State Codes and Statutes

State Codes and Statutes

Statutes > California > Edc > 1340

EDUCATION CODE
SECTION 1340



1340.  Notwithstanding any other provision of law to the contrary,
the following procedure may be utilized for payroll-related payments
as limited in this section. The county superintendent of schools may
designate one or more national or state banks, savings and loan
associations, or federal or state credit unions with the principal
office in this state, if the deposits are insured by the Federal
Deposit Insurance Corporation, the Federal Savings and Loan Insurance
Corporation, the National Credit Union Share Insurance Fund, or
other private insurance or guaranty of share accounts that is
acceptable to the Commissioner of Financial Institutions, to act as
disbursing agents for the county superintendent of schools and for
school districts and community colleges in the territory under his or
her jurisdiction. The county superintendent of schools may draw
orders and requisitions upon the funds of the respective public
employers, in favor of the designated institutions, for tax-sheltered
annuities, custodial accounts, individual retirement accounts,
credit union deductions, insurance plan payments, deferred
compensation, withholding taxes, professional dues, and other
payroll-related deductions or employer contributions. The county
auditor shall follow the procedure with respect to examining and
allowing the orders and requisitions set forth in Sections 42639 and
85239. The county superintendent of schools, upon receiving allowed
warrants from the county auditor, shall deposit the warrants in the
designated institutions. As soon as feasible following deposit, the
county superintendent of schools shall furnish the designated
institutions with information required to enable disbursement of
payments to insurance companies, credit unions, and other recipients,
including identification of the employees for whom the payments are
to be made, the amount of payment on behalf of each designated
employee, and the company to which the payment on behalf of each
designated employee is to be made. It shall be the duty of each
designated institution to disburse the payments to the recipients
entitled thereto by check, bank draft, or other appropriate method,
within a reasonable time after receipt of each payment, with
necessary information for disbursements, which time period shall not
exceed 5 working days. Designated institutions receiving deposits and
making disbursements, and the county superintendent of schools,
shall be deemed to be agents of the respective public employers, for
payment of annuities on behalf of their respective employees, and for
other payments as specified, and the moneys received by the
designated institutions shall be deemed to be deposits of the county
superintendents of schools. Security for the deposits shall be
furnished as required by the laws of this state. The county
superintendent of schools may directly prepare the information and
necessary checks, bank drafts, or other appropriate instruments, on
the account or accounts within the designated institutions, providing
that payment to recipients entitled thereto with required
information is made within the timeframe specified.