HB 1086 FY 2013 Summary 1 |
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HB 1086 Exempted Payments and List of Causes
Pursuant to the Transparency, Accountability and Innovation in Oklahoma State Government 2.0 Act of 2011 (the Act), the Oklahoma legislature approved a requirement that all payments from the State Treasury shall be disbursed electronically. The Act further provides that the State Treasurer may provide an exemption from this requirement with cause and that the number of exempted payments and a corresponding list of causes shall be published on the State Treasurer’s website.
Attached is a report that reflects by agency the nature of causes for which requests for exemption were submitted and granted. The report also reflects the number of warrants paid during each of the quarters during the fiscal year ended June 30, 2013.
Nature of Causes Resulting in Exemptions
System Limitations
System limitations exist when the current systems (technology, policies and procedures, laws and regulations, etc.) do not support the gathering, storing, processing and transmitting of the data required to process payments via an electronic mechanism.
Banking Data Limitations
Banking data limitations may arise when systemic support exists to process electronic payments however the agency does not have the valid banking data required.
International ACH Transactions
An IAT is a U.S. ACH entry that is part of a payment transaction involving a financial institution, or its branch or office that is not located in the territorial jurisdiction of the United States (referred to below as “foreign bank, branch or office”). Specifically, a foreign bank, branch or office is considered a part of a payment transaction if any one or more of the following transaction conditions is met:
• The foreign bank, branch or office holds an account that is credited or debited as part of a payment transaction; or
• The foreign bank, branch or office receives funds directly from a Person or makes payment directly to a Person as part of a payment transaction; or
• The foreign bank, branch or office serves as an intermediary in the settlement of any part of a payment transaction.
The Office of the State Treasurer does not process IAT transactions. Experts from the State’s ACH origination bank have advised that the settlement risk remains high with these transactions in numerous countries as they have not yet received the international acceptance necessary to reduce the risk to acceptable levels. The Office of the State Treasurer does continue to monitor settlement risk and may implement IAT processing as volumes and acceptability by country warrants. The Office of the State Treasurer does process U.S. dollar denominated international wire transfers through the State’s operating bank with a high degree of success but also with significantly higher per transaction cost.
Object Description
Description
| Title | HB 1086 FY 2013 Summary 1 |
| Full text | HB 1086 Exempted Payments and List of Causes Pursuant to the Transparency, Accountability and Innovation in Oklahoma State Government 2.0 Act of 2011 (the Act), the Oklahoma legislature approved a requirement that all payments from the State Treasury shall be disbursed electronically. The Act further provides that the State Treasurer may provide an exemption from this requirement with cause and that the number of exempted payments and a corresponding list of causes shall be published on the State Treasurer’s website. Attached is a report that reflects by agency the nature of causes for which requests for exemption were submitted and granted. The report also reflects the number of warrants paid during each of the quarters during the fiscal year ended June 30, 2013. Nature of Causes Resulting in Exemptions System Limitations System limitations exist when the current systems (technology, policies and procedures, laws and regulations, etc.) do not support the gathering, storing, processing and transmitting of the data required to process payments via an electronic mechanism. Banking Data Limitations Banking data limitations may arise when systemic support exists to process electronic payments however the agency does not have the valid banking data required. International ACH Transactions An IAT is a U.S. ACH entry that is part of a payment transaction involving a financial institution, or its branch or office that is not located in the territorial jurisdiction of the United States (referred to below as “foreign bank, branch or office”). Specifically, a foreign bank, branch or office is considered a part of a payment transaction if any one or more of the following transaction conditions is met: • The foreign bank, branch or office holds an account that is credited or debited as part of a payment transaction; or • The foreign bank, branch or office receives funds directly from a Person or makes payment directly to a Person as part of a payment transaction; or • The foreign bank, branch or office serves as an intermediary in the settlement of any part of a payment transaction. The Office of the State Treasurer does not process IAT transactions. Experts from the State’s ACH origination bank have advised that the settlement risk remains high with these transactions in numerous countries as they have not yet received the international acceptance necessary to reduce the risk to acceptable levels. The Office of the State Treasurer does continue to monitor settlement risk and may implement IAT processing as volumes and acceptability by country warrants. The Office of the State Treasurer does process U.S. dollar denominated international wire transfers through the State’s operating bank with a high degree of success but also with significantly higher per transaction cost. |
| Date created | 2013-08-29 |
| Date modified | 2013-08-29 |
