(a) The comptroller shall establish and operate an electronic funds transfer system in accordance with this section. The comptroller may use the services of financial institutions, automated clearinghouses, and the federal government to establish and operate the system.
(b) The comptroller shall use the electronic funds transfer system to pay an employee’s net state salary and travel expense reimbursements.

(c) The comptroller shall use the electronic funds transfer system to make:
(1) payments of more than $100 to annuitants by the Employees Retirement System of Texas, the Teacher Retirement System of Texas, or the Texas Emergency Services Retirement System under each system’s administrative jurisdiction;
(2) recurring payments to municipalities, counties, political subdivisions, special districts, and other governmental entities of this state; and
(3) payments to vendors who choose to receive payment through the electronic funds transfer system rather than by warrant.
(d) If the comptroller is not required by this section to use the electronic funds transfer system to pay a person, the comptroller may use the system to pay the person on the person’s request.
(e) Repealed by Acts 1997, 75th Leg., ch. 1035, Sec. 90(a), eff. June 19, 1997.
(f) Except as provided by Subsection (f-1) and subject to any limitation in rules adopted by the comptroller, an automated clearinghouse, or the federal government, the comptroller may use the electronic funds transfer system to deposit payments only to one or more accounts of a payee at one or more financial institutions, including credit unions.
(f-1) The comptroller may also use the electronic funds transfer system to deposit the amount of an employee’s payroll deduction made as authorized by law.
(f-2) A single electronic funds transfer may contain payments to multiple payees. Individual transfers or warrants are not required for each payee.
(g) When a law requires the comptroller to make a payment by warrant, the comptroller may instead make the payment through the electronic funds transfer system. The comptroller’s use of the electronic funds transfer system or any other payment means does not create a right that would not have been created if a warrant had been issued.
(h) Notwithstanding any requirement in this section to make a payment through the electronic funds transfer system, the comptroller shall issue a warrant to pay a person if:
(1) the person properly notifies the comptroller that:
(A) receiving the payment by electronic funds transfer would be impractical to the person;
(B) receiving the payment by electronic funds transfer would be more costly to the person than receiving the payment by warrant;
(C) the person is unable to establish a qualifying account at a financial institution to receive electronic funds transfers; or
(D) the person chooses to receive the payment by warrant; or
(2) the state agency on whose behalf the comptroller makes the payment properly notifies the comptroller that:
(A) making the payment by electronic funds transfer would be impractical to the agency; or
(B) making the payment by electronic funds transfer would be more costly to the agency than making the payment by warrant.
(i) Notwithstanding any requirement in this section to make a payment through the electronic funds transfer system, the comptroller may make a payment by warrant if the comptroller determines that:
(1) using the electronic funds transfer system would be impractical to the state; or
(2) the cost to the state of using the electronic funds transfer system would exceed the cost of issuing a warrant.
(j) The comptroller shall adopt rules to administer this section, including rules relating to the notifications that may be provided to the comptroller under Subsection (h).
(k) Repealed by Acts 1999, 76th Leg., ch. 945, Sec. 2, eff. June 18, 1999.