Section 4-13-2-14.8 - State contractor or vendor; electronic funds transfer of payments; waiver(a) Notwithstanding any other law, rule, or custom, but subject to subsections (c) and (d), a person who has a contract with the state or submits invoices to the state for payment shall authorize in writing the direct deposit by electronic funds transfer of all payments by the state to the person. The person's written authorization must designate a financial institution and an account number to which all payments are to be credited.(b) After obtaining the authorization required by subsection (a), the state comptroller shall deposit a payment to the person in the financial institution and account designated by the person each time a payment is made to the person.(c) A person who does not wish to have payments to the person deposited by electronic funds transfer may request the state comptroller to grant a waiver of the requirement of subsection (a). The person must:(1) state the reason for requesting the waiver; and(2) sign and verify the waiver form.(d) The state comptroller may grant a person's request for a waiver for any of the following reasons: (1) The person does not currently have a savings or checking account and is unable to establish such an account within the geographic area of the person's primary business location without payment of a service fee. The person must submit with the waiver request a written statement by the person's financial institution of the person's inability to establish an account without the payment of a fee.(2) The person's primary business location is too remote to have access to a financial institution where a direct deposit can be made.(3) The person's financial institution is unable to accept an electronic deposit or withdrawal. The person must submit with the waiver request a written statement by the person's financial institution that the financial institution is unable to accept an electronic deposit or withdrawal.(4) The state comptroller determines that the facts of the particular case warrant a waiver of the requirement of subsection (a). The state comptroller shall establish a waiver form consistent with this subsection.
(e) A contract entered into by the state must contain a provision under which the person contracting with the state specifically authorizes the state comptroller to make all payments to the person by direct deposit by electronic funds transfer, subject to the waiver provisions of subsection (d).(f) Notwithstanding any other law, rule, or custom, a payment to a person by the state under this section discharges only the state's obligation to that person to the extent of the amount of the payment tendered, and does not constitute a settlement, reduction, release, or compromise of the state's obligation to the person.Amended by P.L. 9-2024,SEC. 88, eff. 7/1/2024.As added by P.L. 144-2005, SEC.1.