
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 31USC3332]

 
                       TITLE 31--MONEY AND FINANCE
 
                   SUBTITLE III--FINANCIAL MANAGEMENT
 
            CHAPTER 33--DEPOSITING, KEEPING, AND PAYING MONEY
 
                         SUBCHAPTER II--PAYMENTS
 
Sec. 3332. Required direct deposit

    (a)(1) Notwithstanding any other provision of law, all Federal wage, 
salary, and retirement payments shall be paid to recipients of such 
payments by electronic funds transfer, unless another method has been 
determined by the Secretary of the Treasury to be appropriate.
    (2) Each recipient of Federal wage, salary, or retirement payments 
shall designate one or more financial institutions or other authorized 
payment agents and provide the payment certifying or authorizing agency 
information necessary for the recipient to receive electronic funds 
transfer payments through each institution so designated.
    (b)(1) The head of each agency shall waive the requirements of 
subsection (a) of this section for a recipient of Federal wage, salary, 
or retirement payments authorized or certified by the agency upon 
written request by such recipient.
    (2) Federal wage, salary, or retirement payments shall be paid to 
any recipient granted a waiver under paragraph (1) of this subsection by 
any method determined appropriate by the Secretary of the Treasury.
    (c)(1) The Secretary of the Treasury may waive the requirements of 
subsection (a) of this section for any group of recipients upon request 
by the head of an agency under standards prescribed by the Secretary of 
the Treasury.
    (2) Federal wage, salary, or retirement payments shall be paid to 
any member of a group granted a waiver under paragraph (1) of this 
subsection by any method determined appropriate by the Secretary of the 
Treasury.
    (d) This section shall apply only to recipients of Federal wage or 
salary payments who begin to receive such payments on or after January 
1, 1995, and recipients of Federal retirement payments who begin to 
receive such payments on or after January 1, 1995.
    (e)(1) Notwithstanding subsections (a) through (d) of this section, 
sections 5120(a) and (d) of title 38, and any other provision of law, 
all Federal payments to a recipient who becomes eligible for that type 
of payment after 90 days after the date of the enactment of the Debt 
Collection Improvement Act of 1996 shall be made by electronic funds 
transfer.
    (2) The head of a Federal agency shall, with respect to Federal 
payments made or authorized by the agency, waive the application of 
paragraph (1) to a recipient of those payments upon receipt of written 
certification from the recipient that the recipient does not have an 
account with a financial institution or an authorized payment agent.
    (f)(1) Notwithstanding any other provision of law (including 
subsections (a) through (e) of this section and sections 5120(a) and (d) 
of title 38), except as provided in paragraph (2) all Federal payments 
made after January 1, 1999, shall be made by electronic funds transfer.
    (2)(A) The Secretary of the Treasury may waive application of this 
subsection to payments--
        (i) for individuals or classes of individuals for whom 
    compliance imposes a hardship;
        (ii) for classifications or types of checks; or
        (iii) in other circumstances as may be necessary.

    (B) The Secretary of the Treasury shall make determinations under 
subparagraph (A) based on standards developed by the Secretary.
    (g) Each recipient of Federal payments required to be made by 
electronic funds transfer shall--
        (1) designate 1 or more financial institutions or other 
    authorized agents to which such payments shall be made; and
        (2) provide to the Federal agency that makes or authorizes the 
    payments information necessary for the recipient to receive 
    electronic funds transfer payments through each institution or agent 
    designated under paragraph (1).

    (h) The crediting of the amount of a payment to the appropriate 
account on the books of a financial institution or other authorized 
payment agent designated by a payment recipient under this section shall 
constitute a full acquittance to the United States for the amount of the 
payment.
    (i)(1) The Secretary of the Treasury may prescribe regulations that 
the Secretary considers necessary to carry out this section.
    (2) Regulations under this subsection shall ensure that individuals 
required under subsection (g) to have an account at a financial 
institution because of the application of subsection (f)(1)--
        (A) will have access to such an account at a reasonable cost; 
    and
        (B) are given the same consumer protections with respect to the 
    account as other account holders at the same financial institution.

