(1)  the net pay of the officers and employees;                               
		(2)  payments for the travel and subsistence of the 
officers and employees;  and
		(3)  all other forms of compensation, payment, or 
reimbursement paid to the officers and employees.
	(b)  The authority granted by this chapter may not be 
restricted by a municipal charter.

Added by Acts 1989, 71st Leg., ch. 1047, § 1, eff. Aug. 28, 1989.          


	§ 144.002.  PAYEE REQUEST.  An authorized payee must 
request in writing to participate in any electronic funds transfer 
system established and operated by the municipality.

Added by Acts 1989, 71st Leg., ch. 1047, § 1, eff. Aug. 28, 1989.          


	§ 144.003.  ADMINISTRATION OF SYSTEM.  The municipal 
treasurer, with the approval of the governing body of the 
municipality, shall establish the procedures for administering the 
system and may use the services of financial institutions, 
automated clearinghouses, and the federal government.

Added by Acts 1989, 71st Leg., ch. 1047, § 1, eff. Aug. 28, 1989.          


	§ 144.004.  TRANSFER TO MULTIPLE PAYEES.  A single 
transfer may contain payments to multiple payees without the 
necessity of issuing individual warrants for each payee.

Added by Acts 1989, 71st Leg., ch. 1047, § 1, eff. Aug. 28, 1989.          


	§ 144.005.  NO ADDITIONAL RIGHTS CREATED.  The use of an 
electronic funds transfer means of payment does not create any 
rights that would not have been created if an individual warrant had 
been used as a means of payment.

Added by Acts 1989, 71st Leg., ch. 1047, § 1, eff. Aug. 28, 1989.