1.1                          A bill for an act 
  1.2             relating to local government; authorizing mandatory 
  1.3             direct deposit of payroll; amending Minnesota Statutes 
  1.4             2003 Supplement, section 16A.17, subdivision 10; 
  1.5             proposing coding for new law in Minnesota Statutes, 
  1.6             chapter 471. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2003 Supplement, section 
  1.9   16A.17, subdivision 10, is amended to read: 
  1.10     Subd. 10.  [DIRECT DEPOSIT.] Notwithstanding section 
  1.11  177.23, the commissioner may require direct deposit for all 
  1.12  state employees who are being paid by the state payroll system.  
  1.13  If a state employee who is paid through the state payroll system 
  1.14  requests the commissioner to provide payment by payroll check, 
  1.15  the commissioner must process the pay of the employee by payroll 
  1.16  check within 30 days after receipt of the request.  
  1.17     Sec. 2.  [471.426] [DIRECT DEPOSIT.] 
  1.18     Notwithstanding sections 177.23, subdivision 4, and 181.02, 
  1.19  the governing body of a municipality as defined in section 
  1.20  471.425, may require direct deposit for all its employees who 
  1.21  are being paid by its payroll system.  If the employee of a 
  1.22  municipality who is paid by direct deposit under this section 
  1.23  requests the municipality to provide payment by payroll check, 
  1.24  the municipality must process the pay of the employee by payroll 
  1.25  check within 30 days after receipt of the request.  This section 
  1.26  does not apply to employees covered by a collective bargaining 
  2.1   agreement, unless the collective bargaining agreement 
  2.2   specifically provides for mandatory direct deposit.