    (j) For purposes of this section--
        (1) The term ``electronic funds transfer'' means any transfer of 
    funds, other than a transaction originated by cash, check, or 
    similar paper instrument, that is initiated through an electronic 
    terminal, telephone, computer, or magnetic tape, for the purpose of 
    ordering, instructing, or authorizing a financial institution to 
    debit or credit an account. The term includes Automated Clearing 
    House transfers, Fed Wire transfers, transfers made at automatic 
    teller machines, and point-of-sale terminals.
        (2) The term ``Federal agency'' means--
            (A) an agency (as defined in section 101 of this title); and
            (B) a Government corporation (as defined in section 103 of 
        title 5).

        (3) The term ``Federal payments'' includes--
            (A) Federal wage, salary, and retirement payments;
            (B) vendor and expense reimbursement payments; and
            (C) benefit payments.

    Such term shall not include any payment under the Internal Revenue 
    Code of 1986.

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 955; Pub. L. 98-369, div. B, 
title VIII, Sec. 2814, July 18, 1984, 98 Stat. 1207; Pub. L. 103-356, 
title IV, Sec. 402(a), Oct. 13, 1994, 108 Stat. 3412; Pub. L. 104-134, 
title III, Sec. 31001(x)(1), Apr. 26, 1996, 110 Stat. 1321-376.)

                                          Historical and Revision Notes
-------------------------------------------------------------------------------
---------------------------------
           Revised Section                   Source (U.S. Code)                
Source (Statutes at Large)
-------------------------------------------------------------------------------
---------------------------------
3332(a)..............................  31:492(b)(3).                   R.S. Sec
.  3620(b), (c); added Aug. 28,
                                                                        1965, P
ub. L. 89-145, Sec.  1(2), 79
                                                                        Stat. 5
82; restated June 29, 1968, Pub.
                                                                        L. 90-3
65, 82 Stat. 274; July 19, 1975,
                                                                        Pub. L.
 94-57, Sec.  1(a), 89 Stat. 265.
                                       31:492(note).                   July 19,
 1975, Pub. L. 94-57, Sec.
                                                                        1(b)(1s
t sentence), (c)(1st sentence),
                                                                        89 Stat
. 265.
3332(b)..............................  31:492(b)(1)(1st sentence
                                        words before 1st comma, words
                                        between 2d comma and
                                        proviso).
3332(c)..............................  31:492(b)(1)(proviso, last
                                        sentence).
                                       31:492(note).                   July 19,
 1975, Pub. L. 94-57, 89 Stat.
                                                                        265, Se
c.  1(b)(2d, last sentences),
                                                                        (c)(2d,
 last sentences); added Dec. 18,
                                                                        1975, P
ub. L. 94-157, Sec.  109, 89
                                                                        Stat. 8
31.
3332(d)..............................  31:492(b)(2)(less 32d-43d
                                        words).
3332(e)..............................  31:492(c).
3332(f)..............................  31:492(d)(1st-50th words).      R.S. Sec
.  3620(d); added Aug. 7, 1972,
                                                                        Pub. L.
 92-366, 86 Stat. 506.
3332(g)..............................  31:492(b)(1)(1st sentence
                                        words between 1st and 2d
                                        commas), (2)(32d-43d words),
                                        (d)(51st-last words).
                                       31:492(note).
-------------------------------------------------------------------------------
---------------------------------

    In subsection (a), the definition of ``agency'' is omitted because 
of section 101 of the revised title. The words ``and the municipal 
government of the District of Columbia'' are omitted because of section 
448 of the Act of December 24, 1973 (Pub. L. 93-198, 87 Stat. 801). The 
text of section 1(b)(1st sentence) and (c)(1st sentence) of the Act of 
July 19, 1975, is omitted as executed. In clause (2), the words 
``savings bank'' are omitted as surplus.
    In subsections (b)-(f), the words ``officer or employee'' are 
substituted for ``employee'' for consistency in the revised title and 
with other titles of the United States Code.
    In subsections (b) and (d), the word ``official'' is substituted for 
``officer'' for consistency in the revised title and with other titles 
of the Code. The words ``issue a check payable to'' are substituted for 
``make the payment . . . by sending to . . . a check that is drawn in 
favor of the organization'' for clarity and consistency and to eliminate 
unnecessary words.
    In subsection (b), before clause (1), the words ``Notwithstanding 
subsection (a) of this section or any other provision of law'' are 
omitted as unnecessary. The words ``may designate in writing not more 
than 3 financial organizations to which a payment of pay of the officer 
or employee shall be sent and the amount to be sent to each 
organization'' are substituted for ``upon the written request of an 
employee of the agency to whom a payment for wages or salary is to be 
made . . . in the form of one, two, or three checks (the number of 
checks . . . if more than one . . . designated by such employee'' for 
clarity, consistency in the revised title and with other titles of the 
Code, and to eliminate unnecessary words.
    In subsection (c), the words ``(except for a financial organization 
designated by an officer or employee of either House of Congress)'' are 
substituted for section 1(b)(last sentence) and (c)(last sentence) of 
the Act of July 19, 1975 (Pub. L. 94-57, 89 Stat. 265), because of the 
restatement. The words ``to which such check is sent'' are omitted 
because of the restatement.
    In subsection (d), the words ``to whom a payment is to be made'' are 
omitted as surplus. The words ``upon the written request of such 
employee'' are omitted as unnecessary. The words ``accompanied by a 
schedule'' are added for clarity.
    In subsection (e), the word ``payment'' is substituted for 
``acquittance'' for clarity and consistency.
    Subsection (f) is substituted for 31:492(d)(1st-50th words) to 
eliminate unnecessary words.
    In subsection (g), the words ``rules and'' in section 1(b) and (c) 
of the Act of July 19, 1975 (Pub. L. 94-57, 89 Stat. 265), are omitted 
as surplus.

                       References in Text

    The date of the enactment of the Debt Collection Improvement Act of 
1996, referred to in subsec. (e)(1), is the date of enactment of section 
31001 of Pub. L. 104-134, which was approved Apr. 26, 1996.
    The Internal Revenue Code of 1986, referred to in subsec. (j)(3), is 
classified generally to Title 26, Internal Revenue Code.


                               Amendments

    1996--Subsecs. (e) to (j). Pub. L. 104-134 added subsecs. (e) to 
(g), redesignated former subsec. (e) as (h), and added subsecs. (i) and 
(j).
    1994--Pub. L. 103-356 substituted ``Required direct deposit'' for 
``Checks payable to financial organizations designated by Government 
officers and employees'' as section catchline and amended text 
generally. Prior to amendment, section authorized agency officers and 
employees to designate not more than 3 financial organizations to which 
a payment of pay or other recurring payments was to be sent without 
charge and required the agency head to authorize issuance of checks 
payable to those financial organizations in the designated amounts.
    1984--Subsec. (b). Pub. L. 98-369, Sec. 2814(a), inserted ``without 
charge'' after ``shall be sent''.
    Subsecs. (c) to (g). Pub. L. 98-369, Sec. 2814(b), struck out 
subsec. (c) which related to reimbursement of an agency for issuing 
additional checks, and redesignated subsecs. (d) to (g) as (c) to (f), 
respectively.


                            Savings Provision

    Any waiver in effect on Oct. 5, 1999, under subsec. (f)(2)(A)(i) of 
this section to remain in effect until otherwise provided by the 
Secretary of Defense under section 2786 of Title 10, Armed Forces, see 
section 1008(a)(3) of Pub. L. 106-65, set out as a note under section 
2786 of Title 10.

                  Section Referred to in Other Sections

    This section is referred to in title 10 sections 1594, 2786.
